# EDGAR Filing Document

**Accession Number:** 0000810332
**File Stem:** 0001193125-25-180875
**Filing Date:** 2025-8
**Character Count:** 6654411
**Document Hash:** f58a00f22da1d362a89af74ef1cee4b4
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-25-180875.hdr.sgml**: 20250814

**ACCESSION NUMBER**: 0001193125-25-180875

**CONFORMED SUBMISSION TYPE**: S-4/A

**PUBLIC DOCUMENT COUNT**: 221

**FILED AS OF DATE**: 20250814

**DATE AS OF CHANGE**: 20250814

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** MESA AIR GROUP INC
- **CENTRAL INDEX KEY:** 0000810332
- **STANDARD INDUSTRIAL CLASSIFICATION:** AIR TRANSPORTATION, SCHEDULED [4512]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 850302351
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 0930

**FILING VALUES:**
- **FORM TYPE:** S-4/A
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-288622
- **FILM NUMBER:** 251220446

**BUSINESS ADDRESS:**
- **STREET 1:** 410 NORTH 44TH STREET
- **STREET 2:** SUITE 700
- **CITY:** PHOENIX
- **STATE:** AZ
- **ZIP:** 85008
- **BUSINESS PHONE:** 602.685.4000

**MAIL ADDRESS:**
- **STREET 1:** 410 NORTH 44TH STREET
- **STREET 2:** SUITE 700
- **CITY:** PHOENIX
- **STATE:** AZ
- **ZIP:** 85008

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** MESA AIRLINES INC
- **DATE OF NAME CHANGE:** 19950426

?xml version='1.0' encoding='ASCII'? S-4/A

##### [**Table of Contents**](#toc)

#### As filed wit h t he Securities and Exchange Commission on August 1 4 , 2025

#### Registration No. 333-288622
UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

### Amendment No. 1 to
FORM S-4

REGISTRATION STATEMENT

Under

The Securities Act of 1933

FORM S-1

REGISTRATION STATEMENT

Under

The Securities Act of 1933

MESA AIR GROUP, INC.

(Exact name of registrant as specified in its charter)

Nevada 4512 85-0302351 <br> (State or Other Jurisdiction ofIncorporation or Organization) (Primary Standard IndustrialClassification Code Number) (I.R.S. EmployerIdentification Number)

410 North 44th Street, Suite 700

Phoenix, AZ 85008

(602) 685-4000

(Address, Including Zip Code, and Telephone Number, Including Area Code, of Registrant's Principal Executive Offices)

Michael J. Lotz

Chief Financial Officer

Mesa Air Group, Inc.

410 North 44th Street, Suite 700

Phoenix, AZ 85008

(602) 685-4000

(Name, Address, Including Zip Code, and Telephone Number, Including Area Code, of Agent For Service)

Copies to:

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| | | | |
|:---|:---|:---|:---|
| Gregory R. Hall, Esq.<br> Kevin E. Criddle, Esq.<br>DLA Piper LLP (US) <br>2525 East Camelback Road, Suite 1000<br> Phoenix, AZ 85016<br>(480) 606-5100 | Brian S. Gillman<br> Executive Vice President, General Counsel<br> and Secretary<br> Mesa Air Group, Inc.<br> 410 North 44th Street, Suite 700<br> Phoenix, Arizona 85008<br> (602) 685-4000 | Chad Pulley<br> Senior Vice President, General Counsel and Secretary<br> Republic Airways Holdings Inc.<br> 8909 Purdue Road, Suite 300<br> Indianapolis, IN 46268<br> (317) 471-2335 | Joshua Bonnie, Esq.<br> Jonathan L. Corsico, Esq.<br> Jonathan Ozner, Esq.<br> Benjamin A. Bodurian, Esq.<br>Simpson Thacher & Bartlett LLP<br> 900 G Street, N.W.<br> Washington, D.C. 20001<br>(202) 636-5575 |

---

Approximate date of commencement of proposed sale of the securities to the public: As soon as practicable after the effective date of this registration statement and the satisfaction or waiver of all other conditions under the Merger Agreement described herein.

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, as amended (the "Securities Act") check the following box: ☐

If the securities being registered on this Form are being offered in connection with the formation of a holding company and there is compliance with General Instruction G, check the following box ☐

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

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| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| Non-accelerated filer | ☒ | Smaller reporting company | ☐ |
|  |  | Emerging growth company | ☐ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. ☐

If applicable, place an X in the box to designate the appropriate rule provision relied upon in conducting this transaction:

Exchange Act Rule 13e-4(i) (Cross-Border Issuer Tender Offer) ☐

Exchange Act Rule 14d-1(d) (Cross-Border Third-Party Tender Offer) ☐

The Registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933, as amended, or until the registration statement shall become effective on such date as the Securities and Exchange Commission, acting pursuant to said Section 8(a), may determine.

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##### [**Table of Contents**](#toc)

#### EXPLANATORY NOTE
Mesa Air Group, Inc., a Nevada corporation ("Mesa") is filing this registration statement on Form S-4 and S-1 (Reg. No. 333-288622) to register the shares of its common stock, par value 0.001 per share, after giving effect to the conversion described immediately below, to be issued in connection with the merger of Mesa and Republic Airways Holdings Inc., a Delaware corporation ("Republic"), pursuant to which, among other matters, (i) Republic will merge with and into Mesa, with Mesa as the surviving corporation in the merger (the "Merger"), and (ii) prior to the effective time of the Merger (the "Effective Time"), Mesa will convert from a Nevada corporation to a Delaware corporation. Following the Merger, Mesa is referred to herein as the "Surviving Corporation." At the Effective Time, Mesa will be renamed "Republic Airways Holdings Inc." and it is expected that the common stock of the Surviving Corporation will trade on the Nasdaq Capital Market ("Nasdaq") under the symbol "RJET." This document also constitutes a notice of meeting and a proxy statement under Section 14(a) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), with respect to the Mesa Special Meeting (described herein) at which Mesa stockholders will be asked to consider and vote upon the Mesa Proposals (described herein) and certain other related matters.

The accompanying proxy statement/prospectus also constitutes the prospectus of the Surviving Corporation with respect to the potential distribution of its shares of common stock to the Pre-Merger Mesa Shareholders pursuant to the Escrow Issuance (described herein). Promptly following the closing of the Merger (the "Closing") (and in all events immediately following the Effective Time), Mesa will issue to the escrow agent a number of shares of its common stock equal to six percent (6%) of the total shares issued and outstanding after the completion of the Merger and such issuance (the "Escrow Shares" and together with any applicable dividends, the "Escrow Asset", as further defined in the Escrow Agreement). The Escrow Asset will be distributed to the Pre-Merger Mesa Shareholders (as described herein) on a pro rata basis to the extent remaining after potential distributions, if any, are made to United Airlines, Inc. ("United Airlines") and the Surviving Corporation based on the determination of the Net Debt Amount (described herein) as of the Closing. Mesa is filing this registration statement on Form S-1 to register the issuance of its shares of common stock pursuant to the Escrow Issuance to the extent that any such Escrow Shares are distributed to the Pre-Merger Mesa Shareholders.

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##### [**Table of Contents**](#toc)
The information in this proxy statement/prospectus is not complete and may be changed. These securities may not be sold until the registration statement filed with the Securities and Exchange Commission is effective. This proxy statement/prospectus is not an offer to sell and it is not soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.

SUBJECT TO COMPLETION, DATED AUGUST 14, 2025

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| | |
|:---|:---|
| ![LOGO](g944307g04g01.jpg) | ![LOGO](g944307g04g02.jpg) |

---

#### PRELIMINARY PROSPECTUS

### Up to 121,000,000 Shares of Common Stock of the Surviving Corporation

#### PROPOSED MERGER

#### YOUR VOTE IS VERY IMPORTANT
To the Stockholders of Mesa Air Group, Inc. and Republic Airways Holdings Inc.:

Mesa Air Group, Inc., a Nevada corporation ("Mesa"), and Republic Airways Holdings Inc., a Delaware corporation ("Republic"), entered into an Agreement, Plan of Conversion and Plan of Merger (as may be amended, modified, or supplemented from time to time, the "Merger Agreement") on April 4, 2025, pursuant to which, among other matters, (i) Republic will merge with and into Mesa, with Mesa as the surviving corporation in the merger (the "Merger"), and (ii) prior to the effective time of the Merger (the "Effective Time"), Mesa will convert from a Nevada corporation to a Delaware corporation. Following the Merger, Mesa is referred to herein as the "Surviving Corporation." At the Effective Time, Mesa will be renamed "Republic Airways Holdings Inc.," and it is expected that the common stock of the Surviving Corporation will trade on the Nasdaq Capital Market ("Nasdaq") under the symbol "RJET."

Subject to the terms and conditions of the Merger Agreement, at the Effective Time, each share of Republic common stock, par value $0.001 ("Republic common stock"), issued and outstanding immediately prior to the Effective Time (other than cancelled shares and dissenting shares held by stockholders who have not voted in favor of, or consented to, the Merger and who have properly demanded appraisal of such shares in accordance with, and have complied in all respects with, Section 262 of the General Corporation Law of the State of Delaware (the "DGCL")), will be automatically converted into the right to receive 584.90 validly issued, fully paid, and nonassessable shares of Mesa common stock, with cash (without interest, rounded down to the nearest cent) paid in lieu of any fractional shares (collectively, the "Merger Consideration") as described in more detail in the section titled "*The Merger Agreement – Merger Consideration*" beginning on page 138 of the accompanying proxy statement/prospectus, referred to herein as the "Exchange Ratio."

Each share of Mesa common stock that is issued and outstanding immediately prior to the Effective Time, will remain issued and outstanding, and such shares will be unaffected by the Merger and will entitle the holder thereof to the non-transferable contingent right to receive a pro rata share of the Escrow Asset (as defined in the Escrow Agreement) distributed pursuant to and in accordance with the Merger Agreement, the Three Party Agreement, and the Escrow Agreement, as described in more detail in the sections titled "*The Merger Agreement – The Escrow Issuance*" and "*Agreements Related to the Merger – The Three Party Agreement*" beginning on page 140 and 165 of the accompanying proxy statement/prospectus, respectively. Each unvested Mesa restricted stock unit ("Mesa RSU") and Mesa restricted stock award ("Mesa Restricted Stock Award") will be accelerated in full prior to the Effective Time. Further, immediately prior to the Effective Time, each outstanding Republic restricted stock unit ("Republic RSU") that has vested (including each outstanding Republic RSU that will become vested upon the Closing of the Merger) will be cancelled and converted into the right to receive shares of Republic common stock, which will be converted into Mesa common stock, and each then outstanding Republic RSU that is unvested will be assumed by Mesa and converted into the right to receive an award of restricted shares of Mesa common stock in an amount equal to the number of whole shares of Mesa common stock (rounded up to the next whole share) equal to the product obtained by multiplying (x) the Exchange Ratio by (y) the total number of shares of Republic common stock subject to such unvested Republic RSU immediately prior to the Effective Time.

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The Exchange Ratio does not give effect to any potential reverse stock split of Mesa common stock. Pursuant to the Merger Agreement, the Exchange Ratio will be adjusted, as applicable and appropriate, to reflect fully the effect of any stock split, reverse split, combination, subdivision, reclassification, stock dividend (including any dividend or distribution of securities convertible into Mesa common stock), reorganization, recapitalization, or other like change with respect to Mesa common stock occurring after the date of the Merger Agreement and prior to the Effective Time. The Exchange Ratio will not be adjusted for changes in the market price of Mesa common stock between the date of the signing of the Merger Agreement and the consummation of the Merger. Because the share price of Mesa common stock will fluctuate between the date of the signing and completion of the Merger, and because the Exchange Ratio is fixed and will not be adjusted to reflect changes in the share price of Mesa common stock, the value of the shares of Mesa common stock received by Republic shareholders in the Merger may differ from the implied value based on the share price on the date of the signing of the Merger Agreement or the date of this proxy statement / prospectus - for example, if the value of Mesa shares increases as compared to the value at signing, then Republic stockholders will receive merger consideration with a value greater than the implied value at signing and if the value of Mesa shares decreases as compared to the value at signing, then Republic stockholders will receive merger consideration with a value lower than the implied value at signing.

The accompanying proxy statement/prospectus also constitutes the prospectus of the Surviving Corporation with respect to the potential distribution of its shares of common stock to the Pre-Merger Mesa Shareholders pursuant to the Escrow Issuance. Promptly following the Closing (and in all events immediately following the Effective Time), Mesa will issue to the Escrow Agent a number of shares of its common stock equal to six percent (6%) of the total shares issued and outstanding after the completion of the Merger and such issuance (the "Escrow Shares," and together with any applicable dividends (if any), the "Escrow Asset," as further defined in the Escrow Agreement). The Escrow Asset will be distributed to the Pre-Merger Mesa Shareholders on a pro rata basis to the extent remaining after potential distributions, if any, are made to United Airlines and the Surviving Corporation based on the determination of the Net Debt Amount (described herein) as of the Closing. See the section titled "*Agreements Related to the Merger – The Three Party Agreement*" beginning on page 154 of the accompanying proxy statement/prospectus.

Immediately after the Merger, the Pre-Merger Mesa Shareholders are expected to own approximately six percent (6%) of the outstanding shares of the Surviving Corporation on a fully-diluted basis, and former Republic securityholders are expected to own approximately eighty-eight percent (88%) of the outstanding shares of the Surviving Corporation on a fully-diluted basis, subject to certain assumptions. The other six percent (6%) of the outstanding shares of the Surviving Corporation (referred to herein, together with any applicable dividends, as the Escrow Asset) will be held in the Escrow Account for delivery to the Pre-Merger Mesa Shareholders after any potential deduction for United Airlines and the Surviving Corporation as described above. Whether any of the Escrow Asset will ultimately be distributed to the Pre-Merger Mesa Shareholders cannot be estimated at this point in time as it is dependent on both (i) the finally determined Net Debt Amount and (ii) the finally determined Surviving Corporation Stock Value, neither of which will be finally determined until after the Closing, as described in detail in the section titled "*Agreements Related to the Merger – the Three Party Agreement – Mesa's Delivery of Proposed Final Closing Statement and United Airlines' and the Surviving Corporation's Responses*"

Shares of Mesa common stock are currently listed on Nasdaq under the symbol "MESA." Mesa and Republic intend to prepare and submit to Nasdaq an initial listing application for the Surviving Corporation and will use their reasonable best efforts to cause shares of Mesa common stock issued in the Merger to be authorized for listing on Nasdaq, at or prior to the Closing. It is a condition to Mesa's and Republic's obligations to complete the Merger that the Mesa common stock issuable in the Merger have been approved for listing on the Nasdaq. On , 2025, the last trading day before the date of the accompanying proxy statement/prospectus, the closing sale price of Mesa common stock was $ per share.

Mesa stockholders are cordially invited to attend the special meeting of stockholders (the "Mesa Special Meeting") on , 2025, at Mountain Standard Time, unless postponed or adjourned to a later date, in order to obtain the stockholder approvals necessary to complete the Merger and related matters. The

Mesa Special Meeting will be held at 2525 E. Camelback Road, Suite 1000, Phoenix, Arizona 85016. Mesa

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stockholders will be able to attend and participate in the Mesa Special Meeting in person where they will be able to ask questions and vote. At the Mesa Special Meeting, Mesa will ask its stockholders to:

1. Approve the Merger and all transactions contemplated by the Merger Agreement, including the Merger and the conversion of Mesa from a Nevada corporation to a Delaware corporation by means of a conversion, pursuant to the Plan of Conversion (the "Merger Proposal" or "Proposal No. 1");

2. Approve (i) the issuance of shares of common stock of Mesa, which will represent more than 20% of the shares of Mesa common stock outstanding immediately prior to the Merger, (a) to stockholders of Republic pursuant to the terms of the Merger Agreement, dated as of April 4, 2025, a copy of which is attached as *Annex A* to this proxy statement/prospectus, and (b) in respect of the Escrow Shares, which shall ultimately be distributed to one or more of United Airlines, the Surviving Corporation, or the Pre-Merger Mesa Shareholders, pursuant to the terms of the Merger Agreement and the Three Party Agreement, and (ii) the change of control arising from the issuance of shares in connection with the Merger and the Escrow Issuance, pursuant to Nasdaq Listing Rules 5635(a) and 5635(b), respectively (the "Nasdaq Stock Issuance Proposal" or "Proposal No. 2");

3. Approve on an advisory (non-binding) basis, certain compensation payments that will or may be made by Mesa to its named executive officers in connection with the Merger (the "Advisory Compensation Proposal" or "Proposal No. 3");

4. Approve the Republic 2025 Equity Incentive Plan (the "Equity Plan Proposal" or "Proposal No. 4");

5. Approve an adjournment of the Mesa Special Meeting, if necessary, to solicit additional proxies if there are not sufficient votes in favor of Proposal Nos. 1 through 4 (the "Adjournment Proposal" or "Proposal No. 5"); and

After careful consideration, each of the Mesa and Republic boards of directors have approved and declared advisable the Merger Agreement, the Merger and the other transactions contemplated thereby and have determined that the Merger Agreement, the Merger, and the other transactions contemplated by the Merger Agreement are advisable, fair to, and in the best interests of Mesa and its stockholders and Republic and its stockholders, respectively. Mesa's board of directors has approved the proposals described in the accompanying proxy statement/prospectus and recommends that its stockholders vote "**FOR**" the proposals described in the accompanying proxy statement/prospectus. As of the date of this proxy statement/prospectus, Republic has obtained sufficient consents from its stockholders to approve the adoption of the Merger Agreement and approve the transactions contemplated thereby.

**More information about Mesa, Republic, the Merger Agreement and transactions contemplated thereby, and the foregoing proposals is contained in the accompanying proxy statement/prospectus. Mesa urges you to read the accompanying proxy statement/prospectus carefully and in its entirety. IN PARTICULAR, YOU SHOULD CAREFULLY CONSIDER THE MATTERS DISCUSSED UNDER "[RISK FACTORS](#rom944307_7)" BEGINNING ON PAGE 47 OF THE ACCOMPANYING PROXY STATEMENT/PROSPECTUS.** 

Mesa and Republic are excited about the opportunities the Merger brings to Mesa's and Republic's stockholders and thank you for your consideration and continued support. Sincerely,

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| | |
|:---|:---|
| Jonathan G. Ornstein | David Grizzle |
| *Chairman, Chief Executive Officer* | *Chairman, Chief Executive Officer* |
| Mesa Air Group, Inc. | Republic Airways Holdings Inc. |

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**Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or passed upon the adequacy or accuracy of the accompanying proxy statement/prospectus. Any representation to the contrary is a criminal offense.** 

#### The accompanying proxy statement/prospectus is dated , 2025 and is first being mailed to Mesa's stockholders on or about , 2025.

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#### MESA AIR GROUP, INC.

#### 410 North 44<sup>th</sup> Street, Suite 700

#### Phoenix, AZ 85008
(602) 685-4000

#### NOTICE OF SPECIAL MEETING OF STOCKHOLDERS
To the stockholders of Mesa Air Group, Inc.:

**NOTICE IS HEREBY GIVEN** that a special meeting of stockholders of Mesa Air Group, Inc. (the "Mesa Special Meeting"), will be held on , 2025, at Mountain Standard Time, unless postponed or adjourned to a later date. The Mesa Special Meeting will be held at 2525 E. Camelback Road, Suite 1000, Phoenix, Arizona 85016. You will be able to attend and participate in the Mesa Special Meeting in person where you will be able to ask questions and vote.

#### The Mesa Special Meeting will be held for the following purposes:
1. Approve the Merger and all transactions contemplated by the Merger Agreement, including the Merger and the conversion of Mesa from a Nevada corporation to a Delaware corporation by means of a conversion, pursuant to the Plan of Conversion (the "Merger Proposal" or "Proposal No. 1");

2. Approve (i) the issuance of shares of common stock of Mesa, which will represent more than 20% of the shares of Mesa common stock outstanding immediately prior to the Merger, (a) to stockholders of Republic pursuant to the terms of the Merger Agreement, dated as of April 4, 2025, a copy of which is attached as *Annex A* to this proxy statement/prospectus, and (b) in respect of the Escrow Shares, which shall ultimately be distributed to one or more of United Airlines, the Surviving Corporation, or the Pre-Merger Mesa Shareholders, pursuant to the terms of the Merger Agreement and the Three Party Agreement, and (ii) the change of control arising from the issuance of shares in connection with the Merger and the Escrow Issuance, pursuant to Nasdaq Listing Rules 5635(a) and 5635(b), respectively (the "Nasdaq Stock Issuance Proposal" or "Proposal No. 2");

3. Approve on an advisory (non-binding) basis, certain compensation payments that will or may be made by Mesa to its named executive officers in connection with the Merger (the "Advisory Compensation Proposal" or "Proposal No. 3");

4. Approve the Republic 2025 Equity Incentive Plan (the "Equity Plan Proposal" or "Proposal No. 4");

5. Approve an adjournment of the Mesa Special Meeting, if necessary, to solicit additional proxies if there are not sufficient votes in favor of Proposal Nos. 1 through 4 (the "Adjournment Proposal" or "Proposal No. 5"); and

**Record Date:** Mesa's board of directors has fixed , 2025 as the record date for the determination of stockholders entitled to notice of, and to vote at, the Mesa Special Meeting and any adjournment or postponement thereof. Only holders of record of shares of Mesa common stock at the close of business on the record date are entitled to notice of, and to vote at, the Mesa Special Meeting. At the close of business on the record date, Mesa had shares of common stock outstanding and entitled to vote.

**Your vote is important. The affirmative vote of a majority of the votes cast at the Mesa Special Meeting, assuming a quorum is present, is required for approval of Proposal Nos. 2, 3, and 4. The affirmative vote of a majority of the outstanding shares of Mesa common stock entitled to vote thereon at the Mesa Special Meeting is required for approval of Proposal No. 1. The affirmative vote of a majority of the shares of Mesa common stock entitled to vote at the Mesa Special Meeting, present in person or represented by proxy, is required for approval of Proposal No. 5. Approval of each of Proposal Nos. 1 and 2 is a condition to the completion of the Merger and the Delaware Conversion. Therefore, neither the Merger nor the Delaware Conversion can be consummated without the approval of Proposal Nos. 1 and 2.** 

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**Even if you plan to attend the Mesa Special Meeting, Mesa requests that you sign and return the enclosed proxy or vote by mail or online to ensure that your shares will be represented at the Mesa Special Meeting if you are unable to attend. You may change or revoke your proxy at any time before it is voted at the Mesa Special Meeting.** 

**MESA'S BOARD OF DIRECTORS HAS DETERMINED AND BELIEVES THAT EACH OF THE PROPOSALS OUTLINED ABOVE IS FAIR TO, IN THE BEST INTERESTS OF, AND ADVISABLE TO MESA AND ITS STOCKHOLDERS, AND HAS APPROVED EACH SUCH PROPOSAL. MESA'S BOARD OF DIRECTORS RECOMMENDS THAT MESA STOCKHOLDERS VOTE "FOR" EACH SUCH PROPOSAL.** 

#### Important Notice Regarding the Availability of Proxy Materials for the Stockholders' Meeting

#### to Be Held on , 2025 at Mountain Standard Time at 2525 E. Camelback Road,

#### Suite 1000, Phoenix, Arizona 85016.
The proxy statement/prospectus and annual report to stockholders are available at www.investor.mesa-air.com/financial-information/sec-filings.

By Order of Mesa's Board of Directors,

Jonathan G. Ornstein

*Chief Executive Officer* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2025

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#### REFERENCES TO ADDITIONAL INFORMATION
This proxy statement/prospectus incorporates important business and financial information about Mesa Air Group, Inc. that is not included in or delivered with this document. You may obtain this information without charge through the Securities and Exchange Commission website (*www.sec.gov*) or upon your written or oral request by contacting the Corporate Secretary of Mesa Air Group, Inc. by calling (602) 685-4000 or via email to Legal@mesa-air.com.

**To ensure timely delivery of these documents, any request should be made no later than , 2025 to receive them before the Mesa Special Meeting**.

For additional details about where you can find information about Mesa, please see the section titled "*Where You Can Find More Information*" beginning on page 383 of this proxy statement/prospectus.

i

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#### ABOUT THIS PROXY STATEMENT/PROSPECTUS
This document, which forms part of a registration statement on Form S-4/S-1 filed with the SEC, by Mesa (the "Registration Statement"), constitutes a prospectus of Mesa under Section 5 of the Securities Act of 1933, as amended, with respect to the shares of Mesa common stock to be issued if the Merger described below is consummated. This document also constitutes a notice of meeting and a proxy statement under Section 14(a) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), with respect to the Mesa Special Meeting at which Mesa stockholders will be asked to consider and vote upon the proposals described in the accompanying proxy statement/prospectus and certain other related matters.

This document also constitutes a prospectus of the Surviving Corporation with respect to the distribution of the Escrow Shares to the Pre-Merger Mesa Shareholders to the extent that any such Escrow Shares are distributed to the Pre-Merger Mesa Shareholders.

A prospectus supplement may also add, update, or change information included in this proxy statement/prospectus. Any statement contained herein will be deemed to be modified or superseded for purposes of this proxy statement/prospectus to the extent that a statement contained in such prospectus supplement modifies or supersedes such statement. Any statement so modified will be deemed to constitute a part of this proxy statement/prospectus only as so modified, and any statement so superseded will be deemed not to constitute a part of this document.

You should rely only on the information contained in this proxy statement/prospectus. Mesa has not authorized anyone to provide you with information that is different from that contained in this proxy statement/prospectus. This proxy statement/prospectus is dated as of the date set forth above on the cover page of this proxy statement/prospectus, and you should not assume that the information contained in this proxy statement/prospectus is accurate as of any date other than such date. Neither the mailing of this proxy statement/prospectus to Mesa stockholders nor the issuance by Mesa of shares of Mesa common stock as consideration pursuant to the Merger Agreement will create any implication to the contrary.

**This proxy statement/prospectus does not constitute an offer to sell, or a solicitation of an offer to buy, any securities, or the solicitation of a proxy, in any jurisdiction in which or from any person to whom it is unlawful to make any such offer or solicitation in such jurisdiction.** 

The information concerning Mesa contained in this proxy statement/prospectus has been provided by Mesa.

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#### **TABLE OF CONTENTS**

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| | |
|:---|:---|
|  | **Page** |
|  [References to Additional Information](#rom944307_1) | i |
|  [About This Proxy Statement/Prospectus](#rom944307_2) | ii |
|  [Glossary of Terms](#rom944307_3) | 1 |
|  [Questions and Answers About the Merger](#rom944307_4) | 16 |
|  [Prospectus Summary](#rom944307_5) | 29 |
|  [Market Price and Dividend Information](#rom944307_6) | 46 |
|  [Risk Factors](#rom944307_7) | 47 |
|  [Cautionary Note Regarding Forward-Looking Statements](#rom944307_8) | 95 |
|  [The Special Meeting of Mesa Stockholders](#rom944307_9) | 97 |
|  [The Merger](#rom944307_10) | 101 |
|  [The Merger Agreement](#rom944307_11) | 138 |
|  [Agreements Related to the Merger](#rom944307_12) | 165 |
|  [Equity Compensation Plan Information](#rom944307_13) | 179 |
|  [Republic Executive Compensation](#rom944307_14) | 180 |
|  [Matters Being Submitted to a Vote of Mesa Stockholders](#rom944307_15) | 203 |
|  [Proposal No. 1 – The Merger Proposal](#rom944307_16) | 203 |
|  [Proposal No. 2 – The Nasdaq Stock Issuance Proposal](#rom944307_17) | 234 |
|  [Proposal No. 3 – The Advisory Compensation Proposal](#rom944307_18) | 236 |
|  [Proposal No. 4 – The Equity Plan Proposal](#rom944307_19) | 237 |
|  [Proposal No. 5 – The Adjournment Proposal](#rom944307_20) | 241 |
|  [Mesa's Business](#rom944307_21) | 242 |
|  [Republic's Business](#rom944307_22) | 253 |
|  [Mesa Management's Discussion and Analysis of Financial Condition and Results of Operations](#rom944307_23) | 271 |
|  [Quantitative and Qualitative Disclosures About the Market Risk of Mesa](#rom944307_24) | 308 |
|  [Republic Management's Discussion and Analysis of Financial Condition and Results of Operations](#rom944307_25) | 309 |
|  [Management Following the Merger](#rom944307_26) | 329 |
|  [Certain Relationships and Related Party Transactions of the Surviving Corporation](#rom944307_27) | 335 |
|  [Unaudited Pro Forma Condensed Combined Financial Information](#rom944307_28) | 339 |
|  [Description of Mesa Capital Stock](#rom944307_30) | 355 |
|  [Comparison of Rights of Holders of Mesa Capital Stock and Republic Capital Stock](#rom944307_31) | 358 |
|  [Principal Stockholders of Mesa](#rom944307_32) | 371 |
|  [Principal Stockholders of Republic](#rom944307_33) | 373 |
|  [Principal Stockholders of the Surviving Corporation](#rom944307_34) | 375 |
|  [Use of Proceeds](#rom944307_35) | 377 |
|  [Determination of Offering Price](#rom944307_36) | 378 |
|  [Plan of Distribution](#rom944307_37) | 379 |
|  [Legal Matters](#rom944307_38) | 380 |
|  [Experts](#rom944307_39) | 380 |
|  [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](#rom944307_40) | 380 |
|  [Where You Can Find More Information](#rom944307_41) | 383 |
|  [Other Matters](#rom944307_42) | 384 |
|  [Index to Financial Statements](#rom944307_43) | F-1 |
|  [Annex A: Agreement, Plan of Conversion and Plan of Merger](#rom944307_44) | A-1 |
|  [Annex B: Opinion of FTI Capital Advisors, LLC](#rom944307_45) | B-1 |
|  Annex C: Form of Mesa Air Group, Inc. Proxy Card\* | C-1 |

---

\* To be filed by amendment.

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#### GLOSSARY OF TERMS
In this document:

"2025 Equity Incentive Plan" means the Republic 2025 Equity Incentive Plan.

"Acceptable Confidentiality Agreement" means an executed customary confidentiality agreement between Mesa or Republic (as applicable) and a third Person that (i) does not include any provision for any exclusive right of such third Person or any of its Affiliates to negotiate with Mesa or any of its Affiliates or Republic of any of its Affiliates (as applicable) or having the effect of restricting Mesa or Republic (as applicable) from fulfilling any of its obligations under the Merger Agreement, including under Section 5.4 or Section 5.6 of the Merger Agreement (as applicable); (ii) contains provisions that are no more favorable in the aggregate to the third Person than those contained in the Confidentiality Agreement; and (iii) does not require Mesa, Republic, or any of their respective subsidiaries (as applicable) to reimburse the costs or expenses of any Person.

"Administrator" means the compensation committee of the Surviving Corporation board of directors, or another committee designated by the Board to administer the 2025 Equity Incentive Plan.

"AFA" means Association of Flight Attendants.

"AFAC" means the Mexican Aviation Agency.

"Affiliate" means, with respect to any Person, any other Person that directly, or indirectly through one or more intermediaries, Controls, is Controlled by or is under common Control with, the first Person specified.

"ALPA" means the Airline Pilots Association, International.

"American Airlines" means American Airlines, Inc.

"American Airlines CPA" means Republic's capacity purchase agreement with American Airlines.

"Archer Agreements" means, the (a) Aircraft Purchase Agreement, dated as of January 29, 2021, between Archer Aviation Inc., as seller, and United Airlines, Inc., as buyer, (b) Collaboration Agreement, dated as of January 29, 2021, between Archer Aviation Inc. and United Airlines, Inc., (c) Assignment and Assumption Agreement, dated as of February 26, 2021, among Mesa Airlines, Inc., United Airlines, Inc., Mesa Air Group, Inc., and Archer Aviation Inc. (the "Archer Assignment and Assumption Agreement"), (d) Aircraft Purchase Agreement, dated as of April 29, 2021, among Archer Aviation Inc., as seller, Mesa Airlines, Inc., as buyer, and Mesa Air Group, Inc., as buyer parent, (e) Warrant to Purchase Shares of Archer Aviation Inc., issued January 29, 2021 by Archer Aviation Inc. and acknowledged and agreed by United Airlines, Inc., as holder, (f) Subscription Agreement, entered into as of February 10, 2021, between Atlas Crest Investment Corp. and United Airlines, Inc., as investor, (g) Transaction Support Agreement, entered into as of February 26, 2021, among Atlas Crest Investment Corp. and Mesa Air Group, Inc., as stockholder, (h) Warrant to Purchase Shares of Archer Aviation Inc., issued February 26, 2021 by Archer Aviation Inc. and acknowledged and agreed by Mesa Air Group, Inc., as holder, (i) any contracts between or among any of Mesa (or any of its Affiliates) or United Airlines (or any of its Affiliates), on the one hand, and Archer (or any of its Affiliates), on the other hand, in each case to the extent not captured by the foregoing clauses (a) through (h), and in each case whether or not disclosed to Republic and whether or not existing as of the date hereof, and (j) in each case of clauses (a) through (i), any amendments or documents related to the foregoing.

"Archer Condition" has the meaning given to that term in Section 1.9(b) of the TPA; the Archer Condition is satisfied when, by the specified deadlines, all the Archer Rights and Obligations (including, as applicable, the Certification Archer Warrants (as defined in the TPA)) are either disposed of, terminated, or assumed in a manner that fully releases Mesa and its Affiliates from any further responsibility, with the process and documentation subject to Republic's reasonable approval.

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"Archer Deadline" means June 3, 2025.

"Archer Rights and Obligations" means, collectively, all of the obligations, liabilities, duties, rights, and similar undertakings of Mesa and its Affiliates under the Archer Agreements.

"Articles of Conversion" means the articles of conversion in form and substance reasonably acceptable to Mesa and Republic, to be filed with the Secretary of State of the State of Nevada.

"ASMs" means the number of seats available for passengers multiplied by the number of miles the seats are flown.

"Asset Sale Conditions" means, as to any binding definitive purchase agreement providing for the consummation of any sale of Eligible Assets (as defined in the TPA): (a) the seller of the Eligible Asset shall have no pre-closing obligations to the buyer of the Eligible Asset (or any of such buyer's Affiliates) other than any obligations that survive closing that are customary for transactions of a similar nature and type, such seller shall have no post-closing liabilities except as to title to the asset or other liabilities that are customary for a transaction of a similar nature and type; (b) all sales shall be "as-is, where-is" without warranties except as to title to the asset; (c) the buyer shall be solely liable for sales, use, transaction privilege, and similar Taxes (as defined in the TPA) and the seller shall have received or provided, as applicable, all legally required evidence of such exemptions before the consummation of the sale; (d) a creditworthy Affiliate of the buyer (if the buyer is not creditworthy) shall agree to provide an indemnity or maintain insurance for the seller and the seller's prior lease and financing parties as and for so long as required by the seller's leasing and financing agreements applicable to such asset; and (e) if such agreement contemplates a closing of one or more asset sales thereunder on a date that follows the signing date of such agreement, then such agreement shall provide a right of termination (or an automatic termination) of such agreement as to any asset sales thereunder that have not been consummated on or prior to September 30, 2025 (or December 31, 2025 with respect to the Subject Assets (as defined in the TPA)).

"Asset Valuation Methodology" means the procedures set forth on Appendix D of the TPA.

"Average stage length" means the average number of statute miles flown per flight segment.

"Aviation Approvals" means, collectively, all of the approvals necessary to be obtained from the DOT, the FAA, the FCC, the TSA, and foreign CAA to consummate the Merger, and notifications to and approvals necessary to be obtained from the AFAC regarding transfer of control and the receipt of official confirmation issued by the AFAC taking note of the transfer of control resulting from the Merger. For avoidance of doubt, the Aviation Approvals shall include the receipt from DOT of an exemption from 49 U.S.C. § 41105, pursuant to 49 U.S.C. § 40109, allowing Mesa and Republic to operate under common ownership pending DOT's action on an application by Mesa and Republic for approval of a de facto transfer of their international route authorities (but shall not, for the avoidance of doubt, include the actual approval by DOT of a de facto transfer of such international route authorities).

"Award" means, collectively, the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, and other stock-based awards and incentive bonuses.

"Block hours" means the number of hours during which the aircraft is in revenue service, measured from the time of gate departure before take-off until the time of gate arrival at the destination.

"Board" means the Board of Directors of the Surviving Corporation.

"CBAs" means collective bargaining agreements.

"Certificate of Conversion" means a duly executed certificate of conversion in form and substance reasonably acceptable to Mesa and Republic, to be filed with the Secretary of State of the State of Delaware.

"Class A Eligible Assets" means, collectively, the CRJ Assets and CF34-8C5 Spare Engines.

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"Class B Eligible Assets" means, collectively, (i) the CF34-8E spare engine described in Part #3 of Appendix F to the TPA, (ii) those certain twenty-three (23) CRJ engines described in Part 5 of Appendix F to the TPA, and (iii) Boeing 737 Spare Parts.

"Closing Date" means the date of the Closing.

"Code" means the Internal Revenue Code of 1986, as amended.

"Confidentiality Agreement" means the Mutual Nondisclosure Agreement, dated as of March 19, 2023, by and between Republic and Mesa.

"Control" means the possession, directly or indirectly, including through one or more intermediaries, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities or partnership or other interests, by Contract or otherwise. The terms "Controlling" and "Controlled by" have correlative meanings.

"Conversion Effective Time" means the time at which the Delaware Conversion becomes effective as specified in the Conversion Filings.

"Conversion Filings" means the Certificate of Conversion and the Articles of Conversion.

"Competition Law" means any domestic or foreign antitrust, competition and merger control law or regulation that is applicable to the transactions contemplated by the Merger Agreement.

"Computershare" means Computershare Trust Company, National Association.

"CPA" means capacity purchase agreement.

"CPA Reconciliation Amount" means the aggregate amount of all reconciliation payments for Compensation for Carrier Controlled Costs and Pass-Through Costs (as each such term is defined in the United CPA), calculated in accordance with the terms and conditions set forth in Sections 3.4, 3.6(b), and 4.31 of the United CPA, to the extent such payments both (x) are not already represented in the Mesa Working Capital Shortfall and (y) have not yet been reconciled between United Airlines and Mesa as of the calendar month in which the Closing will occur; *provided*, that a reconciliation payment owed by Mesa to United Airlines will be represented as a positive number and a reconciliation payment owed by United Airlines to Mesa will be represented as a negative number; *provided*, *further*, that the CPA Reconciliation Amount shall be based on United Airlines' good faith estimate of the relevant flight statistics for the applicable period of determination under the United CPA.

"CPA Side Letter" means the binding letter agreement entered into by Republic and United Airlines concurrently with the execution and delivery of the Merger Agreement.

"CRASM" means contract revenue divided by ASMs.

"CRJ Assets" means, collectively, the CRJ Airframes and the CRJ Part Assets (as each term is defined in the TPA).

"CRJ Part Assets Sale Credit Amount" means, if Mesa has delivered to United Airlines and Republic the CRJ Part Assets Sale Certification prior to the Proposed Final Closing Statement Deadline, an amount equal to $5,000,000.

"CRJ Part Assets Sale Certification" means a written instrument signed by any of the Chief Executive Officer, General Counsel, or Chief Financial Officer, in each case of Mesa, that certifies the consummation of the sale by Mesa of all of the CRJ Part Assets.

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"Delaware Conversion" means the conversion of Mesa from a Nevada corporation to a Delaware corporation by means of a conversion, pursuant to the Plan of Conversion.

"Delta Air Lines" means Delta Air Lines, Inc.

"DGCL" means the General Corporation Law of the State of Delaware, as amended.

"DHL" means DHL Network Operations (USA), Inc.

"DHL FSA" means that certain Flight Services Agreement by and between Mesa and DHL Network Operations (USA), Inc.

"DOT" means the United States Department of Transportation.

"EDGAR" means the SEC's Electronic Data Gathering Analysis and Retrieval System.

"Effective Time" means the effective time of the Merger.

"Eligible Assets" means, collectively, the Class A Eligible Assets and the Class B Eligible Assets; *provided, however*, that, notwithstanding the foregoing, from and after the delivery, if any, of the CRJ Part Assets Sale Certification, the CRJ Part Assets shall no longer be considered Eligible Assets (as each term is defined in the TPA).

"End Date" means 18 months following the termination of the TPA as described under Section 6.18 of the TPA.

"Equity Interests" means, collectively, (i) the Archer Warrants, (ii) the Heart Warrants, (iii) the Regent Shares, (iv) the XTIA Shares, and (v) the Flite Holding Shares (as each term is defined in the TPA).

"Escrow Account" has the meaning given such term in the Escrow Agreement.

"Escrow Agreement" means the escrow agreement executed and delivered in connection with the TPA, a copy of which is filed as Exhibit 10.36 to the registration statement of which this proxy statement/prospectus forms a part.

"Escrow Agent" means Computershare Trust Company, National Association, a national banking association organized under the laws of the United States, as set forth in the Escrow Agreement.

"Escrow Asset" means the Escrow Shares and any other benefits or interests arising from the Escrow Shares, together with any dividends made in respect of any Escrow Shares held in the Escrow Account.

"Escrow Issuance" means the issuance of a number of shares of common stock of the Surviving Corporation equal to 6% of the issued and outstanding shares of common stock of the Surviving Corporation after giving effect to the issuance of Mesa common stock in the Merger, pursuant to the terms of the Three Party Agreement, Merger Agreement, and Escrow Agreement.

"Escrow Shares" means the shares of common stock of the Surviving Corporation equal to 6% of the total shares issued and outstanding after the completion of the Merger and such issuance.

"eVTOL aircraft" means electrically-powered vertical takeoff and landing aircraft.

"Exchange Act" means the Securities Exchange Act of 1934, as amended.

"Exchange Agent" means Computershare Limited.

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"Executive Compensation Amount" means the sum of (1) $7,980,921 for the aggregate severance payments to be paid, which amount does not exceed the maximum severance amount that complies with the limits imposed by the CARES Act and the Mesa Airlines CARES Act loan agreement; and (2) $2,500,000, representing the aggregate amount of consulting fees payable to such departing executive officers in exchange for their consulting services to the Surviving Corporation, as earned, in the one-year period immediately following the Closing, in the case of this clause (2) based on the representations made in Section 4.9 of the TPA.

"FAA" means the United States Federal Aviation Administration.

"FCC" means the Federal Communications Commission.

"Final Closing Statement" has the meaning given to such term in Section 1.7(d) of the TPA.

"FINRA" means the Financial Industry Regulatory Authority.

"Flite" means Flite Holdings Limited, a company incorporated in the Republic of Malta.

"Flite Holding Shares" means shares owned by Mesa in Flite.

"Form S-4" means the registration statement on Form S-4 filed with the SEC in connection with the Merger.

"Form S-1" means the registration statement on Form S-1 filed with the SEC in connection with the distribution of the Escrow Shares to the Pre-Merger Mesa Shareholders in connection with the Escrow Issuance.

"FTICA" means FTI Capital Advisors, LLC.

"GAAP" means U.S. generally accepted accounting principles.

"Governmental Entity" means (a) any national, federal, state, county municipal, local or foreign government, or other political subdivision thereof; (b) any public international or multinational organization or authority; (c) any authority, agency, commission, or any entity exercising executive, legislative, judicial, regulatory, police, taxing or administrative functions, power or authority of or pertaining to government; or (d) any state-owned or controlled enterprise.

"HSR Act" means the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.

"Indebtedness" means, with respect to any Person, (a) indebtedness for borrowed money, whether current or funded, secured or unsecured, (b) debt securities (including notes, bonds, debentures, or other similar instruments), (c) obligations with respect to leases required to be accounted for as capital or finance leases in accordance with GAAP or recorded as capital or finance leases in the consolidated financial statements of such Person, (d) for letters of credit, bank guarantees, and other similar Contracts entered into by or on behalf of such Person, (e) all obligations of such Person issued or assumed as the deferred purchase price of property (including any potential future earn-out, purchase price adjustment, release of "holdback" or similar payment), (f) pursuant to guarantees and arrangements having the economic effect of a guarantee of any obligation, liability, or undertaking of any other Person contemplated by the foregoing clauses (a) through (e) of this definition, and (g) all obligations of the type referred to in clauses (a) through (f) of this definition of any Person other than Republic or any of its Subsidiaries or Mesa or any of its Subsidiaries (as applicable, depending on the context), the payment of which Republic or any of its Subsidiaries or Mesa or any of its Subsidiaries (as applicable) is liable, directly or indirectly, as obligor, guarantor, surety, or otherwise.

"Independent Valuation Firm" has the meaning given to such term in Section 1.7(f) of the TPA.

"Intervening Event" means any material event, circumstance, change, effect, development, or condition with respect to Mesa, its subsidiaries or its business that (i) was not known or reasonably foreseeable by the Mesa board of directors as of execution and delivery of the Merger Agreement and (ii) first becomes known to the

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Mesa board of directors after the execution and delivery of the Merger Agreement and at any time prior to the time Mesa stockholder approval is obtained, subject to certain exceptions.

"LIFT Academy" means Leadership In Flight Training Academy.

"Liquidator" means an industry-recognized liquidator to be chosen by United Airlines.

"Load factor" means the percentage of aircraft seat miles actually occupied on a flight (RPMs divided by ASMs).

"MAG-AIM" means Mesa Air Group-Airline Inventory Management, LLC., an Arizona limited liability company.

"Malta Agreements" means the Malta JV Shareholders' Agreement, the Loan Agreement, made on December 2, 2022, between Flite Holdings Limited, as borrower, and Mesa Airlines, Inc., as lender (unsecured loan agreement in respect of $1,000,000), and any amendments or documents related to the foregoing.

"Malta Amount" means, if the Malta Condition has not been satisfied as of the Proposed Final Closing Statement Deadline, the aggregate amount (expressed as a positive number) of all amounts due or owing (or that may become due or owing), whether in the form of loans, lines of credit (whether or not drawn), equity contributions, advances, disbursements or otherwise, by Mesa or any of its Affiliates to Flite, any of its Affiliates, or any of its or their respective direct or indirect equityholders.

"Malta Condition" means, as of the Proposed Final Closing Statement Deadline, (i) neither Mesa nor any of its Affiliates is any longer an equityholder in Flite or any of its Affiliates, and (ii) Mesa and its Affiliates have terminated their participation in the Malta JV Shareholders' Agreement and all related agreements and commercial or other arrangements with Flite, its Affiliates and its and their respective direct or indirect equityholders, in each case in full and without any further obligations, duties, liabilities, or similar undertakings of Mesa or any of its Affiliates.

"Merger" means the merger of Republic with and into Mesa, with Mesa as the surviving corporation in the merger.

"Merger Agreement" means that certain Agreement, Plan of Conversion and Plan of Merger, dated as of April 4, 2025, entered into by Mesa and Republic, as may be amended, modified, or supplemented from time to time.

"Merger Consideration" means the validly issued, fully paid, and non-assessable shares of Mesa common stock issued pursuant to the Merger Agreement, with cash (without interest, rounded down to the nearest cent) paid in lieu of any fractional shares

"Mesa" means Mesa Air Group, Inc., a Nevada corporation.

"Mesa Airlines" means Mesa Airlines, Inc., a Nevada corporation.

"Mesa Acquisition Proposal" means, with respect to Mesa, any offer or proposal from any Person or group (other than Republic) concerning any, in a single transaction or series of related transactions, direct or indirect (a) merger, consolidation, business combination, share exchange, recapitalization, liquidation, dissolution, conversion, transfer, domestication or continuance or other transaction involving Mesa which would result in any Person or group (or the shareholders of any Person or group) beneficially owning, directly or indirectly, more than 20% or more of the voting power of Mesa or 20% or more of the voting power of the successor to Mesa in such transaction or the resulting direct or indirect parent of Mesa or such successor (or any securities convertible into, or exchangeable for, securities representing such voting power), (b) sale, lease, exchange, transfer, license,

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or other disposition of assets of Mesa representing 20% or more of the consolidated assets of Mesa (whether based on the fair market value, revenue generation, or net income), (c) issuance or sale by Mesa of equity interests representing, convertible into, or exchangeable for 20% or more of the voting power of Mesa, (d) transaction in which any Person will acquire beneficial ownership, or the right to acquire beneficial ownership of shares of capital stock representing 20% or more of the voting power of Mesa, (e) any tender offer or exchange offer, as defined pursuant to the Exchange Act, that if consummated would result, directly or indirectly, in any Person or group (or the shareholders of any Person or group) beneficially owning 20% or more of the voting power of Mesa, or (f) any combination of the foregoing (in each case, other than the Merger).

"Mesa Alternative Acquisition Agreement" means any agreement, letter of intent, memorandum of understanding, agreement in principle, acquisition agreement, merger agreement, option, or other similar contract providing for or otherwise relating to any Mesa Acquisition Proposal (other than an Acceptable Confidentiality Agreement in accordance with the terms of the Merger Agreement) or that is intended to result in, or would reasonably be expected to lead to, any Mesa Acquisition Proposal.

"Mesa Charter" means Mesa's Second Amended and Restated Articles of Incorporation.

"Mesa common stock" means (i) prior to the Conversion, each share of Mesa common stock, no par value, that is issued and outstanding prior to the Effective Time and (ii) following the Conversion, each share of Mesa common stock, par value $0.001 per share, that is issued and outstanding prior to the Effective Time.

"Mesa-Delaware" means Mesa Air Group, Inc., a Delaware corporation, after the Delaware Conversion.

"Mesa Intervening Event" means any material event, circumstance, change, effect, development, or condition with respect to Mesa, its subsidiaries or their respective business that (i) was not known or reasonably foreseeable by the Mesa board of directors as of execution and delivery of the Merger Agreement, and (ii) first becomes known to the Mesa board of directors after the execution and delivery of the Merger Agreement and at any time prior to the time the Mesa Stockholder Approval is obtained; provided, however, that in no event shall any event, circumstance, change, effect, development, or condition resulting from or relating to any of the following give rise to a Mesa Intervening Event: (a) the receipt, existence, or terms of a Mesa Acquisition Proposal or Mesa Superior Proposal (which, for purposes of this definition, shall be read without reference to any percentages set forth in the definitions of "Mesa Acquisition Proposal" and "Mesa Superior Proposal") or any matter relating thereto or consequence thereof; (b) the announcement or pendency of the transactions contemplated by the Merger Agreement, including the Merger; (c) any breach of the Merger Agreement by Mesa; (d) the fact that Mesa has exceeded or met any internal or published (including analyst) projections, expectations, forecasts or predictions in respect of Mesa's revenue, earnings or other financial performance or results of operations; or (e) any changes in the market price or trading volume of the shares of Mesa common stock.

"Mesa Legacy Shareholders" means those persons and entities who constitute the holders of Mesa common stock and warrants immediately prior to the consummation of the Merger and prior to the Delaware Conversion.

"Mesa-Nevada" means Mesa Air Group, Inc., a Nevada corporation, prior to the Delaware Conversion.

"Mesa Obligations" means, collectively (and without duplication): (a) the Mesa Working Capital Shortfall (as defined in the TPA) (if a positive number); (b) the UST Loan; (c) to the extent not captured in the immediately preceding clause (a), the Executive Compensation Amount (as defined in the TPA); and (d) any other equipment, property, or Indebtedness obligations or payables (whether or not aged), in each case of the items referenced in this clause (d) to the extent reflected on Mesa's trial balance, as determined in accordance with the line items, policies, and procedures as set forth on Appendix L of the TPA, prepared in accordance with GAAP; provided, however, that notwithstanding anything to the contrary in the foregoing, the Mesa Obligations will not include any claims or liabilities arising from, related to, or in connection with either (x) environmental, labor, employment, tax, securities matters, (y) liabilities not primarily related to Mesa's flight operations, or (z) any operating leases or capital leases.

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"Mesa Recommendation" means the recommendation made by the Mesa board of directors as set forth in the resolutions that the Mesa board of directors adopted at a meeting duly called and held prior to the execution and delivery of the Merger Agreement, by which the Mesa board of directors unanimously (i) determined that the Merger Agreement, the Plan of Conversion, the Delaware Conversion, the Merger, the Escrow Issuance, and the other transactions contemplated by the Merger Agreement and the Three Party Agreement are advisable, fair to, and in the best interests of Mesa and its stockholders, (ii) adopted, approved, and declared advisable the Merger Agreement, the Plan of Conversion, the Delaware Conversion, the Merger, the Escrow Issuance, and the other transactions contemplated by the Merger Agreement and the Three Party Agreement, in accordance with the requirements of the NRS, (iii) directed that the Merger Agreement, the Plan of Conversion, the Delaware Conversion, and the Merger be submitted to the Mesa stockholders for adoption and approval and (iv) recommended that the Mesa stockholders vote their shares of Mesa common stock in favor of the Mesa Stockholder Approval.

"Mesa Representative" means Mesa Shareholder Representative, LLC.

"Mesa Representative Expense Fund" means $100,000 paid by Mesa to the Mesa Representative at Closing.

"Mesa Representative Expense Fund Remainder" means any amount of cash remaining in the Mesa Representative Expense Fund following the completion of the Mesa Representative's responsibilities under the TPA.

"Mesa SEC Documents" means registration statements, prospectuses, forms, reports, certifications, statements, and other documents filed or furnished by Mesa under the Securities Act or the Exchange Act, as the case may be, together with all certifications required pursuant to the Sarbanes-Oxley Act and any other documents filed by Mesa with the SEC, as have been supplemented, modified, or amended since the time of filing.

"Mesa Service Providers" means any Mesa's or its subsidiaries' former or current employees, officers, consultants, independent contractors, or directors.

"Mesa Special Meeting" means the special meeting of Mesa stockholders as described in this proxy statement/prospectus.

"Mesa Stockholder Approval" means (i) the approval of the Merger Agreement and the Plan of Conversion and the approval of the Delaware Conversion and the Merger by the holders of a majority of the outstanding shares of Mesa common stock entitled to vote thereon at the Mesa Special Meeting, and (ii) the approval of the issuance of shares of Mesa common stock in the Merger and the Escrow Issuance by the holders of a majority of the votes cast at the Mesa Special Meeting.

"Mesa Superior Proposal" means a bona fide written Mesa Acquisition Proposal (except the references therein to "20%" will be replaced by "50%") made by a third party (other than Republic) after the date of the merger agreement which Mesa's board of directors determines in its good faith judgment, after consultation with its outside legal counsel and financial advisors, (a) would result in a transaction that is more favorable to Mesa's stockholders, from a financial point of view, than the merger (after giving effect to all applicable adjustments pursuant to the terms of the Merger Agreement) and after taking into account the identity of the third party making the proposal, likelihood of consummation of such transaction in accordance with the terms of such Mesa Acquisition Proposal and legal, financial, regulatory, timing, and other applicable aspects of such Mesa Acquisition Proposal; and (b) is reasonably capable of being consummated in accordance with the material terms thereof substantially within the timeframe contemplated by such Mesa Acquisition Proposal.

"Mesa Working Capital Shortfall" means the amount, if a positive number, equal to (i) Aggregate Current Liabilities (as defined in the TPA), minus (ii) Mesa Closing Balance Sheet Credit Amount (as defined in the TPA).

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"Mesa Working Capital Surplus" means the amount, if a positive number, equal to (i) Mesa Closing Balance Sheet Credit Amount (as defined in the TPA) minus (ii) Aggregate Current Liabilities (as defined in the TPA).

"MPD" means Mesa Pilot Development, L.L.C., an Arizona limited liability company, Mesa's pilot development program.

"Nasdaq" means the Nasdaq Capital Market.

"Nasdaq Stock Market" means the Nasdaq Stock Market LLC.

"Net Debt Amount" means, without duplication, a dollar value equal to (i) the aggregate dollar value (expressed as a positive number) of all Pre-Closing Mesa Obligations that United Airlines must repay, assume, or otherwise bear responsibility for pursuant to Section 1.4(c) of the TPA, *plus* (ii) the aggregate dollar value (expressed as a positive number) of the United Debt as of immediately prior to the Closing, *plus* (iii) if a positive number, the CPA Reconciliation Amount, *plus* (iv) the aggregate dollar value (expressed as a positive number) of the Mesa Representative Expense Fund (*provided*, that the aggregate dollar value of the Mesa Representative Expense Fund shall not be included in the Net Debt Amount if such amount is both (a) accrued for on Mesa's trial balance, as determined in accordance with the line items, policies and procedures as set forth on Appendix L of the TPA, and (b) appropriately captured in the cash balance of Mesa as of immediately prior to the Closing), *minus* (v) if a negative number, the absolute value of the CPA Reconciliation Amount, *minus* (vi) the aggregate dollar value (expressed as a positive number) of the Mesa Asset Credit, *minus* (vii) the aggregate dollar value (expressed as a positive number) of the Mesa Performance Credit Amount, *minus* (viii) the aggregate dollar value of all Post-Closing Class B Eligible Assets Sales Proceeds to which United Airlines has become entitled under Section 2.3(f) of the TPA following the Closing and through the Share Settlement Date other than as to Post-Closing Class B Eligible Assets Sales Proceeds under Qualifying Agreements (as defined in the TPA) (for the avoidance of doubt, this clause (viii) shall be disregarded for the purpose of the estimates delivered by Mesa under Section 1.7 of the TPA), *minus* (ix) the aggregate dollar value of the Mesa Representative Expense Fund Remainder (for the avoidance of doubt, this clause (ix) shall be disregarded for the purpose of the estimates delivered by Mesa under Section 1.7), *minus* (x) the CRJ Part Assets Sale Credit Amount (as defined in the TPA), *minus* (xi) the Mesa CCF Credit Amount (as defined in the TPA); *provided* that in the case of each of clauses (i) through (vii) immediately above, such calculations shall be determined solely by reference to the line item categories set forth in Appendix C of the TPA. For the avoidance of doubt, the Net Debt Amount may be a negative number.

"Net Debt Amount Adjustment Notice" has the meaning given to such term in Section 1.7(g) of the TPA.

"Net Debt Amount Adjustment Resolution Period" has the meaning given to such term in Section 1.7(g) of the TPA.

"NewCo" or the Surviving Corporation means Mesa following the Merger, which will be renamed "Republic Airways Holdings Inc."

"NMB" means the National Mediation Board.

"NOL" means net operating loss carryforward.

"Non-Eligible Assets" means, collectively, the ERJ Part Assets (as defined in the TPA), the Pipistrel Assets (as defined in the TPA) and the Miscellaneous Assets (as defined in the TPA) (excluding the Equity Interests and the Class B Eligible Assets (as defined in the TPA)).

"Non-Eligible Asset Credit" means the aggregate Asset Value (as defined in the TPA) of all Non-Eligible Assets (as defined in the TPA) of Mesa as of immediately prior to the Closing as determined pursuant to the Asset Valuation Methodology.

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"NRS" means the Nevada Revised Statutes, as amended.

"Outside Date" means January 5, 2026; provided that if certain conditions are not met by January 5, 2026, the Outside Date will be automatically extended to April 6, 2026.

"Parent" means Mesa.

"Pass-through and other revenue" means costs from Mesa's major partner under its agreements that Mesa equally recognizes as both a revenue and an expense, including passenger and hull insurance, aircraft property taxes, landing fees, catering, and certain maintenance costs related to E175 aircraft.

"Person" means any individual, general or limited partnership, corporation, limited liability company, business trust, joint stock company, trust, unincorporated organization, joint venture, firm, association, or other entity or organization (whether or not a legal entity), including any Governmental Entity (or any department, agency, or political subdivision thereof).

"Plan of Conversion" means the plan of conversion set forth in Section 1.2 of the Merger Agreement.

"Post-Closing Reconciliation and Credit Disputed Item" has the meaning given to such term in Section 1.7(j) of the TPA.

"Post-Closing Reconciliation and Credit Dispute Period" has the meaning given to such term in Section 1.7(j) of the TPA.

"Post-Closing Reconciliation and Credit Dispute Notice" has the meaning given to such term in Section 1.7(j) of the TPA.

"Post-Closing Resolution Period" has the meaning given to such term in Section 1.7(j) of the TPA.

"Post-Closing Surviving Corporation Dispute Period" or "Post-Closing NewCo Dispute Period" has the meaning given to such term in Section 1.7(k) of the TPA.

"Post-Conversion Bylaws" means the bylaws of Mesa adopted in connection with the Delaware Conversion, in the form filed as Exhibit 3.5 to the registration statement of which this proxy statement/prospectus forms a part.

"Post-Conversion Charter" means the certificate of incorporation of Mesa filed in the State of Delaware in connection with the Delaware Conversion, which will govern Mesa-Delaware as a Delaware corporation prior to the Effective Time, in the form filed as Exhibit 3.4 to the registration statement of which this proxy statement/prospectus forms a part.

"Pre-Closing Disputed Items" has the meaning given to such term in Section 1.7(d) of the TPA.

"Pre-Closing Dispute Period" has the meaning given to such term in Section 1.7(d) of the TPA.

"Pre-Closing Dispute Notice" has the meaning given to such term in Section 1.7(d) of the TPA.

"Pre-Closing Engagement Date" has the meaning given to such term in Section 1.7(f) of the TPA.

"Pre-Closing Mesa Obligation" means each remaining Mesa Obligation as of the Closing.

"Pre-Closing Resolution Period" has the meaning given to such term in Section 1.7(e) of the TPA.

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"Pre-Merger Mesa Shareholders" has the meaning given to such term in the recitals of the TPA.

"Proposed Estimated Net Debt Amount" has the meaning given to such term in Section 1.7(c) of the TPA.

"Qualifying Agreement" means, as to any Eligible Asset (as defined in the TPA), a binding and definitive written agreement for the purchase and sale thereof that has been executed by all parties thereto as of the Proposed Final Closing Statement Deadline that also meets all of the following conditions: (i) all conditions precedent (other than routine administrative acts contemplated to occur at the closing of such purchase and sale) to the parties' obligations to consummate such purchase and sale either have been satisfied or are reasonably capable of being satisfied; (ii) the price for such Eligible Asset either (x) is determinable prior to the closing of such purchase and sale solely pursuant to the terms and conditions set forth in such agreement or (y) is fixed pursuant to the terms and conditions of such agreement; (iii) under the terms and conditions thereof, the consummation of the purchase and sale of such Eligible Asset thereunder is required to occur (unless terminated pursuant to the express terms and conditions thereunder) on or prior to September 30, 2025 (or December 31, 2025 for the sale of the Subject Assets (as defined in the TPA)) and (iv) such agreement does not include as a condition to closing that the assets to be purchased pursuant to such agreement are airworthy or serviceable; and (v) a true and complete copy of such agreement (together with all exhibits, schedules, and ancillary documentation relevant to such agreement, including any amendments thereto) has been provided to United Airlines; *provided, however*, that, solely in the case of the Subject Assets, on an asset by asset basis, as to each of the immediately preceding clauses (i) and (iv), such clause shall be disregarded if the buyer under the applicable definitive agreement has delivered to United Airlines, prior to the Proposed Final Closing Statement Deadline, a written confirmation that the conditions referenced in the applicable clause (i.e., either clause (i) or (iv), as applicable) have been satisfied in full.

"Qualifying Appraisal" means the most recent appraisal of an asset whose appraisal valuation date is less than 90 days prior to the Proposed Final Closing Statement Deadline.

"Registration Rights Agreement" means the registration rights agreement entered into by and between the Surviving Corporation and certain existing stockholders of Republic (the "Major Shareholders") pursuant to the terms of the TPA, providing the Major Stockholders with registration rights, effective as of the Closing.

"Registration Statement" means the registration statement on Form S-4/S-1 filed with the SEC by Mesa.

"Remaining Shares" has the meaning given to such term in Section 2.1(d)(i) of the TPA.

"Representatives" means, with respect to any Person, any director, principal, partner, manager, member (if such Person is a member-managed limited liability company or similar entity), employee (including any officer), consultant, investment banker, financial advisor, legal counsel, attorney-in-fact, accountant or other advisor, agent or other representative of such Person, in each case acting in their capacity as such.

"Republic" means Republic Airways Holdings Inc., a Delaware corporation.

"Republic Alternative Acquisition Agreement" means any agreement, letter of intent, memorandum of understanding, agreement in principle, acquisition agreement, merger agreement, option, or other similar contract providing for or otherwise relating to any Republic Acquisition Proposal (other than an Acceptable Confidentiality Agreement in accordance with the terms of the Merger Agreement) or that is intended to result in, or would reasonably be expected to lead to, any Republic Acquisition Proposal.

"Republic Acquisition Proposal" means, with respect to Republic, any offer or proposal from any Person or group (other than Mesa) concerning any, in a single transaction or series of related transactions, direct or indirect (a) merger, consolidation, business combination, share exchange, recapitalization, liquidation, dissolution, conversion, transfer, domestication, or continuance or other transaction involving Republic which would result in

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any Person or group (or the shareholders of any Person or group) beneficially owning, directly or indirectly, more than 20% or more of the voting power of Republic or 20% or more of the voting power of the successor to Republic in such transaction or the resulting direct or indirect parent of Republic or such successor (or any securities convertible into, or exchangeable for, securities representing such voting power), (b) sale, lease, exchange, transfer, license, or other disposition of assets of Republic representing 20% or more of the consolidated assets of Republic (whether based on the fair market value, revenue generation or net income), (c) issuance or sale by Republic of equity interests representing, convertible into or exchangeable for 20% or more of the voting power of Republic, (d) transaction in which any Person will acquire beneficial ownership, or the right to acquire beneficial ownership of shares of capital stock representing 20% or more of the voting power of Republic, or (e) any combination of the foregoing (in each case, other than the Merger). Notwithstanding the foregoing, none of the following shall constitute a Republic Acquisition Proposal: (A) any transfer of equity interests of any stockholder of Republic or of any direct or indirect member, stockholder, partner, or other equity holder of such stockholder (an "Upper-Tier Transfer"), including to the extent such Upper-Tier Transfer triggers a change of control of such stockholder, and (B) any transfer of equity interests of Republic held by any stockholder of Republic.

"Republic common stock" means each share of Republic common stock issued and outstanding prior to the Effective Time, par value $0.001.

"Republic Intervening Event" means any material event, circumstance, change, effect, development, or condition with respect to Republic, its subsidiaries or their respective business that (i) was not known or reasonably foreseeable by the Republic board of directors as of execution and delivery of the Merger Agreement and (ii) first becomes known to the Republic board of directors after the execution and delivery of the Merger Agreement and at any time prior to the time the Republic Stockholder Approval is obtained; provided, however, that in no event shall any event, circumstance, change, effect, development, or condition resulting from or relating to any of the following give rise to a Republic Intervening Event: (a) the receipt, existence, or terms of a Republic Acquisition Proposal or Republic Superior Proposal (which, for purposes of this definition, shall be read without reference to any percentages set forth in the definitions of "Republic Acquisition Proposal" and "Republic Superior Proposal") or any matter relating thereto or consequence thereof; (b) the announcement or pendency of the transactions contemplated by the Merger Agreement, including the Merger; (c) any breach of the Merger Agreement by Republic; (d) the fact that Republic has exceeded or met any internal or published (including analyst) projections, expectations, forecasts or predictions in respect of Republic's revenue, earnings or other financial performance or results of operations; or (e) any changes in the market price or trading volume of the shares of Republic common stock.

"Republic Recommendation" means the recommendation made by the Republic board of directors as set forth in the resolutions that the Republic board of directors adopted at a meeting duly called and held prior to the execution and delivery of the Merger Agreement, by which the Republic board of directors unanimously (i) determined that the Merger Agreement, the Merger and the other transactions contemplated by the Merger Agreement and the Three Party Agreement are advisable, fair to, and in the best interests of Republic and its stockholders, (ii) approved and declared advisable the Merger Agreement, the Merger, and the other transactions contemplated by the Merger Agreement and the Three Party Agreement, in accordance with the requirements of the DGCL, (iii) directed that the Merger Agreement be submitted to the Republic stockholders entitled to vote thereon for adoption and approval, and (iv) recommended that the Republic stockholders vote their shares of Republic common stock in favor of the adoption of the Merger Agreement and approval of the Merger.

"Republic Stockholder Approval" means the adoption of the Merger Agreement and approval of the Merger by the holders of at least two-thirds of the outstanding shares of Republic common stock entitled to vote thereon.

"Republic Superior Proposal" means a bona fide written Republic Acquisition Proposal (except the references therein to "20%" will be replaced by "50%") made by any Person or group (other than Mesa) after the date of the Merger Agreement that the Republic board of directors has determined in its good faith judgment,

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after consultation with its outside legal counsel and with its financial advisors, (a) would result in a transaction that is more favorable to Republic's stockholders, from a financial point of view, than the Merger (after giving effect to all adjustments to the terms thereof which may be offered by Mesa pursuant to Section 5.6(g) of the Merger Agreement) and after taking into account the identity of the Person or group making the proposal, likelihood of consummation of such transaction in accordance with the terms of such Republic Acquisition Proposal, and legal, financial, regulatory, timing, and other applicable aspects of such Republic Acquisition Proposal; and (b) is reasonably capable of being consummated in accordance with the material terms thereof substantially within the timeframe contemplated by such Republic Acquisition Proposal.

"Republic's Partners" means, collectively, American Airlines, Delta Air Lines and United Airlines.

"Republic's Stockholders Agreement" means the agreement dated May 1, 2017, by and among Republic and certain of Republic's stockholders.

"RLA" means the Railway Labor Act.

"RPMs" means the number of miles traveled by paying passengers.

"SEC" means the U.S. Securities and Exchange Commission.

"Securities Act" means the Securities Act of 1933, as amended.

"Share Settlement Date" means the date the Net Debt Amount is determined.

"SOFR" means Secured Overnight Financing Rate.

"SARs" means Stock Appreciation Rights.

"Subject CRJ Pilots" has the meaning given to such term in Section 3.1 of the TPA.

"Subsidiary" means of a Person means any other Person with respect to which the first Person (a) has the right to elect a majority of the board of directors or other Persons performing similar functions or (b) beneficially owns more than 50% of the voting stock (or of any other form of voting or controlling equity interest in the case of a Person that is not a corporation), in each case, directly or indirectly through one or more other Persons.

"Supporting Documentation" means all supporting records and/or data required to substantiate the values provided in Appendix C of the TPA, including, but not limited to: an updated Mesa trial balance estimated as of the Closing in accordance with the line items, policies, and procedures set forth on the sample Mesa trial balance contained on Appendix L of the TPA; all invoices outstanding; employee roster; payroll data; vacation balances; detailed invoices from respective legal vendors with supporting documentation; detailed invoices from FTICA with supporting documentation; prior invoices related to cost as well as contracted rate for anything volume driven with respect to Legal Fees and FTICA Fees (as defined in the TPA) and support for accruals posted to general ledger; bank ledgers/statements; invoices to customers; detailed invoices or estimates of prepaid expenses; any signed and binding letters of intent for parts and supplies; specific agreement loan and term sheet with respect to the UST Loan; any executive contracts of employment; general ledger and invoice support for any other equipment, property, Indebtedness, or payables; hotel receipts, payroll data, and per diem receipts.

"Surviving Corporation" means Mesa following the Merger.

"Surviving Corporation Entitlement" has the meaning given to the term "NewCo Entitlement" in Section 2.1(c)(i) of the TPA (i.e., the amount by which the Net Debt Amount as finally determined pursuant to

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Sections 1.7(k) through (m) of the Three Party Agreement (but excluding from the calculation of Net Debt Amount the Surviving Corporation Excluded Items) is greater than the Net Debt Amount determined in accordance with Sections 1.7(c) through (i) of the Three Party Agreement (but excluding from the calculation of Net Debt Amount the Surviving Corporation Excluded Items).

"Surviving Corporation Excluded Items" means, collectively, the CPA Reconciliation Amount and the Mesa Performance Credit Amount.

"Surviving Corporation Indemnitee" has the meaning given to the term "NewCo Indemnitee" in Section 2.2(c) of the TPA.

"Surviving Corporation Notice" has the meaning given to such term in Section 2.1(c)(i) of the TPA (i.e., the statement delivered to the Mesa Representative by the Surviving Corporation setting forth the number of Shares (the "Surviving Corporation Shares") whose aggregate dollar value (based on the Surviving Corporation Stock Value), when combined with the aggregate dollar value of the dividends to date on the Surviving Corporation Shares (whether accrued and paid or accrued but unpaid), is equal to the Surviving Corporation Entitlement.)

"Surviving Corporation Restricted Stock Award" means an award of restricted shares of Mesa common stock issued in exchange for unvested Republic RSUs, as described in the Merger Agreement.

"Surviving Corporation Shares" has the meaning given to the term "NewCo Shares" in Section 2.1(c)(i) of the TPA.

"Surviving Corporation Stock Value" means the average of the volume weighted average price per share of Surviving Corporation Common Stock on NASDAQ (as reported by Bloomberg L.P. or, if not reported therein, in another authoritative source mutually selected by the Parties) on each of the 20 consecutive trading days ending with the last complete trading day immediately prior to, as applicable, (x) in the case of a disbursement of United Shares pursuant to Section 2.1 (b) of the TPA, the 60th calendar day following the Closing or (y) in the case of the disbursement of Surviving Corporation Shares pursuant to Section 2.1(c) of the TPA, the later of (A) the disbursement of all United Shares pursuant to Section 2.1(b)(ii) of the TPA and (B) the finalization of the Net Debt Amount pursuant to Sections 1.7(k), (1), and (m) of the TPA.

"Tax" or "Taxes" shall mean any and all U.S. federal, state, local, or non-U.S. taxes, withholdings, charges, fees, levies, or other assessments or other similar charges in the nature of a tax imposed by any Governmental Entity, including any income, excise, property, sales, use, occupation, transfer, conveyance, payroll, or other employment-related tax, workers' compensation, unemployment compensation, recapture, escheat, duties, license, registration, ad valorem, value-added, social charges, social security, national insurance (or other similar contributions or payments), franchise, estimated severance, stamp taxes, windfall or other profits, taxes based upon or measured by capital stock, capital gains, net worth or gross receipts, custom duties and other taxes together with all interest, fines, penalties, and additions attributable to or imposed with respect to such amounts.

"Tax Audit" means an audit, investigation, or other proceeding by a Governmental Entity.

"Transferable Assets" has the meaning given to such term in Section 2.3(d) of the TPA.

"Treasury" means the United States Department of Treasury.

"TSA" means the United States Transportation Security Administration.

"Three Party Agreement" or "TPA" means the agreement among Mesa, Republic, and United Airlines, a copy of which is filed as Exhibit 10.15 to the registration statement of which this proxy statement/prospectus forms a part.

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"United Airlines" means United Airlines, Inc.

"United CPA" means the Third Amended and Restated Capacity and Purchase Agreement dated December 27, 2022, by and among United Airlines, Mesa Airlines, and Mesa (as amended to date).

"United Debt" means, collectively, at any given point in time, all amounts owed under the Second Amended and Restated Credit and Guaranty Agreement, dated as of June 30, 2022, as subsequently amended, between Mesa and United Airlines, as assignee of CIT Bank and the lenders thereunder, all other amounts owed under the revolving credit provisions, all interest accrued and unpaid, all penalties, and all other amounts due and owing thereunder.

"United Entitlement" has the meaning given to such term in Section 2.1(b)(i) of the TPA.

"United Notice" has the meaning given to such term in Section 2.1(b)(i) of the TPA.

"United Shares" has the meaning given to such term in Section 2.1(b)(i) of the TPA.

"United Triggering Event" means any circumstance under which United Airlines or any of its Affiliates or any of its and their respective Representatives takes any action or fails to take any action that causes, directly or indirectly, Mesa or any of its Affiliates (including, after the Closing, NewCo and its Affiliates) to incur any obligations, liabilities or other responsibilities under any of the Archer Rights and Obligations, including any obligation to acquire aircraft from Archer or any of its Affiliates.

"UST Loan" means all amounts owed under that certain Loan and Guarantee Agreement, dated as of October 30, 2020, among Mesa Airlines, Inc., Mesa, the United States Department of the Treasury and the Bank of New York Mellon as administrative agent and collateral agent, as supplemented by that certain Modification and Waiver Agreement, dated as of December 22, 2022, among the foregoing Persons.

"Utilization" means the percentage derived from dividing (i) the number of block hours actually flown during a given month under a particular CPA by (ii) the maximum number of block hours that could be flown during such month under the particular CPA.

"Utilization Condition" means, as of any date of determination, a circumstance in which, for the Utilization Test Period (as defined in the TPA), the Utilization Rate Average is equal to or greater than 9.0.

"Utilization Rate Average" means the arithmetic mean of the Monthly Utilization Daily Rates (as defined in the TPA) during the Utilization Test Period.

"Utilization Test Period" means the period commencing as of the first day of the first calendar month following the date of the TPA and ceasing as of the end of the calendar month ceasing immediately prior to such date of determination.

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#### QUESTIONS AND ANSWERS ABOUT THE MERGER
*The following section provides answers to frequently asked questions about the Merger. This section, however, provides only summary information, and may not include all the information that is important to Mesa stockholders. Stockholders are urged to carefully read this entire proxy statement/prospectus, including the financial statements and annexes attached hereto and the other documents referred to herein*.

#### Q: What is the Merger?
**A:** On April 4, 2025, Mesa and Republic entered into the Merger Agreement, a copy of which is attached to proxy statement/prospectus as *Annex A*. The Merger Agreement contains the terms and conditions of the proposed Merger. Pursuant to the Merger Agreement, following the Delaware Conversion, Republic will merge with and into Mesa, with Mesa continuing as the Surviving Corporation. This transaction is referred to in this proxy statement/prospectus as the "Merger." As a result of the Merger, the separate corporate existence of Republic will cease. The Merger Agreement also provides for the Delaware Conversion, pursuant to which, prior to the Effective Time, Mesa will convert from a corporation existing under the laws of the State of Nevada to a corporation existing under the laws of the State of Delaware. At the Effective Time, Mesa will change its corporate name to "Republic Airways Holdings Inc." and its common stock is expected to trade on Nasdaq under the symbol "RJET." Upon completion of the Merger, former Republic stockholders are expected to own approximately eighty-eight percent (88%) of the outstanding shares of common stock of the Surviving Corporation on a fully-diluted basis, while the Pre-Merger Mesa Shareholders are expected to own approximately six percent (6%) of the outstanding shares of common stock of the Surviving Corporation on a fully-diluted basis, subject to certain assumptions. The Pre-Merger Mesa Shareholders will have the contingent right to receive, on a pro rata basis, up to an additional six percent (6%) of the issued and outstanding shares of the Surviving Corporation for a total of up to approximately 12%, subject to certain conditions. See the section titled "*Agreements Related to the Merger – The Three Party Agreement*" beginning on page 165 of the accompanying proxy statement/prospectus.

#### Q: What will Republic securityholders receive in the Merger?
**A:** At the Effective Time, upon the terms and subject to the conditions set forth in the Merger Agreement, each share of Republic common stock issued and outstanding immediately prior to the Effective Time (excluding shares to be cancelled pursuant to the Merger Agreement and excluding dissenting shares held by stockholders who have not voted in favor of, or consented to, the Merger and have properly demanded appraisal of such shares in accordance with, and have complied in all respects with, the provisions of Section 262 of the DGCL) will be automatically converted into the right to receive a number of validly issued, fully paid, and non-assessable shares of Mesa common stock equal to the Exchange Ratio (described in more detail in the section titled "*The Merger Agreement – Merger Consideration*" beginning on page 138 of this proxy statement/ prospectus), with cash (without interest, rounded down to the nearest cent) paid in lieu of any fractional shares.

If the Merger had been consummated on August 11, 2025, based on the Exchange Ratio of 584.90, each share of Republic common stock would have been converted into the right to receive shares of Mesa common stock worth $631.69 in value based on the $1.08 August 11, 2025 closing market price of Mesa common stock. Because the Exchange Ratio is fixed and the value of Mesa common stock may fluctuate between the signing and consummation of the Merger, the value of each share of Mesa common stock received by Republic stockholders may change as compared to this notional value as of August 11, 2025.

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Further, pre-Merger Mesa stockholders' interest in the Surviving Corporation is unknown until finalization of the Net Debt Amount and will be a minimum amount of 6% up to 12%. As of Mesa's August 11, 2025 capitalization, the following range of outcomes could result:

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| | | | |
|:---|:---|:---|:---|
|  **(in millions, except per share amounts)** |  |  |  |
|  Mesa shares outstanding as of August 11, 2025 | 41.33 |  |  |
|  Mesa closing stock price as of August 11, 2025 | $1.08 |  |  |
|  Mesa market capitalization as of August 11, 2025 | 44.64 |  |  |
|  Mesa pre-Merger stockholder interest in Surviving Corporation |  | **6%** | **12%** |
|  Surviving Corporation implied market capitalization |  | $744.0 | $372.0 |

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If a Republic securityholder receives the Merger Consideration and would otherwise be entitled to receive a fractional share of Mesa common stock, that securityholder will receive cash (without interest, rounded down to the nearest cent, calculated pursuant to the terms of the Merger Agreement) in lieu of a fractional share, and will not be entitled to dividends, voting rights, or any other rights in respect of the fractional share.

Immediately prior to the Effective Time, each then outstanding RSU award in respect of shares of Republic common stock that has vested in accordance with its terms (including each outstanding Republic RSU that will become vested upon, or immediately before, the Closing) will be cancelled and converted into the right to receive the Merger Consideration in respect of each share of Republic common stock subject to the award (less required tax withholdings).

Immediately prior to the Effective Time, each then outstanding RSU award in respect of shares of Republic common stock that is unvested will be assumed by Mesa and converted into the right to receive an award of restricted shares of Mesa common stock in an amount equal to the number of whole shares of Mesa common stock (rounded up to the next whole share of Mesa common stock) equal to the product obtained by multiplying (x) the Exchange Ratio by (y) the total number of shares of Republic common stock subject to such unvested Republic RSU immediately prior to the Effective Time.

For a more complete description of the treatment of Republic securities in the Merger, please see the sections titled "*The Merger Agreement – Merger Consideration*," beginning on page 138 of this proxy statement/prospectus.

#### Q: What will Mesa securityholders receive in the Merger?
**A:** Each share of Mesa common stock that is issued and outstanding immediately prior to the Effective Time will remain issued and outstanding and such shares will be unaffected by the Merger. Immediately after the Merger, the Pre-Merger Mesa Shareholders are expected to own approximately six percent (6%) of the outstanding shares of the Surviving Corporation on a fully-diluted basis, and former Republic securityholders are expected to own approximately eighty-eight percent (88%) of the outstanding shares of the Surviving Corporation on a fully-diluted basis, subject to certain assumptions. The Pre-Merger Mesa Shareholders may ultimately end up owning up to approximately twelve percent (12%) of the outstanding shares of the Surviving Corporation on a fully-diluted basis immediately after the Merger, subject to the outcome of the Escrow Issuance described immediately below.

Promptly following the Closing (and in all events immediately following the Effective Time), the Surviving Corporation will conduct the Escrow Issuance. The Escrow Asset will be distributed to the Pre-Merger Mesa Shareholders on a pro rata basis to the extent remaining after potential distributions, if any, are made to United Airlines and the Surviving Corporation based on the determination of the Net Debt Amount as of the Closing. See

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the section titled "*Agreements Related to the Merger – The Three Party Agreement*" beginning on page 165 of the accompanying proxy statement/prospectus.

Immediately prior to the Effective Time, (i) any vesting conditions applicable to each Mesa RSU Award and Restricted Stock Award will, automatically and without any required action on the part of the holder thereof, accelerate in full, and (ii) each Mesa RSU Award and Restricted Stock Award will, automatically and without any required action on the part of the holder thereof, be cancelled and entitle the holder of such Mesa RSU Award and Restricted Stock Award to receive (a) the number of shares of Mesa common stock subject to such Mesa RSU Award and Restricted Stock Award immediately prior to the Effective Time and (b) the non-transferrable contingent right to receive a pro rata share of the Escrow Asset distributed pursuant to and in accordance with the Merger Agreement, the Three Party Agreement and the Escrow Agreement, if any.

For a more complete description of the treatment of Mesa securities in the Merger, please see the sections titled "*The Merger Agreement – Merger Consideration*," and "*Market Price and Dividend Information*" beginning on pages 138 and 46, respectively, of this proxy statement/prospectus.

#### Q: Why are the two companies proposing to merge?
Mesa and Republic believe that the proposed Merger will, among other things, significantly enhance the scale of the combined operations (i.e., the Surviving Corporation), both financially and operationally. The Surviving Corporation will operate a larger, unified single fleet type, which is anticipated to create efficiencies through shared inventory and crew resource management all dedicated to the operation of Embraer E175 aircraft. The scale and combined balance sheet of the Surviving Corporation are expected to create an enhanced capital and liquidity position which are expected to augment the financial strength and flexibility of the Surviving Corporation. The Surviving Corporation will operate across both Mesa and Republic's flying networks and routes, and the combination of two long-standing regional carriers brings together complementary networks and operations. These factors, together with synergistic cultures rooted in safety and reliability, and a talented team, position the Surviving Corporation for exciting growth opportunities, and are expected to create value for all stakeholders into the future. For a more complete description of the reasons for the Merger, please see the sections titled "*The Merger – Mesa's Reasons for the Merger*" and "*The Merger – Republic's Reasons for the Merger*" beginning on pages 108 and 111, respectively, of this proxy statement/prospectus. For a description of potential contractual limitations of the Surviving Corporation's operations see the section titled "*Risk Factors – Risks Related to Mesa's Business*" beginning on page 55 of this proxy statement/prospectus.

#### Q: What will happen to Mesa if, for any reason, the Merger with Republic does not close?
**A:** Mesa has invested significant time and incurred, and expects to continue to incur, significant expenses related to the proposed Merger with Republic. In the event the Merger does not close, Mesa will have no alternative but to continue its current operations of flying on behalf of United Airlines under the United CPA. Although Mesa's board of directors may elect, among other things, to attempt to complete another strategic transaction, it may instead take steps to further strengthen its relationship with United Airlines, including the economics and other key terms of the United CPA. Alternatively, Mesa's board of directors could explore winding down and liquidating Mesa's business and assets if a viable alternative strategic transaction is not available. If Mesa decides to dissolve and liquidate its assets, Mesa would be required to pay all of its contractual obligations, and to set aside certain reserves for potential future claims, and there can be no assurance as to the amount of and the timing of such liquidation and distribution, if any, of available cash left to distribute to stockholders after paying the obligations of Mesa and setting aside funds for reserves.

Additionally, failure to complete the Merger under specified circumstances may result in either Mesa or Republic paying a termination fee of $1,500,000 to the other party.

Mesa must pay Republic a termination fee of $1,500,000 under the following circumstances: (i) if Mesa terminates the Merger Agreement before obtaining the Mesa Stockholder Approval in order to enter into an

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alternative acquisition agreement with respect to a superior proposal as provided in the Merger Agreement; (ii) if prior to the time the Mesa Stockholder Approval is obtained, the Mesa board of directors or any committee thereof effects a change of recommendation and Republic terminates the Merger Agreement; and (iii) if (a) the Mesa Stockholder Approval is not obtained at the Mesa Special Meeting and the Merger Agreement is terminated by either party, (b) prior to the Mesa Special Meeting an acquisition proposal by Mesa has been publicly announced, and (c) within twelve months following the termination of the Merger Agreement, Mesa enters into a definitive agreement with respect to a subsequent transaction, or the Mesa board of directors has approved or recommended such an acquisition proposal that is later consummated.

Republic must pay Mesa a termination fee of $1,500,000 under the following circumstances: (i) if Republic terminates the Merger Agreement before obtaining the Republic Stockholder Approval in order to enter into an alternative acquisition agreement with respect to a superior proposal as provided in the Merger Agreement; (ii) if prior to the time the Republic Stockholder Approval is obtained, the Republic board of directors or any committee thereof effects a change of recommendation and Mesa terminates the Merger Agreement; and (iii) if (a) the Republic Stockholder approval has not been obtained by the completion of the Mesa Special Meeting and the Merger Agreement is terminated by either party, (b) prior to the date of the Mesa Special Meeting an acquisition proposal by Republic has been publicly announced and (c) within twelve months following the termination of the Merger Agreement, Republic enters into a definitive agreement with respect to a subsequent transaction, or the Republic board of directors has approved or recommended such an acquisition proposal that is later consummated.

For a more detailed discussion regarding termination and termination fees under the Merger Agreement, please see the section titled "*The Merger Agreement – Termination and Termination Fees*" beginning on page 161 of this proxy statement/prospectus. In addition to the fees associated with termination of the Merger Agreement, certain fees may be incurred by the parties to the Three Party Agreement in connection with termination of the Three Party Agreement. For a more complete discussion regarding termination of the Three Party Agreement, please see the section titled "*Agreements Related to the Merger – The Three Party Agreement – Termination of the TPA*" beginning on page 165 of this proxy statement/prospectus."

#### Q: Why am I receiving this proxy statement/prospectus as a Mesa stockholder?
**A:** You are receiving this proxy statement/prospectus because you have been identified as a stockholder of Mesa as of the applicable record date, and you are entitled to vote to approve the matters set forth herein. This document serves as:

• a proxy statement of Mesa used to solicit proxies for the Mesa Special Meeting to vote on the matters set forth herein; and

• a prospectus of Mesa used to offer (i) shares of Mesa common stock issued in exchange for shares of Republic common stock in the Merger (the "Merger Issuance"), and (ii) the Escrow Shares pursuant to the Escrow Issuance that may be issued to the Pre-Merger Mesa Shareholders issuable immediately following the Effective Time.

This proxy statement/prospectus and the annexes to this proxy statement/prospectus contain important information about the proposed Merger and the proposals to be acted upon at the Mesa Special Meeting. You should read this proxy statement/prospectus and its annexes carefully and in their entirety.

#### Q: What is the Escrow Issuance and how will the Escrow Assets be distributed?
**A:** Pursuant to the Merger Agreement, promptly following the Closing (but in all events immediately following the Effective Time), the Surviving Corporation will conduct the Escrow Issuance equal to six percent (6%) of the issued and outstanding shares of its common stock after completion of the Merger and such issuance. The Escrow Issuance will be deposited with the Escrow Agent and the Escrow Agent will disburse such shares in accordance with the terms of the Merger Agreement, the Three Party Agreement, and the Escrow Agreement.

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If the Net Debt Amount remains a positive number as of the Closing, then the Escrow Assets with an aggregate dollar value equal to the Net Debt Amount will be distributed first to United Airlines to satisfy outstanding debts owed to United Airlines. If any Escrow Assets remain after satisfying the United Entitlement, these Escrow Assets will be distributed to the Surviving Corporation to satisfy certain additional liabilities of the Surviving Corporation, if any. Escrow Assets that remain after satisfying the United Entitlement and the Surviving Corporation Entitlement will be distributed to Pre-Merger Mesa Shareholders, on a pro rata basis to the extent of any remaining. Whether any of the Escrow Asset will ultimately be distributed to the Pre-Merger Mesa Shareholders cannot be estimated at this point in time as it is dependent on both (i) the finally determined Net Debt Amount and (ii) the finally determined Surviving Corporation Stock Value, neither of which will be finally determined until after the Closing, as described in detail in the section titled "*Agreements Related to the Merger –– the Three Party Agreement – Mesa's Delivery of Proposed Final Closing Statement and United Airlines' and the Surviving Corporation's Responses*".

Immediately after the Merger, the Escrow Shares issued in the Escrow Issuance are expected to represent six percent (6%) of the outstanding shares of common stock of the Surviving Corporation on a fully diluted basis. If the stockholders of Mesa approve the Merger Agreement through the Merger Proposal, the Mesa Representative will be irrevocably appointed as each Mesa stockholder's agent, proxy, and attorney-in-fact to represent such Mesa stockholder with respect to all matters arising under the Escrow Agreement and the Three Party Agreement and matters relating to the distribution of the Escrow Asset. For a more complete description of the Mesa Representative, please see the section titled "*The Merger Agreement – Mesa Representative*" beginning on page 164 of this proxy statement/prospectus.

For a more complete description of the Escrow Issuance, please see the sections titled "*The Merger Agreement – The Escrow Issuance*" and "*Agreements Related to the Merger – The Three Party Agreement*" beginning on pages 140 and 165 of this proxy statement/prospectus, respectively.

#### Q: What is the Three Party Agreement?
**A:** On April 4, 2025, concurrently with the execution and delivery of the Merger Agreement, Mesa, Republic, and United Airlines, among other parties, entered into the Three Party Agreement, a copy of which is filed as Exhibit 10.15 to the registration statement of which this proxy statement/prospectus forms a part, pursuant to which Mesa will extinguish certain liabilities, and effectuate certain related transactions; (ii) United Airlines will take certain actions at or prior to the Closing to facilitate Mesa's actions in the foregoing clause (i); (iii) Mesa, following the Closing (and in all events immediately following the Effective Time), will conduct the Escrow Issuance; and (iv) United Airlines will reimburse the Surviving Corporation for certain specified costs and expenses. Pursuant to the Three Party Agreement, certain assets are being sold to reduce the amount of the Net Debt Amount in connection with the Escrow Issuance and the distribution of the Escrow Assets. For a more complete discussion, please see the sections titled "*The Three Party Agreement – Disposition of Assets; Extinguishment of Liabilities*" and "*The Three Party Agreement – Escrow Issuance*" beginning on pages 165 and 166 of this proxy statement/prospectus, respectively.

The Three Party Agreement is one of the Ancillary Agreements under the Merger Agreement. As described in detail in "*The Merger Agreement -- Conditions to the Completion of the Merger*", Mesa's compliance with certain provisions under the Three Party Agreement prior to the closing of the Merger is a condition to Republic's obligation to consummate the closing of the Merger and, in that sense, the Three Party Agreement is interrelated with the Merger Agreement. However, the Mesa stockholders are not being asked to separately approve the Three Party Agreement, as such approval is not required under applicable law.

Concurrently with the execution and delivery of the Merger Agreement, Republic and United Airlines entered into the CPA Side Letter which, among other things, provides for the respective obligations of United Airlines and Mesa to execute and deliver to each other, effective as of immediately following the Effective Time, the capacity purchase agreement attached to the CPA Side Letter (the "Go-Forward CPA").

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For a more complete description of the Three Party Agreement and the Go-Forward CPA, please see the sections titled "*Agreements Related to the Merger – The Three Party Agreement*" beginning on page 165 and *"Republic's Business – Capacity Purchase Agreements with Republic's Partners – United Airlines – Go-Forward CPA"* beginning on page 260 of this proxy statement/prospectus, respectively.

#### Q: What is the anticipated impact to the Surviving Corporation of the Escrow Issuance?
**A:** If the Net Debt Amount remains a positive number as of the Closing, then United Airlines will be entitled to Escrow Assets with an aggregate dollar value equal to the Net Debt Amount.

In the event any Escrow Assets remain after the United Entitlement is satisfied, then the Surviving Corporation will be entitled to the Escrow Assets to satisfy certain additional liabilities.

In the event any Escrow Assets remain after the Surviving Corporation Entitlement is satisfied, the Pre-Merger Mesa Shareholders may receive up to all of the six percent (6%) of the Escrow Shares, which would increase the Pre-Merger Mesa Shareholder's collective ownership of the Surviving Corporation up to approximately twelve percent (12%).

#### Q: What assets are being sold to satisfy the Net Debt Amount, and have the efforts to sell those assets commenced?
**A:** In an attempt to reduce the Net Debt Amount in connection with the Escrow Issuance and the distribution of Escrow Assets under the Three Party Agreement, Mesa is selling certain assets that include airframes, spare engines and miscellaneous spare parts that Republic and Mesa decided are not needed for the operation of the go-forward Surviving Corporation. Mesa started selling its excess assets prior to entering into the Three Party Agreement and thereafter. As of August 12, 2025, Mesa has sold assets totaling $692.7 million in value.

For a more complete discussion, please see the sections titled "*The Three Party Agreement – Disposition of Assets; Extinguishment of Liabilities*" and "*The Three Party Agreement – Escrow Issuance*" beginning on pages 165 and 166 of this proxy statement/prospectus, respectively.

#### Q: What proposals will be voted on at the Mesa Special Meeting in connection with the Merger?
**A:** Pursuant to the terms of the Merger Agreement, the following proposals must be approved by the requisite stockholder vote at the Mesa Special Meeting in order for the Merger to close (the "Merger Proposals"):

• **Proposal No. 1 – The Merger Proposal** to approve the Merger and all transactions contemplated by the Merger Agreement, including the Merger and the conversion of Mesa from a Nevada corporation to a Delaware corporation by means of a conversion, pursuant to the Plan of Conversion;

• **Proposal No. 2 – The Nasdaq Stock Issuance Proposal** to approve the (i) issuance of shares of common stock of Mesa, which will represent more than 20% of the shares of Mesa common stock outstanding immediately prior to the Merger, (a) to stockholders of Republic pursuant to the terms of the Merger Agreement, a copy of which is attached as *Annex A* to this proxy statement/prospectus, and (b) in respect of the Escrow Shares, which shall ultimately be distributed to one or more of United Airlines, the Surviving Corporation, or the Pre-Merger Mesa Shareholders, pursuant to the terms of the Merger Agreement and the Three Party Agreement, and (ii) the change of control arising from the issuance of shares in connection with the Merger and the Escrow Issuance, pursuant to Nasdaq Listing Rules 5635(a) and 5635(b), respectively; and

Approval of each of Proposal Nos. 1 and 2 is a condition to completion of the Merger. The issuance of Mesa common stock in connection with the Merger and the Delaware Conversion will not take place unless Proposal No. 1 is approved by Mesa stockholders and the Merger is consummated.

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In addition to the requirement of obtaining Mesa stockholder approval, the Closing is subject to the satisfaction or waiver of each of the other closing conditions set forth in the Merger Agreement. For a more complete description of the closing conditions under the Merger Agreement, please see the section titled "*The Merger Agreement – Conditions to the Completion of the Merger*" beginning on page 159 of this proxy statement/prospectus.

The presence, in person or being represented by proxy, at the Mesa Special Meeting of the holders of a majority of the shares of Mesa common stock entitled to vote at the Mesa Special Meeting is necessary to constitute a quorum at the meeting for the purpose of approving the Merger Proposals.

#### Q: What proposals are to be voted on at the Mesa Special Meeting, other than the Merger Proposals?
**A:** At the Mesa Special Meeting, the holders of Mesa common stock will also be asked to consider the following proposals:

• **Proposal No. 3 – The Advisory Compensation Proposal** to approve on an advisory basis, certain compensation payments that will or may be made by Mesa to its named executive officers in connection with the Merger;

• **Proposal No. 4 – The Equity Plan Proposal** to approve the 2025 Equity Incentive Plan; and

• **Proposal No. 5 – The Adjournment Proposal** to approve an adjournment of the Mesa Special Meeting, if necessary to solicit additional proxies if there are not sufficient votes cast in favor of Proposal Nos. 1 through 4.

The approvals of Proposal Nos. 3, 4, and 5 are not conditions to the Merger.

The presence, in person or being represented by proxy, at the Mesa Special Meeting of the holders of a majority of the shares of Mesa common stock entitled to vote at the Mesa Special Meeting is necessary to constitute a quorum at the meeting for the purpose of approving the proposals.

#### Q: What stockholder votes are required to approve the proposals at the Mesa Special Meeting?
**A:** The affirmative vote of a majority of votes cast at the Mesa Special Meeting, assuming a quorum is present, is required for approval of Proposal Nos. 2, 3, and 4. The affirmative vote of the holders of a majority of the outstanding shares of Mesa common stock entitled to vote thereon is required for approval of Proposal No. 1. The affirmative vote of a majority of the shares of Mesa common stock entitled to vote at the Mesa Special Meeting, present in person or represented by proxy, is required for approval of Proposal No. 5.

Votes will be counted by the inspector of election appointed for the meeting, who will separately count "FOR" and "AGAINST" votes, abstentions, and broker non-votes. Abstentions and broker non-votes, if any, will be treated as shares present for the purpose of determining the presence of a quorum for the transaction of business at the special meeting. Abstentions and broker non-votes, if any, will have no effect on Proposal Nos. 2, 3, and 4, and will have the effect of a vote "AGAINST" Proposal Nos. 1 and 5.

Stockholders will not vote on the potential reverse stock split, which is described in more detail in the section titled "*The Merger – Reverse Stock Split*" beginning on page 131 of this proxy statement/prospectus.

#### Q: Why is Mesa seeking stockholder approval to issue shares of Mesa common stock to existing stockholders of Republic in the Merger?
**A:** Because Mesa common stock is listed on Nasdaq, Mesa is subject to Nasdaq rules. Nasdaq Listing Rule 5635(a) requires stockholder approval with respect to the issuance of Mesa common stock when, among other instances, (i) the shares to be issued are being issued in connection with the acquisition of the stock or assets of

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another company and are equal to twenty percent (20%) or more of the outstanding shares of Mesa common stock before the issuance, or (ii) any director, officer, or "Substantial Shareholder" (as defined by Nasdaq Listing Rule 5635(e)(3)) of Mesa has a five percent (5%) or greater interest (or such persons collectively have a ten percent (10%) or greater interest), directly or indirectly, in Mesa to be acquired or in the consideration to be paid in the transaction and the issuance of common stock could result in an increase in outstanding common shares or voting power of 5% or more.

Nasdaq Listing Rule 5635(b) also requires stockholder approval when any issuance or potential issuance will result in a "change of control" of the issuer. Although Nasdaq has not adopted any rule on what constitutes a "change of control" for purposes of Rule 5635(b), Nasdaq has previously indicated that the acquisition of, or right to acquire, by a single investor or affiliated investor group, as little as 20% of the common stock (or securities convertible into or exercisable for common stock) or voting power of an issuer could constitute a change of control. Nasdaq will consider all facts and circumstances concerning a transaction, including whether there are any other relationships or agreements between Mesa and the investor or group. Nasdaq Listing Rule 5635(d) also requires stockholder approval for a transaction other than a public offering involving the sale, issuance, or potential issuance by an issuer of common equity securities (or securities convertible into or exercisable for common equity securities) at a price that is less than market value of the stock if the number of equity securities to be issued is or may equal to 20% or more of the common equity securities, or 20% or more of the voting power, outstanding before the issuance.

Mesa expects to issue approximately 671 million shares of Mesa common stock pursuant to the Merger and the Escrow Issuance and the aggregate amount of such shares will represent greater than 20% of its voting stock outstanding before the issuance. Additionally, United Airlines, which is both a Mesa stockholder and a Republic stockholder, qualifies as a "Substantial Shareholder" (as defined by Nasdaq Listing Rule 5635(e)(3)) of Mesa and the issuance of common stock could result in an increase in outstanding common shares or voting power of 5% or more. Accordingly, Mesa is seeking stockholder approval of the issuance pursuant to the Merger Agreement under Nasdaq Listing Rule 5635(a). Further, it is expected that Nasdaq will determine that the Merger constitutes a "change of control" of Mesa as United Airlines, a Mesa stockholder, will acquire over 20% of the common stock of Mesa in the Merger. Accordingly, Mesa is also seeking stockholder approval of the change of control arising from the issuance of shares in connection with the Merger and the Escrow Issuance under Nasdaq Listing Rule 5635(b).

#### Q: Will the common stock of the Surviving Corporation trade on an exchange?
**A:** Shares of Mesa common stock are currently listed on Nasdaq under the symbol "MESA." Mesa and Republic will prepare and submit to Nasdaq an initial listing application and will use their reasonable best efforts to cause shares of Mesa common stock issued in the Merger to be authorized for listing on Nasdaq, at or prior to the Closing. At the Effective Time, Mesa will be renamed Republic Airways Holdings Inc. and it is expected that, after the completion of the Merger, the common stock of the Surviving Corporation will trade on Nasdaq under the symbol "RJET." It is a condition to the consummation of the transactions contemplated by the Merger Agreement, including the Merger, that at or prior to the Closing, the shares of Mesa Common Stock issuable in the Merger will have been approved for listing on Nasdaq, but there can be no assurance such listing condition will be met. If such listing condition is not met, the transactions contemplated by the Merger Agreement, including the Merger, will not be consummated unless the condition is waived. The Nasdaq condition set forth in the Merger Agreement is not expected to be waived by the applicable parties. See "*Risk Factors – Risks Related to the Ownership of the Common Stock of the Surviving Corporation – Upon completion of the Merger, failure by the Surviving Corporation to comply with the initial listing standards of Nasdaq will prevent its stock from being listed on Nasdaq.*"

On , 2025, the last trading day before the date of this proxy statement/prospectus, the closing sale price of Mesa common stock was $ per share.

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#### Q: Who will be the directors of the Surviving Corporation following the Merger?
**A:** Immediately following the Merger, the Surviving Corporation's board of directors will be composed of seven (7) members, (i) six (6) of whom will have been designated by Republic prior to the Merger, including a chair of the Surviving Corporation, and (ii) one (1) of whom shall be Ellen Artist, a current director of Mesa, or such other director who may be proposed by Mesa and agreed upon by Republic in its sole discretion, prior to the Merger. It is currently contemplated that the Republic designees will be: David Grizzle, Glenn S. Johnson, Michael C. Lenz, Ruth Okediji, Barry W. Ridings, and James E. Sweetnam. David Grizzle is expected to be appointed as Chairman of the board of directors of the Surviving Corporation. For additional information, please see the section titled "*Management Following the Merger*" beginning on page 329 of this proxy statement/prospectus.

#### Q: Who will be the executive officers of the Surviving Corporation immediately following the Merger?
**A:** Immediately following the Merger, the executive management team of the Surviving Corporation is expected to consist of members of the Republic executive management team prior to the Merger, including:

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| | |
|:---|:---|
| **Name** | **Title** |
|  David Grizzle | Chief Executive Officer and Chairman of the Board |
|  Matthew J. Koscal | President and Chief Commercial Officer |
|  Joseph P. Allman | Senior Vice President and Chief Financial Officer |
|  Paul K. Kinstedt | Senior Vice President and Chief Operating Officer |
|  Chad M. Pulley | Senior Vice President, General Counsel, and Secretary |

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#### Q: Why am I being asked to vote on executive officer compensation?
**A:** The SEC has adopted rules that require Mesa to seek a non-binding advisory vote on certain compensation that may be paid or become payable to Mesa's named executive officers that is based on or otherwise relates to the Merger. For additional information regarding the non-binding compensation advisory proposal, see the section entitled "*Proposal No. 3 — Advisory Compensation Proposal*" beginning on page 236. Mesa urges its stockholders to read the section entitled "*The Merger — Interests of Mesa Directors and Executive Officers in the Merger*" beginning on page 121.

#### Q: What happens if the non-binding compensation proposal is not approved by Mesa stockholders?
**A:** This vote is advisory and non-binding, and the Merger is not conditioned or dependent upon the approval of the non-binding compensation proposal by Mesa stockholders. However, Mesa and Republic value the opinions of Mesa stockholders and Mesa expects to consider the outcome of the vote, along with other relevant factors, when considering future executive compensation, assuming the Merger is completed. Because the executive compensation to be paid in connection with the Merger is based on the terms of the Merger Agreement as well as the contractual arrangements with Mesa's named executive officers, such compensation will be payable regardless of the outcome of this advisory vote, if the Merger Proposal is approved and the Merger is consummated (subject only to the contractual conditions applicable thereto). However, Mesa seeks the support of its stockholders and believes that stockholder support is appropriate given the nature of the transaction and the structure of Mesa's executive compensation program.

#### Q: As a Mesa stockholder, how does Mesa's board of directors recommend that I vote?
**A:** Mesa's board of directors, in consultation with financial and legal advisors and management, evaluated the terms of the Merger Agreement and the related transactions contemplated thereby and: (i) determined that the Merger and the transactions contemplated by the Merger Agreement are advisable, fair to, and in the best interests of Mesa and its stockholders; (ii) approved and declared advisable the Merger Agreement and the transactions contemplated thereby; and (iii) recommends that Mesa's stockholders vote "FOR" each of the Proposals. For more information, please see the section titled "*The Merger – Mesa's Reasons for the Merger*" beginning on page 108 of this proxy statement/prospectus.

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#### Q: What risks should I consider in deciding whether to vote in favor of the Merger?
**A:** You should carefully review the section titled "*Risk Factors*" beginning on page 47 of this proxy statement/ prospectus and the documents incorporated by reference herein, which set forth certain risks and uncertainties related to the Merger, risks and uncertainties to which the Surviving Corporation's business will be subject, and risks and uncertainties to which each of Mesa and Republic, as independent companies, are subject.

#### Q: When do you expect the Merger to be consummated?
**A:** The Merger is anticipated to close in the second half of 2025, but the exact timing cannot be predicted. Certain conditions must be satisfied or waived before the Merger can be completed, including the expiration of the waiting period under the HSR Act, which occurred on June 16, 2025 with respect to the filings made by Mesa and Republic.

If the Merger does not become effective by 5:00 p.m. Eastern on January 5, 2026, the "Outside Date," either Mesa or Republic may terminate the Merger Agreement and abandon the Merger; provided, that if as of the Outside Date, a Governmental Entity has enacted, issued, promulgated, enforced, or entered any Competition Laws or Aviation Approvals, that have the effect of making illegal, enjoining, or otherwise restraining or prohibiting the consummation of the transactions contemplated under the Merger Agreement, or the parties have not received the Aviation Approvals, then the Outside Date will automatically be extended to April 6, 2026, and such extended date will be deemed to be the Outside Date.

For more information, please see the section titled "*The Merger Agreement – Conditions to the Completion of the Merger*" beginning on page 159 of this proxy statement/prospectus.

#### Q: How will the Delaware Conversion affect the rights of Surviving Corporation stockholders?
**A:** The rights of Mesa stockholders are currently governed by Nevada law and the provisions of the Mesa Charter and Mesa's second amended and restated bylaws, as amended. As a result of the Delaware Conversion, Mesa stockholders will become a stockholder of the Surviving Corporation with rights governed by Delaware law and the provisions of the certificate of incorporation and the bylaws of the Surviving Corporation, which differ in certain respects from the current rights of Mesa stockholders. These important differences are discussed and summarized in this proxy statement/prospectus under "*Proposal No. 1 – The Merger Proposal – The Delaware Conversion – Rights of Mesa Stockholders Prior to and After the Conversion from the State of Nevada to the State of Delaware"* beginning on page 207 of this proxy statement/prospectus. Forms of the Surviving Corporation's charter and bylaws are available as exhibits to the registration statement of which this proxy statement/prospectus forms a part.

#### Q: What are the material U.S. federal income tax consequences of the Delaware Conversion to the Surviving Corporation stockholders?
**A:** Subject to the limitations and qualifications described in the section titled "*Proposal No. 1 – The Merger Proposal – The Delaware Conversion – Material U.S. Federal Income Tax Consequences of the Delaware Conversion*" beginning on page 206 of this proxy statement/prospectus, Mesa intends that the Delaware Conversion qualify as a "reorganization" within the meaning of Section 368(a) of the Code. Assuming the Delaware Conversion so qualifies, a U.S. Holder (as defined below) of Mesa common stock will not recognize gain or loss upon the Delaware Conversion. For a more detailed discussion of the material U.S. federal income tax consequences of the Delaware Conversion, see the section titled "*Proposal No. 1 – The Merger Proposal – The Delaware Conversion – Material U.S. Federal Income Tax Consequences of the Delaware Conversion*" beginning on page 206 of this proxy statement/prospectus.

#### Q: What do I need to do now?
**A:** Mesa urges you to read this proxy statement/prospectus carefully and in its entirety, including the annexes and the documents incorporated by reference, and to consider how the Merger affects you.

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*Stockholder of Record: Shares Registered in Your Name* 

If you are a stockholder of record on the record date, you may vote in person at the Mesa Special Meeting, vote by proxy over the telephone, vote by proxy through the Internet or vote by proxy using a proxy card, the form of which is attached as *Annex C* to this proxy statement/prospectus. Whether or not you plan to attend the meeting, Mesa urges you to vote by proxy to ensure your vote is counted. You may still attend the meeting and vote in person even if you have already voted by proxy.

• To vote in person, come to the special meeting and Mesa will give you a ballot when you arrive.

• To vote using the proxy card, simply complete, sign, and date the proxy card that you may request or that Mesa may elect to deliver at a later time and return it promptly in the envelope provided. If you return your signed proxy card to Mesa before the special meeting, Mesa will vote your shares as you direct.

• To vote over the telephone, dial toll-free using a touch-tone phone and follow the recorded instructions. You will be asked to provide the company number and control number found on the proxy card. Your vote must be received by 11:59 p.m. Eastern Time on     , 2025 to be counted.

• To vote through the Internet, go to complete an electronic proxy card. You will be asked to provide the company number and control number from the proxy card. Your vote must be received by 11:59 p.m. Eastern Time on     , 2025 to be counted.

*Beneficial Owner: Shares Registered in the Name of Broker, Bank or Other Agent* 

If you are a beneficial owner of shares registered in the name of your broker, bank, or other agent, you should have received voting instructions from that organization rather than from Mesa. Simply follow the voting instructions provided to ensure that your vote is counted. You may vote by telephone or over the Internet as instructed by your broker, bank, or other agent. To vote in person at the Mesa Special Meeting, you must contact your broker, bank, or other agent and obtain a valid legal proxy in order to attend, participate in, and vote at the Mesa Special Meeting. Follow the voting instructions from your broker, bank or other agent, or contact your broker, bank, or other agent for instructions.

#### Q: What happens if I do not return a proxy card or otherwise vote or provide proxy instructions, as applicable?
**A:** If you are a Mesa stockholder, the failure to return your proxy card or otherwise vote or provide proxy instructions will reduce the aggregate number of votes required to approve Proposal Nos. 2, 3, and 4, and will have the effect of a vote "AGAINST" Proposal Nos. 1 and 5.

#### Q: May I attend the Mesa Special Meeting and vote in person?
**A:** Stockholders of record as of , 2025 will be able to attend and participate in the Mesa Special Meeting in person.

#### Q: Who counts the votes?
**A:** Computershare has been engaged as Mesa's independent agent to tabulate stockholder votes, which Mesa refers to as the inspector of election. If you are a stockholder of record, your executed proxy card is returned directly to Computershare for tabulation. If you hold your shares through a broker, your broker returns one proxy card to Computershare on behalf of all its clients.

#### Q: If my Mesa shares are held in "street name" by my broker, will my broker vote my shares for me?
**A:** If you hold shares beneficially in street name and you do not instruct your broker, bank or other agent how to vote your shares, your broker, bank, or other agent will only be able to vote your shares with respect to proposals

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considered to be "routine." Your broker, bank, or other agent is not entitled to vote your shares with respect to "non-routine" proposals, resulting in a "broker non-vote" with respect to such proposals. Accordingly, if you hold your shares beneficially in street name, please be sure to instruct your broker, bank or other agent how to vote to ensure that your vote is counted on each of the proposals, following the procedures provided by your broker, bank, or other agent. Proposal Nos. 1 through 5 will be considered "non-routine" and therefore your broker will not be able to vote your shares with respect to these proposals unless the broker receives specific voting instructions from you.

#### Q: What are broker non-votes and do they count for determining a quorum?
**A:** Generally, a "broker non-vote" occurs when shares held by a broker are not voted with respect to a particular proposal because the broker has not received voting instructions from its clients with respect to such shares on how to vote and does not have or did not exercise discretionary authority to vote on the matter.

Broker non-votes, if any, will be treated as shares present for the purpose of determining the presence of a quorum for the transaction of business at the Mesa Special Meeting. Broker non-votes, if any, will not be counted as "votes properly cast" or "shares entitled to vote" and will therefore have no effect on Proposal Nos. 2, 3, and 4, and will have the effect of a vote "AGAINST" Proposal Nos. 1 and 5.

#### Q: May I revoke and/or change my vote after I have submitted a proxy or provided proxy instructions?
**A:** Mesa stockholders of record, unless such stockholder's vote is subject to a support agreement, may revoke and/or change their vote at any time before their proxy is voted at the Mesa Special Meeting in one of four ways:

• You may submit another properly completed proxy with a later date by mail or via the internet.

• You can provide your proxy instructions via telephone at a later date.

• You may send an instrument in writing revoking the proxy or another duly executed proxy bearing a later date to Mesa's corporate secretary. Any written notice of revocation or subsequent proxy card must be received by Mesa's corporate secretary prior to the taking of the vote at the Mesa Special Meeting. Such written notice of revocation or subsequent proxy card should be sent to Mesa's principal executive offices at Mesa Air Group, Inc., 410 North 44th Street, Suite 700, Phoenix, Arizona 85008, Attention: Corporate Secretary.

• You may attend the Mesa Special Meeting and vote in person, although attendance at the Mesa Special Meeting will not, by itself, revoke, and/or change your proxy.

Your signed proxy card, telephonic proxy instructions, internet proxy instructions, or written notice must be received by , 2025, 11:59 p.m. Eastern Time to be counted.

If a Mesa stockholder who owns Mesa shares in "street name" has instructed a broker to vote its shares of Mesa common stock, the stockholder must follow directions received from its broker to change and/or revoke those instructions.

#### Q: Who is paying for this proxy solicitation?
**A:** Republic will pay, on Mesa's behalf, the SEC filing fees of this proxy statement/prospectus and the proxy card. Mesa will pay the cost of printing this proxy statement/prospectus and the proxy card. Arrangements will also be made with brokerage firms and other custodians, nominees, and fiduciaries who are record holders of Mesa common stock for the forwarding of solicitation materials to the beneficial owners of Mesa common stock. Mesa will reimburse these brokers, custodians, nominees, and fiduciaries for the reasonable out-of-pocket expenses they incur in connection with the forwarding of solicitation materials.

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#### Q: What are the material U.S. federal income tax consequences of the Merger to U.S. Holders of Mesa common stock?
**A:** Mesa stockholders will not sell, exchange, or dispose of any shares of Mesa common stock as a result of the Merger. Thus, there will be no material U.S. federal income tax consequences to Mesa stockholders as a result of the Merger.

#### Q: What are the material U.S. federal income tax consequences of the Merger to U.S. Holders of Republic common stock?
**A:** Subject to the limitations and qualifications described in the section titled "*The Merger – Material U.S. Federal Income Tax Consequences of the Merger*" beginning on page 128 of this proxy statement/prospectus, each of Republic and Mesa intends that the Merger qualify as a "reorganization" within the meaning of Section 368(a) of the Code. Assuming the Merger so qualifies, a U.S. Holder of Republic common stock will not recognize gain or loss upon the receipt of Mesa common stock in exchange for surrendering its Republic common stock in the Merger. For a more detailed discussion of the material U.S. federal income tax consequences of the Merger, please see the section titled "*The Merger – Material U.S. Federal Income Tax Consequences of the Merger*" beginning on page 128 of this proxy statement/prospectus.

#### Q: Who can help answer my questions?
**A:** If you are a Mesa stockholder and would like additional copies of this proxy statement/prospectus without charge or if you have questions about the Merger or related matters, including the procedures for voting your shares, you should contact:

Mesa Air Group, Inc.

410 North 44th Street, Suite 700

Phoenix, AZ 85008

Attn: Investor Relations

Telephone: (602) 685-4000

Email: Legal@mesa-air.com

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#### PROSPECTUS SUMMARY
*This summary highlights selected information from this proxy statement/prospectus and may not contain all of the information that is important to you. To better understand the Merger and the proposals being considered at the Mesa Special Meeting, you should read this entire proxy statement/prospectus carefully, including the Merger Agreement and the other annexes to which you are referred in this proxy statement/prospectus, and the documents incorporated by reference therein. For more information, please see the section titled "Where You Can Find More Information" beginning on page 383 of this proxy statement/prospectus. Except where specifically noted, the following information and all other information contained in this proxy statement/prospectus does not give effect to any reverse stock split.* 

#### The Companies
**Mesa Air Group, Inc.** 

410 North 44th Street, Suite 700

Phoenix, AZ 85008

(602) 685-4000

Headquartered in Phoenix, Arizona, Mesa is the holding company of Mesa Airlines, a regional air carrier providing scheduled passenger service to 79 cities in 31 states, Cuba, and Mexico. As of June 30, 2025, Mesa operated a fleet of 60 Embraer E175 regional aircraft with approximately 254 daily departures. As of June 30, 2025, Mesa also had 21 CRJ-900 airframes and 34 CRJ-900 engines held for sale. The aircraft in Mesa's fleet were operated as United Express pursuant to the terms of the United CPA. Except as set forth in the following sentence, all of Mesa's consolidated contract revenues for the three and nine months ended June 30, 2025 and June 30, 2024 were derived from operations associated with the United CPA, leases of aircraft to a third party, and MPD. Revenues during the nine months ended June 30, 2024 also included $7.2 million in revenues derived from the DHL FSA, which terminated in March 2024. Additionally, Mesa's leases of aircraft to a third party terminated upon the sale of such aircraft to United Airlines during the nine months ended June 30, 2025.

During fiscal year 2024, Mesa's fleet operated under the United CPA and the DHL FSA. Mesa operates all of its flights as United Express flights pursuant to the United CPA. Prior to the voluntary wind-down of the DHL FSA agreed to with DHL on March 1, 2024, Mesa also operated flights as DHL Express flights pursuant to the terms of the DHL FSA. Mesa's consolidated contract revenues for the twelve months ended September 30, 2024 and September 30, 2023 were derived primarily from operations associated with the United CPA (97% of revenue). Mesa also generated contract revenues for the twelve months ended September 30, 2023 from Mesa's CPA with American Airlines prior to the wind-down and termination of Mesa's CPA with American Airlines on April 3, 2023. In fiscal 2023 and 2024, Mesa carried passengers on more than 103,675 and 97,619 flights generating revenues of $498.1 million and $476.4 million and pre-tax loss of $84.3 million and $65.8 million, respectively. During the nine months ended June 30, 2024 and 2025, Mesa carried passengers on more than 74,089 and 63,407 flights, generating revenues of $361.2 million and $290.8 million and pre-tax loss of $66.0 million and $158.2 million, respectively.

The United CPA provides Mesa with guaranteed monthly revenue for each aircraft under contract, a fixed fee for each block hour (the number of hours during which the aircraft is in revenue service, measured from the time of gate departure before take-off until the time of gate arrival at the destination), and flights actually flown, and reimbursement of certain direct operating expenses in exchange for providing regional flying on behalf of United Airlines. The United CPA also shelters Mesa from many of the elements that cause volatility in airline financial performance, including fuel prices, variations in ticket prices, and fluctuations in number of passengers. In providing regional flying under the United CPA, Mesa uses the logos, service marks, flight crew uniforms, and aircraft paint schemes of United Airlines. United Airlines controls route selection, pricing, seat inventories, marketing and scheduling, and provides Mesa with ground support services, airport landing slots, and gate access.

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Regional aircraft are optimal for short- and medium-haul scheduled flights that connect outlying communities with larger cities and act as "feeders" for domestic and international hubs. In addition, regional aircraft are well suited to serve larger city pairs during off-peak times when load factors on larger jets are low. The lower trip costs and operating efficiencies of regional aircraft, along with the competitive nature of the CPA bidding process, provide significant value to major airlines.

Mesa common stock traded on the Nasdaq Global Select Market under the symbol "MESA" from August 10, 2018 to May 6, 2024. On such date, Mesa common stock began trading on the Nasdaq Capital Market. Prior to August 10, 2018, there was no public market for Mesa common stock.

#### Republic Airways Holdings Inc.
8909 Purdue Road, Suite 300

Indianapolis, IN 46268

(317) 484-6000

Republic is the second largest independent regional airline in the United States based on total fleet and daily departures. As of June 30, 2025, Republic had a fleet of 245 regional jet aircraft that regularly provides scheduled passenger service on approximately 1,100 daily flights to over 90 cities in the United States, Canada, and the Caribbean. All of Republic's flights are operated under multi-year CPAs with Republic's Partners. Republic exclusively operates the dual class Embraer E170/175 family of aircraft and is one of the world's largest operators of that popular aircraft type. Under its CPAs, Republic provides substantially all of its flight capacity to Republic's Partners. Republic's compensation is not materially or immediately affected by variations in airfares or passenger load factors, nor by variations in the price of fuel, the cost of which is paid directly by Republic's Partners. In 2023 and 2024, Republic carried passengers on more than 308,000 and 323,000 flights, generating revenues of $1,429.1 million and $1,474.0 million and pre-tax income of $88.0 million and $86.9 million, respectively. During the six months ended June 30, 2024 and 2025, Republic carried passengers on more than 153,000 and 176,000 flights, generating revenues of $712.2 million and $800.4 million and pre-tax income of $38.3 million and $87.3 million, respectively.

All of Republic's flights operate under the American Eagle, Delta Connection, or United Express brands. Since the beginning of 2017, Republic has won additional regional flying from all three of Republic's Partners, expanding its total fleet from 175 to 245 aircraft. These aircraft are dedicated to Republic's Partners under long-term commitments.

**The Merger** (see page 101)

Subject to the satisfaction or waiver of the closing conditions set forth in the Merger Agreement, at the Effective Time, Republic will merge with and into Mesa, the separate corporate existence of Republic will cease and Mesa will continue as the Surviving Corporation. Pursuant to the Merger Agreement, prior to the Effective Time, Mesa will convert from a corporation existing under the laws of the State of Nevada to a corporation existing under the laws of the State of Delaware.

**Mesa's Reasons for the Merger** (see page 108)

After consideration and consultation with Mesa's management, consultants and advisors, outside legal counsel, and financial advisor, the Mesa board of directors determined that the Merger Agreement, the Merger, and other transactions contemplated thereby are advisable and in the best interests of Mesa and its stockholders. The Mesa board of directors considered various reasons to reach its determination. For example:

• The expectation that the Merger would create a larger, better capitalized company with complementary services and a strengthened U.S. and international commercial reach;

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• The expectation that the Surviving Corporation will be better positioned to pursue a more aggressive growth strategy in comparison to Mesa on a stand-alone basis as a result of the Surviving Corporation's larger scale, larger market capitalization, enhanced access to capital over the short-term and long-term and likelihood of increased access to business development opportunities as a result of its larger market presence;

• The current and prospective competitive climate in the airline industry (and for regional airlines in particular), including regulatory, financial, economic, and other challenges facing industry participants, and the belief that the Surviving Corporation, in light of its larger scale, strong balance sheet, more comprehensive service offerings, and market presence, will be better positioned to meet these challenges;

• The fact that Mesa stockholders will own approximately six percent (6%) of the Surviving Corporation immediately following completion of the Merger, with the prospect of owning up to an additional six percent (6%) subject to certain contingencies set forth in the Merger Agreement and the Three Party Agreement;

• The fact that the number of shares of Mesa common stock issuable in exchange for shares of Republic common stock is fixed, which provides certainty to Mesa stockholders as to their approximate aggregate pro forma percentage ownership of the Surviving Corporation and will not fluctuate based upon changes in the market price of shares of Mesa common stock or shares of Republic common stock between the date of the Merger Agreement and the Closing Date;

• The potential opportunity for Mesa stockholders to participate in a larger, better capitalized and stronger company (both financially and operationally), post-Closing, and the potential to realize the long-term benefit of the Surviving Corporation's future profitability;

• The content of the fairness opinion provided by FTICA, including FTICA's conclusion regarding the fairness, from a financial point of view, of the Exchange Ratio to the Mesa Legacy Shareholders, assuming that the Mesa Legacy Shareholders collectively will hold 6% or more of Mesa common stock on a fully diluted basis as a consequence of the Merger;

• The fact that Mesa, together with its advisors, over a lengthy period of time, explored strategic alternatives, giving due regard to the requirement that Mesa's sole code share partner, United Airlines, would have the right to consent to the Merger or any other similar business combination transaction under consideration pursuant to contractual provisions;

• The fact that the increased rates payable to Mesa under its United CPA expire in March 2026. In addition, the termination date for the first 30 of Mesa's E175 aircraft is March 31, 2026. Thereafter, additional aircraft begin rolling off the United CPA on July 1, 2027, and continue to roll off until the final aircraft rolls off on November 30, 2028. Without further material modifications to the rates and the term of the aircraft operating under the United CPA, Mesa's outlook and prospects remained unclear;

• Mesa's business, financial condition, including debt obligations, historical and projected financial performance, competitive position, assets, and future prospects as a standalone company;

• The expectation that the Merger will result in greater value to Mesa stockholders than the value that could be expected to be generated from the various other strategic alternatives available to Mesa or from Mesa remaining as a standalone company;

• The fact that the Merger is intended to qualify as a tax-free reorganization for United States federal income tax purposes;

• Mesa's knowledge of Republic's business, operations, including the operation of a single fleet type (i.e., E175 aircraft), operating results, financial condition, strategy, and future prospects taking into account the results of Mesa's due diligence review of Republic;

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• The fact that, subject to compliance with the terms and conditions of the Merger Agreement, Mesa is permitted to furnish information to and conduct negotiations with third parties that make unsolicited acquisition proposals and, subject to payment of a termination fee, terminate the Merger Agreement in order to accept a superior proposal;

• The expectation that the Merger will be consummated, based on, among other things, the limited number of conditions to the Merger and the commitment made by parties to cooperate and use reasonable best efforts to obtain regulatory clearances, including under the HSR Act. The waiting period under the HSR Act with respect to the filings made by Mesa and by Republic expired on June 16, 2025;

• The possibility of continuing to pursue Mesa's long-term business plan as an independent public company as an alternative means of creating stockholder value, and the business, financial, market, and execution risks and uncertainties of such alternative as to the realization of Mesa's strategic goals and the future value of Mesa's shares;

• The fact that Mesa stockholders will own a materially smaller percentage in the Surviving Corporation than Mesa stockholders own in Mesa currently;

• The difficulty and costs inherent in the combination of two businesses of the size and complexity of Mesa and Republic and the risk that the cost savings, synergies, and other benefits expected to be obtained as a result of the Merger might not be fully or timely realized;

• The fact that the number of shares of Mesa common stock issuable in exchange for shares of Republic common stock is fixed and will not adjust to compensate for changes in the price of shares of Mesa common stock prior to the consummation of the Merger;

• The fact that certain provisions of the Merger Agreement, although reciprocal, may have the effect of discouraging alternative business combination transactions involving Mesa, including restrictions on Mesa's ability to solicit proposals for alternative transactions, and the requirement that Mesa pay a termination fee to Republic in certain circumstances following the termination of the Merger Agreement;

• The restrictions on the conduct of Mesa's business during the pendency of the Merger, which may delay or prevent Mesa from undertaking potential business opportunities that may arise;

• The adverse impact that business uncertainty prior to the Effective Time of the Merger could have on Mesa's and Republic's ability to attract, retain, and motivate key personnel until the Effective Time;

• The outside termination date in the Merger Agreement and the fact that there can be no assurance that the conditions in the Merger Agreement will be satisfied and, as a result, the Merger may not be consummated and the potential consequences of non-consummation, including the potential negative impacts on Mesa, its business, the trading price of Mesa's shares, and Mesa's ability to attract and retain key management personnel and employees;

• The risk that regulatory agencies may not approve the Merger or may impose terms and conditions on their approvals that adversely affect the business and financial results of the Surviving Corporation;

• The time, effort and substantial costs involved in connection with entering into the Merger Agreement and completing the Merger and the related disruptions to the operation of Mesa's business, including the risk of diverting management's attention from other strategic priorities to implement Merger integration efforts, and the risk that the operations of Mesa would be disrupted by employee concerns or departures or by changes to or termination of Mesa's relationships with its key third party relationships following the public announcement of the Merger;

• The fact that Mesa has incurred and will continue to incur significant transaction costs and expenses in connection with the Merger, regardless of whether the Merger is consummated;

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• The risk that if the Merger Agreement is terminated that Mesa may be unable to meet its obligations under its existing debt agreements, resulting in an event of default and the acceleration in full of the amounts outstanding thereunder; and

• The risk that Mesa stockholders or the Republic stockholders may fail to approve the Merger.

**Republic's Reasons for the Merger** (see page 111)

In the course of reaching its decision to approve the Merger Agreement and the other transaction agreements and the transactions contemplated thereby, including the Merger, Republic's board of directors held numerous meetings, consulted with Republic's senior management and outside legal counsel, and considered a wide variety of factors, including the following factors which it viewed as supporting its decision (which factors are not necessarily presented in any order of relative importance):

• the Merger will potentially expand the access to capital and the range of investors available as a public company, compared to the capital and investors Republic could otherwise gain access to if it continued to operate as a privately-held company;

• the potential benefits from increased public market awareness of Republic;

• the historical and current information concerning Republic's business, including its financial performance and condition, operations, and management;

• the complementary nature of Mesa's operations and the expected combined financial results and operating plans, along with the management structure of the combined company, including the appointment of certain Republic executive officers and non-employee directors to the combined company;

• the shares of Mesa common stock issued to Republic stockholders will be registered on a Form S-4 registration statement and will become freely tradable for Republic stockholders who are not affiliates of Republic and who are not parties to lock-up agreements;

• the enhanced scale of the combined company, both financially and operationally, including a larger unified fleet of aircraft, broader flying networks and enhanced crew resource management;

• the entry of the combined company and United into a new 10-year capacity purchase agreement;

• the terms and conditions of the Merger Agreement and the Three Party Agreement;

• the possibility that the Merger might not be completed, or that its completion may be delayed;

• the potential effect of the termination fee of $1.5 million payable to Mesa under certain circumstances;

• the possibility that Mesa could consider certain unsolicited acquisition proposals;

• the regulatory approvals required to complete the Merger and the potential length of the regulatory approval process;

• the cost, time, and effort involved in connection with completing the Merger, related disruptions, or potential disruptions to Republic's business and related administrative challenges associated with combining the companies; and

• the additional expenses and obligations to which Republic's business will be subject following the Merger as a public company.

**Interests of Mesa Directors and Executive Officers in the Merger** (see page 121)

In considering the recommendation of the Mesa board of directors with respect to issuing shares of Mesa common stock in the Merger and the other matters to be acted upon by the Mesa stockholders at the Mesa

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Special Meeting, Mesa stockholders should be aware that Mesa's directors and executive officers have interests in the Merger that are different from, or in addition to, the interests of Mesa's stockholders generally. Interests of the directors and executive officers may be different from or in addition to the interests of the stockholders for the following reasons, among others:

• Under the Merger Agreement, Mesa's directors and executive officers are entitled to continued indemnification, and insurance coverage for a period of six (6) years from and after the Effective Time.

• In connection with the Merger, each then outstanding RSU award and Restricted Stock Award in respect of shares of Mesa common stock (including those held by Mesa's executive officers and directors), whether vested or unvested, will accelerate in full and then be cancelled and converted into the right to receive (i) the number of shares of Mesa common stock subject to such awards immediately prior to the Effective Time, and (ii) the non-transferrable contingent right to receive a pro rata share of the Escrow Asset distributed pursuant to and in accordance with the Merger Agreement, the Three Party Agreement and the Escrow Agreement if any. As of the date of this proxy statement/prospectus, there are 961,690 Restricted Stock Awards outstanding.

• In connection with entering into the Merger Agreement, each of Jonathan G. Ornstein, Mesa's Chief Executive Officer, Michael J. Lotz, Mesa's President and Chief Financial Officer, and Brian S. Gillman, Mesa's Executive Vice President, General Counsel and Secretary, entered into a Separation and Consulting Agreement, General Release of Claims and Covenant not to Sue with Mesa (the "Separation and Consulting Agreements"), pursuant to which each individual will receive fees in exchange for consulting services to be provided to the Surviving Corporation for a period of two (2) years and certain other benefits, along with lump sum payment payable at the end of the two (2) year consulting period in consideration for the agreement to the restrictive covenant set forth therein.

• Ellen Artist, a current director of Mesa, will continue to serve as a director of the Surviving Corporation board of directors following the Merger.

These interests are discussed in more detail in the section titled "*The Merger – Interests of Mesa Directors and Executive Officers in the Merger*" beginning on page 121 of this proxy statement/prospectus. The members of Mesa's board of directors were aware of and considered these interests, among other matters, in evaluating, and negotiating the Merger Agreement and the Merger, and in recommending to the stockholders that the Merger Proposals be approved.

**Interests of Republic Directors and Executive Officers in the Merger** (see page 125)

In considering the recommendation of the Republic board of directors with respect to its approval of the Merger Agreement, the Merger and the other transactions contemplated thereby, stockholders should be aware that Republic's directors and executive officers may have interests in the Merger that are deemed different from, or in addition to, those of Republic's stockholder's generally. These interests may present them with actual or potential conflicts of interest, and these interests, to the extent they may be deemed material, are described below:

• Certain of Republic's directors and executive officers are expected to become the directors and executive officers of the Surviving Corporation upon the Closing;

• Under the Merger Agreement, Republic's directors and executive officers are entitled to continued indemnification, expense reimbursement and insurance coverage for a period of six (6) years from and after the Effective Time;

• In connection with the Merger, (i) each outstanding Republic RSU that has vested will be cancelled and converted into the right to receive shares of Republic common stock, which will be converted into Mesa common stock and (ii) each then outstanding Republic RSU that is unvested will be assumed by

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Mesa and converted into the right to receive an award of restricted shares of Mesa common stock in an amount equal to the number of whole shares of Mesa common stock (rounded up to the next whole share) equal to the product obtained by multiplying (x) the Exchange Ratio by (y) the total number of shares of Republic common stock subject to such unvested Republic RSU immediately prior to the Effective Time. <br>

Republic's board of directors was aware of these interests and considered them, among other matters, in reaching the decision to approve the Merger Agreement and the Merger, and to recommend that the Republic stockholders approve the Merger.

**Opinion of Mesa's Financial Advisor** (see page 116)

Mesa instructed FTICA to render an opinion to Mesa's board of directors as to the fairness to the Mesa Legacy Shareholders, from a financial point of view, of an exchange ratio of 636.00 in the Merger assuming that the Mesa Legacy Shareholders collectively will hold 6% or more of Mesa common stock on a fully diluted basis as a consequence of the Merger. On March 17, 2025, FTICA rendered to the Mesa board of directors its oral opinion, which was subsequently confirmed by delivery of a written opinion to the Mesa board of directors dated March 17, 2025, that, as of such date and based upon and subject to the various assumptions made, and the qualifications and limitations upon the review undertaken by FTICA in preparing its opinion, an exchange ratio of 636.00 in the Merger assuming that the Mesa Legacy Shareholders collectively will hold 6% or more of Mesa common stock on a fully diluted basis as a consequence of the Merger is fair, from a financial point of view, to the Mesa Legacy Shareholders.

Thereafter, pursuant to a letter dated July 9, 2025 (the "FTICA Letter"), FTICA confirmed to Mesa's board of directors that (provided there were no other changes or revisions to the Mesa Management Representation Letter to FTICA dated March 17, 2025) the conclusion presented in its opinion as of March 17, 2025 would not change as a result of the Exchange Ratio being 584.90 (rather than 636.00) assuming that the Mesa Legacy Shareholders collectively will hold 6% or more of Mesa common stock on a fully diluted basis as a consequence of the Merger (and subject to the same provisions and terms set forth in its opinion as of March 17, 2025).

The full text of the written opinion of FTICA, dated March 17, 2025, which describes the assumptions made and the qualifications and limitations upon the review undertaken by FTICA in preparing its opinion, as well as the full text of the FTICA Letter, are attached as *Annex B* to this proxy statement/prospectus and are incorporated herein by reference**. FTICA's financial advisory services and opinion were provided for the information and assistance of Mesa's board of directors (in their capacity as directors and not in any other capacity) in connection with and for purposes of the Mesa board of directors' consideration of the Merger and the opinion of FTICA and the FTICA Letter addressed only the fairness to the Mesa Legacy Shareholders, from a financial point of view, of the Exchange Ratio proposed to be paid by Mesa, assuming that the Mesa Legacy Shareholders collectively will hold 6% or more of Mesa common stock on a fully diluted basis as a consequence of the Merger. The opinion of FTICA and the FTICA Letter did not address any other term or aspect of the Merger Agreement or the Merger and do not constitute a recommendation to any stockholder of Mesa as to whether or how such holder should vote with respect to the Merger or otherwise act with respect to the Merger or any other matter.**

**The full text of the written opinion of FTICA and the FTICA Letter should be read carefully in their entirety for a description of the assumptions made and limitations upon the review undertaken by FTICA in preparing its opinion.** 

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#### Overview of the Merger Agreement and Agreements Related to the Merger Agreement
**Merger Consideration** (see page 138)

At the Effective Time, upon the terms and subject to the conditions set forth in the Merger Agreement, each share of Republic common stock issued and outstanding immediately prior to the Effective Time (excluding shares to be cancelled pursuant to the Merger Agreement and excluding dissenting shares held by stockholders who have not voted in favor of, or consented to, the Merger and who have properly demanded appraisal of such shares in accordance with, and have complied in all respects with, Section 262 of the DGCL) will be automatically converted into the right to receive a number of validly issued, fully paid, and non-assessable shares of Mesa common stock equal to the Exchange Ratio (described in more detail in the section titled "*The Merger Agreement – Merger Consideration*" beginning on page 138 of this proxy statement/prospectus).

Mesa will not issue any fractional shares of Mesa common stock in the Merger. Republic stockholders who would otherwise be entitled to a fraction of a share of Mesa common stock in the Merger will instead be entitled to receive, for the fraction of a share, an amount in cash, without interest, rounded down to the nearest cent, based on the "Mesa Stock Value", which is the average of the volume weighted average price per share of Mesa common stock on Nasdaq (as reported by Bloomberg L.P., or if not reported there, in another authoritative source selected by Mesa and Republic) on each of the 5 consecutive trading days ending with the last complete trading day 3 days immediately prior to the Closing.

Immediately after the Merger, the Pre-Merger Mesa Shareholders are expected to own approximately six percent (6%) of the outstanding shares of the Surviving Corporation on a fully-diluted basis, with the prospect of owning up to an additional six percent (6%) subject to certain contingencies set forth in the Merger Agreement and the Three Party Agreement, and former Republic securityholders are expected to own approximately eighty-eight percent (88%) of the outstanding shares of the Surviving Corporation on a fully-diluted basis. The additional six percent (6%) will come out of the Escrow Asset which will be held and distributed by the Escrow Agent. The Escrow Asset will be distributed to the Pre-Merger Mesa Shareholders on a pro rata basis to the extent remaining after potential distributions, if any, are made to United Airlines and the Surviving Corporation based on the determination of the Net Debt Amount as of the Closing. Whether any of the Escrow Asset will ultimately be distributed to the Pre-Merger Mesa Shareholders cannot be estimated at this point in time as it is dependent on both (i) the finally determined Net Debt Amount and (ii) the finally determined Surviving Corporation Stock Value, neither of which will be finally determined until after the Closing, as described in detail in the section titled "*Agreements Related to the Merger* — *the Three Party Agreement* — *Mesa's Delivery of Proposed Final Closing Statement and United Airlines' and the Surviving Corporation's Responses*"

**Republic RSUs** (see page 142)

Under the terms of the Merger Agreement, immediately prior to the Effective Time, each then outstanding Republic RSU that has vested in accordance with its terms (including each outstanding Republic RSU that will become vested upon, or immediately before, the Closing) will be cancelled and converted into the right of the holder to receive a number of whole shares of Republic common stock (rounded up to the next whole share), which shares of Republic common stock will be converted into Mesa common stock in accordance with the Exchange Ratio.

Further, immediately prior to the Effective Time, each then outstanding Republic RSU that is unvested will be assumed by Mesa and converted into the right to receive an award of restricted shares of Mesa common stock (each, a "Surviving Corporation Restricted Stock Award") in an amount equal to the number of whole shares of Mesa common stock (rounded up to the next whole share of Mesa common stock) equal to the product obtained by multiplying (x) the Exchange Ratio by (y) the total number of shares of Republic common stock subject to such unvested Republic RSU immediately prior to the Effective Time. Each Republic RSU assumed and

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converted into a Surviving Corporation Restricted Stock Award will continue to have and be subject to the same terms and conditions, including with respect to vesting, as applicable to the corresponding Republic RSU as of immediately prior to the Effective Time.

Each Surviving Corporation Restricted Stock Award shall, in accordance with its terms, continue to be subject to further adjustment as appropriate to reflect any stock split, division or subdivision of shares, stock dividend, reverse stock split, consolidation of shares, reclassification, recapitalization, or other similar transaction with respect to shares of Surviving Corporation common stock subsequent to the Effective Time.

**Mesa Common Stock and Mesa RSUs and Restricted Stock Awards** (see page 142)

Mesa common stock will remain unaffected by the Merger.

Under the terms of the Merger Agreement, immediately prior to the Effective Time, each then outstanding RSU award and restricted stock award in respect of shares of Mesa common stock, whether vested or unvested, will accelerate in full and then be cancelled and converted into the right to receive the number of shares of Mesa common stock subject to such award immediately prior to the Effective Time.

The Pre-Merger Mesa Shareholders and the holders of Mesa RSU awards and restricted stock awards will be entitled to the non-transferable contingent right to receive a pro rata share of the Escrow Asset, subject to the terms and conditions of, and pursuant to the terms of, the Merger Agreement, the Three Party Agreement, and the Escrow Agreement.

**Conditions to the Completion of the Merger** (see page 159)

To complete the Merger, Mesa stockholders must approve Proposal Nos. 1 and 2, and Republic stockholders must adopt the Merger Agreement and approve the Merger and the related transactions contemplated by the Merger Agreement. Additionally, each of the other closing conditions set forth in the Merger Agreement must be satisfied or waived.

**No-Shop**(see pages 153 and 156)

The Merger Agreement contains non-solicitation provisions prohibiting each of Mesa and Republic from soliciting a competing transaction. Each of Mesa and Republic have agreed that, subject to certain exceptions, Mesa and Republic and any of their respective subsidiaries will not, nor will either party or any of its subsidiaries authorize any of their respective directors, officers, employees, consultants, investment bankers, financial advisors, attorneys, accountants or other advisors, agents, or representatives retained by either party or any of their respective subsidiaries to, directly or indirectly:

• solicit, initiate, knowingly encourage, or facilitate any expression of interest, proposal, or offer that constitutes or would reasonably be expected to lead to a Mesa Acquisition Proposal or Republic Acquisition Proposal, as applicable;

• participate in any discussions or negotiations with any person (other than the other party) related to any Mesa Acquisition Proposal or Republic Acquisition Proposal, as applicable;

• furnish any information in connection with a Mesa Acquisition Proposal or Republic Acquisition Proposal, as applicable, to any person in connection with a Mesa Acquisition Proposal or Republic Acquisition Proposal, as applicable, or any expression of interest, proposal, or offer that would reasonably be expected to lead to a Mesa Acquisition Proposal or Republic Acquisition Proposal, as applicable;

• subject to certain exceptions set forth in the Merger Agreement, enter into any agreement, letter of intent, memorandum of understanding, agreement in principle, acquisition agreement, merger agreement, option, or other similar contract providing for or otherwise relating to any Mesa

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Acquisition Proposal or Republic Acquisition Proposal, as applicable, or that is intended to result in, or would reasonably be expected to lead to, any Mesa Acquisition Proposal or Republic Acquisition Proposal, as applicable; or

• submit any Mesa Acquisition Proposal or Republic Acquisition Proposal, as applicable, or any matter related thereto to the vote of its stockholders.

**Board Recommendation Change** (see pages 154 and 157)

Subject to the terms and conditions of the Merger Agreement, neither Republic's board of directors nor Mesa's board of directors may change its recommendation in favor of the Merger, except that prior to receipt by such party of its stockholder approval, such party's board of directors may effect a change in recommendation as a result of certain material events, circumstances, changes, effects, conditions, or development or (as more fully described in the Merger Agreement, an "Intervening Event"), or with respect to certain offers that constitute a superior proposal within the meaning of the Merger Agreement that did not result from a material breach of the Merger Agreement if:

• such party's board of directors shall have determined in good faith, after consultation of its outside legal counsel, that the failure to effect such change in recommendation would reasonably be expected to be inconsistent with its fiduciary duties under applicable law;

• such party has provided at least four business days' prior written notice to the other party that it intends to effect a change in recommendation, and during such period has negotiated with the other party in good faith to make such adjustments to the terms and conditions of the Merger Agreement that would obviate the need for such change in recommendation, in the case of an "Intervening Event" or so that the acquisition proposal ceases to constitute a superior offer; and

• if, after the other party shall have delivered to such party a written offer to modify the terms or conditions of the Merger Agreement during the four-business day period referred to above, such party's board of directors shall have determined in good faith (after consultation with its outside legal counsel and its financial advisor), that the failure to effect a change in recommendation would reasonably be expected to be inconsistent with its fiduciary duties under applicable law.

In the event of any material revisions to any superior offer, the party considering the superior offer would be required to provide the other party with notice of such material revision and there would be a new two-business day period following such notification during which the parties would be obligated to comply again with the requirements described above.

In the case of an Intervening Event, the party suffering such event shall promptly notify the other party at least four business days in advance of its intention to make a change in recommendation. The written notice is required to state the material facts and circumstances related to the applicable Intervening Event, such party's board of directors' reason for proposing to effect such change in recommendation and that such party's board of directors intends to make a change in recommendation.

**Termination of the Merger Agreement** (see page 161)

Either Mesa or Republic may terminate the Merger Agreement under certain circumstances, which would prevent the Merger from being consummated.

**Termination Fee** (see pages 162 and 163)

If the Merger Agreement is terminated under certain circumstances, Mesa could be required to pay Republic a termination fee of $1,500,000 or Republic could be required to pay Mesa a termination fee of $1,500,000.

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**Governance of the Surviving Corporation After the Merger** (see page 358)

#### Charter Adoption and Name Change
In connection with the Delaware Conversion, Mesa will file a Certificate of Conversion with the Post-Conversion Charter, which will become the certificate of incorporation of Mesa.

The Post-Conversion Charter authorizes 5,000,000,000 shares of common stock, an increase from the 125,000,000 shares of common stock authorized for issuance in the Mesa Charter and, in connection with the Merger, Mesa will effect a name change of the Surviving Corporation to "Republic Airways Holdings Inc." A copy of the Post-Conversion Charter is filed as Exhibit 3.4 to the registration statement of which this proxy statement/prospectus forms a part.

At the Effective Time, the Post-Conversion Charter of Mesa, as in effect immediately prior to the Effective Time, as amended to reflect the name change described above, will be the certificate of incorporation of the Surviving Corporation until thereafter amended in accordance with applicable law.

#### Bylaws
In connection with the Delaware Conversion, Mesa will adopt the Post-Conversion Bylaws, which will become the bylaws of Mesa.

The Post-Conversion Bylaws will be the bylaws of the Surviving Corporation at the Effective Time, until thereafter amended in accordance with applicable law and the terms of the certificate of incorporation of the Surviving Corporation and such bylaws; provided, that the parties will take all requisite actions so that, as of the Effective Time, the Post-Conversion Bylaws are amended to reflect that the name of the Surviving Corporation shall be "Republic Airways Holdings Inc."

#### Board of Directors
As of the Effective Time, the number of directors constituting the board of directors of the Surviving Corporation will be seven (7) directors. Six (6) of the Surviving Corporation directors will be designated by Republic, including a chair of the Surviving Corporation board of directors, and one (1) of the Surviving Corporation directors will be Ellen Artist, or such other director who may be proposed by Mesa subject to the approval of Republic in its sole discretion.

The following table sets forth the name, age as of June 30, 2025 and position of each of the individuals who are expected to serve as directors of the Surviving Corporation following completion of the Merger:

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| | | | |
|:---|:---|:---|:---|
| **Name** | **Age** | **Age** | **Title** |
|  **Non-Employee Directors** |  |  |  |
|  Ellen N. Artist |  | 69 | Director |
|  Glenn S. Johnson |  | 66 | Director |
|  Michael C. Lenz |  | 61 | Director |
|  Ruth Okediji |  | 56 | Director |
|  Barry W. Ridings |  | 73 | Director |
|  James E. Sweetnam |  | 73 | Director |

---

#### Management
Pursuant to the Merger Agreement, Republic will designate the Chief Executive Officer, Chief Financial Officer, Chief Operating Officer, General Counsel, and any other "C-Suite" level officers as executive officers of the Surviving Corporation.

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The following table sets forth the name, age as of June 30, 2025 and position of each of the individuals who are expected to serve as executive officers and directors of the Surviving Corporation following completion of the Merger:

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| | | |
|:---|:---|:---|
| **Name** | **Age** | **Title** |
|  **Executive Officers** |  |  |
|  David Grizzle | 71 | Chief Executive Officer and Chairman of the Board |
|  Matthew J. Koscal | 48 | President and Chief Commercial Officer |
|  Joseph P. Allman | 54 | Senior Vice President and Chief Financial Officer |
|  Paul K. Kinstedt | 64 | Senior Vice President and Chief Operating Officer |
|  Chad M. Pulley | 45 | Senior Vice President, General Counsel, and Secretary |

---

#### Headquarters and Operations
The headquarters of the Surviving Corporation will be the headquarters of Republic prior to Closing, which are located in Indianapolis, Indiana.

**Material U.S. Federal Income Tax Consequences of the Merger** (see page 128)

As discussed in detail in the section titled "*The Merger – Material U.S. Federal Income Tax Consequences of the Merge*r" beginning on page 128 of this proxy statement/prospectus and subject to the limitations and qualifications described therein, Mesa and Republic intend the Merger to qualify as a "reorganization" within the meaning of Section 368(a) of the Code. Assuming the Merger so qualifies, a U.S. Holder of Republic common stock will not recognize gain or loss upon the receipt of Mesa common stock in exchange for surrendering its Republic stock in the Merger. Since the Mesa stockholders will not sell, exchange, or dispose of any shares of Mesa common stock as a result of the Merger, there will be no material U.S. federal income tax consequences to Mesa stockholders as a result of the Merger. For a more detailed discussion of the material U.S. federal income tax consequences of the Merger, see the section titled "*The Merger – Material U.S. Federal Income Tax Consequences of the Merger*," beginning on page 128 of this proxy statement/prospectus.

**Material U.S. Federal Income Tax Consequences of the Delaware Conversion** (see page 206)

Subject to the limitations and qualifications described in the section titled "*Proposal No. 1—The Merger Proposal – The Delaware Conversion – Material U.S. Federal Income Tax Consequences of the Delaware Conversion*," Mesa intends that the Delaware Conversion qualify as a "reorganization" within the meaning of Section 368(a) of the Code. Assuming the Delaware Conversion so qualifies, a U.S. Holder of Mesa common stock will not recognize gain or loss upon the Delaware Conversion. For a more detailed discussion of the material U.S. federal income tax consequences of the Delaware Conversion, please see the section titled "*Proposal No. 1—The Merger Proposal – The Delaware Conversion – Material U.S. Federal Income Tax Consequences of the Delaware Conversion*."

**Risk Factors** (see page 47)

Both Mesa and Republic are subject to various risks associated with their businesses and their industries. In addition, the Merger, including the possibility that the Merger may not be completed, poses a number of risks to each company and its respective securityholders, including the following risks:

#### Risks Related to the Merger:
• Potential litigation against Mesa and/or Republic could result in substantial costs, an injunction preventing the completion of the Merger and/or a judgment resulting in the payment of damages;

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• The Merger is subject to the requirements of the HSR Act, and the waiting period under the HSR Act with respect to the filings made by Mesa and by Republic expired on June 16, 2025. Although unlikely, the parties cannot foreclose the possibility that the regulatory authorities may open an investigation and/or seek or impose conditions that could have an adverse effect on Mesa and/or Republic following the Merger or that could delay, prevent, or increase the costs associated with completion of the Merger;

• Failure to complete, or delays in completing, the potential Merger with Republic, announced on April 7, 2025, could materially and adversely affect Mesa's or Republic's results of operations, business, financial results, and may cause a decline in the market price of Mesa common stock;

• The Exchange Ratio will not change or otherwise be adjusted based on the market price of Mesa common stock as the Exchange Ratio is fixed, so the Merger consideration at the Closing may have a greater or lesser value than at the time the Merger Agreement was signed;

• The ultimate disposition of the Escrow Assets is determined by the Net Debt Amount and the Pre-Merger Mesa Shareholders may not receive any Escrow Assets;

• The issuance of Mesa common stock to Republic stockholders pursuant to the Merger Agreement and the resulting change in control from the Merger must be approved by Mesa stockholders, and the Merger Agreement and transactions contemplated thereby must be approved by the Republic stockholders. Failure to obtain these approvals would prevent the Closing;

• Failure to complete the Merger may result in Mesa or Republic paying a termination fee to the other party and could harm the common stock price of Mesa and the future business and operations of each company;

• If the conditions to the Merger are not satisfied or waived, the Merger may not occur;

• The Merger may be completed even though a material adverse effect may result from the announcement of the Merger, industry-wide changes or other causes;

• Certain Mesa and Republic executive officers and directors have interests in the Merger that are different from yours;

• Mesa stockholders and Republic stockholders may not realize a benefit from the Merger commensurate with the ownership dilution they will experience in connection with the Merger;

• If the Merger is not completed, Mesa's stock price may decline;

• Mesa and Republic securityholders will have a reduced ownership and voting interest in, and will exercise less influence over the management of, the Surviving Corporation following the completion of the Merger as compared to their current ownership and voting interests in the respective companies;

• During the pendency of the Merger, Mesa and Republic may not be able to enter into a business combination with another party on more favorable terms because of restrictions in the Merger Agreement, which could adversely affect their respective business prospects;

• Certain provisions of the Merger Agreement may discourage third parties from submitting competing proposals, including proposals that may be superior to the transactions contemplated by the Merger Agreement;

• Because the lack of a public market for Republic's capital stock makes it difficult to evaluate the fair market value of Republic's capital stock, the value of the Mesa common stock to be issued to Republic stockholders may be more or less than the fair market value of Republic's capital stock; and

• Lawsuits may be filed against Mesa, Republic, or any of the members of their respective boards of directors arising out of the Merger, which may delay or prevent the Merger.

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#### Risks Related to Mesa:
• Mesa may not be successful in consummating the Merger;

• If Mesa is successful in completing a strategic transaction, Mesa may be exposed to other operational and financial risks;

• Mesa may become involved in litigation, including securities class action litigation, that could divert management's attention and harm Mesa's business, and insurance coverage may not be sufficient to cover all costs and damages;

• Mesa is highly dependent on its agreement with United Airlines;

• Reduced utilization levels of Mesa's aircraft under the United CPA would have a material adverse impact on Mesa's results of operations and financial condition;

• If United Airlines experiences events that negatively impact its financial strength or operations, Mesa's operations also may be negatively impacted;

• Mesa has a significant amount of debt and other contractual obligations that could impair its liquidity and thereby harm its business, results of operations, and financial condition;

• The airline industry is highly competitive and has undergone significant consolidation and transition, which could adversely affect Mesa's operating results and financial condition;

• Mesa is subject to extensive and evolving governmental regulation, which imposes significant costs and operational risks; and

• Airlines are often affected by factors beyond their control, including: air traffic congestion at airports; air traffic control inefficiencies; adverse weather conditions, such as hurricanes or blizzards; increased security measures; new travel-related taxes; or the outbreak of disease; any of which could have a material adverse effect on Mesa's business, results of operations, and financial condition.

#### Risks Related to Republic:
• Republic currently depends on Embraer, GE Aviation, and other original equipment manufacturers ("OEMs") to support its fleet of aircraft;

• Republic is at risk of losses stemming from an accident or incident involving any of Republic's LIFT Academy training aircraft or personnel;

• Republic's business is dependent on its CPAs with Republic's Partners;

• The amounts Republic receives under its CPAs may be less than the corresponding costs it incurs;

• Reduced utilization levels of Republic's aircraft under CPAs with Republic's Partners would adversely impact Republic's revenues, earnings, and liquidity;

• If the financial strength of any of Republic's Partners decreases, Republic's financial strength, in turn, is at risk;

• Republic's Partners may choose to operate their own regional aircraft, thus limiting the opportunity for expansion of Republic's relationships with them;

• Republic's Partners may be restricted in increasing the level of business that they conduct with Republic, thereby limiting Republic's growth;

• Disagreements regarding the interpretation of the CPAs with Republic's Partners could have an adverse effect on Republic's operating results and financial condition;

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• Republic may face "tail risk" in the event it finances aircraft or makes aircraft lease commitments whereby the underlying mortgage or lease commitment extends beyond the terms of its existing CPA;

• The residual value of Republic's owned aircraft may be less than estimated in its depreciation policies;

• Republic's maintenance expenses will increase as its fleet ages and may be higher than Republic anticipates; and

• Republic has a significant amount of debt and other contractual obligations that could impair its liquidity and thereby harm its business, results of operations, or financial condition.

#### Risks Related to the Ownership of the Common Stock of the Surviving Corporation:
• If any of the events described in "Risks Related to Mesa" or "Risks Related to Republic" occur, those events could cause potential benefits of the Merger not to be realized;

• The market price of the Surviving Corporation's common stock is expected to be volatile, and the market price of the common stock may drop following the Merger;

• If the Surviving Corporation fails to attract and retain management and other key personnel, it may be unable to continue to successfully implement its business plan;

• The Surviving Corporation may incur losses for the foreseeable future and may never achieve profitability;

• After completion of the Merger, the Surviving Corporation's executive officers, directors, and principal stockholders will have the ability to control or significantly influence all matters submitted to the Surviving Corporation's stockholders for approval;

• The Surviving Corporation will have broad discretion in the use of the cash and cash equivalents of the Surviving Corporation and may invest in ways with which you do not agree and in ways that may not increase the value of your investment in Mesa common stock; and

• Provisions of the Post-Conversion Charter and the Post-Conversion Bylaws, which will be the certificate of incorporation and bylaws of the Surviving Corporation and provisions under Delaware law could make an acquisition of the Surviving Corporation more difficult and may prevent attempts by its stockholders to replace or remove its management. The Post-Conversion Charter, which will be the certificate of incorporation of the Surviving Corporation will provide that, unless the Surviving Corporation consents in writing to the selection of an alternative forum, certain designated courts will be the sole and exclusive forum for certain legal actions between the Surviving Corporation and its stockholders, which could limit its stockholders' ability to obtain a favorable judicial forum for disputes with the Surviving Corporation or its directors, officers, employees, or agents.

These risks and other risks are discussed in greater detail under the section titled "*Risk Factors*" beginning on page 47 of this proxy statement/prospectus. Mesa and Republic both encourage you to read and consider all of these risks carefully.

**Regulatory Approvals** (see page 150)

Subject to the terms of the Merger Agreement, each of Mesa and Republic are required to use their respective reasonable best efforts (i) take, or cause to be taken, all appropriate action and do, or cause to be done, all things necessary, proper or advisable under applicable law or otherwise to consummate and make effective the transactions contemplated by the Merger Agreement as promptly as practicable, and (ii) obtain from any governmental entities any consents, licenses, permits, waivers, approvals, authorizations, confirmations, clearances, certificates, exemptions, registrations, variants, deviations, ratings, operations specifications, grants, directives, or orders required to be obtained by Mesa or Republic or any of their respective subsidiaries, or to

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avoid any action or proceeding by any governmental entity (including those in connection with the HSR Act), in connection with the authorization, execution, and delivery of the Merger Agreement and the consummation of the transactions contemplated thereby, including the Merger.

The completion of the Merger is subject to the expiration or termination of the applicable waiting periods under the HSR Act and the obtaining of any required pre-closing approvals, consents, waivers, or clearances under the applicable antitrust or other laws of the United States.

Mesa and Republic each filed a Notification and Report Form (the "HSR Notification Form") with respect to the transaction with the FTC and DOJ on May 16, 2025. The waiting period under the HSR Act with respect to the filings made by Mesa and by Republic expired on June 16, 2025.

In addition to the antitrust related clearances discussed above, Mesa and Republic must obtain any necessary approvals or authorizations that may be required to be obtained from the DOT, the FCC or FAA or other applicable regulatory bodies. There can be no assurance that Mesa and Republic will be able to obtain all required regulatory clearances and approvals.

**Nasdaq Stock Market Listing** (see page 141)

Mesa and Republic intend to prepare and submit to Nasdaq an initial listing application covering the shares of Mesa common stock to be issued in the Merger and will use their reasonable best efforts to cause such additional shares of Mesa common stock to be authorized for listing on Nasdaq, at or prior to the Closing. It is a condition to the consummation of the transactions contemplated by the Merger Agreement, including the Merger, that at or prior to the Closing, the shares of Mesa Common Stock issuable in the Merger will have been approved for listing on Nasdaq, but there can be no assurance such listing condition will be met. If such listing condition is not met, the transactions contemplated by the Merger Agreement, including the Merger, will not be consummated unless the condition is waived. The Nasdaq condition set forth in the Merger Agreement is not expected to be waived by the applicable parties. See "*Risk Factors – Risks Related to the Ownership of the Common Stock of the Surviving Corporation – Upon completion of the Merger, failure by the Surviving Corporation to comply with the initial listing standards of Nasdaq will prevent its stock from being listed on Nasdaq.*"

**Reverse Stock Split** (see page 131)

Mesa's board of directors intends to effect a reverse stock split of the shares of Mesa common stock. The principal purpose of the reverse stock split is to increase the per-share market price of Mesa common stock to satisfy the minimum bid price requirement of Nasdaq rules for listing the common stock in connection with the Merger. It cannot be assured, however, that the reverse stock split will result in an approval of the Nasdaq listing or otherwise result in a sustained increase in stock price. For a discussion of risks related to the proposed reverse stock split, see "*Risk Factors – Risks Related to the Ownership of the Common Stock of the Surviving Corporation – Upon completion of the Merger, failure by the Surviving Corporation to comply with the initial listing standards of Nasdaq will prevent its stock from being listed on Nasdaq.*"

**Anticipated Accounting Treatment** (see page 131)

The Merger is expected to be accounted for as an acquisition of Mesa by Republic (a reverse acquisition) under the acquisition method of accounting in accordance with GAAP.

**Appraisal Rights and Dissenters' Rights** (see page 131)

Holders of Mesa common stock are not entitled to appraisal or dissenters' rights in connection with the Merger under Nevada law. Holders of Republic common stock are entitled to appraisal or dissenters' rights in connection with the Merger under Delaware law.

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**Comparison of Stockholder Rights** (see page 207)

Mesa and Republic are incorporated under the laws of the State of Nevada and the State of Delaware, respectively, and, accordingly, the rights of the stockholders of Mesa are currently governed by the NRS and the rights of the stockholders of Republic are currently governed by the DGCL.

If Proposal No. 1 is approved by Mesa stockholders and the Merger is completed, Mesa will effect the Delaware Conversion pursuant to the Plan of Conversion as set forth in Section 1.2 of the Merger Agreement in the form attached as *Annex A* to this proxy statement/prospectus, and, upon completion of the Delaware Conversion, the rights of Mesa stockholders will no longer be governed by the Mesa Charter, Mesa's second amended and restated bylaws, as amended, and the NRS, and instead will be governed by a Delaware certificate of incorporation, Delaware bylaws, and the DGCL. For a comparison of rights of holders of the Mesa capital stock as a Nevada corporation and the Surviving Corporation capital stock as a Delaware corporation assuming the completion of the Delaware Conversion, see the section titled "*Proposal No. 1 – The Merger Proposal – The Delaware Conversion – Rights of Mesa Stockholders Prior to and After the Conversion from the State of Nevada to the State of Delaware*" beginning on page 207 of this proxy statement/prospectus.

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#### MARKET PRICE AND DIVIDEND INFORMATION
Mesa common stock is currently listed on Nasdaq under the symbol "MESA."

The closing price of the Mesa common stock on April 4, 2025, the last day of trading prior to the announcement of the Merger, as reported on Nasdaq, was $0.71 per share.

Because the market price of the Mesa common stock is subject to fluctuation, the market value of the shares of the Mesa common stock that the Republic stockholders will be entitled to receive in the Merger may increase or decrease.

Republic is a private company and Republic common stock is not publicly traded.

Assuming approval of Proposal Nos. 1 and 2, following the consummation of the Merger, the Surviving Corporation's common stock will trade on Nasdaq under the Surviving Corporation's new name, "Republic Airways Holdings Inc.," and new trading symbol "RJET".

As of , 2025, the Record Date for the Special Meeting, there were approximately registered holders of record of the Mesa common stock. As of , 2025, Republic had holders of record of Republic common stock. For detailed information regarding the beneficial ownership of certain Mesa and Republic stockholders, see the sections of this proxy statement/prospectus titled "*Principal Stockholders of Mesa*" and "*Principal Stockholders of Republic*".

#### Dividends
Mesa has not declared or paid any cash dividends on its capital stock. Mesa currently intends to retain any future earnings and does not expect to pay any cash dividends on its common stock for the foreseeable future. Additionally, the United CPA, certain of Mesa's aircraft lease facilities, and Mesa's loan with the U.S. Treasury contain restrictions that limit its ability to or prohibit it from paying dividends to holders of its common stock. Any determination to pay dividends in the future will be at the discretion of Mesa's board of directors, subject to applicable laws and financial covenants, and will depend on Mesa's financial condition, operating results, capital requirements, general business conditions, and other factors that its board of directors considers relevant.

Republic has never paid or declared any cash dividends on the Republic capital stock. If the Merger does not occur, Republic does not anticipate paying any cash dividends on the Republic capital stock in the foreseeable future, and Republic intends to retain all available funds and any future earnings to fund the development and expansion of its business. Any future determination to pay dividends will be at the discretion of Republic's board of directors and any stockholder approval that may be necessary and will depend upon a number of factors, including its results of operations, financial condition, future prospects, contractual restrictions, and restrictions imposed by applicable laws, and other factors Republic's board of directors deems relevant.

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#### RISK FACTORS
*The Surviving Corporation will be faced with a market environment that cannot be predicted and that involves significant risks, many of which will be beyond its control. In addition to the other information contained or incorporated by reference in this proxy statement/prospectus, you should carefully consider the material risks described below before deciding how to vote your shares of Mesa common stock. You should also read and consider the other information in this proxy statement/prospectus and additional information about Mesa set forth in its Annual Report on Form 10-K for the fiscal year ended September 30, 2024, which is filed with the SEC, as updated by its Quarterly Reports on Form 10-Q, in each case incorporated by reference into this proxy statement/prospectus. Please see the section titled "Where You Can Find More Information" beginning on page 383 of this proxy statement/prospectus for further information regarding the documents incorporated by reference into this proxy statement/prospectus.* 

#### Risks Related to the Merger
***Potential litigation against Mesa and/or Republic could result in substantial costs, an injunction preventing the completion of the Merger and/or a judgment resulting in the payment of damages.***

Securities class action lawsuits and derivative lawsuits are often brought against public companies that have entered into merger agreements. Even if such a lawsuit is unsuccessful, defending against these claims can result in substantial costs. An adverse judgment could result in monetary damages, which could have a negative impact on Mesa's liquidity and financial condition.

Stockholders of Mesa or Republic may file lawsuits against Mesa, Republic, and/or their directors and officers in connection with the Merger. These lawsuits could prevent or delay the completion of the Merger and result in significant costs to Mesa, including any costs associated with the indemnification of Mesa's directors and officers. There can be no assurance that any of the defendants will be successful in the outcome of any potential lawsuits.

***The Merger is subject to the requirements of the HSR Act, and regulatory authorities may seek or impose conditions that could have an adverse effect on Mesa and/or Republic following the Merger or that could delay, prevent, or increase the costs associated with completion of the Merger.***

Before the Merger may be completed, all applicable waiting periods (or extensions thereof) under the provisions of the HSR Act must have expired or been terminated. In deciding whether to grant the required approvals, consents, registration, permits, expirations or terminations of the waiting periods, authorizations, or other confirmations, the relevant governmental entities may seek or impose requirements, limitations, or costs or place restrictions on the conduct of Mesa's business following the acquisitions. Under the Merger Agreement, Mesa, and Republic, as applicable, have agreed to use their respective reasonable best efforts to cause the expiration or termination of the applicable waiting periods under any applicable Competition Laws as soon as reasonably practicable following the date of the Merger Agreement (and prior to the Outside Date). The waiting period under the HSR Act with respect to the filings made by Mesa and by Republic expired on June 16, 2025. Although unlikely, the parties cannot foreclose the possibility that the regulatory authorities may open an investigation and/or seek or impose conditions that could have an adverse effect on Mesa and/or Republic following the Merger or that could delay, prevent, or increase the costs associated with completion of the Merger.

However, notwithstanding the foregoing, Republic is not required to (and neither Mesa nor any of its subsidiaries) shall without the prior written consent of Republic) agree to any term, condition, obligation, liability, requirement, limitation, qualification, remedy, commitment, sanction, or other action imposed, required, or requested by a governmental entity, including but not limited to selling, holding separate, or otherwise disposing of or conducting their business (or, following the Closing, the Surviving Corporation) in a specified manner, or agree to sell, hold separate, or otherwise dispose of or conduct their business (or, following the

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closing, the combined business) in a specified manner, or entering into or agreeing to enter into a voting trust arrangement, proxy arrangement, "hold separate" agreement, or arrangement or similar agreement or arrangement with respect to the assets, operations or conduct of their business (or, following the Closing, the Surviving Corporation) in a specified manner, or permitting the sale, hold separate, or other disposition of, any assets of Mesa, Republic, or their respective affiliates, or otherwise take any action that limits the freedom of action with respect to, or its ability to retain any of the businesses, product lines or assets of, Mesa or Republic.

Notwithstanding the expiration of the waiting period under the HSR Act, governmental authorities may also seek or impose conditions, terms, obligations, or restrictions in connection with their approval of or consent to the Merger, and such conditions, terms, obligations, or restrictions may delay completion of the Merger or impose additional material costs. There can be no assurance that governmental authorities will choose not to seek or impose such conditions, terms, obligations, or restrictions, and, if imposed, such conditions, terms, obligations, or restrictions may delay or lead to the abandonment of the Merger. At any time before or after consummation of the Merger, notwithstanding the termination of the applicable waiting period under the HSR Act, the Federal Trade Commission, the Antitrust Division of the U.S. Department of Justice, or any state could take such action under U.S. antitrust laws as it deems necessary or desirable in the public interest, including seeking (i) to enjoin the completion of the Merger, (ii) to require divestiture of assets of Mesa, Republic or their respective subsidiaries, (iii) to require the parties to take other actions or agree to other restrictions limiting the freedom of action of the parties.

***Failure to complete, or delays in completing, the potential Merger with Republic, announced on April 7, 2025, could materially and adversely affect Mesa's or Republic's results of operations, business, financial results, and may cause a decline in the market price of Mesa common stock.***

On April 4, 2025, Mesa entered into the Merger Agreement with Republic, pursuant to which, if all the closing conditions are satisfied or waived Republic will merge with and into Mesa, with Mesa continuing as the Surviving Corporation. Consummation of the Merger is subject to certain closing conditions, a number of which are not within Mesa's control. Any failure to satisfy or, to the extent permitted by applicable law, waive these required closing conditions may prevent, delay, or otherwise materially adversely affect the consummation of the Merger. Mesa cannot predict with certainty whether or when any of the required conditions will be satisfied or, to the extent permitted by applicable law, waived, or if another uncertainty may arise and cannot assure you that Mesa will be able to successfully consummate the Merger as currently contemplated under the Merger Agreement or at all.

In particular, and as described in the section titled "Agreements Related "*Agreements Related to the Merger – The Three Party Agreement*" to the Merger – The Three Party Agreement", United Airlines may terminate the Three Party Agreement if the finally determined Net Debt Amount is greater than $60 million and, upon any termination of the Three Party Agreement, Republic may terminate the Merger Agreement.

Mesa's efforts to complete the Merger could cause substantial disruptions in, and create uncertainty surrounding, Mesa's business, which may materially adversely affect Mesa's results of operation and Mesa's business. Uncertainty as to whether the Merger will be completed may affect Mesa's ability to recruit prospective employees or to retain and motivate existing employees. Employee retention may be particularly challenging while the transaction is pending because employees may experience uncertainty about their roles following the transaction. Uncertainty as to whether the Merger will be completed could adversely affect Mesa's business and Mesa's relationship with collaborators, suppliers, vendors, regulators, and other business partners. For example, vendors, collaborators, and other counterparties may defer their decisions to work with Mesa or seek to change their existing business relationships with Mesa. Changes to, or termination of, existing business relationships could adversely affect Mesa's results of operations and financial condition, as well as the market price of Mesa common stock. The adverse effects of the pendency of the transaction could be exacerbated by any delays in completion of the transaction or termination of the Merger Agreement.

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***The Exchange Ratio will not be adjusted based on the market price of Mesa common stock as the Exchange Ratio is fixed as of the date of the Merger Agreement, so the Merger consideration at the Closing may have a greater or lesser value than at the time the Merger Agreement was signed.***

Except for adjustments based on a stock split, reverse split, combination, subdivision, reclassification, stock dividend (including any dividend or distribution of securities convertible into Mesa common stock), reorganization, recapitalization, or other like change with respect to Mesa common stock occurring after the date of the Merger Agreement and prior to the Effective Time, the Exchange Ratio is fixed. This means that the Exchange Ratio is not expected to change. Upon completion of the Merger, each issued and outstanding share of Republic common stock (other than treasury shares held by Republic and dissenting shares) will be converted into the right to receive 584.90 shares of Mesa common stock.

The market price of the Mesa common stock has fluctuated in the past and also since the date of the announcement of the Merger Agreement and may continue to fluctuate from the date of this proxy statement/prospectus to the date of the Mesa Special Meeting, the Closing, and thereafter. Any changes in the market price of Mesa common stock before the completion of the Merger will not affect the Exchange Ratio or the number of shares Republic stockholders will be entitled to receive pursuant to the Merger Agreement. Therefore, if before the completion of the Merger, the market price of Mesa common stock increases from the market price on the date of the Merger Agreement, then Republic stockholders could receive Merger Consideration with substantially more value for their shares of Republic capital stock than the parties had negotiated when they established the Exchange Ratio. Similarly, if before the completion of the Merger the market price of Mesa common stock declines from the market price on the date of the Merger Agreement, then Republic stockholders could receive Merger Consideration with substantially lower value than the parties negotiated when they established the Exchange Ratio. The Merger Agreement does not include a price-based termination right.

#### The ultimate disposition of the Escrow Assets is determined by the Net Debt Amount and the Pre-Merger Mesa Shareholders may not receive any Escrow Assets.
The Pre-Merger Mesa Shareholders will only benefit from the Escrow Assets to the extent that any Escrow Assets remain after satisfying the United Entitlement, if any, and the Surviving Corporation Entitlement, if any. There are no guarantees that Mesa will be successful in extinguishing the Net Debt Amount in accordance with the Three Party Agreement. If the Pre-Merger Mesa Shareholders are not entitled to any of the Escrow Assets then their collective ownership of the Surviving Corporation would be limited to approximately six percent (6%) on a fully diluted basis.

***The issuance of Mesa common stock to Republic stockholders pursuant to the Merger Agreement and the resulting change in control from the Merger must be approved by Mesa stockholders, and the Merger Agreement and transactions contemplated thereby must be approved by the Republic stockholders. Failure to obtain these approvals would prevent the Closing.***

Before the Merger can be completed, Mesa stockholders must approve, among other things, the issuance of Mesa common stock to Republic stockholders pursuant to the Merger Agreement and the resulting change in control from the Merger, and Republic stockholders must adopt the Merger Agreement and approve the Merger and the related transactions. Failure to obtain the required stockholder approvals may result in a material delay in, or the abandonment of, the Merger. Any delay in completing the Merger may materially adversely affect the timing and benefits that are expected to be achieved from the Merger. As of the date of this proxy statement/prospectus, Republic has obtained sufficient consents from its stockholders to approve the adoption of the Merger Agreement and approve the transactions contemplated thereby.

***Failure to complete the Merger may result in either Mesa or Republic paying a termination fee to the other party, and could harm the common stock price of Mesa and future business and operations of each company.***

If the Merger is not completed, Mesa and Republic are subject to the following risks:

• if the Merger Agreement is terminated under specified circumstances, Mesa could be required to pay Republic a termination fee of $1,500,000, or Republic could be required to pay Mesa a termination fee of $1,500,000;

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• the price of Mesa common stock may decline and could fluctuate significantly; and

• substantial costs related to the Merger may be incurred by either party, such as financial advisor, legal and accounting fees, a majority of which must be paid even if the Merger is not completed.

If the Merger Agreement is terminated and the board of directors of Mesa or Republic determines to seek another business combination, there can be no assurance that either Mesa or Republic will be able to find another third party to transact a business combination with, yielding comparable or greater benefits.

Mesa must pay Republic a termination fee of $1,500,000 under the following circumstances: (i) if Mesa terminates the Merger Agreement before obtaining the Mesa Stockholder Approval in order to enter into an alternative acquisition agreement with respect to a superior proposal as provided in the Merger Agreement; (ii) if prior to the time the Mesa Stockholder Approval is obtained, the Mesa board of directors or any committee thereof effects a change of recommendation and Republic terminates the Merger Agreement; and (iii) if (a) the Mesa Stockholder Approval is not obtained at the Mesa Special Meeting and the Merger Agreement is terminated by either party, (b) prior to the Mesa Special Meeting an acquisition proposal by Mesa has been publicly announced, and (c) within twelve months following the termination of the Merger Agreement, Mesa enters into a definitive agreement with respect to a subsequent transaction, or the Mesa board of directors has approved or recommended such an acquisition proposal that is later consummated.

Republic must pay Mesa a termination fee of $1,500,000 under the following circumstances: (i) if Republic terminates the Merger Agreement before obtaining the Republic Stockholder Approval in order to enter into an alternative acquisition agreement with respect to a superior proposal as provided in the Merger Agreement; (ii) if prior to the time the Republic Stockholder Approval is obtained, the Republic board of directors or any committee thereof effects a change of recommendation and Mesa terminates the Merger Agreement; and (iii) if (a) the Republic Stockholder approval has not been obtained by the completion of the Mesa Special Meeting and the Merger Agreement is terminated by either party, (b) prior to the date of the Mesa Special Meeting an acquisition proposal by Republic has been publicly announced and (c) within twelve months following the termination of the Merger Agreement, Republic enters into a definitive agreement with respect to a subsequent transaction, or the Republic board of directors has approved or recommended such an acquisition proposal that is later consummated.

For a more complete discussion regarding termination and termination fees under the Merger Agreement, please see the section titled "The Merger Agreement – Termination and Termination Fees" beginning on page 161 of this proxy statement/prospectus. In addition to the fees associated with termination of the Merger Agreement, certain fees may be incurred by the parties to the TPA in connection with termination of the TPA. For a more complete discussion regarding termination of the TPA, please see the section titled "*Agreements Related to the Merger – The Three Party Agreement – Termination of the TPA*" beginning on page 177 of this proxy statement/prospectus.

#### If the conditions to the Merger are not satisfied or waived, the Merger may not occur.
Even if the Merger is approved by the stockholders of Republic and Proposal Nos. 1, 2, 3, and 4 as described in this proxy statement/prospectus are approved by the Mesa stockholders, specified conditions must be satisfied or, to the extent permitted by applicable law, waived to complete the Merger. These conditions are set forth in the Merger Agreement and each material condition to the completion of the Merger is described in the section titled "*The Merger Agreement – Conditions to the Completion of the Merger*" beginning on page 159 of this proxy statement/prospectus. Mesa and Republic cannot assure you that all of the conditions to the consummation of the Merger will be satisfied or waived. If the conditions are not satisfied or waived, the Merger may not occur or the Closing may be delayed.

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#### The Merger may be completed even though a material adverse effect may result from the announcement of the Merger, industry-wide changes or other causes.
In general, neither Mesa nor Republic is obligated to complete the Merger if there is a material adverse effect affecting the other party between April 4, 2025, the date of the Merger Agreement, and the Closing. However, certain types of events and/or causes are excluded from the concept of a "material adverse effect." Such exclusions include, but are not limited to, changes in general economic conditions, or in securities, credit or financial markets, or any industry-wide development generally affecting airline companies, changes resulting from the announcement of the Merger, natural disasters, changes in regulatory, legislative or political conditions, pandemics (including the COVID-19 pandemic), other public health events, other force majeure events, acts or threat of terrorism or war and changes in GAAP or any applicable laws affecting the operation of the business of the party. Therefore, if any of these events were to occur and adversely affect Mesa or Republic, the other party would still be obligated to consummate the Closing notwithstanding such material adverse effects. If any such adverse effects occur and Mesa and Republic consummates the Closing, the stock price of the Surviving Corporation may suffer. This, in turn, may reduce the value of the Merger to the stockholders of Mesa, Republic, or both. For a more complete discussion of what constitutes a material adverse effect on Mesa or Republic, please see the section titled "*The Merger Agreement – Representations and Warranties*" beginning on page 143 of this proxy statement/prospectus.

#### Certain Mesa and Republic directors and executive officers have interests in the Merger that are different from yours.
Directors and executive officers of Mesa and Republic may have interests in the Merger that are different from, or in addition to, the interests of other Mesa stockholders generally. These interests with respect to Mesa's directors and executive officers may include, among others, acceleration of restricted stock unit and restricted stock award vesting, severance payments if employment is terminated in a qualifying termination in connection with the Merger and rights to continued indemnification, expense advancement, and insurance coverage. These interests with respect to Republic's directors and executive officers may include, among others, certain of Republic's directors and executive officers have outstanding restricted stock unit awards subject to vesting, which, immediately prior to the effective time of the Merger, will be converted into the right to receive an award of restricted shares of the common stock of the Surviving Corporation; Republic's executive officers are expected to continue as executive officers of the Surviving Corporation after the effective time of the Merger; and certain of Republic's directors and executive officers are entitled to certain indemnification and liability insurance coverage pursuant to the terms of the Merger Agreement. In addition, Ellen Artist, a member of Mesa's board of directors, and certain members of Republic's board of directors will continue as directors of the Surviving Corporation after the effective time of the Merger, and, following the Closing, will be eligible to be compensated as non-employee directors of the Surviving Corporation following the effective time of the Merger.

The Mesa and Republic boards considered the interests in the Merger that the respective directors and officers may have that are different than yours, among other matters, in reaching their decisions to approve and adopt the Merger Agreement, approve the Merger, and recommend the approval of the Merger Agreement to Mesa and Republic stockholders.

For more information regarding the interests of Mesa and Republic directors and executive officers in the Merger, please see the sections titled "*The Merger – Interests of Mesa Directors and Executive Officers in the Merger*" and "*The Merger – Interests of Republic Directors and Executive Officers in the Merger*" beginning on pages 121 and 125, respectively, of this proxy statement/prospectus.

***Mesa stockholders and Republic stockholders may not realize a benefit from the Merger commensurate with the ownership dilution they will experience in connection with the Merger.***

If the Surviving Corporation is unable to realize the full strategic and financial benefits currently anticipated from the Merger, Mesa stockholders, and Republic stockholders will have experienced substantial dilution of

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their ownership interests without receiving any commensurate benefit, or only receiving part of the commensurate benefit to the extent the Surviving Corporation is able to realize only part of the strategic and financial benefits currently anticipated from the Merger.

#### If the Merger is not completed, Mesa's stock price may decline significantly.
The market price of Mesa common stock is subject to significant fluctuations. Market prices for securities of airline companies have historically been particularly volatile. In addition, the market price of Mesa common stock will likely be volatile based on whether stockholders and other investors believe that Mesa can complete the Merger or otherwise raise additional capital to support Mesa's operations if the Merger is not consummated and another strategic transaction cannot be identified, negotiated, and consummated in a timely manner, if at all. Additional factors that may cause the market price of Mesa common stock to fluctuate include:

• the entry into, or termination of, key agreements, including commercial partner agreements;

• announcements by commercial partners or competitors of new significant contracts, commercial relationships, or capital commitments;

• the loss of key employees;

• future sales of its common stock;

• general and industry-specific economic conditions that may affect its expenditures;

• the failure to meet industry analyst expectations; and

• period-to-period fluctuations in financial results.

Moreover, the stock markets in general have experienced substantial volatility that has often been unrelated to the operating performance of individual companies. These broad market fluctuations may also adversely affect the trading price of Mesa common stock. In the past, following periods of volatility in the market price of a company's securities, stockholders have often instituted class action securities litigation against such companies.

***Mesa and Republic securityholders will have a reduced ownership and voting interest in, and will exercise less influence over the management of, the Surviving Corporation following the completion of the Merger as compared to their current ownership and voting interests in the respective companies.***

After the completion of the Merger, the current stockholders of Mesa and Republic will own a smaller percentage of the Surviving Corporation than their ownership of their respective companies prior to the Merger. In the case of the Mesa securityholders, that percentage is significantly smaller than their current ownership of Mesa. Immediately after the Merger, Pre-Merger Mesa Shareholders are expected to own approximately six percent (6%) of the outstanding shares of the Surviving Corporation on a fully-diluted basis, subject to the ability to receive up to an additional six percent (6%) under the Three Party Agreement, and former Republic securityholders are expected to own approximately eighty-eight (88%) of the outstanding shares of the Surviving Corporation on a fully-diluted basis, subject to certain assumptions. Whether any of the additional six percent will ultimately be distributed to the Pre-Merger Mesa Shareholders cannot be estimated at this point in time as it is dependent on both (i) the finally determined Net Debt Amount and (ii) the finally determined Surviving Corporation Stock Value, neither of which will be finally determined until after the Closing, as described in detail in the section titled "*Agreements Related to the Merger – the Three Party Agreement* – *Mesa's Delivery of Proposed Final Closing Statement and United Airlines' and the Surviving Corporation's Responses*"

***During the pendency of the Merger, Mesa and Republic may not be able to enter into a business combination with another party on more favorable terms because of restrictions in the Merger Agreement, which could adversely affect their respective business prospects.***

Covenants in the Merger Agreement impede the ability of Mesa and Republic to make acquisitions during the pendency of the Merger, subject to specified exceptions. As a result, if the Merger is not completed, the parties may be at a disadvantage to their competitors during that period. In addition, while the Merger Agreement

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is in effect, each party is generally prohibited from soliciting, seeking, initiating or knowingly encouraging, inducing or facilitating the communication, making, submission, or announcement of any acquisition proposal or acquisition inquiry or taking any action that could reasonably be expected to lead to certain transactions involving a third party, including a merger, sale of assets, or other business combination, subject to specified exceptions. Any such transactions could be favorable to such party's stockholders, but the parties may be unable to pursue them. For more information, please see the sections titled "*The Merger Agreement – Mesa No-Shop*" and "*The Merger Agreement – Republic No-Shop*" beginning on pages 153 and 156 of this proxy statement/prospectus.

***Certain provisions of the Merger Agreement may discourage third parties from submitting competing proposals, including proposals that may be superior to the transactions contemplated by the Merger Agreement.***

The terms of the Merger Agreement prohibit each of Mesa and Republic from soliciting competing proposals or cooperating with persons making unsolicited takeover proposals, except in limited circumstances as described in further detail in the sections titled "*The Merger Agreement – Mesa No-Shop*" and "*The Merger Agreement – Republic No-Shop*" beginning on pages 153 and 156, respectively, of this proxy statement/prospectus. In addition, if Mesa terminates the Merger Agreement under specified circumstances, Mesa could be required to pay Republic a termination fee of $1,500,000, or Republic could be required to pay Mesa a termination fee of $1,500,000. This termination fee may discourage third parties from submitting competing proposals to Mesa, Republic, or their respective stockholders, and may cause Mesa's board of directors or Republic's board of directors to be less inclined to recommend a competing proposal.

***Because the lack of a public market for Republic's capital stock makes it difficult to evaluate the fair market value of Republic's capital stock, the value of the Mesa common stock to be issued to Republic stockholders may be more or less than the fair market value of Republic's capital stock.***

The outstanding capital stock of Republic is privately held and is not traded in any public market. The lack of a public market makes it difficult to determine the fair market value of Republic's capital stock. Because the percentage of Mesa equity to be issued to Republic stockholders was determined based on negotiations between the parties, it is possible that the value of the Mesa common stock to be issued to Republic stockholders will be more or less than the fair market value of Republic's capital stock.

***Lawsuits may be filed against Mesa, Republic, or any of the members of their respective boards of directors arising out of the Merger, which may delay or prevent the Merger.***

Putative stockholder complaints, including stockholder class action complaints, and other complaints may be filed against Mesa, the Mesa board of directors, Republic, the Republic board of directors, and others in connection with the transactions contemplated by the Merger Agreement. The outcome of litigation is uncertain, and Mesa or Republic may not be successful in defending against any such future claims. Lawsuits that may be filed against Mesa, the Mesa board of directors, Republic, or the Republic board of directors could delay or prevent the Merger, divert the attention of Mesa's or Republic's management and employees from their day-to-day business and otherwise adversely affect Mesa and Republic financially.

#### Risks Related to Mesa

#### Mesa may not be successful in consummating the Merger.
The process of completing the Merger may be very costly, time-consuming and complex and Mesa has incurred, and may in the future incur, significant costs related to the Merger, including legal, advisory, and accounting fees and expenses and other related charges. Mesa may also incur additional unanticipated expenses in connection with the Merger, which will be incurred regardless of whether the Merger is completed. These expenses will decrease the remaining cash available for use in Mesa's business.

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The Merger could have a variety of negative consequences, or yield unexpected results that adversely affects Mesa's business and decreases the remaining cash available for use in Mesa's business or the execution of its strategic plan. The completion of the Merger is dependent on a number of factors that may be beyond Mesa's control, including, among other things, market conditions, industry trends, and obtaining stockholder approval. Any failure of the Merger could significantly impair Mesa's ability to enter into any future strategic transactions and may significantly diminish or delay any future distributions to Mesa's stockholders.

If the Merger is not completed in a timely fashion, this may cause reputational harm with Mesa's stockholders and the value of Mesa's securities may be adversely impacted. In addition, speculation regarding the completion of the Merger and perceived uncertainties related to the future of Mesa could cause Mesa's stock price to fluctuate significantly.

#### If Mesa is successful in completing a strategic transaction, Mesa may be exposed to other operational and financial risks.
Although there can be no assurance that the Merger will be completed, the negotiation and consummation of the Merger required, and will continue to require, significant time on the part of Mesa's management, and the diversion of management's attention may disrupt Mesa's business.

The negotiation and consummation of the Merger may also require more time or greater cash resources than Mesa anticipates and expose Mesa to other operational and financial risks, including:

• increased near-term and long-term expenditures;

• exposure to unknown liabilities;

• higher than expected acquisition or integration costs;

• inability to retain key employees of Mesa to complete the Merger; and

• possibility of future litigation.

Any of the foregoing risks could have a material adverse effect on Mesa's business, financial condition, and prospects.

***Mesa may become involved in litigation, including securities class action litigation, that could divert management's attention and harm Mesa's business, and insurance coverage may not be sufficient to cover all costs and damages.***

In the past, litigation, including securities class action litigation, has often followed certain significant business transactions, such as a merger. These events may also result in investigations by the SEC. Mesa may be exposed to such litigation in connection with the Merger even if no wrongdoing occurred.

Furthermore, the stock market in general, and airline companies in particular, have experienced extreme price and volume fluctuations that have often been unrelated or disproportionate to the operating performance of these companies. In the past, companies that have experienced volatility in the market price of their stock have been subject to securities class action litigation. The market price of Mesa common stock may be volatile, and Mesa may be the target of this type of litigation in the future.

Litigation is usually expensive and diverts management's attention and resources from other business concerns, which could adversely affect Mesa's business and cash resources and its ability to consummate the Merger or the ultimate value Mesa's stockholders receive in any such transaction.

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#### Risks Related to Mesa's Business

#### Mesa is highly dependent on its agreement with United Airlines.
Mesa derives substantially all of its operating revenue from the United CPA. United Airlines accounted for approximately 97% and 73% of Mesa's revenue for the fiscal years ended September 30, 2024 and 2023, respectively, and approximately 98% and 98% of Mesa's revenue for the three months ended June 30, 2025, and June 30, 2024, respectively. A termination of the United CPA would have a material adverse effect on Mesa's business prospects, financial condition, results of operations, and cash flows. See the section titled "*Mesa's Business*" for additional information on the United CPA.

While United Airlines will continue to have a contractual obligation to meet its obligations under the United CPA prior to the Merger, United Airlines has the right to terminate the United CPA early under certain circumstances or allow the agreement to expire by its terms. The termination date for the first 30 of Mesa's E175 aircraft operated under the United CPA is March 31, 2026. Thereafter, additional aircraft begin rolling off the United CPA on July 1, 2027, and continue to roll off until the final aircraft rolls off on November 30, 2028. In addition to the foregoing, the United CPA is subject to early termination prior to its expiration in various circumstances including: (i) if certain operational performance factors fall below a specified percentage for a specified time, subject to notice under certain circumstances; (ii) if Mesa fails to perform the material covenants, agreements, terms or conditions of the United CPA or similar agreements with United, subject to 30 days' notice and cure rights; (iii) if Mesa becomes insolvent, file bankruptcy, or fails to pay debts when due, United Airlines may terminate the agreement; (iv) if Mesa merges with, or if control of Mesa is acquired by another air carrier or a corporation directly or indirectly owning or controlling another air carrier, without United Airlines' consent; and (v) United Airlines, subject to certain conditions, including the payment of certain costs tied to aircraft type, may terminate the agreement in its discretion, or remove E175 aircraft from service, by giving Mesa notice of 90 days or more. If United Airlines elects to terminate the United CPA in its entirety or permanently remove aircraft from service, Mesa is required to return any of the affected E175 aircraft leased from United Airlines.

If the United CPA is terminated or not renewed, Mesa would be significantly impacted and likely would not have an immediate source of revenue or earnings to offset such loss. United Airlines is not under any obligation to renew the United CPA. A termination or expiration of this agreement would have a material adverse effect on Mesa's financial condition, cash flows, ability to satisfy debt and lease obligations, operating revenues, and net income unless Mesa is able to enter into satisfactory substitute arrangements for the utilization of the affected aircraft by other airline partners, or, alternatively, obtain the airport facilities, gates, ticketing, and ground services and make the other arrangements necessary to fly as an independent airline. Mesa may not be able to enter into substitute CPAs, and any such arrangements Mesa might secure may not be as favorable to Mesa as Mesa's current agreements. Operating an airline independently from United Airlines would be a significant departure from Mesa's business plan and would likely require significant time and resources, which may not be available to Mesa when needed. Upon closing of the transactions contemplated by the Merger Agreement, the United CPA will be replaced with the Go-Forward CPA. For more information regarding the Go-Forward CPA, please see the section titled "*Republic's Business – Capacity Purchase Agreements with Republic's Partners – United Airlines – Go-Forward CPA*" beginning on page 260 of this proxy statement/prospectus.

#### Reduced utilization levels of Mesa's aircraft under the United CPA would have a material adverse impact on Mesa's results of operations and financial condition.
Historically, United Airlines has utilized Mesa's flight operations at levels at or near the maximum capacity of the fleet allocations under the United CPA. As previously reported, Mesa operated at significantly lower block hours during fiscal 2024 due to decreased utilization. All of the aircraft operated by Mesa under the United CPA are owned by United Airlines. While the United CPA does require a specified minimum level of flight operations for Mesa's aircraft, if United Airlines falls below that minimum level, they must pay a penalty, but such penalty amount is not at the full block hour rate otherwise payable under the United CPA. All of the aircraft operated by

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Mesa under the United CPA are owned by United Airlines. United Airlines may remove aircraft from the United CPA with 90 days' prior notice to Mesa. While United Airlines pays Mesa a fixed monthly revenue amount for each aircraft under contract, a return to the low block hours flown in 2024 and/or a significant reduction in the utilization levels of Mesa's fleet in the future or removal of aircraft from the United CPA at United Airlines' election could reduce Mesa's revenues based on the number of flights and block hours flown for United Airlines.

Challenges with hiring, training, and retaining, replacement pilots may also lead to reduced utilization levels of Mesa's aircraft and penalties under the United CPA. Mesa's operations and financial results could be materially and adversely impacted by such events. Additionally, United Airlines may change routes and frequencies of flights, which can negatively impact Mesa's operating efficiencies. Changes in schedules may increase Mesa's flight costs, which could exceed the reimbursed rates paid by United Airlines. Reduced utilization levels of Mesa's aircraft or other changes to Mesa's schedules under the United CPA would adversely impact Mesa's business, financial condition, and results of operations. Upon closing of the transactions contemplated by the Merger Agreement, the United CPA will be replaced with the Go-Forward CPA. For more information regarding the Go-Forward CPA, please see the section titled "*Republic's Business – Capacity Purchase Agreements with Republic's Partners – United Airlines – Go-Forward CPA*" beginning on page 260 of this proxy statement/prospectus.

#### If United Airlines experiences events that negatively impact its financial strength or operations, Mesa's operations also may be negatively impacted.
Mesa may be directly affected by the financial and operating strength of United Airlines. Any events, such as new pandemics, that negatively impact the financial strength of United Airlines or have a long-term effect on the use of United Airlines by airline travelers would likely have a material adverse effect on Mesa's business, financial condition, and results of operations. In the event of a decrease in United Airlines' financial or operational strength, United Airlines may seek to reduce, or be unable to make, the payments due to Mesa under the United CPA. In addition, in some cases, they may further reduce utilization of Mesa's aircraft. Although Mesa receives guaranteed monthly revenue for each aircraft under contract and a fixed fee for each block hour or flight actually flown, should United Airlines schedule flight operations below the minimum level required under the United CPA, United Airlines is only required to pay a penalty, which penalty amount is not at the full block hour rate payable under the United CPA. If United Airlines becomes bankrupt, Mesa's agreement with them may not be assumed in bankruptcy and could be terminated. This and other events, which are outside of Mesa's control, could have a material adverse effect on Mesa's business, financial condition, and results of operations. In addition, any negative events that impact other regional carriers and that affect public perception of such carriers generally could also have a material adverse effect on Mesa's business, financial condition, and results of operations.

***Mesa has a significant amount of debt and other contractual obligations that could impair its liquidity and thereby harm its business, results of operations, and financial condition.***

The airline business is a capital-intensive business, and, as a result, Mesa is highly leveraged. As of June 30, 2025, Mesa had $98.6 million of current debt, excluding finance lease obligations, and $31.7 million of long-term debt, excluding finance leases. Additionally, all outstanding principal amounts, $80.7 million as of June 30, 2025, under the UST Loan are due and payable in a single installment on October 30, 2025. Mesa also has $12.4 million available for borrowing under Mesa's credit and guaranty agreement with United Airlines (the "United Revolving Credit Facility") as of June 30, 2025. As of June 30, 2025, Mesa's principal payments on debt totaled $118.9 million.

As of June 30, 2025, future minimum lease payments due under all long-term operating leases were approximately $8.6 million and future debt service obligations were $140.0 million, including interest payments.

Although Mesa's cash flows from operations and its available capital, including the proceeds from financing transactions and asset sales, have been sufficient to meet its obligations and commitments to date, Mesa intends

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to continue to evaluate strategies to obtain the required additional funding for future operations. These strategies may include, but are not limited to, obtaining equity financing, issuing debt, entering into other financing arrangements, restructuring of operations to grow revenues and decrease expenses, or selling excess aircraft and related assets. No assurance can be given that any sources of capital will be available when needed or, if available, on terms acceptable to Mesa.

***Mesa is required to comply with certain ongoing financial and other covenants under certain credit facilities and leases, and if Mesa fails to meet those covenants or otherwise suffer a default thereunder, its lenders and lessors may accelerate the payment of such obligations.***

Under (i) the United Revolving Credit Facility, Mesa is required to comply with a minimum consolidated interest and rental coverage ratio at the end of each fiscal quarter during the term of such credit facility and a minimum liquidity level, measured at the close of any business day during the term of such credit facility, and (ii) the UST Loan, Mesa is required to comply with a minimum collateral coverage ratio, measured monthly during the term of such credit facility, and a minimum liquidity level, measured at the close of any business day during the term of such credit facility. As of June 30, 2025, Mesa is in compliance with such covenants. In the recent past, Mesa has obtained waivers from its lenders when it failed to comply with these covenants.

Failure to comply with the terms of these credit facilities and financing arrangements and the ongoing financial and other covenants thereunder would result in an event of default (as defined in the applicable credit facility and financing agreement) and, to the extent the applicable lenders so elect, an acceleration of Mesa's existing indebtedness following the expiration of any applicable cure periods, causing such debt to be immediately due and payable. Acceleration of such indebtedness would also trigger cross-default clauses under Mesa's other indebtedness. It could also result in the termination of all commitments to extend further credit under the United Revolving Credit Facility. Mesa currently does not have sufficient liquidity to repay all of its outstanding debt in full if such debt were accelerated. If Mesa is unable to pay its debts as they come due, or obtain waivers for such payments, its secured lenders could foreclose on any assets securing such debt. These events could materially adversely affect Mesa's business, results of operations, and financial condition.

***The loss of key personnel upon whom Mesa depends on to operate its business or the inability to attract additional qualified personnel could adversely affect Mesa's business.***

Mesa believes that its future success will depend in large part on Mesa's ability to retain or attract highly qualified management, technical, and other personnel. Mesa may not be successful in retaining key personnel or in attracting other highly qualified personnel. Among other things, the CARES Act imposes significant restrictions on executive compensation, which will remain in place through the date that is one year after the amounts outstanding under Mesa's Loan and Guarantee Agreement with the U.S. Department of the Treasury are fully repaid. Such restrictions, over time, will likely result in lower executive compensation in the airline industry than is prevailing in other industries which may present retention challenges in the case of executives presented with alternative, non-airline opportunities. Any inability to retain or attract significant numbers of qualified management and other personnel would have a material adverse effect on Mesa's business, results of operations, and financial condition.

***If the supply of pilots to the airline industry becomes constrained and pilot attrition levels increase, Mesa's results of operations and financial condition would be negatively impacted.***

In prior periods, the FAA Qualification Standards (and associated regulations) related to pilot qualification and flight training standards discussed in "Item 1. Government Regulation" dramatically reduced the supply of qualified pilot candidates and negatively impacted Mesa's ability to hire pilots at a rate sufficient to support required utilization levels under Mesa's CPAs, resulting in certain cases issuing credits to United Airlines, temporarily removing aircraft from service under a CPA, or performance penalties.

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More recently, Mesa's operations have been negatively impacted by the severity of the pilot shortages that have plagued the airline industry as whole, and by the associated elevated pilot attrition that Mesa believes disproportionately impacted regional airlines, including Mesa. The magnitude of this attrition in fiscal years 2022 and 2023 created significant backlogs in training, further exacerbating an already challenging environment. These events have had a negative impact on pilot scheduling, work hours, and the number of pilots required to support Mesa's operations.

In August 2022, Mesa entered into a Letter of Agreement with ALPA, which provided for increased overall hourly pay increases of nearly 118% for captains and 172% for new-hire first officers. These measures have positively impacted Mesa's ability to attract, hire, and retain pilots at a sufficient rate in fiscal 2023 and 2024, and attrition rates have returned to pre-covid levels. No assurance can be given that the measures Mesa has taken or may take in the future will enable Mesa to attract, hire, and train pilots at a rate necessary to support Mesa's operations.

In addition to the foregoing, Mesa's pilot premium wage and bonus initiatives have substantially increased Mesa's labor costs and continue to negatively impact Mesa's operations and financial condition. Other regional air carriers have implemented similar measures, which has only served to increase the competition for qualified pilots and the costs associated with hiring pilots. As part of the United CPA, United Airlines has increased rates to cover Mesa's pilot pay increases instituted in September 2022. As such, these increased costs have not materially and adversely impact Mesa's financial condition and results of operations.

If the high levels of pilot attrition return and Mesa is unable to attract, hire, and retain pilots at a rate sufficient to support required utilization levels under the United CPA, Mesa may be required to issue credits or provide offsets to United Airlines, as Mesa has done in the past, and to reduce flight schedules with United Airlines, which has resulted in and may continue to result in monetary performance penalties under the United CPA, as well as give rise to the ability of United Airlines in certain circumstances to elect to remove aircraft from the scope of the United CPA. Should any of these events arise in the future, they could have a material and adverse impact on Mesa's financial condition and results of operations.

#### If pilot attrition were to increase in future periods, Mesa's operations and financial condition may be negatively impacted.
In past periods, Mesa experienced significant volatility in its attrition as a result of pilot wage and bonus increases at other regional air carriers, the growth of cargo, low-cost, and ultra-low-cost carriers, and the number of pilots at major airlines reaching the statutory mandatory retirement age of 65 years. These factors caused Mesa's pilot attrition rates to be higher than its ability to hire and retain replacement pilots, resulting in Mesa's inability to provide flight services at or exceeding the minimum flight operating levels expected by Mesa's major airline partners. If Mesa's attrition rates were to increase in future periods, Mesa's ability to hire and retain replacement pilots may result in the need to request a reduced flight schedule with Mesa's major partner, which may result in operational performance penalties under the United CPA, and materially and adversely affect Mesa's operations and financial results.

#### Mechanic attrition, together with difficulty recruiting and retaining qualified maintenance technicians, may negatively affect Mesa's operations and financial condition.
Mesa's operations rely on qualified personnel, including maintenance technicians. Mesa's maintenance technicians may seek employment at mainline airlines, which generally offer higher salaries and more extensive benefit programs than regional airlines are financially able to offer. Should the turnover of maintenance technicians increase, Mesa may not be able to hire sufficient maintenance technicians to replace those leaving. Additionally, FAA regulations regarding personnel certification and qualifications, and potential future changes in FAA regulations, could limit the number of qualified new entrants that Mesa could hire. In the event Mesa is unable to hire and retain qualified mechanics, Mesa's business, financial condition, or results of operations could be adversely affected.

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#### Increases in Mesa's labor costs could adversely affect Mesa's business, results of operations, and financial condition.
Labor costs represent a substantial portion of Mesa's total operating expenses. As of June 30, 2025, approximately 68.63% of Mesa's workforce was represented by labor unions, including the ALPA and the AFA. Mesa is currently engaged in negotiations with both of these unions for new labor agreements, and the outcome of these negotiations could result in a material increase in Mesa's labor costs.

Mesa has experienced, and may continue to experience, pressure to increase wages and benefits for its employees in order to remain competitive in the marketplace and to attract and retain qualified personnel. Under the United CPA, reimbursement rates for certain operating costs contemplate labor costs on a set schedule. However, Mesa is responsible for its labor costs and is not entitled to receive increased payments from United if labor costs increase above the levels assumed in the reimbursement rates. As a result, a significant increase in labor costs above the levels assumed in Mesa's reimbursement rates could have a material adverse effect on Mesa's results of operations and cash flows.

Mesa's business strategy may require maintaining staffing levels, particularly among pilots and other key personnel, that exceed the minimum necessary to operate its current contractual obligations. These staffing levels may be necessary to position Mesa to accept new business, acquire additional aircraft, and expand its fleet in the future. During periods in advance of anticipated growth, or in the event that Mesa is unable to achieve expected fleet expansion or capacity growth, the cost of carrying excess employees could result in a material adverse effect on Mesa's results of operations and cash flows.

The airline industry is highly competitive for skilled labor, particularly pilots and maintenance personnel. In response to industry-wide increases in attrition and wage escalation, Mesa may be required to increase wages, offer signing bonuses, or enhance benefits to attract and retain employees. Such actions could further increase Mesa's labor costs. If Mesa is unable to attract and retain qualified personnel, or if it is required to pay significantly higher wages and benefits, Mesa's ability to operate its business efficiently and profitably could be adversely affected.

Any significant increase in Mesa's labor costs, whether as a result of union negotiations, market pressures, or strategic staffing decisions, could materially and adversely affect Mesa's business, results of operations, and financial condition. There can be no assurance that Mesa will be able to offset increased labor costs through higher reimbursement rates or other means. For a discussion of related risks under the United CPA, please see the section titled "*Risk Factors – Risks Related to Mesa's Business – The amounts Mesa receives under the United CPA may be less than the corresponding costs Mesa incurs*" beginning on page 60 of this proxy statement/prospectus.

***United Airlines may expand its direct operation of regional jets or seek other independent airlines to service their regional aircraft needs, thus limiting the expansion of Mesa's relationships with them.***

Mesa depends on United Airlines electing to contract with it instead of operating their own regional jets or operating their own "*captive*" regional airlines through wholly owned subsidiaries. Currently, the captive regional airlines include Endeavor (owned by Delta Air Lines), Envoy (subsidiary of the parent company of American Airlines), PSA (subsidiary of the parent company of American Airlines), Piedmont (subsidiary of the parent company of American Airlines), and Horizon (owned by Alaska). These major airlines possess the financial and other resources to acquire and operate their own regional jets, create, or grow their own captive regional airlines, or acquire other regional air carriers instead of entering into contracts with Mesa. Mesa has no guarantee that in the future United Airlines will choose to enter into contracts with Mesa, or renew their existing agreements with Mesa, instead of operating their own regional jets, allocating flying to their captive regional airlines, or entering into relationships with competing regional airlines. A decision by United Airlines to phase out or limit the United CPA or to enter into similar agreements with Mesa's competitors would have a material adverse effect on Mesa's business, financial condition, or results of operations.

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***Mesa may be limited from expanding its flying within United Airlines flight systems and there are constraints on Mesa's ability to provide services to airlines other than United Airlines.***

Additional growth opportunities within United Airlines' flight system are limited by various factors, including a limited number of independent regional aircraft that United Airlines can operate in its regional network due to "*scope*" clauses in the current CBAs with their pilots that restrict the number and size of regional jets that may be operated in their flight systems not flown by their pilots. Except as contemplated by the existing agreement, Mesa cannot be sure that United Airlines will contract with it to fly any additional aircraft.

Mesa may not have additional growth opportunities or may agree to modifications to the agreement that reduce certain benefits to Mesa in order to obtain additional aircraft, or for other reasons. Given the competitive nature of the airline industry, Mesa believes limited growth opportunities may result in competitors accepting reduced margins and less favorable contract terms in order to secure new or additional capacity purchase operations. Even if Mesa is offered growth opportunities by United Airlines, those opportunities may involve economic terms or financing commitments that are unacceptable to Mesa. Additionally, United Airlines may reduce the number of regional jets in its system by not renewing or extending existing flying arrangements with regional operators or transitioning those flying arrangements to their own captive regional carriers. Any one or more of these factors may reduce or eliminate Mesa's ability to expand its flight operations with United Airlines.

Additionally, the United CPA limits Mesa's ability to provide regional flying services to other airlines in certain major airport hubs of United Airlines. These restrictions may make Mesa a less attractive partner to other major airlines whose regional flying needs do not align with Mesa's geographical restrictions.

#### The amounts Mesa receives under the United CPA may be less than the corresponding costs Mesa incurs.
Under the United CPA, a portion of Mesa's compensation is based upon pre-determined rates typically applied to production statistics (such as departures and block hours flown). The primary operating costs intended to be compensated by the pre-determined rates include labor costs, including crew training costs, certain aircraft maintenance expenses, and overhead costs. If Mesa's operating costs for labor, aircraft maintenance, and overhead costs exceed the compensation earned from the pre-determined rates under Mesa's agreement, Mesa's financial position and operating results will be negatively affected.

#### Strikes, labor disputes, and increased unionization of Mesa's workforces may adversely affect Mesa's ability to conduct its business and reduce Mesa's profitability.
As of June 30, 2025, approximately 68.63% of Mesa's workforce was represented by labor unions, including the ALPA and the AFA. In August 2022, Mesa entered into a Letter of Agreement with the ALPA, which provided for increased overall hourly pay increases of nearly 118% for captains and 172% for new-hire first officers. These pay increases have positively impacted Mesa's ability to attract, hire, and retain pilots in fiscal 2023 and 2024, and attrition levels have dropped to pre-covid levels.

The inability to negotiate acceptable contracts with existing unions or with new unions could result in work stoppages by the affected workers, lost revenues resulting from the cancellation of flights and increased operating costs as a result of higher wages or benefits paid to union members. The terms and conditions of Mesa's future CBAs may be affected by the results of collective bargaining negotiations at other airlines that may have a greater ability, due to larger scale, greater efficiency, or other factors, to bear higher costs than Mesa can. In addition, if Mesa is unable to reach agreement with any of its unionized work groups in future negotiations regarding the terms of their CBAs, Mesa may be subject to work interruptions, stoppages, or shortages. Mesa may also become subject to additional CBAs in the future as non-unionized workers may unionize. Mesa's labor agreements with the ALPA and AFA are amendable as of June 30, 2025. Mesa is also subject to various ongoing employment disputes outside of the CBAs. Mesa considers these disputes to not be material, but any current or future dispute could become material.

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Relations between air carriers and labor unions in the United States are governed by the RLA. Under the RLA, CBAs generally contain "amendable dates" rather than expiration dates, and the RLA requires that a carrier maintain the existing terms and conditions of employment following the amendable date through a multi-stage and usually lengthy series of bargaining processes overseen by the NMB. This process continues until either the parties have reached agreement on a new collective bargaining agreement, or the parties have been released to "self-help" by the NMB. In most circumstances, the RLA prohibits strikes; however, after release by the NMB, carriers and unions are free to engage in self-help measures such as lockouts and strikes.

Any strike, labor dispute, or increased unionization among Mesa's employees could disrupt Mesa's operations, reduce Mesa's profitability, or interfere with the ability of Mesa's management to focus on executing Mesa's business strategies. For example, if a labor strike were to continue for a specified number of consecutive days or longer, United Airlines may have cause to terminate the United CPA. As a result, Mesa's business, results of operations, and financial condition may be materially adversely affected.

#### Mesa may incur substantial maintenance costs as part of its leased aircraft return obligations.
Mesa's aircraft lease agreements contain provisions that require Mesa to return aircraft airframes and engines to the lessor in a specified condition or pay an amount to the lessor based on the actual return condition of the equipment. These lease return costs are recorded in the period in which they are incurred. Mesa estimates the cost of maintenance lease return obligations and accrue such costs over the remaining lease term when the expense is probable and can be reasonably estimated. Any unexpected increase in maintenance return costs may negatively impact Mesa's financial position and results of operations.

***Mesa may become involved in litigation, including securities class action litigation and other legal proceedings, which could have a material adverse effect on its business, financial condition, and results of operations.***

From time to time, Mesa may become involved in various legal proceedings and claims arising in the ordinary course of business, including, but not limited to, employment, commercial, contractual, product liability, class action, whistleblower, and other litigation, as well as governmental and regulatory investigations and proceedings. In particular, significant business transactions, such as the Merger, often result in increased risk of litigation, including securities class action lawsuits and shareholder derivative actions, as well as investigations by the SEC or other regulatory authorities, even if no wrongdoing is alleged or established.

Litigation and regulatory proceedings can be unpredictable, time-consuming, and costly, regardless of the merits of the claims. Such matters may divert management's attention and resources from the operation of Mesa's business, require significant expenditures for legal fees and other costs, and could result in substantial damages, fines, penalties, or injunctive relief. In some cases, Mesa may determine to settle disputes or claims, even when it believes it has valid defenses, in order to avoid the uncertainty, expense, and distraction of protracted litigation.

Additionally, the stock market in general, and the airline industry in particular, have experienced significant price and volume volatility, which has often been unrelated or disproportionate to the operating performance of individual companies. Such volatility can increase the likelihood of securities class action litigation against Mesa, which could further adversely affect its reputation, business, and financial results.

Although Mesa maintains insurance coverage for certain types of claims and liabilities, such insurance may not be sufficient to cover all costs, damages, or losses that may arise from litigation or regulatory proceedings. In addition, insurance coverage may be subject to significant deductibles, limitations, or exclusions, and there can be no assurance that such coverage will continue to be available on acceptable terms or at all.

Because the outcome of litigation and regulatory proceedings is inherently uncertain, Mesa cannot predict with certainty the ultimate resolution of any such matters or the potential impact they may have on its business,

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financial condition, results of operations, or the ability to consummate the Merger or the value ultimately received by Mesa's stockholders in connection with any such transaction. Any adverse outcome in one or more of these proceedings could have a material adverse effect on Mesa's business, reputation, financial condition, and results of operations.

#### Disagreements regarding the interpretation of the United CPA could have an adverse effect on Mesa's operating results and financial condition.
To the extent that Mesa experiences disagreements regarding the interpretation of the United CPA, Mesa will likely expend valuable management time and financial resources in its efforts to resolve those disagreements. Those disagreements may result in litigation, arbitration, settlement negotiations, or other proceedings. Furthermore, there can be no assurance that any or all of those proceedings, if commenced, would be resolved in Mesa's favor or that Mesa would be able to exercise sufficient leverage in any related proceeding to achieve a favorable outcome. An unfavorable result in any such proceeding could have adverse financial consequences or require Mesa to modify its operations. Such disagreements and their consequences could have an adverse effect on Mesa's operating results and financial condition.

#### Mesa relies on third-party suppliers as the sole manufacturers of its aircraft and aircraft engines, which exposes Mesa to significant operational and financial risks.
Mesa depends upon Embraer as the sole manufacturer of its aircraft and GE as the sole manufacturer of its aircraft engines. Mesa's reliance on a limited number of original equipment manufacturers ("OEMs") for its fleet and engines exposes it to a variety of risks, including, but not limited to:

• *Supply Chain Disruptions:* The failure or inability of Embraer, GE, or other OEMs to provide sufficient parts, components, or related support services on a timely basis could materially and adversely affect Mesa's ability to maintain its fleet and operate scheduled flights. Such disruptions may result from manufacturing delays, labor disputes, supply chain interruptions, or financial difficulties experienced by the OEMs or their suppliers.

• *Unscheduled or Unanticipated Maintenance*: Mesa's operations could be interrupted by unscheduled or unanticipated maintenance requirements for its aircraft or engines. If Mesa is unable to obtain necessary parts or support promptly, it may be forced to ground aircraft, leading to flight cancellations, loss of revenue, and potential harm to customer relationships.

• *Regulatory Actions and Safety Directives*: The issuance of directives, airworthiness notices, or other regulatory actions by the FAA, DOT, or comparable foreign authorities could restrict or prohibit the use of certain aircraft or engines, or require time-consuming inspections, modifications, or maintenance. Compliance with such directives may result in increased costs and operational disruptions.

• *Tariffs and Trade Restrictions*: The imposition of tariffs, trade restrictions, or changes in customs regulations could increase the cost of parts and components or delay their delivery, further impacting Mesa's ability to maintain its fleet and operate efficiently.

• *Adverse Public Perception*: Accidents, incidents, or other adverse publicity involving Embraer aircraft, GE engines, or other OEM products—whether or not involving Mesa's operations—could negatively impact public perception of the safety and reliability of Mesa's fleet, potentially reducing demand for Mesa's services *.* 

• *Limited Flexibility and Growth Constraints*: Mesa's current operations are based on a single aircraft and engine type. This concentration may limit Mesa's ability to compete for new business opportunities that require different aircraft types, potentially constraining growth. If Mesa seeks to diversify its fleet by introducing aircraft from other manufacturers, it would need to develop new operational capabilities, including training for pilots, flight attendants, and maintenance personnel. Such diversification could reduce operational efficiencies and increase costs

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• *Dependence on OEM Support*: Mesa's ability to operate safely and efficiently depends on the ongoing technical support, training, and software updates provided by Embraer and GE. Any reduction in the level or quality of support from these OEMs could adversely affect Mesa's operations.

Any of the foregoing risks, individually or in the aggregate, could have a material adverse effect on Mesa's business, financial condition, and results of operations.

#### Reliance on third-party service providers may adversely affect Mesa's operations and financial results.
Mesa relies extensively on third-party vendors and contractors to provide a wide range of essential services and functions critical to its business operations. These services include, but are not limited to, aircraft maintenance, parts procurement, component overhaul, pilot simulators, ground facilities, fueling, information technology infrastructure, and engine support. Key service providers include AAR and CAE for fixed-rate parts procurement, component overhaul, and pilot simulators, as well as GE and Standard Aero for engine support. Mesa's dependence on these third-party service providers exposes it to several risks that could materially and adversely affect its business, financial condition, and results of operations:

• *Service Disruption and Performance Risks*: If any third-party provider fails to perform its contractual obligations, experiences operational difficulties, or provides substandard or untimely service, Mesa may face increased costs, operational delays, maintenance issues, or safety concerns. Such disruptions could negatively impact Mesa's ability to meet its operational needs and contractual obligations to its partners and customers.

• *Vendor Financial Stability and Market Changes*: The financial health of Mesa's service providers is outside of Mesa's control. If a key vendor were to experience financial distress, declare bankruptcy, cease operations, or exit the market, Mesa may not be able to secure replacement services on favorable terms, or at all. Additionally, significant changes in the competitive landscape among suppliers, such as consolidation or unionization, could reduce Mesa's bargaining power or force renegotiation of existing agreements on less favorable terms.

• *Contractual Limitations and Termination*: Many of Mesa's agreements with third-party providers, including those with AAR and other critical vendors, are subject to termination upon notice. If any of these contracts are terminated, Mesa may not be able to replace the services in a timely or cost-effective manner, which could disrupt operations and increase costs.

• *Regulatory and Compliance Risks*: Third-party providers are subject to various regulatory requirements. Non-compliance by a vendor could result in regulatory actions that disrupt Mesa's operations or require Mesa to seek alternative providers.

• *Reputational Impact*: Any failure by a third-party provider that results in operational disruptions, safety incidents, or customer dissatisfaction could harm Mesa's reputation and relationships with its partners and customers.

Given the critical nature of these third-party services, any significant disruption, delay, or deficiency in the performance of these vendors could have a material adverse effect on Mesa's business, financial condition, and results of operations. Mesa's ability to mitigate these risks may be limited by the availability of alternative providers, the terms of existing agreements, and the competitive dynamics of the supplier marketplace.

#### Regulatory changes or tariffs could negatively impact Mesa's business and financial condition.
Mesa imports a substantial portion of the equipment utilized in its operations. For example, the sole manufacturers of Mesa's regional aircraft, MHI and Embraer, are headquartered in Japan and Brazil, respectively. Mesa cannot predict the impact of potential regulatory changes or action by U.S. regulatory agencies, including the potential impact of tariffs or changes in international trade treaties on the cost and timing of parts and aircraft. Mesa's business may be subject to additional costs as a result of potential regulatory changes, which could have an adverse effect on Mesa's operations and financial results.

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#### The issuance of operating restrictions applicable to the fleet type Mesa operates could negatively impact Mesa's business and financial condition.
Mesa relies solely on the E175 type aircraft. The issuance of FAA or manufacturer directives restricting or prohibiting the use of the E175 aircraft could negatively impact Mesa's business and financial results.

***Mesa is increasingly dependent on technology, and if its technology fails, it does not adequately continue to invest in new technology, or it is the subject of any cybersecurity incidents or other disruptions to its information technology infrastructure, Mesa's business, operations, and financial condition may be adversely affected.***

Mesa's ability to compete effectively, manage its operations, and meet the expectations of its partners and customers is increasingly reliant on the performance, reliability, and security of its technology systems, as well as those of its major partners, including United Airlines. Mesa depends on a wide range of technology to support critical business functions, including flight operations, supply chain logistics, crew scheduling and communications, maintenance tracking, and customer service. The continued effectiveness of these systems is essential to Mesa's ability to operate efficiently, reduce costs, and respond to the demands of the current business environment.

Mesa's technology initiatives require significant and ongoing capital investments. If Mesa is unable to make necessary investments in new or upgraded technology, or if such investments do not deliver the expected benefits, Mesa's business and operations could be negatively impacted. In addition, any internal technological error or failure, or large-scale external interruption in the information systems, networks, hardware, software, or technological infrastructure that Mesa depends on—including U.S. air traffic control systems, power, telecommunications, or the internet—may disrupt Mesa's internal network, impair its ability to conduct business, lower the utilization of its aircraft, negatively impact its reputation, reduce revenue, and result in increased costs.

Mesa's technological systems (including those provided by third parties) and those of its major partners are vulnerable to a variety of sources of interruption and risk, many of which are beyond Mesa's control. These include, but are not limited to, natural disasters, terrorist attacks, telecommunications or IT system failures, computer viruses, hackers, and other security issues. The risk of cybersecurity incidents is continually increasing and evolving, with threat actors—including state-sponsored organizations, opportunistic hackers, and hacktivists—employing increasingly sophisticated techniques and tools, such as artificial intelligence, to circumvent security controls, evade detection, and remove forensic evidence. Attack vectors may include social engineering, phishing, security breaches, malfeasance by insiders, human or technological error, malicious code, misconfigurations, or vulnerabilities in commercial software integrated into Mesa's systems.

As part of its ordinary business operations, Mesa collects and stores sensitive data, including personal information of its employees and information related to its business partners. Unauthorized parties may attempt to gain access to Mesa's systems or data through fraud or other means of deception. The methods used to obtain unauthorized access, disable or degrade service, or sabotage systems are constantly evolving and may be difficult to anticipate, detect, investigate, remediate, or recover from for extended periods of time. Despite Mesa's efforts to implement robust security measures, it may not be able to prevent all data security breaches or misuse of data.

A compromise of Mesa's technology systems, or those of its partners, resulting in the loss, disclosure, misappropriation of, or unauthorized access to, sensitive information could result in legal claims or proceedings, liability, or regulatory penalties under laws protecting the privacy of personal information, disruption to Mesa's operations, and damage to Mesa's reputation. Any of these events could adversely affect Mesa's business, financial condition, and results of operations.

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***Mesa is subject to various environmental and noise laws and regulations, which could have a material adverse effect on Mesa's business, results of operations, and financial condition.***

Mesa is subject to increasingly stringent federal, state, local, and foreign laws, regulations, and ordinances relating to the protection of the environment and noise, including those relating to emissions to the air, discharges (including storm water discharges) to surface and subsurface waters, safe drinking water and the use, management, disposal and release of, and exposure to, hazardous substances, oils, and waste materials. Mesa is or may be subject to new or proposed laws and regulations that may have a direct effect (or indirect effect through Mesa's third-party specialists or airport facilities at which Mesa operates) on Mesa's operations. In addition, U.S. airport authorities are exploring ways to limit de-icing fluid discharges. Any such existing, future, new, or potential laws and regulations could have an adverse impact on Mesa's business, results of operations, and financial condition.

Similarly, Mesa is subject to environmental laws and regulations that require Mesa to investigate and remediate soil or groundwater to meet certain remediation standards. Under certain laws, generators of waste materials, and current and former owners or operators of facilities, can be subject to liability for investigation and remediation costs at locations that have been identified as requiring response actions. Liability under these laws may be strict, joint and several, meaning that Mesa could be liable for the costs of cleaning up environmental contamination regardless of fault or the amount of wastes directly attributable to it.

#### Mesa's ability to utilize its net operating loss carryforwards and certain other tax attributes may be limited.
As of June 30, 2025, Mesa had aggregate federal and state NOLs of approximately $277.6 million and $150.6 million, which expire in fiscal years 2030-2038 and 2024-2043, respectively. Approximately $194.2 million of Mesa's federal NOL carryforwards are not subject to expiration. Mesa's unused losses generally carry forward to offset future taxable income, if any, until such unused losses expire. Mesa may be unable to use these losses to offset income before such unused losses expire. However, U.S. federal net operating losses generated in fiscal years 2018 and forward are not subject to expiration and are only available to offset eighty percent of taxable income each year due to changes in tax law attributable to the passage of Tax Cuts and Jobs Act. In addition, if a corporation undergoes an "ownership change" (generally defined as a greater than 50% cumulative change in the equity ownership of certain shareholders over a rolling three-year period) under Section 382 of the Code, the corporation's ability to use its pre-change NOL carryforwards and other pre-change tax attributes to offset future taxable income or taxes may be limited. Mesa has experienced ownership changes in the past and may experience ownership changes as a result of future changes in stock ownership (some of which changes may not be within Mesa's control). Mesa expects the Merger to result in an ownership change for U.S. federal income tax purposes. These ownership changes could materially reduce or eliminate Mesa's ability to use its losses or tax attributes to offset future taxable income or tax and have an adverse effect on Mesa's future cash flows.

#### Mesa's ability to obtain financing or access capital markets may be limited.
There are a number of factors that may limit Mesa's ability to raise financing or access capital markets in the future, including its significant debt and future contractual obligations, its liquidity and credit status, its operating cash flows, the market conditions in the airline industry, U.S. and global economic conditions, the general state of the capital markets, and the financial position of the major providers of commercial aircraft financing. Mesa cannot assure you that it will be able to source external financing for future aircraft acquisitions or for other significant capital needs, and if Mesa is unable to source financing on acceptable terms, or unable to source financing at all, its business could be materially adversely affected. To the extent Mesa finances its activities with additional debt, Mesa may become subject to additional financial and other covenants that may restrict its ability to pursue its business strategy or otherwise constrain its growth and operations.

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#### Negative publicity regarding Mesa's customer service could have a material adverse effect on Mesa's business, results of operations, and financial condition.
Mesa's business strategy includes the implementation of United Airlines' brand and product in order to increase customer loyalty and drive future ticket sales. In addition, Mesa also receives certain amounts or incur penalties under the United CPA upon the results of certain performance metrics. However, Mesa may experience a high number of passenger complaints related to, among other things, Mesa's customer service. These complaints, together with delayed and cancelled flights, and other service issues, are reported to the public by the DOT. If Mesa does not meet United Airlines' expectations with respect to reliability and service, Mesa and United Airlines' brand and product could be negatively impacted, which could result in customers deciding not to fly with United Airlines or with Mesa. If Mesa is unable to provide consistently high-quality customer service, it could have an adverse effect on Mesa's relationships with United Airlines.

***Mesa's failure to be current in its SEC filings could pose significant risks to Mesa's business, each of which could materially and adversely affect Mesa's financial condition and results of operations.***

Under the Exchange Act, Mesa, as reporting company, is required to provide investors on a regular basis with periodic reports that contain important financial and business information. Examples of these reports include the annually filed Form 10-K and the quarterly filed Form 10-Q. The timely and complete submission of periodic reports provides investors with information to help them make informed investment decisions. Mesa's inability to timely file its periodic reports with the SEC, as occurred with Mesa's Annual Report on Form 10-K for the fiscal years ended September 30, 2024 and 2023, and Quarterly Reports on Form 10-Q for the periods ended December 31, 2023, March 31, 2024, June 30, 2024, December 31, 2024, and March 31, 2025 could have an adverse impact on Mesa's ability to, among other things, (i) remain listed on the Nasdaq Stock Market, (ii) access its credit facilities, (iii) attract and retain key employees, and (iv) raise funds in the public markets, any of which could materially and adversely affect Mesa's financial condition and results of operations.

#### Risks Related to Mesa's Industry

#### The airline industry is highly competitive and has undergone significant consolidation and transition, which could adversely affect Mesa's operating results and financial condition.
The airline industry is characterized by intense competition and ongoing consolidation, resulting in fewer potential major partners and increased challenges for regional carriers like Mesa. Mesa competes primarily with other regional airlines, some of which are owned by or operate as partners of major airlines. In many cases, Mesa's competitors are larger and possess significantly greater financial, operational, and marketing resources than Mesa does, which may enable them to operate more efficiently, withstand industry downturns, and secure more favorable contractual terms with major airline partners. Competition in the regional airline industry is based on a variety of factors, including, but not limited to:

• *Labor resources*: The availability and cost of qualified pilots, flight attendants, maintenance technicians, and dispatchers are critical to Mesa's operations. Competition for these skilled employees is intense, and shortages or increased labor costs could adversely affect Mesa's ability to operate efficiently and profitably.

• *Operating costs*: Maintaining low operating costs is essential to remaining competitive. Mesa's ability to control costs, including fuel, maintenance, and labor, directly impacts Mesa's competitiveness and profitability.

• *Financial resources*: Access to capital and the ability to finance aircraft and other assets on competitive terms are important competitive factors. Larger competitors may have greater access to capital markets and more favorable financing terms.

• *Geographical infrastructure*: The location and quality of our operational infrastructure, including maintenance bases and crew domiciles, can affect Mesa's ability to attract and retain business from major airline partners.

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• *Service levels*: Mesa's performance in areas such as on-time arrivals, flight completion rates, and customer service is closely monitored by United Airlines and can influence Mesa's ability to secure and retain CPAs.

Mesa's business model relies heavily on its relationships with major airline partners, who contract with Mesa to provide regional service under CPAs. The consolidation of major airlines, such as the mergers between Alaska Airlines and Hawaiian Airlines in 2024, Alaska Airlines and Virgin America Inc. in 2016, American Airlines and US Airways in 2013, Southwest Airlines Co. and AirTran Airways in 2011, United Airlines and Continental Airlines in 2010, and Delta Air Lines and Northwest Airlines in 2008, has reduced the number of potential partners and increased the bargaining power of the remaining major carriers. Any further consolidation or significant alliance activity within the airline industry could further limit Mesa's opportunities to enter into or renew CPAs on favorable terms, or at all.

In addition to direct competition from other regional airlines, Mesa faces indirect competition from low-cost and ultra-low-cost carriers, which may compete with Mesa's major airline partners on routes Mesa operates. Some carriers operate point-to-point service, bypassing traditional hub-and-spoke models, which can reduce demand for regional feeder services like Mesa's.

The airline industry is also subject to rapid changes in technology and evolving consumer preferences. Advances in electric-powered aircraft or other alternative technologies could alter the competitive landscape, potentially requiring significant capital expenditures or resulting in reduced demand for Mesa's services. Additionally, the proliferation of video teleconferencing and other electronic communication methods may reduce demand for business travel, further impacting Mesa's business.

Federal deregulation of the airline industry allows competitors to rapidly enter Mesa's markets and to quickly discount and restructure fares. The industry is particularly susceptible to price discounting, as airlines incur only nominal incremental costs to provide service to passengers occupying otherwise unsold seats. This dynamic can lead to aggressive fare competition and pressure on Mesa's margins.

If Mesa is unable to compete effectively, maintain favorable relationships with its major airline partners, or adapt to changes in the industry, Mesa's business, financial condition, and results of operations could be materially and adversely affected.

#### Mesa is subject to extensive and evolving governmental regulation, which imposes significant costs and operational risks.
The airline industry is subject to extensive and complex regulation by multiple federal, state, local, and, in some cases, international authorities. Mesa, as an interstate air carrier, is regulated primarily by the DOT, the FAA, and the TSA, among other agencies. These agencies have broad authority to issue and enforce regulations, directives, orders, and guidance that affect virtually every aspect of Mesa's operations, including but not limited to, safety, maintenance, security, consumer protection, and competitive practices.

Over the past several years, Congress and federal agencies have enacted and implemented numerous laws and regulations that have required Mesa to make significant expenditures. These include, but are not limited to, requirements related to the retirement of aged aircraft, installation of advanced safety and collision avoidance systems, noise abatement, enhanced inspection and maintenance procedures, and compliance with pilot and flight attendant rest rules. Mesa expects to continue to incur substantial costs to comply with existing and future regulatory requirements, including those arising from the recent five-year FAA reauthorization, which includes policy changes related to aviation safety, air traffic control modernization, and workforce development. The implementation of these new requirements, and the manner in which they are enforced, could materially increase Mesa's operating costs.

Mesa's ability to operate its aircraft is dependent on maintaining necessary certifications, permits, and approvals from the FAA and other authorities. Any inability to secure or maintain these approvals, particularly

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during periods of government shutdowns, agency closures, or employee furloughs, could adversely affect Mesa's operations. Additionally, a decision by the FAA or other regulatory body to ground, or require time-consuming inspections or maintenance of, all or any portion of Mesa's fleet—whether due to safety concerns, regulatory changes, or other reasons—could materially disrupt Mesa's operations and have a material adverse effect on its financial results.

In addition to federal oversight, airports and local municipalities impose their own rules and regulations that affect Mesa's operations. These may include restrictions on aircraft usage, noise limitations, curfews, and increased airport rates and charges. The imposition of any such limits or increased costs at airports where Mesa operates could interfere with Mesa's contractual obligations and business operations, potentially resulting in lost revenue or increased expenses. Consumer Protection and Competitive Practices

The DOT has broad authority over airline consumer and competitive practices and has issued numerous regulations and pursued enforcement actions in areas such as lengthy tarmac delays, consumer notice requirements, customer service commitments, contracts of carriage, and the transportation of passengers with disabilities. Recent regulatory developments include new rules regarding refunds, baggage fees, disclosure of ancillary service fees, and accommodations for passengers with disabilities. Compliance with these evolving requirements may require Mesa to modify its business practices and systems, potentially resulting in additional costs and operational complexity.

Mesa cannot predict the nature, scope, or impact of future laws, regulations, or government policies, nor can it guarantee that it will be able to comply with all present and future requirements. Changes in the regulatory environment, the introduction of new taxes or fees, or the adoption of more stringent operational or safety standards could significantly increase Mesa's costs of doing business or reduce demand for air travel. Failure to comply with applicable laws and regulations could result in fines, penalties, or other enforcement actions, any of which could have a material adverse effect on Mesa's business, financial condition, and results of operations.

The extensive and evolving regulatory environment in which Mesa operates imposes significant costs and operational risks. Any material changes in the regulatory landscape, or Mesa's failure to comply with applicable requirements, could have a material adverse effect on Mesa's operations, financial condition, and results of operations.

***Airlines are often affected by factors beyond their control, including: air traffic congestion at airports; air traffic control inefficiencies; adverse weather conditions, such as hurricanes or blizzards; increased security measures; new travel-related taxes; or the outbreak of disease; any of which could have a material adverse effect on Mesa's business, results of operations, and financial condition.***

Like other airlines, Mesa's business is affected by factors beyond its control, including air traffic congestion at airports, air traffic control inefficiencies, increased security measures, new travel-related taxes and fees, adverse weather conditions, natural disasters, and the outbreak of disease. Factors that cause flight delays frustrate passengers and increase operating costs and decrease revenues, which in turn could adversely affect profitability. The federal government singularly controls all U.S. airspace, and airlines are completely dependent on the FAA to operate that airspace in a safe, efficient, and affordable manner. The air traffic control system, which is operated by the FAA, faces challenges in managing the growing demand for U.S. air travel. U.S. and foreign air-traffic controllers often rely on outdated technologies that routinely overwhelm the system and compel airlines to fly inefficient, indirect routes resulting in delays. In addition, there are currently proposals before Congress that could potentially lead to the privatization of the United States' air traffic control system, which could adversely affect Mesa's business. Further, implementation of the Next Generation Air Transport System by the FAA would result in changes to aircraft routings and flight paths that could lead to increased noise complaints and lawsuits, resulting in increased costs. There are additional proposals before Congress that would treat a wide range of consumer protection issues, including, among other things, proposals to regulate seat size, which could increase the costs of doing business.

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Adverse weather conditions and natural disasters, such as hurricanes, winter snowstorms, or earthquakes, can cause flight cancellations or significant delays. Cancellations or delays due to adverse weather conditions or natural disasters, air traffic control problems or inefficiencies, breaches in security or other factors may affect Mesa to a greater degree than other, larger airlines that may be able to recover more quickly from these events, and therefore could have a material adverse effect on Mesa's business, results of operations, and financial condition to a greater degree than other air carriers. Any general reduction in airline passenger traffic could have a material adverse effect on Mesa's business, results of operations, and financial condition.

#### Terrorist activities or warnings have dramatically impacted the airline industry and will likely continue to do so.
The terrorist attacks of September 11, 2001 and their aftermath have negatively impacted the airline industry in general, including Mesa's operations. If additional terrorist attacks are launched against the airline industry, there will be lasting consequences of the attacks, which may include loss of life, property damage, increased security, and insurance costs, increased concerns about future terrorist attacks, increased government regulation, and airport delays due to heightened security. Mesa cannot provide any assurance that these events will not harm the airline industry generally or Mesa's operations or financial condition in particular.

#### The occurrence of an aviation accident involving Mesa's aircraft would negatively impact Mesa's operations and financial condition.
An accident or incident involving Mesa's aircraft could result in significant potential claims of injured passengers and others, as well as repair or replacement of a damaged aircraft and its consequential temporary or permanent loss from service. In the event of an accident, Mesa's liability insurance may not be adequate to offset its exposure to potential claims and Mesa may be forced to bear substantial losses from the accident. Substantial claims resulting from an accident in excess of Mesa's related insurance coverage would harm Mesa's operational and financial results. Moreover, any aircraft accident or incident, even if fully insured, could cause a public perception that Mesa's operations are less safe or reliable than other airlines.

#### Risks Related to Owning Mesa Common Stock

#### The market price of Mesa common stock may be volatile, which could cause the value of an investment in Mesa stock to decline.
The market price of Mesa common stock may fluctuate substantially due to a variety of factors, many of which are beyond Mesa's control, including: (i) announcements concerning Mesa's major partners, competitors, the airline industry, or the economy in general; (ii) strategic actions by Mesa, Mesa's major partners, or Mesa's competitors, such as acquisitions or restructurings; (iii) media reports and publications about the safety of Mesa's aircraft or the types of aircraft Mesa operates; (iv) new regulatory pronouncements and changes in regulatory guidelines; (v) announcements concerning the availability of the types of aircraft Mesa uses; (vi) significant volatility in the market price and trading volume of companies in the airline industry; (vii) changes in financial estimates or recommendations by securities analysts or failure to meet analysts' performance expectations; (viii) sales of Mesa common stock or other actions by insiders or investors with significant shareholdings, including sales by Mesa's principal shareholders; and (ix) general market, political and other economic conditions; and (x) in response to the risk factors described in this proxy statement/prospectus.

The stock markets in general have experienced substantial volatility that has often been unrelated to the operating performance of particular companies. Broad market fluctuations may materially adversely affect the trading price of Mesa common stock. In the past, shareholders have sometimes instituted securities class action litigation against companies following periods of volatility in the market price of their securities. Any similar litigation against Mesa could result in substantial costs, divert management's attention and resources, and have a material adverse effect on Mesa's business, results of operations, and financial condition.

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***If securities or industry analysts do not publish research or reports about Mesa's business or publish negative reports about Mesa's business, Mesa's stock price and trading volume could decline.***

The trading market for Mesa common stock depends in part on the research and reports that securities and industry analysts may publish about Mesa or Mesa's business. If one or more of the analysts who cover Mesa downgrade Mesa stock or publish inaccurate or unfavorable research about Mesa's business, the trading price of Mesa common stock would likely decline. If one or more of these analysts ceases to cover Mesa or fails to publish reports on Mesa regularly, demand for Mesa's stock could decrease, which may cause the trading price of Mesa common stock and the trading volume of Mesa common stock to decline.

#### The value of Mesa common stock may be materially adversely affected by additional issuances of common stock underlying Mesa's outstanding warrants.
As of June 30, 2025, Mesa had outstanding warrants to purchase an aggregate of 4,899,497 shares of Mesa common stock, all of which were issued to the U.S. Treasury pursuant to the terms of the Loan and Guarantee Agreement dated October 30, 2020. The warrants have a term of five years from the date of issuance and an initial exercise price of $3.98 per share. Any future warrant exercises by the U.S. Treasury, or any authorized transferee of the U.S. Treasury, will be dilutive to Mesa's existing common shareholders. Sales of substantial amounts of Mesa common stock in the public or private market, a perception in the market that such sales could occur, or the issuance of securities exercisable into Mesa common stock, could adversely affect the prevailing price of Mesa common stock.

#### Provisions in Mesa's charter documents might deter acquisition bids for Mesa, which could adversely affect the price of Mesa common stock.
Mesa's Charter and amended and restated bylaws contain provisions that, among other things:

• authorize Mesa's board of directors, without shareholder approval, to designate and fix the voting powers, designations, preferences, limitations, restrictions, and relative rights of one or more series of preferred stock so designated, or right to acquire such preferred stock;

• dilute the interest of, or impair the voting power of, holders of Mesa common stock and could also have the effect of discouraging, delaying, or preventing a change of control;

• establish advance notice procedures that shareholders must comply with in order to nominate candidates to Mesa's board of directors and propose matters to be brought before an annual or special meeting of Mesa shareholders, which may discourage or deter a potential acquirer from conducting a solicitation of proxies to elect the acquirer's own slate of directors or otherwise attempting to obtain control of Mesa;

• restrict the number of directors constituting Mesa's board of directors to within a set range, and give Mesa's board of directors exclusive authority to increase or decrease the number of directors within such range, which may prevent shareholders from being able to fill vacancies on Mesa's board of directors; and

• restrict the ability of shareholders to call special meetings of shareholders.

#### Mesa's corporate charter includes provisions limiting ownership by non-U.S. citizens.
To comply with restrictions imposed by federal law on foreign ownership of U.S. airlines, Mesa's Charter restricts the ownership and voting of shares of Mesa common stock by people and entities who are not "citizens

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of the United States" as that term is defined in 49 U.S.C. § 40102(a). That statute defines "citizen of the United States" as, among other things, a U.S. corporation, of which the president and at least two-thirds of the board of directors and other managing officers are individuals who are citizens of the United States, which is under the actual control of citizens of the United States and in which at least 75% of the voting interest is owned or controlled by persons who are citizens of the United States. Mesa's second amended and restated articles of incorporation prohibit any non-U.S. citizen from owning or controlling more than 24.9% of the aggregate votes of all outstanding shares of Mesa common stock or 49.0% of the total number of outstanding shares of Mesa capital stock. The restrictions imposed by the above-described ownership caps are applied to each non-U.S. citizen in reverse chronological order based on the date of registration on Mesa's foreign stock record. At no time may shares of Mesa capital stock held by non-U.S. citizens be voted unless such shares are reflected on the foreign stock record. The voting rights of non-U.S. citizens having voting control over any shares of Mesa capital stock are subject to automatic suspension to the extent required to ensure that Mesa is in compliance with applicable law. In the event any transfer or issuance of shares of Mesa capital stock to a non-U.S. citizen would result in non-U.S. citizens owning more than the above-described cap amounts, such transfer or issuance will be void and of no effect.

As of June 30, 2025, Mesa had outstanding warrants to purchase 4,899,497 shares of Mesa common stock, all of which were held by the U.S. Treasury. Mesa is currently in compliance with all applicable foreign ownership restrictions.

***Mesa's corporate charter limits certain transfers of Mesa stock, which limits are intended to preserve Mesa's ability to use its net operating loss carryforwards, and these limits could have an effect on the market price and liquidity of Mesa common stock.***

To reduce the risk of a potential adverse effect on Mesa's ability to use its net operating loss carryforwards for federal income tax purposes, Mesa's Charter prohibits the transfer of any shares of Mesa capital stock that would result in (i) any person or entity owning 4.75% or more of Mesa's then-outstanding capital stock, or (ii) an increase in the percentage ownership of any person or entity owning 4.75% or more of Mesa's then-outstanding capital stock. These transfer restrictions expire upon the earliest of (i) the repeal of Section 382 of the Code or any successor statute if Mesa's board of directors determines that such restrictions are no longer necessary to preserve Mesa's ability to use Mesa's net operating loss carryforwards, (ii) the beginning of a fiscal year to which Mesa's board of directors determines that no net operating losses may be carried forward, or (iii) such other date as determined by Mesa's board of directors. These transfer restrictions apply to the beneficial owner of the shares of Mesa's capital stock. The clients of an investment advisor are treated as the beneficial owners of stock for this purpose if the clients have the right to receive dividends, if any, the power to acquire or dispose of the shares of Mesa's capital stock, and the right to proceeds from the sale of Mesa's capital stock. Certain transactions approved by Mesa's board of directors, such as mergers and consolidations meeting certain requirements set forth in Mesa's Charter, are exempt from the above-described transfer restrictions. Mesa's board of directors also has the ability to grant waivers, in its discretion, with respect to transfers of Mesa stock that would otherwise be prohibited.

The transfer restrictions contained in Mesa's Charter may impair or prevent a sale of common stock by a shareholder and may adversely affect the price at which a shareholder can sell Mesa common stock. In addition, this limitation may have the effect of delaying or preventing a change in control of Mesa, creating a perception that a change in control cannot occur or otherwise discouraging takeover attempts that some shareholders may consider beneficial, which could also adversely affect the market price of Mesa common stock. Mesa cannot predict the effect that this provision in Mesa's Charter may have on the market price of Mesa common stock.

***Mesa currently does not intend to pay dividends on its common stock and, consequently, your only opportunity to achieve a return on your investment is if the price of Mesa common stock appreciates.***

Mesa has not historically paid dividends on shares of its common stock and does not expect to pay dividends on such shares in the foreseeable future. Additionally, the United CPA, certain of Mesa's aircraft lease facilities, and

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Mesa's loan with the U.S. Treasury contain restrictions that limit Mesa's ability to or prohibits Mesa from paying dividends to holders of Mesa common stock. Any future determination to pay dividends will be at the discretion of Mesa's board of directors and will depend on Mesa's results of operations, financial condition, capital requirements, restrictions contained in current or future leases and financing instruments, business prospects, and such other factors as Mesa's board of directors deems relevant, including restrictions under applicable law. Consequently, your only opportunity to achieve a positive return on your investment in Mesa will be if the market price of Mesa common stock appreciates.

#### General Risk Factors Related to Mesa
***The requirements of being a public company may strain Mesa's resources, increase Mesa's operating costs, divert management's attention, and affect Mesa's ability to attract and retain qualified board members or executive officers.***

Mesa became a public company in August 2018. As a public company, Mesa incurs significant legal, accounting, and other expenses, including costs associated with public company reporting requirements. Mesa has also incurred and will continue to incur costs associated with the Sarbanes-Oxley Act of 2002, as amended, the Dodd-Frank Wall Street Reform and Consumer Protection Act and related rules implemented or to be implemented by the SEC and Nasdaq. The expenses incurred by public companies generally for reporting and corporate governance purposes have been increasing. Mesa expects these rules and regulations to increase its legal and financial compliance costs and to make some activities more time-consuming and costly and divert management's time and attention from revenue-generating activities to compliance activities. It could also make it more difficult or costly for Mesa to obtain certain types of insurance, including director and officer liability insurance, and Mesa may be forced to accept reduced policy limits and coverage or incur substantially higher costs to obtain the same or similar coverage. These laws and regulations could also make it more difficult for Mesa to attract and retain qualified persons to serve on Mesa's board of directors, Mesa's board committees, or as Mesa's executive officers and may divert management's attention. Furthermore, if Mesa is unable to satisfy its obligations as a public company, Mesa could be subject to delisting of its common stock, fines, sanctions, other regulatory action, and potentially civil litigation.

***Mesa is required to assess its internal control over financial reporting on an annual basis, and any future adverse findings from such assessment could result in a loss of investor confidence in Mesa's financial reports, result in significant expenses to remediate any internal control deficiencies and have a material adverse effect on Mesa's business, results of operations, and financial condition.***

Mesa is required, pursuant to Section 404 of the Sarbanes-Oxley Act, to furnish a report by management on, among other things, the effectiveness of its internal control over financial reporting for each fiscal year. This assessment includes disclosure of any material weaknesses identified by Mesa's management in its internal control over financial reporting. As of August 10, 2023, Mesa is no longer an "emerging growth company," as defined in the JOBS Act. Based on Mesa's market capitalization as of March 31, 2025 Mesa is a non-accelerated filer, Mesa's independent registered public accounting firm will be required to attest to the effectiveness of Mesa's internal control over financial reporting once an accelerated filer and Mesa is required to disclose, to the extent material, changes made in Mesa's internal control over financial reporting on a quarterly basis.

To comply with the requirements of being a public company, Mesa may need to undertake various actions, such as implementing new internal controls and procedures and hiring accounting or internal audit staff. Management assessed the effectiveness of Mesa's internal control over financial reporting at September 30, 2024. In making these assessments, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control—Integrated Framework (2013). Based on Mesa's assessments and those criteria, management determined that Mesa maintained effective internal control over financial reporting as of September 30, 2024.

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In future periods, if Mesa fails to achieve and maintain an effective internal control environment, it could result in material misstatements in Mesa's financial statements and failure to meet Mesa's reporting obligations, which would likely cause investors to lose confidence in Mesa's reported financial information and adversely impact Mesa's stock price.

#### Risks Related to Republic

#### Risks Related to Disruption of Republic's Operations

#### Republic may experience disruption in service with key third-party service providers.
Republic relies on third-party vendors for a variety of services and functions critical to its business, including airframe and engine maintenance, telecommunication systems, and information technology infrastructure, as well as services and functions provided by Republic's Partners such as ground handling, fueling, computer reservation system hosting, telecommunication systems, and information technology infrastructure and services.

Even though Republic strives to formalize agreements with these vendors that define expected service levels, Republic's use of third-party vendors increases its exposure to several risks. In the event that one or more vendors goes into bankruptcy, ceases operation, or fails to perform as promised, replacement services may not be readily available at competitive rates, or at all. If one of Republic's vendors fails to perform adequately, Republic may experience increased costs, delays, maintenance issues, safety issues, or negative public perception. Vendor bankruptcies, unionization, regulatory compliance issues, or significant changes in the competitive marketplace among suppliers could adversely affect vendor services or force Republic to renegotiate existing agreements on less favorable terms. These events could result in disruptions in Republic's operations or increases in its cost structure.

#### Republic currently depends on Embraer, GE Aviation, and other original equipment manufacturers ("OEMs") to support its fleet of aircraft.
Republic currently relies on Embraer as the primary manufacturer of all of its regional jets and GE Aviation and its affiliates as the primary manufacturer for its supporting engines. Republic's risks in relying on a limited number of aircraft and engine manufacturers include:

• the failure or inability of Embraer, GE Aviation, or an OEM to provide sufficient parts or related support services on a timely basis;

• the interruption of scheduled passenger service as a result of unscheduled or unanticipated maintenance requirements for these aircraft;

• the issuance of DOT or FAA directives restricting or prohibiting the use of Embraer aircraft or GE Aviation engines requiring time-consuming inspections and maintenance;

• the enactment of tariffs that will increase cost and/or delay parts at the border causing prolonged time of repair; and

• the adverse public perception of a manufacturer as a result of an accident or other adverse publicity.

Republic's operations could be materially and adversely affected by the failure or inability of Embraer, GE Aviation, or an OEM to provide sufficient parts or related maintenance and support services on a timely basis or by an interruption of fleet service as a result of unscheduled or unanticipated maintenance requirements for its aircraft or engines.

In addition, Republic's Partners include both Embraer aircraft and aircraft manufactured by other OEMs as part of their networks. If Republic continues to operate a single manufactured fleet, it may not be able to compete for and win new regional flying opportunities and its growth could be limited. Therefore, Republic's growth plan may require it to expand its operations to flying regional jets manufactured by other OEMs. In such event, the

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introduction of additional aircraft types will require Republic to develop and implement specific operational proficiencies, including pilots, flight attendants, and maintenance technicians. Doing so may erode Republic's operational efficiencies gained from flying a single aircraft type and could cause margin degradation.

#### Republic is at risk of losses stemming from an accident or incident involving any of its aircraft or personnel.
While Republic has never had a crash causing death or serious injury in over 50 years involving its commercial passenger service operations, it is possible that one or more of Republic's commercial passenger aircraft may be involved in an accident in the future, causing death or serious injury to individual air travelers and its employees, destroying its aircraft, and the property of third parties.

In addition, an accident involving one of Republic's commercial passenger aircraft could expose Republic to significant tort liabilities. Such liabilities could include liability arising from the claims of those on board, including passengers or their estates seeking to recover damages for death or injury. There can be no assurance that the insurance Republic carries to cover such damages will be adequate. Accidents could also result in unforeseen mechanical and maintenance costs. In addition, any accident involving an aircraft type that Republic operates could create a public perception that its aircraft are not safe. Such an accident could materially and adversely affect Republic's financial condition and results of operations.

Republic is also at risk of adverse publicity stemming from any incident involving Republic, which could expose Republic or Republic's Partners to reputational harm and potential legal liability. Republic's involvement in any such incident could negatively impact its relationship with Republic's Partners or affect Republic's Partners' respective brands, and as a result, adversely impact Republic's business, results of operations, and financial condition.

#### Republic is at risk of losses stemming from an accident or incident involving any of Republic's LIFT Academy training aircraft or personnel.
The LIFT Academy involves ab initio flight students and is subject to more risk of an accident or incident involving training aircraft than Republic's commercial passenger operations due to the training environment of the LIFT Academy. As such, Republic's training aircraft operated as part of LIFT Academy training operations are from time to time involved in accidents or incidents causing death or serious injury, destruction of aircraft, and damage to property.

In addition, an accident involving one of Republic's training aircraft could expose it to significant tort liabilities. Such liabilities could include liability arising from the claims of the certified flight instructor, student pilot, or their estates seeking to recover damages for death or injury. There can be no assurance that the insurance Republic carries to cover such damages will be adequate. Accidents could also result in unforeseen mechanical and maintenance costs. In addition, any accident involving an aircraft type that Republic operates could create a public perception that its training aircraft are not safe. Such an accident could materially and adversely affect Republic's financial condition and results of operations.

Republic is also at risk of adverse publicity stemming from any training incident involving LIFT Academy, which could expose LIFT Academy, and in turn Republic, to reputational harm and potential legal liability. LIFT Academy's involvement in any such training incident could negatively impact the LIFT Academy brand, and as a result, adversely impact Republic's business, results of operations, and financial condition.

***Interruptions or disruptions in service at one of Republic's hub airports, due to weather, system malfunctions, security closures, or for any other reason, could have an adverse impact on its operations.***

Republic currently operates primarily through hubs supporting Republic's Partners' respective route network across the Northeast, Midwest, and Mid-Atlantic regions of the United States. A significant portion of Republic's

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flights either originate from or fly into one of these hubs. These regions tend to experience higher than average adverse weather events, air traffic control disruptions, and the airports within these regions tend to experience significant congestion relative to many other U.S. airports, each of which creates significant challenges to completing flights on time. Republic's revenues depend primarily on its completion of flights and secondarily on service factors such as timeliness of departures and arrivals. Certain revenues are also impacted by non-controllable conditions such as weather. Any interruptions or disruptions could, therefore, adversely affect Republic. Extreme weather such as blizzards, hurricanes or tornados can cause flight disruptions, and during periods of storms or adverse weather, Republic's flights may be cancelled or significantly delayed. An interruption or disruption in service at one of Republic's hubs, due to adverse weather, system malfunctions, air traffic control disruptions, airport construction, security closures, or otherwise, could result in the cancelation or delay of a portion of its flights and, as a result, could have adverse impact on Republic's operations and financial performance.

#### Risks Related to Republic's CPAs

#### Republic's business is dependent on its CPAs with Republic's Partners.

The American Airlines CPA expires with respect to different tranches of aircraft between 2028 and 2033, unless otherwise extended or amended. In addition, the American Airlines CPA is subject to early termination for cause.

The Delta Air Lines CPA expires with respect to different tranches of aircraft between 2025 and 2030, unless otherwise extended or amended. In addition, the Delta Air Lines CPA is subject to early termination for material breach of contract and significant declines in operating performance, among other triggering events.

The United Airlines CPA expires with respect to different tranches of aircraft between 2025 and 2037, unless otherwise extended or amended. In September 2021, Republic entered into a new capacity purchase agreement with United Airlines. The terms extended the contract expiration from 2029 to 2037 and provided for 38 E170 aircraft to be replaced with new E175s which began in June 2022 with the remaining nine new E175s to be delivered by December 31, 2025. In addition, the United Airlines CPA is subject to early termination for breach of contract.

Any adverse material modification to, or termination of, Republic's CPAs with any of Republic's Partners could have a material adverse effect on Republic's financial condition and the results of Republic's operations. None of Republic's Partners are under any obligation to renew their respective CPAs. If any one of Republic's Partners were to terminate or fail to renew their CPA, Republic would have difficulty replacing these agreements, due to the concentration of major airlines in the industry. If Republic were unable to replace these CPAs with alternative commitments from Republic's Partners or with new partners, Republic's results of operations would be significantly impacted.

In addition, because substantially all of Republic's revenues are currently generated under its CPAs, if any one of them is terminated, Republic cannot assure you that it would be able to enter into substitute capacity purchase arrangements, or that any such substitute arrangements would be as favorable to Republic as the current CPAs. Operating an airline independently from Republic's Partners would be a significant departure from Republic's business plan and would likely require significant time and resources, which may not be available to Republic at that point.

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#### The amounts Republic receives under its CPAs may be less than the corresponding costs it incurs.
Under Republic's CPAs, it is compensated for certain costs it incurs in providing services. With respect to costs that are defined as pass-through costs (such as certain property taxes and insurance), Republic's Partner is obligated to pay to Republic the actual amount of the cost incurred. With respect to other costs, including labor and certain maintenance costs, Republic's Partner is obligated to pay to Republic amounts based, in part, on pre-determined rates for such costs. These pre-determined rates are not based on the actual expenses Republic incurs and generally escalate based on a consumer price index, subject to a maximum cap. If Republic's annual rate increases are less than its actual cost escalations, if the marketplace shifts and Republic increases wages in order to stay competitive, or if Republic incurs expenses that are greater than the pre-determined amounts payable by Republic's Partners, Republic's financial results will be negatively affected. In order to be competitive in the marketplace, Republic has increased wages and provided signing bonuses to attract new employees to Republic for those work groups in recent years.

Certain of Republic's engine maintenance services are not costs Republic incurs under "power-by-the-hour" agreements. Once an overhaul event occurs for Republic's limited life parts ("LLPs"), Republic records the expense for the event under the direct expense method. However, certain of these maintenance events are not a pass-through cost under most of Republic's fixed-fee arrangements. Therefore, Republic could experience a significant amount of volatility in its results of operations and cash flows depending on the amount and timing of these non-pass-through maintenance events.

#### Reduced utilization levels of Republic's aircraft under CPAs with Republic's Partners would adversely impact Republic's revenues, earnings, and liquidity.
Republic's CPAs with Republic's Partners require each of them to schedule Republic's aircraft to a minimum level of utilization. Even though the fixed fee rates may adjust, either up or down, based on scheduled utilization levels, or require a fixed amount per day to compensate for Republic's fixed costs, if Republic's aircraft are utilized only at the minimum requirement (taking into account block hour and departure utilization and frequency of its scheduled flights), Republic will likely lose both (i) fixed-fee revenues (as a result of reduced utilization) and (ii) the opportunity to earn an additional margin and incentive compensation for such flights.

Challenges with hiring, training, and retaining pilots, flight attendants, maintenance technicians, and dispatchers may also lead to reduced utilization levels of Republic's aircraft and possibly the incurrence of penalties under its CPAs. Additionally, Republic's Partners may change routes and frequencies of flights without notice to Republic or its consent, which can negatively impact its operating efficiencies. Changes in schedules may increase Republic's flight costs, which could exceed the fixed rates paid by Republic's Partners.

#### If the financial strength of any of Republic's Partners decreases, Republic's financial strength, in turn, is at risk.
Republic is directly affected by the financial and operating strength of Republic's Partners. In the event of a decrease in the financial or operational strength of any of Republic's Partners, such Partner may be unable to make the payments due to Republic under its CPA. In addition, a Partner may reduce utilization of Republic's aircraft to the minimum levels specified in the relevant CPAs, and it is possible that any CPA with a Partner that files for reorganization under Chapter 11 of the U.S. Bankruptcy Code may not be assumed in bankruptcy and could be modified or terminated. Republic's Partners have experienced, and may experience in the future, a sudden and severe loss of passenger demand and significant financial stress as a result of unforeseen events or conditions. Any such event impacting Republic's Partners could have an adverse effect on Republic's operations.

#### Republic's Partners may choose to operate their own regional aircraft, thus limiting the opportunity for expansion of Republic's relationships with them.
Republic depends on major airlines, such as Republic's Partners, to contract with it instead of purchasing and operating their own aircraft; however, some major airlines own their own regional airline subsidiaries and operate

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their own regional aircraft instead of entering into contracts with Republic or other independent regional carriers. Currently, the regional airlines owned by major airlines include Endeavor Air, Inc. ("Endeavor") (owned by Delta Air Lines), Envoy Air Inc. ("Envoy") (subsidiary of the parent company of American Airlines), PSA Airlines, Inc. ("PSA") (subsidiary of the parent company of American Airlines), Piedmont Airlines ("Piedmont") (subsidiary of the parent company of American Airlines), and Horizon Air Industries, Inc. ("Horizon") (owned by Alaska Air Group, Inc.). The major airlines possess the financial and other resources needed to acquire and operate their own regional jets, create or grow their own captive regional airlines, or acquire other regional air carriers instead of entering into contracts with Republic. Republic has no guarantee that in the future Republic's Partners or any other airline will choose to enter into contracts with it instead of purchasing their own aircraft or entering into relationships with competing regional airlines, as they are not prohibited from doing so under the CPAs. A decision by American Airlines, Delta Air Lines, or United Airlines to phase out Republic's contract-based relationships as they expire and instead acquire and operate their own aircraft or enter into similar agreements with one or more of Republic's competitors could have a material adverse effect on Republic's financial condition and results of operations. Because of the concentration of major airlines in the industry, Republic would have difficulty replacing lost revenues if any of Republic's Partners were to terminate or reduce their CPAs with Republic.

#### Republic's Partners may be restricted in increasing the level of business that they conduct with Republic, thereby limiting Republic's growth.
In general, the pilots' unions of certain major airlines have negotiated clauses in their CBAs that restrict the number and/or size of aircraft that can be operated by the regional partners of such major airlines, referred to in the industry as "scope clauses." These CBAs limit regional airlines to flying aircraft with a maximum take-off weight of 86,000 pounds and a maximum passenger configuration of 76 seats with certain exceptions expressly provided in certain CBAs. Except as contemplated by its existing CPAs, Republic cannot be sure that Republic's Partners will contract with it to fly any additional aircraft.

Republic may not have additional growth opportunities or may agree to modifications to Republic's CPAs that reduce certain benefits to it in order to obtain additional aircraft or for other reasons. Given the competitive nature of the airline industry, Republic believes its current environment with limited growth opportunities may result in competitors accepting reduced margins and less favorable contract terms in order to secure new or additional capacity purchase operations. Even if Republic is offered growth opportunities by Republic's Partners, those opportunities may involve economic terms or financing commitments that are unacceptable to Republic. Additionally, Republic's Partners may reduce the number of regional jets in their system by not renewing or extending existing flying arrangements with regional operators or transitioning those flying arrangements to their own captive regional carriers. Any one or more of these factors may reduce or eliminate Republic's ability to expand its flight operations with Republic's Partners.

#### Disagreements regarding the interpretation of the CPAs with Republic's Partners could have an adverse effect on Republic's operating results and financial condition.
To the extent that Republic experiences disagreements regarding the interpretation of the CPAs or other agreements, Republic will likely expend valuable management time and financial resources in its efforts to resolve those disagreements. Those disagreements may result in litigation, arbitration, settlement negotiations, or other proceedings. Furthermore, there can be no assurance that any or all of those proceedings, if commenced, would be resolved in Republic's favor or that Republic would be able to exercise sufficient leverage in any proceeding relative to its major airline partners to achieve a favorable outcome. An unfavorable result in any such proceeding could have adverse financial consequences and could require Republic to modify its operations. Such disagreements and their consequences could have an adverse effect on Republic's operating results and financial condition.

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***Republic may face "tail risk" in the event it finances aircraft or makes aircraft lease commitments whereby the underlying mortgage or lease commitment extends beyond the terms of its existing CPA.***

While Republic does not expect that any current aircraft debt balances owed at the end of its current CPA terms will exceed the related proceeds Republic could collect from the sale of these assets in the marketplace, Republic cannot provide assurance that this will always be the case. In the event lease commitments extend beyond the life of the CPA or debt balances exceed the related proceeds Republic could collect from the sale of those assets, it expects that it would pursue alternative uses of those aircraft. Such alternative uses include, but are not limited to, operating the aircraft with another major airline under a negotiated CPA or leasing or subleasing the aircraft to another operator. In doing so, Republic likely will incur inefficiencies and incremental costs, such as changing the aircraft livery and cabin interiors, and the terms of the new agreement may be less favorable to Republic than those of the pre-existing agreement, each of which would negatively impact its financial results.

#### The residual value of Republic's owned aircraft may be less than estimated in its depreciation policies.
As of June 30, 2025, Republic had $2.2 billion of aircraft, engines, property, and other equipment, net of accumulated depreciation and amortization, of which most relates to aircraft and engines. In accounting for these long lived assets, Republic makes estimates about the expected useful lives of the assets, the expected residual values of certain of these assets, and the potential for impairment based on the fair value of the assets and the cash flows they generate. Factors indicating potential impairment include, but are not limited to, significant decreases in the market value of the long lived assets, a significant change in the condition of the long lived assets, and operating cash flow losses associated with the use of the long lived assets. In the event the estimated residual value of any of Republic's aircraft types is determined to be lower than the residual value assumptions used in its depreciation policies, the applicable aircraft type in Republic's fleet may be impaired and may result in a material reduction in the book value of applicable aircraft types Republic operates or Republic may need to prospectively modify its depreciation policies. Impairment on any of the aircraft types Republic operates or an increased level of depreciation expense resulting from a change to Republic's depreciation policies could result in a material negative impact to its financial results. Republic has recorded impairment charges in the past when aircraft values decreased faster than its depreciation policies and future cash flows did not support the current net book value of the aircraft.

#### Risks Related to Republic's Operating Costs and Personnel

#### Republic may experience difficulty hiring, training, and retaining qualified aviation professionals.
As is common within the regional airline industry, Republic has, from time to time, faced considerable turnover of its employees. Republic's pilots, flight attendants, maintenance technicians, and dispatchers sometimes leave to work for major airline, low cost, and cargo carriers, which generally offer higher salaries and more extensive benefit programs than regional airlines are financially able to offer.

The airline industry has experienced a significant shortage of qualified personnel, specifically pilots, as a result of decreased interest in the profession, new and more stringent government regulations, and an aging pilot population. These factors have created a greater industry-wide demand for pilots, including at major airlines, low cost, and cargo carriers, which frequently recruit from regional airlines and offer higher salaries and more extensive benefit programs than regional carriers have historically offered. This, in turn, has increased difficulty for regional airlines to retain sufficient pilot staffing levels.

In 2013, the congressionally mandated pilot experience qualifications contained in the Airline Safety and Federal Aviation Administration Extension Act of 2010 became effective ("FAA Qualification Standards"). As a result of this legislation, the age and training requirements for Republic's First Officer pilots generally increased to 23 years and 1,500 hours of flight time, respectively, and First Officer pilots are required to hold an Air Transport Pilot ("ATP") Certificate. Previously, First Officers were required to have only a commercial pilot certificate, which required 250 hours of flight time and no ATP certification requirement. Military pilots are

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subject to somewhat lower requirements, but there is a limited number of military- trained pilots available to enter the workforce. In addition, the FAA implemented a regulation beginning in 2014 that increased the flight crew duty, flight, and rest requirements for pilots. This update changed the length of time a pilot may be on duty and how much she or he may fly in a day, month, and year. These limitations, together with the more restrictive certification and qualification requirements, have resulted in a scarcity of qualified new entrants and have contributed to a severe nationwide pilot shortage from time to time.

The industry-wide pilot shortage is also caused by the aging population of experienced pilots approaching the mandatory retirement age of 65. As a result, the global demand for pilots is expected to increase over the next decade. The shift in demographics is concentrated at major airline, low cost, and cargo carriers, giving rise to increased attrition at regional air carriers to replace those pilots. There can be no assurance that Republic will be able to attract and retain sufficient qualified pilots and Republic's operations and financial condition may be negatively impacted if it is unable to hire and train pilots in a timely manner.

In 2022 and 2023, Republic experienced significant levels of pilot attrition, particularly attrition of captains and experienced first officers, as a result of industry-wide hiring following the COVID-19 pandemic. The corresponding shortages of captains caused a sequential reduction in Republic's annual block hours in 2022, 2023, and the first half of 2024. Although captain attrition levels eased in 2024, future elevated pilot attrition levels could constrain Republic's flight schedules. Operating at reduced flying schedules results in operating inefficiencies which negatively impacts Republic's financial results.

Additionally, there can be no assurance that labor shortages may not affect other staffing needs, including those related to flight attendants, dispatchers, and maintenance technicians. If Republic is unsuccessful in sufficiently staffing these positions, Republic's operations and financial condition may be negatively impacted if hiring and training of flight attendants, dispatchers, and maintenance technicians is not done in a timely manner.

***Increases in Republic's labor costs, which constitute a substantial portion of Republic's total operating costs, will directly impact Republic's earnings and ability to compete for new fixed-fee business.***

Wages and benefits constituted 52% of Republic's total operating costs for the six months ended June 30, 2025, and Republic has experienced pressure to increase wages and benefits for its employees. Under Republic's CPAs, its reimbursement rates for certain operating costs contemplate labor costs that increase on a set schedule generally tied to an increase in the consumer price index. Republic is entirely responsible for its labor costs, and Republic is not entitled to receive increased payments for its flights from Republic's Partners if Republic's labor costs increase above the assumed costs included in the reimbursement rates. As a result, a significant increase in Republic's labor costs above the levels assumed in its reimbursement rates could result in a material adverse effect to Republic's results of operations and cash flows.

Due to Republic's business strategy to position the airline for future capacity growth, Republic has from time to time reached a pilot staffing level that exceeds the pilot base necessary to operate its current contractual obligations. These staffing levels are necessary to position Republic's airline to accept new business, acquire additional aircraft, and expand its fleet. During periods in advance of growth, or in the event that Republic is unable to achieve fleet expansion and capacity growth, the cost to carry excess pilots could result in a material adverse effect to its results of operations and cash flows.

In response to past significant increase in attrition and wage escalation in selected work groups Republic has increased wages and provided signing bonuses to attract new employees in order to be competitive in the marketplace.

#### Any labor disruption or labor strikes by Republic's employees or those of Republic's Partners would adversely affect Republic's ability to conduct its business.
All of Republic's pilots, flight attendants, and dispatchers are represented by unions. These employees are essential to Republic's operations. Collectively, these employees represent approximately 73% of Republic's

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workforce as of June 30, 2025. Republic is subject to risks of work interruption or stoppage, and Republic may incur additional administrative expenses associated with union representation of its employees.

Republic has CBAs with its pilots, flight attendants, and dispatchers. Republic's pilot, flight attendant, and dispatcher CBAs become amendable during the year ending December 31, 2027. Republic cannot provide any assurance of when, and if, the respective unions will ratify a new CBA or assure that future agreements with Republic's employees' unions will be on terms in line with its expectations or comparable to agreements entered into by its competitors. Any future agreements may increase Republic's labor costs and reduce both its income and competitiveness for future business opportunities.

The terms and conditions of Republic's future CBAs may be affected by the results of collective bargaining negotiations at other airlines that may have a greater ability, due to larger scale, greater efficiency, or other factors, to bear higher employee wage costs than Republic can. In addition, if Republic is unable to reach agreement with any of its unionized work groups in future negotiations regarding the terms of their CBAs, Republic may be subject to work interruptions, stoppages, or shortages. Republic may also become subject to additional CBAs in the future if non-unionized workers were to unionize. Republic is also subject to various ongoing employment disputes outside of the CBAs. Republic considers these to be routine to the ordinary course of its business and not material; however any current or future dispute could become material.

Relations between air carriers and labor unions in the United States are governed by the RLA. Under the RLA, CBAs generally contain amendable dates rather than expiration dates, and the RLA requires that a carrier maintain the existing terms and conditions of employment following the amendable date through a multi-stage and often lengthy series of bargaining processes overseen by the National Mediation Board ("NMB"). This process continues until either the parties have reached agreement on a new CBA, or the parties have been released to "self-help" by the NMB. In most circumstances, the RLA prohibits strikes; however, after release by the NMB, carriers, and unions are free to engage in self-help measures such as lockouts and strikes.

Any strike, labor dispute, or increased unionization among Republic's employees could disrupt its operations, reduce profitability, or interfere with the ability of Republic's management to focus on executing business strategies. For example, if a labor strike were to continue for an extended period of time, Republic's Partners may have cause to terminate Republic's CPAs with them. As a result, Republic's business, results of operations, and financial condition may be materially and adversely affected.

#### Republic's maintenance expenses will increase as its fleet ages and may be higher than Republic anticipates.
Republic bears substantial costs for routine and major maintenance events. Maintenance expenses comprise a significant portion of Republic's operating expenses. The average age of Republic's aircraft is approximately 14 years old. As a result, Republic's newer aircraft require less maintenance now than they will in the future. Republic has incurred lower maintenance expenses because some of the parts on its aircraft are under multi-year warranties. Republic's maintenance costs will increase as these warranties expire and its fleet ages. For example, Republic's recent engine expenses for its aircraft do not reflect the full mature cost of maintaining the aircraft, as they do not include all of Republic's expenses for future LLP restoration as these parts are only replaced approximately every ten to twelve years. As Republic incurs expenses to replace these LLPs, only a portion of the expense may be passed through to Republic's Partners, thus Republic's future results of operations and liquidity will be materially impacted.

In addition, Republic is periodically required to take aircraft out of service for heavy maintenance checks, which can increase costs and reduce revenue. Republic also may be required to comply with regulations and airworthiness directives the FAA issues, the cost of which Republic's aircraft lessors may only partially assume depending upon the magnitude of the expense. Although Republic believes that its owned and leased aircraft are currently in compliance with all effective FAA airworthiness directives, Republic's aircraft could fall out of compliance, or additional airworthiness directives may be required in the future, necessitating additional expenditures.

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***Republic has a significant amount of debt and other contractual obligations that could impair its liquidity and thereby harm its business, results of operations, or financial condition.***

The airline business is capital intensive, and as a result, Republic is highly leveraged. As of June 30, 2025, Republic had approximately $1.1 billion in total debt and finance leases. Substantially all of Republic's debt was incurred in connection with the acquisition of aircraft and spare aircraft engines. This substantial indebtedness could:

• require Republic to dedicate a substantial portion of cash flow from operations to the payment of principal and interest on indebtedness, thereby reducing the funds available for operations and future business opportunities;

• make it difficult for Republic to satisfy its debt service payments and other obligations;

• limit Republic's ability to borrow additional funds for working capital, capital expenditures, or other purposes, if needed, and increase the cost of any of these borrowings; and/or

• reduce Republic's flexibility in planning for or responding to changing business and economic conditions.

If Republic is unable to meet its debt service obligations or to fund its other liquidity needs, Republic will need to restructure or refinance all or a portion of its debt, which could cause Republic to default on its existing debt obligations and impair its liquidity. Republic's ability to restructure or refinance its debt will depend on, among other things, its financial condition at such time. Any refinancing of Republic's indebtedness could be at higher interest rates or otherwise on more onerous terms. Moreover, in the event of a default, the holders of Republic's indebtedness, could elect to declare all the funds borrowed to be due and payable, together with accrued and unpaid interest, if any.

Republic also has significant long-term debt obligations primarily relating to its aircraft fleet. As of June 30, 2025, Republic's minimum required debt service payments for the next 12 months totals $283.9 million and its finance lease payments total approximately $10.1 million.

Republic has significant operating lease obligations with respect to its flight simulators, and facility leases, which aggregated to approximately $124.3 million as of June 30, 2025 through the remaining minimum lease terms.

If Republic's liquidity is materially diminished, it might not be able to timely pay its lease payments and debts or comply with material provisions of its contractual obligations.

#### Republic's business could be harmed if Republic is unable to attract, develop, and retain the services of its key personnel.
Republic's business depends upon the efforts of its key management and operating personnel. If Republic experiences a substantial turnover in its leadership and other key employees and is not able to replace these persons with individuals with comparable skills, Republic's performance could be materially adversely impacted. In addition, competition for skilled personnel has intensified and may continue to intensify if overall industry capacity continues to increase and/or Republic were to incur attrition at levels higher than it has historically. Republic may have difficulty replacing management or other key personnel who leave and, therefore, the loss of the services of any of these individuals could harm Republic's business.

#### Republic's Risks Related to Regulation and Litigation

#### Republic may become involved in litigation that may have a material and adverse effect.
From time to time, Republic may become involved in various legal proceedings relating to matters incidental to the ordinary course of its business, including employment, commercial, product liability, class action,

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whistleblower, and other litigation and claims, and governmental and other regulatory investigations and proceedings. Such matters can be time-consuming, divert management's attention and resources, and cause Republic to incur significant expenses or liability and/or require Republic to change its business practices. Because of the potential risks, expenses, and uncertainties of litigation, Republic may, from time to time, settle disputes, even where Republic believes that it has meritorious claims or defenses. Because litigation is inherently unpredictable, Republic cannot assure you that the results of any of these actions will not have a material adverse effect on its business, results of operations, and financial condition.

#### Regulatory changes or tariffs could negatively impact Republic's business and financial condition.
Republic relies on a limited number of aircraft types, including E170s and E175s, and Republic imports a substantial portion of the equipment it needs. The issuance of FAA or manufacturer directives restricting or prohibiting the use of the aircraft types Republic operates could negatively impact Republic's business and financial results. Additionally, potential regulatory changes or action by the U.S. government or U.S. regulatory agencies, including the imposition of new tariffs, increase in existing tariffs, or changes in international trade treaties, could negatively impact the cost and availability of parts and aircraft. Republic's business may be subject to additional costs as a result of potential regulatory changes, which could have an adverse effect on Republic's operations and financial results.

The United States has recently enacted and proposed to enact significant new tariffs. There continues to exist significant uncertainty about the future relationship between the United States and other countries with respect to such trade policies, treaties and tariffs. These developments, or the perception that any of them could occur, may have a material adverse effect on global economic conditions and the stability of global financial markets, and may significantly impact the cost of new Embraer aircraft imported from Brazil, aircraft parts and supplies sourced internationally or impact the cost of service providers located outside of the United States, which in turn would negatively impact Republic.

#### Republic is subject to various environmental and noise laws and regulations, which could negatively impact Republic's business and financial condition.
Republic is subject to increasingly stringent federal, state, local, and foreign laws, regulations, and ordinances relating to noise and the protection of the environment, including those relating to emissions to the air, discharges (including storm water discharges) to surface and subsurface waters, safe drinking water, and the use, management, disposal, and release of and exposure to, hazardous substances, oils, and waste materials. Republic is or may become subject to new or proposed laws and regulations that may have a direct effect (or indirect effect through Republic's third-party specialists or airport facilities at which Republic operates) on its operations. In addition to other potential new regulations, U.S. airport authorities are exploring ways to limit de-icing fluid discharges to groundwater, which can result in additional costs to and restrictions on airlines required to participate in the construction of new or modified airport de-icing facilities. Additionally, air quality initiatives at the state and local level (including state implementation plans for achieving national ozone standards) could, in the future, result in curtailments in services, increased operating costs, limits on expansion, or further emission reduction requirements. Certain airports and/or state governments either have or are seeking to establish environmental fees and other requirements applicable to carbon/greenhouse gas emissions, local air quality pollutants, and/or noise. As a result, Republic may face increased taxes or costs related to greenhouse gas emissions, as well as other regulatory requirements.

Similarly, Republic is subject to environmental laws and regulations that require it to investigate and remediate soil or groundwater to meet certain remediation standards. Under certain laws, generators of waste materials and current and former owners or operators of facilities, can be subject to liability for investigation and remediation costs at locations that have been identified as requiring response actions. Liability under these laws may be strict, joint, and several, meaning that Republic could be liable for the costs of cleaning up environmental contamination regardless of fault or the amount of wastes directly attributable to Republic.

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#### Risks Related to Republic's Industry
***Airlines are often affected by factors beyond their control, including economic conditions, air traffic congestion at airports, air traffic control inefficiencies, government shutdowns, major construction or improvements at airports, FAA grounding of aircraft, increased security measures, new travel-related taxes, and fees, adverse weather conditions and natural disasters.***

Demand for air travel could weaken in an economic recession or due to other factors that are outside of Republic's control. The airline industry is highly cyclical and the level of demand for air travel is correlated to the strength of the U.S. and global economies, including unemployment levels, consumer confidence levels and the availability of consumer and business credit. Air transportation is often a discretionary purchase that leisure travelers may limit or eliminate during difficult economic times. Short-haul travelers, in particular, have the option to replace air travel with surface travel. In addition, during periods of unfavorable economic conditions, business travelers historically have reduced the volume of their travel, either due to cost-saving initiatives, the replacement of travel with alternatives such as videoconferencing, or as a result of decreased business activity requiring travel. Furthermore, an increase in price levels generally or in price levels in a particular sector (such as current inflationary pressures related to domestic and global supply chain constraints, which have led to both overall price increases and pronounced price increases in certain sectors) could result in a shift in consumer demand away from both leisure and business travel. Any of the foregoing could have a significant negative impact on Republic's results of operations.

Republic's business is also affected by other factors beyond its control, including air traffic congestion at airports, air traffic control inefficiencies, government shutdowns, major construction or improvements at airports at which Republic operates, increased security measures, new travel-related taxes and fees, adverse weather conditions, natural disasters, and public health events, including the outbreak of disease (such as the COVID-19 pandemic). During periods of fog, ice, low temperatures, storms, or other adverse weather conditions, flights may be cancelled or significantly delayed. For example, in 2024, Republic cancelled approximately 1% of its scheduled flights due to extreme weather.

The federal government controls all U.S. airspace, and airlines are completely dependent on the FAA to operate that airspace in a safe, efficient, and affordable manner. The air traffic control system, which is operated by the FAA, faces challenges in managing the growing demand for U.S. air travel. U.S. and foreign air-traffic controllers often rely on outdated technologies that routinely overwhelm the system and compel airlines to fly inefficient, indirect routes resulting in delays, and such delays may impact Republic's operations. The federal government also controls airport security. In addition, Congress could enact legislation that could impose a wide range of consumer protection requirements, which could increase the costs of doing business. Further, implementation of the Next Generation Air Transport System, or NextGen, by the FAA could result in changes to required aircraft equipment or aircraft routings and flight paths that could lead to increased flight time and potentially increased costs. In addition, federal government shutdowns can affect the availability of federal resources necessary to provide air traffic control and airport security. Furthermore, a federal government grounding of Republic's aircraft type could result in flight cancelations and adversely affect Republic's business.

Adverse weather conditions and natural disasters, such as hurricanes, thunderstorms, winter snowstorms, or earthquakes, can cause flight cancelations or significant delays, and in the past have led to Congressional demands for investigations. Cancelations or delays due to adverse weather conditions or natural disasters, air traffic control problems or inefficiencies, breaches in security, or other factors may affect Republic to a greater degree than other, larger airlines that may be able to recover more quickly from these events, and therefore could have a material adverse effect on Republic's business, results of operations, and financial condition to a greater degree. Similarly, outbreaks of pandemic or contagious diseases, such as COVID-19, Ebola, measles, avian flu, severe acute respiratory syndrome (SARS), H1N1 (swine) flu, pertussis (whooping cough), and zika virus, or their respective variants, have resulted and could continue to result in significant decreases in passenger traffic and the imposition of government restrictions in service and could have a material adverse impact on the airline industry. Any increases in travel-related taxes could also result in decreases in passenger traffic. Any general

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reduction in airline passenger traffic could have a material adverse effect on Republic's business, results of operations, and financial condition. Moreover, U.S. federal government shutdowns may cause delays and cancelations or reductions in discretionary travel due to longer security lines, including as a result of furloughed government employees, or reductions in staffing levels, including air traffic controllers. U.S. government shutdowns may also impact Republic's ability to take delivery of aircraft and commence operations in new domestic stations. Another extended shutdown like the one in December 2018 to January 2019 may have a negative impact on Republic's operations.

Under Republic's CPAs, its regional airline business is partially protected against cancelations due to weather or air traffic control, although these factors may affect its ability to receive incentive payments for flying more than the minimum number of flights specified in Republic's CPAs.

#### If passengers perceive the operations of regional aircraft as being unsafe, Republic's business may be harmed.
Although Republic's regional jets have never had a crash causing death or serious injury in over 50 years of operations, should the public perceive regional aircraft as less safe including as a result of an accident or incident involving a type of aircraft in Republic's fleet, Republic's Partners may be less inclined to renew Republic's contracts in the future, which could adversely affect Republic's business and financial condition. This risk is particularly relevant in light of recent incidents within the airline industry, which may lead to increased public sensitivity regarding the safety of regional jets and airlines in general. Such incidents, even if unrelated to Republic or Republic's Partners, could contribute to a broader climate of concern resulting in reduced consumer confidence and lower demand for air travel.

#### The airline industry has been subject to a number of strikes or other labor disruptions, which could affect Republic's business.
The airline industry has been negatively impacted by a number of labor strikes and other labor disruptions. Any new CBA entered into by other carriers may result in higher industry wages and increase pressure on Republic to increase the wages and benefits of Republic's union employees to avoid the risks of strikes, work stoppages, or other labor disruptions. Furthermore, since Republic relies on each of Republic's Partners for its operating revenues, any labor disruption or labor strike by the employees of any one of Republic's Partners could have a material adverse effect on its financial condition, results of operations, and the price of its common stock.

#### The airline industry is heavily regulated.
Airlines are subject to extensive regulatory and legal compliance requirements, both domestically and internationally, that impose significant costs. In the last several years, Congress has passed laws and the FAA, DOT, and TSA have issued regulations, orders, directives, rulings, and guidance relating to the operation, maintenance, safety, and security of airlines and to consumer protections that have required significant expenditures. Republic expects to continue to incur expenses in connection with complying with such laws and government regulations, orders, directives, rulings, and guidance. FAA requirements cover, among other things, retirement of aged aircraft, collision avoidance systems, airborne wind shear avoidance systems, noise abatement, aircraft safety measures, and increased inspection and maintenance procedures to be conducted on older aircraft.

The FAA in its authority granted by U.S. federal legislation issues mandatory regulations and orders relating to, among other things, pilot and flight attendant rest rules, air traffic procedures, the grounding of aircraft, inspection of aircraft, installation of new safety-related items, and removal, replacement, or modification of aircraft parts that have failed or may fail in the future. Republic is dependent on the operation of the FAA even in times of government agency closures and employee furloughs affected by intermittent periods of shutdown of the U.S. government. Republic's inability to secure the necessary registrations, permits, and approvals from the FAA in these times could impact its ability to operate its aircraft, which could in turn, adversely impact Republic's results of operations. Similarly, a decision by the FAA to ground, or require time consuming inspections of or

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maintenance on, all or any of Republic's aircraft, for any reason, could negatively impact Republic's results of operations.

In addition to state and federal regulation, airports, and municipalities enact rules and regulations that affect Republic's operations. The imposition of any limits on the use of Republic's aircraft at any airport at which it operates could interfere with Republic's obligations under its CPAs and severely interrupt its business operations.

Additional laws, regulations, taxes, and increased airport rates and charges have been proposed from time to time that could significantly increase the cost of airline operations or reduce the demand for air travel.

Republic incurs substantial costs in maintaining its current certifications and otherwise complying with the laws, rules, and regulations to which Republic is subject. Republic cannot predict whether it will be able to comply with all present and future laws, rules, regulations, and certification requirements or that the cost of continued compliance will not significantly increase its costs of doing business.

The DOT has broad authority over airlines and their consumer and competitive practices and has used this authority to issue numerous regulations and pursue enforcement actions, including rules and fines relating to the handling of lengthy tarmac delays, consumer notice requirements, consumer complaints, customer service commitments, contracts of carriage, and the transportation of passengers with disabilities. Among these are recently issued rules on refunds on airfare, baggage fees, and ancillary services, rules on disclosure of information regarding fees for ancillary services and rules regarding accommodation of passengers with disabilities. Furthermore, in 2024, the U.S. Congress approved a five-year reauthorization for the FAA, which encompasses significant aviation tax and policy-related issues. The law includes a range of policy changes related to enhancing aviation safety, improving and modernizing air traffic control, and strengthening the aviation workforce, implementation of some items continues into the new Administration, and depending on how they are implemented, could impact Republic's operations and costs.

***The airline industry is highly competitive and has undergone a period of consolidation and transition leaving fewer potential partners, which could adversely affect Republic's operating results and financial condition.***

The airline industry is highly competitive and has undergone a period of consolidation and transition leaving fewer potential partners, which could adversely affect Republic's operating results and financial condition. Republic competes with other regional airlines, some of which are owned by or operated as partners of major airlines, on various factors including, but not limited to, labor resources, including pilots, flight attendants, maintenance technicians, and dispatchers; low operating costs; financial resources, including the ability to finance aircraft at competitive terms; geographical infrastructure; and overall customer service levels relating to on-time arrival and flight completion percentages. Republic's Partners rely on Republic to fly passengers from various locations into their hubs under Republic's CPAs at competitive terms. Within the airline industry, Republic also faces indirect competition from low-cost or ultra-low-cost carriers who compete with Republic's Partners on many routes Republic operates, and major airlines on many of Republic's routes, including carriers that fly point to point instead of to, or through, a hub. Additionally, future developments of electric-powered aircraft designed to operate on routes typically served by regional aircraft could impact Republic's Partners' strategy and result in reduction of demand or increase Republic's capital expenditures and could have a negative impact on Republic's business and financial condition.

In addition, some of Republic's competitors are larger and have significantly greater financial and other resources than it does. Moreover, federal deregulation of the industry allows competitors to rapidly enter Republic's markets and to quickly discount and restructure fares. The airline industry is particularly susceptible to price discounting because airlines incur only nominal costs to provide service to passengers occupying otherwise unsold seats.

In addition to traditional competition among airlines, the industry faces competition from video teleconferencing and other methods of electronic communication. New advances in technology may add a new dimension of competition to the industry as business travelers seek lower-cost substitutes for air travel.

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The DOT has broad authority over airlines and their consumer and competitive practices and has used this authority to issue numerous regulations and pursue enforcement actions, including rules and fines relating to the handling of lengthy tarmac delays, consumer notice requirements, consumer complaints, customer service commitments, contracts of carriage, and the transportation of passengers with disabilities. Among these is the series of Enhanced Airline Passenger Protection rules issued by the DOT. See "—*The airline industry is heavily regulated*."

Furthermore, the airline industry has undergone substantial consolidation, and any additional consolidation or significant alliance activity within the airline industry could further limit the number of potential partners with whom Republic could enter into CPAs, which could adversely affect Republic's operating results and financial condition.

#### Terrorist activities or warnings have dramatically impacted the airline industry and will likely continue to do so.
Past terrorist attacks and their aftermath negatively impacted the airline industry in general, including Republic's operations. If additional terrorist attacks or other acts of violence are launched against the airline industry, there will be lasting consequences of such attacks, which may include loss of life, property damage, increased security, and insurance costs, increased concerns about future terrorist attacks, increased government regulation, and airport delays due to heightened security. Republic cannot provide any assurance that these events will not harm the airline industry generally or its operations or financial condition in particular.

#### Increases in insurance costs or reductions in insurance coverage may have a material adverse effect on Republic's business, results of operations and financial condition.
If Republic is unable to obtain sufficient insurance (including aviation, hull and liability insurance, cyber, and property and business interruption coverage) due to factors such as market conditions, or otherwise, to cover any material liabilities or losses related to Republic's business, including any significant damage to its property or disruption to its operations caused by a natural catastrophe or any significant accident in which serious injury or death occurs, Republic's results of operations and financial condition could be materially adversely affected.

#### General Risks Related to Republic

#### Republic's ability to utilize net operating loss carry-forwards may be limited.
As of June 30, 2025, Republic had estimated NOLs of approximately $260 million for U.S. federal income tax purposes that begin to expire in 2025. Republic has recorded a valuation allowance of $36.4 million primarily related to these federal and certain state NOLs. Section 382 of the Code, imposes limitations on a corporation's ability to utilize NOLs if it experiences an "ownership change." In general terms, an ownership change may result from transactions increasing the ownership of certain stockholders in the stock of a corporation by more than 50 percentage points over a three-year period. In the event of an ownership change, utilization of Republic's NOLs would be subject to an annual limitation under Section 382. Any unused NOLs in excess of the annual limitation may be carried over to later years.

The imposition of a limitation on Republic's ability to use its NOLs to offset future taxable income could cause U.S. federal income taxes to be paid earlier than otherwise would be paid if such limitation were not in effect and could cause such NOLs to expire unused, reducing or eliminating the benefit of such NOLs. Based on analysis that Republic performed, Republic believes it has not experienced a change in ownership as defined by Section 382 since it exited bankruptcy in 2017. However, substantially all of Republic's NOLs generated prior to its emergence from bankruptcy in 2017 are subject to annual limitations under Section 382. While this offering may result in an additional change in ownership as defined by Section 382, Republic does not expect any such change in ownership to materially impact limitations on the utilization of its NOLs.

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***Republic is increasingly dependent on technology, and if its technology fails, it does not adequately continue to invest in new technology or it is the subject of any cybersecurity incidents of its information technology infrastructure, Republic's business may be adversely affected.***

The performance and reliability of Republic's technology, and the technology of Republic's Partners, are critical to Republic's ability to compete effectively. Republic has become increasingly dependent on technology to manage its flight operations, reduce costs, and compete in the current business environment, such as software programs supporting flight operations, supply chain logistics, crew scheduling, and crew communications. Technology initiatives will continue to require significant capital investments in order to deliver these expected benefits. If Republic is unable to make these investments, the technology fails, or the expected benefits do not materialize, Republic's business and operations could be negatively affected.

Any internal technological error or failure or large-scale external interruption in the information systems, networks, hardware, software, and technological infrastructure Republic depends on, such as U.S. air traffic control systems, power, telecommunications, or the internet, may disrupt Republic's internal network, impact Republic's ability to conduct its business, lower the utilization of Republic's aircraft, negatively impact Republic's reputation, lower revenue, and/or result in increased costs. Republic's technological systems (including those provided by third parties) and those of Republic's Partners, may be vulnerable to a variety of sources of interruption due to events beyond Republic's control, including natural disasters, terrorist attacks, telecommunications or IT System failures, computer viruses, hackers, and other security issues.

In addition, as a part of Republic's ordinary business operations, it collects and stores sensitive data, including the personal information of its employees. Republic's information systems are subject to an increasing threat of continually evolving cybersecurity risks that may compromise the confidentiality, integrity, and availability of such systems. Unauthorized parties, including diverse threat actors such as state-sponsored organizations, opportunistic hackers and hacktivists, may attempt to gain access to Republic's technological systems or information through fraud or other means of deception, including through diverse attack vectors, such as social engineering/phishing, security breaches, malfeasance by insiders, human, or technological error, computer viruses, malicious destructive code, misconfigurations "bugs", or other vulnerabilities in commercial software that is integrated into Republic's technological systems. The methods used to obtain unauthorized access, disable, or degrade service, or sabotage systems are constantly evolving and threat actors are becoming increasingly sophisticated in using techniques and tools—including artificial intelligence—that circumvent security controls, evade detection and remove forensic evidence. As a result, Republic may be unable to anticipate or to detect, investigate, remediate, or recover from attacks or incidents for long periods of time. Republic may not be able to prevent all data security breaches or misuse of data. The compromise of Republic's technology systems resulting in the loss, disclosure, misappropriation of, or access to, employees' or business partners' information could result in legal claims or proceedings, liability or regulatory penalties under laws protecting the privacy of personal information, disruption to Republic's operations, and damage to its reputation, any or all of which could adversely affect its business and financial condition.

#### Republic's ability to obtain financing or access capital markets may be limited.
There are a number of factors that may limit Republic's ability to raise financing or access capital markets in the future, including its significant debt and future contractual obligations, its liquidity and credit status, its operating cash flows, the market conditions in the airline industry, U.S. and global economic conditions, the general state of the capital markets, and the financial position of the major providers of commercial aircraft financing. Republic cannot assure you that it will be able to source external financing for its planned aircraft acquisitions or for other significant capital needs, and if Republic is unable to source financing on acceptable terms, or if Republic is unable to source financing at all, its business could be materially and adversely affected. To the extent Republic finances its activities with additional debt, it may become subject to financial and other covenants that may restrict its ability to pursue its business strategy or otherwise constrain its growth and operations.

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#### Republic may not be able to successfully implement its growth strategy.
Republic's growth strategy includes, among other things, providing additional regional flying services to Republic's Partners and/or providing regional flying services to other airlines. Republic faces numerous challenges in implementing its growth strategy. Republic may be unsuccessful in entering into relationships on terms that are acceptable to it.

Republic can offer no assurances that its effort to execute its growth strategy will be successful. Among other negative effects, Republic's investment in new business opportunities may exceed the returns it realizes. Additionally, any new investments could have higher cost structures than Republic's current business, which could reduce operating margins and require more working capital.

***Republic's business strategy includes making investments that complement its existing business. These investments could be unsuccessful or consume significant resources, which could adversely affect its operating results.***

Some of the businesses Republic may seek to invest in may be marginally profitable or unprofitable. For these businesses to achieve acceptable levels of profitability, Republic may need to improve their management and operations. Investments may involve significant cash expenditures, debt incurrence, operating losses, and expenses.

It may be difficult for Republic to complete investments quickly or integrate investments efficiently into Republic's current business operations. Any investments may ultimately harm Republic's business or financial condition, as such investments may not be successful and may ultimately result in impairment charges*.*

#### Risks Related to the Ownership of the Common Stock of the Surviving Corporation
***If any of the events described in "Risks Related to Mesa" or "Risks Related to Republic" occur, those events could cause potential benefits of the Merger not to be realized.***

Following completion of the Merger, the Surviving Corporation will be susceptible to many of the risks described in the sections herein entitled "*Risks Related to Mesa*" and "*Risks Related to Republic.*" To the extent any of the events in the risks described in those sections occur, the potential benefits of the Merger may not be realized and the results of operations and financial condition of the Surviving Corporation could be adversely affected in a material way. This could cause the market price of the Surviving Corporation's common stock to decline.

***The market price of the Surviving Corporation's common stock is expected to be volatile, and the market price of the common stock may drop following the Merger.***

The market price of the Surviving Corporation's common stock following the Merger could be subject to significant fluctuations. Some of the factors that may cause the market price of the Surviving Corporation's common stock to fluctuate include:

• failure to meet or exceed financial and development projections the Surviving Corporation may provide to the public;

• if the Surviving Corporation does not achieve the perceived benefits of the Merger as rapidly or to the extent anticipated by financial or industry analysts;

• announcements of significant transactions, strategic collaborations, joint ventures, or capital commitments by the Surviving Corporation or its competitors;

• actions taken by regulatory agencies with respect to the Surviving Corporation's operations;

• disputes or other developments relating to litigation matters;

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• additions or departures of key personnel;

• significant lawsuits, including stockholder litigation;

• if securities or industry analysts do not publish research or reports about the Surviving Corporation's business, or if they issue adverse or misleading opinions regarding its business and stock;

• changes in the market valuations of similar companies;

• general market or macroeconomic conditions or market conditions in the airline sector;

• sales of securities by the Surviving Corporation or its securityholders in the future;

• if the Surviving Corporation fails to maintain or, if necessary, raise an adequate amount of capital to fund its operations;

• trading volume of the Surviving Corporation's common stock;

• announcements by competitors of significant contracts, commercial relationships, or capital commitments; and

• period-to-period fluctuations in the Surviving Corporation's financial results.

Moreover, the stock markets in general have experienced substantial volatility that has often been unrelated to the operating performance of individual companies. These broad market fluctuations may also adversely affect the trading price of the Surviving Corporation's common stock. In addition, a recession, depression, or other sustained adverse market event could materially and adversely affect the Surviving Corporation's business and the value of its common stock. In the past, following periods of volatility in the market price of a company's securities, stockholders have often instituted class action securities litigation against such companies. Furthermore, market volatility may lead to increased shareholder activism if the Surviving Corporation experiences a market valuation that activists believe is not reflective of its intrinsic value. Activist campaigns that contest or conflict with the Surviving Corporation's strategic direction or seek changes in the composition of its board of directors could have an adverse effect on its operating results, financial condition, and cash flows.

***If the Surviving Corporation fails to attract and retain management and other key personnel, it may be unable to continue to successfully implement its business plan.***

The Surviving Corporation's ability to compete in the highly competitive airline industry depends on its ability to attract and retain highly qualified managerial and other personnel. The Surviving Corporation will be highly dependent on its management personnel. The loss of the services of any of these individuals could impact negatively its ability to implement successfully its business plan. If the Surviving Corporation loses the services of any of these individuals, it might not be able to find suitable replacements on a timely basis or at all, and its business could be harmed as a result. The Surviving Corporation might not be able to attract or retain qualified management and other key personnel in the future due to the intense competition for qualified personnel among airline and other businesses.

#### The Surviving Corporation may incur losses for the foreseeable future and may never achieve profitability.
The Surviving Corporation may never become profitable, even if the Surviving Corporation is able to achieve the prior operating results of Mesa. Even if the Surviving Corporation does achieve profitability, it may not be able to sustain or increase profitability on a quarterly or annual basis.

***The Surviving Corporation will have broad discretion in the use of its cash and cash equivalents and may invest in ways with which you do not agree and in ways that may not increase the value of your investment in the Surviving Corporation's common stock.***

The Surviving Corporation will have broad discretion over the use of its cash and cash equivalents. You may not agree with the Surviving Corporation's decisions, and its use of the proceeds may not yield any return on your

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investment. A failure by the Surviving Corporation to apply these resources effectively could compromise its ability to pursue its growth strategy and the Surviving Corporation might not be able to yield a significant return, if any, on its investment of these net proceeds. You will not have the opportunity to influence its decisions on how to use the Surviving Corporation's cash resources.

***The Surviving Corporation will incur additional costs and increased demands upon management as a result of complying with the laws and regulations affecting public companies.***

The Surviving Corporation will incur significant legal, accounting and other expenses as a public company that Republic did not incur as a private company, including costs associated with public company reporting obligations under the Exchange Act. The Surviving Corporation's management team will consist of the executive officers of Republic prior to the Merger. Certain of these executive officers and other personnel may need to devote substantial time to gaining expertise related to public company reporting requirements and compliance with applicable laws and regulations to ensure that the Surviving Corporation complies with all of these requirements. Any changes the Surviving Corporation makes to comply with these obligations may not be sufficient to allow it to satisfy its obligations as a public company on a timely basis, or at all. These reporting requirements, rules, and regulations, coupled with the increase in potential litigation exposure associated with being a public company, could also make it more difficult for the Surviving Corporation to attract and retain qualified persons to serve on the board of directors or on board committees or to serve as executive officers, or to obtain certain types of insurance, including directors' and officers' insurance, on acceptable terms.

***Upon completion of the Merger, failure by the Surviving Corporation to comply with the initial listing standards of Nasdaq will prevent its stock from being listed on Nasdaq.***

Upon completion of the Merger, Mesa, under the new name "Republic Airways Holdings Inc." will be required to meet the initial listing requirements to maintain the listing and continued trading of its shares on Nasdaq. These initial listing requirements are more difficult to achieve than the continued listing requirements. Pursuant to the Merger Agreement, Mesa agreed to use its commercially reasonable efforts to cause the shares of Mesa common stock being issued in the Merger (including any common stock issuable in the Escrow Issuance to the Pre-Merger Mesa Shareholders) to be approved for listing on Nasdaq at or prior to the Effective Time. Based on information currently available to Mesa, Mesa anticipates that its stock will be unable to meet the $4.00 minimum bid price initial listing requirement at the Closing unless it effects a reverse stock split. Mesa may, subject to obtaining the prior written consent of Republic as provided under the Merger Agreement, effectuate a reverse stock split of the shares of Mesa common stock in order to facilitate such shares meeting the $4.00 minimum bid price. Should a reverse stock split be effectuated, it cannot be assured that such reverse stock split will result in an approval of the Nasdaq listing or accomplish this objective for any meaningful period of time or result in a trading price for the affected common stock that is proportional to the ratio of the split. Any permanent or sustained increase in the market price of the common stock will depend upon many factors, including business and financial performance, general market conditions and prospects for future success. In addition, a reverse stock split could result in a decrease to the Surviving Corporation's liquidity or negatively impact the Surviving Corporation's overall market capitalization. Following the Merger, if the Surviving Corporation is unable to satisfy Nasdaq listing requirements, Nasdaq may notify the Surviving Corporation that its shares of common stock will not be listed on Nasdaq.

Upon a potential delisting from Nasdaq, if the common stock of the Surviving Corporation is not then eligible for quotation on another market or exchange, trading of the shares could be conducted in the over- the-counter market or on an electronic bulletin board established for unlisted securities such as the Pink Sheets or the OTC Bulletin Board. In such event, it is likely that there would be significantly less liquidity in the trading of the common stock of the Surviving Corporation; decreases in institutional and other investor demand for the shares, coverage by securities analysts, market making activity and information available concerning trading prices and volume; and fewer broker dealers willing to execute trades in the common stock of the Surviving Corporation. Also, it may be difficult for the Surviving Corporation to raise additional capital if the Surviving

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Corporation's common stock is not listed on a major exchange. The occurrence of any of these events could result in a further decline in the market price of the common stock of the Surviving Corporation and could have a material adverse effect on the Surviving Corporation.

***The Surviving Corporation will be subject to laws and regulations affecting public companies that will increase the Surviving Corporation's costs and the demands on management and could harm the Surviving Corporation's operating results and cash flows.***

The Surviving Corporation will be subject to the reporting requirements of the Exchange Act, which requires, among other things, that the Surviving Corporation file with the SEC, annual, quarterly, and current reports with respect to the Surviving Corporation's business and financial condition as well as other disclosure and corporate governance requirements. The Surviving Corporation will be required to comply with these legal and regulatory requirements applicable to public companies and will incur significant legal, accounting, and other expenses to do so. If the Surviving Corporation is not able to comply with the requirements in a timely manner or at all, the Surviving Corporation's financial condition or the market price of the Surviving Corporation's common stock may be harmed. For example, if the Surviving Corporation or its independent auditor identifies deficiencies in the Surviving Corporation's internal control over financial reporting that are deemed to be material weaknesses the Surviving Corporation could face additional costs to remedy those deficiencies, the market price of the Surviving Corporation's stock could decline or the Surviving Corporation could be subject to sanctions or investigations by the SEC or other regulatory authorities, which would require additional financial and management resources.

***If the Surviving Corporation fails to maintain proper and effective internal controls, its ability to produce accurate financial statements on a timely basis could be impaired.***

Provided the Surviving Corporation continues to be listed on Nasdaq, the Surviving Corporation will be subject to the reporting requirements of the Exchange Act, the Sarbanes-Oxley Act, and the rules and regulations of Nasdaq. The Sarbanes-Oxley Act requires, among other things, that the Surviving Corporation maintain effective disclosure controls and procedures and internal control over financial reporting. The Surviving Corporation must perform system and process evaluation and testing of its internal control over financial reporting to allow management to report on the effectiveness of its internal controls over financial reporting in its Annual Report on Form 10-K filing for that year, as required by Section 404 of the Sarbanes-Oxley Act. As a private company, Republic has not been required to document and test its internal controls over financial reporting nor has its management been required to certify the effectiveness of its internal controls and its auditors have not been required to opine on the effectiveness of its internal control over financial reporting. Following the Merger, the Surviving Corporation will be required to incur substantial professional fees and internal costs to expand its accounting and finance functions and expend significant management efforts. The Surviving Corporation may experience difficulty in meeting these reporting requirements in a timely manner.

The Surviving Corporation may discover weaknesses in its system of internal financial and accounting controls and procedures that could result in a material misstatement of its financial statements. The Surviving Corporation's internal control over financial reporting will not prevent or detect all errors and all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system's objectives will be met. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud will be detected.

If the Surviving Corporation is not able to comply with the requirements of Section 404 of the Sarbanes-Oxley Act, or if it is unable to maintain proper and effective internal controls, the Surviving Corporation may not be able to produce timely and accurate financial statements. If that were to happen, the market price of its common stock could decline, and it could be subject to sanctions or investigations by Nasdaq, the SEC, or other regulatory authorities.

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***The unaudited pro forma condensed combined financial information for Mesa and Republic included in this proxy statement/prospectus are preliminary, and the Surviving Corporation's actual financial position and operations after the Merger may differ materially from the unaudited pro forma financial information included in this proxy statement/prospectus.***

The unaudited pro forma financial information for Mesa and Republic included in this proxy statement/ prospectus are presented for illustrative purposes only and is not necessarily indicative of the Surviving Corporation's actual financial condition or results of operations of future periods, or the financial condition or results of operations that would have been realized had the entities been combined during the period presented. The Surviving Corporation's actual results and financial position after the Merger may differ materially and adversely from the unaudited pro forma financial information included in this proxy statement/prospectus. The Exchange Ratio reflected in this proxy statement/prospectus is preliminary. The final Exchange Ratio could differ from the preliminary Exchange Ratio used to prepare the pro forma adjustments. For more information, please see the section titled "*Unaudited Pro Forma Condensed Combined Financial Information*" beginning on page 339 of this proxy statement/prospectus.

#### Future sales of shares by existing stockholders could cause the Surviving Corporation's stock price to decline.
If existing securityholders of Mesa and Republic sell, or indicate an intention to sell, substantial amounts of the Surviving Corporation's common stock in the public market after legal or contractual lock-up restrictions on resale discussed in this proxy statement/prospectus lapse, the trading price of the common stock of the Surviving Corporation could decline.

#### Unfavorable global economic conditions could adversely affect the Surviving Corporation's business, financial condition, results of operations or cash flows.
The Surviving Corporation's results of operations could be adversely affected by general conditions in the global economy and in the global financial markets. A severe or prolonged economic downturn could result in a variety of risks to the Surviving Corporation's business, including, weakened demand for the Surviving Corporation's product candidates and the Surviving Corporation's ability to raise additional capital when needed on acceptable terms, if at all. A weak or declining economy could also strain the Surviving Corporation's suppliers, possibly resulting in supply disruption, or cause the Surviving Corporation's customers to delay making payments for its services. Any of the foregoing could harm the Surviving Corporation's business and the Surviving Corporation cannot anticipate all of the ways in which the current economic climate and financial market conditions could adversely impact its business.

***Provisions of the Post-Conversion Charter and the Post-Conversion Bylaws, which will be the certificate of incorporation and bylaws of the Surviving Corporation and provisions under Delaware law could make an acquisition of the Surviving Corporation more difficult and may prevent attempts by its stockholders to replace or remove its management.***

If Proposal Nos. 1 and 2 are approved by Mesa's stockholders at the Mesa Special Meeting and the Delaware Conversion is completed, the Post-Conversion Charter and the Post-Conversion Bylaws in the forms filed as Exhibit 3.4 and 3.5 to the registration statement of which this proxy statement/prospectus forms a part, respectively, will become Mesa's bylaws and certificate of incorporation, and, assuming the approval of Proposals Nos. 1 and 2, at the Effective Time, will become the Surviving Corporation's bylaws and certificate of incorporation as described in more detail in the section titled "*The Merger Agreement – Governing Documents*" beginning on page 140 of the accompanying proxy statement/prospectus. Provisions that will be included in the Post-Conversion Charter and Post-Conversion Bylaws may discourage, delay, or prevent a merger, acquisition or other change in control of the Surviving Corporation that stockholders may consider favorable, including transactions in which its common stockholders might otherwise receive a premium price for their shares. These provisions could also limit the price that investors might be willing to pay in the future for shares of the Surviving

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Corporation's common stock, thereby depressing the market price of its common stock. In addition, because the Surviving Corporation's board of directors will be responsible for appointing the members of the Surviving Corporation's management team, these provisions may frustrate or prevent any attempts by the Surviving Corporation's stockholders to replace or remove its current management by making it more difficult for stockholders to replace members of the Surviving Corporation's board of directors. Among other things, these provisions will include the following:

• the authorized number of the Surviving Corporation's directors may be changed only by resolution of its board of directors and only its board of directors is authorized to fill vacant directorships and newly created directorships;

• advance notice requirements for nominations for election to the board of directors or for proposing matters that can be acted on at stockholder meetings;

• stockholders are not entitled to the right to cumulate votes in the election of directors;

• limitations on who may call a special meeting of stockholders; and

• the board of directors is authorized to issue preferred stock without stockholder approval, which could be used to institute a "poison pill" that would work to dilute the stock ownership of a potential hostile acquirer, effectively deterring acquisitions that have not been approved by the Surviving Corporation's board of directors.

Moreover, because the Surviving Corporation will be incorporated in Delaware, it will be subject to the provisions of Section 203 of the DGCL, which generally prohibits a Delaware corporation from engaging in a business combination with an interested stockholder (which is generally defined to include any person that owns 15% or more of the corporation's outstanding voting stock and their affiliates and associates) for three years following the time that the person becomes an "interested stockholder" unless, among other exclusions, (i) prior to the date the person becomes an interested stockholder, the board of directors approves either the business combination or the transaction which resulted in the stockholder becoming an interested stockholder, (ii) upon consummation of the transaction which resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced (excluding certain shares), or (iii) the business combination is approved by the board of directors and by the affirmative vote of at least two-thirds of the outstanding voting stock that is not owned by the interested stockholder at a meeting and not by written consent. Although Mesa and Republic believe these provisions collectively will provide for an opportunity to receive higher bids by requiring potential acquirors to negotiate with the Surviving Corporation's board of directors, they would apply even if the offer may be considered beneficial by some stockholders. In addition, these provisions may frustrate or prevent any attempts by the Surviving Corporation's stockholders to replace or remove then current management by making it more difficult for stockholders to replace members of the board of directors, which is responsible for appointing the members of management.

***The Post-Conversion Charter, which will be the certificate of incorporation of the Surviving Corporation will provide that, unless the Surviving Corporation consents in writing to the selection of an alternative forum, certain designated courts will be the sole and exclusive forum for certain legal actions between the Surviving Corporation and its stockholders, which could limit its stockholders' ability to obtain a favorable judicial forum for disputes with the Surviving Corporation or its directors, officers, employees, or agents.***

The Post-Conversion Charter, which will be the certificate of incorporation of the Surviving Corporation as described in more detail in the section titled "*The Merger Agreement – Governing Documents*" beginning on page 140 of the accompanying proxy statement/prospectus, will provide that, unless it consents in writing to an alternative forum, the Court of Chancery of the State of Delaware (or, if such court does not have subject matter jurisdiction thereof, the federal district court of the State of Delaware) is the sole and exclusive forum for (i) any derivative action or proceeding brought on its behalf, (ii) any action asserting a claim of or based on a breach of

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fiduciary duty owed by any of its current or former directors, officers, other employees, or stockholders to the Surviving Corporation or its stockholders, (iii) any action asserting a claim arising pursuant to any provision of the DGCL, its certificate of incorporation or its bylaws or as to which the DGCL confers jurisdiction on the Court of Chancery of the State of Delaware, or (iv) any action asserting a claim that is governed by the internal affairs doctrine, in each case subject to the Court of Chancery having personal jurisdiction over the indispensable parties named as defendants therein, which for purposes of this risk factor refers to herein as the "Delaware Forum Provision." The Surviving Corporation reserves the right to assert that the Delaware Forum Provision applies to any derivative action or proceeding to procure a judgment in the Surviving Corporation's favor, *provided that*, for the avoidance of doubt, the Delaware Forum Provision will not apply to claims arising under the Securities Act, the Exchange Act or any other claim for which the federal district courts are, as a matter of the laws of the United States, the sole and exclusive forum for determination of such a claim. It is, however, uncertain whether a court would enforce the Delaware Forum Provision with respect to a derivative action or proceeding brought by a stockholder to enforce the Surviving Corporation's rights under the Exchange Act. The Surviving Corporation will not assert that the Delaware Forum Provision applies to any direct action brought by a stockholder to enforce rights under the Exchange Act or Securities Act. The certificate of incorporation of the Surviving Corporation will further provide that, unless it consents in writing to an alternative forum, federal district courts of the United States will be the exclusive forum for resolving any complaint asserting a cause of action arising under the Securities Act, which for purposes of this risk factor refers to herein as the "Federal Forum Provision." It is, however, uncertain whether a court would enforce the Federal Forum Provision with respect to a proceeding brought by a stockholder to enforce its rights under the Securities Act. In addition, the certificate of incorporation of the Surviving Corporation will provide that, to the fullest extent permitted by law, any person or entity purchasing or otherwise acquiring any interest in shares of its capital stock is deemed to have notice of and consented to the foregoing Delaware Forum Provision and Federal Forum Provision.

The Delaware Forum Provision and the Federal Forum Provision may impose additional litigation costs on stockholders of the Surviving Corporation in pursuing any such claims, particularly if the stockholders do not reside in or near the State of Delaware. Additionally, such provisions may limit its stockholders' ability to bring a claim in a judicial forum that they find favorable for disputes with the Surviving Corporation or its directors, officers, employees, or stockholders, which may discourage such lawsuits against the Surviving Corporation and its directors, officers, employees, and stockholders even though an action, if successful, might benefit its stockholders.

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#### CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This proxy statement/prospectus and the documents incorporated by reference into this proxy statement/ prospectus contain forward-looking statements relating to Mesa, Republic, the Merger, and the other proposed transactions contemplated thereby.

These forward-looking statements include express or implied statements relating to Mesa's and Republic's management team's expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "intends," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "will," "would," and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward- looking. These forward-looking statements are based on current expectations and beliefs concerning future developments and their potential effects. There can be no assurance that future developments affecting Mesa, Republic or the proposed transaction will be those that have been anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond Mesa's or Republic's control), or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, the risk that the conditions to the Closing are not satisfied, including the failure to obtain stockholder approval for the Merger; uncertainties as to the timing of the consummation of the transaction and the ability of each of Mesa and Republic to consummate the transaction; risks related to Mesa's continued listing on the Nasdaq Stock Market until Closing; risks related to Mesa's and Republic's ability to correctly estimate their respective operating expenses and expenses associated with the transaction, as well as uncertainties regarding the impact any delay in the Closing would have on the anticipated cash resources of the Surviving Corporation upon Closing and other events and unanticipated spending and costs that could reduce the Surviving Corporation's cash resources; the occurrence of any event, change, or other circumstance or condition that could give rise to the termination of the Merger Agreement; the effect of the announcement or pendency of the Merger on Mesa's or Republic's business relationships, operating results, and business generally; costs related to the Merger; the outcome of any legal proceedings that may be instituted against Mesa, Republic, or any of their respective directors or officers related to the Merger Agreement or the transactions contemplated thereby; competitive responses to the transaction; unexpected costs, charges or expenses resulting from the transaction; potential adverse reactions or changes to business relationships resulting from the announcement or completion of the transaction; adverse legislative, regulatory, political, and economic developments. Should one or more of these risks or uncertainties materialize, or should any of Mesa's or Republic's assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. There may be additional risks that Mesa considers immaterial or which are unknown. It is not possible to predict or identify all such risks. Mesa's and Republic's forward-looking statements only speak as of the date they are made, and Mesa and Republic do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities laws.

For a discussion of the factors that may cause Mesa, Republic or the Surviving Corporation's actual results, performance, or achievements to differ materially from any future results, performance, or achievements expressed or implied in such forward-looking statements, or for a discussion of risk associated with the ability of Mesa and Republic to complete the Merger and the effect of the Merger on the business of Mesa, Republic, and the Surviving Corporation, please see the section titled "*Risk Factors*" beginning on page 47 of this proxy statement/prospectus. Additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in reports filed with the SEC by Mesa and incorporated by reference herein. Please see the section titled "*Where You Can Find More Information*" beginning on page 383 of this proxy statement/prospectus. There can be no assurance that the Merger will be completed, or if it is completed, that it will be completed within the anticipated time period or that the expected benefits of the Merger will be realized.

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If any of these risks or uncertainties materialize or any of these assumptions prove incorrect, the results of Mesa, Republic, or the Surviving Corporation could differ materially from the forward-looking statements. All forward-looking statements in this proxy statement/prospectus are current only as of the date on which the statements were made. Mesa and Republic do not undertake any obligation to (and expressly disclaim any such obligation to) publicly update any forward-looking statement to reflect events or circumstances after the date on which any statement is made or to reflect the occurrence of unanticipated events.

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#### THE SPECIAL MEETING OF MESA STOCKHOLDERS

#### Date, Time and Place
The Mesa Special Meeting will be held on , 2025, commencing at : Mountain Standard Time, unless postponed or adjourned to a later date. The Mesa Special Meeting will be held at 2525 E. Camelback Road, Suite 1000, Phoenix, Arizona 85016. You will be able to attend and participate in the Mesa Special Meeting in person where you will be able to ask questions and vote. Mesa is sending this proxy statement/prospectus to its stockholders in connection with the solicitation of proxies by Mesa's board of directors for use at the Mesa Special Meeting and any adjournments or postponements of the Mesa Special Meeting. This proxy statement/prospectus is first being furnished to Mesa stockholders on or about , 2025.

#### Purposes of the Mesa Special Meeting
1. Approve the Merger and all transactions contemplated by the Merger Agreement, including the Merger and the conversion of Mesa from a Nevada corporation to a Delaware corporation by means of a conversion, pursuant to the Plan of Conversion (the "Merger Proposal" or "Proposal No. 1");

2. Approve (i) the issuance of shares of common stock of Mesa, which will represent more than 20% of the shares of Mesa common stock outstanding immediately prior to the Merger, (a) to stockholders of Republic pursuant to the terms of the Merger Agreement, dated as of April 4, 2025, a copy of which is attached as *Annex A* to this proxy statement/prospectus, and (b) in respect of the Escrow Shares, which shall ultimately be distributed to one or more of United Airlines, the Surviving Corporation, or the Pre-Merger Mesa Shareholders, pursuant to the terms of the Merger Agreement and the Three Party Agreement and (ii) the change of control arising from the issuance of shares in connection with the Merger and the Escrow Issuance, pursuant to Nasdaq Listing Rules 5635(a) and 5635(b), respectively (the "Nasdaq Stock Issuance Proposal" or "Proposal No. 2");

3. Approve on an advisory (non-binding) basis, certain compensation payments that will or may be made by Mesa to its named executive officers in connection with the Merger (the "Advisory Compensation Proposal" or "Proposal No. 3");

4. Approve the 2025 Equity Incentive Plan (the "Equity Plan Proposal" or "Proposal No. 4"); and

5. Approve an adjournment of the Mesa Special Meeting, if necessary, to solicit additional proxies if there are not sufficient votes in favor of Proposal Nos. 1 through 4 (the "Adjournment Proposal" or "Proposal No. 5").

Each of Proposal Nos. 1 and 2 is a condition to the completion of the Merger. Therefore, the Merger cannot be consummated without the approval of Proposal Nos. 1 and 2. Proposal Nos. 2, 3, and 4 will not take place unless approved by the requisite Mesa stockholders and the Merger is consummated.

#### Recommendation of Mesa's Board of Directors
Mesa's board of directors believes that each of the proposals to be presented at the Mesa Special Meeting is in the best interests of Mesa and its stockholders and unanimously recommends that its stockholders vote "**FOR**" each of the proposals described in the accompanying proxy statement/prospectus as further described below.

When you consider the recommendation of Mesa's board of directors, you should keep in mind that certain of Mesa's board of directors and officers have interests in the Merger that are different from, or in addition to, your interests as a stockholder. These interests include, among other things:

• the beneficial ownership of certain of Mesa's board of directors and officers of an aggregate of 2,427,852 shares of Mesa common stock, as of June 20, 2025;

• the anticipated continuation of Ellen Artist, a current director of Mesa, as a director of the Surviving Corporation following the Closing; and

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• the continued indemnification of current directors and officers of Mesa and the continuation of directors' and officers' liability insurance after the Merger.

#### Record Date and Voting Power
Only holders of record of Mesa common stock at the close of business on the record date , 2025, are entitled to notice of, and to vote at, the Mesa Special Meeting. At the close of business on the record date, there were holders of record of Mesa common stock and there were shares of Mesa common stock issued and outstanding. Each share of Mesa common stock entitles the holder thereof to one vote on each matter submitted for stockholder approval.

#### Voting and Revocation of Proxies
This proxy statement/prospectus is solicited on behalf of Mesa's board of directors for use at the Mesa Special Meeting.

If, as of the record date referred to above, your shares were registered directly in your name with the transfer agent for Mesa common stock, Computershare, then you are a stockholder of record. Whether or not you plan to attend the Mesa Special Meeting in person, Mesa urges you to fill out and return the proxy card or vote by proxy over the telephone or on the internet as instructed below to ensure your vote is counted, the form of which is attached as *Annex C* to this proxy statement/prospectus.

The procedures for voting are as follows:

If you are a stockholder of record, you may vote at the Mesa Special Meeting. Alternatively, you may vote by proxy by using the accompanying proxy card, over the internet or by telephone. Whether or not you plan to attend the Mesa Special Meeting, Mesa encourages you to vote by proxy to ensure your vote is counted. Even if you have submitted a proxy before the Mesa Special Meeting, you may still attend the Mesa Special Meeting and vote. In such case, your previously submitted proxy will be disregarded.

• To vote at the Mesa Special Meeting, attend the Mesa Special Meeting and vote in person.

• To vote using the proxy card, simply complete, sign and date the accompanying proxy card and return it promptly in the envelope provided. If you return your signed proxy card before the Mesa Special Meeting, Mesa will vote your shares in accordance with the proxy card.

• To vote by proxy over the internet, follow the instructions provided on the proxy card.

• To vote by telephone, you may vote by proxy by calling the toll-free number found on the proxy card.

If you are a beneficial owner of shares registered in the name of your broker, bank, or other agent, you should have received voting instructions with these proxy materials from that organization rather than from Mesa. Simply follow the voting instructions provided to ensure that your vote is counted. You may vote by telephone or over the Internet as instructed by your broker, bank, or other agent. To vote in person at the Mesa Special Meeting, you must contact your broker, bank, or other agent and obtain a valid legal proxy in order to attend, participate in and vote at the Mesa Special Meeting. Follow the voting instructions from your broker, bank, or other agent, or contact your broker, bank, or other agent for instructions.

Mesa provides internet proxy voting to allow you to vote your shares online, with procedures designed to ensure the authenticity and correctness of your proxy vote instructions. However, please be aware that you must bear any costs associated with your internet access, such as usage charges from internet access providers and telephone companies.

If you hold shares beneficially in street name and you do not instruct your broker, bank, or other agent how to vote your shares, your broker, bank, or other agent will only be able to vote your shares with respect to proposals considered to be "routine." Your broker, bank, or other agent is not entitled to vote your shares with

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respect to "non-routine" proposals, resulting in a "broker non-vote" with respect to such proposals. Accordingly, if you hold your shares beneficially in street name, please be sure to instruct your broker, bank or other agent how to vote to ensure that your vote is counted on each of the proposals, following the procedures provided by your broker, bank, or other agent.

All properly executed proxies that are not revoked will be voted at the Mesa Special Meeting and at any adjournments or postponements of the Mesa Special Meeting in accordance with the instructions contained in the proxy. **If a holder of Mesa common stock executes and returns a proxy and does not specify otherwise, the shares represented by that proxy will be voted "FOR" all of the proposals in accordance with the recommendation of Mesa's board of directors.**

If you are a stockholder of record of Mesa, you can revoke your proxy and/or change your vote at any time before your proxy is voted at the Mesa Special Meeting in any one of the following ways:

• You may submit another properly completed proxy with a later date by mail or via the internet.

• You can provide your proxy instructions via telephone at a later date.

• You may send an instrument in writing revoking the proxy or another duly executed proxy bearing a later date to Mesa's corporate secretary. Any written notice of revocation or subsequent proxy card must be received by Mesa's corporate secretary prior to the taking of the vote at the Mesa Special Meeting. Such written notice of revocation or subsequent proxy card should be sent to Mesa's principal executive offices at Mesa Air Group, Inc., 410 North 44th Street, Suite 700, Phoenix, Arizona 85008, Attention: Corporate Secretary.

• You may attend the Mesa Special Meeting and vote in person, although attendance at the Mesa Special Meeting will not, by itself, revoke and/or change your proxy.

If your shares are held by your broker, bank, or other agent, you should follow the instructions provided by them.

#### Who Can Answer Your Questions About Voting Your Shares
If you have any questions about how to vote or direct a vote in respect of your shares of Mesa common stock, you may contact Mesa's proxy solicitor, , toll-free at . Banks and brokers can call collect at or e-mail .

#### Required Vote
The presence at the Mesa Special Meeting of the holders of a majority of the shares of Mesa common stock entitled to vote at the Mesa Special Meeting is necessary to constitute a quorum at the meeting. Abstentions and broker non-votes will be counted towards a quorum. The affirmative vote of a majority of votes cast at the Mesa Special Meeting, assuming a quorum is present, is required for approval of Proposal Nos. 2, 3, and 4. The affirmative vote of the holders of a majority of the outstanding shares of Mesa capital stock entitled to vote thereon at the Mesa Special Meeting is required for approval of Proposal No. 1. The affirmative vote of a majority of the shares of Mesa common stock entitled to vote at the Mesa Special Meeting, present in person or represented by proxy, is required for approval of Proposal No. 5. Each of Proposal Nos. 1 and 2 is a condition to the completion of the Merger. Therefore, the Merger cannot be consummated without the approval of Proposal Nos. 1 and 2. Proposal Nos. 2, 3, and 4 will not take place unless approved by the requisite Mesa stockholders and the Merger is consummated.

Votes will be counted by the inspector of election appointed for the meeting, who will separately count "FOR" and "AGAINST" votes, abstentions and broker non-votes. Abstentions and broker non-votes, if any, will not be treated as shares present for the purpose of determining the presence of a quorum for the transaction of business at the special meeting. Abstentions and broker non-votes, if any, will have no effect on Proposal Nos. 2, 3, and 4, and will have the effect of a vote "AGAINST" Proposal Nos. 1 and 5.

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#### Appraisal or Dissenters' Rights
No appraisal or dissenters' rights are available to holders of shares of Mesa common stock in connection with the Merger or the Delaware Conversion.

#### Solicitation of Proxies
In addition to solicitation by mail, the directors, officers, employees, and agents of Mesa may solicit proxies from Mesa stockholders by personal interview, telephone, email, fax, or otherwise. Republic will pay the SEC filing fees of this proxy statement/prospectus and the proxy card. Mesa will pay the costs of printing this proxy statement/prospectus and the proxy card. Arrangements will also be made with brokerage firms and other custodians, nominees, and fiduciaries who are record holders of Mesa common stock for the forwarding of solicitation materials to the beneficial owners of Mesa common stock. Mesa will reimburse these brokers, custodians, nominees, and fiduciaries for the reasonable out of pocket expenses they incur in connection with the forwarding of solicitation materials.

**As of the date of this proxy statement/prospectus, Mesa's board of directors does not know of any business to be presented at the Mesa Special Meeting other than as set forth in the notice accompanying this proxy statement/prospectus. If any other matters should properly come before the Mesa Special Meeting, it is intended that the shares represented by proxies will be voted with respect to such matters in accordance with the judgment of the persons voting the proxies.**

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#### THE MERGER
*This section and the section titled "The Merger Agreement" beginning on page 138 of this proxy statement/ prospectus describe the material aspects of the Merger and the Merger Agreement. While Mesa and Republic believe that this description covers the material terms of the Merger and the Merger Agreement, it may not contain all of the information that is important to you. You should read carefully this entire proxy statement/ prospectus for a more complete understanding of the Merger and the Merger Agreement and the other documents to which you are referred in this proxy statement/prospectus. Please see the section titled "Where You Can Find More Information" beginning on page 383 of this proxy statement/prospectus.* 

#### Background of the Merger
*The following chronology summarizes the key meetings and events that led to the signing of the agreements. This chronology does not purport to catalog every conversation among the respective parties, their boards of directors, and management, their respective representatives, or other parties.* 

The Mesa board of directors and Mesa's senior management regularly review and discuss Mesa's business, financial, and operational performance, outlook, and prospects in light of industry and market developments and restrictions set forth in its agreements with major carriers. In addition, the Mesa board of directors and senior management periodically review and evaluate various strategic alternatives, including acquisitions, dispositions, and other strategic transactions, as part of ongoing efforts to strengthen Mesa's overall business and enhance stockholder value. These reviews have included, among other things, the consideration of potential opportunities for business combinations, acquisitions, dispositions, minority investments in aviation-related businesses, and other financial and strategic alternatives, in each case, with a view towards enhancing stockholder value and in light of the restrictions set forth in Mesa's existing capacity purchase agreement.

Throughout the process described below, the Mesa management team conducted its discussions and negotiations with Republic and United Airlines principally through Mesa's CEO, Jonathan Ornstein, its President and CFO, Mike Lotz, and its Executive Vice President and General Counsel, Brian Gillman. The Republic management team conducted its discussions and negotiations with Mesa and United Airlines principally through its CEO, Bryan Bedford, its President, Matt Koscal, its CFO, Joe Allman, its General Counsel, Chad Pulley, and the Chairman of its board of directors, David Grizzle.

Senior executives of Mesa and Republic have come to know each other over the course of several years as a result of their involvement in the regional airline industry and as industry competitors. In particular, Mr. Ornstein and Mr. Bedford have known each other for decades and periodically engaged in informal discussions in the normal course of business and at industry events. Similarly, Mr. Ornstein, and Mr. Grizzle are familiar with each other dating back to when they both worked for Continental Airlines.

In early 2023, Mr. Grizzle reached out to Mr. Ornstein to initiate a discussion regarding the parties potentially exploring a strategic transaction. Messrs. Ornstein and Grizzle had periodic conversations throughout the first calendar quarter of 2023, generally discussing the prospects of an acquisition or merger transaction in which Republic would be the surviving operator, which eventually culminated in Mesa and Republic entering into a mutual non-disclosure agreement on March 19, 2023. Over the next several months, the parties began providing each other and their respective advisors reciprocal access to virtual data rooms (including financial and operational information) and began engaging in reciprocal due diligence and in general discussions aimed at gaining a better understanding of each party's respective businesses, operations, and assets and liabilities. In particular, these discussions focused on developing an understanding of Mesa's financial forecast, fleet, capacity purchase agreement status, terms of governmental loans and operations, in particular its obligations related to its assets (including those related to its CRJ aircraft fleet operations) that were unrelated to its E-175 fleet operations (such non-E-175 assets and their associated liabilities, the "Non-Core Business"). Throughout the first half of 2023, representatives of each of Mesa and Republic also engaged in periodic informal discussions with representatives of United Airlines, independently, to discuss whether United Airlines, who has capacity purchase agreements with each of Mesa and Republic, would be willing to help facilitate the transaction.

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On July 19, 2023, Mr. Grizzle and Mr. Ornstein discussed establishing an agenda for a meeting between the broader Mesa and Republic management teams, along with FTICA on Mesa's behalf, to align on the high level material terms and conditions of a potential deal structure, including the elements thereof that the parties might present to United Airlines for its potential participation in and support of a transaction. The meeting was scheduled for July 31, 2023.

On July 31, 2023, representatives of Mesa, including Mr. Ornstein and Mr. Lotz, and representatives of Republic, including Mr. Bedford, Mr. Allman and Mr. Grizzle, met virtually to discuss a potential structure and the principal financial terms of a possible transaction between Mesa and Republic, as well as next steps and a proposed transaction timeline. Also in attendance at this meeting were representatives of FTICA. The parties exchanged historical financial information, financial forecasts, and other business and operations data.

On August 7, 2023, Mesa, Republic and United Airlines executed a tri-party nondisclosure agreement to enable the parties to share information with United Airlines related to transaction discussions.

On August 8, 2023, Messrs. Ornstein and Lotz of Mesa and Messrs. Grizzle, Bedford, Koscal, and Allman of Republic met in Chicago with Mr. Michael Leskinen, Vice President Corporate Development & Investor Relations of United Airlines, Mr. Jonathan Ireland, Senior Vice President – Finance of United Airlines, and Mr. Oliver Mion, Director – Strategic Analysis & Corporate Development, to provide Messrs. Leskinen, Ireland, and Mion with an overview of the discussions between Mesa and Republic on July 31st and the potential for United Airlines to provide financial support for the proposed combination of Mesa and Republic.

Commencing with a three party in-person meeting in Chicago on August 22, 2023, Mesa, Republic and United Airlines began engaging in more detailed discussions regarding the terms of the potential transaction. Also, during the second half of 2023, the Mesa board began holding a series of meetings to evaluate the potential transaction.

At the August 22 meeting, which was attended by Messrs. Ornstein and Lotz of Mesa, Messrs. Bedford, Koscal and Allman of Republic and Mr. Leskinen of United Airlines (and which included a review of Mesa's financials, fleet and related maintenance schedules), representatives of Republic presented their preliminary views that (i) only Mesa's E-175 aircraft fleet operations, and not any elements of the Non-Core Business, would be needed for the post-closing operation of the combined company, and (ii) in order for Republic to be willing to engage in any potential transaction, United Airlines would need to provide financial assistance to the combined company, including by assuming or otherwise extinguishing the liabilities associated with the Non-Core Business. In response, Mr. Leskinen agreed in concept with providing some measure of financial assistance to the combined company, including through liability extinguishments, but noted that United Airlines may need to be entitled to receive some portion of the equity of the combined company corresponding to the quantum of liabilities extinguished by it, through a to-be-negotiated escrow arrangement.

On October 3, 2023, the Mesa board of directors held a special meeting, with members of senior management in attendance. Mr. Ornstein briefed the board of directors regarding recent discussions with Republic, negotiations regarding the terms of a potential transaction, and an overview of the material terms under discussion between the parties.

Later on October 3, representatives of Mesa sent representatives of Republic a draft of a non-binding term sheet (the "Term Sheet") setting forth, among other things, the proposed framework for the Merger (including that Republic would appoint the C-suite officers of the combined company, along with other customary terms and conditions for a public company merger) and for United's financial assistance to the combined company. This draft of the Term Sheet also proposed an equity split of 80% for Republic stockholders and 20% for Mesa stockholders, with a to-be-determined portion of the 20% Mesa entitlement to be subject to the United Airlines escrow arrangement discussed by the parties at their August 17, 2023 meeting.

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On October 5, 2023, representatives of Republic sent representatives of Mesa a revised draft of the Term Sheet. This draft provided, in part, for a 90%/10% equity split and took no position on what percentage, if any, of the 10% Mesa allotment should be subject to the United Airlines escrow arrangement.

On October 9, 2023, the Mesa board of directors held a special meeting, with members of senior management and a representative of FTICA in attendance, at which Mr. Ornstein briefed the board of directors regarding his recent meeting with Scott Kirby, the Chief Executive Officer of United Airlines, and Mr. Leskinen, at the time the Executive Vice President and Chief Financial Officer of United Airlines, regarding the proposed combination of Mesa and Republic, which included discussion of the potential for United Airlines to provide financial support in connection therewith.

On October 10, 2023, representatives of Mesa sent representatives of Republic a revised draft of the Term Sheet. This draft provided, in part, for an 80%/15% equity split, with the remaining 5% of the combined company's equity being placed into escrow at the closing and available to United Airlines based on the quantum of liabilities extinguished by it. This draft also provided that the contemplated post-closing amended and restated capacity purchase agreement between the combined company and United Airlines relating to Mesa's E-175 aircraft fleet would only encompass sixty E-175 aircraft rather than the eighty E-175 aircraft that had been reflected in prior drafts of the Term Sheet.

On October 24, 2023, the Mesa board of directors held a special meeting, with members of senior management in attendance. Mr. Ornstein briefed the board of directors on recent discussions with Republic and United Airlines and the status of the Term Sheet negotiations. Mr. Ornstein reiterated to the Mesa board of directors the value that United Airlines could provide to the combined company were United Airlines to provide financial support. Mr. Ornstein also briefed the board of directors on the initial deal valuation analysis performed by FTICA.

On November 13-14, 2023, Messrs. Koscal and Allman of Republic met in Phoenix with Messrs. Ornstein, Lotz and Gillman of Mesa to continue Republic's diligence of Mesa's business, operations, assets and liabilities.

On November 17, 2023, the Mesa board of directors held a special meeting, with members of senior management and representatives of FTICA and DLA Piper LLP (US) ("DLA Piper"), outside counsel to Mesa, in attendance. Mr. Ornstein briefed the board of directors on recent discussions with Republic and United Airlines regarding the terms of United Airlines' proposed financial support of the Merger.

On November 27, 2023, the Mesa board of directors held a special meeting, with members of senior management and representatives of Pachulski Stang Ziehl & Jones LLP ("Pachulski Stang"), outside counsel to Mesa, and DLA Piper, in attendance. Mr. Ornstein reviewed the terms of United Airlines' latest proposal regarding its entitlement to stock in the combined company in exchange for the provision of financial assistance. A representative of Pachulski Stang provided the Mesa board of directors with an overview of Mesa's considerations from a legal standpoint. The meeting was concluded with Mr. Ornstein committing to follow up with representatives of United Airlines regarding advancing Mesa's negotiations with United Airlines regarding providing financial support to the proposed Merger.

On December 4, 2023, representatives of Republic sent representatives of Mesa a revised draft of the Term Sheet. This draft provided, in part, for an 88%/12% equity split and took no position on what percentage, if any, of the 12% Mesa allotment should be subject to the United Airlines escrow arrangement.

On December 5, 2023, the Mesa board of directors held a regularly scheduled meeting, with members of senior management in attendance. At this meeting, the Mesa board of directors received a general business, operational performance, and financial update. The Mesa board of directors and members of senior management then discussed the status of discussions with representatives of Republic and United Airlines. Mr. Ornstein provided an overview of the latest proposal from United Airlines regarding the post-merger ownership of Mesa.

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On December 7, 2023, the Mesa board of directors held an executive session, with only independent members of the board of directors present, joined by Mr. Gillman and a representative of DLA Piper. During the meeting, a representative of DLA Piper reviewed with the members of the Mesa board of directors their fiduciary duties in the context of a potential merger/acquisition. The Mesa board of directors also considered the appropriateness of forming a committee of independent directors to facilitate the Mesa board of directors' involvement in Mesa's discussions and consideration of strategic alternatives, to direct and supervise management and Mesa's advisors in connection with the evaluation, solicitation, negotiation, and review of potential transactions, and to approve the engagement of advisors. The members of the Mesa board of directors considered and confirmed that none of them had any relationships with Republic or its affiliates that would impair their ability to evaluate the transaction objectively and determined that, given the relatively small size of the Mesa board of directors, number of independent directors, and ability of the members of the board of directors to meet as needed, forming a committee was not necessary.

Also on December 7, 2023, representatives of Mesa sent representatives of United Airlines the December 4, 2023 draft of the Term Sheet prepared by Republic.

On December 11, 2023, representatives of Mesa sent representatives of United Airlines a revised draft of the Term Sheet. This draft provided, in part, for the equity splits to either be (i) 85% to Republic shareholders and 15% to Mesa shareholders or (ii) 88% to Republic shareholders and 12% to Mesa shareholders with Mesa shareholders retaining Mesa's investments in Archer and Heart. This draft did not include an allotment to United Airlines in respect of the escrow arrangement.

On December 18, 2023, representatives of United Airlines sent representatives of Mesa a revised draft of the Term Sheet. This draft, in part, accepted the bifurcated equity split proposal from the December 11 Mesa draft but proposed a 5% escrow allotment for United Airlines (to come out of the 15% or 12%, as applicable, allotment for Mesa shareholders).

Over the ensuing days, representatives of Mesa, Republic and United engaged in numerous discussions regarding the terms and conditions of the Term Sheet and, on December 26, 2023, representatives of United Airlines sent representatives of Mesa a revised draft of the Term Sheet. This draft provided, in part, for an 88%/7% equity split, with the remaining 5% of the combined company's equity being placed into escrow at the closing and available to United Airlines based on the quantum of liabilities extinguished by it (with any remainder to revert first to the combined company and then to the Pre-Closing Mesa Shareholders). Later that evening, representatives of Mesa sent representatives of Republic the United Airlines draft of the Term Sheet.

Over the course of the next several days, until the Term Sheet was executed on January 11, 2024, Mesa, Republic and United Airlines exchanged further drafts of, and finalized the remaining terms and conditions of, the Term Sheet. The execution version of the Term Sheet provided for the 88%/7%/5% equity split reflected in United Airlines' December 26, 2023 draft, and further provided for Mesa's disposal of certain assets (including the sale of certain E-175 aircraft to United Airlines at the closing of the Merger), extinguishment of certain liabilities and closing of certain related transactions in connection with the closing of the Merger.

On January 31, 2024, following approval by the Mesa board of directors, Mesa entered into an engagement letter with FTICA to serve as its exclusive financial advisor and agent in connection with (i) the sale of aircraft, engines, parts, inventory, or other assets, (ii) the placement of financing for aircraft, engines, parts, inventory, or other assets and/or (iii) a refinancing of some or all of Mesa's existing indebtedness, (iv) the sale of all or part of Mesa, (v) the creation of strategic partnerships, joint ventures, and/or similar transactions, and (vi) the refinancing / recapitalization of Mesa, whether by debt and/or equity.

Beginning in early February 2024, representatives of Simpson Thacher & Bartlett LLP ("Simpson Thacher"), Republic's transaction counsel, began circulating initial drafts of the Merger Agreement and the Three Party Agreement to representatives of Mesa, United Airlines and their respective transaction advisors, and over

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the next several months, Republic and Mesa and their respective transaction advisors, with respect to the Merger Agreement, and Republic, Mesa, and United Airlines and their respective transaction advisors, with respect to the Three Party Agreement, began negotiating the principal terms of, and began periodically exchanging subsequent drafts of, these two transaction agreements, with a specific focus on, in the case of the Merger Agreement, Republic's and Mesa's respective representations and warranties and pre-closing covenants and, in the case of the Three Party Agreement, the mechanics providing for, among other things, Mesa's pre-closing sales of certain assets and extinguishments of certain liabilities, United's assistance in connection therewith, the disposition of the 5% allotment of shares described in the Term Sheet and the circumstances under which the Three Party Agreement could be terminated.

On March 6, 2024, the Mesa board of directors held a regularly scheduled meeting joined by members of senior management and a representative of FTICA. At this meeting, the Mesa board of directors received a general business, operational performance, and financial update. Mr. Ornstein also provided the board of directors with an update on Mesa's discussions with Republic, reiterating the complexity of the negotiations, including elements involving United Airlines and its potential to provide financial support for the proposed transaction. Having agreed to the Surviving Corporation proposed equity split of 88% for the former Republic stockholders, 7% for the Pre-Closing Mesa Shareholders, and 5% to be held in escrow, discussions centered on and the Mesa Board focused on (i) an overview of the Mesa obligations that were currently outstanding that could impact the amount available to the Pre-Closing Mesa Shareholders and the plans to sell excess assets and extinguish existing liabilities to maximize amounts available to the Pre-Closing Mesa Shareholders, and (ii) an overview of Mesa costs and expenses under consideration by United Airlines to assume in connection with the Merger. Mr. Ornstein also briefed the board of directors on the anticipated timing of the proposed merger, Mesa's prospects for remaining a standalone regional airline, and separate plans to sell its excess assets and paydown debt.

In April 2024, Mesa entered into a nondisclosure agreement with another regional airline ("Party A"). Mr. Ornstein engaged in discussions with the President and Chief Executive Officer of Party A with respect to a potential strategic transaction. These discussions were preliminary in nature and did not advance beyond the early exploratory discussions regarding each party's possible interest in a strategic transaction.

On May 7, 2024, the Mesa board of directors held a regularly scheduled meeting attended by members of senior management and a representative of FTICA. At this meeting, the Mesa board of directors received a general business, operational performance, and financial update, and addressed matters relating to its 2024 annual meeting of stockholders. Mr. Ornstein also provided the board of directors with an update on the negotiations between the parties and the open issues that remain unresolved. Specific matters discussed at this meeting centered on the following: (i) the current status of the negotiation of the Three Party Agreement among the parties, and (ii) Mesa's intention to reduce its working capital deficit through the sale of excess assets.

On July 18, 2024, representatives of Mesa, including Messrs. Ornstein and Lotz, representatives of Republic, including Messrs. Bedford, Koscal, and Allman, and representatives of United Airlines, including Andrew Nocella, Executive Vice President and Chief Commercial Officer of United Airlines, and Messrs. Leskinen, and Ireland, along with Patrick Manning, Director, United Express Commercial Strategy and Contracts, met in Chicago. The discussion at this meeting centered on open issues in the Three Party Agreement (in particular, considerations regarding Mesa's sale of assets and extinguishment of liabilities and United's assistance in connection therewith, along with the Three Party Agreement termination mechanics), and through the remainder of the summer and early fall, these discussions continued periodically.

On August 14, 2024, the Mesa board of directors held a regularly scheduled meeting joined by members of senior management and a representative of FTICA. At this meeting, the Mesa board of directors received a general business, operational performance, and financial update. Mr. Ornstein provided the board of directors with an update on the status of Mesa's discussions with Republic and United Airlines, noting, among other things, that some progress had been made in the negotiation of the Three Party Agreement, but that certain key issues remained open, including the status of Mesa's disposition of excess assets and its projected working capital shortfall in connection with the closing.

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Over the course of the latter half of August 2024, the three parties negotiated a change to the pro forma equity splits of the Surviving Corporation such that, immediately after giving effect to the Closing, the Pre-Closing Mesa Shareholders would own 6% of the common stock of the Surviving Corporation (rather than 7%, per the January 11, 2024 term sheet), former Republic stockholders would own 88% of the common stock of the Surviving Corporation (as per the January 11, 2024 term sheet), and United Airlines would have the right to receive up to 6% of the common stock of the Surviving Corporation (rather than up to 5%, per the January 11, 2024 term sheet), with any remainder to revert first to the Surviving Corporation and then to the Pre-Closing Mesa Shareholders. During this period, the three parties also negotiated a change to the Three Party Agreement to provide that United Airlines would have the ability to terminate the Three Party Agreement if the finally determined Net Debt Amount is equal to or greater than $60 million (versus the $50 million threshold that had previously been under discussion among the parties).

Also over the course of the latter half of 2024, the three parties negotiated a change to the structure of the Three Party Agreement such that, rather than sell certain E-175 aircraft to United Airlines at the closing of the Merger, Mesa would instead sell such aircraft to United Airlines on a rolling basis throughout the remainder of 2024 and into 2025 to provide Mesa with added liquidity in the lead up to the execution of the transaction agreements.

On November 19-20, 2024, representatives of Mesa, including Messrs. Ornstein, Lotz and Gillman; representatives of Republic, including Messrs. Bedford, Koscal, Allman, and Pulley; and representatives of United Airlines, including Messrs. Ireland, Shawn Morris, Head of United Express, Jeff Wittig, Senior Managing Counsel, Corporate Transactions, Messrs. Manning and Nocella, and Ms. Anna Thomsen, Managing Director, Commercial FP&A, met in Chicago (with certain outside advisors of the transaction participants joining remotely for certain portions of these meetings). These discussions centered on details regarding Mesa's disposition of excess assets, including the cadence and scope thereof, and related open issues in the Three Party Agreement.

On December 3, 2024, the Mesa board of directors held a regularly scheduled meeting joined by members of senior management and a representative of FTICA. At this meeting, the Mesa board of directors received a general business, operational performance, and financial update. Members of senior management provided the Mesa board of directors with an update on Mesa's discussions with Republic and the proposed Merger, including the latest proposal regarding the pro forma equity ownership of the combined company.

On each of December 4-5, 2024 and December 12, 2024, representatives of Mesa, including Messrs. Lotz and Gillman (joined by representatives of FTICA), representatives of United Airlines, including Messrs. Morris and Manning and Ms. Thomsen, and representatives of Republic, including Messrs. Koscal and Allman, met in Phoenix and by teleconference, to conduct confirmatory financial and accounting due diligence regarding Mesa.

On January 22-23, 2025, representatives of Mesa, including Messrs. Ornstein, Lotz and Gillman, and representatives of Republic, including Messrs. Bedford, Koscal, Allman, and Pulley, and representatives of United Airlines, including Messrs. Ireland, Nocella, Morris, Wittig and Manning, and Ms. Thomsen, met in Chicago. The parties engaged in ongoing discussions regarding the principal transaction documents, the timing for the sale by Mesa of its excess assets, the status of the Mesa balance sheet, the proposed net debt reconciliation process, the status of Mesa's UST debt, and related issues in the Three Party Agreement, including with respect to the potential terms of separation and consulting arrangements with each of Messrs. Ornstein, Lotz, and Gillman.

Following this meeting and through April 4, 2025, representatives of Republic, on the one hand, and Mr. Lotz, on the other hand, negotiated, exchanged numerous drafts of, and finalized the terms of a proposed form of the Separation and Consulting Agreements to be entered into between the combined company and each of Messrs. Ornstein, Lotz, and Gillman, contingent upon the closing of the Merger.

On January 23, 2025, Mesa entered into an engagement letter with FTICA to render a fairness opinion to the Mesa board of directors in connection with the transaction, with a specific focus on assessing the fairness of the

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currently contemplated pro forma Surviving Corporation equity splits providing for the former Republic stockholders to hold 88%, for the Pre-Closing Mesa Shareholders to hold 6%, and for 6% to be issued into escrow (and ultimately to become available to the Pre-Closing Mesa Shareholders, subject to it first becoming available to United Airlines and then to the Surviving Corporation). Mesa's management instructed FTICA to assume for purposes of its analysis that the Exchange Ratio would be equal to 636.00, which ratio Mesa's management derived by assuming that (i) the number of issued and outstanding shares of Mesa common stock as of immediately prior to the Closing (the "Putative Mesa Shares") would be equal to 47,701,301, and that the total number of Putative Mesa Shares would be equal to 6% of the total issued and outstanding Mesa shares after giving effect to the transactions contemplated by the Merger Agreement and the Three Party Agreement (i.e., after giving effect to the issuance of shares to former Republic stockholders and the issuance of the Escrow Shares), and (ii) the number of issued and outstanding shares of Republic common stock as of immediately prior to the Closing (the "Putative Republic Shares") would be equal to 1,100,000, and that the total number of Putative Republic Shares would be converted pursuant to the Merger into a number of shares of Mesa common stock equal to 88% of the total issued and outstanding Mesa shares after giving effect to the transactions contemplated by the Merger Agreement and the Three Party Agreement. The number of Putative Mesa Shares included the total number of shares of Mesa common stock that would be issuable upon the exercise in full of Mesa's U.S. Treasury warrants (the "Mesa Warrant-Linked Shares") and the number of Putative Republic Shares included the total number of shares of Republic common stock that would be issuable upon the exercise in full of Republic's U.S. Treasury warrants (the "Republic Warrant-Linked Shares").

On February 13, 2025, the Mesa board of directors met, with members of Mesa's senior management and representatives of DLA Piper and FTICA in attendance. At this meeting, the Mesa board of directors received a general business, operational performance, and financial update. Mr. Lotz then provided an update to the board of directors regarding the proposed Merger with Republic, noting that the Mesa stockholders would receive up to 12% of the combined company, with 6% at the closing of the Merger and up to an additional 6% based on the resolution of the net debt settlement process. Mr. Lotz then discussed the timing of the proposed Merger, the general terms of the Three Party Agreement, United Airlines' termination rights thereunder, and fees payable by Mesa in such event. During the meeting, a representative of DLA Piper reviewed with the members of the Mesa board of directors a draft of the Merger Agreement and related documentation that were distributed in advance of the meeting. Mr. Gillman and a representative of DLA Piper reviewed in detail the provisions of the Merger Agreement, including the representations and warranties, the various negative and affirmative covenants, the termination provisions, the non-solicitation and related termination fee provisions, and the lockup agreements requested of certain Republic stockholders.

On February 20, 2025, representatives of Simpson Thacher delivered to Mesa and DLA Piper an initial draft of the Republic disclosure schedules to the draft Merger Agreement, and on February 24, 2025, a representative of Mesa delivered to Simpson Thacher and Republic an initial draft of the Mesa disclosure schedules to the draft Merger Agreement. Between February 20, 2025 and April 4, 2025, representatives of Republic and Simpson Thacher on the one hand, and representatives of Mesa and DLA Piper, on the other hand, exchanged drafts of each party's disclosure schedules in response to disclosure updates by the other party, comments from the other party, and minor updates to the draft Merger Agreement.

On March 17, 2025, the Mesa board of directors met, with members of Mesa's senior management and representatives of DLA Piper and FTICA in attendance. At this meeting, Mr. Ornstein provided the board of directors with an update on the status of the Merger negotiations with Republic. Mr. Lotz reiterated information from the February 17th meeting regarding the ownership that the Mesa Pre-Closing Stockholders would have in the Surviving Corporation and their right to receive up to an additional 6% of the Surviving Corporation post- Merger, subject to certain conditions. Mr. Ornstein briefed the board of directors regarding the remaining open business points. A representative of FTICA then reviewed its financial analysis of the Exchange Ratio (assuming an Exchange Ratio of 636.00) and delivered its oral opinion, subsequently confirmed in writing, that, as of March 17, 2025 and subject to the assumptions, qualifications, and limitations outlined in its written opinion, the Exchange Ratio (assuming an Exchange Ratio of 636.00) pursuant to the Merger Agreement was fair from a

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financial point of view to the holders of the shares of Mesa common stock (see the section titled *"The Merger — Opinion of Mesa's Financial Advisor"* beginning at page 106 of this proxy statement/prospectus for a detailed description of FTICA's opinion).

Following the March 17th Mesa board of directors meeting and through April 4, 2025, representatives of Mesa and Republic refined their understanding of the assumptions that should underlie the calculation of the Exchange Ratio in order to give effect to the 88%/6%/6% pro forma Surviving Corporation equity splits described above. In particular, representatives of Mesa and Republic determined not to include the Mesa Warrant-Linked Shares in the total number of Putative Mesa Shares or the Republic Warrant-Linked Shares in the total number of Putative Republic Shares and to make other minor adjustments to the assumptions underlying the total number of Putative Republic Shares, including to exclude a certain number of shares to be redeemed from certain members of the Republic board of directors. By making these adjustments, the parties ultimately determined that the Exchange Ratio should be equal to 584.90 (i.e., the ratio ultimately reflected in the Merger Agreement) in order to thereby give effect to the 88%/6%/6% pro forma Surviving Corporation equity splits described above and the updated and finalized share counts provided by Mesa and Republic following the initial calculation of the 636.0 Exchange Ratio utilized in FTICA's fairness opinion. In July 2025, at the request of the Mesa board of directors, FTICA provided a bringdown letter addressing the change in the Exchange Ratio from 636.0 to 584.9 and confirming its conclusion presented in its opinion as of March 17, 2025.

On March 28, 2025, the Mesa board of directors met, with members of Mesa's senior management and representatives of DLA Piper and FTICA in attendance. At this meeting, Mr. Ornstein provided the Mesa board of directors with an update on the status of the Merger negotiations with Republic. A representative of FTICA addressed questions from members of the Mesa board of directors regarding the post-Merger capital structure of the Surviving Corporation and confirmed there were no changes to its opinion delivered on March 17, 2025. Following these discussions, the Mesa board of directors unanimously (i) determined that the Merger and the other transactions contemplated by the Merger Agreement, taken together, are on terms that are fair to, advisable, and in the best interests of Mesa and its stockholders, (ii) approved and declared advisable the Merger Agreement, the Merger and the other transactions contemplated thereby, (iii) directed that the adoption of the Merger Agreement be submitted to the stockholders of Mesa at the Mesa Special Meeting for approval, and (iv) resolved to recommend that the stockholders of Mesa approve and adopt the Merger Agreement.

On April 4, 2025, Mesa and Republic signed the Merger Agreement, and Mesa, Republic, and United Airlines also executed the Three Party Agreement. Further, on April 4, 2025, each of Messrs. Ornstein, Lotz, and Gillman executed the Separation and Consulting Agreements with Mesa.

On April 7, 2025, before the U.S. financial markets opened, Mesa and Republic issued a joint press release announcing the execution of the Merger Agreement and the terms of the transaction.

#### Mesa's Reasons for the Merger
During the course of its evaluation of the Merger Agreement and the transactions contemplated by the Merger Agreement, the Mesa board of directors held numerous meetings, consulted with Mesa's management, Mesa's consultants and advisors, outside legal counsel and financial advisor, and reviewed and assessed a significant amount of information. In reaching its decision to approve the Merger Agreement and the transactions contemplated by the Merger Agreement, the Mesa board of directors considered a number of factors that it viewed as supporting its decision to approve the Merger Agreement, including:

*Strategic and Financial Benefits of the Merger* 

• The expectation that the Merger would create a larger, better capitalized company with complementary services and a strengthened U.S. and international commercial reach;

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• The expectation that the Surviving Corporation will be better positioned to pursue a more aggressive growth strategy in comparison to Mesa on a stand-alone basis as a result of the Surviving Corporation's anticipated scale, larger market capitalization, enhanced access to capital over the short-term and long-term, and likelihood of increased access to business development opportunities as a result of its larger market presence;

• The current and prospective competitive climate in the airline industry (and for regional airlines in particular), including regulatory, financial, economic, and other challenges facing industry participants, and the belief that the Surviving Corporation, in light of its larger scale, strong balance sheet, more comprehensive service offerings, and market presence, will be better positioned to meet these challenges;

• The fact that Mesa stockholders will own approximately six percent (6%) of the Surviving Corporation immediately following completion of the Merger, with the prospect of owning up to an additional six percent (6%) subject to certain contingencies set forth in the Merger Agreement and the Three Party Agreement;

• The fact that the number of shares of Mesa common stock issuable in exchange for shares of Republic common stock is fixed, which provides certainty to Mesa stockholders as to their approximate aggregate pro forma percentage ownership of the Surviving Corporation and will not fluctuate based upon changes in the market price of shares of Mesa common stock or shares of Republic common stock between the date of the Merger Agreement and the Closing Date;

• The potential opportunity for Mesa stockholders to participate in a larger, better capitalized, and stronger company (both financially and operationally), post-Closing, and the potential to realize the long-term benefit of the Surviving Corporation's future profitability;

• The content of the fairness opinion provided by FTICA, including FTICA's conclusion regarding the fairness, from a financial point of view, of the Exchange Ratio to the Mesa Legacy Shareholders, assuming that the Mesa Legacy Shareholders collectively will hold 6% or more of Mesa common stock on a fully diluted basis as a consequence of the Merger;

*Other Considerations* 

• The fact that Mesa, together with its advisors, over a lengthy period of time, explored strategic alternatives, giving due regard to the requirement that Mesa's sole code share partner, United Airlines, would have the right to consent to the Merger or any other similar business combination transaction under consideration pursuant to contractual provisions;

• The fact that the increased rates payable to Mesa under its United CPA expire in March 2026. In addition, the termination date for the first 30 of Mesa's E175 aircraft is March 31, 2026. Thereafter, additional aircraft begin rolling off the United CPA on July 1, 2027, and continue to roll off until the final aircraft rolls off on November 30, 2028. Without further material modifications to the rates and the term of the aircraft operating under the United CPA, Mesa's outlook and prospects remained unclear;

• Mesa's business, financial condition, including debt obligations, historical and projected financial performance, competitive position, assets, and future prospects as a standalone company;

• The expectation that the Merger will result in greater value to Mesa stockholders than the value that could be expected to be generated from the various other strategic alternatives available to Mesa or from Mesa remaining as a standalone company;

• The fact that the Merger is intended to qualify as a tax-free reorganization for United States federal income tax purposes;

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• Mesa's knowledge of Republic's business, operations, operating results, financial condition, strategy, and future prospects taking into account the results of Mesa's due diligence review of Republic;

• The fact that, subject to compliance with the terms and conditions of the Merger Agreement, Mesa is permitted to furnish information to and conduct negotiations with third parties that make unsolicited acquisition proposals and, subject to payment of a termination fee, terminate the Merger Agreement in order to accept a superior proposal;

• The expectation that the Merger will be consummated, based on, among other things, the limited number of conditions to the Merger and the commitment made by parties to cooperate and use reasonable best efforts to obtain regulatory clearances, including under the HSR Act. The waiting period under the HSR Act with respect to the filings made by Mesa and by Republic expired on June 16, 2025;

• The possibility of continuing to pursue Mesa's long-term business plan as an independent public company as an alternative means of creating stockholder value, and the business, financial, market, and execution risks and uncertainties of such alternative as to the realization of Mesa's strategic goals and the future value of Mesa's shares;

*Uncertainties, Risks and Potentially Negative Factors* 

• The fact that Mesa stockholders will own a materially smaller percentage in the Surviving Corporation than Mesa stockholders own in Mesa currently;

• The difficulty and costs inherent in the combination of two businesses of the size and complexity of Mesa and Republic and the risk that the cost savings, synergies, and other benefits expected to be obtained as a result of the Merger might not be fully or timely realized;

• The fact that the number of shares of Mesa common stock issuable in exchange for shares of Republic common stock is fixed and will not adjust to compensate for changes in the price of shares of Mesa common stock prior to the consummation of the Merger;

• The fact that certain provisions of the Merger Agreement, although reciprocal, may have the effect of discouraging alternative business combination transactions involving Mesa, including restrictions on Mesa's ability to solicit proposals for alternative transactions and the requirement that Mesa pay a termination fee to Republic in certain circumstances following the termination of the Merger Agreement;

• The restrictions on the conduct of Mesa's business during the pendency of the Merger, which may delay or prevent Mesa from undertaking potential business opportunities that may arise;

• The adverse impact that business uncertainty prior to the Effective Time of the Merger could have on Mesa's and Republic's ability to attract, retain and motivate key personnel until the Effective Time;

• The outside termination date in the Merger Agreement and the fact that there can be no assurance that the conditions in the Merger Agreement will be satisfied and, as a result, the Merger may not be consummated and the potential consequences of non-consummation, including the potential negative impacts on Mesa, its business, the trading price of Mesa's shares, and Mesa's ability to attract and retain key management personnel and employees;

• The risk that regulatory agencies may not approve the Merger or may impose terms and conditions on their approvals that adversely affect the business and financial results of the Surviving Corporation;

• The time, effort, and substantial costs involved in connection with entering into the Merger Agreement and completing the Merger and the related disruptions to the operation of Mesa's business, including the risk of diverting management's attention from other strategic priorities to implement Merger integration efforts, and the risk that the operations of Mesa would be disrupted by employee concerns or departures or by changes to or termination of Mesa's relationships with its key third party relationships following the public announcement of the Merger;

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• The fact that Mesa has incurred and will continue to incur significant transaction costs and expenses in connection with the Merger, regardless of whether the Merger is consummated;

• The risk that if the Merger Agreement is terminated that Mesa may be unable to meet its obligations under its existing debt agreements, resulting in an event of default and the acceleration in full of the amounts outstanding thereunder; and

• The risk that Mesa stockholders or the Republic stockholders may fail to approve the Merger.

The foregoing information and factors considered by the Mesa board of directors are not intended to be exhaustive but are believed to include all of the material factors considered by the Mesa board of directors. In view of the wide variety of factors considered in connection with its evaluation of the Merger and the complexity of these matters, the Mesa board of directors did not find it useful to attempt, and did not attempt, to quantify, rank, or otherwise assign relative weights to these factors. In considering the factors described above, individual members of the Mesa board of directors may have given different weight to different factors. The Mesa board of directors conducted an overall analysis of the factors described above, including thorough discussions with, and questioning of, Mesa's management, outside legal counsel, and financial advisor, and considered the factors overall to be favorable to, and to support, its determination.

#### Republic's Reasons for the Merger
In the course of reaching its decision to approve the Merger Agreement and the other transaction agreements and the transactions contemplated thereby, including the Merger, Republic's board of directors held numerous meetings, consulted with Republic's senior management and outside legal counsel, and considered a wide variety of factors, including the following factors which it viewed as supporting its decision (which factors are not necessarily presented in any order of relative importance):

• the Merger will potentially expand the access to capital and the range of investors available as a public company, compared to the capital and investors Republic could otherwise gain access to if it continued to operate as a privately-held company;

• the potential benefits from increased public market awareness of Republic;

• the historical and current information concerning Republic's business, including its financial performance and condition, operations, and management;

• the complementary nature of Mesa's operations and the expected combined financial results and operating plans, along with the management structure of the combined company, including the appointment of certain Republic executive officers and non-employee directors to the combined company;

• the shares of Mesa common stock issued to Republic stockholders will be registered on a Form S-4 registration statement and will become freely tradable for Republic stockholders who are not affiliates of Republic and who are not parties to lock-up agreements;

• the enhanced scale of the combined company, both financially and operationally, including a larger unified fleet of aircraft, broader flying networks, and enhanced crew resource management;

• the entry of the combined company and United into a new 10-year capacity purchase agreement;

• the terms and conditions of the Merger Agreement and the Three Party Agreement.

Republic's board of directors also considered a number of uncertainties and risks in deliberations concerning the Merger and the transactions contemplated by the Merger Agreement, including the following (which factors are not necessarily presented in any order of relative importance):

• the possibility that the Merger might not be completed, or that its completion may be delayed;

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• the potential effect of the termination fee of $1.5 million payable to Mesa under certain circumstances;

• the possibility that Mesa could consider certain unsolicited acquisition proposals;

• the regulatory approvals required to complete the merger and the potential length of the regulatory approval process;

• the cost, time, and effort involved in connection with completing the Merger, related disruptions, or potential disruptions to Republic's business and related administrative challenges associated with combining the companies;

• the additional expenses and obligations to which Republic's business will be subject following the Merger as a public company; and

• various other risks associated with the combined organization and the Merger, including the risks described in the section entitled "Risk Factors" in this proxy statement/prospectus.

The foregoing information is not intended to be exhaustive, but is believed to include a summary of all of the material factors considered by Republic's board of directors in its consideration of the Merger Agreement and the transactions contemplated thereby. In view of the variety of factors considered in connection with its evaluation of the transaction, Republic's board of directors did not find it practicable to and did not quantify or otherwise assign relative weights to the specific factors considered in reaching its determination. In addition, individual directors may have given different weights to different factors. Republic's board of directors did not undertake to make any specific determination as to whether any factor, or any particular aspect of any factor, supported, or did not support, its ultimate determination. Republic's board of directors based its determination on the totality of the information presented. After conducting an overall analysis of these and other factors, including thorough discussions with, and questioning of, Republic's senior management and legal counsel, Republic's board of directors concluded that the benefits, advantages, and opportunities of a potential transaction outweighed the uncertainties and risks described above. Based on this overall analysis of the factors described above, Republic's board of directors unanimously approved the Merger Agreement, the Merger, and the other transactions contemplated by the Merger Agreement.

#### Mesa Management Unaudited Prospective Financial Information
Mesa does not as a matter of course publicly disclose long term projections as to future performance, operating income or other financial results. However, Mesa's management prepared projections through the year ending September 30, 2029 (the "Projections") that were utilized in connection with the Merger. The Projections are included in this proxy statement/prospectus only because (1) portions of the Projections through the year ending September 30, 2029 were made available to Republic in connection with Republic's due diligence review of Mesa; (2) the Projections were made available to the Mesa board of directors in connection with its consideration of the Merger; and (3) the Projections were also made available to FTICA, Mesa's financial advisors, as more fully described below under the section titled "*The Merger — Opinion of Mesa's Financial Advisor*" beginning on page 116. The Projections are not included in this proxy statement/prospectus to influence any stockholder to make any investment decision with respect to the Merger.

The Projections are forward-looking statements. Important factors that may affect actual results and cause the Projections not to be achieved include, but are not limited to, the risks, and uncertainties described below and those described in the sections titled "*Cautionary Note Regarding Forward-Looking Statements*" beginning on page 95 and "*Risk Factors*" beginning on page 47. Although the Projections are presented with numerical specificity, they reflect numerous estimates and assumptions made by Mesa with respect to industry performance, general business, economic, regulatory, market, and financial conditions and other future events, as well as matters specific to Mesa's business, all of which are difficult or impossible to predict accurately and many of which are beyond Mesa's control. The Projections reflect assumptions as to certain potential business decisions that are subject to change. The Projections cover a number of years and such information by its nature becomes

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less reliable with each successive year. The Projections were prepared on a standalone basis without giving effect to the Merger. Furthermore, the Projections do not take into account the effect of any failure of the Merger to be completed and should not be viewed as accurate or continuing in that context.

In preparing the Projections, Mesa's management assumed that its CPA with United Airlines covering 60 E175 aircraft maturing between late fiscal year 2025 through fiscal year 2029 would be continuously renewed at current contractual rates. Mesa's E175 operations and resulting financial results reflect steady-state block hour, flight hour and departure output from fiscal year 2026 to fiscal year 2029 following Mesa completing its transition out of CRJ900 flying for United Airlines in the first quarter of fiscal 2025. Further, the forecast does not assume any additional growth in Mesa's fleet. Mesa also assumed it successfully completed the sale of surplus CRJ airframe, spare engine and spare parts assets throughout fiscal year 2027 and utilized such proceeds to repay debt.

In the view of Mesa's management, the information in the Projections was prepared on a reasonable basis and reflected the best estimates and judgments available to Mesa's management at the time. However, this information is not fact and should not be relied upon as being necessarily indicative of future results. As such, the Projections constitute forward-looking information and are subject to many risks and uncertainties that could cause actual results to differ materially from the results forecasted in the Projections, including, but not limited to, the risk that the proposed transaction may not be completed in a timely basis or at all, that Mesa may be adversely affected by other economic, business, and/or competitive factors, and risks related to Mesa's financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, including those described under in the section titled "*Risk Factors*" in Mesa's annual report for the year ended September 30, 2024. Moreover, Mesa operates in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for Mesa's management to predict all risks, nor can Mesa assess the effect of all factors on Mesa's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements Mesa may make. There can be no assurance that the Projections will be realized or that actual results will not be significantly higher or lower than forecast. In addition, the Projections will be affected by Mesa's ability to achieve strategic goals, objectives, and targets over the applicable periods. The Projections cannot, therefore, be considered a guarantee of future operating results, and this information should not be relied on as such.

The Projections were not prepared with a view toward public disclosure. The inclusion of the Projections should not be regarded as an indication that Mesa, FTICA, any of their respective affiliates, officers, directors, advisors, or other representatives or anyone who received this information then considered, or now considers, them a reliable prediction of future events, and this information should not be relied upon as such. The inclusion of the Projections herein should not be deemed an admission or representation by Mesa that it views such Projections as material information. The inclusion of the Projections in this proxy statement/prospectus should not be regarded as an indication that the Projections will necessarily be predictive of actual future events given the inherent risks and uncertainties associated with such long-range forecasts. No representation is made by Mesa or any other person regarding the Projections or Mesa's ultimate performance compared to such information. The Projections should be evaluated, if at all, in conjunction with the historical financial statements and other information about Mesa contained in its public filings with the SEC. For additional information, see the section titled "*Where You Can Find More Information*" beginning on page 383. **In light of the foregoing factors, and the uncertainties inherent in the Projections, stockholders are cautioned not to place undue, if any, reliance on the Projections.**

The Projections included in this document have been prepared by, and are solely the responsibility of, Mesa's management. Neither Mesa's current independent auditor, CBIZ CPAs P.C., nor any other independent accountant has compiled, examined, or performed any procedures with respect to the Projections, nor have they expressed any opinion or any other form of assurance on such information or its achievability, and assume no responsibility for, and disclaim any association with, the Projections. The reports of Marcum LLP, RSM US LLP,

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and Ernst & Young LLP incorporated by reference relate solely to Mesa's previously issued financial statements. They do not extend to the Projections and should not be read to do so.

Some of the Projections are "non-GAAP financial measures," which are financial performance measures that are not calculated in accordance with the published guidelines of the SEC regarding projections or accounting principles generally accepted in the United States ("GAAP"). These non-GAAP financial measures should not be viewed as a substitute for GAAP financial measures, and may be different from non-GAAP financial measures used by other companies. Furthermore, there are limitations inherent in non-GAAP financial measures, because they exclude charges and credits that are required to be included in a GAAP presentation. Accordingly, these non-GAAP financial measures should be considered together with, and not as an alternative to, financial measures prepared in accordance with GAAP. The financial measures included in the Projections are not subject to SEC rules regarding disclosures of non-GAAP financial measures, which would otherwise require a reconciliation of a non-GAAP financial measure to a GAAP financial measure. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP measure were not provided to or relied upon by the board of directors of Mesa or FTICA.

The following table presents a summary of the Projections (in thousands):

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **FY2025** | **FY2026** | **FY2027** | **FY2028** | **FY2029** |
|  **Revenue** | $334403 | $302630 | $303322 | $303207 | $303055 |
|  **EBITDA** | 9449 | 15739 | 14185 | 11500 | 8741 |
|  **Net Income** | (14196) | 4553 | 4673 | 3130 | 1057 |

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#### Republic Management Unaudited Prospective Financial Information
Republic does not, as a matter of course, publicly disclose long-term projections as to future performance, expected income, or other financial results. However, Republic management prepared non-public financial projections (the "Republic Projections") regarding the anticipated future operations of the Surviving Corporation during commercial discussions and negotiations which took place prior to arriving at the terms set forth in the Merger Agreement and the Three Party Agreement. Forecasted results prepared for this purpose were provided to Mesa and FTICA, collectively, on January 28, 2025 and February 5, 2025 for the purpose of evaluating the transaction. The Republic Projections reflect the projected results of the Surviving Corporation over each of the first three years following the Closing and giving effect to the associated integration activities expected to be undertaken immediately following the Closing.

The Republic Projections were prepared as though the Merger was consummated on January 1, 2025, although the Merger has not yet been consummated. Furthermore, the Republic Projections were formed using assumptions which were responsive to then-current economic factors, such as presumed demand for the Surviving Corporation's flying services, availability of flight crews, training capacity, routine, and contractual scheduling practices, and presumed flight completions, which were affected by weather or other conditions. Republic's management selected reasonable assumptions related to these factors; however, a range of reasonable outcomes is possible that could materially affect the Republic Projections as set forth below from changes in any or all of the aforementioned economic factors.

The Republic Projections were prepared prior to the imposition of widespread tariffs levied on goods and services originating outside of the United States and subsequently imported into the United States. Several significant inputs to the Surviving Corporation's supply chain, in whole or in part, including the aircraft which the Surviving Corporation is anticipated to operate, are manufactured and assembled outside of the United States using inputs sourced within the United States and abroad. Republic expects the Surviving Corporation to incur additional costs associated with tariffs imposed on aircraft and equipment associated with new aircraft deliveries, which would reduce cash, cash equivalents, and marketable securities by up to $30 million during the year ended December 31, 2025; up to $30 million during the year ending December 31, 2026; and up to $15 million during the year ending December 31, 2027.

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The Republic Projections are forward-looking statements. Important factors that may affect actual results and cause the Republic Projections not to be achieved include, but are not limited to, the risks and uncertainties described below and those described in the sections titled "*Cautionary Note Regarding Forward-Looking Statements*" beginning on page 95 and "*Risk Factors*" beginning on page 47. Although the Republic Projections are presented with numerical specificity, they reflect numerous estimates and assumptions made by Republic with respect to industry performance, general business, economic, regulatory, market, and financial conditions and other future events, as well as matters specific to the Surviving Corporation's business, all of which are difficult or impossible to predict accurately and many of which are beyond the Surviving Corporation's control. The Republic Projections reflect assumptions as to certain potential business decisions that are subject to change. The Republic Projections cover a number of years and such information by its nature becomes less reliable with each successive year.

In the view of Republic's management, the information in the Republic Projections was prepared on a reasonable basis and reflected the best estimates and judgments available to Republic's management at the time. However, this information is not fact and should not be relied upon as being necessarily indicative of future results. As such, the Republic Projections constitute forward-looking information and are subject to many risks and uncertainties that could cause actual results to differ materially from the results forecasted in the Republic Projections, including, but not limited to, the risk that the proposed transaction may not be completed in a timely basis or at all, that the Surviving Corporation may be adversely affected by other economic, business, and/or competitive factors, and risks related to the Surviving Corporation's financial condition, results of operations, business strategy, short-term, and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks, uncertainties, and assumptions. Moreover, the Surviving Corporation will operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for Republic's management to predict all risks, nor can Republic assess the effect of all factors on the Surviving Corporation's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. There can be no assurance that the Republic Projections will be realized or that actual results will not be significantly higher or lower than forecast. In addition, the Republic Projections will be affected by the Surviving Corporation's ability to achieve strategic goals, objectives, and targets over the applicable periods. The Republic Projections cannot, therefore, be considered a guarantee of future operating results, and this information should not be relied on as such.

The Republic Projections were not prepared with a view toward public disclosure. The inclusion of the Republic Projections should not be regarded as an indication that Republic, Mesa, the Surviving Corporation, FTICA, any of their respective affiliates, officers, directors, advisors, or other representatives or anyone who received this information then considered, or now considers, them a reliable prediction of future events, and this information should not be relied upon as such. The inclusion of the Republic Projections herein should not be deemed an admission or representation by Republic or any other person that it views the Republic Projections as material information. The inclusion of the Republic Projections in this proxy statement/prospectus should not be regarded as an indication that the Republic Projections will necessarily be predictive of actual future events given the inherent risks and uncertainties associated with such long-range forecasts. No representation is made by Republic or any other person regarding the Republic Projections or the Surviving Corporation's ultimate performance compared to such information.

Neither Mesa's independent auditors, CBIZ CPAs P.C., Republic's independent auditors, Deloitte & Touche LLP, nor any other independent accountants, have compiled, examined, or performed any procedures with respect to the prospective financial information contained herein, nor have they expressed any opinion or any other form of assurance on such information or its achievability, and assume no responsibility for, and disclaim any association with, the prospective financial information.

Some of the Republic Projections are "non-GAAP financial measures," which are financial performance measures that are not calculated in accordance with the published guidelines of the SEC regarding projections or

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GAAP. These non-GAAP financial measures should not be viewed as a substitute for GAAP financial measures and may be different from non-GAAP financial measures used by other companies. Furthermore, there are limitations inherent in non-GAAP financial measures because they exclude charges and credits that are required to be included in a GAAP presentation. Accordingly, these non-GAAP financial measures should be considered together with, and not as an alternative to, financial measures prepared in accordance with GAAP. The financial measures included in the Republic Projections are not subject to SEC rules regarding disclosures of non-GAAP financial measures, which would otherwise require a reconciliation of a non-GAAP financial measure to a GAAP financial measure. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP measure were not provided to or relied upon by Republic's board of directors, Mesa's board of directors, or FTICA.

The following is a summary of Republic Projections:

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| | | | |
|:---|:---|:---|:---|
| **(in millions)** | **Year Ending<br>December 31,**<br>**2025** | **Year Ending<br>December 31, 2026** | **Year Ending<br>December 31,**<br>**2027** |
|  Revenues | $1972 | $2293 | $2489 |
|  Adjusted EBITDA <sup>(1)</sup> | 310 | 439 | 541 |

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<sup>(1)</sup> Adjusted EBITDA is net income before interest expense, investment income (loss) and other, net, income taxes, and depreciation and amortization expense.

#### Opinion of Mesa's Financial Advisor
As stated above, after engaging FTICA pursuant to an engagement letter dated January 23, 2025 (the "Engagement Letter"), Mesa instructed FTICA to render an opinion to Mesa's board of directors as to the fairness to the Mesa Legacy Shareholders, from a financial point of view, of an exchange ratio of 636.00 in the Merger assuming that the Mesa Legacy Shareholders collectively will hold 6% or more of the common stock of Mesa on a fully diluted basis as a consequence of the Merger. On March 17, 2025, FTICA rendered to the Mesa board of directors its oral opinion, which was subsequently confirmed by delivery of a written opinion to the Mesa board of directors dated March 17, 2025, that, as of such date and based upon and subject to the various assumptions made, and the qualifications and limitations upon the review undertaken by FTICA in preparing its opinion (the "FTICA Opinion"), an exchange ratio of 636.00 in the Merger assuming that the Mesa Legacy Shareholders collectively will hold 6% or more of the common stock of Mesa on a fully diluted basis as a consequence of the Merger is fair, from a financial point of view, to the Mesa Legacy Shareholders.

Thereafter, pursuant to a letter dated July 9, 2025 (the "FTICA Letter"), FTICA confirmed to Mesa's board of directors that (provided there were no other changes or revisions to the Mesa Management Representation Letter to FTICA dated March 17, 2025) FTICA's conclusion presented as of March 17, 2025 in the FTICA Opinion would not change as a result of the Exchange Ratio being 584.90 (rather than 636.00) assuming that the Mesa Legacy Shareholders collectively will hold 6% or more of the common stock of Mesa on a fully diluted basis as a consequence of the Merger (and subject to the same provisions and terms set forth in the FTICA Opinion).

**The full text of the FTICA Opinion as well as the full text of the FTICA Letter are attached as Annex B to this proxy statement/prospectus and are incorporated by reference. Mesa encourages its stockholders to read the FTICA Opinion and the FTICA Letter in their entirety for the assumptions made, procedures followed, other matters considered and limits of the review by FTICA. The summary of the FTICA Opinion and the FTICA Letter set forth herein are qualified by reference to the full text of the FTICA Opinion and the FTICA Letter. FTICA provided the FTICA Opinion and the FTICA Letter for the sole benefit and use by Mesa's board of directors in its consideration of the Merger. The FTICA Opinion and the FTICA Letter are not a recommendation to Mesa's board of directors or to any stockholder as to how to vote with respect to the proposed Merger or to take any other action in connection with the Merger or otherwise.** 

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In arriving at its opinion FTICA reviewed and analyzed, among other things:

• The draft Merger Agreement;

• financial statements for the years ended September 30, 2019 through December 31, 2024, and other historical and forecasted financial information, business plans, and operating information with respect to Mesa, including certain financial forecasts relating to Mesa, covering the period from October 1, 2024 through September 30, 2029;

• financial statements for the years ended December 31, 2020 through December 31, 2025, and other historical and forecasted financial information, business plans and operating information with respect to Republic, including certain financial forecasts relating to Republic, covering the period from January 1, 2025 through December 31, 2027;

• certain financial forecasts relating to Surviving Corporation covering the period from January 1, 2025 through December 31, 2027;

• the pro forma capitalization table of Surviving Corporation effective as of the date immediately following the closing of the Merger Proposal;

• the past and current business, operations, financial condition, and prospects of Mesa, Republic, and Surviving Corporation with Mesa management and Republic management;

• comparison of certain financial information of Mesa, Republic, and Surviving Corporation with similar information of other companies it deemed relevant; and

• historical stock price information of Mesa.

FTICA also had discussions with Mesa management and Republic management concerning the businesses, operations, assets, liabilities, financial condition, and prospects and undertook such other studies, financial analyses, and investigations as it deemed appropriate.

In conducting FTICA's review and arriving at the FTICA Opinion, with Mesa's consent, FTICA has assumed and relied upon the accuracy and completeness of all financial and other information provided to or discussed with FTICA by Mesa and Republic, respectively (or their respective employees, representatives, or affiliates), or which is publicly available or was otherwise reviewed by FTICA. FTICA has not undertaken any responsibility for the accuracy, completeness, or reasonableness of, or independent verification of, such information. Furthermore, FTICA assumed, with Mesa's consent, that the exchange ratio would be 636 shares of Mesa common stock for each share of Republic common stock. FTICA has, with Mesa's consent, relied upon the assumption that all information provided to FTICA by Mesa and Republic is accurate and complete in all material respects.

FTICA expressly disclaimed any undertaking or obligation to advise any person of any change in any fact or matter affecting the FTICA Opinion of which FTICA has become aware after the date of the FTICA Opinion. FTICA assumed there were no material changes in the assets, liabilities, financial condition, results of operations, business, or prospects of Mesa or Republic since the date of the last financial statements made available to FTICA. FTICA has not obtained any independent evaluations, valuations, or appraisals of the assets or liabilities of Mesa or Republic, nor has FTICA been furnished with such materials. In addition, FTICA has not evaluated the solvency or fair value of Mesa or Republic under any state or federal laws relating to bankruptcy, insolvency, or similar matters. The FTICA Opinion does not address any legal, tax, or accounting matters related to the Merger, as to which FTICA has assumed that Mesa and Mesa's board of directors have received such advice from legal, regulatory, tax, and accounting advisors as each has determined appropriate. The FTICA Opinion addresses only the fairness of the Exchange Ratio from a financial point of view to the holders of common stock of Mesa. FTICA expresses no view as to any other aspect or implication of the Merger or any other agreement or arrangement entered into in connection with the Merger. The FTICA Opinion is necessarily based upon economic and market conditions and other circumstances as they existed and could be evaluated by FTICA on the date of

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the FTICA Opinion. It should be understood that although subsequent developments may affect the FTICA Opinion, FTICA does not have any obligation to update, revise or reaffirm the FTICA Opinion and FTICA expressly disclaims any responsibility to do so.

FTICA did not consider any potential legislative or regulatory changes currently being considered or recently enacted by the United States or any foreign government, or any domestic or foreign regulatory body, or any changes in accounting methods or generally accepted accounting principles that may be adopted by the U.S. Securities and Exchange Commission, the Financial Accounting Standards Board, or any similar foreign regulatory body or board.

For purposes of rendering the FTICA Opinion, FTICA assumed, among other things, in all respects material to FTICA's analysis, that the representations and warranties of each party contained in the Merger Agreement were true and correct, that each party will perform all of the covenants and agreements required to be performed by it under the Merger Agreement and that all conditions to the consummation of the Merger will be satisfied without waiver or amendment of any term or condition thereof. FTICA has assumed that the final form of the Merger Agreement will be substantially similar to the last draft reviewed by FTICA. FTICA has also assumed that all governmental, regulatory, and other consents and approvals contemplated by the Merger Agreement or otherwise required for the transactions contemplated thereby will be obtained and that in the course of obtaining any of those consents no restrictions will be imposed or waivers made that would have an adverse effect on Mesa, Republic, or the contemplated benefits of the Merger. FTICA has assumed that the Merger will be consummated in a manner that complies with the applicable provisions of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and all other applicable federal and state statutes, rules, and regulations.

It is understood that the FTICA Opinion is intended for the benefit and use of Mesa's board of directors in its consideration of the financial terms of the Merger and, except as set forth in the Engagement Letter, may not be used for any other purpose or reproduced, disseminated, quoted, or referred to at any time, in any manner or for any purpose without FTICA's prior written consent, unless pursuant to applicable law or regulations or required by other regulatory authority by the order or ruling of a court or administrative body, except that the FTICA Opinion may be included in its entirety in any filing related to the Merger to be filed with the U.S. Securities and Exchange Commission and this proxy statement/prospectus to be mailed to the Mesa stockholders. The FTICA Opinion does not constitute a recommendation to Mesa's board of directors of whether or not to approve the Merger or to any Mesa stockholder or any other person as to how to vote with respect to the Merger or to take any other action in connection with the Merger or otherwise. The FTICA Opinion does not address Mesa's underlying business decision to proceed with the Merger or the relative merits of the Merger compared to other alternatives available to Mesa. FTICA expressed no opinion as to the prices or ranges of prices at which shares or the securities of any person, including Mesa, will trade at any time, including following the announcement or consummation of the Merger. FTICA has not been requested to opine as to, and the FTICA Opinion does not in any manner address, the amount or nature of compensation to any of the officers, directors, or employees of any party to the Merger, or any class of such persons, relative to the compensation to be paid to the Mesa stockholders in connection with the Merger or with respect to the fairness of any such compensation.

#### Principal Financial Analyses
The following is a summary of the principal financial analyses performed by FTICA to arrive at the FTICA Opinion. Some of the summaries of financial analyses include information presented in tabular format. In order to fully understand the financial analyses, the tables must be read together with the text of each summary. The tables alone do not constitute a complete description of the financial analyses. Considering the data set forth in the tables without considering the full narrative description of the financial analyses, including the methodologies and assumptions underlying the analyses, could create a misleading or incomplete view of the financial analyses. FTICA performed certain procedures, including each of the financial analyses described below and reviewed with Mesa's board of directors the assumptions on which such analyses were based and other factors, including the historical and projected financial results of Mesa and Republic.

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#### Discounted Cash Flow Analysis
In order to estimate the present value of Mesa, Republic, and Surviving Corporation, FTICA performed a discounted cash flow analysis of each of the three entities. A discounted cash flow analysis is a traditional valuation methodology used to derive a valuation of an asset or security by calculating the net present value of estimated future cash flows of the asset or security. Net present value refers to the discounted value of future cash flows available to investors and is obtained by discounting those future cash flows by an appropriate risk adjusted discount rate that takes into account systematic and unsystematic risk factors, the opportunity cost of capital, expected returns, and the timing of cash flows.

The discounted cash flow methodology requires the following steps: (i) the determination of cash flow forecasts, the representative level projections, and (ii) the selection of a range of comparative investment risk adjusted discount rates to apply against the representative level projections. Using the representative level projections, the unlevered free cash flows were calculated by taking earnings before interest, tax expense, depreciation, and amortization, EBITDA, and subtracting capital expenditures, taxes, and working capital requirements for each year of the projection period. Following the discrete forecast period, the residual value of the company, or "terminal value," was estimated by applying the Gordon Growth Model using a terminal growth rate. The Gordon Growth Model is used to estimate the present value of cash flows into perpetuity based on terminal cash flows, long term expected growth, and the weighted average cost of capital. In applying this method to each entity (Mesa, Republic, and Surviving Corporation) factors specific to each entity were considered when estimating the discount rate and long term growth rate to be applied. The selected discount rates and long term growth rates applied were as follows:

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| | | |
|:---|:---|:---|
| **Entity** | **Discount Rate Range** | **Long Term Growth** |
|  Mesa | 18.0% – 20.0% | 0.0% |
|  Republic | 11.5% - 13.5% | 2.0% |
|  Surviving Corporation | 11.5% - 13.5% | 2.0% |

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The cash flows and terminal values were then discounted to present value using the rates above to derive a range of enterprise values using the discount cash flow approach.

#### Guideline Public Company Analysis
In order to assess how the public market is valuing investments similar to the entities involved in the merger, FTICA analyzed certain financial ratios of companies deemed similar to Republic and Surviving Corporation, the Guideline Public Company Method. This approach, known as a market approach, incorporates comparative measures of risk and growth that are applied against representative levels of cash flow. The market approach reflects what investors believe to be fair and reasonable rates of return for particular investments, given the comparative risk/return profile of each company relative to another. Using the financial ratios observed among a portfolio of comparable companies such as enterprise-value-to-EBITDAR, or EV/EBITDAR, the valuation professional can derive an implied enterprise value for the subject company. FTICA reviewed and compared specific financial and operating data as of the date of value relating to each entity with selected companies that FTICA, based on its research and experience, and considering similarity in company operations, size, industry, asset quality, and geographic exposure, deemed comparable to the entity. The selected guideline public companies were:

Republic & Surviving Corporation Guideline Public Companies:

• SkyWest, Inc.

• Chorus Aviation Inc.

• United Airlines Holdings, Inc.

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• America Airlines Group Inc.

• Delta Air Lines, Inc.

• Alaska Air Group, Inc.

• Southwest Airlines Co.

• Frontier Group Holdings, Inc.

• Allegiant Travel Company

• Sun Country Airlines Holdings, Inc.

In applying this method to each entity (Republic and Surviving Corporation) factors specific to each entity were considered when selecting the range of multiples to be applied. The selected market multiples applied were as follows:

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| | | |
|:---|:---|:---|
| **Entity** | **Financial Ratio** | **Range of Multiples** |
|  Republic | EV/EBITDAR – Last 12 Months | 6.5x – 7.5x |
|  | EV/EBITDAR – Next Calendar Year | 6.0x – 7.0x |
|  | Price/Earnings – Next Calendar Year | 12.5x – 13.5x |
|  Surviving Corporation | EV/EBITDAR – Next Calendar Year | 6.0x – 7.0x |
|  | Price/Earnings – Next Calendar Year | 12.5x – 13.5x |

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#### Guideline Transaction Analysis
FTICA reviewed the purchase prices and financial multiples paid in selected other transactions that FTICA, based on its research and experience, deemed to be similar to the subject entity based on a review of target company's operations, size, industry, asset quality, and geographic exposure. The selected guideline transactions were:

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| | | |
|:---|:---|:---|
| **Close Date** | **Buyer** | **Target** |
|  April 14, 2025 | Stonepeak Partners | Air Transport Services Group |
|  September 17, 2024 | Alaska Air | Hawaiian Airlines |
|  March 17, 2023 | Apollo Global Management | Atlas Air Worldwide Holdings |
|  January 27, 2022 | Tata Sons Private Limited | Air India Limited |
|  December 11, 2019 | Onex Corporation | WestJet Airlines |

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In applying this method to each entity (Republic and Surviving Corporation) factors specific to each entity were considered when selecting the range of multiples to be applied. The selected market multiples applied were as follows:

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| | | |
|:---|:---|:---|
| **Entity** | **Financial Ratio** | **Range of Multiples** |
|  Republic | EV/EBITDA – Last 12 Months | 6.5x – 7.5x |
|  | EV/EBITDA – Next Calendar Year | 6.0x – 7.0x |
|  Surviving Corporation | EV/EBITDA – Next Calendar Year | 6.0x – 7.0x |

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#### General
FTICA, its subsidiaries and its affiliates, engage in a wide range of businesses from investment banking, asset management, and other financial and nonfinancial advisory services. In the ordinary course of its business, it and its affiliates may actively advise its customers with respect to trades or other transactions in equity, debt, and/or other securities (and any derivatives thereof) and financial instruments (including loans and other

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obligations) of Mesa and Republic and certain of its affiliates for the accounts of its customers. FTICA is acting as a financial advisor to Mesa in connection with the proposed transaction. Mesa paid FTICA a fee in the amount of $250,000 for its services in connection with the rendering of its fairness opinion. The obligation of Mesa to pay such fee was not dependent on the conclusions reached by FTICA. Mesa has agreed to reimburse FTICA's expenses and indemnify it for certain liabilities that may arise out of its engagement. FTICA is a wholly owned subsidiary of FTI Consulting, Inc. ("FTI"). During the past two years, FTICA has provided general investment banking services to Mesa, including services pertaining to the Merger. FTI has received fees from Mesa for its investment banking services of $5,250,000 over such two year period, including fees of $1,300,000 for services rendered in relationship to the Merger. FTI will receive a further fee of $650,000 to $1,150,000 contingent upon the closing of the Merger. Neither FTI nor FTICA has provided any services to Republic in the last two years, including in connection with the Merger or the transactions contemplated by the Merger Agreement.

#### Interests of Mesa Directors and Executive Officers in the Merger
In considering the recommendation of the Mesa board of directors with respect to approving the Merger, stockholders should be aware that Mesa's directors and executive officers have interests in the Merger that are different from, or in addition to, the interests of Mesa stockholders generally. These interests may present them with actual or perceived conflicts of interest, and these interests, to the extent material, are described below.

The Mesa board of directors was aware of these potential conflicts of interest and considered them, among other matters, in reaching its decision to approve the Merger Agreement and the Merger, and to recommend that the Mesa stockholders approve the Merger as contemplated by this proxy statement/prospectus.

#### Treatment of Mesa RSUs and Restricted Stock Awards
Under the Merger Agreement, each outstanding RSU award and restricted stock award in respect of shares of Mesa common stock, whether vested or unvested, will accelerate in full effective as of immediately prior to the Effective Time and shall be cancelled and converted into the right to receive a number of shares of Mesa common stock subject to such award immediately prior to the Effective Time. The number of awards held by Mesa's directors and executive officers are as follows:

Jonathan G. Ornstein – 387,754

Michael J. Lotz – 303,784

Brian S. Gillman – 102,998

Ellen N. Artist – 22,231

Mitchel I. Gordon – 22,231

Dana J. Lockhart – 22,231

Harvey W. Schiller – 22,231

Spyridon P. Skiados – 22,231

#### Executive Separation and Consulting Arrangements
In connection with entering into the Merger Agreement, each of Jonathan G. Ornstein, Mesa's Chairman and Chief Executive Officer, Michael J. Lotz, Mesa's President and Chief Financial Officer, and Brian S. Gillman, Mesa's Executive Vice President, General Counsel and Secretary (together, the "Executives"), entered into a

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Separation and Consulting Agreement with Mesa. The Form of Separation and Consulting Agreement, which is representative of the Separation and Consulting Agreements entered into with the Executives, is filed as Exhibit 10.38 to the registration statement of which the registration statement of which this proxy statement/prospectus forms a part.

Pursuant to the terms of each respective Separation and Consulting Agreement, the employment of Messrs. Ornstein, Lotz, and Gillman will terminate on the date that is the later of the Closing Date or October 1, 2025, unless extended by Republic (the "Termination Date"). To the extent the Termination Date is later than the Closing Date, during the period commencing on the Closing Date and ending on the Termination Date (the "Transitional Employment Period"), each Executive will serve as an advisor to the Surviving Corporation's President and will receive a current base salary at the same rate as immediately prior to the Closing Date and continue to participate in all employee benefit plans on the same basis as such plans were made available to the Executive immediately prior to the Closing Date. The executives will not be eligible to receive any other incentive or other compensation or benefits during the Transitional Employment Period.

Following the Termination Date, Mesa will retain the Executives as consultants to perform certain transitional services commencing on the Termination Date and ending on the second anniversary of the Termination Date (the "Consulting Period").

In exchange for their performance of the consulting services, during the Consulting Period, the Surviving Corporation shall pay to each Executive monthly consulting fees in accordance with the Surviving Corporation's standard payment procedures for consultants and independent contractors (the "Consulting Fees") and, subject to such Executive's continued compliance with the restrictive covenants described below for the duration of the Consulting Period, a lump sum (the "Consulting Lump Sum Payment"), payable within 10 days following the end of the Consulting Period.

The Separation and Consulting Agreement provides for certain restrictive covenants including (i) the preservation and non-disclosure of confidential information; (ii) certain non-disparagement obligations; and (iii) non-solicitation and non-competition obligations during the Transitional Employment Period and the Consulting Period.

Further, under the Separation and Consulting Agreement, the Executives will, in consideration for executing and delivering a general release of claims (the "Release Agreement"), receive a severance payment (the "Severance Payment"), in addition to certain accrued but unpaid benefits, which Severance Payment shall be payable within 10 days after the date the Release Agreement becomes effective by its terms. Following the Termination Date, the Executives will cooperate as reasonably required by Mesa in the defense or prosecution of any claims, charges, complaints, or lawsuits that have been or may be filed by or against Mesa and will be compensated at an hourly rate (the "Continuing Cooperation Rate") for such cooperation that extends beyond the Consulting Period.

The amounts payable to each Executive under their respective Separation and Consulting Agreement are as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Executive** | **Consulting Fees** | **Consulting Lump<br>Sum Payment** | **Severance<br>Payment** | **Continuing<br>Cooperation Rate** |
|  Jonathan G. Ornstein | $90,000/month | $1560000 | $3700000 | $750/hour |
|  Michael J. Lotz | $85,000/month | $1060000 | $3038000 | $500/hour |
|  Brian S. Gillman | $35,000/month | $518000 | $1240000 | $300/hour |

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The effectiveness of each Separation and Consulting Agreement is conditioned upon the consummation of the Merger. If the Closing does not occur, or if the Merger Agreement is terminated in accordance with its terms prior to the Closing Date, the Separation and Consulting Agreements shall be null and void and Mesa's employment of the Executives will not terminate.

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The foregoing description of the terms of the Separation and Consulting Agreement is not complete and is subject to and qualified in its entirety by reference to the full text of such agreement, including the form of the Release Agreement attached thereto as Exhibit A.

#### Advisory Compensation
This section sets forth the information required by Item 402(t) of Regulation S-K regarding the compensation for each named executive officer of Mesa that is based on or otherwise relates to the Merger. This compensation is referred to as "golden parachute" compensation by the applicable SEC disclosure rules and in this section such term is used to describe the Merger-related compensation to which Mesa named executive officers may become entitled by reason of the Merger. The "golden parachute" compensation payable to these individuals is subject to a non-binding, advisory vote of Mesa's shareholders, as described elsewhere in this proxy statement/prospectus. The plans or arrangements pursuant to which such "golden parachute" compensation would be payable (other than the Merger Agreement), consist of the separation and consulting agreements entered into between each of the named executive officers and Mesa and the respective equity awards specifying the terms and conditions of each such award.

Each named executive officer has entered into a Separation and Consulting Agreement with Mesa, pursuant to which each named executive officer will terminate employment with Mesa effective as of the later of the Closing, October 1, 2025, such later date that Republic may determine (but no later than 180 days following the Closing) or an earlier date determined by Mesa and Republic. Each Separation and Consulting Agreement provides that the named executive officer will continue to provide certain consulting services to Mesa for two years following the employment termination date in exchange for a monthly consulting fee and a lump sum payment at the end of the consulting period. Pursuant to the Separation and Consulting Agreements each named executive officer will be subject to confidential information, nonsolicitation, noncompetition, and nondisparagement restrictive covenants. The Separation and Consulting Agreements replace and supersede the employment agreements in place between each named executive officer and Mesa, effective as of the Closing Date.

The amount of payments and benefits that each named executive officer would receive (on a pre-tax basis), as set forth in the tables below, is based on the following assumptions:

• the Closing Date is      , which is the latest practicable date prior to this filing and used for purposes of this golden parachute compensation disclosure;

• each named executive officer terminates employment and continues as a consultant during the specified period in the Separation and Consulting Agreements;

• each named executive officer's outstanding equity awards remain unchanged from those in effect as of the date of this proxy statement/prospectus; and

• the relevant price per share of Mesa common stock is $1.07, which is the average closing price per share of Mesa common stock as reported on Nasdaq over the first five business days following the first public announcement of the Merger on April 7, 2025.

As a result of these assumptions, which may or may not actually occur or be accurate on the relevant date, the actual amounts, if any, to be received by Mesa's executive officers may materially differ from the amounts set forth in this section.

Mesa's named executive officers will not receive any enhanced pension or non-qualified deferred compensation in connection with the Merger and therefore such column is omitted from the table below.

For purposes of this golden parachute disclosure, "single trigger" refers to payments and benefits that arise solely as a result of the consummation of the Merger and "double trigger" refers to payments and benefits that require two conditions, which are the consummation of the Merger and termination of employment.

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The table titled "All Golden Parachute Compensation" includes both arrangements and amounts previously disclosed and subject to a stockholder advisory vote under section 14A(a)(1) of the Exchange Act, as well as new arrangements and understandings related thereto. The table titled "New Golden Parachute Compensation" includes only new arrangements and understandings not previously subject to a stockholder advisory vote.

These payments and benefits are the subject of a non-binding advisory vote of Mesa shareholders, as described under "*Proposal No. 3: The Advisory Compensation Proposal*."

*All Golden Parachute Compensation* 

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **Cash ($) <sup>(1)</sup>** | **Other <sup>(2)</sup>** | **Total ($)** |
|  Jonathan G. Ornstein |  |  |  |
|  Chairman & Chief Executive Officer | 3700000 | 1560000 | 5260000 |
|  Michael J. Lotz |  |  |  |
|  President & Chief Financial Officer | 3038000 | 1060000 | 4098000 |
|  Brian S. Gillman |  |  |  |
|  EVP, General Counsel & Secretary | 1240000 | 518000 | 1758000 |

---

<sup>(1)</sup> Cash payment consists of lump sum cash severance amounts payable to each named executive officer in accordance with the Separation and Consulting Agreements. 

<sup>(2)</sup> Amount consists of cash payments payable to each named executive officer within 10 days following the end of the consulting period under the Separation and Consulting Agreement in consideration for the agreement to the restrictive covenant set forth therein. 

All such cash payments are "double trigger" benefits and would be paid only upon the qualifying termination of the named executive officer's employment and service in connection with completion of the Merger.

The estimated amount of each such payment is shown in the following table: <br>

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name** | **Severance<br>Payment ($)** | **Incentive<br>Bonus ($)** | **Consulting Lump<br>Sum Payment ($)** | **Total ($)** |
|  Jonathan G. Ornstein | 3700000 | – | 1560000 | 5260000 |
|  Michael J. Lotz | 3038000 | – | 1060000 | 4098000 |
|  Brian S. Gillman | 1240000 | – | 518000 | 1758000 |

---

*New Golden Parachute Compensation* 

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **Cash ($)(1)** | **Aggregate<br>Consulting<br>Fees(2)** | **Total ($)** |
|  Jonathan G. Ornstein<br> Chairman & Chief Executive Officer | 5260000 | 2160000 | 7420000 |
|  Michael J. Lotz<br> President & Chief Financial Officer | 4098000 | 2040000 | 6138000 |
|  Brian S. Gillman<br> EVP, General Counsel & Secretary | 1758000 | 840000 | 2598000 |

---

<sup>(1)</sup> Cash payment consists of amounts payable to each named executive officer in accordance with the Separation and Consulting Agreements, including (i) a lump sum cash severance payment paid within 10 days after the date the Separation and Consulting Agreement becomes effective, and (ii) a lump sum cash payment paid within 10 days after the end of the consulting period described above. 

All such cash payments are "double trigger" benefits and would be paid only upon the qualifying termination of the named executive officer's employment and service in connection with completion of the Merger.

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The estimated amount of each such payment is shown in the following table: <br>

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name** | **Severance<br>Payment ($)** | **Incentive<br>Bonus ($)** | **Consulting Lump<br>Sum Payment ($)** | **Total ($)** |
|  Jonathan G. Ornstein | 3700000 | – | 1560000 | 5260000 |
|  Michael J. Lotz | 3038000 | – | 1060000 | 4098000 |
|  Brian S. Gillman | 1240000 | – | 518000 | 1758000 |

---

<sup>(2)</sup> Amount represents the total monthly consulting payments over the two-year term of the applicable Separation and Consulting Agreements. 

#### Limitations of Liability and Indemnification
In addition to the indemnification obligations required by the Mesa Charter and the second amended and restated bylaws, as amended, of Mesa, which provide for indemnification of Mesa's directors, officers, employees, and other agents to the maximum extent permitted by Nevada law, Mesa has entered into indemnification agreements with each of its directors and officers. These agreements contain provisions with respect to the indemnification of Mesa's directors and executive officers and, at times, their affiliates, which are in some respects broader than the specific indemnification provisions contained in Nevada law. The indemnification agreements may require Mesa, among other things, to indemnify its directors and officers against certain liabilities that may arise by reason of their status or service as directors and officers and to advance their expenses incurred as a result of any proceeding against them as to which they could be indemnified. Mesa believes that these articles of incorporation and bylaws provisions and indemnification agreements are necessary to attract and retain qualified persons as directors and officers.

#### Interests of Republic Directors and Executive Officers in the Merger
In considering the recommendation of the Republic board of directors with respect to its approval of the Merger Agreement, the Merger and the other transactions contemplated thereby, stockholders should be aware that Republic's directors and executive officers may have interests in the Merger that are deemed different from, or in addition to, those of Republic's stockholder's generally. These interests may present them with actual or potential conflicts of interest, and these interests, to the extent they may be deemed material, are described below.

Republic's board was aware of these interests and considered them, among other matters, in reaching the decision to approve the Merger Agreement and the Merger, and to recommend that the Republic stockholders approve the Merger.

*Management Following the Merger* 

As described in the section captioned "*Management Following the Merger*" beginning on page 329 of this proxy statement/prospectus, certain of Republic's directors and officers are expected to become the directors and officers of the Surviving Corporation upon the Closing of Merger.

*Republic RSUs* 

In connection with the Merger, (i) each outstanding Republic RSU that has vested (including each outstanding Republic RSU that will become vested upon, or immediately before, the Closing of the Merger or immediately before) will be cancelled and converted into the right to receive shares of Republic common stock, which will be converted into fully vested Mesa common stock (at the Exchange Ratio) and (ii) each then outstanding Republic RSU that is unvested will be assumed by Mesa and converted into the right to receive a Surviving Corporation Restricted Stock Award in an amount equal to the number of whole shares of Mesa common stock (rounded up to the next whole share of Mesa common stock) equal to the product obtained by multiplying (x) the Exchange Ratio by (y) the total number of shares of Republic common stock subject to such

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unvested Republic RSU immediately prior to the Effective Time. Each Republic RSU assumed and converted into a Surviving Corporation Restricted Stock Award will continue to have and be subject to the same terms and conditions, including with respect to vesting, as applicable to the corresponding Republic RSU as of immediately prior to the Effective Time.

*2025 Republic Equity Awards* 

In 2025, Republic granted fully vested shares of Republic common stock pursuant to Republic's 2020 Omnibus Incentive Plan to Republic directors, subject to a holding requirement.

In 2025, Republic also granted Republic RSUs to certain members of Republic's management, which are subject to both time- and performance-based vesting conditions (the "Republic Integration RSUs"). The time-vesting Republic Integration RSUs vest in equal installments on the third and fourth anniversaries of the Closing Date, subject to continued employment. The performance-vesting Republic Integration RSUs vest, subject to continued employment, in one-third tranches upon achievement of specified operational milestones, including (i) approval of an aircraft bridging and harmonization program, (ii) approval of a pilot training transition program and (iii) relocation of Mesa's corporate functions to Carmel, Indiana. If the Closing does not occur or the Merger Agreement is terminated, all Republic Integration RSUs will be immediately forfeited for no consideration.

Republic also granted time-vesting Republic RSUs to Republic executive officers that vest in three equal installments on each of December 31, 2025, 2026, and 2027, subject to continued employment.

At the Effective Time, each outstanding Republic RSU award described above will be assumed and converted into a Surviving Corporation Restricted Stock Award and will continue to have and be subject to the same terms and conditions, including with respect to vesting, as applicable to the corresponding Republic RSU as of immediately prior to the Effective Time. See the section titled "*The Merger Agreement – Republic RSUs*" beginning on page 142 of this proxy statement/prospectus for more information.

*Employment Agreement* 

Republic expects to enter into an employment agreement with David Grizzle, Chief Executive Officer and Chairman of the board of directors of Republic, prior to the Closing. The material terms of such employment agreement are not yet determined.

#### Form of the Merger
Upon the terms of and subject to the conditions set forth in the Merger Agreement, in connection with the Delaware Conversion and in accordance with the DGCL, at the Effective Time, Republic will merge with and into Mesa, the corporate existence of Republic will cease, and the Surviving Corporation will continue as the surviving corporation in the Merger.

#### Merger Consideration and Adjustment
At the Effective Time, upon the terms and subject to the conditions set forth in the Merger Agreement, each share of Republic common stock issued and outstanding immediately prior to the Effective Time (excluding shares to be cancelled pursuant to the Merger Agreement and excluding dissenting shares held by stockholders who have not voted in favor of, or consented to, the Merger and who have properly demanded appraisal of such shares in accordance with, and have complied in all respects with, Section 262 of the DGCL) will be automatically converted into the right to receive a number of validly issued, fully paid, and non-assessable shares of Mesa common stock equal to the Exchange Ratio (described in more detail in the section titled "*The Merger Agreement – Merger Consideration*" beginning on page 138 of this proxy statement/prospectus).

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Immediately prior to the Effective Time, each then outstanding Republic RSU that has vested in accordance with its terms (including each outstanding Republic RSU that will become vested upon the Closing) will be cancelled and converted into the right of the holder to receive a number of whole shares of Republic common stock (rounded up to the next whole share), which shares of Republic common stock will be converted into Mesa common stock in accordance with the Exchange Ratio.

Further, immediately prior to the Effective Time, each then outstanding Republic RSU that is unvested will be assumed by Mesa and converted into the right to receive a Surviving Corporation Restricted Stock Award in an amount equal to the number of whole shares of Mesa common stock (rounded up to the next whole share of Mesa common stock) equal to the product obtained by multiplying (x) the Exchange Ratio by (y) the total number of shares of Republic common stock subject to such unvested Republic RSU immediately prior to the Effective Time.

No fractional shares of Mesa common stock shall be issued in connection with the Merger, and no certificates for any such fractional shares shall be issued. Each holder of shares of Republic common stock converted pursuant to the Merger who would otherwise have been entitled to receive a fraction of a share of Mesa common stock will receive, in lieu thereof, cash (without interest, rounded down to the nearest cent) in an amount equal to such fractional part of a share of Mesa common stock multiplied by the average of the volume weighted average price per share of Mesa common stock on Nasdaq (as reported by Bloomberg L.P. or, if not reported therein, in another authoritative source mutually selected by Mesa and Republic) on each of the five consecutive trading days ending with the last complete trading day three days immediately prior to the Closing Date (such price per share, the "Mesa Stock Value").

#### Procedures for Exchanging Republic Stock Certificates
Prior to the Effective Time, Mesa and Republic will jointly appoint an exchange agent for the payment of the Merger Consideration as provided in the Merger Agreement. At or immediately prior to the Effective Time, Mesa will deposit or cause to be deposited with the exchange agent (i) book-entry shares of Mesa common stock equal to the aggregate Merger Consideration and (ii) an amount in cash sufficient to pay the aggregate cash in lieu of fractional shares, in each case to be paid by the exchange agent pursuant to the Merger Agreement.

No later than three (3) business day prior to the anticipated Closing Date, Mesa shall (or shall cause the exchange agent to) deliver to each holder of Republic common stock that is or will be at the Effective Time entitled to Merger Consideration a letter of transmittal and instructions (in form and substance reasonable satisfactory to Republic) (the "Letter of transmittal"). As soon as reasonably practicable after the Effective Time and in any event no later than two (2) business days after the later of (x) the Effective Time and (y) receipt by the exchange agent from a holder of a duly completed and validly executed (in each case as reasonably determined by Mesa) Letter of Transmittal and such other customer documents as may reasonably be required by Mesa or the exchange agent, the record holder of such stock certificates or book-entry shares, as applicable, will be entitled to receive in exchange therefor (i) book-entry shares of Mesa common stock equal to the aggregate Merger Consideration that such holder has the right to receive pursuant to the Merger Agreement and (ii) cash in the amount equal to the aggregate cash in lieu of any fractional shares that such holder has the right to receive pursuant to the Merger Agreement, in each case, without interest and subject to any applicable tax withholding.

HOLDERS OF REPUBLIC COMMON STOCK SHOULD NOT SEND IN THEIR REPUBLIC STOCK CERTIFICATES UNTIL THEY RECEIVE A LETTER OF TRANSMITTAL FROM THE EXCHANGE AGENT WITH INSTRUCTIONS FOR THE SURRENDER OF REPUBLIC STOCK CERTIFICATES.

#### Effective Time of the Merger
The Merger Agreement provides that, subject to the conditions of the Merger Agreement, on the Closing Date, and in all events following the Conversion Effective Time, the parties will cause the Merger to be consummated by filing or causing to be filed a certificate of Merger (the "Certificate of Merger"), with the

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Secretary of State of the State of Delaware. The Merger will become effective at such time as specified in the Certificate of Merger, which will be after the Conversion Effective Time. Neither Mesa nor Republic can predict the exact timing of the consummation of the Merger.

#### HSR Act
Under the HSR Act and the rules and regulations promulgated thereunder, the Merger may not be completed until Mesa and Republic each files a Notification and Report Form with the Federal Trade Commission (the "FTC") and the Antitrust Division of the U.S. Department of Justice (the "DOJ"), and the applicable waiting period has expired or been terminated. A transaction notifiable under the HSR Act may not be completed until the expiration of a 30-calendar-day waiting period following the parties' filings of their respective HSR Act Notification and Report forms or the early termination of that waiting period. If the FTC or the DOJ issues a request for additional information and documents (a "Second Request") prior to the expiration of the initial waiting period, the parties must observe a second 30-day waiting period, which would begin to run only after both parties have substantially complied with the Second Request, unless the waiting period is terminated earlier or the parties otherwise agree to extend the waiting period.

Mesa and Republic each filed a HSR Notification Form with respect to the transaction with the FTC and DOJ on May 16, 2025. The waiting period under the HSR Act with respect to the filings made by Mesa and by Republic expired on June 16, 2025.

At any time before or after consummation of the transactions, notwithstanding the termination or expiration of the waiting period under the HSR Act, the FTC or the DOJ could take such action under the antitrust laws as it deems necessary under the applicable statutes, including seeking to enjoin the completion of the Merger, seeking divestiture of substantial assets of the parties, or requiring the parties to license, or hold separate, assets, or to terminate existing relationships and contractual rights. At any time before or after the completion of the transactions, and notwithstanding the termination or expiration of the waiting period under the HSR Act, any state could take such action under the antitrust laws as it deems necessary. Such action could include seeking to enjoin the completion of the Merger or seeking divestiture of substantial assets of the parties, or requiring the parties to license, or hold separate, assets, or to terminate existing relationships and contractual rights. Private parties may also seek to take legal action under the antitrust laws under certain circumstances.

There can be no assurance that a challenge to the transactions on antitrust grounds will not be made, or if such a challenge is made, what the result will be. See *"The Merger Agreement – Covenants and Agreements – Regulatory Approvals"* for certain conditions to the Merger, including conditions with respect to the HSR Act.

#### Other Regulatory Approvals
In addition to the antitrust related filings and clearance discussed above, Mesa and Republic must obtain all other consents or approvals by any other governmental authority that are required by law to be obtained in connection with the consummation of the merger and the transactions contemplated by the Merger Agreement or which the failure to obtain would be, following the Merger, material to the Surviving Corporation, including certain aviation-related approvals or notifications as may be required by the DOT, the FAA, the FCC, or other regulatory bodies. There can be no assurance that Mesa and Republic will be able to obtain all required regulatory clearances and approvals.

#### Material U.S. Federal Income Tax Consequences of the Merger
The following discussion is a summary of U.S. federal income tax consequences to U.S. Holders (as defined below) of Republic common stock in the Merger. The discussion does not purport to be a complete analysis of all potential tax consequences. The considerations of other U.S. federal tax laws, such as estate and gift tax laws, and any applicable state, local or non-U.S. tax laws, are not discussed. This discussion is based on the Code, Treasury

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Regulations promulgated under the Code, judicial decisions and published rulings, and administrative pronouncements of the IRS, in each case in effect as of the date hereof. These authorities may change or be subject to differing interpretations. Any such change or differing interpretation may be applied retroactively in a manner that could adversely affect a U.S. Holder. Republic has not sought and will not seek any rulings from the IRS regarding the matters discussed below. There can be no assurance the IRS or a court will not take a contrary position to that discussed below regarding the tax consequences of the Merger.

This discussion is limited to a U.S. Holder that holds Republic common stock as a "capital asset" within the meaning of Section 1221 of the Code (generally, property held for investment). This discussion does not address all U.S. federal income tax considerations relevant to a U.S. Holder's particular circumstances, including, without limitation, the effect of the Medicare contribution tax on net investment income, the alternative minimum tax, or the special tax accounting rules under Section 451(b) of the Code. In addition, it does not address considerations relevant to U.S. Holders subject to special rules, such as:

• U.S. expatriates and former citizens or long-term residents of the United States;

• U.S. Holders whose functional currency is not the U.S. dollar;

• persons holding Republic common stock as part of a hedge, straddle, or other risk-reduction strategy or as part of a conversion transaction or other integrated investment;

• banks, insurance companies, and other financial institutions;

• real estate investment trusts or regulated investment companies;

• brokers, dealers, or traders in securities or other persons that elect to use a mark-to-market method of accounting for their holdings in Republic common stock;

• partnerships or other entities or arrangements classified as partnerships, passthroughs, or disregarded entities for U.S. federal income tax purposes (and investors therein), S corporations, or other passthrough entities (including hybrid entities);

• tax-exempt organizations or governmental organizations;

• persons deemed to sell Republic common stock under the constructive sale provisions of the Code;

• persons who hold or receive Republic common stock pursuant to the exercise of any employee stock option or otherwise as compensation;

• tax-qualified retirement plans; and

• persons that own, or have owned, actually or constructively, more than 5% of Republic common stock.

If an entity or arrangement classified as a partnership for U.S. federal income tax purposes holds Republic common stock, the tax treatment of a partner in the partnership will depend on the status of the partner, the activities of the partnership, and certain determinations made at the partner level. Accordingly, a partnership holding Republic common stock and each partner in such partnership is urged to consult its tax advisor regarding the U.S. federal income tax considerations to it of the Merger.

**This discussion is for informational purposes only and is not tax advice. Each prospective investor is urged to consult its tax advisor with respect to the application of the U.S. federal income tax laws to its particular situation as well as any tax considerations of the Merger arising under U.S. federal estate or gift tax laws, the laws of any state, local or non-U.S. taxing jurisdiction or any applicable income tax treaty.** 

A "U.S. Holder" is any beneficial owner of Republic common stock or Mesa common stock, as applicable, that, for U.S. federal income tax purposes, is or is treated as any of the following:

• an individual who is a citizen or resident of the United States;

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• a corporation created or organized under the laws of the United States, any state thereof, or the District of Columbia;

• an estate, the income of which is subject to U.S. federal income tax regardless of its source; or

• a trust that: (i) is subject to the primary supervision of a U.S. court and the control of one or more "United States persons" (within the meaning of Section 7701(a)(30) of the Code); or (ii) has a valid election in effect to be treated as a U.S. person for U.S. federal income tax purposes.

Each of Republic and Mesa intends that the Merger qualifies as a "reorganization" within the meaning of Section 368(a) of the Code. Assuming the Merger so qualifies, a U.S. Holder will not recognize gain or loss upon the receipt of Mesa common stock in exchange for surrendering its Republic common stock in the Merger.

Each U.S. Holder's aggregate tax basis in the shares of Mesa common stock received in the Merger (including any fractional share deemed received and sold for cash, as discussed below) will equal such U.S. Holder's aggregate adjusted tax basis in the shares of Republic common stock exchanged in the Merger. The holding period of the shares of Mesa common stock received by a U.S. Holder in the Merger (including any fractional share deemed received and sold for cash, as discussed below) will include such U.S. Holder's holding period for the shares of Republic common stock exchanged in the Merger. A U.S. Holder that holds different blocks of Republic common stock (generally, Republic common stock acquired on different dates or at different prices) is urged to consult its tax advisor with respect to the determination of the tax bases and holding periods of the particular shares of Mesa common stock received in the Merger.

If the Merger were to fail to qualify as a "reorganization," then each U.S. Holder generally would recognize gain or loss, as applicable, equal to the difference between (i) the sum of the fair market value of the shares of Mesa common stock and cash in lieu of any fractional share of Mesa common stock received by such U.S. Holder in the Merger and (ii) such U.S. Holder's adjusted tax basis in its Republic common stock.

#### U.S. Federal Income Tax Consequences of the Receipt of Cash In Lieu of Fractional Shares
A U.S. Holder who receives cash in lieu of a fractional share of Mesa common stock generally will be treated as having received the fractional share of Mesa common stock pursuant to the Merger and then as having sold that fractional share for cash. As a result, a U.S. Holder generally will recognize gain or loss equal to the difference, if any, between the amount of cash received and the tax basis in such fractional share (determined as described in the preceding section). Any such gain or loss generally will be capital gain or loss, and will be long-term capital gain or loss if, as of the Effective Time of the Merger, the U.S. Holder's holding period for such shares (including the holding period of the Republic common stock surrendered therefor) exceeds one year. The deductibility of capital losses is subject to limitations.

Each U.S. Holder is urged to consult its tax advisor regarding the U.S. federal income tax considerations of the Merger in light of its personal circumstances and the considerations to them under state, local, and non-U.S. tax laws and other U.S. federal tax laws.

#### Information Reporting
Each U.S. Holder who receives Mesa common stock in the Merger is required to retain permanent records pertaining to the Merger and make such records available to any authorized IRS officers and employees. Such records should specifically include information regarding the amount, basis, and fair market value of all transferred property, and relevant facts regarding any liabilities assumed or extinguished as part of such reorganization. Each U.S. Holder who owned immediately before the Merger at least one percent (by vote or value) of the total outstanding common stock of Republic is required to attach a statement to its tax return for the year in which the Merger is consummated that contains the information listed in Treasury Regulation Section 1.368-3(b). Such statement must include the U.S. Holder's tax basis in such U.S. Holder's Republic

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common stock surrendered in the Merger, the fair market value of such Republic common stock, the date of the Merger, and the name and employer identification number of each of Republic and Mesa. Each U.S. Holder is urged to consult with its tax advisor to comply with these rules.

#### Nasdaq Stock Market Listing
Mesa and Republic intend to prepare and submit to Nasdaq an initial listing application covering the shares of Mesa common stock to be issued in the Merger and will use their reasonable best efforts to cause such additional shares of Mesa common stock to be authorized for listing on Nasdaq, at or prior to the Closing. It is a condition to the consummation of the transactions contemplated by the Merger Agreement, including the Merger, that at or prior to the Closing, the shares of Mesa Common Stock issuable in the Merger will have been approved for listing on Nasdaq, but there can be no assurance such listing condition will be met. If such listing condition is not met, the transactions contemplated by the Merger Agreement, including the Merger, will not be consummated unless the condition is waived. The Nasdaq condition set forth in the Merger Agreement is not expected to be waived by the applicable parties. See "*Risk Factors – Risks Related to the Ownership of the Common Stock of the Surviving Corporation – Upon completion of the Merger, failure by the Surviving Corporation to comply with the initial listing standards of Nasdaq will prevent its stock from being listed on Nasdaq*."

#### Reverse Stock Split
Mesa's board of directors intends to effect a reverse stock split of the shares of Mesa common stock. The principal purpose of the reverse stock split is to increase the per-share market price of Mesa common stock to satisfy the minimum bid price requirement of Nasdaq rules for listing the common stock in connection with the Merger. It cannot be assured, however, that the reverse stock split will result in an approval of the Nasdaq listing or otherwise result in a sustained increase in stock price. For a discussion of risks related to the proposed reverse stock split, see "*Risk Factors – Risks Related to the Ownership of the Common Stock of the Surviving Corporation – Upon completion of the Merger, failure by the Surviving Corporation to comply with the initial listing standards of Nasdaq will prevent its stock from being listed on Nasdaq*."

Under Nevada law, Mesa's board of directors may unilaterally approve a reverse stock split; accordingly, Mesa stockholders will not vote on the decision to implement a reverse stock split. Subject to obtaining the consent of Republic to conduct a reverse stock split under the Merger Agreement, Mesa's board of directors will retain discretion on whether and when to adopt a reverse stock split and the precise ratio that would apply to any such split. The discussion throughout this proxy statement/prospectus does not give effect to any reverse stock split.

#### Anticipated Accounting Treatment
The Merger is expected to be accounted for as an acquisition of Mesa by Republic (a reverse acquisition) under the acquisition method of accounting in accordance with GAAP.

#### Appraisal Rights and Dissenters' Rights
Under the NRS and Delaware Law, Mesa stockholders are not entitled to appraisal rights in connection with the Merger or the Delaware Conversion. Under Delaware Law, Republic stockholders are entitled to appraisal rights in connection with the Merger pursuant to Section 262 of the DGCL.

If a holder of record of, or a beneficial owner of, shares of Republic common stock has not consented to the Merger in writing and is entitled to demand, and properly exercises and perfects, appraisal rights under, and otherwise strictly complies with the procedures and requirements of, Section 262 of the DGCL, the Dissenting Shares will not be converted into or represent at the Effective Time the right to receive the Merger Consideration, but the stockholders or beneficial owners of such Dissenting Shares shall instead, and in lieu thereof, be entitled only to such rights as are granted pursuant to Section 262 of the DGCL (it being understood and acknowledged

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that at the Effective Time, such Dissenting Shares will no longer be outstanding, will automatically be cancelled and extinguished and will cease to exist and such stockholder or beneficial owner will cease to have any rights with respect thereto other than the as expressly provided in Section 262 of the DGCL and the Merger Agreement); provided that, if any such stockholder or beneficial owner will have failed to perfect, waived or otherwise effectively withdrawn or lost his, her or its right to appraisal under the DGCL (whether occurring before, at, or after the Effective Time), such stockholder's or beneficial owner's shares of Republic common stock will be deemed to have been converted as of the Effective Time into the right to receive the Merger Consideration, without any interest thereon, and such shares will not be deemed to be Dissenting Shares.

Prior to the Effective Time of the Merger, Republic will give Mesa prompt notice of any demands for appraisal received by Republic, withdrawals of such demands, and any other related instruments served pursuant to Section 262 of the DGCL and received by Republic, pursuant to and in accordance with the terms and conditions of the Merger Agreement.

Failure to strictly comply with all of the applicable legal requirements of Section 262, which are summarized in this section, could result in the loss of appraisal rights. The discussion below does not purport to be a complete summary regarding the appraisal rights of holders of record of, and/or beneficial owners of, shares of Republic common stock under Delaware law and is qualified in its entirety by reference to the text of Section 262 of the DGCL, which may be accessed without subscription or cost at the following publicly available website: https://delcode.delaware.gov/title8/c001/sc09/index.html#262. Due to the complexity of the provisions of Section 262, holders of record of, and beneficial owners of, shares of Republic common stock considering or intending to exercise appraisal rights should carefully review the text of Section 262 and are encouraged to consult their own legal advisors. Failure to follow precisely any of the statutory procedures set forth in Section 262 of the DGCL may result in a loss, forfeiture, termination, or waiver of these rights. This summary does not constitute legal or other advice, nor does it constitute a recommendation that holders of record of, and beneficial owners of, shares of Republic common stock exercise their appraisal rights under Delaware law. All references in Section 262 of the DGCL and in this summary to a "stockholder" or "holders of shares of Republic common stock" are to the record holder of shares of Republic common stock and references to a "beneficial owner" refer to a person who is the beneficial owner of shares of Republic common stock held either in a voting trust or by a nominee on behalf of such person.

Stockholders and beneficial owners of stock of a Delaware corporation that is proposing to merge with another entity are sometimes entitled under Section 262 of the DGCL to what are known as appraisal rights in connection with the proposed merger, subject to certain exceptions. Such rights generally confer on applicable stockholders of record or beneficial owners of stock in the corporation who oppose a merger or the consideration to be received in a merger, who properly demand appraisal of their shares (and do not effectively withdraw or otherwise waive or lose their right to appraisal), who hold their shares as of the date of making the demand and continuously hold such shares through the effective date of the merger, and who otherwise comply in all respects with the applicable statutory procedures to demand and perfect their appraisal rights, the right to receive, in lieu of the consideration being offered in the merger, the "fair value" of their shares in cash as determined by the Delaware Court of Chancery pursuant to Section 262 of the DGCL. The Delaware Supreme Court has stated that the determination of fair value requires consideration of all relevant factors involving the value of a company, and that proof of value by any techniques or methods that are generally considered acceptable in the financial community and otherwise admissible in court should be considered. Elements of future value, including the nature of the enterprise, that are known or susceptible of proof as of the date of the merger and not the product of speculation may be considered, but any element of value arising from the accomplishment or expectation of the merger will not be considered.

Under Section 262(d)(2), where a merger for which appraisal rights are provided is adopted and approved by stockholders by consent in lieu of a meeting of stockholders pursuant to Section 228 of the DGCL, either the constituent corporation before the effective date of such merger or the surviving corporation, within ten days after the effective date of such merger, must notify each stockholder of the constituent corporation entitled to appraisal

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rights of the approval of such merger and that appraisal rights are available and shall include in such notice either a copy of Section 262 of the DGCL or information directing the stockholders to a publicly available electronic resource at which Section 262 may be accessed without subscription or cost. Such notice may, and, if given on or after the effective date of the merger, shall, also notify such stockholders of the effective date of the merger. If such notice does not notify stockholders of the effective date of the merger, either (i) such constituent corporation shall send a second notice before the effective date of the merger notifying each of the holders of any class or series of stock of such constituent corporation that are entitled to appraisal rights of the effective date of the merger, or (ii) the surviving corporation shall send such a second notice to all such holders on or within 10 days after such effective date; provided, however, that if such second notice is sent more than 20 days following the sending of the first notice, such second notice need only be sent to each stockholder who is entitled to appraisal rights and who has demanded appraisal of such holder's shares in accordance with Section 262(d)(2) and any beneficial owner who has demanded appraisal under Section 262(d)(3).

**As of the date of this proxy statement/prospectus Republic has obtained sufficient consents from its stockholders to approve the adoption of the Merger Agreement and approve the transactions contemplated thereby, including the Merger. Accordingly, this proxy statement/prospectus shall constitute the required notice pursuant to Section 262(d)(2) of the DGCL to the stockholders of shares of Republic common stock that the Merger has been approved by the stockholders of Republic and appraisal rights are available in connection with the Merger, and the full text of Section 262 of the DGCL may be accessed without subscription or cost at the following publicly available website: https://delcode.delaware.gov/title8/c001/sc09/index.html#262, in compliance with the requirements of Section 262 of the DGCL.** 

If the Merger is completed, within ten days after the effective date of the Merger, the Surviving Corporation will provide notice of the effective date of the Merger to each holder of shares of Republic common stock who is entitled to appraisal rights and who has demanded appraisal of such holder's shares in accordance with Section 262(d)(2) and any beneficial owner of shares of Republic common stock who has demanded appraisal under Section 262(d)(3).

In order to exercise appraisal rights, holders of record of, or beneficial owners of, shares of Republic common stock entitled to appraisal rights must (i) not have consented in writing to the Merger, (ii) within 20 days after the date of the giving of this notice, demand in writing from the Surviving Corporation the appraisal of such stockholder's or beneficial owner's shares of Republic common stock, (iii) continuously hold of record or beneficially own the shares of Republic common stock from the date of making the demand through the effective date of the Merger and (iv) otherwise comply with the applicable procedures and requirements of Section 262 of the DGCL. Such written demand for appraisal must be sent to the Surviving Corporation, c/o Republic at the address specified below, and must reasonably inform the Surviving Corporation of the identity of the stockholder or beneficial owner, as applicable, and that such stockholder or beneficial owner intends thereby to demand appraisal of the shares of Republic common stock held or beneficially owned by such stockholder or beneficial owner, as applicable. If such demand is made by a beneficial owner, the demand must also reasonably identify the holder of record of the shares of Republic common stock for which the demand is made, must be accompanied by documentary evidence of such beneficial owner's beneficial ownership of such shares of Republic common stock and a statement that such documentary evidence is a true and correct copy of what it purports to be, and provide an address at which such beneficial owner consents to receive notices given by the Surviving Corporation and to be set forth on the verified list required by Section 262(f). Failure to have delivered a consent approving the Merger will not in and of itself constitute a written demand for appraisal satisfying the requirements of Section 262. All demands for appraisal should be addressed to c/o Republic Airways Holdings, Inc., Attn: Legal, 8909 Purdue Road, Suite 300 Indianapolis, IN 46268, and should be executed by, or on behalf of, the record holder or beneficial owner, as applicable, of shares of Republic common stock. If a holder of record of shares of Republic common stock is submitting a demand with respect to shares of Republic common stock owned of record in a fiduciary or representative capacity, such as by a trustee, guardian, or custodian, execution of a demand for appraisal must be made in that capacity. If the shares of Republic common stock are owned of record jointly by more than one person, as in a joint tenancy or tenancy in common, the demand for appraisal

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must be executed by or on behalf of all owners. An authorized agent, including an agent for two or more joint owners, may execute a demand for appraisal on behalf of a stockholder or beneficial owner; however, the agent must identify the stockholder or stockholders (and, if by an authorized agent of any beneficial owner or owners, must identify the beneficial owner or owners and otherwise comply with the requirements applicable to appraisal demands made by beneficial owners) and expressly disclose the fact that, in exercising the demand, the agent is acting as agent for such stockholder or stockholders, or beneficial owner or beneficial owners. A record holder such as a brokerage firm, bank, trust, or other nominee, who holds shares of Republic common stock as nominee or intermediary for one or more beneficial owners may exercise appraisal rights with respect to the shares held for one or more beneficial owners while not exercising appraisal rights with respect to the shares held for one or more other beneficial owners. In such case, the written demand should set forth the number of shares of Republic common stock as to which appraisal is sought, and where no number of shares of Republic common stock is expressly mentioned the demand will be presumed to cover all such shares held in the name of the record owner.

**ALL DEMANDS MUST BE RECEIVED BY REPUBLIC (ON BEHALF OF THE SURVIVING CORPORATION) WITHIN 20 DAYS AFTER THE DATE OF THIS PROXY STATEMENT/PROSPECTUS. FAILURE TO STRICTLY COMPLY WITH THE PROCEDURES SPECIFIED IN SECTION 262 OF THE DGCL TIMELY AND PROPERLY WILL RESULT IN THE LOSS OF APPRAISAL RIGHTS.** 

If you fail to deliver a written demand for appraisal within the time period specified above and in accordance with Section 262 of the DGCL, or if you effectively withdraw or lose (through failure to perfect or otherwise) your appraisal rights, and if the Merger is completed, you will be entitled to receive the Merger consideration for your shares of Republic common stock as provided for in the Merger Agreement, but you will have no appraisal rights with respect to your shares of Republic common stock.

At any time within 60 days after the Effective Time, or thereafter with the written approval of the Surviving Corporation, any stockholder or beneficial owner who has properly demanded an appraisal, but has neither commenced an appraisal proceeding or joined an appraisal proceeding as a named party, has the right to withdraw such demand and accept the Merger Consideration in accordance with the terms and conditions of the Merger Agreement by delivering a written withdrawal to the Surviving Corporation. A withdrawal of a stockholder's or beneficial owner's demand for appraisal will be deemed to be acceptance of the Merger Consideration in accordance with the terms and conditions of the Merger Agreement, which terms are summarized in this proxy statement/prospectus and which Merger Agreement is attached in its entirety to this proxy statement/prospectus as Annex A.

Within 120 days after the effective date of the Merger, any stockholder or beneficial owner who has delivered a demand for appraisal in accordance with Section 262 and who has otherwise complied with the requirements of Section 262 of the DGCL will, upon written request to the Surviving Corporation, be entitled to receive a written statement setting forth the aggregate number of shares for which written consents in favor of the Merger Agreement have not been effectively delivered and with respect to which demands for appraisal rights have been received and the aggregate number of stockholders or beneficial owners holding or owning such shares. This written statement will be given to the requesting stockholder or beneficial owner within 10 days after the stockholder's or beneficial owner's written request is received by the Surviving Corporation or within 10 days after expiration of the period for delivery of demands for appraisal, whichever is later. Within 120 days after the effective date of the Merger, but not thereafter, either the Surviving Corporation or any stockholder or beneficial owner who has delivered a demand for appraisal in accordance with Section 262 and otherwise complied with Section 262 of the DGCL may commence an appraisal proceeding by filing a petition in the Delaware Court of Chancery demanding a determination of the fair value of all shares of Republic common stock held by all stockholders and beneficial owners who have properly demanded appraisal. Upon the filing of the petition by a stockholder or beneficial owner, service of a copy of the petition must be made upon the Surviving Corporation. The Surviving Corporation has no obligation to file a petition in the Delaware Court of Chancery in the event there are dissenting stockholders, and Mesa, which is expected to be the Surviving Corporation, has no present intent to file a petition in the Delaware Court of Chancery.

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Stockholders and beneficial owners of shares of Republic common stock seeking to exercise appraisal rights should not assume that the Surviving Corporation will file such a petition. Accordingly, the failure of a stockholder to file a petition within the period specified could nullify the stockholder's previously written demand for appraisal and stockholders or beneficial owners who desire to have their shares of Republic common stock appraised should initiate any petitions necessary for the perfection of their appraisal rights in respect of shares of Republic common stock within the time periods and in the manner prescribed in Section 262 of the DGCL.

If a petition for appraisal is duly and timely filed by a stockholder or beneficial owner and a copy of the petition is delivered to the Surviving Corporation, the Surviving Corporation will then be obligated, within 20 days after receiving service of a copy of the petition, to file in the office of the Register in Chancery in which the petition was filed a duly verified list containing the names and addresses of all stockholders and beneficial owners who have demanded an appraisal of their shares and with whom agreements as to the value of their shares have not been reached by the Surviving Corporation. The Delaware Court of Chancery may order that notice of the time and place fixed for the hearing on the petition be mailed to the Surviving Corporation, and all stockholders and beneficial owners shown on such verified list at the address stated therein. The forms of notices by mail and by publication shall be approved by the Delaware Court of Chancery, and the costs thereof shall be borne by the Surviving Corporation.

After providing notice to the stockholders and beneficial owners as required by the Delaware Court of Chancery, the Delaware Court of Chancery is empowered to conduct a hearing upon the petition and determine those stockholders and beneficial owners who have complied with Section 262 of the DGCL and who have become entitled to the appraisal rights provided by Section 262 of the DGCL. The Delaware Court of Chancery may require stockholders and beneficial owners who have demanded an appraisal for their shares of Republic common stock and who hold stock represented by certificates to submit their stock certificates to the Delaware Register in Chancery for notation thereon of the pendency of the appraisal proceedings, and if any stockholder or beneficial owners fails to comply with the requirement, the Delaware Court of Chancery may dismiss the proceedings as to that stockholder or beneficial owner.

After determination of the stockholders and beneficial owners entitled to appraisal of their shares of Republic common stock, the Delaware Court of Chancery will conduct an appraisal proceeding in accordance with the rules of the Delaware Court of Chancery to determine the "fair value" of the shares of Republic common stock at the effective time of the Merger held by the dissenting stockholders and beneficial owners, exclusive of any element of value arising from the accomplishment or expectation of the Merger. In determining such "fair value," the Delaware Court of Chancery will take into account all relevant factors. Unless the Delaware Court of Chancery in its discretion determines otherwise for good cause shown, and except as provided in Section 262 of the DGCL, interest from the effective time of the Merger through the date of payment of the judgment will be compounded quarterly and will accrue at 5% over the Federal Reserve discount rate (including any surcharge) as established from time to time during the period between the effective time of the Merger and the date of payment of the judgment. At any time before the entry of judgment in the proceedings, the Surviving Corporation may pay to each stockholder and beneficial owner entitled to appraisal an amount in cash, in which case interest shall accrue thereafter only upon the sum of (i) the difference, if any, between the amount so paid and the fair value of the shares subject to appraisal as determined by the Delaware Court of Chancery and (ii) interest theretofore accrued, unless paid at that time. Upon application by the surviving corporation in the merger, the Delaware Court of Chancery may, in its discretion, proceed to trial upon the appraisal prior to the final determination of the persons entitled to an appraisal. Any person whose name appears on the verified list may participate fully in all proceedings until it is finally determined that such person is not entitled to appraisal rights. When the fair value is determined, the Delaware Court of Chancery will direct the payment of such fair value of the shares of Republic common stock, with interest thereon accrued during the pendency of the proceedings, if any, to the stockholders and beneficial owners entitled to receive the same, upon such terms and conditions as the Delaware Court of Chancery may order.

In determining fair value of shares of capital stock, the Delaware Court of Chancery is required to take into account all relevant factors. In *Weinberger v. UOP, Inc.*, the Delaware Supreme Court discussed the factors that

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could be considered in determining fair value in an appraisal proceeding, stating that "proof of value by any techniques or methods which are generally considered acceptable in the financial community and otherwise admissible in court" should be considered, and that "fair price obviously requires consideration of all relevant factors involving the value of a company." The Delaware Supreme Court has stated that, in making this determination of fair value, the court must consider market value, asset value, dividends, earnings prospects, the nature of the enterprise, and any other facts which could be ascertained as of the date of the merger which throw any light on future prospects of the merged corporation.

Section 262 provides that fair value is to be "exclusive of any element of value arising from the accomplishment or expectation of the merger." In Cede & Co. v. Technicolor, Inc., the Delaware Supreme Court stated that this exclusion is a "narrow exclusion that does not encompass known elements of value," but which rather applies only to the speculative elements of value arising from such accomplishment or expectation. In Weinberger, the Delaware Supreme Court construed Section 262 to mean that "elements of future value, including the nature of the enterprise, which are known or susceptible of proof as of the date of the merger and not the product of speculation, may be considered." In addition, the Delaware courts have decided that the statutory appraisal remedy, depending on factual circumstances, may or may not be a dissenting stockholder's exclusive remedy. An opinion of an investment banking firm as to the fairness from a financial point of view of the consideration payable in a merger is not an opinion as to, and does not in any manner address, fair value under Section 262 of the DGCL.

You should be aware that the fair value of your shares as determined under Section 262 could be more than, the same as, or less than the Merger Consideration that stockholders and beneficial owners would otherwise be entitled to receive under the terms of the Merger Agreement. No representation is made as to the outcome of the appraisal of fair value as determined by the Delaware Court of Chancery. Mesa and Republic do not anticipate offering more than the Merger Consideration to any stockholder or beneficial owner exercising appraisal rights and reserve the right to make a voluntary cash payment pursuant to Section 262(h) and to assert, in any appraisal proceeding, that, for purposes of Section 262 of the DGCL, the "fair value" of a share of Republic common stock is less than the Merger Consideration.

The Delaware Court of Chancery may determine the costs of the appraisal proceeding and may allocate those costs to the parties to the appraisal proceeding as the Court deems equitable in the circumstances. Each dissenting stockholder or beneficial owner is responsible for its own attorneys' and expert witnesses' fees and expenses, although, upon the application of a person whose name appears on the verified list filed by the Surviving Corporation who participated in the appraisal proceeding and incurred costs in connection therewith, the Delaware Court of Chancery may order all or a portion of the expenses incurred by any stockholder or beneficial owner in connection with the appraisal proceeding, including, without limitation, reasonable attorneys' fees and the fees and expenses of experts, to be charged pro rata against the value of all shares of Republic common stock entitled to appraisal. In the absence of such a determination of assessment, each party bears its own expenses.

Any stockholder who had demanded appraisal rights will not, after the effective time, be entitled to vote shares subject to that demand for any purpose or to receive payments of dividends or any other distribution with respect to those shares, other than with respect to payment as of a record date prior to the effective time; however, if no petition for appraisal is filed within 120 days after the effective time, or if the stockholder delivers a written withdrawal of his or her demand for appraisal and an acceptance of the terms of the Merger within 60 days after the effective time (or thereafter with the written consent of the Surviving Corporation), then the right of that stockholder to appraisal will cease and that stockholder will be deemed to have accepted the terms of the Merger Agreement, which terms are summarized in this proxy statement/prospectus and which Merger Agreement is attached in its entirety to this proxy statement/prospectus as Annex A, and thereafter will be entitled to receive the Merger Consideration for shares of his or her Republic common stock pursuant to the Merger Agreement. Any withdrawal of a demand for appraisal made more than 60 days after the Effective Time may only be made with the written approval of the Surviving Corporation. No appraisal proceeding in the Delaware Court of Chancery will be dismissed as to any stockholder without the approval of the Delaware Court of Chancery, and such approval may be conditioned upon such terms as the Delaware Court of Chancery deems just; provided, however, that the foregoing will not affect the right of any stockholder or beneficial

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owner that has properly made an appraisal demand but has not commenced an appraisal proceeding or joined that proceeding as a named party to withdraw its demand for appraisal and accept the Merger Consideration offered pursuant to the terms and conditions of the Merger Agreement within 60 days after the effective time of the Merger. If the Surviving Corporation does not approve a stockholder's or beneficial owner's request to withdraw a demand for appraisal when that approval is required or, except with respect to a stockholder or beneficial owner that withdraws its demand for appraisal in accordance with the proviso in the immediately preceding sentence, if the Delaware Court of Chancery does not approve the dismissal of an appraisal proceeding, the stockholder or beneficial owner would be entitled to receive only the appraised value of his, her or its shares of Republic common stock determined in any such appraisal proceeding, which value could be more than, the same as or less than the value of the Merger Consideration being offered pursuant to the terms and conditions of the Merger Agreement.

**Failure to strictly comply with all of the procedures set forth in and required by Section 262 of the DGCL for perfecting appraisal rights may result in the loss of a stockholder's or beneficial owner's appraisal rights. In view of the complexity of Section 262, stockholders or beneficial owners who may wish to dissent from the Merger and pursue appraisal rights should consult their financial and legal advisors before attempting to exercise appraisal rights in any manner**.

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#### THE MERGER AGREEMENT
*The following is a summary of the material terms of the Merger Agreement. A copy of the Merger Agreement is attached to this proxy statement/prospectus as Annex A and is incorporated by reference into this proxy statement/prospectus. The Merger Agreement has been attached to this proxy statement/prospectus to provide you with information regarding its terms. It is not intended to provide any other factual information about Mesa or Republic. The following description does not purport to be complete and is qualified in its entirety by reference to the Merger Agreement. You should refer to the full text of the Merger Agreement for details of the Merger and the terms and conditions of the Merger Agreement.* 

*The Merger Agreement contains representations and warranties that Mesa, on the one hand, and Republic, on the other hand, have made to one another as of specific dates. These representations and warranties have been made for the benefit of the other parties to the Merger Agreement and may be intended not as statements of fact but rather as a way of allocating the risk to one of the parties if those statements prove to be incorrect. In addition, the assertions embodied in the representations and warranties are qualified by information in confidential disclosure schedules exchanged by the parties in connection with signing the Merger Agreement. While Mesa and Republic do not believe that these disclosure schedules contain information required to be publicly disclosed under the applicable securities laws, other than information that has already been so disclosed, the disclosure schedules do contain information that modifies, qualifies, and creates exceptions to the representations and warranties set forth in the attached Merger Agreement. Accordingly, you should not rely on the representations and warranties as current characterizations of factual information about Mesa or Republic, because they were made as of specific dates, may be intended merely as a risk allocation mechanism between Mesa and Republic and are modified by the disclosure schedules.* 

#### The Merger
Each of the Mesa board of directors and the Republic board of directors has unanimously approved the Merger Agreement. Under the Merger Agreement, Republic will be merged with and into Mesa, with Mesa continuing as the Surviving Corporation, in a transaction referred to herein as "the Merger." At the Effective Time, the separate corporate existence of Republic will cease.

#### Merger Consideration
Subject to the terms and conditions of the Merger Agreement, each share of Republic common stock issued and outstanding immediately prior to the Effective Time will be automatically converted into the right to receive 584.90 shares, referred to herein as the Exchange Ratio, of validly issued, fully paid, and non-assessable shares of Mesa common stock, with cash (without interest, rounded down to the nearest cent) paid in lieu of any fractional shares, or the Merger Consideration (except for shares of Republic common stock owned by Republic (as treasury stock or otherwise) or shares owned by Mesa or any of their respective subsidiaries immediately prior to the Effective Time (the "Cancelled Shares"), and except for shares of Republic common stock that are issued and outstanding immediately prior to the Effective Time (other than Cancelled Shares) and which are held by Republic stockholders who (i) have not voted in favor of the Merger or consented to it in writing and are entitled to demand, and (ii) have properly exercised and perfected appraisal rights for such shares of Republic common stock in accordance with Section 262 of the DGCL (the "Dissenting Shares"). The Cancelled Shares will automatically be cancelled and extinguished and will cease to exist, and no consideration or payment will be owed or delivered in exchange thereof or in respect thereof.

Each share of Mesa common stock issued and outstanding immediately prior to the Effective Time (for the avoidance of doubt, excluding the Escrow Shares) will remain issued and outstanding, and from and after the Effective Time, will represent one share of Mesa common stock and entitle the holder thereof to the non-transferable contingent right to receive a pro rata share of the Escrow Asset, if any, distributed pursuant to and in accordance with the Merger Agreement, the Three Party Agreement, and the Escrow Agreement.

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Based on the Exchange Ratio of 584.90, and on the closing stock price of Mesa common stock of $ as of , 2025, the latest practicable trading day before the date of this proxy statement/prospectus, the value of the per share Merger Consideration payable to holders of Republic common stock was approximately $ as of such date. The trading price of Mesa common stock will continue to fluctuate until the date the Merger is consummated.

The Exchange Ratio shall be adjusted, as applicable and appropriate, to reflect fully the effect of any stock split, reverse split, combination, subdivision, reclassification, stock dividend (including any dividend or distribution of securities convertible into Mesa common stock), reorganization, recapitalization, or other like change with respect to Mesa common stock occurring after the date of the Merger Agreement and prior to the Effective Time.

#### Fractional Shares
Mesa will not issue any fractional shares of Mesa common stock in the Merger. Instead, a Republic stockholder who otherwise would have received a fraction of a share of Mesa common stock shall be entitled to receive, for such fraction of a share, an amount in cash, without interest, rounded down to the nearest cent, equal to the product of (i) the average of the volume weighted average price per share of Mesa common stock on the Nasdaq Stock Market (as reported by Bloomberg L.P. or, if not reported therein, in another authoritative source mutually selected by Mesa and Republic) on each of the five consecutive trading days ending with the last complete trading day three days immediately prior to the Closing Date, multiplied by (ii) the fraction of a share of Mesa common stock which such Republic stockholder would otherwise be entitled to receive pursuant to the Merger Agreement.

The trading price of Mesa common stock will continue to fluctuate until the date the Merger is consummated. For further information, see "*Risk Factors — Risks Related to the Merger*" beginning on page 47.

#### Plan of Conversion
Section 1.2 of the Merger Agreement sets forth the Plan of Conversion. Pursuant to the Plan of Conversion, following the Closing but prior to the Effective Time, and in accordance with Section 265 of the DGCL and NRS 92A, Mesa will convert from a Nevada corporation into a Delaware corporation and will thereafter be subject to all of the provisions of the DGCL, except that, pursuant to Section 265(d) of the DGCL, notwithstanding Section 106 of the DGCL, the existence of Mesa-Delaware shall be deemed to have commenced on the date Mesa-Nevada was first formed or incorporated in the State of Nevada.

The parties will cause the Delaware Conversion to occur pursuant to and in accordance with Section 265 of the DGCL and NRS 92A by filing or causing to be filed (i) with the Secretary of State of the State of Delaware (A) a duly executed certificate of conversion in form and substance reasonably acceptable to Mesa and Republic and (B) a certificate of incorporation of Mesa in the form and substance filed as Exhibit 3.4 to the registration statement of which this proxy statement/prospectus forms a part, which will govern Mesa-Delaware as a Delaware corporation, and which will become effective at such time as is agreed by Mesa and Republic and specified in the Certificate of Conversion, provided that the effective date and time of the Certificate of Conversion shall in all events be the same effective date and time as the Post-Conversion Charter, and (ii) with the Secretary of State of the State of Nevada, duly executed articles of conversion in form and substance reasonably acceptable to Mesa and Republic, with such Articles of Conversion becoming effective at the same time as the Certificate of Conversion (and with such effective time being specified in the Articles of Conversion). The Delaware Conversion will become effective at the time specified in the Conversion Filings.

In connection with and as part of the Delaware Conversion, and pursuant to and in accordance with the Merger Agreement, Section 265 of the DGCL and NRS 92A. 105, automatically and without any action on the

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part of any holder thereof, each share of common stock, no par value per share, of Mesa-Nevada that is issued and outstanding immediately prior to the Conversion Effective Time, will be converted at the Conversion Time into one fully paid, validly issued, and nonassessable share of common stock, par value $0.001 per share, of Mesa-Delaware. Further, except as amended in the Merger as set forth in the Merger Agreement, the Post-Conversion Charter will become the certificate of incorporation of Mesa, until thereafter supplemented or amended in accordance with its terms and the DGCL and except as amended in the Merger as set forth in the Merger Agreement, Mesa will adopt the bylaws in the form filed as Exhibit 3.5 to the registration statement of which this proxy statement/prospectus forms a part as the bylaws of Mesa, until thereafter supplemented or amended in accordance with its terms and the DGCL.

#### The Escrow Issuance
Upon the terms and subject to the conditions of the Merger Agreement and pursuant to the terms of the Three Party Agreement and the Escrow Agreement, copies of which are filed as Exhibit 10.15 and Exhibit 10.36, respectively, to the registration statement of which this proxy statement/prospectus forms a part, promptly following the Closing (but in all events immediately following the Effective Time), and in consideration for Mesa's and Republic's willingness to enter into the Merger Agreement, Mesa will issue and deliver to the Escrow Agent (as defined in the Escrow Agreement) a number of validly issued, fully paid and nonassessable shares of its common stock equal to six percent (6%) of the total number of shares of common stock of the Surviving Corporation issued and outstanding after completion of the Merger and such issuance. The Escrow Assets will be held by the Escrow Agent pursuant to and governed by the terms of the Three Party Agreement and the Escrow Agreement, and will be distributed by the Escrow Agent to United Airlines, the Surviving Corporation, and/or the Pre-Merger Mesa Shareholders, as applicable, in accordance with the provisions of the Merger Agreement, Three Party Agreement, and Escrow Agreement.

#### Governing Documents
Mesa has agreed pursuant to the Merger Agreement to amend the Post-Conversion Charter, which will be the certificate of incorporation of Mesa immediately prior to the Effective Time, such that as of the Effective Time, the name of the Surviving Corporation will be "Republic Airways Holdings Inc.". The Post-Conversion Charter so amended will be the certificate of incorporation of the Surviving Corporation from and after the Effective Time until thereafter amended in accordance with applicable law and the terms of such certificate of incorporation.

The Post-Conversion Bylaws, which will be the bylaws of Mesa immediately prior to the Effective Time, will be the bylaws of the Surviving Corporation, as of the Effective Time, until thereafter amended in accordance with applicable law and the terms of the certificate of incorporation of the Surviving Corporation and such bylaws; *provided, however*, that Mesa and Republic will take all requisite action so that, as of the Effective Time, the Post-Conversion Bylaws are amended to reflect that the name of Mesa, as the Surviving Corporation is "Republic Airways Holdings Inc." For a more detailed description of the governing documents of the Surviving Corporation, see the section entitled "*Proposal No. 1— The Merger Proposal— Rights of Mesa Stockholders Prior to and After the Conversion from the State of Nevada to the State of Delaware*" beginning on page 207.

#### Closing and Effectiveness of the Merger
The Merger will be completed only if all conditions to the Merger discussed in this proxy statement/prospectus and set forth in the Merger Agreement are either satisfied or waived (subject to applicable law). See "*The Merger Agreement — Conditions to the Completion of the Merger*."

The Merger will become effective as set forth in the certificate of merger to be filed with the Secretary of State of the State of Delaware. The Closing will occur at 10:00 a.m., New York City time, on the date which shall be the third business day following the satisfaction or, to the extent permitted by applicable law, waiver of the conditions set forth in the Merger Agreement (other than those conditions that by their terms are to be satisfied at

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the Closing, but subject to the satisfaction or, to the extent permitted by applicable law, waiver of those conditions at the Closing), remotely by the electronic exchange of closing deliverables and the taking of the closing actions contemplated in the merger agreement, unless another date, time, or place is agreed to in writing by Mesa and Republic; *provided* that notwithstanding anything to the contrary in the Merger Agreement, unless mutually agreed by Mesa and Republic, neither party shall be required to effect the Closing prior to September 8, 2025. It currently is anticipated that the completion of the Merger will occur in the second half of 2025 subject to the receipt of Mesa Stockholder Approval, regulatory approvals, and other customary closing conditions, but neither Mesa nor Republic can guarantee when or if the merger will be completed.

#### Conversion of Shares; Exchange Procedures
The conversion of Republic common stock (other than the Cancelled Shares and the Dissenting Shares, as applicable) into the right to receive the Merger Consideration will occur automatically and with no action on the part of any holder thereof at the Effective Time, subject to the terms and conditions contained in the Merger Agreement.

*Exchange Fund* 

At or immediately prior to the Effective Time, Mesa will deposit or cause to be deposited with an exchange agent jointly appointed by Mesa and Republic (the "Exchange Agent"), (i) book-entry shares of Mesa common stock equal to the aggregate merger consideration, and (ii) an amount in cash sufficient to pay the aggregate cash in lieu of fractional shares, in each case to be paid by the exchange agent pursuant to the Merger Agreement (such aggregate number of shares of Mesa common stock and aggregate amount of cash provided to the exchange agent, the "Exchange Fund").

*Letter of Transmittal*

No later than three business days prior to the anticipated Closing Date, Mesa will deliver or will cause the exchange agent to deliver to each holder of Republic common stock that is or will be at the Effective Time entitled to the Merger Consideration, a letter of transmittal and instructions on how to surrender shares of Republic common stock in exchange for the Merger Consideration the holder is entitled to receive under the merger agreement.

As soon as reasonably practicable after the Effective Time and in any event no later than two business days after the later of (i) the Effective Time, and (ii) receipt by the exchange agent from a holder of a duly completed and validly executed (in each case as reasonably determined by Mesa) letter of transmittal and such other customary documents as may reasonably be required by Mesa or the exchange agent, the exchange agent will issue to such holder in exchange therefor (A) book-entry shares of Mesa common stock equal to the aggregate Merger Consideration that such holder has the right to receive pursuant to the Merger Agreement, and (B) cash in the amount equal to the aggregate cash in lieu of any fractional shares that such holder has the right to receive pursuant to the Merger Agreement, in each case, without interest and subject to any applicable tax withholding.

*Termination and Investment of Exchange Fund* 

Any portion of the Exchange Fund which remains undistributed for 12 months after the Effective Time will be returned to Mesa, upon demand, and any former holder of Republic common stock that has not complied with the exchange procedures prior to the end of such period shall thereafter look only to Mesa (subject to abandoned property, escheat, or other similar laws), but only as a general creditor thereof for payment of their claims for the Merger Consideration. Any Merger Consideration that remains unclaimed immediately prior to the date on which it would otherwise become subject to any abandoned property, escheat, or similar law, will, to the extent permitted by applicable law, become Mesa's property.

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Until disbursed in accordance with the terms and conditions of the Merger Agreement, the exchange agent will invest any cash included in the Exchange Fund as directed by Mesa and any interest and other income resulting from such investments will be payable to Mesa on demand; *provided*, that such investments shall be in commercial paper obligations rated A-1 or P-1 or better by Moody's Investor Services, Inc. or Standard & Poor's Corporation, respectively; *provided*, further that no such investment shall relieve Mesa or the exchange agent from making or causing to be made the required payments and Mesa will bear the sole risk of any investment loss.

*Withholding*

Each of Mesa, Republic, the Surviving Corporation, the exchange agent and any otherer applicable withholding agent, will be entitled to deduct and withhold from any amounts otherwise payable pursuant to the Merger Agreement such amounts as it is required to deduct and withhold under applicable law. To the extent that any amounts are so withheld and remitted to the applicable governmental entity, the withheld amounts will be treated for all purposes of the Merger Agreement as having been paid to the holder of Republic common stock or other person in respect of which the deduction and withholding was made.

#### Republic Appraisal Rights
If a holder of record of, or a beneficial owner of, shares of Republic common stock has not consented to the Merger in writing and is entitled to demand, and properly exercises and perfects, appraisal rights under, and otherwise strictly complies with the procedures and requirements of, Section 262 of the DGCL, the Dissenting Shares will not be converted into or represent at the Effective Time the right to receive the Merger Consideration, but the stockholders or beneficial owners of such Dissenting Shares shall instead, and in lieu thereof, be entitled only to such rights as are granted pursuant to Section 262 of the DGCL (it being understood and acknowledged that at the Effective Time, such Dissenting Shares will no longer be outstanding, will automatically be cancelled and extinguished and will cease to exist and such stockholder or beneficial owner will cease to have any rights with respect thereto other than as expressly provided in Section 262 of the DGCL and the Merger Agreement); provided that, if any such stockholder or beneficial owner will have failed to perfect, waived, or otherwise effectively withdrawn or lost his, her, or its right to appraisal under the DGCL (whether occurring before, at, or after the Effective Time), such stockholder's or beneficial owner's shares of Republic common stock will be deemed to have been converted as of the Effective Time into the right to receive the Merger Consideration, without any interest thereon, and such shares will not be deemed to be Dissenting Shares.

Prior to the Effective Time of the merger, Republic will give Mesa prompt notice of any demands for appraisal received by Republic, withdrawals of such demands, and any other related instruments served pursuant to Section 262 of the DGCL and received by Republic.

#### Mesa RSUs and Restricted Stock Awards
Immediately prior to the Effective Time, (i) any vesting conditions applicable to each RSU award and Restricted Stock award in respect of shares of Mesa common stock will automatically and without any required action on the part of the holder thereof, accelerate in full, and (ii) each then outstanding RSU award and Restricted Stock award in respect of shares of Mesa common stock will automatically and without any required action on the part of the holder thereof, be cancelled and will only entitle the holder thereof to receive (a) the number of shares of Mesa common stock subject to such awards immediately prior to the Effective Time, and (b) the non-transferable contingent right to receive a pro rata share of the Escrow Asset distributed pursuant to and in accordance with the Merger Agreement.

#### Republic RSUs
Immediately prior to the Effective Time, each then outstanding RSU award in respect of shares of Republic common stock that has vested in accordance with its terms (including each outstanding RSU award in respect of

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shares of Republic common stock that will become vested upon the Closing) will automatically and without any required action on the part of the holder thereof, be cancelled and will only entitle the holder thereof to receive a number of whole shares of Republic common stock (rounded up to the next whole share), which shares of Republic common stock will be converted into Mesa common stock in accordance with the Exchange Ratio.

Each then outstanding RSU award in respect of shares of Republic common stock that is unvested will automatically and without any required action on the part of the holder thereof, be assumed by Mesa and converted into the right to receive a Surviving Corporation Restricted Stock Award in an amount equal to the number of whole shares of Mesa common stock (rounded up to the next whole share of Mesa common stock) equal to the product obtained by multiplying (i) the Exchange Ratio by (y) the total number of shares of Republic common stock subject to such unvested RSU award in respect of shares of Republic common stock immediately prior to the Effective Time. Each such RSU award in respect of shares of Republic common stock that is assumed and converted into a restricted stock award will continue to have and be subject to the same terms and conditions, including with respect to vesting, as applicable to the corresponding RSU award as of immediately prior to the Effective Time. Mesa will take all actions necessary to register the shares subject to such restricted stock awards under the Form S-4/S-1.

#### Post-Closing Payments
Promptly following the determination of the portion of the Escrow Asset payable to the holders of shares of Mesa common stock issued and outstanding immediately prior to the Effective Time, in accordance with the Three Party Agreement and the delivery of the written instruction to the exchange agent pursuant to the Three Party Agreement, the Surviving Corporation, and the Mesa Representative will take the required actions to effect the distribution of the remaining Escrow Asset, if any, to the holders of shares of Mesa common stock issued and outstanding immediately prior to the Effective Time, based upon their respective pro rata share, in accordance with the terms and provisions of the Three Party Agreement and the Escrow Agreement.

#### Representations and Warranties
The Merger Agreement contains customary representations and warranties of each of Mesa and Republic relating to their respective businesses. The representations and warranties of each of Mesa and Republic have been made solely for the benefit of the other party, and these representations and warranties should not be relied on by any other person. In addition, these representations and warranties:

• have been qualified by information set forth in disclosure schedules delivered to the other party with the execution and delivery of the Merger Agreement, which information modifies, qualifies, and creates exceptions to the representations and warranties in the Merger Agreement;

• with respect to Mesa, have been qualified by information set forth in registration statements, prospectuses, forms, reports, certifications, statements, and other documents filed or furnished by Mesa under the Securities Act or the Exchange Act, as the case may be, together with all certifications required pursuant to the Sarbanes-Oxley Act (such documents and any other documents filed by Mesa with the SEC, as have been supplemented, modified, or amended since the time of filing, collectively, the "Mesa SEC Documents") that are publicly available on the SEC's Electronic Data Gathering Analysis and Retrieval System ("EDGAR") prior to the date of the Merger Agreement (but (i) without giving effect to any amendment thereof filed with the SEC on or after the date of the Merger Agreement and (ii) excluding any disclosure contained in such Mesa SEC Documents under the heading "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" or sections of such reports and other disclosures that are similarly predictive, cautionary, or forward-looking in nature);

• may be intended not as statements of fact, but rather as a way of allocating the risk to one of the parties to the Merger Agreement if those statements turn out to be inaccurate;

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• are in some cases subject to a materiality standard described in the Merger Agreement which may differ from what may be viewed as material by you; and

• were made only as of the date of the Merger Agreement or such other date as is specified in the Merger Agreement.

The Merger Agreement contains representations and warranties made by each of Mesa and Republic relating to a number of matters. With respect to Mesa, these representations and warranties include the following:

• corporate matters, including due organization and qualification and subsidiaries;

• capitalization;

• authority relative to execution and delivery of the Merger Agreement and the Three Party Agreement and required stockholder votes;

• absence of conflicts with, or violations of, organizational documents or other obligations as a result of the Merger;

• required governmental and other regulatory filings and consents and approvals in connection with the Merger;

• required filings and consents;

• permits and compliance with applicable laws;

• SEC reports, financial statements, independent public accountant, internal controls, and books and records;

• inapplicability of takeover laws and absence of stockholder rights agreements;

• absence of undisclosed liabilities;

• absence of certain changes or events;

• employee benefit plan matters;

• labor and other employment matters;

• certain material contracts;

• compliance with applicable laws;

• litigation;

• environmental matters;

• intellectual property and information technology (IT) assets;

• data privacy and security;

• tax matters;

• insurance matters;

• tangible personal property, real property, and title to assets;

• related party transactions;

• aircraft and related matters;

• takeoff and landing slots, operating authorizations, and related matters;

• absence of material interference of Mesa operations by airport authorities;

• qualification as a U.S. citizen, and authorization and qualification to operate as an "air carrier";

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• fairness opinion;

• broker's fees payable in connection with the Merger, Delaware conversion, and fairness opinion;

• trade control compliance;

• the accuracy of information supplied for inclusion in this proxy statement/prospectus and other similar documents;

• compliance with treasury restrictions; and

• non-reliance on any other information.

Republic's representations and warranties in the Merger Agreement include the following:

• corporate matters, including due organization and qualification and subsidiaries;

• capitalization;

• authority relative to execution and delivery of the Merger Agreement and the Three Party Agreement and required stockholder votes;

• absence of conflicts with, or violations of, organizational documents, or other obligations as a result of the Merger;

• required governmental and other regulatory filings and consents and approvals in connection with the Merger;

• permits and compliance with applicable laws;

• financial statements and absence of undisclosed liabilities;

• inapplicability of takeover laws and absence of stockholder rights agreements;

• absence of certain changes or events;

• litigation;

• tax matters;

• absence of broker's fees payable in connection with the Merger;

• employee benefit plan matters;

• environmental matters;

• data privacy and security matters;

• insurance matters;

• properties and assets;

• the accuracy of information supplied for inclusion in this proxy statement/prospectus and other similar documents; and

• non-reliance on any other information.

Certain representations and warranties of Mesa and Republic are qualified as to knowledge, "materiality" or "material adverse effect." For purposes of the Merger Agreement, a "material adverse effect," when used in reference to Mesa or Republic, means any change, event, circumstance, development, condition, occurrence, or effect (each, an "Effect") that, individually or in the aggregate, (a) would, or would reasonably be expected to, prevent, materially impair, or materially delay the ability of the party to, by January 5, 2026 (the "Outside Date"), consummate the transactions contemplated by the Merger Agreement that are to occur at or prior to the Closing, (b) with respect to Mesa only, would, or would reasonably be expected to, result in any material change in the

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party's ability to (i) conduct normal flying operations for its anticipated fleet as of the Closing or (ii) achieve the performance obligations required by any material contracts, or (c) has had, or would reasonably be expected to have, a material adverse effect on the business, condition (financial or otherwise), assets, or results of operations of the party, taken as a whole; *provided, however*, that in the case of this clause (c) only, the determination of the existence of any "material adverse effect" shall not take into account any of the following: (i) any changes after the date of the Merger Agreement in general economic conditions, or in securities, credit, or financial markets, including changes in interest rates and changes in exchange rates, in the United States or any other country or region in the world, or any industry-wide development after the date hereof generally affecting airline companies; (ii) any change after the date hereof in GAAP or any applicable laws affecting the operation of the business of the party; (iii) any change resulting from the announcement or pendency of the transactions contemplated by the Merger Agreement, including the Merger, including the impact thereof on the relationships, contractual or otherwise, of the party with employees (including any employee attrition), suppliers, customers, partners, lenders, lessors, vendors, governmental entities, or any other third person (it being understood that this clause (iii) shall not apply to any representation, warranty, covenant, or agreement of such party in the Merger Agreement that is expressly intended to address the consequences of the execution, delivery, or performance of the Merger Agreement or the consummation of the transactions contemplated hereby); (iv) any change after the date hereof in regulatory, legislative, or political conditions in the United States or any other country or region in the world; (v) acts of war, outbreak, or escalation of hostilities, terrorism, sabotage, or other changes in geopolitical conditions, earthquakes, volcanic eruptions, hurricanes, tsunamis, tornados, floods, mudslides, wild fires, or other natural disasters, any epidemic, pandemic, outbreak of illness, or other public health event (including, for the avoidance of doubt, COVID-19 and the impact of COVID-19 or any COVID-19 measures on the party) and other similar events in the United States or any other country or region in the world, in each case arising after the date of the Merger Agreement; (vi) any failure by the party to meet any internal or published (including analyst) budgets, projections, expectations, forecasts, or predictions in respect of the party's revenue, earnings, or other financial performance or results of operations (it being understood that the underlying facts and circumstances giving rise to such event may be deemed to constitute, and may be taken into consideration in determining whether there has been, a material adverse effect); (vii) any action required to be taken or omitted by the party or any subsidiary of the party pursuant to the Merger Agreement or taken or omitted at the express written request of the other party; (viii) any change after the date of the Merger Agreement in the market price or trading volume, or the downgrade in rating, of the party's securities (it being understood that the underlying facts and circumstances giving rise to such event may be deemed to constitute, and may be taken into consideration into determining whether there has been, a material adverse effect); (ix) any change after the date hereof in the conditions in the industries in which the party conducts business (including as the result of fuel or other commodity price changes); (x) the development, continuation, or worsening, in each case after the date of the Merger Agreement, of supply chain or service disruptions affecting the party; or (xi) any breach by the other party of the Merger Agreement; *provided*, *further*, that the Effects set forth in the foregoing clauses (i), (ii), (iv), (v), (ix), and (x) will be taken into account in determining whether there has occurred a material adverse effect only to the extent such Effects have, individually or in the aggregate, a disproportionate adverse impact on the party relative to other companies in the airline industry, in which case only the incremental disproportionate adverse impact may be taken into account in determining whether a material adverse effect has occurred.

#### Covenants and Agreements
*Conduct of Business Prior to the Completion of the Merger*

Each of Republic and Mesa has agreed that, from the date of the Merger Agreement through the Effective Time (or earlier termination of the Merger Agreement), subject to specified exceptions, it will, and will cause each of its subsidiaries to conduct its operations in the ordinary course of business and use its reasonable best efforts to (i) preserve substantially intact its business organization, (ii) keep available the services of its executive officers, other key employees and pilots, (iii) maintain in effect all material permits, and (iv) maintain satisfactory relationships with any persons with which it, or any of its subsidiaries, has material business relations and with governmental entities that have jurisdiction over its business and operations.

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Additionally, each of Republic and Mesa has undertaken further covenants. Prior to the Effective Time (or earlier termination of the Merger Agreement), subject to specified exceptions, Republic may not, and may not cause any of its subsidiaries to, undertake the following:

• amend or otherwise change its articles of incorporation or bylaws or comparable organizational documents of its subsidiaries;

• issue, sell, pledge, convey, dispose of, grant, transfer, or encumber, or authorize the issuance, sale, pledge, disposition, grant, transfer, or encumbrance of, any shares of capital stock of, or other equity interests in it or any of its subsidiaries of any class, or securities convertible into, or exchangeable or exercisable for, any shares of such capital stock or other equity interests, or any options, warrants, or other rights of any kind to acquire any shares of such capital stock or other equity interests or such convertible or exchangeable securities, or any other ownership interest (including any such interest represented by contract right), of Republic or any of its subsidiaries, other than (i) the issuance of shares of Republic common stock upon the vesting of outstanding equity awards as set forth in the Merger Agreement in accordance with their terms or (ii) the issuance of shares of Republic common stock upon the exercise of the warrants;

• declare, set aside, make, or pay any dividend or other distribution with respect to any of its capital stock or enter into any agreement with respect to the voting or registration of any of its capital stock, except any dividend or distribution declared, set aside, made or paid by it or any of its subsidiaries to any other of its subsidiaries;

• reclassify, combine, split, subdivide, or amend the terms of, or redeem, purchase, or otherwise acquire, directly or indirectly, any shares of its capital stock or other equity interests, or authorize or propose the issuance of capital stock or any other equity interests in respect of, in lieu of or in substitution for shares of its capital stock or other equity interests, except for the vesting or settlement of any outstanding equity awards set forth in the Merger Agreement or to fund any of its or its subsidiaries' tax withholding obligations in connection with the vesting or settlement of any outstanding equity awards in accordance with the terms of such award or by it or any of its subsidiaries to any of its other subsidiaries;

• merge or consolidate itself or any of its subsidiaries with any person, entity, or organization, or adopt a plan of complete or partial liquidation or resolutions providing for a complete or partial liquidation, dissolution, restructuring, recapitalization, conversion, or similar reorganization; or

• agree, resolve, authorize, or enter into any contract or otherwise make any commitment, to do any of the foregoing.

Prior to the Effective Time (or earlier termination of the Merger Agreement), subject to specified exceptions, Mesa may not, and may not cause any of its subsidiaries to, undertake the following:

• amend or otherwise change its articles of incorporation or bylaws, comparable organizational documents of its subsidiaries, the Post-Conversion Charter or Post-Conversion Bylaws following the conversion, or its treasury documents;

• issue, sell, pledge, convey, dispose of, grant, transfer, or encumber, or authorize the issuance, sale, pledge, disposition, grant, transfer or encumbrance of, any shares of capital stock of, or other equity interests in it or any of its subsidiaries of any class, or securities convertible into, or exchangeable or exercisable for, any shares of such capital stock or other equity interests, or any options, warrants, or other rights of any kind to acquire any shares of such capital stock or other equity interests or such convertible or exchangeable securities, or any other ownership interest (including any such interest represented by contract right), of it or any of its subsidiaries, other than (i) the issuance of shares of its common stock upon the vesting of equity awards that are outstanding as of the date of the Merger Agreement as set forth in Mesa's disclosure schedule in accordance with their terms and those equity awards disclosed therein to be issued to Mesa's directors pursuant to annual equity grants and to

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Mesa's executive officers pursuant to the terms of their respective employment agreements, or (ii) the issuance of shares of its common stock upon the exercise of the warrants;

• sell, pledge, convey, abandon, allow to lapse or expire, fail to renew or maintain, dispose of, transfer, lease, license, or subject to any lien any of its or its subsidiaries' material property or assets, including any material intellectual property rights (other than non-exclusive licenses of intellectual property rights granted in the ordinary course of business), other than (i) pursuant to or as required by a contract in effect as of the date of the Merger Agreement and previously made available to Republic, or (ii) any sale, pledge, conveyance, consolidation, division, transfer, lease, license, or lien solely between or among it or any of its subsidiaries;

• declare, set aside, make, or pay any dividend or other distribution with respect to any of its capital stock or enter into any agreement with respect to the voting or registration of any of its capital stock, except any dividend or distribution declared, set aside, made, or paid by it or any of its subsidiaries to any other of its subsidiaries;

• reclassify, combine, split, subdivide, or amend the terms of, or redeem, purchase or otherwise acquire, directly or indirectly, any of its capital stock or other equity interests, or authorize or propose the issuance of capital stock or any other equity interests in respect of, in lieu of or in substitution for shares of its capital stock or other equity interests, except for the vesting or settlement of any RSUs or restricted stock unit awards of Mesa set forth in the Merger Agreement or to fund any of its or its subsidiaries' tax withholding obligations in connection with the vesting or settlement of any RSUs or restricted stock unit awards in accordance with the terms of such award or by it or any of its subsidiaries to any of its other subsidiaries;

• merge or consolidate itself or any of its subsidiaries with any person, entity, or organization, or adopt a plan of complete or partial liquidation or resolutions providing for a complete or partial liquidation, dissolution, restructuring, recapitalization, conversion, or similar reorganization;

• acquire any interest in any person, entity, or organization, or any assets, other than the purchase or acquisition of equipment, goods, technology, non-exclusive licenses under intellectual property right, or other materials, in each case, in the ordinary course of business;

• enter into any new line of business or terminate any line of business existing as of the date of the Merger Agreement;

• (i) voluntarily repurchase, voluntarily prepay, or incur any indebtedness, in each case, (ii) make any loans, advances or capital contributions to, or investments in, any other person, entity or organization (other than any of its subsidiaries), (iii) enter into any "keep well" or other contract to maintain any financial statement or similar condition of another person, entity, or organization that is not any of its subsidiaries or enter into any arrangement having the economic effect of any of the foregoing or (iv) assume, guarantee, or endorse, or otherwise become liable or responsible for, similar obligations contemplated in clauses (i) and (ii) of any other person, entity, or organization (other than any of its subsidiaries);

• enter, extend, or renew or otherwise modify, amend, or terminate or waive any material rights or obligations under any of its material contracts (or any contract that would have been a material contract if in existence as of the date of the Merger Agreement);

• make or authorize any capital expenditure, except for capital expenditures expressly set forth in the capital expenditures budget set forth in Mesa's disclosure schedule;

• subject to specified exceptions, (i) increase the compensation or benefits payable or to become payable to any of its or its subsidiaries' former or current employees, officers, consultants, independent contractors, or directors ("Mesa Service Providers"), (ii) grant any additional rights to severance or termination payment to, or enter into or amend any severance agreement with, any Mesa Service Provider, (iii) establish, terminate, adopt, enter into, or amend any bonus, profit sharing, thrift, pension,

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retirement, deferred compensation, retention, termination or severance plan, agreement, trust, fund, policy, or other arrangement for the benefit of any Mesa Service Provider, (iv) loan or advance any money or property to any Mesa Service Provider, (v) hire any Mesa Service Provider, (vi) terminate (other than termination for cause, death or disability) any Mesa Service Provider, or (vii) make any material change to the terms and conditions of employment applicable to any group of employees, as reflected in work rules, employee handbooks, policies, and procedures, or otherwise; <br>

• terminate, discontinue, close, or dispose of any facility or business operation, or lay off any employees;

• implement any early retirement or separation program, or any program providing early retirement window benefits or announce or plan any such action or program for the future;

• enter into or amend any collective bargaining agreement;

• forgive any material loans to Mesa Service Providers or any of their respective affiliates;

• make any material change in accounting policies, practices, principles, methods, or procedures in effect as of September 30, 2024, other than as required by GAAP or by applicable law;

• make any material adverse change to any privacy policy or to the security or operation of any of its IT assets, except in each case as required by applicable law;

• enter into, terminate, or materially amend any related party transaction other than as permitted pursuant to the Merger Agreement;

• implement any new policies or practices (or make any material changes to existing policies or practices) with respect to equity, interest rate, currency, or commodity derivatives or hedging transactions;

• compromise, settle or agree to settle any proceeding, other than any compromise, settlement, or agreement for the payment of monetary damages (and compliance with confidentiality and other similar customary provisions) by Mesa of $100,000 or less individually or $250,000 or less in the aggregate and is not covered by an insurance policy or paid by the respective insurers thereunder, in each case as its sole remedy;

• make, change, or rescind any material tax election, settle, or compromise any material tax liability or claim or assessment for a material amount of taxes, change (or request to change) any method of accounting for tax purposes, file an amendment to any material tax return, waive or extend any statute of limitation in respect of a period within which an assessment or reassessment of material tax may be issued or in respect of any material tax attribute that would give rise to any claim or assessment of taxes of or with respect to Mesa and its subsidiaries (or its respective income, assets and operations) other than any extension pursuant to an extension to file any tax return, knowingly surrender or allow to expire any right to claim a refund of taxes; enter into any "closing agreement" as described in Section 7121 of the Code (or any similar legal requirement) with any governmental entity, incur any material liability for taxes other than in the ordinary course of business, prepare any material tax return in a manner inconsistent with past practice, or take any action (or knowingly fail to take any action) that would reasonably be expected to prevent, impair, or impede the intended tax treatment;

• write up, write down, or write off the book value of any tangible assets, except for depreciation, amortization or impairment in accordance with GAAP consistently applied;

• change the seat count, main cabin configuration, or on-board amenities (including in-flight entertainment and wireless internet) of any aircraft subject to future delivery to Mesa under any Mesa aircraft purchase contract;

• take any action, or fail to take action, which action or failure would be reasonably expected to result in the revocation, termination, cancellation or withdrawal of any takeoff and landing slots, runway timings, slot exemptions, and operating authorizations from the FAA, DOT, or any other governmental

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entity or civil aviation authority, airport authority, or slot coordinator and other designated takeoff and landing rights used or held by Mesa or any of its subsidiaries (excluding temporary returns to the FAA);

• fail to continue all material maintenance programs applicable to its aircraft in the ordinary course of business (except as required by applicable law), including using reasonable best efforts to keep all such aircraft in such condition as may be necessary to enable the airworthiness certification of such aircraft under the Federal Aviation Act to be maintained in good standing at all times;

• take any action that would cause any air carrier of Mesa or any of its subsidiaries to fail to be, or fail to be owned and controlled by a "citizen of the United States" as defined in 49 U.S.C. § 40102(a)(15) of the Federal Aviation Act and as interpreted by DOT, or take any action that would cause it or any of its subsidiaries to fail to continue to be fully authorized and qualified to operate as an "air carrier" within the meaning of such Act operating under certificates and exemptions issued pursuant to such Act; or

• agree, resolve, authorize, or enter into any contract or otherwise make any commitment, in each case to do any of the foregoing.

In addition, from the date of the Merger Agreement through the Closing, Mesa:

• must remain current and compliant in all material respects with all of its indebtedness and creditor obligations, including the Mesa Obligations (as defined in the Three Party Agreement), and may not incur, assume, guarantee, or otherwise become liable for any incremental indebtedness;

• except in the ordinary course of business consistent with past practice, may not enter into any new contracts with third parties or employees, including labor groups, that create new liabilities or financial obligations for it or, after the Closing, the Surviving Corporation (including, any new CBAs, letters of agreement or any amendments thereto), nor will it have instituted any wage rate increases for any of its employee groups, in each case without Republic's prior written consent (not to be unreasonably withheld, conditioned, or delayed);

• must use its cash and cash equivalents only in the ordinary course of business or to repay, retire, or otherwise extinguish the Mesa Obligations as and to the extent contemplated by the Three Party Agreement; and

• must not make any new purchases of aircraft, engines, or any other capital assets, and may not enter into any new strategic relationships, software license agreements, or other material long term contracts.

*Regulatory Approvals* 

Subject to the terms and conditions set forth in the Merger Agreement, each of Mesa and Republic agreed to use its respective reasonable best efforts to (i) take, or cause to be taken, all appropriate action and do, or cause to be done, all things necessary, proper or advisable under applicable law or otherwise to consummate and make effective the transactions contemplated by the Merger Agreement as promptly as practicable and (ii) obtain from any governmental entities any consents, licenses, permits, waivers, approvals, authorizations, confirmations, clearances, certificates, exemptions, registrations, variants, deviations, ratings, operations specifications, grants, directives, or orders required to be obtained by Mesa or Republic or any of their respective subsidiaries, or to avoid any action or proceeding by any governmental entity (including those in connection with the HSR Act), in connection with the authorization, execution, and delivery of the Merger Agreement and the consummation of the transactions contemplated thereby, including the Merger.

Additionally, neither Mesa nor Republic nor their respective subsidiaries shall (i) acquire or agree to acquire or make investments in or agree to make investments in or (ii) enter into an agreement to form a joint venture, strategic alliance, or strategic partnership, if in either case, doing so would reasonably be expected to materially increase the risk of not obtaining any consent, approval, authorization, declaration, waiver, license, franchise, permit, or similar required by any governmental entity necessary to consummate the transactions contemplated by

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the merger agreement or materially increase the risk of any governmental entity entering an order prohibiting the consummation of the transactions contemplated by the Merger Agreement.

Mesa shall, if reasonably requested by Republic so as to permit the expiration or termination of the applicable waiting period under HSR or the receipt of any other consent under Competition Law, effect any sale, divestiture, license, holding separate or similar arrangement with respect to, or other disposition or restriction on, any assets operations, rights, product lines, licenses, businesses, or interests of Mesa and its subsidiaries that would have a similar effect; provided that such action is condition on the occurrence of, and shall only be effective upon the Closing of the Merger.

*Employee Matters* 

Subject to the terms and conditions of the Merger Agreement, for a period of 12 months following the Effective Time (or, with respect to any continuing Mesa employee until the earlier termination of employment of such continuing Mesa employee, other than continuing Mesa employees who are covered by a collective bargaining agreement as of immediately prior to the Effective Time), Mesa shall provide to continuing Mesa employees (i) a base salary or wage rate and target annual bonus or commission opportunity that, in each case, is substantially comparable, in the aggregate to that which was provided to the continuing Mesa employee immediately prior to the Effective Time, and (ii) employee benefits that are substantially comparable in the aggregate to either, at the election of Mesa following the Effective Time the employee benefits provided to such continuing Mesa employee immediately prior to the Effective Time, or the employee benefits provided to similarly situated employees of Republic or its subsidiaries.

To the extent that Mesa modifies any coverage or benefit plan in which continuing Mesa employees participate, Mesa or any of its subsidiaries must use commercially reasonable efforts to (i) waive or cause to be waived any pre-existing conditions, exclusions, limitations, actively-at-work requirements, and eligibility waiting periods under any of Mesa's group health plans with respect to continuing Mesa employees and their eligible dependents, and (ii) give each continuing Mesa employee credit for the plan year in which the Effective Time occurs towards applicable deductibles and annual out-of-pocket limits for medical expenses incurred prior to the Effective Time for which payment has been made.

Following the Effective Time, to the extent that continuing Mesa and/or Republic employees participate in a new employee benefit plan, Mesa or any of its subsidiaries must use commercially reasonable efforts to (i) waive or cause to be waived any pre-existing conditions, exclusions, limitations, actively-at-work requirements, and eligibility waiting periods under any of Mesa's group health plans with respect to such employees and their eligible dependents, (ii) give such employees credit for the plan year in which the Effective Time occurs towards applicable deductibles and annual out-of-pocket limits for medical expenses incurred prior to the Effective Time for which payment has been made and (iii) to the extent that it would not result in a duplication of benefits and to the extent that such service was recognized under a similar employee benefit plan, give each such employee service credit for such Mesa employee's employment with Republic or Mesa, as applicable, for purposes of eligibility to participate and vesting credit under each applicable Mesa benefit plan as if such service had been performed with Mesa or Republic, as applicable.

Mesa must continue to abide by the terms and conditions of CBAs with respect to continuing Mesa employees that are covered by such an agreement as of immediately prior to the Effective Time, and must cause the applicable subsidiary of Republic to continue to do the same with respect to Republic employees.

*Director and Officer Indemnification and Insurance*

The Merger Agreement provides that for a period of six years from and after the Effective Time, the Surviving Corporation will indemnify and hold harmless, to the same extent that such persons are indemnified as of the date of the Merger Agreement by Mesa or Republic, as applicable, pursuant to applicable law, with respect

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to Mesa, the Post-Conversion Charter, and the Post-Conversion Bylaws, with respect to Republic, its certificate of incorporation and bylaws, and indemnification agreements in existence on the date of the Merger Agreement (but only to the extent such agreements were made available to Republic or are consistent, in all material respects, with the form of indemnification agreement filed with Mesa's SEC Documents), all present and former directors, officers and employees of Mesa and Republic with respect to acts or omissions in their capacity as directors, officers, or employees of Mesa or Republic, as applicable, occurring at or prior to the Effective Time. The Surviving Corporation will also advance expenses (including reasonable legal fees and expenses) incurred in the defense of any proceedings with respect to matters subject to indemnification pursuant to the Merger Agreement to such persons in accordance with the procedures set forth in, with respect to the directors, officers and employees of Mesa, the Post-Conversion Charter, Post-Conversion Bylaws, and indemnification agreements in existence on the date of the Merger Agreement (but only to the extent such agreements were made available to Republic or are consistent, in all material respects, with the form of indemnification agreement filed with Mesa's SEC Documents), and with respect to the directors, officer, and employees of Republic, Republic's certificate of incorporation, bylaws, and indemnification agreements in existence on the date of the Merger Agreement.

The Merger Agreement requires the Surviving Corporation to cause, for a period of six years after the Effective Date, its certificate of incorporation and bylaws to contain provisions no less favorable with respect to exculpation and indemnification of directors and officers of each of Mesa and Republic for periods at or prior to the Effective Time of the merger than are set forth, with respect to Mesa, in the Post-Conversion Charter, and Post-Conversion Bylaws, and with respect to Republic, in its certificate of incorporation and bylaws. The Surviving Corporation must cause the indemnification agreements in existence on the date of the Merger Agreement with any of Mesa's or Republic's directors, officers or employees (but only to the extent such agreements were made available to Republic with Mesa's SEC Documents) to continue in full force and effect in accordance with their terms following the Effective Time. The Merger Agreement requires the Surviving Corporation to maintain in effect for a period of six years from the Effective Date, the existing directors' and officers' liability insurance policies, *provided*, the Surviving Corporation may substitute policies which provide at least the same coverage as the existing policies and contain terms and conditions that are substantially equivalent and not less favorable than the directors' and officers' liability insurance policy currently maintained by Mesa or Republic, as applicable, with respect to matters occurring prior to the Effective Time, subject to a maximum annual premium equal to 300% of the last annual premium paid prior to the date of the Merger Agreement. In lieu of the foregoing, the Surviving Corporation may obtain a "tail" insurance policy with a claims period of at least six years from the Effective Time with respect to directors' and officers' liability insurance in amount and scope at least as favorable as Mesa's or Republic's, as applicable, existing policies for claims arising from facts or events that occurred on or prior to the Effective Time.

Notwithstanding any six-year limitation, the director and officer indemnification and insurance obligations discussed above will continue until the final disposition of any proceeding brought or commenced during such six-year period, and will not be terminated or modified in a manner that adversely affects an indemnitee without the consent of such affected indemnitee.

*Certain Additional Covenants*

The Merger Agreement also contains additional covenants, including, among others, covenants relating to the filing of this proxy statement/prospectus, obtaining required consents, certain notices, state takeover laws, matters related to Section 16 of the Exchange Act, tax matters, obtaining a representation, and warranties insurance policy, the listing of the shares of Mesa common stock to be issued in the Merger, the registration of the shares of common stock of the Surviving Corporation issued in the Escrow Issuance, access to information and confidentiality, public announcements with respect to the transactions contemplated by the Merger Agreement, and litigation in connection with the Merger Agreement.

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#### Meeting of Mesa's Stockholders and Written Consent of Republic's Stockholders
Mesa is obligated under the Merger Agreement to duly establish a record date for and to duly call, give notice of and hold a meeting of its stockholders as promptly as practicable after the Form S-4/S-1 is declared effective under the Securities Act solely for the purpose of obtaining approval of (i) the Merger Agreement, the Merger, the Plan of Conversion, and the Delaware Conversion by the holders of a majority of the outstanding shares of Mesa common stock entitled to vote thereon at the Mesa Special Meeting, and (ii) the issuance of shares of Mesa common stock in the Merger by the holders of a majority of the votes cast at the Mesa Special Meeting. The Mesa Special Meeting will be held as promptly as practicable after this registration statement on Form S-4/S-1 is declared effective under the Securities Act.

Republic is required to solicit and use its reasonable best efforts to obtain approval from its stockholders no later than the required approval from Mesa stockholders is obtained. Republic will deliver to Mesa a copy of the written consents received from its stockholders and evidencing stockholder approval as promptly as practicable after the stockholder approval becomes effective; *provided*, that Republic may, at its sole option, attempt to obtain stockholder approval by holding a special meeting of its stockholders in lieu of soliciting written consents.

Notwithstanding any Republic change in recommendation, Republic is required to solicit and use its reasonable best efforts to obtain stockholder approval and written consents from its stockholders.

#### Mesa No-Shop
Mesa has agreed that it will and will cause its subsidiaries and its and their respective directors and officers to, and will instruct its and their other Representatives to: (i) immediately cease and cause to be terminated any solicitations, discussions or negotiations with any third party other than Republic that may be ongoing with respect to any Mesa Acquisition Proposal, or any expression of interest, discussions, offer, or negotiations that would reasonably be expected to lead to a Mesa Acquisition Proposal, (ii) promptly (and in any event within 24 hours after the date of the Merger Agreement) (a) instruct each such third party to return to Mesa or destroy any non-public information previously furnished to such third party or its Representatives by or on behalf of Mesa, and (b) terminate all physical and electronic data room access previously granted to such third party and its Representatives.

Except as expressly permitted by the Merger Agreement, Mesa has agreed that it will not, and will cause its subsidiaries and its and their respective directors and officers not to, and will instruct its and their other Representatives not to, (i) solicit, initiate, knowingly encourage, or facilitate any expression of interest, proposal or offer that constitutes or would reasonably be expected to lead to a Mesa Acquisition Proposal, (ii) participate in any discussions or negotiations relating to any Mesa Acquisition Proposal with any third party other than Republic, (iii) furnish to any third party other than Republic any information in connection a Mesa Acquisition Proposal with or any expression of interest, proposal or offer that would reasonably be expected to lead to a Mesa Acquisition Proposal, (iv) enter into any agreement, letter of intent, memorandum of understanding, agreement in principle, acquisition agreement, merger agreement, option, or other similar contract providing for or otherwise relating to any Mesa Acquisition Proposal (other than an Acceptable Confidentiality Agreement (as defined in the Merger Agreement) in accordance with the terms of the Merger Agreement) or that is intended to result in, or would reasonably be expected to lead to, any Mesa Acquisition Proposal or (v) submit any Mesa Acquisition Proposal or any matter related thereto to the vote of Mesa stockholders.

From and after the date of the Merger Agreement, Mesa will promptly (and in any event within 24 hours) (i) notify Republic of (a) any Mesa Acquisition Proposal (including any material modification to the terms of any such acquisition proposal) that is received, to Mesa's knowledge (which, for this purpose, will be deemed to include each member of Mesa's board of directors and its officers and will not be deemed to be only as of the date of the Merger Agreement), by Mesa or its Representatives from any third party (other than Republic), or (b) any requests for non-public information, or any discussions or negotiations sought to be initiated or continued

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with Mesa or its Representatives, in each case, concerning the making of a Mesa Acquisition Proposal or any indication of interest, proposal or offer that would reasonably be expected to lead to a Mesa Acquisition Proposal, and (ii) disclose to Republic the identity of such third party making, and provide an unredacted copy of, any such Mesa Acquisition Proposal or request (or, if made orally, a reasonably detailed written description of such acquisition proposal or request). Mesa shall promptly upon receipt thereof (and in any event within 24 hours) provide Republic and its outside legal counsel with copies of all drafts and final versions of definitive or other material agreements including schedules and exhibits thereto and any other material correspondence relating to such Mesa Acquisition Proposal, in each case exchanged between Mesa and any of its Representatives, on the one hand, and the third party making such Mesa Acquisition Proposal or any of its Representatives, on the other hand. Mesa will keep Republic reasonably informed of the status and terms, including with respect to any change in price or other material amendments, of any such Mesa Acquisition Proposal or request. Mesa shall promptly, and in any event within 24 hours, following a determination by its board of directors that a Mesa Acquisition Proposal is a Mesa Superior Proposal, notify Republic of such determination. The delivery of such notice and the determination to so deliver such notice will not, by itself, constitute a Change of Mesa Recommendation, as defined below.

However, if at any time on or after the date of the Merger Agreement until the earlier of the receipt of the approval of the Merger Agreement by Mesa stockholders or the earlier termination of the Merger Agreement in accordance with its terms, Mesa receives an unsolicited bona fide written Mesa Acquisition Proposal from a third party that was not the result of a breach of its obligation not to solicit pursuant to the Merger Agreement, and Mesa's board of directors determines in good faith, after consultation with its financial advisor and outside legal counsel, that such Mesa Acquisition Proposal constitutes or is reasonably expected to lead to a Mesa Superior Proposal and that failure to take such actions would reasonably be expected to be inconsistent with Mesa's board of directors' exercise of fiduciary duties under Nevada law, Mesa may participate in discussions or negotiations with the third party making such Mesa Acquisition Proposal regarding such proposal, and, subject to receiving an executed Acceptable Confidentiality Agreement from such third party, furnish information with respect to Mesa or its subsidiaries to the third party making such Mesa Acquisition Proposal pursuant to an executed Acceptable Confidentiality Agreement from such third party; provided that, Mesa provides (i) written notice to Republic of the determinations referenced above promptly (and in any event within 24 hours) (it being understood that the delivery of such notice and the determination to so deliver such notice shall not, by itself, constitute a Change of Mesa Recommendation or constitute a breach of the Merger Agreement) and (ii) to Republic in writing (or makes available) any information concerning Mesa provided to such other third party which was not previously provided to Republic or its Representatives prior to or substantially concurrently with the time that it is provided to such third party. Mesa must deliver to Republic a copy of any executed Acceptable Confidentiality Agreement promptly (and in any event within 24 hours) following its execution.

#### Change of Mesa Recommendation
From the date of the Merger Agreement through the earlier of the Effective Time and the termination of the Merger Agreement in accordance with its terms, Mesa, the Mesa board of directors, or any committee thereof is required not, or not to publicly propose, to (i) withhold, withdraw, modify, or qualify, in each case in a manner adverse to Republic, the Mesa Recommendation (ii) fail to include the Mesa Recommendation in this proxy statement/prospectus, (iii) publicly approve, publicly recommend, or publicly declare advisable any Mesa Acquisition Proposal, (iv) submit any Mesa Acquisition Proposal or any matter related thereto to the vote of the Mesa stockholders, (v) following the public disclosure of any Mesa Acquisition Proposal, fail to publicly reaffirm the Mesa Recommendation as promptly as reasonably practicable (but in any event within three business days) after receipt of any written request to do so from Republic (provided, that if the end of such three business day window would occur on or after the date of the Mesa Special Meeting, then Mesa will instead be required to publicly reaffirm the Mesa Recommendation no later than one business day prior to the Mesa Special Meeting), (vi) with respect to any Mesa Acquisition Proposal initiated through a tender or exchange offer pursuant to Rule 14d-2 under the Exchange Act, take any action or make any recommendation or public statement in connection therewith other than an unequivocal recommendation against such offer, or (vii) authorize, commit,

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resolve, or agree, in each case in a legally binding manner, to take any such actions (each of the actions described in (i) through (vii) being referred to as a Change of Mesa Recommendation).Notwithstanding the above, if Mesa has received a bona fide written Mesa Acquisition Proposal from a third party that did not result from a breach of the Merger Agreement and the Mesa board of directors determines in good faith, after consultation with its financial advisor and outside legal counsel, as applicable, that a Mesa Acquisition Proposal constitutes a Mesa Superior Proposal taking into account the results of any negotiations with Republic as contemplated by the Merger Agreement and any offer from Republic contemplated by the Merger Agreement, and that a failure to make a Change of Mesa Recommendation or cause Mesa to enter into a Mesa Alternative Acquisition Agreement with respect to such Mesa Superior Proposal would reasonably be expected to be inconsistent with its exercise of its fiduciary duties under Nevada law, then the Mesa board of directors may prior to the time the Mesa stockholder approval is obtained, effect a Change of Mesa Recommendation, or terminate the Merger Agreement to enter into a Mesa Alternative Acquisition Agreement with respect to such Mesa Superior Proposal; provided, however, that Mesa may not terminate the Merger Agreement, and any purported termination pursuant to the Merger Agreement will be void and of no force or effect, unless it concurrently pays the required termination fee and the Mesa board of directors may not effect a Change of Mesa Recommendation or terminate the Merger Agreement unless, (i) Mesa has given Republic at least four business days' prior written notice of its intention to take such action (referred to as the Mesa Notice Period) (it being understood, for all purposes of the Merger Agreement, that the delivery of such notice and any amendment or update thereto and the deliberation and determination to so deliver such notice, update or amendment will not, by themselves, constitute a Change of Mesa Recommendation), including information and documentation relating to such Mesa Superior Proposal, and Mesa has contemporaneously provided to Republic a copy of all relevant proposed transaction agreements with the Person making such Mesa Superior Proposal; (ii) before effecting such a Change of Mesa Recommendation or terminating the Merger Agreement to enter into a Mesa Alternative Acquisition Agreement with respect to such Mesa Superior Proposal, Mesa has negotiated in good faith with Republic during the Mesa Notice Period to the extent Republic wishes to negotiate, to make such adjustments in the terms and conditions of the Merger Agreement such that it would cause such proposal to no longer constitute a Mesa Superior Proposal; in the event of any material revisions to such Mesa Superior Proposal, Mesa must deliver a new written notice to Republic and to comply with the requirements of the Merger Agreement with respect to such new written notice, with the Mesa Notice Period for any subsequent notice shortened from four to two business days; (iii) Republic has not, during the Mesa Notice Period, made an offer to modify the terms and conditions of the Merger Agreement, set forth in a definitive written amendment delivered to Mesa and executed on behalf of Republic, that the Mesa board of directors has in good faith determined, after consultation with its outside legal counsel and financial advisor, would obviate the need for it to effect such a Change of Mesa Recommendation or terminate the Merger Agreement; and (iv) the Mesa Notice Period (and any extension thereof) has expired.

Notwithstanding the above, prior to the time Mesa stockholder approval is obtained, the Mesa board of directors may make a Change of Mesa Recommendation in response to a Mesa Intervening Event if it has determined in good faith, after consultation with its outside legal counsel, that, in light of such Mesa Intervening Event and taking into account the results of any negotiations with Republic as contemplated by clause (ii) below and any offer from Republic contemplated by clause (iii) below, the failure to take such action would reasonably be expected to be inconsistent with its exercise of its fiduciary duties under Nevada law; provided, however, that the Mesa board of directors may not make a Change of Mesa Recommendation pursuant to the foregoing unless: (i) Mesa has given Republic at least four business days' prior written notice in advance of its intention to take such action (referred to as the Mesa Intervening Event Notice Period) (it being understood, for all purposes of the Merger Agreement, that the delivery of such notice, update, or amendment and the deliberation and determination to so deliver such notice, update or amendment shall not, by themselves, constitute a Change of Mesa Recommendation), including the reason for proposing to effect such Change of Mesa Recommendation and reasonable detail regarding the Mesa Intervening Event; (ii) before effecting such Change of Mesa Recommendation, Mesa has negotiated in good faith with Republic during the Mesa Intervening Event Notice Period to the extent Republic wishes to negotiate, to make such adjustments in the terms and conditions of the Merger Agreement such that it would obviate the need for the Mesa board of directors to effects such a Change of Mesa Recommendation; (iii) Republic has not, during the Mesa Intervening Event Notice Period, made an offer

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to modify the terms and conditions of the Merger Agreement, set forth in a definitive written amendment to the Merger Agreement delivered to Mesa and executed on behalf of Republic, that the Mesa board of directors has in good faith determined, after consultation with its outside legal counsel and financial advisor, would obviate the need for it to effect such a Change of Mesa Recommendation; and (iv) the Mesa Intervening Event Notice Period has expired.

Pursuant to the Merger Agreement, Mesa agrees that if (i) any of its subsidiaries, directors, or officers take any action or (ii) Mesa authorizes or directs any of its other Representatives to take an action, or it is made aware of an action by one of its other Representatives and does not use its reasonable best efforts to prohibit or terminate such action, and the actions in clauses (i) and (ii) would constitute a breach if taken by Mesa, then such action will be deemed to constitute a breach of the Merger Agreement by Mesa.

#### Republic No-Shop
Republic has agreed that it will and will cause its subsidiaries and its and their respective directors and officers to, and will instruct its and their other Representatives to: (i) immediately cease and cause to be terminated any solicitations, discussions, or negotiations with any third party other than Republic that may be ongoing with respect to any Republic Acquisition Proposal, or any expression of interest, discussions, offer, or negotiations that would reasonably be expected to lead to a Republic Acquisition Proposal, (ii) promptly (and in any event within 24 hours after the date of the Merger Agreement) (a) instruct each such third party to return to Republic or destroy any non-public information previously furnished to such third party or its Representatives by or on behalf of Republic, and (b) terminate all physical and electronic data room access previously granted to such third party and its Representatives.

Except as expressly permitted by the Merger Agreement, Republic has agreed that it will not, and will cause its subsidiaries and its and their respective directors and officers not to, and will instruct its and their other Representatives not to, directly or indirectly (i) solicit, initiate, knowingly encourage, or facilitate any expression of interest, proposal, or offer that constitutes or would reasonably be expected to lead to a Republic Acquisition Proposal, (ii) participate in any discussions or negotiations relating to any Republic Acquisition Proposal with any third party other than Mesa, (iii) furnish to any third party other than Mesa any information in connection with a Republic Acquisition Proposal or any expression of interest, proposal, or offer that would reasonably be expected to lead to a Republic Acquisition Proposal, (iv) enter into any agreement, letter of intent, memorandum of understanding, agreement in principle, acquisition agreement, merger agreement, option, or other similar contract providing for or otherwise relating to or that is intended to result in, or would reasonably be expected to lead to any Republic Acquisition Proposal, or (v) submit any Company Acquisition Proposal or any matter related thereto to the vote of Republic stockholders, a Republic Acquisition Proposal.

From and after the date of the Merger Agreement, Republic will promptly (and in any event within 24 hours) (i) notify Mesa of (a) any Republic Acquisition Proposal (including any material modification to the terms of any such acquisition proposal) that is received, to Republic's knowledge (which, for this purpose, will be deemed to include each member of Republic's board of directors and its officers and will not be deemed to be only as of the date of the Merger Agreement), by Republic or its Representatives from any third party (other than Mesa), or (b) any requests for non-public information, or any discussions or negotiations sought to be initiated or continued with Republic or its Representatives, in each case, concerning the making of a Republic Acquisition Proposal or any indication of interest, proposal or offer that would reasonably be expected to lead to a Republic Acquisition Proposal, and (ii) disclose to Mesa the identity of such third party making, and provide an unredacted copy of, any such Republic Acquisition Proposal or request (or, if made orally, a reasonably detailed written description of such acquisition proposal or request). Republic shall promptly upon receipt thereof (and in any event within 24 hours) provide Mesa and its outside legal counsel with copies of all drafts and final versions of definitive or other material agreements including schedules and exhibits thereto and any other material correspondence relating to such Republic Acquisition Proposal, in each case exchanged between Republic and any of its Representatives, on the one hand, and the third party making such Republic Acquisition Proposal or

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any of its Representatives, on the other hand. Republic will keep Mesa reasonably informed of the status and terms, including with respect to any change in price or other material amendments, of any such Republic Acquisition Proposal or request. Republic shall promptly, and in any event within 24 hours, following a determination by its board of directors that a Republic Acquisition Proposal is a Republic Superior Proposal, notify Mesa of such determination. The delivery of such notice and the determination to so deliver such notice will not, by itself, constitute a Change of Republic Recommendation, as defined below.

However, if at any time on or after the date of the Merger Agreement until the earlier of the receipt of the approval of the Merger Agreement by Republic stockholders or earlier termination of the Merger Agreement in accordance with its terms, Republic receives an unsolicited bona fide written Republic Acquisition Proposal from a third party that was not the result of a breach of its obligation not to solicit pursuant to the Merger Agreement, and Republic's board of directors determines in good faith, after consultation with its financial advisor and outside legal counsel, that such Republic Acquisition Proposal constitutes or is reasonably expected to lead to a Republic Superior Proposal and that failure to take such actions would reasonably be expected to be inconsistent with Republic's board of director's exercise of fiduciary duties under Delaware law, Mesa may participate in discussions or negotiations with the third party making such Republic Acquisition Proposal regarding such proposal, and, subject to receiving an executed Acceptable Confidentiality Agreement from such third party, furnish information with respect to Republic or its subsidiaries to the third party making such Republic Acquisition Proposal pursuant to an executed Acceptable Confidentiality Agreement from such third party; provided that, Republic provides (i) written notice to Mesa of the determinations referenced above promptly (and in any event within 24 hours) (it being understood that the delivery of such notice and the determination to so deliver such notice shall not, by itself, constitute a Change of Republic Recommendation or constitute a breach of the Merger Agreement) and (ii) to Mesa in writing (or makes available) any information concerning Republic provided to such other third party which was not previously provided to Mesa or its Representatives prior to or substantially concurrently with the time that it is provided to such third party. Republic must deliver to Mesa a copy of any executed Acceptable Confidentiality Agreement promptly (and in any event within 24 hours) following its execution.

#### Change of Republic Recommendation
From the date of the Merger Agreement through the earlier of the Effective Time and the termination of the Merger Agreement in accordance with its terms, Republic, the Republic board of directors or any committee thereof is required not, or not to publicly propose, to (i) withhold, withdraw, modify or qualify, in each case in a manner adverse to Mesa, the Republic Recommendation (ii) fail to include the Republic Recommendation in the official and final set of written materials submitted to the stockholder of Republic soliciting their written consents, (iii) publicly approve, publicly recommend, or publicly declare advisable any Republic Acquisition Proposal, (iv) submit any Republic Acquisition Proposal or any matter related thereto to the vote of the Republic stockholders, (v) following the public disclosure of any Republic Acquisition Proposal, fail to publicly reaffirm the Republic Recommendation as promptly as reasonably practicable (but in any event within three business days) after receipt of any written request to do so from Mesa, or (vi) authorize, commit, resolve, or agree, in each case in a legally binding manner, to take any such actions (each of the actions described in (i) through (vi) being referred to as a Change of Republic Recommendation).

Notwithstanding the above, if Republic has received a bona fide written Republic Acquisition Proposal from a third party that did not result from a breach of the Merger Agreement and the Republic board of directors determines in good faith, after consultation with its financial advisor and outside legal counsel, as applicable, that a Republic Acquisition Proposal constitutes a Republic Superior Proposal, taking into account the results of any negotiations with Mesa as contemplated by the Merger Agreement and any offer from Mesa contemplated by the Merger Agreement and that a failure to make a Change of Republic Recommendation or cause Republic to enter into a Republic Alternative Acquisition Agreement with respect to such Republic Superior Proposal would reasonably be expected to be inconsistent with its exercise of its fiduciary duties under Delaware law, then the Republic board of directors may prior to the time the Republic stockholder approval is obtained, effect a Change

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of Republic Recommendation or terminate the Merger Agreement to enter into a Republic Alternative Acquisition Agreement with respect to such Republic Superior Proposal; provided, however, that Republic may not terminate the Merger Agreement, unless it concurrently pays the required termination fee and the Republic board of directors may not effect a Change of Republic Recommendation or terminate the Merger Agreement and any purported termination pursuant to the Merger Agreement will be void and of no force or effect unless, (i) Republic has given Mesa at least four business days' prior written notice of its intention to take such action (referred to as the Republic Notice Period) (it being understood, for all purposes of the Merger Agreement, that the delivery of such notice and any amendment or update thereto and the deliberation and determination to so deliver such notice, update or amendment will not, by themselves, constitute a Change of Republic Recommendation), which notice will specify the material terms and conditions of such Republic Superior Proposal including information and documentation relating to such Republic Superior Proposal and Republic has contemporaneously provided to Mesa a copy of all relevant proposed transaction agreements with the third party making such Republic Superior Proposal; (ii) before effecting such a Change of Republic Recommendation or terminating the Merger Agreement to enter into a Republic Alternative Acquisition Agreement with respect to such Republic Superior Proposal, Republic has negotiated in good faith with Mesa during the Republic Notice Period to the extent Mesa wishes to negotiate, to make such adjustments in the terms and conditions of the Merger Agreement such that it would cause such proposal to no longer constitute a Republic Superior Proposal; in the event of any material revisions to such Republic Superior Proposal, Republic must deliver a new written notice to Mesa and to comply with the requirements of the Merger Agreement with respect to such new written notice, with the Republic Notice Period for any subsequent notice shortened from four to two business days; (iii) Mesa has not, during the Republic Notice Period, made an offer to modify the terms and conditions of the Merger Agreement, set forth in a definitive written amendment to this Agreement delivered to Republic and executed on behalf of Mesa, that the Republic board of directors has in good faith determined, after consultation with its outside legal counsel and financial advisor, would obviate the need for it to effect such a Change of Republic Recommendation or terminate the Merger Agreement; and (iv) the Republic Notice Period (and any extension thereof) has expired.

Notwithstanding the above, prior to the time Republic stockholder approval is obtained, the Republic board of directors may make a Change of Republic Recommendation in response to a Republic Intervening Event if it has determined in good faith, after consultation with its outside legal counsel, that, in light of such Republic Intervening Event and taking into account the results of any negotiations with Mesa as contemplated by clause (ii) below and any offer from Mesa contemplated by clause (iii) below, the failure to take such action would reasonably be expected to be inconsistent with its exercise of its fiduciary duties under Delaware law; provided, however, that the Republic board of directors may not make a Change of Republic Recommendation pursuant to the foregoing unless: (i) Republic has given Mesa at least four business days' prior written notice in advance of its intention to take such action (referred to as the Republic Intervening Event Notice Period) (it being understood, for all purposes of the Merger Agreement, that the delivery of such notice, update, or amendment and the deliberation and determination to so deliver such notice, update, or amendment shall not, by themselves, constitute a Change of Republic Recommendation, including the reason for proposing to effect such Change of Republic Recommendation and detail regarding the Republic Intervening Event; (ii) before effecting such Change of Republic Recommendation, Republic has negotiated in good faith with Mesa during the Republic Intervening Event Notice Period to the extent Mesa wishes to negotiate, to make such adjustments in the terms and conditions of the Merger Agreement such that it would obviate the need for the Republic board of directors to effects such a Change of Republic Recommendation; (iii) Mesa has not, during the Republic Intervening Event Notice Period, made an offer to modify the terms and conditions of the Merger Agreement, set forth in a definitive written amendment to the Merger Agreement delivered to Republic and executed on behalf of Mesa, that the Republic board of directors has in good faith determined, after consultation with its outside legal counsel and financial advisor, would obviate the need for it to effect such a Change of Republic Recommendation; and (iv) the Republic Intervening Event Notice Period has expired.

Pursuant to the Merger Agreement, Republic agrees that if (i) any of its subsidiaries, directors, or officers take any action or (ii) Republic authorizes or directs any of its other Representatives to take an action, or it is

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made aware of an action by one of its other Representatives and does not use its reasonable best efforts to prohibit or terminate such action, and the actions in clauses (i) and (ii) would constitute a breach of the Merger Agreement if taken by Republic, then such action will be deemed to constitute a breach of the Merger Agreement by Republic.

#### Directors and Officers of the Surviving Corporation Following the Merger
Pursuant to the Merger Agreement, each of the directors and officers of Mesa will resign effective as of the Effective Time and the Surviving Corporations' board of directors will thereafter consist of a total of seven new directors, composed of (i) six directors who prior to the Effective Time are designated by Republic, including a chairman of the Surviving Corporation's board of directors who prior to the Effective Time is, designated by Republic and (ii) Ellen Artist, or such other director proposed by Mesa prior to the Effective Time and agreed upon by Republic in its sole discretion prior to the Effective Time. Ms. Artist is currently a director of Mesa. Republic has designated David Grizzle, Glenn S. Johnson, Michael C. Lenz, Ruth Okediji, Barry W. Ridings, and James E. Sweetnam to serve as members of the Surviving Corporation's board of directors.

In addition, upon the Effective Time, David Grizzle will serve as Chief Executive Officer pursuant to a Transitional CEO Agreement, Matthew J. Koscal will serve as President and Chief Commercial Officer, Joseph P. Allman will serve as Senior Vice President and Chief Financial Officer, Paul Kinstedt will serve as Senior Vice President and Chief Operating Officer, and Chad M. Pulley will serve as Senior Vice President, General Counsel and Secretary, each designated by Republic.

#### Conditions to the Completion of the Merger
The following contains a description of the material conditions to the completion of the Merger.

Each party's obligations to complete the transactions contemplated by the Merger Agreement are subject to the satisfaction or, to the extent permitted by applicable law, the written waiver, at or prior to the Closing, of various conditions, which include the following:

• the Republic Stockholder Approval (as of the date of this proxy statement/prospectus, Republic has obtained sufficient consents to approve the adoption of the Merger Agreement and approve the transactions contemplated thereby);

• the Mesa Stockholder Approval;

• the waiting period applicable to the consummation of the Merger under the HSR Act (and any timing agreement with any governmental entity to toll, stay, or extend any such waiting period, or to delay or not to consummate the Merger contemplated by the Merger Agreement entered into in connection therewith) must have expired or been terminated. The waiting period under the HSR Act with respect to filings made by Mesa and Republic expired on June 16, 2025;

• the registration statement on Form S-4/S-1, of which this proxy statement/prospectus is a part, must have been declared effective by the SEC in accordance with the Securities Act and must not be subject to any stop order suspending the effectiveness of the Form S-4/S-1 issued by the SEC or any proceeding seeking a stop order;

• the shares of Mesa common stock issuable in the Merger must have been approved for listing on Nasdaq;

• no law or order (whether temporary, preliminary or permanent), has been enacted, issued, promulgated, enforced, or entered by a governmental entity that, in each case, is then in effect and has the effect of making illegal, enjoining, or otherwise restraining or prohibiting the consummation of the transactions contemplated by the Merger Agreement; and

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• the parties must have (i) received all of the approvals necessary to be obtained from the DOT, the FAA, the FCC, the TSA, and foreign CAA to consummate the Merger; and (ii) provided notification to, and received all of the approvals necessary to be obtained from, the AFAC regarding transfer of control and the receipt of official confirmation issued by the AFAC taking note of the transfer of control resulting from the Merger.

In addition, each party's obligations to complete the transactions contemplated by the Merger Agreement are further subject to the satisfaction or written waiver by that party at or prior to the Closing of the following additional conditions:

• the other party's representations and warranties being true and correct as of the date of the Merger Agreement and/or as of Closing Date, as applicable and set forth in the Merger Agreement, subject to applicable materiality qualifiers;

• the other party to the Merger Agreement must have performed and complied with in all material respects with the covenants required to be performed or complied with by it under the Merger Agreement at or prior to the Closing;

• the lack of a material adverse effect, as set forth in the Merger Agreement, since the date of the Merger Agreement with respect to the other party; and

• the party having received a certificate executed by an executive officer of the other party, dated as of the Closing Date, certifying that the foregoing conditions have been satisfied.

In addition, the obligations of Republic to complete the transactions contemplated by the Merger Agreement are further subject to the satisfaction or written waiver by that party at or prior to the Closing of the following additional conditions:

• the lack of an individual, entity or group beneficially owning 30% or more of the issued and outstanding shares of common stock of the Surviving Corporation, immediately after giving effect to issuance of shares of Mesa common stock in the Merger and the Escrow Issuance;

• (i) Certain transactions contemplated in the Three Party Agreement, as specified in the Merger Agreement, having been consummated (in each case, except for those transactions to be consummated at the Closing, but subject to the consummation of such transactions at the Closing); (ii) each of the parties to the Three Party Agreement other than Republic not having materially breached any of its representations, warranties, covenants, or agreements contained in the Three Party Agreement; (iii) United Airlines not having provided Mesa or Republic with written notice of its intent not to perform or comply with any of the post-Closing terms or conditions under the Three Party Agreement; and (iv) Republic having received a certificate executed by an executive officer of United Airlines, dated as of the Closing Date, making certain certifications, as specified in the Merger Agreement;

• (i) United Airlines not having materially breached any of its representations, warranties, covenants, or agreements contained in the CPA Side Letter; and (ii) United Airlines not having provided Mesa or Republic with written notice of its intent not to perform or comply with any of the terms or conditions under the Go-Forward CPA.

• Mesa having filed with the SEC and made publicly available on EDGAR its Form 10-K for the period ended September 30, 2024 and including therein its consolidated audited financial statements for the applicable period and copy of the report of Marcum LLP ("Marcum") to the Mesa board of directors related to its audit of such financial statements, as specified in the Merger Agreement; and

• Mesa having filed with the SEC and made publicly available on EDGAR its Form 10-Q for the period ended December 31, 2024 and including therein its consolidated unaudited financial statements for the applicable period, as specified in the Merger Agreement;

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#### Termination and Termination Fees

#### Termination of the Merger Agreement
The Merger Agreement may be terminated, and the Merger may be abandoned, by action taken or authorized by the board of directors of the terminating party, whether before or (except as provided below) after the required stockholder approvals to complete the Merger have been obtained, as set forth below:

(i) by mutual written consent of Mesa and Republic;

(ii) by either Mesa or Republic, if any court of competent jurisdiction or other governmental entity has issued an order or law permanently enjoining or otherwise permanently prohibiting the consummation of the transactions contemplated by the Merger Agreement, which order or law has become final and non-appealable;

(iii) by either Mesa or Republic, if, subject to specified exceptions, the Effective Time has not occurred by the Outside Date; *provided*, that if as of the Outside Date, certain of the specified conditions in the Merger Agreement have not have been satisfied, then the Outside Date will automatically be extended to April 6, 2026, and such extended date will be deemed to be the Outside Date, provided, however, that the right to terminate the Merger Agreement pursuant to this provision shall not be available to any party whose failure to fulfill any covenants or agreements under the Merger Agreement has been the principal cause of, or resulted in, the failure of the Effective Time to occur on or before such date;

(iv) by either Mesa or Republic, if the Mesa Stockholder Approval has not been obtained at the Mesa Special Meeting, including at any adjournment, postponement, or delay thereof, at which a vote on such adoption was taken;

(v) by either Mesa or Republic, if the Republic Stockholder Approval has not been obtained by the time of the completion of the Mesa Special Meeting including at any adjournment, postponement, or delay thereof, at which a vote on such adoption was taken;

(vi) by Mesa, if any of the following circumstances shall occur:

(a) subject to specified exceptions, (i) there is a breach of any representation, warranty, covenant, or agreement of Republic contained in the Merger Agreement such that certain specified conditions to Mesa's obligations would not be satisfied were the Closing then to occur, (ii) Mesa has delivered to Republic written notice of such breach and (iii) either such breach is not capable of being cured or, if curable, has not been cured prior to the earlier of (x) the Outside Date and (y) the 20th day following the delivery of such written notice to Republic, provided, however, that Mesa will not be permitted to terminate the Merger Agreement pursuant to this provision if any representation, warranty, covenant, or agreement of Mesa contained in the Merger Agreement has been breached such that certain specified conditions are not then satisfied;

(b) prior to obtaining the Mesa Stockholder Approval, in order to concurrently enter into an alternative acquisition agreement with respect to a superior proposal as provided in the Merger Agreement (provided, that prior to or concurrently with such termination Mesa pay Republic the Termination Fee under the Merger Agreement and Mesa shall not have materially breached Section 5.4 of the Merger Agreement in respect of the underlying Mesa Acquisition Proposal); or

(c) prior to the time the Republic Stockholder Approval is obtained, the Republic board of directors or any committee thereof shall have effected a change of recommendation;

(vii) by Republic, if any of the following circumstances shall occur:

(a) subject to specified exceptions, (i) there is a breach of any representation, warranty, covenant, or agreement of Mesa contained in the Merger Agreement such that certain specified conditions to Republic's obligations would not be satisfied were the Closing then to occur, (ii) Republic has delivered to Mesa written notice of such breach and (iii) either such breach is not capable of being

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cured or, if curable, has not been cured prior to the earlier of (x) the Outside Date and (y) the 20th day following the delivery of such written notice to Mesa, provided, however, that Republic will not be permitted to terminate the Merger Agreement pursuant to this section if any representation, warranty, covenant, or agreement of Republic contained in the Merger Agreement has been breached such that certain specified conditions are not then satisfied;

(b) prior to obtaining the Republic Stockholder Approval, in order to concurrently enter into an alternative acquisition agreement with respect to a superior proposal as provided in the Merger Agreement (provided, that prior to or concurrently with such termination Republic pay Mesa the Termination Fee under the Merger Agreement and Republic shall not have material breached Section 5.6 of the Merger Agreement in respect of the underlying Republic Acquisition Proposal) ;

(c) prior to the time the Mesa Stockholder Approval is obtained, the Mesa Board or any committee thereof shall have effected a change of recommendation;

(d) (i) there is a breach of any representation, warranty, covenant, or agreement of any party to the Three Party Agreement other than Republic contained in the Three Party Agreement such that certain specified conditions to Republic's obligations would not be satisfied were the Closing then to occur, (ii) Republic has delivered to Mesa and United Airlines written notice of such breach and (iii) either such breach is not capable of being cured or, if curable, has not been cured prior to the earlier of (x) the Outside Date and (y) the 20th day following the delivery of such written notice to Mesa and United Airlines;

(e) (i) there is a breach of any representation, warranty, covenant, or agreement of United Airlines contained in the CPA Side Letter such that certain specified conditions to Republic's obligations would not be satisfied were the Closing then to occur, (ii) Republic has delivered to United Airlines and Mesa written notice of such breach and (iii) either such breach is not capable of being cured or, if curable, has not been cured prior to the earlier of (x) the Outside Date and (y) the 20th day following the delivery of such written notice to United Airlines and Mesa;

(f) (i) United Airlines has provided Mesa or Republic with written notice of its intent not to perform or comply with any of the post-Closing terms or conditions under the Three Party Agreement and (ii) United Airlines does not retract such written notice prior to the earlier of (x) the Outside Date and (y) the 20th day following the delivery of United Airlines' initial written notice;

(g) (i) United Airlines has provided Mesa or Republic with written notice of its intent not to perform or comply with any of the terms or conditions under the Go-Forward CPA and (ii) United Airlines does not retract such written notice prior to the earlier of (x) the Outside Date and (y) the 20th day following the delivery of United Airlines' initial written notice;

(h) the Three Party Agreement is terminated in accordance with its terms; or

(i) following the 10 consecutive business day period immediately after finalization by the parties of the Form S-4/S-1 and related proxy statement, the Republic Stockholder Approval has not yet been obtained (assuming Republic has elected to utilize such period to solicit such approval); provided, however, that Republic may only exercise such termination right during the three business days following the expiration of such period and, if Republic has not exercised such termination right by the end of such three business day period, Republic shall deliver to Mesa a written waiver of such termination right as contemplated by Section 5.5 of the Merger Agreement.

#### Termination Fees Payable by Mesa
Mesa must pay Republic a termination fee of $1,500,000 (i) prior to or concurrent with the termination, if the Merger Agreement is terminated pursuant to clause (vi)(b) above; (ii) within two business days following the termination, if the Merger Agreement is terminated pursuant to clause (vii)(c) above; and (iii) prior to or concurrent with the consummation of an acquisition proposal by Mesa, as specified in the Merger Agreement, if

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(a) the Merger Agreement is terminated pursuant to clause (iv) above, (b) prior to the date of the Mesa Special Meeting including at any adjournment, postponement, or delay thereof, at which a vote was taken, an acquisition proposal by Mesa has been publicly announced and (c) within twelve months following the termination of the Merger Agreement, Mesa or any of its subsidiaries enter into a definitive agreement with respect to a subsequent transaction, or the Mesa board of directors has approved or recommended to the Mesa stockholders, any acquisition proposal that is later consummated (regardless of whether or not such consummation occurs prior to or following the end of such twelve month period). In addition to the fees associated with termination of the Merger Agreement, certain fees may be incurred by Mesa in connection with termination of the TPA. For a more complete discussion regarding termination of the TPA, please see the section titled "*Agreements Related to the Merger – The Three Party Agreement – Termination of the TPA*" beginning on page 177 of this proxy statement/prospectus.

Mesa may not be required to pay the termination fee on more than one occasion.

#### Termination Fees Payable by Republic
Republic must pay Mesa a termination fee of $1,500,000 (i) prior to or concurrent with the termination, if the Merger Agreement is terminated pursuant to clause (vii)(b) above; (ii) within two business days following the termination, if the Merger Agreement is terminated by Mesa pursuant to clause (vi)(c) above; and (iii) prior to or concurrent with the consummation of an acquisition proposal by Republic, as specified in the Merger Agreement, if (a) the Merger Agreement is terminated pursuant to clause (v) above, (b) prior to the date of the Mesa Special Meeting including at any adjournment, postponement or delay thereof, at which a vote was taken, an acquisition proposal by Republic has been publicly announced and (c) within twelve months following the termination of the Merger Agreement, Republic or any of its subsidiaries enter into a definitive agreement with respect to a subsequent transaction, or the Republic board of directors has approved or recommended to the Republic stockholders, any acquisition proposal that is later consummated (regardless of whether or not such consummation occurs prior to or following the end of such twelve month period). In addition to the fees associated with termination of the Merger Agreement, certain fees may be incurred by Republic in connection with termination of the TPA. For a more complete discussion regarding termination of the TPA, please see the section titled "*Agreements Related to the Merger – The Three Party Agreement – Termination of the TPA*" beginning on page 177 of this proxy statement/prospectus.

Republic may not be required to pay the termination fee on more than one occasion.

#### Amendment and Waiver
The Merger Agreement may be amended by the parties to the Merger Agreement by action taken by or on behalf of their respective boards of directors at any time prior to the Effective Time, whether before or after the approval of the Merger Agreement by either party's stockholders has been obtained; *provided*, that after approval of the Merger Agreement has been obtained by either party's stockholders, no amendment may be made that, pursuant to applicable law or in accordance with the rules of any relevant stock exchange, requires further approval by the stockholders of either party, without such further approval. The amendment must be set forth in writing and signed by the parties.

At any time prior to the Effective Time, either party may (i) extend the time for the performance of any of the obligations or other acts of the other party, (ii) waive any breaches in the representations and warranties of the other party contained in the Merger Agreement or in any document delivered pursuant to the Merger Agreement, and (iii) waive compliance by the other party with any of the agreements or conditions contained in the Merger Agreement. The waiver must be set forth in writing and signed by the party to be bound thereby. Any such extension or waiver or failure to insist on strict compliance with an obligation, covenant, agreement, or condition will not operate as a waiver of, or estoppel with respect to, any subsequent or other failure.

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#### Fees and Expenses
The Merger Agreement provides all fees and expenses incurred in connection with the Merger Agreement and the transactions contemplated thereby shall be paid by the party incurring such expenses, whether or not the Merger is consummated, except as described above in the section titled "*The Merger Agreement — Termination and Termination Fees*" beginning on page 161 of this proxy statement/prospectus, and except that all filing and other similar fees paid in respect of the filing of the pre-merger notification report under the HSR Act, DOT filings, and pursuant to other applicable Competition Laws, and fees in relation to the filings with the SEC of the registration statement on Form S-4/S-1 (excluding, for the avoidance of doubt, in each case, legal fees, and other advisor fees of the parties incurred in connection with the preparation and submission of such filings, which will be borne by the party that has engaged such advisors) will be paid entirely by Republic.

#### Mesa Representative
By approving the Merger Agreement, the holders of Mesa common stock irrevocably appoint the Mesa Representative as their representative, agent, proxy, and attorney-in-fact on behalf of such holder with respect to all matters arising under the Escrow Agreement, the Three-Party Agreement and such matters arising under the foregoing or related to the Escrow Asset and the distribution of the Escrow Asset. A decision, act, consent, or instruction of the Mesa Representative in accordance with its authorities granted under the Merger Agreement, the Escrow Agreement, or the Three Party Agreement will constitute a decision of the Pre-Merger Mesa Shareholders and will be final, binding, and conclusive upon such holders.

Promptly following the determination of the portion of the Escrow Asset payable to the Pre-Merger Mesa Shareholders, if any, and the delivery of the written instruction to the Exchange Agent pursuant to the Three Party Agreement, the Surviving Corporation, and the Mesa Representative will take the actions required to effect the distribution of the remaining Escrow Asset, if any, to the Pre-Merger Mesa Shareholders, in accordance with the terms and provisions of the Three Party Agreement and the Escrow Agreement.

At the Closing, Mesa will pay the Mesa Representative the Mesa Representative Expense Fund, which the Mesa Representative may use solely to perform its obligations under the Three Party Agreement. The Mesa Representative will not be liable for any act done or omitted, as Mesa Representative, pursuant to the Merger Agreement, the Escrow Agreement, or the Three Party Agreement, except for fraud, gross negligence, bad faith, or willful misconduct, and will be entitled to recover any expenses it incurred arising out of or in connection with the foregoing from amounts available in the Mesa Representative Expense Fund. Any amounts remaining in the Mesa Representative Expense Fund following the Mesa Representative's performance of its obligation under the Three Party Agreement will be remitted to United Airlines as provided in the Three Party Agreement.

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#### AGREEMENTS RELATED TO THE MERGER

#### The Three Party Agreement
*The following describes certain material terms of the Three Party Agreement. A copy of the Three Party Agreement is filed as Exhibit 10.15 to the registration statement of which this proxy statement/prospectus forms a part and is incorporated by reference into this proxy statement/prospectus. The Three Party Agreement has been attached to this proxy statement/prospectus to provide you with information regarding its terms. It is not intended to provide any other factual information about Mesa, Republic, or United Airlines. The following description does not purport to be complete and is qualified in its entirety by reference to the Three Party Agreement. You should refer to the full text of the Three Party Agreement for the terms and conditions of the Three Party Agreement. Any capitalized terms not otherwise defined in this proxy statement/prospectus have the meaning ascribed to them in the Three Party Agreement.* 

Concurrently with the execution of the Merger Agreement, on April 4, 2025, Mesa, Mesa Airlines, Inc. ("Mesa Airlines"), United Airlines, Republic, and the Mesa Representative (collectively, the "Parties") entered into the Three Party Agreement (the "TPA") pursuant to the terms of the Merger Agreement.

#### Disposition of Assets; Extinguishment of Liabilities
Pursuant to the TPA, Mesa will take certain actions at or prior to the Closing to dispose of certain assets, extinguish certain liabilities, and effectuate certain related transactions, including the following:

• Mesa will recognize the impairment losses of the CRJ Assets.

• At the Closing, Mesa will pay all outstanding fees owed to FTICA and all outstanding legal fees owed to its legal counsel due in connection with the TPA and the transactions contemplated by the TPA.

• At the Closing, if the Mesa Working Capital Surplus is in an amount greater than $0, then Mesa will use all its cash and cash equivalents (other than the Mesa Representative Expense Fund) to pay off, retire, or otherwise extinguish all of the Mesa Obligations until such time as the earlier to occur of (x) the Mesa Working Capital Surplus, after giving effect to the foregoing, is an amount equal to $0 and (y) the extinguishment of all cash and cash equivalents (other than the Mesa Representative Expense Fund). Any remaining cash or cash equivalents will then be applied against any United Debt.

• At the Closing, Mesa will pay to the Mesa Representative an amount equal to $100,000, which will form the Mesa Representative Expense Fund. The Mesa Representative will utilize the Mesa Representative Expense Fund solely to perform its obligations under the TPA, with the Mesa Representative Expense Fund Remainder to be remitted to United Airlines.

• For Mesa Obligations that remain after Mesa uses all its cash and cash equivalents to pay off, retire, or otherwise extinguish all of the Mesa Obligations, United Airlines will have the option, as to each remaining Mesa Obligation as of the Closing, to (i) repay such obligation in full on behalf of Mesa (other than in respect of any indemnification obligations that survive termination and/or any intercompany loans by and among Mesa and its subsidiaries), (ii) assume such obligation in full from Mesa, if permitted by the terms of the applicable Mesa Obligation, or (iii) pay to the Surviving Corporation cash in an amount sufficient for the Surviving Corporation to fully extinguish such obligation (other than in respect of any indemnification obligations that survive termination and/or any intercompany loans by and among Mesa and its subsidiaries). However, for certain Mesa Obligations (including the Mesa Working Capital Shortfall, the UST Loan, the Executive Compensation Amount, and any other equipment, property, or Indebtedness obligations or payables (whether or not aged), in each case to the extent reflected on Mesa's trial balance, (a) United Airlines will act to extinguish such obligation pursuant to clause (iii) of the preceding sentence and (b) United Airlines' obligations will be reduced on a dollar for dollar basis by the aggregate Non-Eligible Asset Credit and the Working Capital

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Surplus; United Airlines may elect, at its sole discretion, which portion of Mesa Obligations will be reduced on a dollar for dollar basis pursuant to the foregoing provision. For the avoidance of doubt, with respect to Mesa Obligations related to the Mesa Working Capital Shortfall, United Airlines will be deemed to have satisfied its obligations by paying to the Surviving Corporation an amount of cash equal to the Mesa Working Capital Shortfall. <br>

• United Airlines' obligation to extinguish the Mesa Obligations at the Closing is contingent upon Mesa's delivery to United Airlines of payoff letters (to the extent reasonably available following Mesa's use of reasonable best efforts to obtain such payoff letters) from the applicable lenders with respect to all pre-Closing Mesa Obligations, along with necessary documents to release any liens, no later than five business days before the Closing.

#### The Escrow Issuance
Promptly following the Closing (and in all events immediately following the Effective Time), Mesa will conduct the Escrow Issuance equal to six percent (6%) of the issued and outstanding shares of common stock of the Surviving Corporation after giving effect to the issuance of Mesa common stock in the Merger and such issuance. The Escrow Agent will hold the Escrow Assets in escrow, and will subsequently become available to satisfy certain remaining liabilities. The Escrow Agent will distribute the Escrow Assets in order of priority, first to United Airlines, then to the Surviving Corporation, and finally to the Pre-Merger Mesa Shareholders based on the Net Debt Amount. First, if the Net Debt Amount remains a positive number as of the Closing, United Airlines will receive shares with an aggregate dollar value equal to the Net Debt Amount. If there are Escrow Assets remaining after the United Entitlement has been satisfied, and if further post-Closing adjustments (such as unresolved obligations related to the joint venture with Flite) entitle the Surviving Corporation to Escrow Assets, the Surviving Corporation will receive Escrow Assets equal to the amount of such entitlement. Any Escrow Assets remaining after the United Entitlement and the Surviving Corporation Entitlement are each satisfied, will then be distributed to the Pre-Merger Mesa Shareholders on a pro rata basis, with any fractional shares paid out in cash.

#### Termination of the Mesa Capacity and Purchase Agreement
Pursuant to the TPA, Mesa and United Airlines will terminate the United CPA, effective as of the Closing. Mesa and United Airlines have delivered releases in connection with the termination, effective as of the Closing, of the United CPA. At the Closing, Mesa and United Airlines will provide reasonable evidence to Republic of the termination of the United CPA.

The Surviving Corporation will use good faith efforts to perform or cooperate with respect to any Mesa or Mesa Airlines obligations under the United CPA, in each case to the extent (a) such obligations arise in the normal course of business following the termination due to the actions or inactions of Mesa or Mesa Airlines prior to the termination and (b) such performance or cooperation would not require the Surviving Corporation to incur more than *de minimis* out-of-pocket costs.

For 180 days following the Closing (and the termination of the United CPA at the Closing), United Airlines will continue to reimburse the Surviving corporation for any and all Pass-Through Costs (as defined in the United CPA) incurred by Mesa and its Affiliates prior to the termination to the extent United Airlines would otherwise be obligated to reimburse such costs had the United CPA not been terminated (but subject in all events to applicable dispute resolution and audit provisions set forth in the United CPA). However, the preceding sentence shall not apply to costs that have been paid off, released, or extinguished as described above.

#### Mesa's Delivery of Proposed Final Closing Statement and United Airlines' and the Surviving Corporation's Responses
Mesa and Republic must keep United Airlines reasonably informed about the anticipated timeline for the Closing. No later than 21 days following the end of the first completed calendar month following the date of the

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TPA and each month thereafter, Mesa is required to deliver to United Airlines and Republic a draft of Appendix C to the TPA, calculated as of the end of such calendar month. Mesa will cooperate reasonably and in good faith with United Airlines and Republic (including making personnel, records, and Supporting Documentation reasonably available) to answer any questions and to provide additional information as to its financial reports, Supporting Documentation, and any and all assumptions and components relevant to the foregoing.

*Proposed Final Closing Statement* 

By no later than 10 Business Days prior to the Closing Date (the "Proposed Final Closing Statement Deadline"), Mesa is required to deliver to United Airlines and Republic a statement (the "Proposed Final Closing Statement") setting forth, in reasonable detail, Mesa's good faith calculation, as of the end of the Closing Date, of the estimated Net Debt Amount (such calculation, the "Proposed Estimated Net Debt Amount"), together with Supporting Documentation (including the updated Mesa trial balance contemplated by such defined term) relating thereto, including any assumptions made with respect to valuations of assets and resulting proceeds from the sale of such assets; *provided* that the Proposed Estimated Net Debt Amount shall be determined in the format of, and in accordance with the methodology set forth in, Appendix C of the TPA and the Asset Valuation Methodology. Mesa shall at all times cooperate reasonably and in good faith with United Airlines and Republic (including making personnel, records, and Supporting Documentation reasonably available) to answer any questions and to provide additional information to United Airlines as to any and all assumptions and components relevant to the Proposed Final Closing Statement, including as needed to update or adjust the Proposed Final Closing Statement.

*United Airlines and Republic Response to Proposed Final Closing Statement* 

Within five days after United Airlines and Republic receive the Proposed Final Closing Statement and all required documentation (the "Pre-Closing Dispute Period"), each of United Airlines and Republic independently has the right to submit a written notice (a "Pre-Closing Dispute Notice") to the other Parties if they object to any of Mesa's calculations that would change the Net Debt Amount by at least $1,000,000 in the aggregate (either upwards or downwards). Each Pre-Closing Dispute Notice must specify in reasonable detail the disputed amount, the basis for the objection, and include reasonable supporting materials. During the Pre-Closing Dispute Period, Mesa must make available to United Airlines and Republic, at Mesa's sole cost, all relevant books, records, and accounting personnel as reasonably requested. If neither United Airlines nor Republic delivers a Pre-Closing Dispute Notice before the end of the Pre-Closing Dispute Period, then the Proposed Final Closing Statement is deemed accepted and agreed to by both United Airlines and Republic (becoming the "Final Closing Statement"), and Mesa's calculation of the Proposed Estimated Net Debt Amount becomes the final and binding Net Debt Amount for all purposes, subject to further adjustments as provided in Sections 1.7(g), (h), (i), and (j) of the TPA.

*Efforts to Resolve Pre-Closing Disputes Among the Parties* 

If either United Airlines or Republic timely delivers a Pre-Closing Dispute Notice, then for a period of 14 days following such delivery date (or, if each of United Airlines and Republic timely delivers a Pre-Closing Dispute Notice, then for a period of 14 days following the later of the two delivery dates) (such period, as applicable, the "Pre-Closing Resolution Period"), the Parties shall use commercially reasonable efforts (including Mesa making its personnel and records reasonably available to United Airlines and Republic) to amicably resolve the Pre-Closing Disputed Items and determine the Final Closing Statement and the Net Debt Amount. Any Pre-Closing Disputed Items so resolved by the Parties shall be deemed to be final and correct as so resolved and shall be binding upon the Parties for all purposes of Section 1.7 and Section 5.1(b)(i) of the TPA, subject to Sections 1.7(g), (h), (i), and (j) of the TPA.

*Resolution of Pre-Closing Disputes by Independent Valuation Firm* 

If the Parties cannot resolve all of the Pre-Closing Disputed items within the Pre-Closing Resolution Period, the remaining items will be referred to an Independent Valuation Firm mutually agreed upon by the Parties.

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Within five days of the Pre-Closing Engagement Date, each Party must submit a written position statement, and within 15 days, the Independent Valuation Firm must select one Party's calculation of the Net Debt Amount and provide a report specifying its final determination of the Net Debt Amount along with reasonable supporting detail. This determination will be final, conclusive, and binding, and the costs will be shared by the two Parties whose proposals are not selected.

*Pre-Closing Updates to Net Debt Amount* 

If, before the Closing, any Party discovers that the finally determined Net Debt Amount is incorrect in an amount greater than $1,000,000 (either upwards or downwards) due to issues first discovered following the Net Debt Amount Final Determination Date, they must promptly notify the other Parties of the required adjustment to the finally determined Net Debt Amount, together with reasonable detail about such issues and Supporting Documentation (a "Net Debt Amount Adjustment Notice"). A Party who received a Net Debt Amount Adjustment Notice will have five days to agree or object in writing. If no objection is made or if the receiving Party does not respond with written notice within such timeframe, the adjustment is deemed accepted and will be incorporated into the Net Debt Amount. If a Party submits a timely objection, the Parties will have 14 days (the "Net Debt Amount Adjustment Resolution Period") to use commercially reasonable efforts to resolve the issues raised in the Net Debt Amount Adjustment Notice amicably. Upon any written agreement executed by all Parties as to a Net Debt Amount Adjustment Notice, the agreed items in such Net Debt Amount Adjustment Notice shall be deemed incorporated into the finally determined Net Debt Amount for all purposes of this Agreement.

*Resolution of Pre-Closing Updates to Net Debt Amount* 

If the Parties cannot agree on the updates set forth in the Net Debt Amount Adjustment Notice during the Adjustment Resolution Period, the disputed items will be referred to an Independent Valuation Firm. Each Party will be required to submits a written position statement, and within 15 days, the Independent Valuation Firm must select one Party's calculation of the Net Debt Amount. This determination will be final, conclusive, and binding, and the costs will be shared by the two Parties whose proposals are not selected.

*Closing Conditional Upon Net Debt Amount Determination and Registration Rights Agreement and Other Shareholder Rights* 

The Closing is conditioned upon, among other things, (i) the final determination of the Net Debt Amount, (ii) the agreement or final resolution by all Parties as to any adjustment to the Net Debt Amount submitted pursuant to a Net Debt Amount Adjustment Notice, except that, solely in the case of this clause (ii), the Closing may occur without the prior agreement by United Airlines as to any Net Debt Amount Adjustment Notice submitted by Mesa or Republic to which United Airlines timely objects pursuant to Section 1.7(g) of the TPA so long as the Net Debt Amount is not adjusted in any manner by such Net Debt Amount Adjustment Notice, and (iii) the Surviving Corporation entering into the Registration Rights Agreement with the Major Stockholders and granting the Major Stockholders, including United Airlines and the other shareholder rights, if any, required to be granted by Section 6.17(b) of the TPA. If the Closing occurs without each of such conditions being satisfied or without United Airlines' express written waiver as to any of such conditions that have not been satisfied, then, notwithstanding anything to the contrary in the TPA, United Airlines shall not be obligated to consummate its obligations until, as to each such condition, either such condition is satisfied in full or United Airlines' express written waiver is obtained; provided however that if, within 30 days following the Closing, each such condition has not either been satisfied or expressly waived by United Airlines in writing (such circumstance, the "United Conditions Precedent Failure"), then United Airlines' obligations arising under the TPA shall be deemed null and void.

*Post-Closing Settlement of CPA Reconciliation Amount and Mesa Performance Credit Amount* 

Within 60 days after the Closing (such period, the "Post-Closing Reconciliation and Credit Dispute Period"), United Airlines may object in writing to the calculation of the CPA Reconciliation Amount or the Mesa

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Performance Credit Amount. If United Airlines does not deliver a Post-Closing Reconciliation and Credit Dispute Notice to the Mesa Representative and the other Parties prior to the expiration of the Post-Closing Reconciliation and Credit Dispute Period, then the CPA Reconciliation Amount and the Mesa Performance Credit Amount will be final and binding upon the parties. If United Airlines objects by timely delivering a Post-Closing Reconciliation and Credit Dispute Notice, then United Airlines and the Mesa Representative will have 10 days (the "Post-Closing Resolution Period") to use commercially reasonable efforts to resolve the Post-Closing Reconciliation and Credit Disputed Items and determine the CPA Reconciliation Amount or the Mesa Performance Credit Amount, as applicable. Any Post-Closing Reconciliation and Credit Disputed Items so resolved by United Airlines and the Mesa Representative will be deemed to be final and correct as so resolved and shall be binding upon the Parties, and the Net Debt Amount shall be adjusted accordingly. If unresolved, the matter will be referred to an Independent Valuation Firm, which will select either United Airlines' or the Mesa Representative's calculation within 15 days. The decision will be final and binding, and the costs will be borne solely by the Party whose proposal was not selected.

*Post-Closing Review of Net Debt Amount as to the Surviving Corporation* 

By no later than 60 days following the Closing Date (such period, the "Post-Closing Surviving Corporation Dispute Period"), the Surviving Corporation may give the Mesa Representative written notice of its disagreement with the Net Debt Amount (as adjusted pursuant to any finally determined adjustments pursuant to all applicable provisions in Section 1.7 of the TPA, but excluding from the calculation of Net Debt Amount the Surviving Corporation Excluded Items) as to applicable liabilities that are or would be considered Mesa Obligations as of the Closing as to issues that were both (x) first discovered following the Closing and (y) not addressed in the Net Debt Amount (as adjusted pursuant to any finally determined adjustments pursuant to all applicable provisions in Section 1.7 of the TPA, but excluding from the calculation of Net Debt Amount the Surviving Corporation Excluded Items) (such written notice, the "Post-Closing Surviving Corporation Dispute Notice"). However, the Surviving Corporation shall specify in reasonable detail the amount in dispute and the basis therefore, together with reasonable supporting materials. If the Surviving Corporation does not deliver a Post-Closing Surviving Corporation Dispute Notice to the Mesa Representative prior to the expiration of the Post-Closing Surviving Corporation Dispute Period, then the Net Debt Amount (as adjusted pursuant to any finally agreed adjustments pursuant to all applicable provisions in Section 1.7 of the TPA, but excluding from the calculation of Net Debt Amount the Surviving Corporation Excluded Items) shall be deemed to be the Net Debt Amount, and shall be final and binding upon the Parties.

*Efforts to Resolve Post-Closing Disputes Among the Surviving Corporation and Mesa Representative* 

If the Surviving Corporation delivers a Post-Closing Surviving Corporation Dispute Notice, the Surviving Corporation and the Mesa Representative will have 10 days to use commercially reasonable efforts to amicably resolve the disputed items and determine the Net Debt Amount (excluding from the calculation of Net Debt Amount the Surviving Corporation Excluded Items). Any items so resolved will become final and binding on the Parties.

*Resolution of Post-Closing Disputes by Independent Valuation Firm* 

If the Surviving Corporation and the Mesa Representative cannot resolve all disputed items, the remaining items will be referred to an Independent Valuation Firm. Each Party must submit a written position statement, and within 15 days, the Independent Valuation Firm must select either the Surviving Corporation's or the Mesa Representative's calculation of the Net Debt Amount (excluding the Surviving Corporation Excluded Items). The Independent Valuation Firm's decision will be final and binding, and the costs will be borne by the non-prevailing Party.

*Certain Material Breaches* 

Mesa's failure to provide any of the material books and records referenced in Section 1.7 of the TPA or to timely deliver the Proposed Final Closing Statement, to the extent not cured within 10 days of written notice from

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United Airlines, shall constitute a material breach of the TPA giving United Airlines a right to terminate the TPA. If United Airlines elects not to terminate the TPA, United Airlines Obligations under Section 1.4 of the TPA will be delayed on a day-for-day basis until the following conditions have been satisfied: (x) such material breach has been cured and (y) the provisions in Section 1.7(a) through (j) (including associated time periods, including as needed to resolve any disputes) have been complied with following the date of such material breach.

#### The U.S. Treasury Loan
From the date of the execution of the TPA to no later than the Proposed Final Closing Statement Deadline, Mesa will be permitted to negotiate with the United States Department of the Treasury (the "Treasury") and to enter into a binding, definitive agreement with the Treasury to reduce the amounts due under the UST Loan. All other amendments, modifications, waivers, or changes under the UST Loan than those that solely provide for a reduction in the amounts due will require the consent of each of United Airlines and Republic. Mesa's actions with respect to the foregoing (pursuant to Section 1.8 of the TPA) will not delay the Closing, notwithstanding anything to the contrary in the TPA.

#### The Archer Agreements
Mesa, Mesa Airlines, and United Airlines are parties to several agreements with Archer Aviation Inc. (such agreements, the "Archer Agreements," as defined in the TPA). Mesa is required to use reasonable best efforts to sell, assign, or transfer all obligations, liabilities, duties, rights, and similar undertakings under the Archer Agreements to one or more third parties (excluding any "related person" of Mesa or its Affiliates, except United Airlines and its Affiliates). This transfer must be completed as promptly as reasonably practicable following the date of the TPA and in any event before the Archer Deadline. The transfer must ensure that Mesa and its Affiliates have no further obligations under the Archer Agreements. The definitive transaction documentation must be presented to Republic in final form before execution and approved by Republic. Mesa is allowed to retain the Certification Archer Warrants beyond the Archer Deadline and sell them before the Proposed Final Closing Statement Deadline, provided there are no further obligations for Mesa or its Affiliates. United Airlines is expected to use commercially reasonable efforts to facilitate the disposition of the Archer Rights and Obligations but is not required to incur out-of-pocket expenditures. If Mesa breaches this obligation by selling only part of the Archer Rights and Obligations, it must remit all proceeds from such dispositions to United Airlines, except for proceeds from the sale of Certification Archer Warrants, which can be used to satisfy Mesa Obligations before the Closing.

If Mesa has not disposed of all Archer Rights and Obligations by the Archer Deadline (excluding Certification Archer Warrants), Mesa and United Airlines will use commercially reasonable efforts to either terminate the remaining Archer Rights and Obligations or have United Airlines assume them. This must be done as promptly as reasonably practicable following the Archer Deadline and no later than 30 days after the Archer Deadline, or July 3, 2025. The termination or assumption must ensure that Mesa and its Affiliates have no further obligations under the Archer Agreements. The definitive transaction documentation must be presented to Republic in final form before execution and approved by Republic. No additional consideration is required between Mesa and United Airlines for such assumption. For Certification Archer Warrants, the same terms apply, but the deadlines are adjusted to the Proposed Final Closing Statement Deadline and five days after that deadline, respectively.

Mesa and its Affiliates are prohibited from entering into new contracts with Archer or its Affiliates or amending the existing Archer Agreements without the prior written consent of United Airlines and Republic. However, Mesa may amend the Certification Archer Warrants without United Airlines' and Republic's prior consent solely to accelerate vesting of such warrants, provided it notifies United Airlines and Republic with advance notice of the execution and delivery of such agreement together with a copy of the agreement.

From and after the Closing, United Airlines will indemnify, defend, and hold harmless the Surviving Corporation and its Affiliates from all losses arising from the failure to satisfy the Archer Condition or any

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United Triggering Event. This includes any obligation to purchase aircraft or make expenditures related to the Archer Rights and Obligations. The Surviving Corporation and United Airlines will use commercially reasonable efforts to satisfy the Archer Condition post-Closing. If the Surviving Corporation purchases aircraft under the Archer Rights and Obligations, it will transfer them to United Airlines for no additional consideration or provide United Airlines with exclusive use until the transfer can be effected. United Airlines will indemnify the Surviving Corporation for reasonable costs incurred in these actions.

On July 9, 2025, Mesa assigned, and United Airlines assumed, the Archer Rights and Obligations (excluding the Certification Archer Warrants).

In early August 2025, Mesa commenced the process for transferring the Certification Archer Warrants into an escrow for the benefit of the Pre-Closing Mesa Shareholders. In the event the Certification Archer Warrants vest after the Closing, the Certification Archer Warrants will be exercised, the underlying shares of Archer common stock will be sold in due course, and the proceeds from such sale will be distributed to the Pre-Closing Mesa Shareholders by the applicable escrow agent.

Under the TPA, none of the terms or conditions regarding the Archer Agreements will delay the Closing, and the Archer Condition shall not constitute a condition to the Closing.

#### Malta
Mesa Airlines and Flite Holdings Limited, a company incorporated in the Republic of Malta ("Flite"), are parties to the Malta JV Shareholders' Agreement and Loan Agreement, between Flite, as borrower, and Mesa Airlines, as lender, each dated as of December 2, 2022, (together, the "Malta Agreements"). Promptly following the execution of the TPA, Mesa will use commercially reasonable efforts to ensure that as of the Proposed Final Closing Statement Deadline, (i) neither Mesa nor any of its Affiliates is any longer an equityholder in Flite or any of its Affiliates, and (ii) Mesa and its Affiliates have terminated their participation in the Malta JV Shareholders' Agreement and all related agreements (including, but not limited to, the Malta Agreements) and commercial or other arrangements with Flite, its Affiliates and its and their respective direct or indirect equityholders, in each case of clauses (i) through (ii), in full and without any further obligations, duties, liabilities or similar undertakings of Mesa or any of its Affiliates (clauses (i) through (ii) together, the "Malta Condition"). Prior to execution of any agreements to terminate, Mesa shall present to Republic the final forms of such agreements for Republic's review and approval. In taking action to fulfill the Malta Condition, neither Mesa nor any of its Affiliates shall make any payments of any fees, expenses, "profit or revenue sharing" payments, or other consideration (including increased or accelerated payments) or concede anything of monetary or non-monetary value to any person, including Flite, its Affiliates or its and their respective direct or indirect equityholders. However, Mesa will not be precluded from agreeing to forgive indebtedness owing to Mesa pursuant to prior loans from Mesa to Flite or any of its Affiliates or agreeing to sell its equity interest in Flite for an amount less than the amount invested in Flite by Mesa.

#### Disposition of the Shares
*Mesa Representative Expense Fund Remainder* 

By no later than five Business Days prior to the Share Settlement Date (as defined below), the Mesa Representative shall deliver to United Airlines and the Surviving Corporation a good faith written estimate of the amount of cash, if any, that will be remaining in the Mesa Representative Expense Fund following the completion of the Mesa Representative's responsibilities under the TPA, or the Mesa Representative Expense Fund Remainder.

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*Disposition of Shares to United Airlines* 

If the Net Debt Amount is a positive number (such positive number, the "United Entitlement"), then, no later than two Business Days following the later of the 60<sup>th</sup> calendar day following the Closing and the date the Net Debt Amount is determined (such later date, the "Share Settlement Date"), United Airlines will deliver to the Mesa Representative and the Surviving Corporation a statement (the "United Notice") setting forth the number of Shares (the "United Shares") whose aggregate dollar value (based on the Surviving Corporation Stock Value), when combined with the aggregate dollar value of the dividends to date on the United Shares (whether accrued and paid or accrued but unpaid), is equal to the United Entitlement. However, if the combined aggregate dollar value of the United Shares and the dividends to date on the United Shares is less than the United Entitlement, then all of the Shares will constitute United Shares.

The Mesa Representative and the Surviving Corporation will have two Business Days to review and comment on the United Notice. Following the end of the two Business Day period, the United Notice will become final and binding absent an error in the calculation of the number of United Shares, United Airlines, and the Mesa Representative will deliver joint written instructions to the Exchange Agent to transfer the United Shares and all associated dividends to United Airlines, and the Mesa Representative will wire transfer to United Airlines cash in an amount equal to the Mesa Representative Expense Fund Remainder.

*Disposition of Shares to the Surviving Corporation* 

If (A) there are any Remaining Shares following the disposition of Shares to United Airlines and (B) the sum of (x) the Malta Amount *plus* (y) the Net Debt Amount as finally determined pursuant to Sections 1.7(k) through (m) of the TPA (but excluding from the calculation of Net Debt Amount the Surviving Corporation Excluded Items) is greater than the Net Debt Amount determined in accordance with Sections 1.7(c) through (i) of the TPA (but excluding from the calculation of Net Debt Amount the Surviving Corporation Excluded Items) (such excess, the "Surviving Corporation Entitlement"), then, by no later than two Business Days following the later of (A) the disbursement of United Shares and (B) the finalization of the Net Debt Amount, the Surviving Corporation shall deliver to the Mesa Representative a statement (the "Surviving Corporation Notice") setting forth the number of Shares (the "Surviving Corporation Shares") whose aggregate dollar value (based on the Surviving Corporation Stock Value), when combined with the aggregate dollar value of the dividends to date on the Surviving Corporation Shares (whether accrued and paid or accrued but unpaid), is equal to the Surviving Corporation Entitlement.

The Mesa Representative will have two Business Days to review and comment on the Surviving Corporation Notice. Following the end of the two Business Day period, the Surviving Corporation Notice will become final and binding absent an error in the calculation of the number of Surviving Corporation Shares and the Surviving Corporation and the Mesa Representative will deliver joint written instructions to the Exchange Agent to transfer the Surviving Corporation Shares and all associated dividends to the Surviving Corporation.

*Disposition of Shares to Pre-Merger Mesa Shareholders* 

If there are any remaining Shares following the completion of the dispositions to United Airlines and the Surviving Corporation (any such remaining Shares, the "Remaining Shares"), then the Surviving Corporation will promptly deliver written instruction to the Exchange Agent to transfer the Remaining Shares and all associated dividends to the Pre-Merger Mesa Shareholders, on a pro rata basis in accordance with their respective holdings of shares of Mesa common stock as of immediately prior to the Effective Time. The Surviving Corporation, the Mesa Representative, and the Exchange Agent will reasonably cooperate with each other to consummate such transfer, including by developing reasonable procedures with respect thereto and completing all required documentation with respect thereto.

United Airlines and the Surviving Corporation will have the right to rely conclusively on the list of Pre-Merger Mesa Shareholders, including each such holder's respective holdings of shares of Mesa common

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stock, delivered to them by the Mesa Representative pursuant to the terms of the TPA, without any obligation to independently review or confirm.

#### United Airlines Debt Forgiveness and No Further Recourse for United Airlines Beyond the United Shares
Upon the later of the Closing and the finalization of the Net Debt Amount, United Airlines agrees to forgive, extinguish, and release all the debt that Mesa owes to United Airlines, and all obligations thereunder of United Airlines, Mesa and their respective Affiliates (including, from and after the Closing, the Surviving Corporation, and its Affiliates) will be permanently terminated and released.

Except as otherwise provided in the TPA, United Airlines agrees that its entitlement to receive shares of the Surviving Corporation's common stock will be United Airlines' and its affiliates' sole and exclusive source of recovery for any and all claims that it has or may have in respect of the Mesa Obligations or any liabilities or obligations that constitute United Debt, and neither it nor any of its affiliates will have any entitlement to receive cash in order to satisfy any Mesa Obligations or any liabilities or obligations that constitute United Debt, including any cash proceeds from Pre-Closing Assets Sales.

#### Indemnification
From and after the Closing, United Airlines will, subject to the indemnity procedures described below, indemnify the Surviving Corporation, its Affiliates, and its and their respective directors, officers, employees, agents, successors, and assigns from and against any and all losses, damages, liabilities, deficiencies, claims, interest, awards, judgments, penalties, costs, and expenses (including attorneys' fees, costs, and other out-of-pocket expenses incurred in investigating, preparing, or defending the foregoing) (collectively, "Losses") to the extent arising out of, relating to or resulting from any claim or cause of action (whether direct, class, derivative or otherwise) by or on behalf of any Pre-Merger Mesa Shareholder with respect to (i) the disposition of the Shares, and (ii) the United Airlines debt forgiveness as described above, in each case, except to the extent such claims arise from the issuance and disbursement of the Surviving Corporation Shares or the Surviving Corporation's breach of the TPA, bad faith, or fraud (such exclusions, the "Indemnity Exclusions"). The parties agree that the immediately preceding indemnity is not intended to, and will not be construed to, indemnify the Surviving Corporation and its other indemnitees for any claim or cause of action arising with respect to (i) the Merger (including but not limited to any claim or cause of action arising from disclosures relating to the Merger or the exercise of fiduciary duties relating to the Merger), or (ii) the terms of the TPA or the consideration received in connection therewith by any person (other than as such terms or consideration may relate to a claim for which indemnity is provided as described in the prior sentence, subject to the Indemnity Exclusions).

#### Asset Sales
Prior to the Closing, Mesa will use its reasonable best efforts to sell:

• All of the Eligible Assets to one or more third persons pursuant to binding, definitive purchase agreements, provided that the form and substance of each such purchase agreement will be customary to such transactions and will otherwise satisfy all of the Asset Sale Conditions; and

• Subject to the terms surrounding the Archer Agreements, all of the Equity Interests pursuant to one or more binding definitive purchase agreements; provided, that each such binding purchase agreement will impose no post-Closing obligations whatsoever on United Airlines, Mesa, Republic, the Surviving Corporation, or any of their respective affiliates and will otherwise be subject to the prior written consent of Republic (not to be unreasonably withheld, conditioned, or delayed).

Any such sales, collectively, constitute the "Pre-Closing Assets Sales." The Pre-Closing Assets Sales must be consummated prior to the Closing, any sales of the Archer Rights and Obligations must be completed in compliance with the terms described above under the subsection titled "*The Archer Agreements*", and any sales of

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the Flite Holding Shares must be completed in compliance with the terms described above under the subsection titled "*Malta*".

Republic will have no consent rights with respect to the purchase prices for the Eligible Assets. Mesa is obligated to apply all proceeds from the Pre-Closing Assets Sales to the repayment of outstanding debts related to the Eligible Assets and any costs, obligations, losses, premiums, penalties, or expenses required to be incurred in connection with reducing such obligations. To the extent that there are surplus proceeds, such proceeds will be applied to satisfy any remaining Mesa Obligations. Mesa is required to promptly provide reasonable updates and documentation to United Airlines and Republic upon the achievement of any material milestones regarding the Pre-Closing Assets Sales.

Prior to the Closing, Mesa will not sell, lease, transfer, or otherwise dispose of or encumber (other than with any Permitted Lien), any Non-Eligible Assets, as defined in the TPA, nor will Mesa agree, resolve, authorize, or enter into any contract or commitment to do any of the foregoing. This restriction will not apply to Mesa's sale of the Equity Interests. Mesa will use its reasonable best efforts to ensure that, as of the Proposed Final Closing Statement Deadline, there is a Qualifying Appraisal with respect to the Class A Eligible Assets and the Appraisal ERJ Part Assets, as each are defined in the TPA.

No later than five days following the final determination of the Net Debt Amount, United Airlines will elect whether to acquire title to each Class A Eligible Asset that is not, as of the Proposed Final Closing Statement Deadline, subject to a binding definitive purchase agreement providing for the sale therefor (each, a "Transferable Asset"), from Mesa or the Surviving Corporation (as applicable) at or promptly after the Closing, or to transfer such assets to the Liquidator. If United Airlines fails to make an affirmative election, United Airlines will be deemed to have elected to acquire title to such Transferable Assets from Mesa or the Surviving Corporation (as applicable). Following receipt of notice of United Airlines' elections, Mesa, or the Surviving Corporation, as applicable, will transfer the Transferable Assets to United Airlines or the Liquidator, as applicable. Any proceeds from the sale of these assets by the Liquidator will go to United Airlines. United Airlines will reimburse the Surviving Corporation for any reasonable and documented costs and expenses incurred and all transfer taxes to be borne by the Surviving Corporation resulting from the sale of assets to United Airlines or the Liquidator, as applicable.

From and after the Closing, the Surviving Corporation will use commercially reasonable efforts to sell to all of the Eligible Assets that are subject to a Qualifying Agreement to one or more third parties. The Surviving Corporation will promptly remit any and all proceeds that it receives from such sales (net of the Surviving Corporation's reasonable and documented out-of-pocket costs and expenses incurred in connection with such sales and all resulting transfer taxes to be borne by the Surviving Corporation) to United Airlines. The Surviving Corporation will promptly provide reasonable updates and documentation to United Airlines upon the achievement of any and all material milestones regarding the sales of the assets.

Where any Eligible Asset that is subject to a binding agreement for sale at Closing, ceases to be under such an agreement post-Closing, the Surviving Corporation will be required to transfer the asset to United Airlines promptly, and United Airlines must reimburse the Surviving Corporation for any reasonable and documented out-of-pocket costs incurred in the transfer.

#### Certain Reimbursements for Pilot Training
Pursuant to the terms of the TPA, United Airlines will provide the Surviving Corporation with certain reimbursements for pilot training that occurs during a specified period after the Closing. The Surviving Corporation will provide United Airlines with a certified list of pilots meeting the conditions set forth in Section 3.1 of the TPA (the "Subject CRJ Pilots"), including the condition that the pilot is employed by the Surviving Corporation or its affiliates, is qualified to operate CRJ-900 aircraft or is training to operate CRJ-900 aircraft if not an active pilot, and is not qualified to operate E175 aircraft. Any Subject CRJ Pilot who commences

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training to become qualified to operate E175 aircraft during the period commencing on the Closing Date and ceasing on the 180<sup>th</sup> day thereafter is a "Subject E175 Certified Pilot." For each Subject E175 Pilot, who the Surviving Corporation provides reasonable supporting documentation meets the criteria to be considered such, United Airlines will pay the Surviving Corporation a "Pilot Training Payment" a set fee. If a Subject E175 Certified Pilot commences training to become qualified to operate E175 aircraft prior to the Closing Date, the amount of the Pilot Training Payment payable will be adjusted (according to the formula set forth in Section 3.2(a) of the TPA) to reflect the portion of the training period that occurs after the Closing.

#### Representations and Warranties of the Parties
The TPA contains representations and warranties made by each of Mesa, Republic, and United Airlines relating to a number of matters; these representations include, without limitation the following:

• corporate matters, including due organization and good standing;

• authority relative to the execution and delivery of the TPA and the transactions contemplated thereby;

• absence of conflicts with, or violations of, organizational documents, or other obligations as a result of performance of the TPA; and

• required filings and consents.

With respect to Mesa only, these representations also include:

• correct and complete documentation relating to the Pre-Closing Assets Sales;

• the representations and warranties delivered to Republic in Article IV of the Merger Agreement are true and correct as of the date of the TPA; and

• pilots employed by Mesa and their qualifications.

With respect to United Airlines only, these representations also include:

• no United Triggering Events have occurred nor are currently contemplated.

With respect to Mesa and Republic to United Airlines only, these representations also include:

• the consulting services to be provided by Mesa's departing executive officers are, to Mesa and Republic's reasonable belief and estimation, necessary and to the Merger's success, and the fees to be paid under the terms of the consulting agreements are reasonable and it is intended that the Surviving Corporation will only pay such fees to the extent such services are delivered and the consulting agreements are complied with.

#### Tax Indemnification
Under the TPA, United Airlines has certain indemnification obligations towards the Surviving Corporation and its subsidiaries from and against all liabilities for Indemnified Taxes. "Indemnified Taxes" means any and all out-of-pocket Taxes that Mesa, its Subsidiaries or the Surviving Corporation are required to pay that are solely attributable to the transactions contemplated by the TPA but do not include any Taxes with respect to a subsequent taxable year that arise from the use of a tax asset or tax attribute in the taxable year of such transaction or transactions. The indemnification period extends from the Closing Date until the sixth anniversary of the Closing Date.

The Surviving Corporation or its Subsidiaries must notify United Airlines of any claim for Indemnified Taxes at least 30 days before the due date for filing the relevant Tax Return and shall provide United Airlines sufficient information to support the claim. If United Airlines objects to the claim, the parties will use

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commercially reasonable efforts to resolve the dispute. If unresolved, the matter will be referred to an independent accounting firm for determination. United Airlines will pay any resulting Indemnified Taxes within five days following the determination of the independent accounting firm. Subject to exceptions in the TPA, neither the Surviving Corporation nor any of its Subsidiaries will amend, refile, or otherwise modify any Tax Return if the effect of such action would reasonably be expected to increase the amount of Indemnified Taxes.

If a claim for Indemnified Taxes arises in connection with a Tax Audit, the Surviving Corporation or its Subsidiaries must provide notice of such claim to United Airlines as soon as reasonably practicable following the identification of such claim or potential claim for Indemnified Taxes. The Surviving Corporation and its Subsidiaries, as applicable, will control the conduct of any Tax Audit in respect of an Indemnified Tax but must keep United Airlines reasonably informed and allow United Airlines to review and comment on written submissions at its own expense. The Surviving Corporation or its Subsidiaries can settle or resolve the Tax Audit at their discretion but must notify United Airlines and consider United Airlines' reasonable requests before agreeing to any settlement or resolution that would require United Airlines to make a payment.

#### Lock-Up; Registration Rights
Mesa and Republic are required to use their respective commercially reasonable efforts to negotiate with certain designated stockholders of Republic to provide that, effective as of the Closing, there will be a customary lock-up agreement (not to exceed 180 days in duration) in place between the Surviving Corporation, on the one hand, and each such stockholder, on the other hand. The actual entry into such lock-up agreements is not a condition to the Closing.

As promptly as reasonably practicable following the execution of the TPA, the parties (other than the Mesa Representative) are required to use reasonable best efforts to draft a customary registration rights agreement providing United Airlines with registration rights no less favorable to United Airlines than the registration rights contained in Republic's Stockholders Agreement, by and among Republic and certain of Republic's shareholders, and to cause the Surviving Corporation to (and United Airlines shall cause itself or its applicable affiliates to) enter into such agreement effective as of the Closing. Prior to and at the Closing, none of the Surviving Corporation, Mesa and Republic shall grant any shareholder rights with regard to the Surviving Corporation (including without limitation as to board representation, board observers, information rights, consent rights, advance notice rights, or registration rights, etc.) to any person other than United Airlines, in each case unless prior to or at the Closing the Surviving Corporation grants to United Airlines equivalent (or superior) rights (including, if applicable, in the Registration Rights Agreement or in an amendment thereto reflecting the grant of such additional rights to United Airlines).

#### Public Announcements
Each Party agrees not to issue any press release, public announcement, or statement regarding the TPA or the transactions contemplated thereby without the consent of the other parties (other than the Mesa Representative). This consent should not be unreasonably withheld, conditioned, or delayed. However, if a public announcement or regulatory filing is necessary to comply with applicable laws or stock exchange rules and following commercially reasonable efforts to obtain consent from the other parties (other than the Mesa Representative), obtaining prior consent would prevent timely dissemination to comply with such laws or stock exchange rules, the party making the announcement will not be in violation of the TPA. In all instances, each party will provide prompt prior notice of any press release, public announcement, or statement to the other parties and give a reasonable opportunity to review and comment prior to such press release, public announcement, or statement becoming public.

However, responses to press inquiries, analyst questions, investor communications, industry conference statements, or internal employee announcements, will not be prohibited as long as they are consistent with previous joint or approved public releases and do not reveal material nonpublic information. The provisions in the

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preceding paragraph do not apply to public announcements solely concerning Mesa and its Affiliates or Republic and its Affiliates. United Airlines has no rights or remedies under the TPA if the announcements do not disclose details related to United Airlines. The above covenants survive until the Closing and, if the TPA is terminated, continue for 18 months post-termination regarding announcements about the termination and its circumstances (the "End Date"). After this period, the covenants become null and void, except for any breaches occurring before the End Date.

#### Indemnity Procedures
*Notification and Defense of Claims* 

For a Surviving Corporation Indemnitee to be entitled to indemnification for specified Indemnified Claims, such Indemnitee must notify United Airlines in writing of the Claim, detailing the facts and estimated amount of Losses, within 30 days of receiving notice of the Claim. However, failure to notify United Airlines promptly does not relieve United Airlines of its obligations unless United Airlines is prejudiced by the delay. United Airlines has the right to participate in the defense of any Claim and, upon written notice within 30 days of the Indemnitee's notification, may assume the defense with chosen counsel. If United Airlines assumes the defense, it is not liable for the Indemnitee's legal expenses. Indemnitees can participate in the defense at their own expense and must cooperate with United Airlines.

*Cooperation and Settlement* 

Indemnitees must cooperate with United Airlines in the defense of Claims, including providing relevant records and making employees available. Indemnitees cannot admit liability or settle Claims without United Airlines' consent. United Airlines can settle Claims without Indemnitee consent if the settlement involves only monetary damages covered by indemnification, includes a full release, and does not admit fault. Indemnitees and United Airlines must cooperate to mitigate or resolve any claim or liability for which United Airlines is obligated to indemnify Indemnitees, including making reasonable efforts to reduce or settle the claim after gaining knowledge of it.

In any dispute over indemnification entitlement, the non-prevailing party must reimburse the prevailing party for reasonable costs and expenses, including legal fees, incurred in connection with the dispute.

*Limitations* 

United Airlines' total indemnity obligations under the TPA are capped at an aggregate of $6,000,000. The amount of any indemnification claim will be reduced by any insurance proceeds actually recovered by the Indemnitees, less the cost to collect such proceeds and any related premium adjustments. Indemnitees' sole and exclusive remedy for any claims related to Indemnified Claims is through the foregoing indemnification provisions. Indemnitees waive any other rights or claims for damages against United Airlines related to these Claims.

#### Termination of the TPA
Pursuant to the Merger Agreement, the Merger is conditioned on the TPA being executed and the transactions contemplated therein being consummated. The TPA will automatically terminate if the Merger Agreement is terminated prior to the Closing. United Airlines will have the right to terminate the TPA at any time following a United Conditions Precedent Failure. In addition, United Airlines will have the right to terminate the TPA prior to the Closing under the following conditions:

(i) the Net Debt Amount in the Final Closing Statement is greater than $60,000,000, upon delivery of written notice to Mesa and Republic no later than five Business Days following the date that the Proposed Estimated Net Debt Amount becomes the Net Debt Amount;

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(ii) the Net Debt Amount as revised is greater than $60,000,000, upon delivery of written notice to Mesa and Republic no later than five Business Days following the date that any adjustments to the Net Debt Amount have been finalized; or

(iii) (A) any material breach of any representation or warranty delivered to United Airlines by the Parties pursuant to the TPA (other than those with respect to the consulting services); provided that, termination of the TPA with respect to a breach of Mesa's representation and warranty to United Airlines that all representations and warranties delivered to Republic pursuant to the Merger Agreement are true and correct as if delivered to United Airlines under the TPA as of the date of the TPA will only be permitted if such breach would cause certain specified representations and warranties of Mesa pursuant to the Merger Agreement to not be true and correct, subject to applicable materiality qualifiers, or (B) any material breach of any covenant or agreement of Mesa, Mesa Airlines, or Republic contained in the TPA (other than certain covenants and agreements with respect to the Archer Agreements and Malta); provided, however, that, for any such breach that is curable, United Airlines may only terminate the TPA pursuant to this clause (iii) if and when United Airlines has first provided Mesa and Republic with written notice of the applicable breach and Mesa, Mesa Airlines, or Republic (as applicable) has not fully cured such breach within 30 days following receipt of such notice; provided, further, that with respect to any breach of certain specified representations and warranties regarding pilots, such breach will be deemed fully cured if Mesa delivers to United Airlines and Republic, an updated, correct, and complete version of the required schedule setting forth a list of each pilot employed by Mesa or any of its affiliates that meet certain specified criteria, within 30 days following receipt by Mesa of notice that the prior version of such schedule was inaccurate.

If the TPA is properly terminated by United Airlines pursuant to clause (i) or (ii) of the preceding paragraph, United Airlines must reimburse Republic for its documented out-of-pocket expenses (including attorneys', bankers', consultants', and other third party advisors' fees and expenses) incurred by it in connection with its evaluation, negotiation or consummation of the transactions contemplated by the Merger Agreement, the TPA or any ancillary agreement (whether incurred before or after the date of the TPA), up to $5,000,000 or $3,000,000, respectively. If the Utilization Condition is satisfied at the time of termination, Mesa must reimburse United Airlines for the amounts paid to Republic. The Utilization Condition (as described in more detail in the TPA) is an operational performance metric that is met if the Utilization Rate Average is equal to or greater than 9.0, as determined by dividing the number of scheduled block hours by the total number of Active Covered Aircraft, adjusted for various factors such as pilot availability, fleet health, and operational performance over the Utilization Test Period. If the Utilization Condition is not satisfied at the time of termination, United Airlines must reimburse Mesa for its documented out-of-pocket expenses up to the same respective amounts. Republic's entitlement to expense reimbursement is not impacted by whether or not Mesa reimburses United Airlines.

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#### EQUITY COMPENSATION PLAN INFORMATION

#### Republic Equity Compensation Plan Information
The following table sets forth certain information with respect to the equity compensation plans maintained by Republic as of December 31, 2024.

---

| | | | |
|:---|:---|:---|:---|
| **Plan Category** | **Number of<br>Securities to be<br>Issued Upon<br>Exercise of<br>Outstanding<br>Options,<br>Warrants, and<br>Rights (a)<sup>(1)</sup>** | **Weighted-Average<br>Exercise Price of<br>Outstanding Options,<br>Warrants, and<br>Rights (b)<sup>(2)</sup>** | **Number of Securities<br>Remaining Available<br>for Future Issuance<br>Under Equity<br>Compensation Plans<br>(Excluding<br>Securities Reflected<br>in Column (a)) (c)<sup>(3)</sup>** |
|  Equity compensation plans approved by security holders | 37265 | – | 33530 |
|  Equity compensation plans not approved by security holders |  | – |  |

---

<sup>(1)</sup> Includes unvested performance-based vesting RSUs outstanding under Republic's 2020 Omnibus Incentive Plan, which RSUs, for purposes of this column, are assumed to be payable at 187.5% of target. 

<sup>(2)</sup> As of December 31, 2024, no options or other exercisable awards were outstanding under Republic's 2020 Omnibus Incentive Plan.

<sup>(3)</sup> Consists of 33,530 shares available under Republic's 2020 Omnibus Incentive Plan.

#### Mesa Equity Compensation Plan Information
The following table summarizes information about our equity compensation plans as of September 30, 2024. All outstanding awards relate to our common stock.

---

| | | | |
|:---|:---|:---|:---|
| **Plan Category** | **Number of<br>Securities to be<br>Issued upon<br>Exercise of<br>Outstanding<br>Options,<br>Warrants, and<br>Rights (a)<sup>(1)</sup>** | **Weighted-Average<br>Exercise Price of<br>Outstanding Options,<br>Warrants and<br>Rights (b)** | **Number of Securities<br>Remaining Available<br>for Future Issuance<br>under Equity<br>Compensation Plans<br>(excluding<br>securities<br>in column (a)) (c)** |
|  Equity compensation plans approved by security holders | 5318542 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | 113353<sup>(2)(3)</sup> |
|  Equity compensation plans not approved by security holders |  |  |  |
|  **Total** | 5318542 | $— | 113353<sup>(2)(3)</sup> |

---

<sup>(1)</sup> As of September 30, 2024, we had 5,318,542 shares of restricted stock unit awards issued to certain of our employees and directors under our 2018 Plan.

<sup>(2)</sup> The number of securities remaining available for future issuance in column (c) consists of 113,353 shares of common stock authorized and available for issuance under our 2018 Plan prior to the annual 1% increase. 

<sup>(3)</sup> The number of shares authorized for issuance under our 2018 Plan are subject to an annual increase. Subject to adjustment as described in our 2018 Plan, the maximum aggregate number of shares of common stock that may be issued under our 2018 Plan will be cumulatively increased on January 1, 2020 and on each subsequent January 1 through and including January 1, 2028, by a number of shares equal to the smaller of (a) 1% of the number of shares issued and outstanding on the immediately preceding December 31, or (b) an amount determined by our Board. Subsequent to the September 30, 2024 fiscal year end, and in connection with the 2018 Plan's annual increase, our Board approved a 1% increase for fiscal 2024. 

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#### REPUBLIC EXECUTIVE COMPENSATION

#### Compensation Discussion and Analysis
This Compensation Discussion and Analysis ("CD&A") provides a description of Republic's compensation philosophy and programs for each of its named executive officers for 2024 who will serve as an executive officer of the Surviving Corporation following the completion of the Merger (the "NEOs"), as determined by Republic's Compensation Committee. Republic's Compensation Committee is responsible for overseeing the compensation paid to its NEOs. Bryan Bedford, Republic's Chief Executive Officer, as of December 31, 2024, is not included as an NEO herein because he will not serve as an executive officer of the Surviving Corporation following the completion of the Merger. Mr. Bedford was nominated to serve as Administrator of the FAA and thereby terminated his employment with Republic effective July 1, 2025. David Grizzle, the current Chief Executive Officer and Chairman of the board of directors of Republic, is not included as an NEO herein because he was not an executive officer of Republic during 2024. See "*Director Compensation*" below for information regarding the compensation paid to Mr. Grizzle in 2024 in his capacity as a member of the board of directors of Republic.

Republic's compensation program is designed to attract, retain, and reward capable employees who can contribute to its future success, principally by linking performance-based compensation with the attainment of key business objectives. The fundamental objective of Republic's current executive compensation program is to motivate and retain executives with talent, experience, and expertise and to reward actions that will align with the creation of long-term stockholder value.

This CD&A reflects decisions made by the Compensation Committee prior to the Merger and may not be reflective of decisions to be made by the Surviving Company's Compensation Committee following the Merger.

#### Compensation Philosophy
Performance-based compensation and a strong alignment to stakeholder interests are key elements of Republic's compensation philosophy. Accordingly, Republic's NEO compensation program is designed to provide competitive compensation, support its strategic business goals, retain critical talent, and reward strong performance. This compensation program reflects the following principles:

• compensation should encourage operational excellence and the creation of long-term stakeholder value;

• compensation programs should reflect and promote Republic's values and reward achievement of specific business goals;

• compensation programs should enable Republic to attract and retain highly qualified professionals; and

• all compensation policies and all compensation decisions should be designed to reward employees, including the NEOs, who have demonstrated the capacity to contribute to Republic's financial and competitive performance, thereby creating stakeholder value.

#### Implementing Republic's Philosophy
The Compensation Committee makes compensation decisions after reviewing the performance and strategic goals of Republic and carefully evaluating an executive's individual performance during the year against established goals, leadership qualities, operational performance, business responsibilities, current compensation arrangements, and potential to enhance stakeholder value. Specific factors affecting compensation decisions for the NEOs include:

• Republic's goal of creating and maintaining a culture of safety and operational performance;

• Republic's goal of retaining and incentivizing executives to create value for its stakeholders;

• the nature, scope, and level of the executive's responsibilities;

• Republic's overall operational performance and profitability, measured by its end-of-year and year- to-year financial and operational data;

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• the executive's individual performance; and

• the compensation levels of executive officers at Republic's peer group companies.

Republic takes into account the following mix of financial, operational, and strategic related data in setting performance goals for its NEOs' annual and long-term incentive compensation programs:

• pre-tax income;

• controllable completion factor ("CCF");

• controllable on-time departure ("CD-0");

• aircraft block hour production;

• strategic associate initiatives that Republic believes drive engagement and retention; and

• strategic workforce development initiatives and other strategic initiatives.

Republic seeks to achieve an appropriate mix between cash compensation, short and long-term annual incentives, and performance linked equity awards in order to meet its objectives. Republic's mix of compensation elements is designed to help it recruit and retain talent, reward recent results, and motivate long-term performance. Republic also seeks to balance compensation elements that are based on financial, operational, and strategic related measures. Republic's goal is to motivate its NEOs to deliver superior long-term performance and to retain their services with Republic on a competitive basis.

The table below shows the total annual compensation mix for Republic's NEOs for 2024 based on target awards for 2024. As shown in the table, a substantial majority of 2024 targeted pay for its NEOs is "at risk" based on Republic's performance.

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| | | | |
|:---|:---|:---|:---|
|  | | **At Risk** | **At Risk** |
|  |<br>**Based Salary** | **Annual Incentive** | **Long-term<br>Incentive** |
|  NEO Total Direct Compensation | 27% | 23% | 50% |

---

#### Role of the Compensation Committee and Management
The Compensation Committee reviews all elements of Republic's executive compensation program. Republic's management, through its Chief Executive Officer, provides the Compensation Committee with recommendations regarding the annual incentive compensation of all other NEOs so the Compensation Committee can review and approve any payouts for the prior fiscal year or make changes to the annual incentive plan for the performance period beginning in the current fiscal year, which includes the performance goals and weightings for Republic's NEOs. The Compensation Committee believes that management's insight into Republic's business as well as their experience in the airline industry combine to provide a valuable resource to the Compensation Committee with respect to its executive compensation arrangements. Management analyzes Republic's overall safety, operational performance, and profitability using operational, financial, and associated related measures to provide a basis for its recommendations regarding executive compensation. The Chief Executive Officer reviews the performance of the other NEOs and recommends compensation based on such review. The Chairman of the Board reviews the performance of the Chief Executive Officer and recommends compensation based on such review. The Compensation Committee consults with its independent compensation consultant and analyzes market data and compensation trends and may request additional information and analysis and ultimately determines in its discretion whether to approve any recommended changes in compensation. These determinations are made by Republic's Compensation Committee based on its own analysis and judgment.

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compensation policies and procedures, including the incentives that they create and factors that may reduce the likelihood of excessive risk taking, to determine whether they present a significant risk. Based on this review, the Compensation Committee has concluded that Republic's compensation policies and procedures are not reasonably likely to have a material adverse effect on Republic.

#### Compensation Consultant and Custom Peer Group
The Compensation Committee has engaged Exequity, LLP ("Exequity") as its independent outside compensation consultant to assist in designing the current executive compensation programs for 2024 and provide advice about whether Republic's executive compensation programs are generally consistent with its compensation philosophy and aligned with stakeholder interests and with evolving best practices for similarly situated companies. Exequity representatives report directly to the Compensation Committee and assist the Compensation Committee in executive compensation data analysis and assessments of market data and compensation trends relevant to the setting of executive compensation levels.

Part of this analysis and assessment included a review and consideration of Republic's NEOs' compensation relative to the competitive peer group's compensation. The competitive peer group for 2024 consists of the following companies:

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• AAR Corp. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• GATX Corporation |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Air Lease Corporation | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Hawaiian Holdings, Inc. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Air Transport Services Group, Inc. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Hub Group, Inc. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Allegiant Travel Company | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Mesa Air Group, Inc. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ArcBest Corporation | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• RXO, Inc. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Chorus Aviation Inc. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• SkyWest, Inc. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Forward Air Corporation | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Spirit Airlines, Inc. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Frontier Group Holdings, Inc. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Sun Country Airlines Holdings, Inc. |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Werner Enterprises, Inc. |

---

To better inform the development of compensation programs that retain and attract executive talent with industry-specific knowledge, the Compensation Committee selected a peer group of companies that include similar airline companies and travel and transportation industry peers that Republic competes with for executive talent with industry-specific knowledge and experience. Additionally, the peer group companies were selected to represent a range of revenues and scope of operations relevant to Republic's business. In developing Republic's compensation program, the Compensation Committee does not target a specific pay level relative to the peer group, but rather focuses on the practices at the peer group. The Compensation Committee relies on its judgment in determining appropriate compensation programs and assessing the reasonableness of such programs based on the factors described herein and any unique considerations relevant to Republic.

In setting 2024 compensation, the Compensation Committee reviewed the range of base salary, annual bonus, long-term incentive grant values, annual equity grant, and the combined total of these and other elements of compensation of persons holding the same or similar positions at the peer group based on recent market data available.

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#### Elements of Compensation
The following table summarizes the material elements and objectives of Republic's 2024 compensation program for its NEOs:

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| | | |
|:---|:---|:---|
| **Type** | **Component** | **Objective** |
| Fixed | Base salary | Provide reasonable and market-competitive fixed pay reflective of an executive's role, responsibilities, and individual performance |
|  | Benefits and perquisites | Provide market competitive benefits and perquisites that reflect airline industry and best practices |
| Performance-based/"At-risk" | Annual short-term incentive award | Drive achievement of annual corporate goals, financial, operational, and strategic related performance that is consistent with pre-established performance criteria |
|  | Annual and one-time<br>long-term incentive awards | Focus on drivers of long-term value creation and attract and retain executive talent |

---

#### Base Salary
Republic reviews the amount of its NEOs base salaries annually and pays its NEOs a base salary in order to remain competitive in the market. In determining the amount of base salary of Republic's NEOs for 2024, the Compensation Committee, with advice from its independent compensation consultant considered competitive trends, general economic conditions, the compensation level of similarly situated executives at Republic's peer group companies, and several factors relating to the executive, including the performance of the executive, the level of his experience and ability, and his knowledge of his job. Based on these considerations, the Compensation Committee approved the base salary of each of Messrs. Koscal, Allman, Kinstedt, and Pulley for 2024 as follows, respectively: $500,000, $486,000, $486,000, and $425,000.

#### Annual Short-Term Incentive Awards
In order to incentivize performance consistent with Republic's annual operational, financial, and strategic priorities, the Compensation Committee has determined that a substantial portion of each NEO's compensation will be in the form of a performance-based, annual "at risk" short-term incentive award. The performance period for the annual short-term incentive program ("AIP") is the full fiscal year.

The 2024 target annual short-term incentive opportunity for each of Messrs. Koscal, Allman, Kinstedt, and Pulley was as follows, respectively: $500,000, $388,800, $388,800, and $340,000.

Performance metrics. These annual short-term incentive awards are conditioned on the achievement of specific annual operational, financial, and strategic performance goals established by the Compensation Committee in consultation with management. In establishing the metrics for the 2024 AIP, the Compensation Committee selected performance metrics that were aligned with Republic's strategic objectives, including creation of stakeholder value, demonstrated operational reliability, and investment in its associates. The 2024 AIP included the operational performance measures of controllable completion factor (CCF) weighted 40% and

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controllable on time departure (CD-0) weighted 20%; the financial performance measures of pre-tax income weighted at 30%; and the strategic performance measure of achievement of strategic flight plan initiatives weighted at 10%.

The approved performance metrics and goals for 2024 were as follows:

#### 2024 AIP Program

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| | | | | |
|:---|:---|:---|:---|:---|
| **Performance Measure** | **Performance Levels** | **Performance Levels** | **Actual Performance** | **Award Earned** |
|  *Operational* |  |  |  |  |
|  CCF (weighted 40%) | Threshold | 99.40% | 99.99% | 200% |
|  CCF (weighted 40%) | Target | 99.60% | 99.99% | 200% |
|  CCF (weighted 40%) | Maximum | 99.90% | 99.99% | 200% |
|  CD-0 (weighted 20%) | Threshold | 89.00% | 94.35% | 200% |
|  CD-0 (weighted 20%) | Target | 91.00% | 94.35% | 200% |
|  CD-0 (weighted 20%) | Maximum | 93.00% | 94.35% | 200% |
|  *Financial* |  |  |  |  |
|  Pre-Tax Income (weighted 30%) | Threshold | $34.4M | $93.0M | 200% |
|  Pre-Tax Income (weighted 30%) | Target | $52.4M | $93.0M | 200% |
|  Pre-Tax Income (weighted 30%) | Maximum | $70.4M | $93.0M | 200% |
|  *Strategic* |  |  |  |  |
|  Achievement of Strategic Flight Plan Initiatives (weighted 10%) | Threshold<br> Target<br> Maximum | 2 of 5 metrics<br> 3 of 5 metrics<br> 5 of 5 metrics | 5 of 5 metrics | 200% |

---

*Actual 2024 Short-Term Incentive Payout* 

Republic's performance with respect to each of these metrics resulted in the following annual short-term incentive award payout amounts for the year ended December 31, 2024 for each of the NEOs, respectively, and are reported in the "*Non-Equity Incentive Compensation*" column of the Summary Compensation Table:

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| | | | |
|:---|:---|:---|:---|
| **Name** | **2024 Target AIP<br>Award** | **Actual**<br>**Performance** | **2024 AIP<br>Payout<br>Amount** |
|  Mr. Koscal | $500000 | 200% | $1000000 |
|  Mr. Allman | $388800 | 200% | $777600 |
|  Mr. Kinstedt | $388800 | 200% | $777600 |
|  Mr. Pulley | $340000 | 200% | $680000 |

---

#### Long-Term Incentive Awards
Since 2017, the Compensation Committee has made annual awards under a cash-based long-term incentive program ("LTI") to drive long-term performance, encourage retention, and align the NEOs' interests with Republic's strategic objectives and the interests of Republic's stakeholders.

The annual long-term incentive award includes both a performance-based and a retention-based component. The performance-based component has a three-year performance period beginning January 1 of the applicable year and is earned and paid out thereafter based on achievement of the established performance metrics. The retention-based component vests in equal annual installments over the three-year period beginning January 1 of the applicable year, in each case provided Republic achieves positive pre-tax income in the fiscal year ending as of the vesting date.

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The NEO must be employed on the vesting date to earn the cash award unless entitled to accelerated vesting as further described below in "—*Termination of Employment and Change-in-Control Arrangements*."

#### 2024 LTI Program
In 2024, the Compensation Committee granted annual long-term cash-based awards with a target incentive earning opportunity for each of the NEOs as follows:

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| | | |
|:---|:---|:---|
|  | **2024 Target LTIP Award<br>Opportunity** | **2024 Target LTIP Award<br>Opportunity** |
| **Name** | **Performance-<br>Based** | **Retention-<br>Based** |
|  Mr. Koscal | $500000 | $500000 |
|  Mr. Allman | $449550 | $449550 |
|  Mr. Kinstedt | $449550 | $449550 |
|  Mr. Pulley | $340000 | $340000 |

---

*Performance Metrics* 

For the performance-based portion of the annual cash-based LTI, the Compensation Committee selected performance measures designed to reward the NEOs when they achieve key goals that contribute to the creation of stockholder value over the long-term. For 2024, the Compensation Committee approved the following metrics for the three-year performance period ending December 31, 2026: (1) cumulative controllable completion factor performance over the three-year period, weighted at 60%; and (2) average daily aircraft utilization hours, measured in annual targets over the three-year period, weighted at 40%.

*Actual Earned Long-Term Incentive Cash-Based Award Payout* 

Republic earned positive pre-tax income for 2024, therefore the performance-based portion of the 2022 annual long-term incentive award vested and was earned as of December 31, 2024. The 2022 LTI award included two metrics weighted equally at 50% each: (i) the cumulative operational performance measure of CCF; and (ii) the financial performance measure of pre-tax income measured in three one-year periods over the three-year performance period ending December 31, 2024. Each of Messrs. Koscal, Allman, Kinstedt, and Pulley earned the following amounts, respectively: $1,229,050, $1,026,250, $1,026,250, and $612,000.

Additionally, the following retention-based amounts vested as of December 31, 2024 and were earned by each of Messrs. Koscal, Allman, Kinstedt, and Pulley, respectively: (i) $136,561, $114,028, $114,028 and $68,000 for the third tranche of the outstanding retention portion of the 2022 LTI award; (ii) $157,667, $129,500, $129,500 and $97,500 for the second tranche of the outstanding retention portion of the 2023 LTI award; and (iii) $166,667, $149,850, $149,850 and $113,333 for the first tranche of the outstanding retention portion of the 2024 LTI award.

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These amounts are reported in the "*Non-Equity Incentive Compensation*" column of the Summary Compensation Table.

#### 2022 LTI Program (for 3-year period ending December 31, 2024)

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| | | | | |
|:---|:---|:---|:---|:---|
| **Performance Measure** | **Performance Levels** | **Performance Levels** | **Performance** | **Award Earned** |
|  *Operational* |  |  |  |  |
|  CCF (weighted 50%) | Threshold | 99.40% | 99.94 | 200 |
|  CCF (weighted 50%) | Target | 99.60% | 99.94 | 200 |
|  CCF (weighted 50%) | Maximum | 99.80% | 99.94 | 200 |
|  *Financial* |  |  |  |  |
|  Pre-Tax Income (weighted 50%) | 2022 Threshold/Target/Maximum | $44M / $64M / $84M | $97.4M |  |
|  Pre-Tax Income (weighted 50%) | 2023 Threshold/Target/Maximum | $1M / $20M / $50M | $86.7M | 200% |
|  Pre-Tax Income (weighted 50%) | 2024 Threshold/Target/Maximum | $34.4M / $52.4M / $70.4M | $93.0M |  |

---

#### Long-Term Equity Incentive Compensation
In 2020, Republic's NEOs were provided a one-time special purpose long-term equity incentive compensation in the form of equity awards to incentivize a successful liquidity event. The use of long-term equity incentives creates a link between executive compensation and Republic's long-term performance and growth, thereby creating alignment between executive officers and stockholder interests.

The Compensation Committee believes that long-term equity incentive compensation is an effective means for incentivizing Republic's NEOs to pursue and effectuate a liquidity event, to increase equity value over a multi-year period, provide a meaningful reward for appreciation in the value of its equity and long-term value creation, and motivate Republic's NEOs to remain employed with it.

Republic's equity award grant practices are designed to reflect a balance between:

• Republic's desire to motivate, retain, and reward executive talent;

• Republic's need to remain competitive in recruiting; and

• effectively managing the dilution of stockholders' interests.

The Compensation Committee believes that Republic's one-time special purpose performance based Restricted Stock Unit ("RSU") awards help Republic to retain its executive officers and reward them for successfully completing a liquidity event and generating stockholder value while at the same time providing some value to the recipient. The Compensation Committee also believes that the RSU awards help Republic to manage dilution to existing stockholders and provide greater transparency and predictability to its executive officers regarding the ultimate value of their compensation opportunities.

In determining the number of RSUs, the Compensation Committee considers competitive market data for performance based awards issued to portfolio companies of private equity sponsors and the types of equity award compensation provided to executive officers by companies in Republic's compensation peer group, with a goal of reaching a mix that would provide the appropriate incentives while staying competitive in its market. The Compensation Committee also evaluates the accounting impact of the proposed awards on Republic's earnings, its "burn rate" in relation to the airline industry sector benchmarks, and the other factors described above.

For more information regarding long-term equity incentive compensation, see "*Omnibus Incentive Plan*."

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On November 25, 2020 (the "Grant Date") each of Messrs. Koscal, Allman, Kinstedt, and Pulley was granted 2,500, 2,500, 2,500, and 1,000, target number of RSUs respectively, under the Omnibus Incentive Plan to further align Republic's NEOs with the interests of its shareholders and as a retention tool.

*Terms of the RSUs* 

In the event there is a Liquidity Event (as defined below) prior to December 31, 2025 (the "Expiration Date"), the number of RSUs earned by an NEO ("Earned RSUs") is determined by multiplying the target number of RSUs for each NEO by each of the performance multipliers as set forth below:

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| | |
|:---|:---|
| Timing | Multiplier: The timing multiplier is determined based on the timing of a Liquidity Event and ranges between 200% if the Liquidity Event is on or before December 31, 2021 and 100% for a Liquidity Event that occurs on the Expiration Date. If the event occurs between January 1, 2022 and the Expiration Date, the percentage earned is determined using linear interpolation between 100% and 200%.  |

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| | |
|:---|:---|
| Value | Multiplier: In the event of a Liquidity Event, the number of RSUs determined based on the timing multiplier will be further multiplied by a value multiplier that ranges between 100% and 150% if the applicable "value change target" as set forth below is achieved. The "value change target" is the change in stock value of Republic from the Grant Date ($415 per share) required to achieve the maximum value multiplier of 150%. Once the applicable value change target has been calculated, the performance value multiplier is calculated applying linear interpolation of the actual change in stock value compared against the stated value change target. Under no circumstances would the value multiplier be more than 150% or less than 100% in the event of a Liquidity Event.  |

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| | |
|:---|:---|
| **Date of Liquidity Event** | **Value Change<br>Target** |
|  On or before December 31, 2021 | 10% |
|  On December 31, 2022 | 15 |
|  On December 31, 2023 | 20 |
|  On December 31, 2024 | 25 |
|  On December 31, 2025 | 30 |

---

In the event there is no Liquidity Event on or before the Expiration Date, the number of Earned RSUs is determined by multiplying the target number of RSUs by a percentage ranging from 0% to 100% based on the value change of Republic as of January 1, 2026, as determined by a third party valuation.

As provided in the RSU award agreement, "Liquidity Event" means any Board approved strategic transaction, authorized or approved by Republic's stockholders that results in any of the following: a Change in Control (as defined in the award agreement), an initial public offering, direct listing, special purpose acquisition company, or other acquisition, purchase, merger, consolidation, combination, or similar transaction that the Compensation Committee in its sole discretion deems to be a Liquidity Event. In order to determine the specific number of shares awarded in the 2020 grant, the Board determined a qualified "Liquidity Event" would occur upon the closing of the merger transaction and therefore established a 159% performance multiplier based upon the formulas above and anticipated closing timeline. Upon the effectiveness of the Merger, these awards will become Earned RSUs and fully vest according to the schedule provided below, contingent upon continued employment of the NEOS, as further described below.

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*Vesting of Earned RSUs* 

Earned RSUs vest over the four to five year period following the Grant Date based on the year in which a Liquidity Event occurs, as provided below. If there is no Liquidity Event then all Earned RSUs, if any, vest as of January 1, 2026 (the "Determination Date").

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Vesting by Year** | **Vesting by Year** | **Vesting by Year** | **Vesting by Year** | **Vesting by Year** |
| **Date of Liquidity Event** | **2021** | **2022** | **2023** | **2024** | **2025** |
|  On or before December 31, 2021 | 30% | 30% | 30% | 10% |  |
|  Between January 1, 2022 and December 31, 2022 |  | 30 | 30 | 30 | 10 |
|  Between January 1, 2023 and December 31, 2023 |  |  | 30 | 30 | 40 |
|  Between January 1, 2024 and December 31, 2024 |  |  |  | 30 | 70 |
|  Between January 1, 2025 and December 31, 2025 |  |  |  |  | 100 |

---

*Treatment on Termination* 

See "—*Termination of Employment and Change-in-Control Agreements—RSU Awards*" below for a description of the potential vesting that each of the named executive officers may be entitled to in connection with a Change in Control and certain terminations of employment.

*2025 RSU Awards* 

See "*The Merger—Interests of Republic Directors and Executive Officers in the Merger*" beginning on page 125 of this proxy statement/prospectus for a summary of the RSU awards that were granted to Republic's NEOs following the end of the 2024 fiscal year.

#### Retirement and Other Benefits
Republic's NEOs are eligible to participate in 401(k), disability, medical, and group insurance plans generally available to all its employees. Each NEO is also eligible for an annual physical paid by Republic. As is common in the airline industry, Republic's associates, including its NEOs, and certain family members receive free or reduced-fare travel on other airlines. Republic does not provide any other special benefits or perquisites to any of its NEOs.

#### Summary of Employment Agreements
Below Republic summarizes the employment agreements of its NEOs other than Mr. Pulley who does not have an employment agreement. For further information regarding potential payments upon termination or in relation to a change-in-control, see "—*Termination of Employment and Change-in-Control Arrangements."*

#### Matthew J. Koscal
Republic entered into an amended and restated employment agreement with Mr. Koscal, dated February 8, 2017, as amended November 14, 2017 and November 27, 2017, which sets forth the terms and conditions of his service as Republic's President and Chief Commercial Officer. The initial term of his employment agreement continued until November 30, 2019, and is thereafter automatically renewed for successive one-year periods unless Republic or Mr. Koscal gives written notice to the other at least ninety (90) days prior to the end of the applicable term.

Under the terms of Mr. Koscal's employment agreement, he is entitled to receive an annual base salary of at least $376,000 ($500,000 as of 2024) and has an annual target bonus opportunity under Republic's Annual Incentive Plan equal to 80% of his base salary (100% as of 2024). In any year, the amount of the bonus may be more or less than 100% but not more than 200% of his target annual incentive amount as determined, in its sole

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discretion, by the Compensation Committee based upon certain performance measures approved by the Compensation Committee. Mr. Koscal may also be awarded one or more discretionary bonuses based on individual performance or other factors as determined in the sole discretion of the Compensation Committee. Mr. Koscal's employment agreement also provides for eligibility to participate in Republic's long-term incentive plan and its employee benefit plans. Mr. Koscal is also eligible for an annual physical paid for by Republic and reimbursement for ordinary and necessary business expenses.

#### Joseph P. Allman
Republic entered into an amended and restated employment agreement with Mr. Allman, dated February 8, 2017, as amended November 14, 2017 and November 27, 2017, which sets forth the terms and conditions of his service as Republic's Senior Vice President, Chief Financial Officer. The initial term of his employment agreement continued until November 30, 2019, and is thereafter automatically renewed for successive one-year periods unless Republic or Mr. Allman give written notice to the other at least ninety (90) days prior to the end of the applicable term.

Under the terms of Mr. Allman's employment agreement, he is entitled to receive an annual base salary of at least $376,000 ($486,000 as of 2024) and has an annual target bonus opportunity under Republic's Annual Incentive Plan equal to 80% of his base salary. In any year, the amount of the bonus may be more or less than 100% but not more than 200% of his target annual incentive amount as determined, in its sole discretion, by the Compensation Committee based upon certain performance measures approved by the Compensation Committee. Mr. Allman may also be awarded one or more discretionary bonuses based on individual performance or other factors as determined in the sole discretion of the Compensation Committee. Mr. Allman's employment agreement also provides for eligibility to participate in Republic's long-term incentive plan(s) and its employee benefit plans. Mr. Allman is also eligible for an annual physical paid for by Republic and reimbursement for ordinary and necessary business expenses.

#### Paul K. Kinstedt
Republic entered into an amended and restated employment agreement with Mr. Kinstedt, dated February 8, 2017, as amended November 14, 2017 and November 27, 2017, which sets forth the terms and conditions of his service as Republic's Senior Vice President, Chief Operating Officer. The initial term of his employment agreement continued until May 31, 2019, and is thereafter automatically renewed for successive one-year periods unless Republic or Mr. Kinstedt give written notice to the other at least ninety (90) days prior to the end of the applicable term.

Under the terms of Mr. Kinstedt's employment agreement, he is entitled to receive an annual base salary of at least $376,000 ($486,000 as of 2024) and has an annual target bonus opportunity under Republic's Annual Incentive Plan equal to 80% of his base salary. In any year, the amount of the bonus may be more or less than 100% but not more than 200% of his target annual incentive amount as determined, in its sole discretion, by the Compensation Committee based upon certain performance measures approved by the Compensation Committee. Mr. Kinstedt may also be awarded one or more discretionary bonuses based on individual performance or other factors as determined in the sole discretion of the Compensation Committee. Mr. Kinstedt's employment agreement also provides for eligibility to participate in Republic's long-term incentive plan(s) and its employee benefit plans. Mr. Kinstedt is also eligible for an annual physical paid for by Republic and reimbursement for ordinary and necessary business expenses.

#### Potential Impact on Compensation from NEO Misconduct
If the Board determines that an NEO has engaged in fraudulent or intentional misconduct, the Board could take action to remedy the misconduct, prevent its recurrence, and impose such discipline on the wrongdoer as would be appropriate. Discipline would vary depending on the facts and circumstances, and may include, without

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limitation, (i) termination of employment, (ii) initiation of an action for breach of fiduciary duty, and (iii) if the misconduct resulted in a significant restatement of Republic's financial results, seeking reimbursement of any portion of performance-based or incentive compensation paid or awarded to the executive that is greater than what would have been paid or awarded if calculated based on the restated financial results. These remedies would be in addition to, and not in lieu of, any actions imposed by law enforcement agencies, regulators, or other authorities.

#### Summary Compensation Table
The following table summarizes the compensation for the fiscal year ended December 31, 2024 of Republic's NEOs.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Name and Principal Position** | **Year** | **Salary** | **Non-Equity<br>Annual<br>Incentive Plan<br>Compensation<sup>(1)</sup>** | **Non-Equity<br>Long-Term<br>Incentive Plan<br>Compensation<sup>(2)</sup>** | **All Other<br>Compensation<sup>(3)</sup>** | **Total** |
|  **Matthew J. Koscal** | 2024 | $500000 | $1000000 | $1689945 | $25487 | $3215432 |
|  President and<br> Chief Commercial Officer |  |  |  |  |  |  |
|  **Joseph P. Allman** | 2024 | $486000 | $777600 | $1419628 | $21400 | $2704628 |
|  Senior Vice President and<br> Chief Financial Officer |  |  |  |  |  |  |
|  **Paul K. Kinstedt** | 2024 | $486000 | $777600 | $1419628 | $28142 | $2711370 |
|  Senior Vice President and<br> Chief Operating Officer |  |  |  |  |  |  |
|  **Chad M. Pulley** | 2024 | $425000 | $680000 | $890833 | $23061 | $2018894 |
|  Senior Vice President,<br> General Counsel and Secretary |  |  |  |  |  |  |

---

<sup>(1)</sup> Represents amounts earned in 2024 under the 2024 annual short-term incentive plan. 

<sup>(2)</sup> Represents amounts earned in 2024 in connection with: (i) the retention-based vesting portion of the 2022, 2023, and 2024 annual long-term incentive plan awards; and (ii) the performance-based portion of the 2022 annual long-term incentive plan award. 

<sup>(3)</sup> "All Other Compensation" reflects 401(k) matching contributions as well as certain other employer paid benefits and imputed earnings.

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#### 2024 Grants of Plan-Based Awards
The following table summarizes the potential non-equity incentive plan awards that could have been or could be earned by each of the NEOs at the defined levels of "Threshold," "Target," and "Maximum" based on the awards granted to the NEOs during the fiscal year ended December 31, 2024. No equity or equity-based awards were granted to the NEOs during the fiscal year ended December 31, 2024. The awards granted are described in the footnotes below the table.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | | | **Estimated Payouts Under<br>Non-Equity Incentive Plan Awards** | **Estimated Payouts Under<br>Non-Equity Incentive Plan Awards** | **Estimated Payouts Under<br>Non-Equity Incentive Plan Awards** |
| **Name** |<br>**Approval Date** |<br>**Grant Date** | **Threshold** | **Target** | **Maximum** |
|  Matthew J. Koscal | February 22, 2024<sup>(1)</sup> |  | $250000 | $500000 | $1000000 |
|  | February 22, 2024<sup>(2)</sup> | February 27, 2024 | 250000 | 500000 | 1000000 |
|  | February 22, 2024<sup>(3)</sup> | February 27, 2024 |  | 500000 |  |
|  Joseph P. Allman | February 22, 2024<sup>(1)</sup> |  | $194400 | $388800 | $777600 |
|  | February 22, 2024<sup>(2)</sup> | February 27, 2024 | 224775 | 449550 | 899100 |
|  | February 22, 2024<sup>(3)</sup> | February 27, 2024 |  | 449550 |  |
|  Paul K. Kinstedt | February 22, 2024<sup>(1)</sup> |  | $194400 | $388800 | $777600 |
|  | February 22, 2024<sup>(2)</sup> | February 27, 2024 | 224775 | 449550 | 899100 |
|  | February 22, 2024<sup>(3)</sup> | February 27, 2024 |  | 449550 |  |
|  Chad Pulley | February 22, 2024<sup>(1)</sup> |  | $170000 | $340000 | $680000 |
|  | February 22, 2024<sup>(2)</sup> | February 27, 2024 | 170000 | 340000 | 680000 |
|  | February 22, 2024<sup>(3)</sup> | February 27, 2024 |  | 340000 |  |

---

<sup>(1)</sup> Represents 2024 award opportunities granted under Republic's 2024 annual short-term incentive program as described in Compensation Discussion and Analysis under "*Annual Short-Term Incentive Awards*."

<sup>(2)</sup> Represents the 2024 annual award opportunity under the performance based portion of Republic's long-term incentive program as described in Compensation Discussion and Analysis under "*Long-Term Incentive Awards.*"

<sup>(3)</sup> Represents the 2024 annual award opportunity under the time based portion of Republic's long-term incentive program as described in Compensation Discussion and Analysis under "*Long-Term Incentive Awards*."

#### Outstanding Equity Awards at 2024 Fiscal Year-End
The following table provides information regarding outstanding equity awards made to Republic's NEOs as of December 31, 2024.

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| | | |
|:---|:---|:---|
| **Name** | **Equity Incentive Plan<br>Awards: Number of<br>Unearned Shares, Units, or<br>Other Rights That Have Not<br>Vested (#)<sup>(1)</sup>** | **Equity Incentive Plan<br>Awards: Market Value of<br>Unearned Shares, Units, or<br>Other Rights That Have Not<br>Vested ($)<sup>(2)</sup>** |
|  Mr. Koscal | 4687 | 2812200 |
|  Mr. Allman | 4687 | 2812200 |
|  Mr. Kinstedt | 4687 | 2812200 |
|  Mr. Pulley | 1875 | 1125000 |

---

<sup>(1)</sup> Each of the outstanding equity awards is an RSU award granted pursuant to Republic's Omnibus Incentive Plan on November 25, 2020. These amounts reflect the number of RSUs that could be earned assuming a Liquidity Event on December 31, 2024, a timing multiplier of 125% and a value multiplier of 150%. The terms and conditions (including vesting) of these RSUs are described under "*Long-Term Equity Incentive Compensation*." 

<sup>(2)</sup> Amounts in this column are based on the per share value of Republic common stock as of December 31, 2024 of $600. 

#### Option Exercises and Stock Vested in Fiscal 2024
Republic's NEOs did not exercise any stock options or become vested in any stock awards during 2024.

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#### Defined Benefit and Nonqualified Deferred Compensation Plans
Republic does not maintain any defined benefit or nonqualified deferred compensation plans for its executives.

#### Termination of Employment and Change-In-Control Arrangements
Republic's NEOs (other than Mr. Pulley) have severance agreements which have terms and conditions intended to provide certain payments and benefits upon an involuntary termination of the NEO's employment or the occurrence of certain other circumstances that may affect the NEO, including the NEO's termination of employment following a change in control of Republic.

The table below quantifies the potential payments and benefits that would be provided to each NEO by Republic under each of the termination or change in control circumstances listed. The amounts shown are based on the assumption that the triggering event took place on December 31, 2024, the last business day of 2024.

The amounts shown in the table below do not include:

• payments and benefits to the extent they are provided generally to all salaried employees upon termination of employment or other circumstance and do not discriminate in scope, terms, or operation in favor of the NEOs; and

• distributions of deferred balances under Republic's 401(k) Plan.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Retirement** | **Without<br>Cause or<br>with Good<br>Reason** | **For Cause or<br>by NEO<br>without<br>Good<br>Reason** | **Death or<br>Disability** | **Qualifying<br>Termination<br>and Change in<br>Control<sup>(8)</sup>** |
|  **Mr. Koscal** |  |  |  |  |  |
|  2024 AIP award<sup>(1)</sup> | $1000000 | $1000000 | $1000000 | $1000000 | $1000000 |
|  Vested LTIP awards<sup>(2)</sup> | 1689145 | 1689145 | 1689145 | 1689145 | 1689145 |
|  Accelerated vesting of LTIP awards<sup>(3)</sup> | 588285 | 1301202 |  | 1301202 | 1656753 |
|  Accelerated vesting of RSUs<sup>(4)</sup> | 2812200 | 2812200 |  | 2812200 | 2812200 |
|  Cash severance payment<sup>(5)</sup> |  | 3000000 |  | 3000000 | 3000000 |
|  Health and welfare benefits<sup>(6)</sup> | 59675 | 59675 | 59675 | 59675 | 59675 |
|  Air travel benefits<sup>(7)</sup> | 28487 | 28487 | 28487 | 28487 | 28487 |
|  Total | $6177792 | $9890709 | $2777307 | $9890709 | $10246260 |
|  **Mr. Allman** |  |  |  |  |  |
|  2024 AIP award<sup>(1)</sup> | $777600 | $777600 | $777600 | $777600 | $777600 |
|  Vested LTIP awards<sup>(2)</sup> | 1419628 | 1419628 | 1419628 | 1419628 | 1419628 |
|  Accelerated vesting of LTIP awards<sup>(3)</sup> | 497874 | 1111074 |  | 1111074 | 1430749 |
|  Accelerated vesting of RSUs<sup>(4)</sup> | 2812200 | 2812200 |  | 2812200 | 2812200 |
|  Cash severance payment<sup>(5)</sup> |  | 2527200 |  | 2527200 | 2527200 |
|  Health and welfare benefits<sup>(6)</sup> | 59675 | 59675 | 59675 | 59675 | 59675 |
|  Air travel benefits<sup>(7)</sup> | 28487 | 28487 | 28487 | 28487 | 28487 |
|  Total | $5595464 | $8735864 | $2285390 | $8735864 | $9055539 |
|  **Mr. Kinstedt** |  |  |  |  |  |
|  2024 AIP award<sup>(1)</sup> | $777600 | $777600 | $777600 | $777600 | $777600 |
|  Vested LTIP awards<sup>(2)</sup> | 1419628 | 1419628 | 1419628 | 1419628 | 1419628 |
|  Accelerated vesting of LTIP awards<sup>(3)</sup> | 497874 | 1111074 |  | 1111074 | 1430749 |
|  Accelerated vesting of RSUs<sup>(4)</sup> | 2812200 | 2812200 |  | 2812200 | 2812200 |

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Retirement** | **Without<br>Cause or<br>with Good<br>Reason** | **For Cause or<br>by NEO<br>without<br>Good<br>Reason** | **Death or<br>Disability** | **Qualifying<br>Termination<br>and Change<br>in Control<sup>(8)</sup>** |
|  Cash severance payment<sup>(5)</sup> |  | 2527200 |  | 2527200 | 2527200 |
|  Health and welfare benefits<sup>(6)</sup> | 59675 | 59675 | 59675 | 59675 | 59675 |
|  Air travel benefits<sup>(7)</sup> | 28487 | 28487 | 28487 | 28487 | 28487 |
|  Total | $5595464 | $8735864 | $2285390 | $8735864 | $9055539 |
|  **Mr. Pulley** |  |  |  |  |  |
|  2024 AIP award<sup>(1)</sup> | $680000 | $680000 | $680000 | $680000 | $680000 |
|  Vested LTIP awards<sup>(2)</sup> | 890833 | 890833 | 890833 | 890833 | 890833 |
|  Accelerated vesting of LTIP awards<sup>(3)</sup> | 332614 | 838195 |  | 838195 | 1079969 |
|  Accelerated vesting of RSUs<sup>(4)</sup> | 1125000 | 1125000 |  | 1125000 | 1125000 |
|  Cash severance payment<sup>(5)</sup> |  |  |  |  |  |
|  Health and welfare benefits<sup>(6)</sup> |  |  |  |  |  |
|  Air travel benefits<sup>(7)</sup> |  |  |  |  |  |
|  Total | $3028447 | $3534028 | $1570833 | $3534028 | $3775802 |

---

<sup>(1)</sup> Represents value of the 2024 annual short-term incentive award as included in the Summary Compensation Table payable during the annual bonus payment period. See "*Compensation Discussion and Analysis— Components of* Republic's Executive Compensa*tion Program—Annual Short-Term Incentive Awards*." 

<sup>(2)</sup> Represents the value of the outstanding LTIP awards that vest as of December 31, 2024. The NEO would receive the vested portion of the long-term incentive award earned for 2024 even if his employment terminated prior to the actual cash payout date in 2024. See "*Compensation Discussion and Analysis—Components of Republic's Executive Compensation Program—Annual 2024 Long-Term Incentive Awards*." 

<sup>(3)</sup> Represents the value of the outstanding LTIP awards, assuming target performance is achieved (except for completed performance periods, which are based on actual performance achieved), that were unvested as of December 31, 2024 which would vest upon the termination event in accordance with the terms of the award and the NEO's employment agreement as further described below. To the extent an NEO is party to an employment agreement, treatment of the outstanding LTIP awards will be governed by either the employment agreement or award agreement, whichever is most favorable to the NEO. 

<sup>(4)</sup> The amounts set forth in the "*Retirement*," "*Without Cause or with Good Reason*," *"For Cause or by NEO Without Good Reason," "Death or Disability," and "Change in Control*" columns represent the amounts payable, if any, under the NEO's RSU agreements and any acceleration of vesting as described below. The amount set forth in the *"Change in Control*" column assumes a timing multiplier of 125% and a value multiplier of 150% and acceleration of vesting of the remaining 70% of the RSUs that would not have automatically vested upon the change of control event as described below. 

<sup>(5)</sup> Represents the amounts payable under the NEO's employment agreement as described below. 

<sup>(6)</sup> Represents estimated net present value for two years of medical benefits for Messrs. Koscal, Allman, and Kinstedt.

<sup>(7)</sup> Represents estimated net present value for three years of a prepaid cash card for travel benefits for Messrs. Koscal, Allman, and Kinstedt.

<sup>(8)</sup> Represents the amounts payable upon termination of employment by Republic without "Cause" or by the executive for "Good Reason" in connection with a change in control of Republic. The amounts shown in the "Accelerated vesting of RSUs" row are also payable on a single-trigger basis upon a change in control of Republic. 

#### Employment Agreements
Pursuant to the terms of Republic's employment agreements with its NEOs, other than Mr. Pulley who does not have an employment agreement:

In the event of a termination of Messrs. Koscal, Allman, or Kinstedt's employment by Republic without "Cause" or by the executive for "Good Reason" (each as defined in the employment agreement) other than in connection with a change in control, the executive is entitled to receive a prorated target bonus for the year of termination through the effective date of such termination plus:

• severance compensation in an amount equal to two times his base salary plus two times his annual bonus for the last calendar year, payable in 12 equal monthly installments following the termination date;

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• the aggregate value of all outstanding unvested long-term incentive awards that would have vested in accordance with their terms prior to the first anniversary of the termination date will vest on the termination date (calculated based on performance factors that may already have been achieved or may reasonably be assumed to be achieved and calculable at the time of termination), payable in a lump sum within 14 days of the termination date; and

• any outstanding unvested options that vest in connection with such termination will remain exercisable for one year following the termination date.

The annual LTIP award grants provide that, upon termination of employment described above, the (1) aggregate value of the time vesting portion of all outstanding unvested long-term incentive awards that would have vested in accordance with their terms prior to the first anniversary of the termination date will vest on the termination date paid within 30 days of the termination date and (2) performance vesting portion of all outstanding unvested long-term incentive awards will be prorated based on the number of days worked in the applicable performance cycle through the first anniversary of the termination date will be considered earned and paid at the same time that the awards are paid to the other participants, to the extent earned as determined by the Compensation Committee, but in no event later than March 15 of the applicable year.

The amounts payable to the executives upon a termination of employment described above are subject to execution and non-revocation of a release of claims.

In the event of a termination of Messrs. Koscal, Allman, or Kinstedt's employment by Republic without "Cause" or by the executive for "Good Reason" or a delivery on non-renewal notice (each as defined in the employment agreement) within 18 months following a change in control, the executive will be entitled to receive a prorated target bonus for the year of termination through the effective date of such termination plus the same severance payments as described above; provided that (i) the cash severance compensation will be payable in a lump sum on the first day of the month occurring at least 30 days following the termination date, (ii) the aggregate value of all outstanding unvested long-term incentive awards will vest on the termination date, and (iii) the exercise period for any outstanding options will be 90 days following the termination date.

In the event of a termination of Messrs. Koscal, Allman, or Kinstedt's employment due to death or disability, the executive or the executive's estate will be entitled to receive (i) a prorated target bonus for the year of termination through the effective date of such termination and (ii) an amount in severance compensation equal to two times his base salary plus two times his bonus for the last calendar year, payable in a lump sum on the first day of the month occurring at least 30 days following the termination date and subject to execution and non-revocation of a release of claims. In addition, any unvested equity awards held by the executive will be treated in the same manner as if the executive had been terminated by Republic without "Cause" not in connection with a change in control. The cash severance obligations may be satisfied by Republic purchasing and maintaining one or more insurance policies payable to the executive or his designees. In addition, the outstanding LTIP awards provide for full accelerated vesting (at target for the performance-based portion of the award) upon a termination due to death or disability.

In the event of a termination by Republic of Messrs. Koscal, Allman, or Kinstedt's employment for "Cause" or by the executive without "Good Reason," the executive is not entitled to any compensation following the date of termination of employment, other than payment of his base salary through the date of termination. The executive would also receive the amount of any vested annual short-term annual incentive award and long-term incentive awards.

In the event that Republic gives notice to terminate the executive's employment at the end of the term and an agreement regarding the terms of the executive's employment following the end of the term is not reached, unless otherwise agreed by Republic in writing, the executive will continue to be employed and provide services to it in the same manner as prior to giving of such notice for an additional 90 days following the last day of the term. During this transition period, the executive is entitled to continue to receive base salary, accrue a pro-rata portion

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of the target bonus, continue participation in benefit programs, and continue to be reimbursed for business expenses. During the transition period, any outstanding equity awards will continue to be outstanding and continue to vest. Upon the end of the transition period, the executive is entitled to receive a prorated target bonus for the year of termination through the effective date of such termination plus, (i) one year base salary severance, (ii) the aggregate value of all outstanding unvested long-term incentive and equity awards will vest on the termination date and be paid in a lump sum within 14 days following termination, and (iii) there is no extension of the exercise period for any outstanding unvested options. In the event that Messrs. Koscal, Allman, or Kinstedt gives notice to terminate the executive's employment at the end of the term and an agreement regarding the terms of the executive's employment following the end of the term is not reached, unless otherwise agreed by Republic in writing, the executive will continue to be employed and provide services to Republic in the same manner as prior to giving of such notice for an additional 90 days following the last day of the term. During this transition period, the executive is entitled to continue to receive base salary, accrue a pro-rata portion of the target bonus, continue participation in benefit programs, and continue to be reimbursed for business expenses. During the transition period, any outstanding equity awards will continue to be outstanding and continue to vest. Upon the end of the transition period, the executive is entitled to receive a prorated target bonus for the year of termination through the effective date of such termination plus, (i) one year base salary severance, (ii) the aggregate value of the time vesting portion of all outstanding unvested long-term incentive and equity awards that would have vested in accordance with their terms prior to the first anniversary of the termination date will vest on the termination date paid within 30 days of the termination date, and (iii) the performance vesting portion of all outstanding unvested long-term incentive and equity awards will be prorated based on the number of days worked in the applicable performance cycle through the first anniversary of the termination date will be considered earned and paid at the same time that the awards are paid to the other participants, to the extent earned as determined by the Compensation Committee, but in no event later than March 15 of the applicable year.

If the employment of Messrs. Koscal, Allman, or Kinstedt is terminated for any reason, the executive is entitled to $2,500 and subject to an annual upward inflation adjustment each month for 24 months for the cost of health insurance for himself, his spouse, and his eligible dependents. In addition, if the employment of Messrs. Koscal, Allman, or Kinstedt is terminated for any reason, Republic will provide the executive with a universal prepaid cash card for air travel in the amount of $10,000 annually for a period of three years following termination of employment which the executive, his spouse, and dependents may use for travel.

Under the terms of the employment agreements, Messrs. Koscal, Allman, and Kinstedt are subject to (i) a restrictive covenant not to disclose confidential information while employed and at all times thereafter and (ii) while employed and for one year following termination of employment for any reason, restrictive covenants not to compete with Republic and not to solicit Republic's employees or customers. The executives are also subject to a non-competition covenant during any period when Republic is providing severance compensation.

#### RSU Awards
Pursuant to the terms of the RSU award agreements:

Other than in the circumstances summarized below, upon any termination for any reason, any outstanding unearned RSUs and any Earned RSUs that have not vested, in each case, will be forfeited.

In the event of an NEO's qualifying "Retirement" (as defined in the award agreement) on or prior to the Expiration Date and a Liquidity Event has not occurred, the RSUs will remain outstanding and eligible to vest on the earlier of a Liquidity Event and the Determination Date. If a Liquidity Event occurs after Retirement, the NEO will receive a number of Earned RSUs prorated for the number of months such NEO was employed after the Grant Date. Such Earned RSUs will fully vest on the Liquidity Event date. If no Liquidity Event occurs prior to the Expiration Date, the NEO will receive the number of Earned RSUs as if he had been employed through the Expiration Date prorated for the actual number of months such NEO was employed after the Grant Date. If an

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NEO retires after a Liquidity Event or the Expiration Date, then any then-unvested Earned RSUs that would have vested in the 12 month period following the Retirement Date will immediately vest and the remaining unvested Earned RSUs will be forfeited. However, if a retired NEO becomes a member of the Board, the NEO shall continue vesting until the NEO ceases to be a member of the Board.

In the event of termination by Republic without "Cause" (as defined in the Omnibus Incentive Plan) or by the participant for "Good Reason" (as defined in the award agreement) on or prior to the Expiration Date and a Liquidity Event has not occurred, the NEO will receive the target number of RSUs prorated for the number of months such NEO was employed after the Grant Date plus an additional 12 months and such RSUs will vest immediately upon termination; provided, if, a Liquidity Event occurs within six months of the termination an additional number of RSUs will become Earned RSUs and vest as if the NEO was still employed on the date of the Liquidity Event less any RSUs that already vested on the termination date. If termination is after a Liquidity Event or the Expiration Date, any then-unvested Earned RSUs will immediately vest upon termination.

In the event of an NEO's death or disability prior to the Expiration Date and a Liquidity Event has not occurred, the target number of RSUs will become fully vested Earned RSUs. If an NEO's death or disability occurs following a Liquidity Event or the Expiration Date, any then-unvested Earned RSUs will immediately vest.

In the event Republic does not auto-renew an NEOs employment agreement pursuant to the terms of such employment agreement as described under "*Summary of Employment Agreements*" prior to the Expiration Date and a Liquidity Event has not occurred, the target number of RSUs will become fully vested Earned RSUs. If such termination occurs following a Liquidity Event on or prior to the Expiration Date, any then-unvested Earned RSUs will immediately vest upon termination.

In the event of a termination for cause by Republic, all RSUs, whether Earned RSUs, vested or unvested, will be immediately forfeited.

*Put Right* 

In the event of a termination without Cause by Republic, by the NEO for Good Reason or due to death or disability, or a failure to auto-renew an NEO's employment agreement, an NEO has the right, for 90 days following the later of the termination date or the date six months following settlement of the Earned RSUs, to sell to Republic and Republic will be required to purchase, on one or more occasion, all (but not less than all) of the shares of Republic common stock acquired by such NEO upon settlement of the RSU for fair market value. In the event of an NEO's qualifying Retirement as determined by the Company, an NEO has the right, for 90 days following the later of the six month anniversary of the Retirement date (or if the retired NEO becomes a member of the Board, the six month anniversary of the date the NEO ceases to serve as a member of the Board) or the date six months following settlement of the Earned RSUs, to sell to Republic, and Republic will be required to purchase, on one occasion, all (but not less than all) of the shares of Republic common stock acquired by such NEO upon settlement of the RSU. Republic expects this right to have limited use during any period after an initial public offering.

#### Omnibus Incentive Plan
Republic adopted, and its stockholders approved, Republic's Omnibus Incentive Plan on August 25, 2020. The term "Board of Directors" as used in this "*Omnibus Incentive Plan*" section refers to the Board of Directors of Republic Airways Holdings Inc.

*Purpose* 

The purpose of Republic's Omnibus Incentive Plan is to provide a means through which to attract and retain key personnel and to provide a means whereby its directors, officers, and employees can acquire and maintain an

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equity interest in Republic, or be paid incentive compensation, including incentive compensation measured by reference to the value of Republic's shares of common stock, thereby strengthening their commitment to its welfare and aligning their interests with those of its stockholders.

*Administration* 

Republic's Omnibus Incentive Plan is currently administered by the Compensation Committee of its Board of Directors, or any properly delegated subcommittee thereof, or if no such committee or subcommittee exists, Republic's Board of Directors (such administering body referred to herein, for purposes of this description of the Omnibus Incentive Plan, as the "Committee"). Except to the extent prohibited by applicable law or the applicable rules and regulations of any securities exchange or inter-dealer quotation system on which Republic's securities are listed or traded, the Committee may allocate all or any portion of its responsibilities and powers to any one or more of its members and may delegate all or any part of its responsibilities and powers to any person or persons selected by it in accordance with the terms of Republic's Omnibus Incentive Plan. The Committee is authorized to: (i) designate participants; (ii) determine the type or types of awards to be granted to a participant; (iii) determine the number of shares of common stock or amount of cash to be covered by, or with respect to which payments, rights, or other matters are to be calculated in connection with, awards; (iv) determine the terms and conditions of any award; (v) determine whether, to what extent, and under what circumstances awards may be settled in, or exercised for, cash, shares of common stock, other securities, other awards, or other property, or cancelled, forfeited, or suspended and the method or methods by which awards may be settled, exercised, cancelled, forfeited, or suspended; (vi) determine whether, to what extent, and under what circumstances the delivery of cash, shares of common stock, other securities, other awards, or other property and other amounts payable with respect to an award will be deferred either automatically or at the election of the participant or of the Committee; (vii) interpret, administer, reconcile any inconsistency in, correct any defect in, and/or supply any omission in Republic's Omnibus Incentive Plan and any instrument or agreement relating to, or award granted under, Republic's Omnibus Incentive Plan; (viii) establish, amend, suspend, or waive any rules and regulations and appoint such agents as the Committee may deem appropriate for the proper administration of Republic's Omnibus Incentive Plan; and (ix) make any other determination and take any other action that the Committee deems necessary or desirable for the administration of Republic's Omnibus Incentive Plan. Unless otherwise expressly provided in Republic's Omnibus Incentive Plan, all designations, determinations, interpretations, and other decisions under or with respect to Republic's Omnibus Incentive Plan or any award or any documents evidencing awards granted pursuant to Republic's Omnibus Incentive Plan are within the sole discretion of the Committee, may be made at any time, and are final, conclusive and binding upon all persons or entities, including, without limitation, us, any participant, any holder or beneficiary of any award, and any of Republic's stockholders.

*Awards Subject to Republic's Omnibus Incentive Plan* 

Republic's Omnibus Incentive Plan provides that no more than a number of shares of common stock equal to the excess, if any, of (x) 100,000 minus (y) the number of Treasury Warrant Shares will be available for Awards under the Plan (the "Absolute Share Limit"), where the number of Treasury Warrant Shares is the number of shares of common stock issuable upon exercise of the warrants issued to the U.S. Department of the Treasury in connection with loans granted to Republic or its subsidiaries pursuant to the CARES Act. No more than the number of shares of common stock equal to the Absolute Share Limit may be issued pursuant to the exercise of incentive stock options; and during a single fiscal year, each non-employee director may be granted a number of shares of common stock subject to awards, taken together with any cash fees paid to such non-employee director during the fiscal year, equal to (i) for the lead director or non-executive chairman, a total value of $400,000 and (ii) for other non- employee directors, a total value of $300,000 or, in each case, such higher amount as determined by the Committee in the event that a non-employee director's obligations exceed such non-employee director's regular and customary commitments or calendar of service or are otherwise out of the ordinary course. Except for "Substitute Awards" (as described below), to the extent that an award expires or is cancelled, forfeited, terminated, or otherwise is settled without issuance to the participant of the full number of

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shares of common stock to which the award related, the unissued shares will again be available for grant under Republic's Omnibus Incentive Plan; provided, however, that if any consideration is paid in connection with such cancelation, forfeiture, termination or settlement, such unissued shares shall not again become available for issuance hereunder. Shares of common stock withheld in payment of the exercise price and shares equal to the number of shares surrendered in payment of any exercise price shall be deemed to constitute shares not issued; provided, however, that such shares shall not become available for issuance if either: (i) the applicable shares are withheld or surrendered following the termination of Republic's Omnibus Incentive Plan or (ii) at the time the applicable shares are withheld or surrendered, it would constitute a material revision of Republic's Omnibus Incentive Plan subject to stockholder approval under any then applicable rules of the national securities exchange on which the common stock is listed. No award may be granted under Republic's Omnibus Incentive Plan after the tenth anniversary of the Effective Date (as defined in Republic's Omnibus Incentive Plan), but awards granted before then may extend beyond that date. Awards may, in the sole discretion of the Committee, be granted in assumption of, or in substitution for, outstanding awards previously granted by an entity directly or indirectly acquired by Republic or with which Republic combines, (the "Substitute Awards"), and such Substitute Awards will not be counted against the Absolute Share Limit, except that Substitute Awards intended to qualify as "incentive stock options" will count against the limit on incentive stock options described above. Subject to applicable stock exchange requirements, available shares of common stock under a stockholder-approved plan of an entity directly or indirectly acquired by the Republic or with which Republic combines (as appropriately adjusted to reflect the acquisition or combination transaction) may be used for awards under Republic's Omnibus Incentive Plan and shall not reduce the number of shares of common stock available for issuance under Republic's Omnibus Incentive Plan.

*Options* 

Under Republic's Omnibus Incentive Plan, the Committee may grant non-qualified stock options and incentive stock options with terms and conditions determined by the Committee that are not inconsistent with Republic's Omnibus Incentive Plan; provided, that all stock options granted under Republic's Omnibus Incentive Plan are required to have a per share exercise price that is not less than 100% of the fair market value of a share of its common stock underlying such stock options on the date such stock options are granted (other than in the case of stock options granted in substitution of previously granted awards), and all stock options that are intended to qualify as incentive stock options must be granted pursuant to an award agreement expressly stating that the options are intended to qualify as incentive stock options, and will be subject to the terms and conditions that comply with the rules as may be prescribed by Section 422 of the Code. The maximum term for stock options granted under Republic's Omnibus Incentive Plan will be ten years from the initial date of grant, or with respect to any stock options intended to qualify as incentive stock options, such shorter period as prescribed by Section 422 of the Code. However, if a non-qualified stock option would expire at a time when trading of Republic's shares of common stock is prohibited by its insider trading policy (or "blackout period" imposed by Republic), the term will automatically be extended to the 30th day following the end of such period and if the option period would expire on a non-trading day it will automatically be extended to the next trading day. The exercise price for the shares of common stock as to which a stock option is exercised may be paid to Republic, to the extent permitted by law (i) in cash, check, cash equivalent, and/or shares of common stock valued at the fair market value at the time the option is exercised (including, pursuant to procedures approved by Republic, by means of attestation of ownership of a sufficient number of shares of common stock in lieu of actual issuance of such shares to Republic); provided, that such shares of common stock are not subject to any pledge or other security interest and have been held by the participant for at least six months (or such other period as established from time to time by the Committee in order to avoid adverse accounting treatment applying generally accepted accounting principles) or (ii) by such other method as the Committee may permit in its sole discretion, including, without limitation: (a) in other property having a fair market value on the date of exercise equal to the exercise price, (b) if there is a public market for the shares of common stock at such time, by means of a broker-assisted "cashless exercise" pursuant to which Republic is delivered (including telephonically to the extent permitted by the Committee) a copy of irrevocable instructions to a stockbroker to sell the shares of common stock otherwise issuable upon the exercise of the option and to deliver promptly to Republic an amount equal to the exercise

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price, or (c) a "net exercise" procedure effected by withholding the minimum number of shares of common stock otherwise issuable in respect of an option that is needed to pay the exercise price. Any fractional shares of common stock will be settled in cash.

*Stock Appreciation Rights* 

The Committee may grant SARs under Republic's Omnibus Incentive Plan, with terms and conditions determined by the Committee that are not inconsistent with Republic's Omnibus Incentive Plan. Any option granted may include tandem SARs. The Committee may also award SARs independent of any option. Generally, each SAR will entitle the participant upon exercise to an amount (in cash, shares of common stock, or a combination of cash and shares, as determined by the Committee) equal to the product of (i) the excess of (a) the fair market value on the exercise date of one share of common stock over (b) the strike price per share of common stock covered by the SAR, and (ii) the number of shares of common stock covered by the SAR, less any taxes required to be withheld. The strike price per share of common stock covered by a SAR will be determined by the Committee at the time of grant but in no event may such amount be less than 100% of the fair market value of a share of common stock on the date the SAR is granted (other than in the case of SARs granted in substitution of previously granted awards).

*Restricted Stock and Restricted Stock Units* 

The Committee may grant restricted shares of Republic's shares of common stock or RSUs, representing the right to receive, upon vesting and the expiration of any applicable restricted period, one share of common stock for each RSU, or, in the sole discretion of the Committee, the cash value thereof (or any combination thereof). As to restricted shares of Republic's shares of common stock, subject to the other provisions of Republic's Omnibus Incentive Plan, the holder will generally have the rights and privileges of a stockholder as to such restricted shares of common stock, including, without limitation, the right to vote such restricted shares of common stock.

*Other Equity-Based Awards and Other Cash-Based Awards* 

The Committee may grant other equity-based or cash-based awards under Republic's Omnibus Incentive Plan, with terms and conditions determined by the Committee that are not inconsistent with Republic's Omnibus Incentive Plan.

*Effect of Certain Events on Republic's Omnibus Incentive Plan and Awards* 

In the event of (i) any dividend (other than regular cash dividends) or other distribution (whether in the form of cash, shares of common stock, other securities, or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, split-off, spin-off, combination, repurchase, or exchange of shares of common stock or other securities, issuance of warrants or other rights to acquire shares of common stock or other securities, or other similar corporate transaction or event that affects the shares of common stock (including a "Change in Control," as defined in Republic's Omnibus Incentive Plan); or (ii) unusual or non-recurring events affecting Republic's, including changes in applicable rules, rulings, regulations, or other requirements, that the Committee determines, in its sole discretion, could result in substantial dilution or enlargement of the rights intended to be granted to, or available for, participants (any event in (i) or (ii), an "Adjustment Event"), the Committee will, in respect of any such Adjustment Event, make such proportionate substitution or adjustment, if any, as it deems equitable, to any or all of (a) the Absolute Share Limit, or any other limit applicable under Republic's Omnibus Incentive Plan with respect to the number of awards which may be granted thereunder; (b) the number of Republic's shares of common stock or other of its securities (or number and kind of other securities or other property) which may be issued in respect of awards or with respect to which awards may be granted under Republic's Omnibus Incentive Plan; and (c) the terms of any outstanding award, including, without limitation, (x) the number of Republic's shares of common stock or other of its securities (or number and kind of other securities or other property) subject to outstanding awards or to which outstanding awards relate; (y) the exercise price or strike price with respect to any award; or (z) any applicable performance

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measures; provided, that in the case of any "equity restructuring," (within the meaning of the FASB ASC Topic 718 (or any successor pronouncement thereto)) the Committee will make an equitable or proportionate adjustment to outstanding awards to reflect such equity restructuring. In connection with any Adjustment Event, the Committee may, in its sole discretion, provide for any one or more of the following: (i) substitution or assumption of awards, acceleration of the exercisability of, lapse of restrictions on, or termination of, awards, or a period of time for participants to exercise outstanding awards prior to the occurrence of such event; and (ii) subject to any limitations or reductions as may be necessary to comply with Section 409A of the Code, cancelation of any one or more outstanding awards and payment to the holders of such awards that are vested as of such cancelation (including, without limitation, any awards that would vest as a result of the occurrence of such event but for such cancelation or for which vesting is accelerated by the Committee in connection with such event) the value of such awards, if any, as determined by the Committee (which value, if applicable, may be based upon the price per share of common stock received or to be received by other holders of Republic's shares of common stock in such event), including, without limitation, in the case of stock options and SARs, a cash payment equal to the excess, if any, of the fair market value of the shares of common stock subject to the option or SAR over the aggregate exercise price or strike price thereof, or, in the case of restricted stock, RSUs, or other equity-based awards that are not vested as of such cancelation, a cash payment or equity subject to deferred vesting and delivery consistent with the vesting restrictions applicable to such award prior to cancelation of the underlying shares in respect thereof.

*Nontransferability of Awards* 

No award will be permitted to be assigned, alienated, pledged, attached, sold, or otherwise transferred or encumbered by a participant other than by will or by the laws of descent and distribution and any such purported assignment, alienation, pledge, attachment, sale, transfer, or encumbrance will be void and unenforceable against Republic's or any of its subsidiaries. However, the Committee may, in its sole discretion, permit awards (other than incentive stock options) to be transferred, including transfers to a participant's family members, any trust established solely for the benefit of a participant or such participant's family members, any partnership or limited liability company of which a participant, or such participant and such participant's family members, are the sole member(s), and a beneficiary to whom donations are eligible to be treated as "charitable contributions" for tax purposes.

*Amendment and Termination* 

Republic's Board of Directors may amend, alter, suspend, discontinue, or terminate Republic's Omnibus Incentive Plan or any portion thereof at any time; provided, that no such amendment, alteration, suspension, discontinuance, or termination may be made without stockholder approval if (i) such approval is necessary to comply with any regulatory requirement applicable to Republic's Omnibus Incentive Plan or for changes in GAAP to new accounting standards; (ii) it would materially increase the number of securities which may be issued under Republic's Omnibus Incentive Plan (except for adjustments in connection with certain corporate events); or (iii) it would materially modify the requirements for participation in Republic's Omnibus Incentive Plan; provided, further, that any such amendment, alteration, suspension, discontinuance, or termination that would materially and adversely affect the rights of any participant or any holder or beneficiary of any award will not to that extent be effective without such individual's consent.

The Committee may, to the extent consistent with the terms of any applicable award agreement, waive any conditions or rights under, amend any terms of, or alter, suspend, discontinue, cancel, or terminate, any award granted or the associated award agreement, prospectively or retroactively (including after a Termination); provided, that, except as otherwise permitted in Republic's Omnibus Incentive Plan, any such waiver, amendment, alteration, suspension, discontinuance, cancelation, or termination that would materially and adversely affect the rights of any participant with respect to such award will not to that extent be effective without such individual's consent; provided, further, that without stockholder approval, except as otherwise permitted in Republic's Omnibus Incentive Plan, (i) no amendment or modification may reduce the exercise price of any

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option or the strike price of any SAR; (ii) the Committee may not cancel any outstanding option or SAR and replace it with a new option or SAR (with a lower exercise price or strike price, as the case may be) or other award or cash payment that is greater than the intrinsic value (if any) of the cancelled option or SAR; and (iii) the Committee may not take any other action which is considered a "repricing" for purposes of the stockholder approval rules of any securities exchange or inter-dealer quotation system on which Republic's securities are listed or quoted.

*Dividends and Dividend Equivalents* 

The Committee in its sole discretion may provide as part of an award dividends or dividend equivalents, on such terms and conditions as may be determined by the Committee in its sole discretion. Any dividends payable in respect of restricted stock awards that remain subject to vesting conditions shall be retained by Republic and delivered to the participant within 15 days following the date on which such restrictions on such restricted stock awards lapse and, if such restricted stock is forfeited, the participant shall have no right to such dividends. Dividends attributable to RSUs shall be distributed to the participant in cash or, in the sole discretion of the Committee, in shares of common stock having a fair market value equal to the amount of such dividends, upon the settlement of the RSUs and, if such RSUs are forfeited, the participant shall have no right to such dividends.

*Clawback/Repayment.* 

All awards are subject to reduction, cancelation, forfeiture, or recoupment to the extent necessary to comply with (i) any clawback, forfeiture, or other similar policy adopted by Republic's Board of Directors or the Committee and as in effect from time to time and (ii) applicable law. To the extent that a participant receives any amount in excess of the amount that the participant should otherwise have received under the terms of the award for any reason (including, without limitation, by reason of a financial restatement, mistake in calculations, or other administrative error), the participant will be required to repay Republic any such excess amount.

*Detrimental Activity.* 

If a participant has engaged in any detrimental activity, as defined in Republic's Omnibus Incentive Plan, as determined by the Committee, the Committee may, in its sole discretion, provide for one or more of the following: (i) cancelation of any or all of such participant's outstanding awards or (ii) forfeiture and repayment to Republic of any gain realized on the vesting or exercise of any awards previously granted to such participant.

#### Director Compensation

#### Non-Employee Director Compensation for 2024
The following table sets forth the payment structure for non-employee director compensation for 2024.

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| | |
|:---|:---|
|  Board Cash Retainer | $190000 |
|  Non-Executive Chairman (Additional fee) | 115000 |
|  Audit Committee Chair Retainer | 20000 |
|  Compensation Committee Chair Retainer | 20000 |
|  Audit Committee Member Retainer | 5000 |
|  Compensation Committee Member Retainer | 5000 |
|  Corporate Governance Committee Member Retainer | 5000 |
|  Board and Committee In-person Meeting Fee | 1000 |
|  Board and Committee Telephonic Meeting Fee | 750 |

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The following table provides summary information concerning compensation paid or accrued by Republic to or on behalf of Republic's non-employee directors for services rendered to it during the fiscal year ended December 31, 2024:

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| | | | |
|:---|:---|:---|:---|
| **Name** | **Fees Earned or<br>Paid in Cash<sup>(1)</sup> ($)** | **Stock Awards ($)** | **Total ($)** |
|  Lori A. Gobillot | 228000 | – | 228000 |
|  David Grizzle | 323500 | – | 323500 |
|  Glenn S. Johnson | 231500 | – | 231500 |
|  Ruth Okediji | 214250 | – | 214250 |
|  Barry W. Ridings | 216500 | – | 216500 |
|  James E. Sweetnam | 216500 | – | 216500 |

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<sup>(1)</sup> Mr. Grizzle elected to forego the Corporate Governance Chair Retainer in 2024 and only received the Corporate Governance Committee Member retainer.

<sup>(2)</sup> No equity or equity-based awards were granted to Republic's non-employee directors during the fiscal year ended December 31, 2024. As of December 31, 2024, Ms. Gobillot, Mr. Grizzle, Mr. Johnson, Ms. Okediji, Mr. Ridings, and Mr. Sweetnam held 375, 482, 342, 482, 482, and 482 RSUs, respectively, the terms of which are described below. 

*Outstanding RSU Awards*. On November 25, 2020, Republic granted each of its non-employee directors 482 shares of Republic's restricted Common Stock that immediately vested on the grant date and are subject to holding requirements. Ruth Okediji, who joined Republic's Board of Directors in 2023, received her grant of 482 shares of Republic's restricted Common Stock on December 14, 2023. If there is a Liquidity Event (as defined under "*Compensation Discussion and Analysis—Components of Republic's Executive Compensation Program—Long-Term Incentive Compensation*") prior to December 31, 2025, the holding period related to the restricted stock lapses at the same percentage as the RSUs granted to the NEOs vest (see "Compensation Discussion and Analysis—Components of Republic's Executive Compensation Program—Long-Term Incentive Compensation"). If a Liquidity Event does not occur prior to December 31, 2025, the holding period related to the restricted stock lapses, subject to the put right described below, on March 15, 2026.

In the event that a public market does not exist for the restricted stock and the non-employee director's service is terminated due to the non-employee director not being nominated or elected to serve on the Board, the non-employee director's death or disability or the non-employee director's Retirement (as defined in the award agreement for the restricted stock), the non-employee director has the right, for 90 days following the non-employee director ceasing to be a member of the Board to sell to Republic and Republic shall be required to purchase, on one occasion, all (but not less than all) of the restricted stock for fair market value.

*2025 RSU Awards* 

See "*The Merger—Interests of Republic Directors and Executive Officers in the Merger*" beginning on page 125 of this proxy statement/prospectus for a summary of the RSU awards that were granted to Republic's non-employee directors following the end of the 2024 fiscal year.

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#### MATTERS BEING SUBMITTED TO A VOTE OF MESA STOCKHOLDERS

#### PROPOSAL NO. 1 - THE MERGER PROPOSAL

#### General
This proxy statement/prospectus is being furnished to you as a Mesa stockholder in connection with the solicitation of proxies by the Mesa board of directors for use at the Mesa Special Meeting. At the Mesa Special Meeting, Mesa is asking Mesa stockholders to consider and vote upon a proposal to approve the Merger and all transactions contemplated by the Merger Agreement, including the Merger and Delaware Conversion, pursuant to the Plan of Conversion.

#### The Merger
Based on the number of shares of Mesa common stock outstanding as of , the latest practicable date prior to the date of this proxy statement/prospectus, Mesa expects to issue approximately shares of Mesa common stock to Republic stockholders in connection with the Merger. Subject to the terms and conditions of the Merger Agreement, at the Effective Time, all of the shares of Republic common stock issued and outstanding immediately prior to the Effective Time (other than cancelled shares and dissenting shares held by stockholders who have not voted in favor of, or consented to, the Merger and who have properly demanded appraisal of such shares in accordance with, and have complied in all respects with, Section 262 of the DGCL), shall no longer be outstanding and shall automatically be cancelled and shall cease to exist, in exchange for the right for each Republic stockholder to receive the Merger Consideration, upon the terms and subject to the conditions set forth in the Merger Agreement and in accordance with the applicable provisions of the DGCL and NRS. As Merger Consideration, each share of Republic common stock issued and outstanding immediately prior to the Effective Time (other than cancelled shares and dissenting shares held by stockholders who have not voted in favor of, or consented to, the Merger and who have properly demanded appraisal of such shares in accordance with, and have complied in all respects with, Section 262 of the DGCL), will be automatically converted into the right to receive 584.90 validly issued, fully paid and nonassessable shares of Mesa common stock, with cash (without interest, rounded down to the nearest cent) paid in lieu of any fractional shares. Based on the number of shares of Mesa common stock outstanding as of , the latest practicable date prior to the date of this proxy statement/prospectus, immediately after the Merger, the Pre-Merger Mesa Shareholders are expected to own approximately six percent (6%) of the outstanding shares of common stock of the Surviving Corporation and former Republic stockholders are expected to own approximately eighty-eight percent (88%) of the outstanding shares of common stock of the Surviving Corporation on a fully diluted basis. The remaining six percent (6%) of the outstanding shares of common stock of the Surviving Corporation will be held by the Escrow Agent in the Escrow Account for potential delivery to United Airlines, the Surviving Corporation, and/or the Pre-Merger Mesa Shareholders pursuant to the Escrow Issuance. Whether any of the additional six percent will ultimately be distributed to the Pre-Merger Mesa Shareholders cannot be estimated at this point in time as it is dependent on both (i) the finally determined Net Debt Amount and (ii) the finally determined Surviving Corporation Stock Value, neither of which will be finally determined until after the Closing, as described in detail in the section titled "**Agreements Related to the Merger — the Three Party Agreement** *— Mesa's Delivery of Proposed Final Closing Statement and United Airlines' and the Surviving Corporation's Responses*"

#### The Delaware Conversion
*Plan of Conversion* 

The Merger Agreement also provides for the Delaware Conversion and includes the Plan of Conversion, pursuant to which Mesa will convert from a corporation existing under the laws of the State of Nevada to a corporation existing under the laws of the State of Delaware. As part of the Delaware Conversion, Mesa will adopt a new certificate of incorporation, in the form filed as Exhibit 3.4 to the registration statement of which this proxy statement/prospectus forms a part, and new bylaws, in the form filed as Exhibit 3.5 to the registration

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statement of which this proxy statement/prospectus forms a part, governing Mesa following the Delaware Conversion and incorporating certain other corporate changes discussed below.

To accomplish the Delaware Conversion, the Mesa board of directors has adopted the Plan of Conversion, as set forth in the Merger Agreement. The Plan of Conversion provides, among other things, that (i) Mesa will convert into a Delaware corporation and will thereafter be subject to all of the provisions of the DGCL, (ii) each share of common stock of Mesa-Nevada issued and outstanding immediately prior to the effective time of the Delaware Conversion will be converted automatically into one fully paid, validly issued and nonassessable share of common stock of Mesa-Delaware, and (iii) the Post-Conversion Charter shall be the certificate of incorporation of Mesa (until thereafter amended in accordance with applicable law).

Assuming that Mesa's stockholders approve this Proposal No. 1, Mesa will cause the Delaware Conversion to be effected as soon as practicable after the Closing, but prior to the Effective Time of the Merger, by filing (i) with the Secretary of State of the State of Nevada the Articles of Conversion, and (ii) with the Secretary of State of the State of Delaware (A) the Certificate of Conversion and (B) the Post-Conversion Charter, which will govern Mesa-Delaware as a Delaware corporation. In addition, assuming that Mesa stockholders approve the Merger Proposal and the Delaware Conversion is effected, the Mesa-Delaware board of directors will adopt the "Post-Conversion Bylaws". Approval of the Merger Proposal by Mesa stockholders will constitute approval of the related Plan of Conversion and the Delaware Conversion, and the Post-Conversion Charter.

If the Merger Proposal is approved by Mesa stockholders, the Delaware Conversion would become effective upon the filing (and acceptance thereof by the Secretary of State of the State of Nevada and the Secretary of State of the State of Delaware, as applicable) of the Articles of Conversion, the Certificate of Conversion, and the Post-Conversion Charter.

*Reasons for the Delaware Conversion* 

The corporate laws of the State of Delaware are more comprehensive, widely used and extensively interpreted than the corporate laws of other states, including Nevada. As a result of the flexibility and responsiveness of the Delaware corporate laws to the legal and business needs of corporations, many major corporations have incorporated in Delaware or have changed their corporate domiciles to Delaware in a manner similar to the Delaware Conversion provided for by the Merger Agreement. The Delaware judiciary has become particularly familiar with corporate law matters and a substantial body of court decisions has developed construing the laws of Delaware, thus providing greater clarity and predictability with respect to Mesa's corporate legal and governance affairs. As the owners of Mesa, any benefits provided to Mesa by Delaware law directly benefit Mesa's stockholders. In deciding to propose the Merger and the related Delaware Conversion, the Mesa board of directors considered, among others, the following benefits of Delaware law to Mesa and its stockholders:

• Mesa would be governed by the DGCL, which is generally acknowledged to be the most advanced and flexible corporate statute in the country;

• the responsiveness and efficiency of the Division of Corporations of the Secretary of State of the State of Delaware;

• the Delaware General Assembly, which each year considers and adopts statutory amendments proposed by the Corporation Law Section of the Delaware State Bar Association in an effort to ensure that the corporate statute continues to be responsive to the changing needs of businesses;

• the Delaware Court of Chancery, which has exclusive jurisdiction over matters relating to the DGCL and in which cases are heard by judges, without juries, who have many years of experience with corporate issues, which can lead to quick and effective resolution of corporate litigation; and the Delaware Supreme Court, which is highly regarded; and

• the well-established body of case law construing Delaware law, which has developed over the last century and which provides businesses with a greater degree of predictability than most, if not all, other jurisdictions.

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The Mesa board of directors is not proposing the Merger and the related Delaware Conversion to prevent a change in control of Mesa and, except for the Merger, is not aware of any present attempt by any person to acquire control of Mesa or to obtain representation on the Mesa board of directors.

*Effects of the Delaware Conversion* 

By virtue of the Delaware Conversion, all of the rights, privileges, and powers of Mesa-Nevada, all property, real, personal, and mixed owned by Mesa-Nevada, all debts due to Mesa-Nevada and all other causes of action belonging to Mesa-Nevada immediately prior to the Delaware Conversion will remain vested in Mesa-Delaware following the Delaware Conversion. In addition, by virtue of the Delaware Conversion, all debts, liabilities, and duties of Mesa-Nevada immediately prior to the Delaware Conversion will remain attached to Mesa-Delaware following the Delaware Conversion. Mesa-Delaware will remain as the same entity following the Delaware Conversion, and the Delaware Conversion will not effect any change in Mesa's business, management, or operations or the location of Mesa's principal executive offices.

Upon effectiveness of the Delaware Conversion, (i) each share of Mesa common stock issued and outstanding immediately prior to the effective time of the Delaware Conversion will be automatically converted into one fully paid, validly issued, and nonassessable share of common stock of Mesa-Delaware, without any action on the part of Mesa's stockholders and (ii) each outstanding warrant to purchase a share of Mesa common stock and other equity awards relating to Mesa-Nevada stock, will be deemed to constitute a warrant to purchase the number of shares of common stock of Mesa-Delaware at an exercise price, or equity award, as applicable, as adjusted pursuant to the terms of the warrant or equity award, as applicable. Mesa-Delaware will continue to file periodic reports and other documents as and to the extent required by the rules and regulations of the SEC. After the Delaware Conversion, Mesa-Delaware will continue to be a public reporting company. After the Effective Time, the common stock of the Surviving Corporation is expected to trade on Nasdaq under the symbol "RJET." The shares of Mesa-Delaware stock to be issued upon conversion of shares of Mesa-Nevada in the Delaware Conversion are not being registered under the Securities Act. Mesa is relying on Rule 145(a)(2) under the Securities Act, which provides that a change in the domicile of a corporation does not involve the sale of securities for purposes of the Securities Act. Shares of Mesa common stock that are freely tradeable prior to the Delaware Conversion will continue to be freely tradeable as shares of Mesa-Delaware stock, and shares of Mesa common stock that are subject to restrictions prior to the Delaware Conversion will continue to be subject to the same restrictions as shares of Mesa-Delaware stock. The Delaware Conversion will not change the respective positions of Mesa or its stockholders under federal securities laws.

The Plan of Conversion provides that the Post-Conversion Charter will be the certificate of incorporation of Mesa-Delaware after the Delaware Conversion, and the Post-Conversion Bylaws will be the bylaws of Mesa-Delaware after the Delaware Conversion, in each case, unless and until later amended in accordance with Delaware law.

Upon or immediately after effectiveness of the Delaware Conversion, Mesa directors and officers will become all of the directors and officers of Mesa-Delaware, all of Mesa's employee benefit and incentive plans will become Mesa-Delaware plans, and each option, unit, equity award, or other right issued under such plans will automatically be converted into an option, unit, equity award, or right to purchase or receive the same number of shares of Mesa-Delaware stock, at the same price per share, upon the same terms and subject to the same conditions as before the Delaware Conversion. Stockholders should note that approval of this Merger Proposal and the related Delaware Conversion, will also constitute approval of these plans continuing as plans of Mesa-Delaware. Mesa's employment contracts and other employee benefit arrangements also will be continued by Mesa-Delaware upon the terms and subject to the conditions in effect at the time of the Delaware Conversion. Mesa believes that the Delaware Conversion will not affect any of Mesa's material contracts with any third parties, and that Mesa's rights and obligations under such material contractual arrangements will continue as rights and obligations of Mesa-Delaware.

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*Material U.S. Federal Income Tax Consequences of the Delaware Conversion* 

The following is a summary of the material U.S. federal income tax consequences to U.S. Holders (as defined above under the heading "*Material U.S. Federal Income Tax Consequences of the Merger*") of Mesa-Nevada common stock at the time of the Delaware Conversion. The discussion is based on the Code, Treasury regulations promulgated under the Code, rulings, current administrative interpretations, and official pronouncements of the IRS, and judicial decisions, all as currently in effect and all of which are subject to differing interpretations or to change, possibly with retroactive effect. Any such change or differing interpretation could materially and adversely affect a U.S. Holder.

This summary does not discuss all aspects of U.S. federal income taxation which may be important to particular Mesa stockholders in light of their individual circumstances. For example, it does not consider the effect of any applicable state, local, or non-U.S. tax laws, or any non-income tax laws (such as estate and gift tax laws). In addition, it does not address all aspects of U.S. federal income taxation that may affect particular holders in light of their particular circumstances, including, without limitation, the effect of the Medicare contribution tax on net investment income, the alternative minimum tax, or holders subject to special tax rules, such as partnerships, subchapter S corporations, or other entities that are fiscally transparent for U.S. federal income tax purposes, banks, financial institutions, tax-exempt entities, insurance companies, regulated investment companies, real estate investment trusts, trusts and estates, dealers in stocks, securities or currencies, traders in securities that have elected to use the mark-to-market method of accounting for their securities, persons holding Mesa-Nevada common stock as part of an integrated transaction, including a "straddle," "hedge," "constructive sale," or "conversion transaction," persons whose functional currency for tax purposes is not the U.S. dollar, persons who acquired Mesa-Nevada common stock pursuant to the exercise of stock options or otherwise as compensation, persons whose Mesa-Nevada common stock constitutes qualified business stock with the meaning of Section 1202 of the Code, and persons who are not U.S. Holders.

This discussion does not address the tax consequences of transactions occurring prior to or after the Delaware Conversion (whether or not such transactions are in connection with the Delaware Conversion). This summary only applies to persons who hold Mesa-Nevada common stock and will hold Mesa-Delaware common stock as capital assets (generally, property held for investment) under the Code. Stockholders are urged to consult their tax advisors regarding the United States federal, state, local, and non-U.S. income and other tax considerations of the Delaware Conversion.

Mesa intends that the Delaware Conversion of Mesa from the State of Nevada to the State of Delaware constitutes a "reorganization" within the meaning of Section 368(a) of the Code. Assuming that the Delaware Conversion is treated for U.S. federal income tax purposes as a reorganization, (1) holders of Mesa-Nevada common stock will not recognize any gain or loss as a result of the consummation of the Delaware Conversion, (2) the aggregate tax basis of shares of Mesa-Delaware's common stock received in the Delaware Conversion will be equal to the aggregate tax basis of the shares of Mesa-Nevada's common stock converted therefor, and (3) the holding period of the shares of Mesa-Delaware's common stock received in the Delaware Conversion will include the holding period of the shares of Mesa-Nevada's common stock converted therefor.

No ruling will be sought from the IRS with respect to the U.S. federal income tax consequences of the Delaware Conversion, and no assurance can be given that the U.S. federal income tax consequences described above will not be challenged by the IRS or, if challenged, will be upheld by a court. Accordingly, U.S. holders are urged to consult their tax advisors regarding the tax consequences of the Delaware Conversion.

EACH STOCKHOLDER IS URGED TO CONSULT HIS OR HER OWN TAX ADVISORS TO DETERMINE THE PARTICULAR U.S. FEDERAL TAX CONSEQUENCES TO SUCH STOCKHOLDER OF THE DELAWARE CONVERSION, AS WELL AS THE APPLICABILITY AND EFFECT OF STATE, LOCAL, NON-U.S., AND OTHER U.S. FEDERAL TAX LAWS.

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*Accounting Treatment* 

Mesa expects that the Delaware Conversion will have no effect from an accounting perspective because there is no change in the entity as a result of the Delaware Conversion. As such, the financial statements of Mesa-Nevada previously filed with the SEC will remain the financial statements of Mesa-Delaware following the Delaware Conversion.

*Regulatory Approvals* 

The Delaware Conversion will not be consummated until after Mesa Stockholder Approval of the Merger Proposal is obtained. Mesa will obtain all required consents of governmental authorities, including the filing of the Articles of Conversion, the Certificate of Conversion and the Post-Conversion Charter.

*Rights of Mesa Stockholders Prior to and After the Conversion from the State of Nevada to the State of Delaware* 

As a result of differences between the NRS and the DGCL, as well as differences between the Mesa Charter and Mesa's existing bylaws, on the one hand, and the Post-Conversion Charter and the Post-Conversion Bylaws, on the other hand, the Delaware Conversion will effect changes in the rights of Mesa stockholders. Summarized below are the material differences between the NRS and the DGCL, the Mesa Charter and the Post-Conversion Charter, and Mesa's existing bylaws and the Post-Conversion Bylaws. The summary below does not purport to be a complete statement of the respective rights of Mesa stockholders before and after the Delaware Conversion, and is qualified in its entirety by reference to the NRS and the DGCL, to the Mesa Charter and Mesa's existing bylaws, and to the Post-Conversion Charter and the Post-Conversion Bylaws.

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| **Provision** | **NRS, Mesa-Nevada Charter,<br>and Bylaws** | **DGCL, Post-Conversion<br>Charter, and Post-<br>Conversion Bylaws** | **Other Important**<br> **Provisions** |
| **Amendment of Charter Documents** | The NRS requires that, except with respect to changing a corporation's registered agent, which requires only a filing by the corporation of a statement of change, unless a larger proportion of voting power of the stockholders is provided in the articles of incorporation, the board of directors must adopt a resolution setting forth the amendment proposed and submit the proposed amendment to the stockholders for approval. The approval by a majority of the voting power is generally required to approve an amendment. If any proposed amendment would adversely alter or change any preference or any relative or other right given to any class or series | The DGCL provides that an amendment to the certificate of incorporation must be approved by a corporation's board of directors followed by the affirmative vote of the holders of a majority of the outstanding stock entitled to vote thereon, and a majority of the outstanding stock of each class entitled to vote thereon as a class. The DGCL provides that the affirmative vote of a majority of the holders of the outstanding shares of a particular class is required to approve a proposed amendment if the amendment would increase or decrease the aggregate number of authorized shares of such class (unless such affirmative vote of such holders to amend such increase or decrease is not |  |

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| **Provision** | **NRS, Mesa-Nevada Charter,<br>and Bylaws** | **DGCL, Post-Conversion<br>Charter, and Post-<br>Conversion Bylaws** | **Other Important**<br> **Provisions** |
|  | of outstanding shares, then the amendment must be approved by the vote, in addition to the affirmative vote otherwise required, of the holders of shares representing a majority of the voting power of each class or series adversely affected by the amendment.<br>The NRS also requires that (i) unless otherwise provided in the articles of incorporation, a corporation may (A) decrease the number of issued and outstanding shares of a class or series without decreasing the number of authorized shares of such class or series or (B) amend its articles of incorporation to increase or decrease the authorized number of shares of a class of capital stock, if the board of directors adopts a resolution regarding such action and it is then approved, in the case of a publicly traded corporation, by the affirmative vote of the majority of a quorum of the shares of the affected class or series, or in all other cases, by the affirmative vote of a majority of the voting power of the shares (or such greater proportion provided for in the articles of incorporation), and (ii) unless otherwise provided in the articles of incorporation, a corporation may change the number of shares of a class or series of its authorized stock and the par value of such shares (and thus correspondingly | required by the certificate of incorporation and subject to certain exceptions as set forth in the DGCL), increase or decrease the par value of such shares of such class, or alter or change the powers, preferences, or special rights of the shares of such class so as to affect them adversely. However, unless otherwise expressly required by the certificate of incorporation, (A) no meeting or vote of stockholders shall be required to adopt an amendment to change the corporation's name, delete certain provisions regarding (i) the corporation's incorporator, the initial board of directors or original subscribers for shares or (ii) a change, reclassification, subdivision, combination, or cancellation to the corporation's stock after such change, reclassification, subdivision, combination, or cancellation has become effective, or, under certain circumstances, reclassify by subdividing the issued shares of a class of stock into a greater number of issued shares of the same class of stock (and, in connection therewith, such amendment may increase the number of authorized shares of such class up to an amount proportionate to the stock split) provided the corporation has only 1 class of stock outstanding and such class is not divided into series, and (B) an amendment to increase or |  |

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| **Provision** | **NRS, Mesa-Nevada Charter,<br>and Bylaws** | **DGCL, Post-Conversion<br>Charter, and Post-<br>Conversion Bylaws** | **Other Important**<br> **Provisions** |
|  | change the number of issued and outstanding shares of such stock) by a resolution adopted by the board of directors without the approval of the stockholders. However, if any proposed change to the number of authorized shares would adversely alter or change any preference or any relative or other right given to any class or series of outstanding shares, then the amendment must be approved by the vote of the holders of shares representing a majority of the voting power of each class or series adversely affected by the amendment.<br>The NRS also requires that no stock issued as fully paid up may ever be assessed and the articles of incorporation must not be amended regarding this provision.<br>The Mesa Charter currently authorizes Mesa to issue up to 125,000,000 shares of common stock, and 5,000,000 shares of preferred stock. | decrease the authorized number of shares of a class of capital stock or an amendment to reclassify by combining the issued shares of a class of capital stock into a lesser number of issued shares of the same class of stock may be made and effected, without obtaining the vote or votes of stockholders otherwise required above if: (i) the shares of such class are listed on a national securities exchange immediately before such amendment becomes effective and meet the listing requirements of such national securities exchange relating to the minimum number of holders immediately after such amendment becomes effective, (ii) at a meeting called in accordance with the DGCL, a vote of the stockholders entitled to vote thereon, voting as a single class, is taken for and against the proposed amendment, and the votes cast for the amendment exceed the votes cast against the amendment, and (iii) if the amendment increases or decreases the authorized number of shares of a class of capital stock for which no provision has been made pursuant to the last sentence of Section 242(b)(2) of the DGCL, the votes cast for the amendment by the holders of such class exceed the votes cast against the amendment by the holders of such class. |  |

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| **Provision** | **NRS, Mesa-Nevada Charter,<br>and Bylaws** | **DGCL, Post-Conversion<br>Charter, and Post-<br>Conversion Bylaws** | **Other Important**<br> **Provisions** |
|  |  | <br> The Post-Conversion Charter will authorize Mesa-Delaware to issue up to 5,500,000,000 shares, 5,000,000,000 of which shall be common stock.<br> The Post-Conversion Charter provides that the number of authorized shares of common stock or preferred stock may be increased or decreased (but not below the number of shares thereof then outstanding) by the requisite vote of the stockholders entitled to vote thereon irrespective of the provisions of Section 242(b)(2) of the DGCL, except as may be set forth in the Post-Conversion Charter (including any certificate of designation for a series of preferred stock).<br>|  |
| **Amendment of Bylaws** | The NRS provides that, unless otherwise prohibited by any bylaw adopted by the stockholders, the directors may adopt, amend, or repeal any bylaw, including any bylaw adopted by the stockholders. The articles of incorporation may grant the authority to adopt, amend, or repeal bylaws exclusively to the directors. | Under the DGCL, the power to adopt, amend or repeal the bylaws of a corporation shall be vested in the stockholders entitled to vote thereon, provided that the corporation in its certificate of incorporation may confer such power on the board of directors, although the power vested in the stockholders shall not be divested or limited where the board of directors also has such power.<br>The Post-Conversion Charter confers the power to adopt, amend, or repeal the bylaws on Mesa-Delaware's board of directors.<br>|  |
| **Number of Authorized** | Under the NRS, a corporation may provide in | Under the DGCL, a corporation may provide in |  |

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| **Provision** | **NRS, Mesa-Nevada Charter,<br>and Bylaws** | **DGCL, Post-Conversion<br>Charter, and Post-<br>Conversion Bylaws** | **Other Important**<br> **Provisions** |
| **Directors; Classified Board** | its articles of incorporation or bylaws for the classification of its board of directors, provided that at least one-fourth of the total number of directors is elected annually. | its certificate of incorporation or bylaws for the classification of its board of directors into as many as three classes with staggered terms of office. Neither the Certificate of Incorporation nor the bylaws of Mesa-Delaware provide for a classified board of directors.<br>|  |
| ***Number of Authorized***<br> ***Shares*** | Mesa's existing Charter provides that it is authorized to issue up to 125,000,000 shares of common stock, no par value per share, and up to 5,000,000 shares of preferred stock, no par value per share. | Under the Post-Conversion Charter, Mesa-Delaware will be authorized to issue up to 5,000,000,000 shares of common stock, par value $0.001 per share, and 500,000,000 shares of such preferred stock, par value $0.001 per share. | The total number of shares that Mesa-Delaware will be authorized to issue, as well as the total number of shares of common stock that Mesa-Delaware will be authorized to issue, will be higher than as is provided in Mesa-Nevada's existing Articles of Incorporation.<br>|
| **Filling Vacancies on the Board of Directors** | The NRS provides that all vacancies, including those caused by an increase in the number of directors, may be filled by a majority of the remaining directors, though less than a quorum, unless otherwise provided in the articles of incorporation. NRS provides that unless otherwise provided in the articles of incorporation, upon a resignation by a director, the board of directors may fill the vacancy or vacancies at the time of such resignation, with such director so appointed to hold office during the remainder of the term of office of the resigning director or directors.<br>Mesa's existing Charter and Bylaws are consistent with the NRS regarding board of directors vacancies. | Delaware law provides that, unless otherwise provided in the certificate of incorporation or bylaws of a corporation, vacancies, and newly created directorships resulting from any increase in the authorized number of directors elected by all of the stockholders having the right to vote as a single class may be filled by a majority of the directors then in office, although less than a quorum, or by a sole remaining director. Further, if, at the time of filling any vacancy or newly created directorship, the directors then in office shall constitute less than a majority of the whole board of directors (as constituted immediately prior to any such increase), the Delaware Court of Chancery may, upon application of any stockholder or stockholders |  |

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| **Provision** | **NRS, Mesa-Nevada Charter,<br>and Bylaws** | **DGCL, Post-Conversion<br>Charter, and Post-<br>Conversion Bylaws** | **Other Important**<br> **Provisions** |
|  |  | holding at least 10% of the voting stock at the time outstanding having the<br> right to vote for such directors, summarily order an election to be held to fill any such vacancies or newly created directorships, or to replace the directors chosen by the directors then in office.<br>The Post-Conversion Charter and Post-Conversion Bylaws provide that subject to the rights granted to the holders of any one or more series of preferred stock then outstanding, any newly-created directorship on the Board that results from an increase in the total number of directors and any vacancy occurring in the Board (whether by death, resignation, retirement, disqualification, removal or other cause), shall be filled only by the affirmative vote of a majority of the directors then in office (other than directors elected exclusively by the holders of any series of preferred stock, voting separately as a series or together with one or more such series, as the case may be), although less than a quorum, or by the sole remaining director (other than directors elected exclusively by the holders of any series of preferred stock, by voting separately as a series or together with one or more series, as the case may be) (and not by stockholders).<br>|  |

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| **Provision** | **NRS, Mesa-Nevada Charter,<br>and Bylaws** | **DGCL, Post-Conversion<br>Charter, and Post-<br>Conversion Bylaws** | **Other Important**<br> **Provisions** |
| **Removal of Directors** | The NRS provides that any one or all of the directors of a corporation may be removed by the holders of not less than two-thirds of the voting power of a corporation's issued and outstanding stock. The NRS does not distinguish between removal of directors with or without cause.<br>Mesa's existing Charter and Bylaws are consistent with the NRS regarding removal of directors. | Subject to exceptions applicable to corporations with classified boards of directors and cumulative voting provisions, under the DGCL, directors of a corporation without a classified board of directors may be removed, with or without cause, by the holders of a majority of shares then entitled to vote in an election of directors.<br>The Post-Conversion Charter provides that, subject to any special rights of the holders of one or more series of preferred stock to elect directors, any or all directors (other than those elected exclusively by the holders of any series of preferred stock) may be removed from office at any time, with or without cause, by the affirmative vote of a majority in voting power of all outstanding shares of stock of Mesa-Delaware entitled to vote thereon, voting together as a single class.<br>|  |
| **Interested Party Transactions** | The NRS provides that no contract or transaction between a corporation and one or more of its directors or officers, or between a corporation and any other entity of which one or more of its directors or officers are directors or officers, or in which one or more of its directors or officers have a financial interest, is void or voidable if (a) the director's or officer's interest in the contract or transaction is known to the board of | Under the DGCL, except for a controlling stockholder transaction under Section 144(b) or (c), an act or transaction involving or between a corporation, or one or more of the corporation's subsidiaries, on the one hand, and one or more of its directors or officers, on the other hand, or involving or between a corporation or one or more of the corporation's subsidiaries, on the one hand, and any other |  |

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| **Provision** | **NRS, Mesa-Nevada Charter,<br>and Bylaws** | **DGCL, Post-Conversion<br>Charter, and Post-<br>Conversion Bylaws** | **Other Important**<br> **Provisions** |
|  | directors, committee, or stockholders and the transaction is approved or ratified by the board of directors or committee in good faith without counting the vote of the interested director or officer, or by a vote of stockholders holding a majority of the voting power in good faith, (b) the fact of the common interest is not known to the director or officer at the time the transaction is brought before the board of directors, or (c) the contract or transaction is fair to the corporation at the time it is authorized or approved. | corporation, partnership (general or limited), limited liability company, statutory trust, association, or any other entity or organization in which one or more of its directors or officers are directors, stockholders, partners, managers, members, or officers, or have a financial interest, on the other hand, may not be the subject of equitable relief, or give rise to an award of damages, against a director or officer of the corporation because of the foregoing circumstances or the receipt of any benefit by any such director, officer, entity, or organization or because the director or officer is present at or participates in the meeting of the board of directors or committee thereof which authorizes the act or transaction or was involved in the initiation, negotiation, or approval of the act or transaction (including by virtue of a director's vote being counted for such purpose), if (i) the material facts as to the director's or officer's relationship or interest and as to the act or transaction, including any involvement in the initiation, negotiation, or approval of the act or transaction, are disclosed or are known to all members of the board of directors or a committee of the board of directors, and the board of directors or committee in good faith and without gross negligence authorizes the |  |

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| **Provision** | **NRS, Mesa-Nevada Charter,<br>and Bylaws** | **DGCL, Post-Conversion<br>Charter, and Post-<br>Conversion Bylaws** | **Other Important**<br> **Provisions** |
|  |  | act or transaction by the affirmative votes of a majority of the disinterested directors then serving on the board of directors or such committee (as applicable), even though the disinterested directors be less than a quorum; provided that if a majority of the directors are not disinterested directors with respect to the act or transaction, such act or transaction shall be approved (or recommended for approval) by a committee of the board of directors that consists of 2 or more directors, each of whom the board of directors has determined to be a disinterested director with respect to the act or transaction; (ii) the act or transaction is approved or ratified by an informed, uncoerced, affirmative vote of a majority of the votes cast by the disinterested stockholders, or (iii) the act or transaction is fair as to the corporation and its stockholders.<br>|  |
| ***Stockholder***<br> ***Voting – Quorum*** | The NRS provides that unless the articles of incorporation or bylaws provide otherwise, the majority of the voting power, which includes the voting power that is present in person or by proxy, regardless of whether the proxy has authority to vote on all matters, constitutes a quorum for the transaction of business. | Under the DGCL, in the absence of specification in the certificate of incorporation or bylaws, a majority of shares entitled to vote, present in person or by proxy, constitutes a quorum at a stockholder meeting.<br>The Post-Conversion Bylaws provide that holders of a majority in voting power of the issued and outstanding shares of stock entitled to vote, present in |  |

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| **Provision** | **NRS, Mesa-Nevada Charter,<br>and Bylaws** | **DGCL, Post-Conversion<br>Charter, and Post-<br>Conversion Bylaws** | **Other Important**<br> **Provisions** |
|  | <br> Mesa's existing Bylaws are consistent with the NRS regarding a quorum. | person or represented by proxy, constitutes a quorum at a stockholder meeting.<br>|  |
| **Duration of Proxies** | Under the NRS, a proxy is effective only for a period of six months, unless it is coupled with an interest or unless provided otherwise in the proxy, which duration may not exceed seven years.<br>Mesa's existing Bylaws are consistent with the NRS above regarding proxies.<br>| Under the DGCL, a proxy executed by a stockholder will remain valid for a period of three years, unless the proxy provides for a longer period. |  |
| **Stockholder Vote for Mergers** | Under the NRS, a majority of outstanding shares entitled to vote, as well as approval by the board of directors, is required for a merger or a sale of substantially all of the assets of the corporation.<br>Generally, the NRS does not require a stockholder vote of the surviving corporation in a merger if: (i) the plan of merger does not amend the existing articles of incorporation; (ii) each share of stock of the surviving corporation outstanding immediately before the effective date of the merger is an identical outstanding share after the merger; (iii) the number of voting shares outstanding immediately after the merger, plus the number of voting shares issued as a result of the merger, either by the conversion of securities issued pursuant to the merger or the exercise of rights and warrants issued pursuant to the merger, will not exceed by more than | Subject to several exceptions, under the DGCL, approval by holders of a majority of the voting power of the outstanding shares entitled to vote thereon, as well as approval by the board of directors, is required to approve a merger or a sale, lease, or exchange of all or substantially all of the assets of the corporation. Under one such exception, the DGCL does not require a stockholder vote of the surviving corporation in a merger (unless the corporation provides otherwise in its certificate of incorporation) if: (i) the agreement of merger does not amend in any respect the existing certificate of incorporation; (ii) each share of stock of the surviving corporation outstanding immediately before the effective date of the merger is to be an identical outstanding share or treasury share of the surviving corporation after the effective date of the | Nevada and Delaware law are substantially similar in relation to stockholder approval of mergers and other corporate reorganizations. |

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| **Provision** | **NRS, Mesa-Nevada Charter,<br>and Bylaws** | **DGCL, Post-Conversion<br>Charter, and Post-<br>Conversion Bylaws** | **Other Important**<br> **Provisions** |
|  | 20% the total number of voting shares of the surviving domestic corporation outstanding immediately before the merger; and (iv) the number of participating shares outstanding immediately after the merger, plus the number of participating shares issuable as a result of the merger, either by the conversion of securities issued pursuant to the merger or the exercise of rights and warrants issued pursuant to the merger, will not exceed by more than 20% the total number of participating shares outstanding immediately before the merger.<br>Additionally Nevada law provides that the vote of the shareholders of a publicly traded corporation may not be required if certain conditions are satisfied, including either the offer by the other constituent entity in the merger to purchase all of the outstanding shares of the Nevada corporation entitled to vote on the merger for the consideration provided in the merger agreement or if the other constituent entity owns shares of the Nevada corporation in an amount that would be sufficient to approve the merger if a shareholder vote were taken.<br>| merger; and (iii) either no shares of common stock of the surviving corporation and no shares, securities, or obligations convertible into such stock are to be issued or delivered under the plan of merger, or the authorized unissued shares or the treasury shares of common stock of the surviving corporation to be issued or delivered under the plan of merger plus those initially issuable upon conversion of any other shares, securities, or obligations to be issued or delivered under such plan do not exceed 20% of the shares of common stock of such constituent corporation outstanding immediately prior to the effective date of the merger. |  |
| **Special Meetings of Stockholders** | Under the NRS, unless otherwise provided in the articles of incorporation or bylaws, the entire board of directors, any two directors, | Under the DGCL, a special meeting of stockholders may be called by the board of directors or by such persons as may be | Nevada law provides for the explicit authority of the entire board of directors, any two directors, or the president to call special |

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| **Provision** | **NRS, Mesa-Nevada Charter,<br>and Bylaws** | **DGCL, Post-Conversion<br>Charter, and Post-<br>Conversion Bylaws** | **Other Important**<br> **Provisions** |
|  | or the president may call annual and special meetings of the stockholders.<br>Mesa's existing Bylaws provide that special meetings of the stockholders for any purpose may be called at any time by (i) any two or more directors, (ii) the Chairman of the Board, (iii) the Chief Executive Officer, or (iv) the President. | authorized by the certificate of incorporation or by the bylaws.<br>Under the DGCL, a special meeting of stockholders may be called by the board of directors or by such persons as may be authorized by the certificate of incorporation or by the bylaws.<br>The Post-Conversion Bylaws provide that a special meeting of stockholders may be called only by or at the direction of the Board, the Chair of the Board, the Chief Executive Officer, or, subject to the procedures outlined in the Post-Conversion Bylaws, by the Secretary upon the request of holders of stock of the corporation entitling the holders thereof to not less than 10% of the total voting power of all then outstanding shares of stock of the corporation entitled to vote generally in the election of directors.<br>| meetings, whereas Delaware law leaves discretion to the certificate of incorporation or the bylaws. |
| ***Stockholder***<br> ***Action by***<br> ***Written Consent*** | The NRS provides that, unless the articles of incorporation or bylaws provide otherwise, any action required or permitted to be taken at a meeting of the stockholders may be taken without a meeting if the stockholders holding shares representing at least a majority of the voting power sign a written consent, except that if a different proportion of voting power is required for such action at a meeting, then that | Under the DGCL, unless the certificate of incorporation provides otherwise, any action required or permitted to be taken at a meeting of the stockholders may be taken without a meeting, without prior notice and without a vote, if a consent or consents, setting forth the action so taken, shall be signed by the holders of outstanding stock having not less than the minimum number of votes that would be necessary to authorize or |  |

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| **Provision** | **NRS, Mesa-Nevada Charter,<br>and Bylaws** | **DGCL, Post-Conversion<br>Charter, and Post-<br>Conversion Bylaws** | **Other Important**<br> **Provisions** |
|  | proportion of written consents is required.<br>Under Mesa's existing bylaws, no action shall be taken by the stockholders except at an annual or special meeting of stockholders called and noticed in the manner required by the bylaws, nor may the stockholders take action by written consent in lieu of a meeting of stockholders. | take such action at a meeting at which all shares entitled to vote thereon were present and voted and shall be delivered to the corporation in the manner required by Section 228. In addition, the DGCL requires the corporation to give prompt notice of the taking of the action by less than unanimous consent to those stockholders as of the record date for the action by consent who have not consented and who would have been entitled to notice of the meeting if the action had been taken at a meeting and the record date of the notice of the meeting were the record date for the action by consent.<br>The Post-Conversion Charter provides that any action required or permitted to be taken by the stockholders must be effected at an annual or special meeting of stockholders called in accordance with the Post-Conversion Bylaws, and no action shall be taken by the stockholders by written consent in lieu of a meeting unless such action is recommended by all of the directors of Mesa-Delaware then in office; provided, however, that holders of preferred stock may take action by written consent if expressly permitted by the certificate of designation relating to their series.<br>|  |

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| **Provision** | **NRS, Mesa-Nevada Charter,<br>and Bylaws** | **DGCL, Post-Conversion<br>Charter, and Post-<br>Conversion Bylaws** | **Other Important**<br> **Provisions** |
| **Failure to Elect Directors** | The NRS provides that if a corporation fails to elect directors within 18 months after the last election of directors, a Nevada district court will have jurisdiction in equity and may order an election upon petition of one or more stockholders holding at least 15% of the voting power. | Under the DGCL, if an annual meeting for election of directors is not held or directors have not been elected by written consent in lieu of an annual meeting within 30 days after the date designated for the annual meeting, or if no date has been designated, for a period of 13 months after the latest to occur of the organization of the corporation, its last annual meeting or the last action by written consent to elect directors in lieu of an annual meeting, the Court of Chancery may summarily order a meeting to be held upon the application of any stockholder or director.<br>| Delaware law provides for a shorter interval than Nevada law (13 months versus 18 months) before a stockholder can apply to a court to order a meeting for the election of directors. Nevada law requires that application be made by a stockholder holding at least 15% of the voting power, whereas Delaware law permits any stockholder or director to make the application. |
| **Advance Notice Procedures for Business to be Brought by a Stockholder at a Meeting** | The NRS does not have any statutory requirement with regard to advance notice procedures required of stockholders in order to properly bring business before a meeting of stockholders. Federal securities laws generally provide that any stockholder that wishes to include a proposal in a company's proxy materials must be received not less than 120 days in advance of the anniversary of the date on which the information statement was sent out in connection with the previous year's annual meeting of stockholders. | The DGCL does not set forth specific advance notice procedures required of stockholders in order to properly bring business before a meeting of stockholders.<br>The Post-Conversion Bylaws provide that for nominations for election to the Board to be properly brought before an annual meeting by a stockholder, the stockholder must deliver written notice to the Secretary at the principal executive offices of Mesa-Delaware not less than ninety (90) days nor more than one hundred and twenty (120) days prior to the first anniversary of the date of the preceding year's annual meeting. | Federal securities laws generally provide that any stockholder that wishes to include a proposal in a company's proxy materials must be received not less than 120 days in advance of the anniversary of the date on which the information statement was sent out in connection with the previous year's annual meeting of stockholders. |

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| **Provision** | **NRS, Mesa-Nevada Charter,<br>and Bylaws** | **DGCL, Post-Conversion<br>Charter, and Post-<br>Conversion Bylaws** | **Other Important**<br> **Provisions** |
|  |  | <br> However, if the date of the annual meeting is advanced by more than thirty (30) days or delayed by more than seventy (70) days from the anniversary date of the previous year's meeting, or if no annual meeting required to be held was held in the preceding year, notice by the stockholder to be timely must be delivered not earlier than the close of business on the one hundred and twentieth (120th) day prior to such annual meeting and not later than the close of business on the later of the ninetieth (90th) day prior to such annual meeting or the tenth (10th) day following the day on which public announcement of the date of such meeting is first made by Mesa-Delaware.<br>No adjournment or postponement or notice of adjournment or postponement of any meeting shall be deemed to constitute a new notice of such meeting for purposes of the notice period.<br>|  |
| **Adjournment of Stockholder Meetings** | Under the NRS, a corporation is not required to give any notice of an adjourned meeting or of the business to be transacted at an adjourned meeting, other than by announcement at the meeting at which the adjournment is taken, unless the board of directors fixes a new record date for the adjourned meeting. The board of directors must fix a new record date if the meeting is adjourned or | Under the DGCL, unless the bylaws otherwise require, when a meeting is adjourned, notice need not be given of the adjourned meeting if the time, place, if any, thereof, and the means of remote communications, if any, by which stockholders and proxy holders may be deemed to be present in person and vote at such adjourned meeting are (i) announced at the meeting at which the adjournment is | Delaware law requires companies to provide stockholders of record entitled to vote with notice of the new record date for an adjourned meeting. |

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| **Provision** | **NRS, Mesa-Nevada Charter,<br>and Bylaws** | **DGCL, Post-Conversion<br>Charter, and Post-<br>Conversion Bylaws** | **Other Important**<br> **Provisions** |
|  | postponed to a date more than 60 days later than the meeting date set for the original meeting. | taken, (ii) displayed during the time scheduled for the meeting on the electronic network used to convene the meeting by remote communication, or (iii) set forth in the notice of meeting. However, if the adjournment is for more than 30 days, a notice of the adjourned meeting shall be sent to each stockholder of record entitled to vote at the meeting; and if after the adjournment a new record date for stockholders entitled to vote is fixed for the adjourned meeting, the board of directors shall fix a new record date for notice of such adjourned meeting and shall give notice of the adjourned meeting in accordance with the DGCL, and shall give notice of the adjourned meeting to each stockholder of record entitled to vote at such adjourned meeting as of the record date fixed for notice of such adjourned meeting. At the adjourned meeting, the corporation may transact any business which might have been transacted at the original meeting.<br>|  |
| **Stockholder Inspection Rights** | Under the NRS, only a stockholder of record who owns at least 15% of the corporation's issued and outstanding shares of stock, or has been authorized in writing by holders of at least 15% of such issued and outstanding shares, is entitled to inspect and make copies of the corporation's financial records. This provision does not apply to | Under the DGCL, any stockholder of record or beneficial owner has the right, subject to certain limitations, to inspect and copy for any proper purpose (defined as reasonably related to such person's interest as a stockholder) the corporation's stock ledger, list of its stockholders, and its other books and records (as defined in Section 220 of the DGCL). | Delaware law is less restrictive regarding stockholder inspection of the company's books and records. |

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| **Provision** | **NRS, Mesa-Nevada Charter,<br>and Bylaws** | **DGCL, Post-Conversion<br>Charter, and Post-<br>Conversion Bylaws** | **Other Important**<br> **Provisions** |
|  | any corporation that furnishes to its stockholders a detailed, annual financial statement or any corporation that has filed during the preceding 12 months all reports required to be filed pursuant to section 13 or section 15(d) of the Exchange Act.<br>|  |  |
| **Limitation on Director and Officer Liability** | Under the NRS, unless the articles of incorporation or an amendment thereto (filed on or after October 1, 2003) provides for greater individual liability, a director or officer is not individually liable to the corporation or its stockholders or creditors for any damages as a result of any act or failure to act in his or her capacity as a director or officer unless (a) the presumption that the director or officer acted in good faith, on an informed basis and with a view to the interests of the corporation has been rebutted; and (b) it is proven that: (i) the director's or officer's act or failure to act constituted a breach of his or her fiduciary duties as a director or officer; and (ii) the breach of those duties involved intentional misconduct, fraud, or a knowing violation of law. Under the NRS, directors who make unlawful distributions to stockholders are jointly and severally liable, at any time within 3 years after each violation, to the corporation and, in the event of its dissolution or insolvency, to its creditors at | Under Delaware law, if a corporation's certificate of incorporation so provides, the personal liability of a director or certain officers (as specified in Section 102(b)(7) of the DGCL) for breach of fiduciary duty as a director or officer may be eliminated or limited; provided, however, that a corporation's certificate of incorporation may not limit or eliminate personal liability (a) for a director or officer for any breach of the director's or officer's duty of loyalty to the corporation or its stockholders, (b) for a director or officer for acts or omissions not in good faith or involving intentional misconduct or a knowing violation of law, (c) for a director for the payment of unlawful dividends, stock repurchases, or redemptions, or (d) for a director or officer for any transaction in which the director received an improper personal benefit, or (e) for an officer in any action by or in the right of the corporation.<br>The provisions of the Post-Conversion Charter are consistent with the DGCL | Delaware law is more extensive in the enumeration of actions under which a company may not eliminate a director's personal liability. |

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| **Provision** | **NRS, Mesa-Nevada Charter,<br>and Bylaws** | **DGCL, Post-Conversion<br>Charter, and Post-<br>Conversion Bylaws** | **Other Important**<br> **Provisions** |
|  | the time of the violation, or any of them, to the lesser of the full amount of the distribution made or of any loss sustained by the corporation by reason of such distribution, unless such director dissented at the meeting approving such action or upon learning of such action.<br>| regarding limitation of liability. |  |
| **Indemnification** | Under the NRS, a corporation may indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit, or proceeding, whether civil, criminal, administrative, or investigative, except an action by or in the right of the corporation, by reason of the fact that the person is or was a director, officer, employee, or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust, or other enterprise, against expenses, including attorneys' fees, judgments, fines and amounts paid in settlement actually and reasonably incurred by the person in connection with the action, suit, or proceeding if the person: (a) is not liable pursuant to NRS 78.138; or (b) acted in good faith and in a manner which he or she reasonably believed to be in or not opposed to the best interests of the corporation, and, with | Under the DGCL, a corporation may indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative, or investigative by reason of the fact that the person is or was a director, officer, employee, or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust, or other enterprise, against, in the case of non-derivative actions, expenses (including attorneys' fees), judgments, fines, and amounts paid in settlement, and in the case derivative actions, expenses (including attorneys' fees), in each case, actually and reasonably incurred by the person in connection with such action, suit or proceeding if: (in the case of non-derivative actions) the person acted in good faith and in a manner the person reasonably believed to be in or not opposed to the best | The indemnification provisions of the NRS and the DGCL are substantially similar as both the NRS and the DGCL generally permits a corporation to indemnify officers, directors, employees, and agents for actions taken in good faith and in a manner they reasonably believed to be in, or not opposed to, the best interests of the corporation and, with respect to any criminal action, which they had no reasonable cause to believe that such conduct was unlawful. |

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| **Provision** | **NRS, Mesa-Nevada Charter,<br>and Bylaws** | **DGCL, Post-Conversion<br>Charter, and Post-<br>Conversion Bylaws** | **Other Important**<br> **Provisions** |
|  | respect to any criminal action or proceeding, had no reasonable cause to believe the conduct was unlawful. However, indemnification may not be made for any claim, issue, or matter as to which such a person has been adjudged to be liable to the corporation or for amounts paid in settlement to the corporation, unless and only to the extent that the court in which the action or suit was brought determines upon application that in view of all the circumstances, the person is fairly and reasonably entitled to indemnity for such expenses as the court deems proper. To the extent that such person has been successful on the merits or otherwise in defense of any proceeding subject to the Nevada indemnification laws, the corporation shall indemnify him or her against expenses, including attorneys' fees, actually and reasonably incurred by him or her in connection with the defense. | interests of the corporation, and, with respect to any criminal action or proceeding, had no reasonable cause to believe the person's conduct was unlawful and (in the case of the defense or settlement of derivative actions) the person acted in good faith and in a manner the person reasonably believed to be in or not opposed to the best interests of the corporation and except that no indemnification shall be made in respect of any claim, issue, or matter as to which such person shall have been adjudged to be liable to the corporation unless and only to the extent that the Delaware Court of Chancery or the court in which such action or suit was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses which the Delaware Court of Chancery or such other court shall deem proper. A director or officer who is successful, on the merits or otherwise in defending any action, suit, or proceeding referenced above or defending any claim, issue, or matter therein, shall be indemnified against expenses (including attorneys' fees) actually and reasonably incurred by such person in connection therewith.<br>|  |

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| **Provision** | **NRS, Mesa-Nevada Charter,<br>and Bylaws** | **DGCL, Post-Conversion<br>Charter, and Post-<br>Conversion Bylaws** | **Other Important**<br> **Provisions** |
| **Advancement of Expenses** | The NRS provides that the articles of incorporation, the bylaws or an agreement made by the corporation may provide that the expenses of officers and directors incurred in defending a civil or criminal action, suit, or proceeding must be paid by the corporation as they are incurred and in advance of the final disposition of the action, suit, or proceeding, upon receipt of an undertaking by or on behalf of the director or officer to repay the amount if it is ultimately determined by a court of competent jurisdiction that the director or officer is not entitled to be indemnified by the corporation. | Under the DGCL, expenses (including attorney's fees) incurred by an officer or director of the corporation in defending any civil, criminal, administrative, or investigative action, suit, or proceeding may be paid by the corporation in advance of the final disposition of such action, suit, or proceeding upon receipt of an undertaking by or on behalf of such director or officer to repay such amount if it is ultimately determined that such person is not entitled to be indemnified by the corporation as authorized under the indemnification laws of Delaware. Such expenses incurred by former directors and officers or other employees and agents of the corporation or by persons serving at the request of the corporation as directors, officers, employees, or agents of another corporation, partnership, joint venture, trust, or other enterprise may be so paid upon such terms and conditions as the corporation deems appropriate. Under Delaware law, unless otherwise provided in its certificate of incorporation or bylaws, a corporation has the discretion whether or not to advance expenses.<br>|  |
| **Business Combination Statute** | The NRS prohibits certain business combinations between a Nevada corporation and an interested stockholder of a corporation for two years | Section 203 of the DGCL generally prohibits, subject to several exceptions and exclusions, a "business combination" (as defined under Section 203 of the | Nevada law and Delaware law provide for different thresholds in determining whether or not a person is an "interested stockholder." Under Delaware law, since |

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| **Provision** | **NRS, Mesa-Nevada Charter,<br>and Bylaws** | **DGCL, Post-Conversion<br>Charter, and Post-<br>Conversion Bylaws** | **Other Important**<br> **Provisions** |
|  | after such holder becomes an interested stockholder of such corporation (the "Business Combination Statute"), unless such corporation's articles of incorporation expressly elect not to be governed by the Business Combination Statute. Generally, an interested stockholder is a holder who is the beneficial owner of 10% or more of the voting power of a corporation's outstanding stock and, at any time within three years immediately before the date in question, was the beneficial owner of 10% or more of the then outstanding stock of the corporation. After the three-year period, business combinations remain prohibited unless they are (a) approved by the board of directors prior to the date that the person first became an interested stockholder or by a majority of the outstanding voting power not beneficially owned by the interested party, or (b) the interested stockholder satisfies certain fair-value requirements. An interested stockholder is (i) a person that beneficially owns, directly or indirectly, 10% or more of the voting power of the outstanding voting shares of a corporation, or (ii) an affiliate or associate of the corporation who, at any time within the past three years, was an interested stockholder of the corporation. | DGCL) between the corporation or certain of its subsidiaries and an "interested stockholder" (as defined under Section 203 of the DGCL) for a period of three years after the stockholder becomes an "interested stockholder." Generally, and subject to exceptions, an "interested stockholder" is a holder who, directly or indirectly, controls 15% or more of the outstanding voting stock (as such term is defined in Section 203 of the DGCL) or is an affiliate or associate (as such terms are defined in Section 203 of the DGCL) of the corporation and was the owner of 15% or more of the outstanding voting stock at any time within the three-year period prior to the date upon which the status of an "interested stockholder" is being determined. The foregoing limitation on business combinations does not apply where, among other things, (i) the transaction which resulted in the individual becoming an interested stockholder is approved by the corporation's board of directors before such stockholder became an interested stockholder, (ii) upon consummation of the transaction which resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the outstanding voting stock of the corporation (subject to | the threshold is higher, Mesa-Delaware will be able to engage in certain transactions with stockholders that would otherwise be prohibited under Nevada law. |

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| **Provision** | **NRS, Mesa-Nevada Charter,<br>and Bylaws** | **DGCL, Post-Conversion<br>Charter, and Post-<br>Conversion Bylaws** | **Other Important**<br> **Provisions** |
|  |  | exclusions) at the time the transaction commenced, or (iii) at or after the date the person becomes an interested stockholder, the business combination is approved by a majority of the board of directors of the corporation and an affirmative vote of at least 66 2/3% of the outstanding voting stock at an annual or special meeting and not by written consent, excluding stock owned by the interested stockholder. This provision also does not apply if, among other exclusions, a stockholder acquires a 15% interest inadvertently and divests itself of such ownership as soon as practicable and would not have been a 15% stockholder in the preceding three years but for the inadvertent acquisition of ownership. A Delaware corporation may opt out of Section 203 in its certificate of incorporation or a stockholder approved bylaw. Mesa-Delaware has not opted out of the protections of Section 203 of the DGCL. As a result, the statute will apply to Mesa-Delaware.<br>|  |
| ***Control Share Acquisition***<br> ***Statute*** | The NRS limits the rights of persons acquiring a controlling interest in a Nevada corporation with 200 or more stockholders of record, at least 100 of whom have Nevada addresses appearing on the stock ledger of the corporation, and that does business in | Delaware does not have a control share acquisition statute. See "Business Combination Statute" above for a description of Section 203 of the DGCL regarding business combinations with interested stockholders. | Delaware law provides less protection to companies whose stockholders acquire a controlling interest and who otherwise meet requirements analogous to those set forth the NRS control share acquisition statute. |

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| **Provision** | **NRS, Mesa-Nevada Charter,<br>and Bylaws** | **DGCL, Post-Conversion<br>Charter, and Post-<br>Conversion Bylaws** | **Other Important**<br> **Provisions** |
|  | Nevada directly or through an affiliated corporation. A "controlling interest" is deemed to be the direct or indirect power to exercise at least (i) one-fifth or more but less than one-third, (ii) one-third or more but less that a majority, or (iii) a majority or more of the voting power of the stockholders in the election of directors. An "acquisition" means, with certain exceptions, the direct or indirect acquisition of a controlling interest. Under the NRS, an "acquiring person" that acquires a controlling interest in such a corporation may not exercise voting rights on any control shares unless such voting rights are conferred on such person by a majority vote of the disinterested stockholders of the corporation at a special or annual meeting of the stockholders. In the event that the control shares are accorded full voting rights and the acquiring person acquires control shares with a majority or more of all the voting power, any stockholder, other than the acquiring person, that does not vote in favor of authorizing voting rights for the control shares is entitled to demand payment for the fair value of such person's shares.<br>The control share acquisition statute does not apply if the corporation opts out of such provision in the |  |  |

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| **Provision** | **NRS, Mesa-Nevada Charter,<br>and Bylaws** | **DGCL, Post-Conversion<br>Charter, and Post-<br>Conversion Bylaws** | **Other Important**<br> **Provisions** |
|  | articles of incorporation or bylaws in effect on the tenth day following the acquisition of a controlling interest by an acquiring person.<br>|  |  |
| **Appraisal or Dissenters' Rights** | Under the NRS, stockholders have the right, in some circumstances (including, unless otherwise provided in the articles of incorporation or bylaws of a corporation, when a controlling interest has been acquired by an acquiring person (as defined above)), to dissent from certain corporate actions and to instead demand payment of the fair value of their shares.<br>Unless otherwise provided in the articles of incorporation or board of director resolutions approving the plan of merger, conversion or exchange, stockholders do not have appraisal rights with respect to shares of any class or series of stock if such shares of stock are, among other things,<br>(i) listed on a national securities exchange; or (ii) traded in an organized market and held by at least 2,000 stockholders of record and have a market value of at least $20,000,000, exclusive of the value of such shares held by a corporation's subsidiaries, senior executives, directors, and beneficial stockholders owning more than 10% of such shares; or (iii) issued by an open-end management | Under the DGCL, a stockholder who has neither voted in favor of certain mergers, consolidations, or conversions of a corporation to another entity, nor consented thereto in writing, who has properly demanded appraisal of their shares, and who otherwise complies with the requirements for perfecting and preserving their appraisal rights under Section 262 of the DGCL may be entitled to receive payment in cash for the fair value of their shares (exclusive of any element of value arising from the accomplishment or expectation of such merger, consolidation, or conversion), together with interest (if any) to be paid on the amount determined to be fair value of such shares, as appraised by the Court of Chancery of the State of Delaware in an appraisal proceeding. However, unless the corporation's certificate of incorporation provides otherwise, appraisal rights are not available for shares of capital stock that, at the record date for determination of stockholders entitled to receive notice of the meeting of stockholders (or at the record date for determination of |  |

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| **Provision** | **NRS, Mesa-Nevada Charter,<br>and Bylaws** | **DGCL, Post-Conversion<br>Charter, and Post-<br>Conversion Bylaws** | **Other Important**<br> **Provisions** |
|  | investment company registered under the Investment Company Act of 1940, as amended, unless the stockholders receive in exchange for their shares anything other than cash, or shares of any class or any series of shares of any corporation, or any other proprietary interests of any other entity, that is, among other things, listed on a national securities exchange or traded in an organized market and held by at least 2,000 stockholders of record with market value of at least $20,000,000, exclusive of the value of such shares held by corporation's subsidiaries, senior executives, directors, and beneficial stockholders owning more than 10% of such shares at the time the corporate action becomes effective. Both stockholders of record and beneficial stockholders are entitled to dissenters' rights.<br>| stockholders entitled to consent pursuant to Section 228 of the DGCL) to act upon the merger, consolidation, or conversion, are either (a) listed on a national securities exchange or (b) held of record by more than 2,000 holders. Further, unless the corporation's certificate of incorporate provides otherwise, no appraisal rights are available to stockholders of the surviving corporation as provided in Section 251(f) of the DGCL.<br>Notwithstanding the foregoing, appraisal rights are available if stockholders are required to accept for their shares anything other than (a) shares of capital stock of the surviving corporation (or of the converted entity if such entity is a corporation), (b) shares of capital stock of another corporation that will either be listed on a national securities exchange or held of record by more than 2,000 holders, (c) cash in lieu of fractional shares or (d) any combination of clauses (a) – (c). Appraisal rights are also available under the DGCL in certain other circumstances, including in certain parent- subsidiary mergers and in certain circumstances where the certificate of incorporation so provides. Neither the Post-Conversion Charter nor the Post-Conversion Bylaws provide |  |

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| **Provision** | **NRS, Mesa-Nevada Charter,<br>and Bylaws** | **DGCL, Post-Conversion<br>Charter, and Post-<br>Conversion Bylaws** | **Other Important**<br> **Provisions** |
|  |  | for appraisal rights in any additional circumstance other than as required by applicable law.<br>|  |
| **Taxes and Fees** | Nevada charges corporations incorporated in Nevada an annual $500 business license fee and an annual list filing fee based on capitalization of Mesa. Fees range from $75 to a maximum of $35,000. | Subject to exceptions, Delaware imposes annual franchise tax fees on corporations incorporated in Delaware. The annual fee generally ranges from $175 to a maximum of $250,000, based on an equation whose inputs include either the corporation's total number of authorized shares or the corporation's assumed par value, as indicated by the corporation's gross assets and total issued shares. |  |

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#### The Escrow Issuance
The Merger Agreement also provides for the Escrow Issuance, upon the terms and subject to the conditions of the Three Party Agreement and the Escrow Agreement.

If the Merger Proposal and the Nasdaq Stock Issuance Proposal are approved by the Mesa stockholders and the Merger is consummated, Mesa will conduct the Escrow Issuance promptly following the Closing (and in all events immediately following the Effective Time). If the Net Debt Amount remains a positive number as of the Closing, then the Escrow Assets with an aggregate dollar amount equal to the Net Debt Amount will be distributed first to United Airlines. If any Escrow Assets remain after the United Entitlement, such Escrow Assets will be distributed to the Surviving Corporation to satisfy certain additional liabilities, if any, of the Surviving Corporation. Any Escrow Assets that remain after satisfying the United Entitlement and the Surviving Corporation Entitlement will be distributed to the Pre-Merger Mesa Shareholders on a pro rata basis to the extent of any remaining. Immediately after the Merger, the shares of common stock of the Surviving Corporation issued in the Escrow Issuance are expected to represent six percent (6%) of the outstanding shares of common stock of the Surviving Corporation on a fully diluted basis.

The Escrow Assets will be held by the Escrow Agent pursuant to and governed by the terms of the Three Party Agreement and the Escrow Agreement, and will be distributed by the Escrow Agent to United Airlines, the Surviving Corporation, and/or the Pre-Merger Mesa Shareholders, as applicable, in accordance with the provisions of the Merger Agreement, the Three Party Agreement and the Escrow Agreement.

The terms of, reasons for and other aspects of the Escrow Issuance are described in detail in the sections of this proxy statement/prospectus titled "*The Merger Agreement – The Escrow Issuance*" and "*Agreements Related to the Merger – The Three Party Agreement*." Copies of the Three Party Agreement and the Escrow Agreement are filed as Exhibit 10.15 and Exhibit 10.36 to the registration statement of which this proxy statement/prospectus forms a part, respectively.

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#### Effect of Vote for the Merger Proposal
After careful consideration, the Mesa board of directors, unanimously determined that the Merger and all transactions contemplated by the Merger Agreement, including the Delaware Conversion and the Escrow Issuance, on the terms and subject to the conditions set forth in the Merger Agreement, are advisable and fair to, and in the best interests of, Mesa and its stockholders, and approved the Merger Agreement and all transactions contemplated thereby, including the Merger, the Delaware Conversion and the Escrow Issuance. A vote in favor of the Merger Proposal is a vote in favor of the Merger and all transactions contemplated by the Merger Agreement, including the Delaware Conversion and the Escrow Issuance.

#### Effect of Not Obtaining the Required Vote for Approval
If Mesa fails to obtain the requisite vote of stockholders for approval of the Merger Proposal, the Merger, and related Delaware Conversion will not be consummated, and Mesa will continue to be incorporated in Nevada and governed by the NRS, the Mesa Charter, and Mesa's existing bylaws, and the Escrow Issuance will not be affected.

#### Required Vote
Assuming a quorum is present at the Mesa Special Meeting, approval of the Merger Proposal requires the affirmative vote of the holders of a majority of the outstanding shares of Mesa common stock entitled to vote thereon at the Mesa Special Meeting. Any shares not present or represented by proxy (including due to the failure of a Mesa stockholder who holds shares in "street name" through a bank, broker, or other nominee to provide voting instructions with respect to any proposals at the Mesa Special Meeting to such bank, broker, or other nominee) will have the same effect as a vote "AGAINST" the Merger Proposal, provided that a quorum is otherwise present. An abstention or other failure of any shares present or represented by proxy to vote on the Merger Proposal will be counted as a vote "AGAINST" the Merger Proposal for the purposes of the requirement that the Merger Proposal receive the affirmative vote of the holders of a majority of the outstanding shares of Mesa common stock entitled to vote thereon at the Mesa Special Meeting. In addition, if a Mesa stockholder who holds shares in "street name" through a bank, broker, or other nominee provides voting instructions for one or more other proposals, but not for the Merger Proposal, it will have the same effect as a vote "AGAINST" the Merger Proposal.

#### THE MESA BOARD OF DIRECTORS RECOMMENDS THAT MESA STOCKHOLDERS

#### VOTE "FOR" THE MERGER PROPOSAL.

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#### PROPOSAL NO. 2 — THE NASDAQ STOCK ISSUANCE PROPOSAL

#### General
At the Mesa Special Meeting, Mesa stockholders will be asked to approve (i) the issuance of shares of Mesa common stock (a) to the stockholders of Republic pursuant to the Merger Agreement, which shares of Mesa common stock will represent more than 20% of the shares of Mesa common stock outstanding immediately prior to the Merger, and (b) in respect of the Escrow Shares, which shall ultimately be distributed to one or more of United Airlines, the Surviving Corporation, or the Pre-Merger Mesa Shareholders, pursuant to the terms of the Merger Agreement and the Three Party Agreement and (ii) the change of control arising from the issuance of shares in connection with the Merger and the Escrow Issuance, pursuant to Nasdaq Listing Rules 5635(a) and 5635(b), respectively.

Immediately after the Merger, the Pre-Merger Mesa Shareholders are expected to own approximately six percent (6%) of the outstanding shares of the Surviving Corporation on a fully-diluted basis, and former Republic securityholders are expected to own approximately eighty-eight (88%) of the outstanding shares of the Surviving Corporation on a fully- diluted basis, subject to certain assumptions. The Pre-Merger Mesa Shareholders will have the contingent right to receive, on a pro rata basis, up to an additional six percent (6%) of the issued and outstanding shares of the Surviving Corporation, subject to certain conditions. Whether any of the additional six percent will ultimately be distributed to the Pre-Merger Mesa Shareholders cannot be estimated at this point in time as it is dependent on both (i) the finally determined Net Debt Amount and (ii) the finally determined Surviving Corporation Stock Value, neither of which will be finally determined until after the Closing, as described in detail in the section titled "*Agreements Related to the Merger — the Three Party Agreement — Mesa's Delivery of Proposed Final Closing Statement and United Airlines' and the Surviving Corporation's Responses*"

The terms of, reasons for and other aspects of the Merger Agreement, the Merger, and the issuance of Mesa common stock in the Merger are described in detail in the section of this proxy statement/prospectus titled "*The Merger Agreement*." A copy of the Merger Agreement is attached as *Annex A* to this proxy statement/prospectus.

#### Reason for the Proposal
Under Nasdaq Listing Rule 5635(a)(1), a company listed on Nasdaq is required to obtain stockholder approval prior to the issuance of common stock, among other things, in connection with the acquisition of another company's stock, if the number of shares of common stock to be issued is in excess of 20% of the number of shares of common stock then outstanding. The potential issuance of the shares of Mesa common stock in the Merger exceeds the 20% under the Nasdaq Listing Rules and is expected to represent approximately 88%, or 94% including the Escrow Shares, of Mesa common stock on a fully diluted basis immediately following the Merger. Accordingly, in order to ensure compliance with Nasdaq Listing Rule 5635(a)(1), Mesa must obtain the approval of Mesa stockholders for the issuance of these shares of common stock in the Merger.

Under Nasdaq Listing Rule 5635(b), a company listed on Nasdaq is required to obtain stockholder approval prior to an issuance of stock that will result in a "change of control" of the listed company. It is expected that Nasdaq will determine that the Merger constitutes a "change of control" of the listed company. Accordingly, in order to ensure compliance with Nasdaq Listing Rule 5635(b), Mesa must obtain the approval of Mesa stockholders of the change of control arising from the issuance of shares in connection with the Merger and the Escrow Issuance.

Mesa must also obtain the approval of Mesa stockholders for the issuance of the Escrow Shares pursuant to the terms of the Merger Agreement.

#### Required Vote
The affirmative vote of a majority of the votes cast by the holders of Mesa common stock at the Mesa Special Meeting is required to approve the Nasdaq Stock Issuance Proposal. Abstentions and broker-non votes, if any, will have no effect on the outcome of the vote on the Nasdaq Stock Issuance Proposal.

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The Merger is conditioned upon the approval of the Nasdaq Stock Issuance Proposal. Notwithstanding the approval of the Nasdaq Stock Issuance Proposal, if the Merger is not consummated for any reason, the actions contemplated by the Nasdaq Stock Issuance Proposal will not be effected.

Unless otherwise instructed, it is the intention of the persons named in the accompanying proxy card to vote shares represented by properly executed proxy cards "**FOR**" the approval of the Nasdaq Stock Issuance Proposal.

#### THE MESA BOARD OF DIRECTORS RECOMMENDS A VOTE "FOR" THE NASDAQ STOCK ISSUANCE PROPOSAL.

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#### PROPOSAL NO. 3 — THE ADVISORY COMPENSATION PROPOSAL

#### General
As required by Item 402(t) of Regulation S-K and Section 14A of the Exchange Act, Mesa is providing its stockholders with the opportunity to cast a non-binding, advisory vote to approve certain compensation payments that will or may be made to three of Mesa's named executive officers, Jonathan G. Ornstein, Michael J. Lotz, and Brian S. Gillman, in connection with the Merger, as disclosed pursuant to Item 402(t) of Regulation S-K in the "Advisory Compensation" table and the footnote to that table contained in the section captioned "*The Merger —Interests of Mesa's Directors and Officers in the Merger.*"

Mesa believes that those certain compensation payments that will or may be made to three of Mesa's named executive officers in connection with the Merger are reasonable and further the goals of Mesa's executive compensation program by ensuring the retention of talented executive officers and aligning their interests with the long-term interests of Mesa's stockholders.

Mesa asks that its stockholders vote "**FOR**" the following resolution:

**"RESOLVED, that certain compensation payments that will or may be made to Jonathan G. Ornstein, Michael J. Lotz, and Brian S. Gillman, three of Mesa's named executive officers in connection with the Merger, as disclosed pursuant to Item 402(t) of Regulation S-K in the "Advisory Compensation" table and the footnote to that table contained in the section captioned "The Merger — Interests of Mesa's Directors and Officers in the Merger — Advisory Compensation," is hereby APPROVED on a non-binding, advisory basis."** 

This vote is advisory and, therefore, it will not be binding on Mesa, nor will it overrule any prior decision or require the Mesa board of directors (or any committee thereof) to take any action. Accordingly, regardless of the outcome of the advisory vote, Mesa's named executive officers may be or become entitled to certain compensation payments in connection with the Merger, as disclosed in this proxy statement/prospectus. However, the Mesa board of directors values the opinions of Mesa's stockholders, and to the extent that there is any significant vote against the Advisory Compensation Proposal, the Mesa board of directors will consider Mesa's stockholders' concerns and will evaluate whether any actions are necessary to address those concerns. The Mesa board of directors will consider the vote of a majority of the votes cast "**FOR**" the foregoing resolution as non-binding, advisory approval of certain compensation arrangements that will or may be made to Mesa's named executive officers in connection with the Merger.

#### Required Vote
The approval of the Advisory Compensation Proposal requires the affirmative vote of the holders of a majority of votes cast by the Mesa stockholders at the Mesa Special Meeting. Accordingly, abstentions and broker non-votes, if any, will have no effect on the outcome of the Advisory Compensation Proposal.

The Merger is not conditioned upon the approval of the Advisory Compensation Proposal.

#### THE MESA BOARD OF DIRECTORS RECOMMENDS A VOTE "FOR" THE ADVISORY COMPENSATION PROPOSAL.

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#### PROPOSAL NO. 4 — THE EQUITY PLAN PROPOSAL

#### General
At the Mesa Special Meeting, Mesa will ask its stockholders to approve the 2025 Equity Incentive Plan to be effective on the Closing Date. The 2025 Equity Incentive Plan was approved by Mesa's board of directors on July 8, 2025, subject to stockholder approval and the consummation of the Merger. The 2025 Equity Incentive Plan is intended to replace the Mesa 2018 Equity Incentive Plan and as well as the Republic Omnibus Incentive Plan for awards granted after the Merger is consummated. If the 2025 Equity Incentive Plan is approved by stockholders and the Merger is consummated, no further awards will be granted under the Mesa 2018 Equity Incentive Plan.

The purpose of the 2025 Equity Incentive Plan is to promote and closely align the interests of employees, officers, non-employee directors and other individual service providers of the Surviving Corporation and its stockholders by providing stock-based compensation and other performance-based compensation. The objectives of the 2025 Equity Incentive Plan are to attract and retain the best available employees, officers, non-employee directors, and other individual service providers for positions of substantial responsibility and to motivate participants to optimize the profitability and growth of the Surviving Corporation through incentives that are consistent with the Surviving Corporation's goals and that link the personal interests of participants to those of the Surviving Corporation's stockholders. The 2025 Equity Incentive Plan allows for the grant of stock options, stock appreciation rights ("SARs"), restricted stock, restricted stock units ("RSUs"), other stock-based awards, and incentive bonuses, collectively referred to herein as "Awards."

#### Summary of the 2025 Equity Incentive Plan
The following description of the 2025 Equity Incentive Plan is not intended to be complete and is qualified in its entirety by the complete text of the 2025 Equity Incentive Plan, a copy of which is filed as Exhibit 10.37 to the registration statement of which this proxy statement/prospectus forms a part. Stockholders are urged to read the 2025 Equity Incentive Plan in its entirety.

Awards under the 2025 Equity Incentive Plan may be granted to any (i) individual employed by the Surviving Corporation or its subsidiaries (other than those U.S. employees covered by a collective bargaining agreement unless and to the extent that such eligibility is set forth in such collective bargaining agreement or similar agreement); (ii) director or officer of the Surviving Corporation or its subsidiaries; or (iii) consultant or advisor to the Surviving Corporation or its subsidiaries who may be offered securities registrable pursuant to a registration statement on Form S-8 under the Securities Act.

The 2025 Equity Incentive Plan will be administered by the compensation committee of the Surviving Corporation board of directors (the "Board") or such other committee of the Board to which it has properly delegated power, or if no such committee or subcommittee exists, the Board (the "Administrator").

The 2025 Equity Incentive Plan initially reserves shares for issuance (without giving effect to any reverse stock split).

All awards granted under the 2025 Equity Incentive Plan will vest and/or become exercisable in such manner and on such date or dates or upon such event or events as determined by the Administrator. Awards available for grant under the 2025 Equity Incentive Plan include, non-qualified stock options and incentive stock options, restricted shares of the Surviving Corporation's common stock, restricted stock units, other equity-based awards tied to the value of the Surviving Corporation's shares, and cash-based awards.

Awards other than cash-based awards are generally subject to adjustment in the event of (i) any dividend (other than regular cash dividends) or other distribution, recapitalization, stock split, reverse stock split,

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reorganization, merger, consolidation, split-up, split-off, spin-off, combination, repurchase or exchange of shares of common stock or other securities, or other similar transactions or events, or (ii) unusual or nonrecurring events affecting the Surviving Corporation, including changes in applicable rules, rulings, regulations or other requirement. In addition, in connection with any change in control, the Administrator may, in its sole discretion, provide for any one or more of the following: (i) a substitution or assumption of, acceleration of the vesting of, the exercisability of, or lapse of restrictions on, any one or more outstanding awards and (ii) cancellation of any one or more outstanding awards and payment to the holders of such awards that are vested as of such cancellation (including any awards that would vest as a result of the occurrence of such event but for such cancellation) the value of such awards, if any, as determined by the Administrator.

The Board may amend, alter, suspend, discontinue, or terminate the 2025 Equity Incentive Plan or any portion thereof at any time, but no such amendment, alteration, suspension, discontinuance, or termination may be made without stockholder approval if (i) such approval is required under applicable law; (ii) it would materially increase the number of securities which may be issued under the 2025 Equity Incentive Plan (except for adjustments in connection with certain corporate events); or (iii) it would materially modify the requirements for participation in the 2025 Equity Incentive Plan. Any such amendment, alteration, suspension, discontinuance, or termination that would materially and adversely affect the rights of any participant or any holder or beneficiary of any award will not to that extent be effective without such individual's consent.

All awards granted under the 2025 Equity Incentive Plan are subject to reduction, cancellation, forfeiture, or recoupment to the extent necessary to comply with (i) any clawback, forfeiture, or other similar policy adopted by the board of directors or the Administrator and as in effect from time to time and (ii) applicable law.

#### Federal Income Tax Consequences
The following is a summary of the U.S. federal income tax treatment applicable to the Surviving Corporation and the participants who receive Awards under the 2025 Equity Incentive Plan based on the federal income tax laws in effect on the date of this proxy statement/prospectus. This summary is not intended to be exhaustive and does not address all matters relevant to a particular participant based on their specific circumstances. The summary expressly does not discuss the income tax laws of any state, municipality, or non-U.S. taxing jurisdiction, or the gift, estate, excise (including the rules applicable to deferred compensation under Section 409A of the Code), or tax laws other than U.S. federal income tax law. Because individual circumstances may vary, each participant is urged to consult their own tax advisor concerning the tax implications of Awards granted under the 2025 Equity Incentive Plan.

#### Incentive Stock Options
Options granted under the 2025 Equity Incentive Plan may be either incentive stock options, which are intended to satisfy the requirements of Section 422 of the Code, or non-qualified stock options, which are not intended to meet such requirements. No taxable income is recognized by the optionee at the time of the option grant, and no taxable income is recognized for ordinary income tax purposes at the time the option is exercised, although taxable income may arise at that time for alternative minimum tax purposes. Unless there is a "disqualifying disposition", as described below, the optionee will recognize long-term capital gain in an amount equal to the excess of (i) the amount realized upon the sale or other disposition of the purchased shares over (ii) the exercise price paid for the shares. A disqualifying disposition occurs if the disposition is less than two years after the date of grant or less than one year after the exercise date. If there is a disqualifying disposition of the shares, then the excess of (i) the fair market value of those shares on the exercise date or (if less) the amount realized upon such sale or disposition over (ii) the exercise price paid for the shares will be taxable as ordinary income to the optionee. Any additional gain or loss recognized upon the disposition will be a capital gain or loss. If the optionee makes a disqualifying disposition of the purchased shares, then the Surviving Corporation will be entitled to an income tax deduction for the taxable year in which such disposition occurs equal to the amount of

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ordinary income recognized by the optionee as a result of the disposition. The Surviving Corporation will not be entitled to any income tax deduction if the optionee makes a qualifying disposition of the shares.

#### Nonqualified Stock Options
No taxable income is recognized by an optionee upon the grant of a non-qualified stock option. The optionee in general will recognize ordinary income, in the year in which the option is exercised, equal to the excess of the fair market value of the purchased shares on the exercise date over the exercise price paid for the shares, and the optionee will be required to satisfy the tax withholding requirements applicable to such income. The Surviving Corporation will be entitled to an income tax deduction equal to the amount of ordinary income recognized by the optionee with respect to the exercised non-qualified stock option.

#### Stock Appreciation Rights
No taxable income is recognized upon receipt of a SAR. The participant will recognize ordinary income in the year in which the SAR is exercised, in an amount equal to the excess of the fair market value of the underlying shares of common stock on the exercise date over the base price in effect for the exercised right, and the participant will be required to satisfy the tax withholding requirements applicable to such income. The Surviving Corporation will be entitled to an income tax deduction equal to the amount of ordinary income recognized by the participant in connection with the exercise of the SAR.

#### Restricted Stock Awards
A participant who receives unvested shares of Surviving Corporation common stock will not recognize any taxable income at the time those shares are granted but will have to report as ordinary income, as and when those shares subsequently vest, an amount equal to the excess of (i) the fair market value of the shares on the vesting date over (ii) the cash consideration (if any) paid for the shares. The participant may, however, elect under Section 83(b) of the Code to include as ordinary income in the year the unvested shares are issued an amount equal to the excess of (a) the fair market value of those shares on the issue date over (b) the cash consideration (if any) paid for such shares. If the Section 83(b) election is made, the participant will not recognize any additional income as and when the shares subsequently vest. The Surviving Corporation will be entitled to an income tax deduction equal to the amount of ordinary income recognized by the participant at the time such ordinary income is recognized by the participant.

#### Restricted Stock Units, Other Stock-Based Awards, Incentive Bonuses
Generally, no taxable income is recognized upon the grant of RSUs, other stock-based awards or incentive bonuses. The participant will recognize ordinary income in the year in which the award is settled in shares or cash. The amount of that income will be equal to the fair market value of the shares on the date of issuance or the amount of the cash paid in settlement of the award, and the participant will be required to satisfy the tax withholding requirements applicable to the income. The Surviving Corporation will be entitled to an income tax deduction equal to the amount of ordinary income recognized by the participant at the time the shares are issued or the cash amount is paid.

#### Deductibility of Executive Compensation
Section 162(m) of the Code limits the deductibility for federal income tax purposes of certain compensation paid to any "covered employee" in excess of $1 million. It is expected that compensation deductions for any covered employee with respect to awards granted under the 2025 Equity Incentive Plan will be subject to the $1 million annual deduction limitation. The Administrator of the 2025 Equity Incentive Plan may grant Awards under the 2025 Equity Incentive Plan or otherwise that are or may become non-deductible when it believes doing so is in the best interests of the Surviving Corporation and its stockholders.

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#### New Plan Benefits
Mesa cannot currently determine the benefits or number of shares subject to Awards that may be granted in the future to eligible participants under the 2025 Equity Incentive Plan because the grant of Awards and terms of such Awards are to be determined in the sole discretion of the Administrator of the 2025 Equity Incentive Plan.

#### Required Vote
The affirmative vote of a majority of votes cast by the holders of Mesa common stock at the Mesa Special Meeting is required to approve the Equity Plan Proposal. Abstentions and broker non-votes, if any, will have no effect on the Equity Plan Proposal.

The Merger is not conditioned upon the approval of the Equity Plan Proposal.

#### THE MESA BOARD OF DIRECTORS RECOMMENDS A VOTE "FOR" THE EQUITY PLAN PROPOSAL.

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#### PROPOSAL NO. 5 — THE ADJOURNMENT PROPOSAL

#### General
If Mesa fails to receive a sufficient number of votes to approve Proposal Nos. 1 through 4, Mesa may propose to adjourn the Mesa Special Meeting, for a period of not more than 60 days, for the purpose of soliciting additional proxies to approve Proposal Nos. 1 through 4. Mesa currently does not intend to propose adjournment at the Mesa Special Meeting if there are sufficient votes to approve Proposal Nos. 1 through 4.

If a quorum is not present at the Mesa Special Meeting, under Mesa's second amended and restated bylaws, as amended, the holders of voting stock representing a majority of the voting power present at the meeting or the presiding officer may adjourn the special meeting.

#### Required Vote
The affirmative vote of a majority of the shares of Mesa common stock entitled to vote at the Mesa Special Meeting, present in person or represented by proxy, is required to approve the Adjournment Proposal. Abstentions and broker non-votes, if any, will have the effect of a vote "AGAINST" the Adjournment Proposal.

The Merger is not conditioned upon the approval of the Adjournment Proposal.

Unless otherwise instructed, it is the intention of the persons named in the accompanying proxy card to vote shares "FOR" the Adjournment Proposal.

#### THE MESA BOARD OF DIRECTORS RECOMMENDS A VOTE "FOR" THE ADJOURNMENT PROPOSAL.

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#### MESA'S BUSINESS

#### Overview
Headquartered in Phoenix, Arizona, Mesa is the holding company of Mesa Airlines, a regional air carrier providing scheduled passenger service to 79 cities in 31 states, Cuba, and Mexico. As of June 30, 2025, Mesa operated a fleet of 60 E175 regional aircraft with approximately 254 daily departures. As of June 30, 2025, Mesa also had 21 CRJ-900 airframes and 34 CRJ-900 engines held for sale. The aircraft in Mesa's fleet were operated as United Express pursuant to the terms of the United CPA. Except as set forth in the following sentence, all of Mesa's consolidated contract revenues for the three and nine months ended June 30, 2025 and June 30, 2024 were derived from operations associated with the United CPA, leases of aircraft to a third party, and MPD. Revenues during the nine months ended June 30, 2024 also included $7.2 million in revenues derived from the DHL FSA, which terminated in March 2024. Additionally, Mesa's leases of aircraft to a third party terminated upon the sale of such aircraft to United Airlines during the nine months ended June 30, 2025.

The United CPA involves a revenue-guarantee arrangement whereby United Airlines pays fixed-fees for each aircraft under contract, departure, flight hour (measured from takeoff to landing, excluding taxi time) or block hour (measured from takeoff to landing, including taxi time), and reimbursement of certain direct operating expenses in exchange for providing flight services. United Airlines also pays certain expenses directly to suppliers, such as fuel, ground operations, and landing fees. Under the terms of the United CPA, United Airlines controls route selection, pricing, and seat inventories, reducing Mesa's exposure to fluctuations in passenger traffic, fare levels, and fuel prices.

Regional aircraft are optimal for short- and medium-haul scheduled flights that connect outlying communities with larger cities and act as "feeders" for domestic and international hubs. In addition, regional aircraft are well suited to serve larger city pairs during off-peak times when load factors on larger jets are low. The lower trip costs and operating efficiencies of regional aircraft, along with the competitive nature of the CPA bidding process, provide significant value to major airlines.

#### Mesa's Strategy
Mesa's business strategy consists of the following elements:

#### Maintain Low-Cost Structure
Mesa has established itself as a low cost provider of regional airline and cargo flight services. Mesa intends to continue its disciplined cost control approach through responsible outsourcing of certain operating functions, by flying large regional aircraft with associated lower maintenance costs and common flight crews across fleet types, and through the diligent control of corporate and administrative costs by implementing company-wide efforts to improve its cost structure.

#### Attractive Work Opportunities
Mesa believes its employees have been, and will continue to be, a key to Mesa's success. Mesa intends to continue to offer competitive compensation packages, foster a positive and supportive work environment and provide opportunities to fly state-of-the-art, large-gauged regional jets to differentiate Mesa from other carriers and make Mesa an attractive place to work and build a career.

#### Aircraft Fleet
As of June 30, 2025, Mesa only flies large regional jets manufactured by Embraer S.A. ("Embraer"), specifically the E175 aircraft, all of which are owned by United Airlines.

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As of June 30, 2025, Mesa had 81 aircraft (owned and leased) consisting of the following:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Embraer <br>Regional <br>Jet-175 <br>(70-76 seats)** | **Canadair<br>Regional <br>Jet-700 <br>(50-70 seats)** | **Canadair<br>Regional <br>Jet-900 <br>(76-79 seats)** | **Total** |
|  Active under CPA | 60 | – |  | 60 |
|  Not operated and held for sale |  | – | 21 | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subtotal | 60 | – | 21 | 81 |
|  Unassigned |  | – |  |  |
|  Total | 60 | – | 21 | 81 |

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The following table lists the aircraft Mesa owns and leases as of June 30, 2025 and the passenger capacity of such aircraft:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Type of Aircraft** | **Owned** | **Leased** | **Total** | **Passenger<br>Capacity** |
|  E175 Regional Jet |  | 60<sup>(1)</sup> | 60 | 70-76 |
|  CRJ-900 Regional Jet | 21 |  | 21 | 76-79 |
|  CRJ-700 Regional Jet |  |  |  | 50-70 |
|  Total | 21 | 60 | 81 |  |

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<sup>(1)</sup> All 60 of these E175 aircraft are owned by United Airlines and leased to Mesa at nominal amounts. 

Embraer regional jets are among the quietest commercial jets currently available and offer many of the amenities of larger commercial jet aircraft, including flight attendant service, a stand-up cabin, overhead and under seat storage, lavatories, and in-flight snack and beverage service. The speed of MHI and Embraer regional jets is comparable to larger aircraft operated by major airlines, and they have a range of approximately 1,600 miles and 2,100 miles, respectively.

The following table summarizes Mesa's available seat miles ("ASMs") flown and contract revenue recognized under Mesa's CPAs for the fiscal years ended September 30, 2024 and 2023, respectively:

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Year Ended September 30, 2024** | **Year Ended September 30, 2024** | **Year Ended September 30, 2024** | **Year Ended September 30, 2024** | **Year Ended September 30, 2023** | **Year Ended September 30, 2023** | **Year Ended September 30, 2023** | **Year Ended September 30, 2023** |
|  | **Available <br>Seat Miles** | **Contract <br>Revenue** | **Contract<br>Revenue<br>per ASM** | **Contract<br>Revenue<br>per ASM** | **Available <br>Seat Miles** | **Contract <br>Revenue** | **Contract<br>Revenue<br>per ASM** | **Contract<br>Revenue<br>per ASM** |
|  | **(in thousands)** | | **(in cents)** | **(in cents)** | **(in thousands)** | | **(in cents)** | **(in cents)** |
|  American Airlines |  | $— |  |  | 790513 | $107019 | ¢ | 13.54 |
|  United Airlines | 3898559 | $394206 | ¢ | 10.11 | 3444900 | $294129 | ¢ | 8.54 |
|  Other<sup>(1)</sup> |  | $10116 |  |  |  | $20150 |  |  |
|  Total | 3898559 | $404322 | ¢ | 10.37 | 4235413 | $421298 | ¢ | 9.95 |

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<sup>(1)</sup> Includes revenue from the DHL FSA, GoJet lease, and MPD.

#### United Airlines Capacity Purchase Agreement
Mesa's agreement with United Airlines consists of the operation of E175 and CRJ-900 aircraft under the United CPA. The financial arrangement between Mesa and United Airlines includes a revenue-guarantee arrangement. Under the revenue-guarantee provisions, United Airlines pays Mesa a fixed minimum monthly amount per aircraft under contract, plus additional amounts related to departures and block hours flown. Mesa also receives direct reimbursement of certain operating expenses, including heavy airframe, engine, APU and landing gear maintenance, certain part repairs, and passenger liability insurance. Other expenses, including fuel and ground operations are directly paid to suppliers by United Airlines. Mesa believes it is in material compliance with the terms of the United CPA.

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Mesa benefits from the revenue guarantee arrangement under the United CPA because Mesa is sheltered, to an extent, from some of the elements that cause volatility in airline financial performance, including variations in ticket prices, fluctuations in number of passengers and fuel prices. However, Mesa does not benefit from positive trends in ticket prices (including ancillary revenue programs), the number of passengers enplaned, or reductions in fuel prices. United Airlines retains all revenue collected from passengers carried on Mesa's flights. In providing regional flying under the United CPA, Mesa uses the logos, service marks, and aircraft paint schemes of United Airlines.

As of June 30, 2025, Mesa operated 60 E175 aircraft under the United CPA. Under the United CPA, United Airlines owns all of the E175 aircraft as of June 30, 2025. The E175 aircraft owned by United Airlines and leased to Mesa have terms expiring between 2026 and 2028.

In exchange for providing flight services under the United CPA, Mesa receives a fixed monthly minimum amount per aircraft under contract plus certain additional amounts based on exceeding established goals for certain operational metrics. United Airlines also reimburses Mesa for certain costs on an actual basis, including property tax per aircraft and passenger liability insurance. Other expenses, including fuel and landing fees, are directly paid to suppliers by United Airlines.

United Airlines reimburses Mesa on a pass-through basis for certain costs related to heavy airframe and engine maintenance, landing gear, auxiliary power units ("APUs") and component maintenance for the aircraft owned by United Airlines. The United CPA permits United Airlines, subject to certain conditions, including the payment of certain costs tied to aircraft type, to terminate the agreement in its discretion, or remove aircraft from service, by giving Mesa notice of 90 days or more. If United Airlines elects to terminate the United CPA in its entirety or permanently remove select aircraft from service, Mesa is permitted to return any of the affected aircraft leased from United Airlines at no cost to us.

During the nine months ended June 30, 2025, Mesa amended the United CPA, providing for the following:

• The extension of the CPA rate increases agreed upon in the January 2024 United CPA Amendments through March 31, 2026.

• The extension of incentives for achieving certain performance metrics through March 2026.

• The commitment of a combined fleet of 60 CRJ-900 and E175 aircraft through February 2025, and an entirely E175 fleet by March 2025.

• Reimbursement of up to $14.0 million of expenses related to the transition to an entirely E175 fleet.

• Amendment of certain scheduled exit dates for Mesa's E175 and CRJ-900 Covered Aircraft (as defined in the United CPA).

In January 2024, the United CPA was amended to provide for the following:

• Increased CPA rates for E175 aircraft, retroactive to October 1, 2023 through December 31, 2024;

• Amended certain notice requirements for removal by United Airlines of up to eight CRJ-900 Covered Aircraft (as defined in the United CPA) from the United CPA;

• Extended United Airlines' existing utilization waiver for Mesa's operation of E175 and CRJ-900 Covered Aircraft (as defined in the United CPA) to June 30, 2024.

Additionally, in January 2023, in consideration for entering in the United CPA and providing the revolving line of credit, discussed in Note 8 – "Long-Term Debt, Finance Leases, and Other Borrowings" in the notes to Mesa's unaudited condensed consolidated financial statements included elsewhere in this proxy statement/prospectus, Mesa (i) granted United Airlines the right to designate one individual to the Mesa's board of directors (the "United Designee"), which occurred effective May 2, 2023 with the appointment of Jonathan Ireland and

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(ii) issued to United Airlines 4,042,061 shares of Mesa common stock equal to approximately 10% of Mesa's issued and outstanding capital stock on such date (the "United Shares"). United Airlines' board designee rights will terminate at such time as United Airlines' equity ownership in Mesa falls below five percent (5%) of Mesa's issued and outstanding stock.

United Airlines was also granted pre-emptive rights relating to the issuance of any equity securities by Mesa and certain registration rights, set forth in a definitive registration rights agreement with United Airlines, granting United Airlines customary demand registration rights in respect of publicly registered offerings of Mesa, subject to usual and customary exceptions and limitations.

The United CPA is subject to termination prior to its expiration, including under the following circumstances:

• If certain operational performance factors fall below a specified percentage for a specified time, subject to notice under certain circumstances;

• If Mesa fails to perform the material covenants, agreements, terms, or conditions of the United CPA or similar agreements with United Airlines, subject to 30 days' notice and cure rights;

• If either United Airlines or Mesa become insolvent, file bankruptcy, or fail to pay debts when due, the non-defaulting party may terminate the agreement;

• If Mesa merges with, or if control of Mesa is acquired by another air carrier or a corporation directly or indirectly owning or controlling another air carrier;

• United Airlines, subject to certain conditions, including the payment of certain costs tied to aircraft type, may terminate the agreement in its discretion, or remove E175 aircraft from service, by giving Mesa notice of 90 days or more; and

• If United Airlines elects to terminate the United CPA in its entirety or permanently remove aircraft from service, Mesa is permitted to return any of the affected E175 aircraft leased from United Airlines at no cost to Mesa.

Upon closing of the transactions contemplated by the Merger Agreement, the United CPA will be replaced with the Go-Forward CPA. For more information regarding the Go-Forward CPA, please see the section titled "*Republic's Business – Capacity Purchase Agreements with Republic's Partners – United Airlines – Go-Forward CPA*" beginning on page 260 of this proxy statement/prospectus.

#### DHL Flight Services Agreement
On December 20, 2019, Mesa entered into the DHL FSA. Under the terms of the DHL FSA, Mesa operated four Boeing 737 aircraft to provide cargo air transportation services. In exchange for providing cargo flight services, Mesa received a fee per block hour with a minimum block hour guarantee. Mesa was eligible for a monthly performance bonus or subject to a monthly penalty based on timeliness and completion performance. Ground support expenses including fueling and airport fees were paid directly by DHL. On March 15, 2024, Mesa entered into Amendment No. 3 to Mesa's DHL FSA which provided for the wind-down and termination of Mesa's flight operations on behalf of DHL. As part of this Amendment, Mesa received $1.0 million for wind-down and associated costs.

#### American Airlines Capacity Purchase Agreement
In December 2022, Mesa entered into Amendment No. 11 (the "American Amendment") to the Amended and Restated Capacity Purchase Agreement previously entered into in November 2020 (as theretofore amended, the "Mesa/American Airlines CPA"). The American Amendment provided for the termination and wind-down of the Mesa/American Airlines CPA by April 3, 2023 (the "Wind-down Period"), at which time all Covered Aircraft (as

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defined in the Mesa/American Airlines CPA) were removed from the Mesa/American Airlines CPA. In March 2023, Mesa began to transition aircraft operated under the Mesa/American Airlines CPA to the United CPA. The Mesa/American Airlines CPA was previously set to expire by its terms on December 31, 2025.

Under the terms of the American Amendment, during the Wind-down Period (i) Mesa continued to receive a fixed minimum monthly amount per aircraft covered by the Mesa/American Airlines CPA, plus additional amounts based on the number of flights and block hours flown during each month, subject to adjustment based on Mesa's controllable completion rate and certain other factors, and (ii) American Airlines agreed not to exercise certain termination or withdrawal rights under the Mesa/American Airlines CPA if Mesa failed to meet certain operational performance targets for the period measured from December 1, 2022 through April 3, 2023.

No Material Breach (as defined in the Mesa/American Airlines CPA) occurred that would have required the payment of liquidated damages. As a result, American Airlines agreed to waive Mesa's failure to meet certain past operational performance targets and other requirements, which triggered termination and withdrawal rights for American Airlines pursuant to the terms of the Mesa/American Airlines CPA. All CCF targets were met during the Wind-down Period, and there were no penalties associated with that performance metric. The parties executed a written mutual release of all claims.

#### Maintenance and Repairs
Airlines are subject to extensive regulation. Mesa has an FAA mandated and approved maintenance program. Aircraft maintenance and repair consists of routine and non-routine maintenance, and work performed is divided into three general categories: line maintenance, heavy maintenance, and component service. Mesa also outsources certain aircraft maintenance and other operating functions. Mesa uses competitive bidding among qualified vendors to procure these services. Mesa has long-term maintenance contracts with AAR to provide fixed-rate parts procurement and component overhaul services for its aircraft fleet. Under these agreements, AAR provides maintenance and engineering services on any aircraft that Mesa designates during the term of the agreement, along with access to a spare parts inventory pool, in exchange for a fixed monthly fee.

Line maintenance consists of routine daily and weekly scheduled maintenance checks on Mesa's aircraft. Line maintenance is performed at certain locations throughout Mesa's system and represents the majority of and most extensive maintenance Mesa performs. Major airframe maintenance checks consist of a series of more complex tasks that can take from one to four weeks to accomplish and typically are required approximately every 28 months, on average, across Mesa's fleet. Engine overhauls and engine performance restoration events are quite extensive and can take two months. Mesa maintains an inventory of spare engines to provide for continued operations during engine maintenance events. Mesa expects to begin the initial planned engine maintenance overhauls on Mesa's new engine fleet approximately four to six years after the date of manufacture and introduction into Mesa's fleet, with subsequent engine maintenance every four to six years thereafter. Due to Mesa's current fleet size, Mesa believes outsourcing all of its heavy maintenance, engine restoration, and major part repair is more economical than performing this work using its internal maintenance team.

#### Competition
Mesa considers its primary competition to be U.S. regional airlines that currently hold or compete for CPAs for passenger services with major airlines. Mesa's competition includes, therefore, nearly every other domestic regional airline, including Commuteair, Inc.; Endeavor Air, Inc. (owned by Delta Air Lines); Envoy Air, Inc.; PSA Airlines, Inc.; Piedmont Airlines, Inc. (Envoy, PSA, and Piedmont are subsidiaries of the parent company of American Airlines); Horizon Air Industries, Inc. (owned by Alaska Air Group, Inc.); SkyWest Airlines, Inc.; Republic; and GoJet Airlines.

Major airlines typically offer CPAs to regional airlines on the basis of the following criteria: availability of labor resources; proposed contract economic terms; reliable and on-time flight operations; corporate financial resources including ability to procure and finance aircraft; customer service levels; and other factors.

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Certain of Mesa's competitors are larger and have significantly greater financial and other resources than Mesa does. Moreover, economic downturns, combined with competitive pressures, have contributed to a number of reorganizations, bankruptcies, liquidations, and business combinations among major and regional carriers. The effect of economic downturns is somewhat mitigated by Mesa's reliance on a CPA with revenue-guarantee provisions, but the renewal and continued profitability of Mesa's partnership with United Airlines is not guaranteed.

#### Aircraft Fuel
The United CPA currently provides that United Airlines sources, procures, and directly pays third-party vendors for all fuel used in the performance of the United CPA. Accordingly, Mesa does not recognize fuel expenses or revenues for flying under the United CPA and Mesa faces very limited exposure to fuel price fluctuations. Fuel expenses relating to MPD are paid by Mesa.

#### Insurance
Mesa maintains insurance policies that it believes are of types customary in the airline industry and as required by the DOT, lessors and other financing parties, and United Airlines under the terms of the United CPA. The policies principally provide liability coverage for public and passenger injury; damage to property; loss of or damage to flight equipment; fire; auto; directors' and officers' liability; advertiser and media liability; cyber risk liability; fiduciary; workers' compensation and employer's liability; and war risk (terrorism). Although Mesa currently believes its insurance coverage is adequate, Mesa cannot assure you that the amount of such coverage will not be changed or that Mesa will not be forced to bear substantial losses from accidents.

#### Human Capital Management
As of June 30, 2025, Mesa employed 1,645 employees, consisting of 548 pilots, 581 flight attendants, 31 flight dispatchers, 327 maintenance employees, and 158 employees in administrative or other roles. Mesa's continued success is partly dependent on its ability to continue to attract and retain qualified personnel. Mesa has never been the subject of a labor strike or labor action that materially impacted its operations.

FAA regulations require pilots to have an Airline Transport Pilot ("ATP") license with specific ratings for the aircraft to be flown, and to be medically certified as physically fit to fly. FAA and medical certifications are subject to periodic renewal requirements including recurrent training and recent flying experience. Mechanics, quality-control inspectors, and flight dispatchers must be certificated and qualified for specific aircraft. Flight attendants must have initial and periodic competency training and qualification. Training programs are subject to approval and monitoring by the FAA. Management personnel directly involved in the supervision of flight operations, training, maintenance, and aircraft inspection must also meet experience standards prescribed by FAA regulations. All safety-sensitive employees are subject to pre-employment, random, and post-accident drug testing.

The airline industry has from time to time experienced a shortage of qualified personnel, particularly with respect to pilots and maintenance technicians. In addition, as is common with most of Mesa's competitors, Mesa has faced considerable turnover of its employees. Regional airline pilots, flight attendants, and maintenance technicians often leave to work for larger airlines, which generally offer higher salaries and better benefit programs than regional airlines are financially able to offer. Should the turnover of employees, particularly pilots and maintenance technicians revert back to the rate that occurred over the recent past and/or, sharply increase, the result will be significantly higher training costs than otherwise would be necessary, as well as a shortage in the required number of applicable personnel, and Mesa may need to request a reduced flight schedule with United Airlines, which may result in operational performance penalties under the United CPA. Mesa cannot assure that it will be able to recruit, train, and retain the qualified employees that it needs to carry out its expansion plans or replace departing employees.

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As of June 30, 2025, approximately 68.63% of Mesa's employees were represented by labor unions under collective-bargaining agreements, as set forth below. No other employees of Mesa's or its subsidiaries are parties to any other collective bargaining agreement or union contracts.

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|:---|:---|:---|:---|:---|:---|
| **Employee Groups** | **Number of<br>Employees** | **Number of<br>Employees** | **Representative** | **Labor <br>Agreement <br>Amendable <br>As of** | **Labor <br>Agreement <br>Amendable <br>As of** |
|  Pilots |  | 548 | Air Line Pilots Association |  | 10/17/2022 |
|  Flight Attendants |  | 581 | Association of Flight Attendants |  | 8/30/2022 |
|  Dispatchers |  | 31 |  |  |  |
|  Maintenance Department |  | 327 |  |  |  |
|  Administrative |  | 158 |  |  |  |

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The RLA governs Mesa's relations with labor organizations. Under the RLA, the CBAs generally do not expire, but instead become amendable as of a stated date. If either party wishes to modify the terms of any such agreement, they must notify the other party in the manner agreed to by the parties. Under the RLA, after receipt of such notice, the parties must meet for direct negotiations, and if no agreement is reached, either party may request the National Mediation Board ("NMB") to appoint a federal mediator. The RLA prescribes no set timetable for the direct negotiation and mediation process. It is not unusual for those processes to last for many months, and even for a few years. If no agreement is reached in mediation, the NMB in its discretion may declare at some time that an impasse exists, and if an impasse is declared, the NMB proffers binding arbitration to the parties. Either party may decline to submit to arbitration. If arbitration is rejected by either party, a 30-day "cooling off" period commences. During that period (or after), a Presidential Emergency Board ("PEB") may be established, which examines the parties' positions and recommends a solution. The PEB process lasts for 30 days and is followed by another "cooling off" period of 30 days. At the end of a "cooling off" period, unless an agreement is reached or action is taken by Congress, the labor organization may strike and the airline may resort to "self-help," including the imposition of any or all of its proposed amendments and the hiring of new employees to replace any striking workers. Congress and the President have the authority to prevent "self-help" by enacting legislation that, among other things, imposes a settlement on the parties. The table above sets forth Mesa's employee groups and status of the CBAs.

#### Safety and Security
Mesa is committed to the safety and security of its passengers and employees. Mesa has taken many steps, both voluntarily and as mandated by governmental authorities, to increase the safety of its operations. Some of the safety and security measures Mesa has taken with United Airlines includes aircraft security and surveillance, positive bag matching procedures, enhanced passenger and baggage screening and search procedures, and securing of cockpit doors. Mesa is committed to complying with future safety and security requirements.

Mesa's ongoing focus on safety relies on training its employees to proper standards and providing them with the tools and equipment they require so they can perform their job functions in a safe and efficient manner. Safety in the workplace targets several areas of its operation including dispatch, flight operations, and maintenance.

The TSA and the U.S. Customs and Border Protection, each a division of the U.S. Department of Homeland Security, are responsible for certain civil aviation security matters, including passenger and baggage screening at U.S. airports, and international passenger prescreening prior to entry into or departure from U.S. international flights are subject to customs, border, immigration, and similar requirements of equivalent foreign governmental agencies. Mesa is currently in compliance with all directives issued by such agencies. Mesa maintains active, open lines of communication with the TSA at all of its locations to ensure proper standards for security of its personnel, equipment and facilities are exercised throughout Mesa's operations.

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#### Fleet
As of June 30, 2025 Mesa's active aircraft fleet consisted of the following**:** 

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|:---|:---|:---|:---|:---|:---|:---|:---|
| **Aircraft Type** | **Owned** | **Leased** | **Total** | **Passenger<br>Capacity** | **Flight<br>Range (miles)** | **Average<br>Cruising<br>Speed<br>(mph)** | **Average<br>Age (years)** |
|  E175 Regional Jet | – | 60 | 60 | 70-76 | 2100 | 530 | 9.6 |

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Several factors impact Mesa's fleet size, including contract expirations, lease expirations, growth opportunities, and opportunities to transition to an alternative airline partner. Below is a summary of Mesa's fleet by aircraft type. Mesa's actual future fleet size and mix of aircraft types may vary materially from Mesa's current fleet size.

• E175s — As of June 30, 2025 Mesa operated 60 E175 aircraft under the United CPA. As part of the United CPA, Mesa agreed to extend the term of 60 of Mesa's E175 aircraft (owned by United Airlines) for an additional five years which will now expire between 2026 and 2028, subject to United Airlines' early termination rights. United Airlines also has the right to extend the term of these aircraft for four additional three-year increments. The United CPA permits United Airlines, subject to certain conditions, including the payment of certain costs tied to aircraft type, to terminate the United CPA in its discretion, or remove aircraft from service, by giving Mesa 90 days' notice.

#### Facilities
In addition to aircraft, Mesa has office and maintenance facilities to support its operations. Each of Mesa's facilities are summarized in the following table:

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|:---|:---|:---|:---|
| **Type** | **Location** | **Ownership** | **Approximate<br>Square Feet** |
|  Corporate Headquarters | Phoenix, Arizona | Leased | 33770 |
|  Training Center | Phoenix, Arizona | Leased | 13183 |
|  Parts/Stores | Phoenix, Arizona | Leased | 12000 |
|  Office, Hangar and Warehouse | El Paso, Texas | Leased | 31292 |
|  Hangar | Houston, Texas | Leased | 74524 |
|  Hangar | Louisville, Kentucky | Leased | 26762 |
|  Hangar | Dulles, Washington | Leased | 28709 |
|  Cargo Building | Dulles, Washington | Leased | 1475 |
|  Warehouse | Tucson, Arizona | Leased | 18894 |

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Mesa's corporate headquarters and training facilities in Phoenix, Arizona are subject to long-term leases expiring on November 30, 2032 and May 31, 2026, respectively.

Mesa believes its facilities are suitable and adequate for its current and anticipated needs.

#### Foreign Ownership
Under DOT regulations and federal law, Mesa must be owned and controlled by citizens of the United States as defined in 49 U.S.C. § 40102 (a)(15) and as interpreted by the DOT ("U.S. Citizens"). The restrictions imposed by federal law and regulations currently require that at least 75% of Mesa's voting stock must be owned and controlled, directly and indirectly, by persons or entities who are U.S. Citizens, that Mesa's president and at least two-thirds of the members of Mesa's board of directors and other managing officers be U.S. Citizens, and that Mesa be under the actual control of U.S. Citizens. In addition, at least 51% of Mesa's total outstanding stock must be owned and controlled by U.S. Citizens and no more than 49% of Mesa's stock may be held, directly or

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indirectly, by persons or entities who are not U.S. Citizens and are from countries that have entered into "*open skies*" air transport agreements with the U.S. which allow unrestricted access between the United States and the applicable foreign country and to points beyond the foreign country on flights serving the foreign country. Mesa is currently in compliance with these ownership provisions.

#### Government Regulation

#### Aviation Regulation
The DOT and FAA have regulatory authority over air transportation in the United States and all international air service is subject to certain U.S. federal requirements and approvals, as well as the regulatory requirements of the appropriate authorities of the foreign countries involved. The DOT has authority to issue certificates of public convenience and necessity, exemptions, and other economic authority required for airlines to provide domestic and foreign air transportation. International routes and international code-sharing arrangements are regulated by the DOT and by the governments of the foreign countries involved. A U.S. airline's ability to operate flights to and from international destinations is subject to the air transport agreements between the United States and the foreign country and the carrier's ability to obtain the necessary authority from the DOT and the applicable foreign government.

The U.S. government has negotiated "open skies" agreements with many countries, which allow broad access between the United States and the applicable foreign country. With certain other countries, however, the United States has a restricted air transportation agreement. Mesa's international flights to Mexico are governed by a bilateral air transport agreement which the DOT has determined has all of the attributes of an "open skies" agreement. Mesa's flights to Cuba are governed by bilateral air transport agreements between the United States and Cuba. Changes in U.S., Mexican, or Cuban aviation policies could result in the alteration or termination of the corresponding air transport agreement, or otherwise affect Mesa's operations to and from these countries. There is still a degree of uncertainty about the future of scheduled commercial flight operations between the United States and Cuba as a result of changes in diplomatic relations between the two governments, as well as travel and trade restrictions implemented by the U.S. government in 2017. Mesa is largely sheltered from the economic impact changes to existing "open skies" agreements or volatility in U.S., Mexican, or Cuban aviation polices because United Airlines controls route selection and scheduling under the United CPA.

The FAA is responsible for regulating and overseeing matters relating to the safety of air carrier flight operations, including the control of navigable air space, the qualification of flight personnel, flight training practices, compliance with FAA airline operating certificate requirements, aircraft certification and maintenance requirements, and other matters affecting air safety. The FAA requires each commercial airline to obtain and hold an FAA air carrier certificate. Mesa currently holds an FAR-121 air carrier certificate. In July 2013, as directed by the U.S. Congress, the FAA issued more stringent pilot qualification and crew member flight training standards, which increased the required training time for new airline pilots (the "FAA Qualification Standards"). The FAA Qualification Standards, which became effective in August 2013, require first officers to hold an ATP certificate, requiring 1,500 hours total flight time as a pilot. Previously, first officers were required to have only a commercial pilot certificate, which required 250 hours of flight time. The rule also mandates stricter rules to minimize pilot fatigue.

#### Airport Access
Flights at three major domestic airports are regulated through allocations of landing and takeoff authority (i.e., "slots" and "operating authorizations") or similar regulatory mechanisms, which limit take-offs and landings at those airports. Each slot represents the authorization to land at or take off from the particular airport during a specified time period. In the United States, the FAA currently regulates the allocation of slots, slot exemptions, operating authorizations, or similar capacity allocation mechanisms at two of the airports Mesa serves, LaGuardia Airport (LGA) in New York and Ronald Reagan Washington National Airport (DCA) in Washington, D.C. Mesa's operations at this airport generally requires the allocation of slots or analogous regulatory authorizations, which are obtained by United Airlines.

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#### Consumer Protection Regulation
The DOT also has jurisdiction over certain economic issues affecting air transportation and consumer protection matters, including unfair or deceptive practices and unfair methods of competition, lengthy tarmac delays, air carriers, airline advertising, denied boarding compensation, ticket refunds, baggage liability, contracts of carriage, customer service commitments, customer complaints, and transportation of passengers with disabilities. The DOT frequently adopts new consumer protection regulations, such as rules to protect passengers addressing lengthy tarmac delays, chronically delayed flights, CPA disclosure, and undisclosed display bias, and is reviewing new guidelines to address the transparency of airline non-ticket fees and refunding baggage fees for delayed checked baggage. The DOT also has authority to review certain joint venture agreements, code-sharing agreements (where an airline places its designator code on a flight operated by another airline), and wet-leasing agreements (where one airline provides aircraft and crew to another airline) between carriers and regulates other economic matters such as slot transactions.

#### Environmental Regulation
Mesa is subject to various federal, state, local and foreign laws and regulations relating to environmental protection matters. These laws and regulations govern such matters as environmental reporting, storage and disposal of materials and chemicals and aircraft noise. Mesa is, and expects in the future to be, involved in various environmental matters and conditions at, or related to, Mesa's properties. Mesa is not currently subject to any environmental cleanup orders or actions imposed by regulatory authorities. Mesa is not aware of any active material environmental investigations related to Mesa's assets or properties.

#### Other Regulations
Airlines are also subject to various other federal, state, local, and foreign laws and regulations. For example, the U.S. Department of Justice has jurisdiction over certain airline competition matters. Labor relations in the airline industry are generally governed by the RLA. The privacy and security of passenger and employee data is regulated by various domestic and foreign laws and regulations.

The U.S. government and foreign governments may consider and adopt new laws, regulations, interpretations, and policies regarding a wide variety of matters that could directly or indirectly affect Mesa's results of operations. Mesa cannot predict what laws, regulations, interpretations, and policies might be considered in the future, nor can Mesa judge what impact, if any, the implementation of any of these proposals or changes might have on Mesa's business.

#### Legal Proceedings
Mesa is subject to certain legal actions which Mesa considers routine to Mesa's business activities. As of June 30, 2025, Mesa's management believes the ultimate outcomes of other routine legal matters are not likely to have a material adverse effect on Mesa's financial position, liquidity, or results of operations.

#### Corporate Information
Mesa is a Nevada corporation with its principal executive office located in Phoenix, Arizona. Mesa was founded in 1982 and reincorporated in Nevada in 1996. In addition to operating Mesa Airlines, Mesa also wholly owns Mesa Air Group-Airline Inventory Management, LLC. ("MAG-AIM"), an Arizona limited liability company, which was established to purchase, distribute and manage Mesa Airlines' inventory of spare rotable and expendable parts, and Mesa Pilot Development, L.L.C. ("MPD"), an Arizona limited liability company, which was formed to facilitate the development and training of pilots for Mesa's operations. MAG-AIM's and MPD's financial results are reflected in Mesa's consolidated financial statements.

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Mesa's principal executive offices are located at 410 North 44th Street, Suite 700, Phoenix, Arizona 85008, and its telephone number is (602) 685-4000. Mesa's website is located at www.mesa-air.com. The information on, or accessible through, Mesa's website does not constitute part of, and is not incorporated into, this registration statement on Form S-4/S-1.

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#### REPUBLIC'S BUSINESS

#### Republic
Republic is the second largest independent regional airline in the United States based on total fleet and daily departures. As of June 30, 2025, Republic had a fleet of 245 regional jet aircraft that regularly provides scheduled passenger service on approximately 1,100 daily flights to over 90 cities in the United States, Canada, and the Caribbean. All of Republic's service is operated under multi-year CPAs with Republic's Partners. The CPAs follow general leasing arrangements over a period coinciding with the term of the CPA. Republic exclusively operates the dual class Embraer E170/175 family of aircraft and is one of the world's largest operators of that popular aircraft type. Under its CPAs, Republic provides substantially all of its flight capacity to Republic's Partners. Republic's revenues are not materially or immediately affected by variations in fares or passenger load factors, nor by variations in the price of fuel, the cost of which is paid directly by Republic's Partners. In 2023 and 2024, Republic carried passengers on more than 308,000 and 323,000 flights, generating revenues of $1,429.1 million and $1,474.0 million and pre-tax income of $88.0 million and $86.9 million, respectively. During the six months ended June 30, 2025, Republic carried passengers on more than 176,000 flights, generating revenues of $800.4 million and pre-tax income of $87.3 million.

All of Republic's service operates under the American Eagle, Delta Connection, or United Express brands. Since the beginning of 2017, Republic has won additional regional flying from all three of Republic's Partners, expanding its total fleet from 175 to 245 aircraft. These aircraft are dedicated to Republic's Partners under long-term commitments, as shown below.

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|  | **E170<br>(65 to 70 seats)** | **E175<br>(76 seats)** | **Total <sup>(1)</sup>** | **Contract<br>Expiration** |
|  American Airlines | 41 | 79 | 120 | 2028-2033 |
|  Delta Air Lines | 11 | 46 | 57 | 2026-2030 |
|  United Airlines | 10 | 56 | 66 | 2025-2037 |
|  Total Fleet | 62 | 181 | 243 |  |

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<sup>(1)</sup> Represents the minimum contracted fleet out of a total of 245 aircraft. Total fleet excludes two unallocated spare aircraft. 

Republic's development of long-term relationships with multiple major airlines has enabled it to diversify its revenue base more than all but one other regional airline and to reduce its dependence on any single, mainline customer. For the six months ended June 30, 2025, Republic's departures for American Airlines, Delta Air Lines, and United Airlines were divided in the following proportions:

![LOGO](g944307g00p01.jpg)

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#### The Essential Role of Regional Airlines
Regional airlines play an essential, daily role in the U.S. airline industry and constitute the only local access point to the global air travel system for hundreds of U.S. cities. According to the Regional Airline Association ("RAA"), 31% of all scheduled airline flights in the United States in 2023 were performed by regional airlines, and approximately 121 million passengers were carried on those flights. Of the U.S. airports with scheduled passenger service, 63% are served exclusively by regional airlines.

Regional airlines work in close cooperation with their major airline partners, rather than in competition with them. Like many large organizations, the U.S. major airlines outsource certain operating functions to independent providers that demonstrate outstanding specialization and cost-efficiency in their respective functional areas. Examples include payroll processing, call center operations, and aircraft maintenance, among others. Among the most visible and commercially important of these outsourced functions is the job of providing safe, clean, affordable, and efficiently scheduled flights for the millions of passengers each year who travel between small markets and the large-market hubs of the major airlines. Republic believes few major airline hubs would be viable today without the regional airline flights that build schedule density and transport passenger traffic to the hub.

The vast majority of regional flying in the United States today is performed under CPAs. Republic's CPAs stipulate that Republic operate flights under Republic's Partners' two-letter flight designation codes (also known as "code-sharing"), paint Republic's aircraft in the style of Republic's Partners, and otherwise use Republic's Partners' American Eagle, Delta Connection, or United Express branding elements. Republic's Partners control route selection, pricing, marketing, and scheduling and provide Republic with fuel, ground support services, airport landing slots, and gate access, allowing Republic to focus all of its efforts on delivering safe, clean, and reliable regional service. Republic's Partners retain all the revenue from the passengers and cargo aboard Republic's flights and, in exchange, pay Republic the fixed amounts specified under Republic's CPAs. Republic benefits because the CPAs shelter it from many of the elements that cause volatility in airline financial performance, including fuel prices, variations in ticket prices, and passenger load factors.

#### Republic's Strengths
Republic believes the following strengths create competitive advantages that make Republic a key strategic partner for Republic's Partners and a preferred employer for regional airline professionals:

**Long-Duration Contracts with All Three Major Airlines***.* Republic's contracts have individual aircraft expirations ranging from 2025 into the late 2030s, and Republic's average contract expiration is in June 2030. All of Republic's contracts provide for minimum aircraft utilization levels, fixed payments per month for each aircraft under contract, fixed payments for each block hour or flight performed, provision of fuel by Republic's Partners, and reimbursement of certain direct operating expenses, such as insurance and aircraft property taxes. Having three partners has allowed Republic to diversify its financial and operational risk. Republic believes this diversity allows it to not be limited by the rate at which any one of Republic's Partners can, or wishes to, grow. By flying for different major partners, Republic is also able to leverage the cost of its overhead expenses across multiple parties. If travel demand should be interrupted or follow an unexpected pattern, Republic's CPA contracts still afford it better revenue visibility and downside protection than air carriers that have full exposure to adverse movements in passenger load factors, fuel prices, and airfares.

**Operational Excellence and Reliability***.* During the year ended December 31, 2024 and six months ended June 30, 2025, Republic completed 99.99% of its flights adjusting for weather and other non-controllable events, which Republic defines as controllable completion factor ("CCF"). Despite Republic's contracted routes being concentrated in regions which experience severe air traffic congestion and weather-related disruptions, Republic has continued to be a leading performer in the industry in terms of on-time arrival performance (referred to in the airline industry as "A-14"). Republic believes that the amount it charges Republic's Partners for services and

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Republic's ability to reliably operate regional jet flights are the two most important factors weighed by Republic's Partners in awarding new flying contracts, and that Republic's completion percentage is a significant factor in assessing Republic's reliability. Because Republic operates in some of the busiest hubs for Republic's Partners, any operational issue affects a series of connecting flights, and therefore Republic's Partners value Republic's reliability more in these locations than in less congested airports.

Republic has maintained a partnership with American Airlines and its predecessors for more than 50 years, which Republic believes is a result of its distinct focus on operational excellence. Republic subsequently expanded its partnership reach to Delta Air Lines in 2002 and United Airlines in 2004 and has operated under the same mission of unparalleled service each year. Additionally, Republic's commitment to safety is experienced by its passengers every day and Republic has a perfect passenger safety record over its 50-year history of operating commercial aircraft.

**Financial Strength and Risk Management***.* As of June 30, 2025, Republic had total cash, cash equivalents, restricted cash, and marketable securities of $313.6 million, equivalent to approximately 20% of Republic's 2024 annual revenues, and $1,059.0 million of total debt and finance leases. However, approximately 75% of Republic's debt is comprised of aircraft and engine mortgages with maturities that materially match their respective original CPA expiries. Provided Republic performs to satisfactory operational levels and no Partner default occurs, the payments Republic receives under its CPAs are structured to cover the mortgage principal and interest payments, and to reduce mortgage principal balances to zero by the end of the initial CPA term, leaving Republic owning unencumbered equipment at that time. Republic believes its prudent financial management and strong balance sheet will allow Republic to aggressively pursue opportunities to expand its flying as opportunities become available.

**Strong Culture Drives Recruitment and Retention***.* Since Republic's inception, Republic has built a reputation as the employer and career path of choice for aviation professionals. Current staffing levels should position Republic for future growth opportunities.

Republic believes there are several qualitative factors that contribute to its success in pilot, flight attendant, maintenance technician, and dispatcher recruitment and retention:

• **Favorable Contracts:** Republic has CBAs with its pilots, flight attendants, and dispatchers. Republic believes its CBAs are among the most favorable in the industry in terms of the wages and benefits Republic offers.

• **Attractive Culture:** Republic believes it offers a positive work environment and culture for its employees, and Republic strives to provide a favorable quality of life. For example, Republic has made significant investments in proprietary technology, including in its mobile application, to ensure Republic can take action to quickly recover from irregular operations, such as by finding alternative routes, crews, and hotel accommodations.

• **Training Focus:** Republic opened a new state-of-the-art training campus in 2023 that provides an inclusive campus atmosphere with a dedicated facility to provide overnight accommodations on the campus. The new campus provides training for Republic's pilots, flight attendants, maintenance technicians, and dispatchers, which Republic believes sets it apart from its competition and assists Republic in attracting new aviators into the industry.

• **Career Advancement Opportunities:** Republic affords its employees exposure to all three of Republic's Partners' airline networks and believes Republic's employees value this broad exposure since it may lead to placement advantages for those ultimately looking to progress from Republic to American Airlines, Delta Air Lines, or United Airlines. Republic only flies large, dual class regional jets with advanced flight deck avionics, which Republic believes aviation professionals hold in high regard due to their similarity to larger commercial aircraft flown by major airlines.

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#### Republic's Strategy
Republic's business strategy consists of the following principal elements:

**CPA Flying Only***.* Substantially all of Republic's regional flying is performed under CPAs, and Republic has no present intention to begin flying under a different business model as a principal source of revenue.

**Positioning Republic for Future Growth***.* Republic intends to compete aggressively for opportunities to expand its base of CPA flying. Republic regularly engages with Republic's Partners to anticipate their long-term regional capacity requirements and to support their expansion of regional airline service as they enter into new markets. Republic believes that new business will be awarded to the regional airline demonstrating outstanding operational reliability at an efficient cost and the ability to staff the flying commitment to support growth of the aircraft fleet.

**Focus on Complementary Aircraft Types***.* All of Republic's operating regional jet aircraft are dual class Embraer E170/175 aircraft, and Republic believes it enjoys performance advantages by operating under a single-airline operating certificate. Republic has significant experience with operating dual class regional aircraft and will consider organic growth opportunities that would allow Republic to operate other large, dual class regional aircraft types. Should Republic choose to diversify its regional jet fleet, Republic's single-airline operating certificate allows it the flexibility to add other aircraft types quickly, while maintaining streamlined operations.

**Emphasize Quality Service***.* Passenger service, safety, and reliability are at the core of Republic's business strategy. Republic believes providing superior performance to Republic's Partners will make Republic a preferred alternative when Republic's Partners develop requirements for additional regional flying or seek to reallocate existing regional flying from one provider to another. Republic focuses on providing excellent passenger service through well-trained personnel, clean aircraft, consistent in-flight amenities, and on-time performance. Republic's operational excellence is exemplified by its flight completion factors and Republic's ability to quickly recover following inclement weather events. Republic believes its CCF of 99.99% for both the year ended December 31, 2024 and the six months ended June 30, 2025 is particularly notable given the concentration of Republic's flight routes at logistically challenging airports and Republic's efficient aircraft scheduling. Republic believes its focus on passenger service, cleanliness, safety, and reliability helps Republic's Partners build customer loyalty and compete better in their own right.

**Differentiated Pilot Development and Other Career Opportunities***.* Republic's ability to recruit and retain pilots has been key to its business. Republic intends to continue to offer competitive compensation packages, foster a positive work environment, and provide opportunities to fly state-of-the-art, large, dual class regional jets to differentiate Republic from other regional carriers and make Republic an attractive place to work and build a career. For pilot associates seeking to shift to careers at major airlines, Republic believes the quality of experience obtained at Republic, including the opportunity to fly for all three major carriers, raises its pilots likelihood of moving directly to their preferred air carrier.

Republic believes it has a distinct competitive advantage in its ability to train pilots in a single location at its state-of-the-art training campus that provides necessary flight instruction and flight simulator time, including full motion simulators.

In addition, Republic believes it is leading the industry in its strategic approach to attracting and developing new pilots, technicians, and dispatchers. Republic works with nearly 465 flight training programs across the country for recruitment, has established more than 25 partnerships with colleges and flight schools for hiring pathways, and owns one of the only proprietary flight schools in the regional airline industry, LIFT Academy, based in Indianapolis, Indiana. LIFT Academy's mission is to attract a new generation of aviators to flight careers by providing superior flight training while addressing the economic and structural barriers to entry. The program is structured so that LIFT Academy graduates will have a defined career pathway to being a First Officer with

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Republic. In addition, Republic secured a partnership with Hyannis Air Service Inc. d/b/a Cape Air and Nantucket Airlines ("Cape Air") to create a flow program of talented aviators from LIFT Academy to Cape Air to supplement their workforce in exchange for flight hours and valuable experience. This creates a stronger pathway for both airlines and breaks down even more barriers for future aviators. Since its founding in 2018, LIFT Academy has expanded its operations with additional flight school locations in Myrtle Beach, SC, Galveston, TX, and at Tuskegee University in Tuskegee, AL. In return for the high-quality training Republic provides, LIFT graduates will contractually commit to work at Republic for at least five years upon graduation. LIFT Academy admitted its first class of students in September 2018 and has the potential to train over 500 students each year.

Both Republic and LIFT Academy offer an Aviation Maintenance Technician ("AMT") Apprenticeship Program in partnership with the U.S. Department of Labor ("DOL") to provide hands-on training and one-on-one instruction with Republic and LIFT Academy licensed maintenance technicians for individuals seeking employment as licensed AMTs with Republic. The program takes less than three years to complete, and upon completion of their training and successful Airframe and Powerplant ("A&P") examinations, AMT apprentices have a direct pathway to a career at Republic. To address dispatcher development, Republic has created an aircraft dispatcher apprenticeship program that allows individuals with little or no airline experience to train in a six-to-eight-week paid program to learn the skills and knowledge required to become an FAA-certified aircraft dispatcher.

In addition, Republic has a partnership with Ivy Tech Community College to support full-time associates who have not yet attained a college degree or a professional certification. For eligible associates, Republic contributes a portion of tuition towards eligible associate degree and certificate programs each year.

**Continue to Develop Republic's Aircraft Platform***.* Republic intends to continue to focus its operations on the most modern, large, dual class regional jets. In anticipation of long-term fleet replacement needs and the potential to capture additional regional flying with Republic's Partners, Republic has a purchase agreement to acquire 75 Embraer regional jets (E175). As of June 30, 2025, 35 have been delivered and five have been cancelled, with six delivered during the year ended December 31, 2024, and six during the six months ended June 30, 2025. All 35 delivered aircraft have commenced passenger service by July 2025. The remaining aircraft are anticipated to be delivered through 2028. Republic believes the use of larger, dual class regional jets allows Republic to offer a higher quality service to Republic's Partners without incurring increased operating costs relative to its competitors.

#### Markets and Routes
*Markets* 

Republic provides scheduled passenger service on approximately 1,100 flights daily to more than 90 cities in the United States, Canada, and the Caribbean.

*Routes* 

Republic's Partners determine the routes that Republic operates for them, which are subject to certain parameters in Republic's CPAs with Republic's Partners. The following table illustrates the major hubs and focus cities of Republic's Partners into which Republic provided significant levels of service as of June 30, 2025:

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| | |
|:---|:---|
| **Partner** | **Hub and Focus Cities** |
|  American Airlines | Chicago, IL (ORD); New York, NY (LGA and JFK); Philadelphia, PA (PHL); Washington Reagan National (DCA) |
|  Delta Air Lines | Boston, MA (BOS); Detroit, MI (DTW); New York, NY (LGA and JFK) |
|  United Airlines | Chicago, IL (ORD); Newark, NJ (EWR); Washington-Dulles (IAD) |

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The following map illustrates the routes Republic currently flies for Republic's Partners:

![LOGO](g944307g01v01.jpg)

#### Capacity Purchase Agreements with Republic's Partners
Republic's fixed-fee CPAs are structured so that revenues are generally derived from (i) a fixed fee per departure, flight hour, and/or block hour of time incurred in addition to overall aircraft in service and aircraft per day fees, payable on a monthly basis, and (ii) a premium amount, which is earned by maintaining a minimum aircraft utilization and exemplary operating results. These rates are generally subject to periodic economic adjustment. Republic additionally receives reimbursement from Republic's Partners for direct expenses incurred in operations, such as qualifying maintenance activities, aircraft insurance, and property taxes. Republic refers to Partner reimbursements as "pass-through" charges. Certain charges such as fuel, landing fees, and certain ownership costs, are paid directly by Republic's Partners, although the charges were incurred by Republic in its ongoing operations. Republic refers to these charges as "Partner direct charges."

Pursuant to Republic's CPAs, Republic provides passenger service on behalf of American Airlines, Delta Air Lines, and United Airlines, and Republic is authorized to use Republic's Partners' two-character flight designator codes (American Airlines—"AA," Delta Air Lines—"DL," and United Airlines—"UA") to identify Republic's flights directly within each Partner's reservation systems and to outfit Republic's interior and exterior aircraft livery with Republic's Partners' colors, logos, and service marks, allowing for joint marketing of Republic's flights by Republic and each of Republic's Partners. Passenger tickets are issued by each of Republic's Partners, who therefore bear the risk associated with fare competition and management of seat inventory. In addition, under Republic's fixed-fee CPAs with American Airlines, Delta Air Lines, and United Airlines, passengers of Republic are eligible for participation in Republic's Partners' frequent flyer loyalty programs: AAdvantage<sup>®</sup>, SkyMiles<sup>®</sup>, and MileagePlus<sup>®</sup>, respectively. Support services such as reservations, ticketing, ground handling services, baggage handling, fuel procurement, commuter slot rights, and airport facilities, among others, are additionally provided by Republic's Partners. Significant provisions in Republic's CPAs, which are amended from time to time, are discussed below.

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#### American Airlines
As of June 30, 2025, Republic had 120 aircraft committed to American Airlines.

In conjunction with Republic's and American Airlines' agreement for the redeployment of 44 E170 aircraft to American Airlines operations, Republic and American Airlines reached an agreement with customary commercial leasing terms, for the operation of 31 E170 aircraft through 2032. The remaining 13 aircraft will be operated by Republic under the CPA.

Key terms of the American Airlines CPA are as follows:

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| | |
|:---|:---|
| **American Airlines** | **American Airlines** |
| **Dedicated Aircraft — June 30, 2025** | 120 |
| **Aircraft type** | E170/E175 |
| **Seating configuration** | 65 to 76 seats |
| **Scheduled expiration<sup>(1)</sup>** | December 2028 – June 2033 |
| **Significant pass-through / Partner direct charges** | **Pass-through** – insurance, property taxes, landing fees, and miscellaneous station expenses |
|  | **Partner direct charges** – aircraft fuel, ground handling operations, and on-board catering |

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<sup>(1)</sup> Unless otherwise extended or amended, the CPA expires once all applicable aircraft are withdrawn from the agreement. The American Airlines CPA provides for extension at the option of American Airlines and is subject to early termination provisions for cause after satisfying the applicable notice period and failure to cure. Additionally, American Airlines has the right to withdraw aircraft from the American Airlines CPA and require that Republic immediately cease operations of American Eagle flights if, among other things, Republic fails to maintain certain controllable completion rates and controllable on-time departure targets. Following the occurrence of a labor strike for six consecutive days, American Airlines has the right to purchase certain aircraft from Republic within 60 days of providing written notice to Republic regardless of whether such labor strike is later resolved. 

#### Delta Air Lines
As of June 30, 2025, Republic had 57 aircraft committed to Delta Air Lines.

Key provisions of the Delta Air Lines CPA are summarized as follows:

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| | |
|:---|:---|
| **Delta Air Lines** | **Delta Air Lines** |
| **Dedicated Aircraft — June 30, 2025** | 57 |
| **Aircraft type** | E170/E175 |
| **Seating configuration** | 69 – 76 seats |
| **Scheduled expiration<sup>(1)</sup>** | October 2026 – April 2030 |
| **Significant pass-through / Partner direct charges** | **Pass-through** – insurance, property taxes, certain heavy maintenance, induction, lease return costs, and miscellaneous station expenses |
|  | **Partner direct charges** – aircraft fuel, landing fees, on-board catering, and ownership on certain aircraft |

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<sup>(1)</sup> Republic and Delta Air Lines may terminate the Delta Air Lines CPA for material breach of contract and significant declines in operating performance, among others, after satisfying applicable notice and cure periods.

#### United Airlines
As of June 30, 2025, Republic had 66 aircraft committed to United Airlines.

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Key provisions of the United Airlines CPA are as follows:

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|:---|:---|
| **United Airlines** | **United Airlines** |
| **Dedicated Aircraft — June 30, 2025** | 66 |
| **Aircraft type** | E170/E175 |
| **Seating configuration** | 70 – 76 seats |
| **Scheduled expiration<sup>(1)(2)</sup>** | April 2025 – June 2037 |
| **Significant pass-through / Partner direct charges<sup>(3)</sup>** | **Pass-through** – insurance, property taxes, certain planned major maintenance activities, and miscellaneous station expenses |
|  | **Partner direct charges** – aircraft fuel, landing fees, on-board catering, and ownership of certain aircraft |

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<sup>(1)</sup> United Airlines has a call option to assume Republic's ownership or leasehold interests in certain aircraft if (i) Republic wrongfully terminates the CPA, (ii) if United Airlines terminates the agreements for Republic's breach of contract, or (iii) at the election of United Airlines, subject to certain notice requirements and age and condition of call option aircraft. 

<sup>(2)</sup> The United Airlines CPA may be terminated by United Airlines upon providing 30 days' written notice if, among other reasons, Republic fails to attain certain operating performance targets for a specified period, subject to a right to cure. The United Airlines CPA may be terminated by United Airlines immediately upon written notice (without any prior notice), following the occurrence of a labor strike for ten or more consecutive days. 

<sup>(3)</sup> United Airlines has the right to assume Republic's responsibility to purchase any of the pass-through products and services.

*Go-Forward CPA* 

On the Effective Date, the Surviving Corporation will enter into the Go-Forward CPA with United Airlines pursuant to which the Surviving Corporation will provide passenger service as United Express. Additionally, pursuant to the Go-Forward CPA United Airlines will reimburse Republic for certain post-Closing transaction costs.

Key provisions of the Go-Forward CPA are expected to be as follows:

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| | |
|:---|:---|
| **Surviving Corporation – United Airlines** | **Surviving Corporation – United Airlines** |
| **Dedicated Aircraft — Effective Date <sup>(1)</sup>** | 60 |
| **Aircraft type** | E175 |
| **Seating configuration** | 70 – 76 seats |
| **Scheduled expiration <sup>(1)</sup>** | 9 years and 5 months after the Effective Date – 10 years and 7 months after the Effective Date |
| **Significant pass-through / Partner direct charges <sup>(2)</sup>** | **Pass-through** – insurance, property taxes, certain major maintenance activities, and miscellaneous station expenses |
|  | **Partner direct charges** – aircraft fuel, landing fees, on-board catering, and ownership of the aircraft |

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<sup>(1)</sup> The Go-Forward CPA may be terminated by United Airlines upon providing 30 days' written notice if, among other reasons, the Surviving Corporation fails to attain certain operating performance targets for a specified period, subject to a right to cure. The Go-Forward CPA may be terminated by United Airlines immediately upon written notice (without any prior notice), following the occurrence of a labor strike for ten or more consecutive days. 

<sup>(2)</sup> United Airlines has the right to assume the Surviving Corporation's responsibility to purchase any of the pass-through products and services.

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#### Flight Equipment
As of June 30, 2025, Republic had 245 regional jet aircraft as described in the following table. Regional jet aircraft exclude 84 training aircraft dedicated to LIFT Academy and structured time building operations.

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|:---|:---|:---|:---|:---|:---|:---|
| **Type** | **Total<br>Aircraft <sup>(1)</sup>** | **Owned <sup>(2)</sup>** | **Finance<br>Leases** | **Partner<br>Controlled <sup>(3)</sup>** | **Average<br>Age<br>(in years)** | **Seating<br>Configuration** |
|  E170/175 | 245 | 185 | 13 | 47 | 13.6 | 65-76 seats |

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<sup>(1)</sup> Includes two unallocated spare aircraft.

<sup>(</sup><sup>2</sup><sup>)</sup> Certain of Republic's owned aircraft have a debt obligation in exchange for a first lien on the aircraft.

<sup>(3)</sup> Refers to Republic's aircraft with leasing arrangements between Republic and Republic's Partners. Republic refers to these aircraft as "Partner Controlled" aircraft.

All of Republic's leased aircraft are leased pursuant to finance leases, with current lease expirations ranging from 2025 to 2031. Republic has options to renew certain leases for an additional term or purchase the leased aircraft at the end of the applicable current lease term at fair market value.

From time to time, Republic enters into purchase commitments for future aircraft and engine deliveries. Republic regularly makes pre-delivery deposit ("PDP") payments to support aircraft and engines on order. PDPs are retained until scheduled aircraft or engine delivery occurs, or when deposit amounts are no longer expected to be returned to the manufacturer.

Republic has a commitment with Embraer to purchase 75 E175 or second generation E175 aircraft, 35 of which have been delivered and five of which have been cancelled as of June 30, 2025. In April 2025, Republic and Embraer executed an amendment to the purchase agreement to conform to current economic conditions and extend the delivery schedule of certain committed aircraft. The remaining 35 aircraft are expected to be delivered between 2025 and 2028.

#### Employees and Collective Bargaining Agreements
As of June 30, 2025, Republic employed approximately 6,600 employees. Of Republic's total headcount, approximately 73% of employees are represented by CBAs as follows:

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| | | | |
|:---|:---|:---|:---|
| **Employee Group** | **Represented<br>Employees** | **Represented<br>Employees** | **Representing Union** |
|  Pilots |  | 2385 | International Brotherhood of Teamsters, Local 357 |
|  Flight Attendants |  | 2271 | International Brotherhood of Teamsters, Local 135 |
|  Dispatchers |  | 114 | Transport Workers Union of America, Local 592 |

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Because of the high level of unionization among Republic's employees, Republic is subject to risks of work interruption or stoppage and/or the incurrence of additional expenses associated with union representation of its employees. Republic has never experienced any work stoppages and generally considers its relationship with associates to be good.

The RLA governs Republic's relations with labor organizations. Under the RLA, CBAs generally do not expire but instead become amendable as of a stated date. If either party wishes to modify the terms of any such agreement, they must notify the other party in an agreed-upon manner. After receipt of such notice, the parties must meet for direct negotiations, and if no agreement is reached, either party may request that the NMB appoints a Federal mediator. The RLA prescribes no set timetable for the direct negotiation and mediation process. It is not unusual for those processes to last for many months, extending into years. If no agreement is reached in mediation, the NMB in its discretion may declare at some time that an impasse exists, and if an impasse is declared, the NMB proffers binding arbitration to the parties. Either party may decline to submit to arbitration. If arbitration is rejected by either party, a 30-day "cooling off" period commences. During that period (or after), a Presidential Emergency Board ("PEB") may be established, which examines the parties' positions and recommends a solution. The PEB process

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lasts for 30 days and is followed by another "cooling off" period of 30 days. At the end of a "cooling off" period, unless an agreement is reached, or action is taken by Congress, the labor organization may strike, and the airline may resort to "self-help," including the imposition of any or all of its proposed amendments and the hiring of new employees to replace any striking workers. Congress and the President have the authority to prevent "self-help" by enacting legislation that, among other things, imposes a settlement on the parties.

The FAA regulations require pilots to have an ATP license with specific ratings for aircraft to be flown and to be medically certified as physically fit to fly. FAA and medical certifications are subject to periodic renewal requirements, including recurrent training and recent flying experience. Maintenance technicians, quality-control inspectors, and flight dispatchers must be certificated and qualified for specific aircraft. Flight attendants must have initial and periodic competency training and qualification. Training programs are subject to approval and monitoring by the FAA. Management personnel directly involved in the supervision of flight operations, training, maintenance, and aircraft inspection must also meet experience standards prescribed by FAA regulations. All safety-sensitive employees are subject to pre-employment, random, and post-accident drug testing.

The airline industry has from time to time experienced a shortage of qualified personnel, particularly with respect to pilots and maintenance technicians. In addition, as is common with most of Republic's competitors, Republic has faced considerable turnover of its employees. Regional airline pilots, flight attendants, and maintenance technicians often leave to work for larger airlines, which generally offer higher salaries and more comprehensive benefit programs than regional airlines are financially able to offer. Republic's turnover is expected to increase when hiring expands at major carriers, cargo carriers, or low-cost carriers.

#### Attracting, Developing, and Retaining Talent
*Recruitment Strategies* 

Republic strives to be the employer of choice for aviation professionals pursuing a career in the regional airline industry, and Republic continually advances its recruiting strategies to attract quality aviation professionals. Republic adapts its recruitment efforts based on the supply of eligible aviation professionals and its outlook for anticipated future flight demand. Republic's recruiting focus generally targets key aviation technical roles, particularly pilots and maintenance technicians. Republic seeks qualified individuals throughout all positions on both internal and external career websites, supporting professional development leads, and investment in targeted advertising, social media outreach, employee referrals, and relationships with community-based organizations and educational institutions.

*School Partnerships and Development* 

Republic prioritizes workforce development investments and maintains relationships with numerous flight schools and educational institutions across the country that are focused on developing the next generation of aviation professionals. Republic focuses recruitment efforts on pilots and maintenance technicians that have completed required coursework from an accredited flight or maintenance school, respectively, and have obtained other applicable certifications. Republic has established additional robust programs to enhance its recruiting efforts toward individuals who are new industry entrants or are in the process of completing their training, including the following programs:

• Republic owns one of the only proprietary flight schools in the regional airline industry, LIFT Academy. LIFT Academy's mission is to attract a new generation of aviators to flight and maintenance careers by providing superior aviation training, while addressing the economic and structural barriers to entry to the aviation industry. The program is structured so that LIFT Academy graduates will have a defined career pathway to become a pilot or aviation maintenance technician with Republic. In addition, Republic has secured a partnership with Cape Air to create a flow program of talented aviators from LIFT Academy to Cape Air to supplement their workforce in exchange for flight hours and valuable experience. This creates a stronger pathway for both airlines and breaks down even more barriers for future aviators. In return for

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the high-quality training Republic will provide, LIFT graduates contractually commit to working at Republic for at least five years upon graduation. LIFT Academy has the potential to train over 500 students each year.

• Republic works with nearly 465 flight training programs across the country for recruitment and has established more than 25 partnerships with colleges and flight schools for hiring pathways. The purpose of these partnerships is to increase Republic's access to qualified applicants for employment and to increase employment opportunities for students who attend these programs. These partnerships will have access to the preferential interview process for the respective schools' students and marketing rights for both the flight school/university and Republic. Republic's Partners are also invited to attend Republic's annual faculty/staff roundtable, allowing for industry and academia to partner and remain apprised of the continuous changes in commercial aviation.

• The Pilot Ambassador Program is currently staffed by approximately 70 flight students and instructors, representing flight and educational institutions throughout the country. Selected students partner with Republic to serve as brand ambassadors on their respective campuses and are consistent and on-site resources for their peers who are interested in employment with Republic. Ambassadors play a key role in the pipeline of Republic's RJet Cadet Program. Each Ambassador has a conditional employment offer and will join Republic as a First Officer upon completion of their flight training requirements.

• The RJet Cadet Program is a pathway from classroom to flight deck for all flight school students. Students currently attending a flight school can interview with Republic for a conditional employment offer for a pilot position following the completion of their instrument certification. Republic has over 1,000 students enrolled in the Cadet program. Each student holds a conditional offer of employment to join Republic as a pilot upon completion of their flight training requirements.

• The AMT Apprenticeship Program provides a career path for individuals seeking employment as licensed AMTs with Republic. In this DOL certified program, participants "earn while they learn," and are compensated while they complete on-the-job training alongside licensed professionals over the course of 30 months. Upon completion of their training and successful A&P examinations, AMT apprentices have a direct pathway to a career at Republic. LIFT Academy offers a similar program with training alongside LIFT licensed maintenance professionals.

*On-going Training and Retention* 

Republic invests in retaining its professionals by providing a range of talent development opportunities, including mandatory compliance training, new hire training, and general professional development, as well as engaging in the training of leaders through leadership development courses. Republic's training programs include full-motion flight simulators for pilots, cabin trainers for flight attendants, and on-the-job training for its maintenance technicians. In 2023, Republic completed a state-of-the-art training campus that houses simulators, cabin trainers, and classrooms to train its pilots, flight attendants, maintenance technicians, dispatchers, and other employees. Republic also reinforces its guiding principles, including but not limited to, health and safety, excellent service and quality, and respect and teamwork through its training and development programs, as well as through its employee appreciation and recognition programs. These programs are intentionally built upon Republic's guiding principles: to be good stewards of Republic's resources, to encourage a culture of fun and action, to strive for excellence in everything Republic does, and to trust, respect, and care for one another.

*Total Rewards* 

Republic operates in a customer-focused, team-based environment and provides opportunities for dedicated individuals to develop their careers, while receiving competitive compensation, benefits, and rewards. Republic's employees receive several compensation benefits, including but not limited to:

• Competitive wages and incentives based on Republic's operating and financial performance goals.

• Multiple insurance options including health care, disability coverage, and life insurance.

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• Access to retirement savings plans with matching contributions.

• Employee assistance programs, which include confidential counseling services.

• A variety of resources that allow for alternative work arrangements and scheduling flexibility with paid time off from work.

• Space-available travel privilege program for employees and eligible family members through Republic's Partners.

• Access to financial wellness programs, continuing education partnerships, and other work-life effectiveness programs.

#### Employee Reporting
Republic's Code of Conduct contains general guidelines for conducting business in an ethical manner. Republic is committed to a working environment that is safe and supports open and honest communication. Republic has established a reporting system for any employee to report a violation of Republic policy, including harassment, discrimination, drug and alcohol use, questionable financial practices, or a breach involving safety or security. A general grievance may also be filed even if an employee has already utilized their chain of command or chooses to remain anonymous. Reports can be filed using a toll-free hotline that is published internally.

#### Maintenance of Aircraft and Training
Using a combination of FAA certified maintenance vendors and Republic's own employees and facilities, Republic maintains its aircraft on a scheduled and "as-needed" basis. Republic emphasizes preventive maintenance and inspects its aircraft engines and airframes, as required by FAA regulation to enhance reliability and avoid excess costs from the avoidance of irregular operation events.

Under Republic's maintenance agreements, Republic is charged for covered services based on a fixed rate for each flight hour or flight cycle accumulated by the engines or airframes in service each month. Rates are subject to annual revisions, generally based on certain inflation indices published by the DOL Bureau of Labor Statistics. Republic believes its ongoing maintenance program reduces the likelihood of unexpected maintenance expense levels for its engines, avionics, wheels and brakes, and other spare parts. Certain of these agreements contain minimum guarantee amounts, penalty provisions for the early removal of aircraft, and termination for activity levels below the minimums.

Republic performs overnight maintenance at its facilities in Columbus, OH; Indianapolis, IN; Louisville, KY; and Pittsburgh, PA. Republic also performs routine maintenance services from select line maintenance locations. Republic's heavy maintenance is performed by its vendors in Windsor, Ontario, Canada, and Nashville, TN.

All maintenance technicians and avionics specialists employed by Republic have appropriate training and experience and hold required licenses issued by the FAA. Republic provides periodic in-house and outside training for its maintenance and flight personnel and also take advantage of manufacturers' training programs that are offered when Republic acquires new aircraft.

Republic owns one full-motion flight simulator, and leases seven simulators that are all housed in its state-of-the-art training facility in Carmel, Indiana. Republic believes its lease arrangements will be able to provide adequate and cost-effective flight simulator training for its pilots.

#### Safety and Security
Republic is dedicated to ensuring the safety and security of its customers and associates. Republic has taken numerous measures, both voluntarily and as required by regulatory authorities, to increase the safety and security of its operations. Republic is committed to complying with future safety and security requirements.

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Republic expects its employees to think, plan, communicate, and act appropriately to prevent injury, illness, or harm to themselves, fellow associates, passengers, and its aircraft.

Republic's ongoing focus on safety relies on training its employees to proper standards and providing them with the tools and equipment they require so they can perform their job functions in a safe and efficient manner. Safety in the workplace targets several areas of Republic's operation including: dispatch, flight operations, in-flight, and maintenance.

The TSA and the U.S. Customs and Border Protection, each a division of the U.S. Department of Homeland Security, are responsible for certain civil aviation security matters, including passenger and baggage screening at U.S. airports, and international passenger prescreening prior to entry into or departure from the United States. International flights are subject to customs, border, immigration, and similar requirements of equivalent foreign governmental agencies. Republic currently complies, in all material respects, with all directives issued by such agencies. Republic maintains active, open lines of communication with the TSA at all of its locations to ensure proper standards for security of Republic's personnel, equipment, and facilities are exercised throughout the operation.

#### Competition
The airline industry is highly competitive. Republic competes with independent and wholly-owned U.S. regional airlines that currently hold or compete for CPAs with major airlines. Republic's competition includes nearly every other domestic regional airline, including Endeavor (wholly-owned by Delta Air Lines); Envoy, PSA, and Piedmont (each, wholly-owned by the parent company of American Airlines); and SkyWest Airlines, Inc. Certain information regarding Republic and its primary competitors, published by the RAA, is listed below:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Regional Airline<sup>(1)</sup>** | **2023<br>Enplaned<br>Passengers** | **Ownership** | **Estimated<br>Large<br>Regional<br>Aircraft in<br>Service<br>(greater than<br>50 seats) at<br>Year End<br>2023** | **Estimated<br>Small<br>Regional<br>Aircraft in<br>Service<br>(50 seats or<br>fewer) at<br>Year End<br>2023** |
|  SkyWest | 38545718 | Publicly Traded | 388 | 87 |
|  Republic | 17589744 | Publicly Traded (following this transaction) | 234 |  |
|  Envoy | 14342412 | Wholly-owned subsidiary of American Airlines | 161 |  |
|  PSA | 11603256 | Wholly-owned subsidiary of American Airlines | 141 |  |
|  Endeavor | 12796617 | Wholly-owned subsidiary of Delta Air Lines | 130 |  |

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<sup>(1)</sup> Certain smaller independent regional airlines with code-share relationships or CPAs with major airlines have been excluded due to size.

Major airlines typically offer CPAs to regional airlines on the basis of the following criteria: (i) availability of labor resources; (ii) proposed contract economic terms; (iii) reliable and on-time flight operations; (iv) corporate financial resources, including ability to procure and finance aircraft; and (v) customer service levels. Additionally, each major airline may be limited in the number and type of regional jet aircraft it may use in its network due to agreements major airlines have with their own labor groups, commonly referred to in the industry as "scope limitations." Given Republic's Partners' scope limitations, Republic currently does not operate regional jet aircraft configured with more than 76 seats.

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Certain of Republic's competitors are larger and have significantly greater financial and other resources than Republic. Moreover, economic downturns combined with competitive pressures, have contributed to a number of reorganizations, bankruptcies, liquidations, and business combinations among major airlines and regional carriers in recent years. The effect of economic downturns is somewhat mitigated by Republic's reliance on its CPAs with revenue-guarantee provisions, but the renewal and continued profitability of these partnerships with Republic's Partners is not guaranteed. If, however, any of Republic's Partners experience a prolonged decline in the number of passengers or are negatively affected by low ticket prices or high fuel prices, they may seek rate reductions in future CPAs, or materially reduce scheduled flights in order to reduce their costs. In addition, adverse weather conditions can impact Republic's ability to complete scheduled flights and can have a negative impact on Republic's operations and financial condition. Also, major airline scope limitations may restrict growth opportunities for the regional carriers.

#### Government Regulation
*Aviation Regulation* 

The airline industry is heavily regulated, especially by the Federal government. Two of the primary regulatory authorities overseeing civil air transportation in the United States are the DOT and the FAA, an organization within the DOT. The DOT and FAA have regulatory authority over air transportation to, from, and within the United States. The DOT has authority to issue certificates of public convenience and necessity, exemptions, and other economic authority required for airlines to provide interstate and foreign air transportation. International routes and international code-sharing arrangements are regulated by the DOT and by the governments of the foreign countries involved.

A U.S. airline's ability to operate flights to and from international destinations is subject to the air transport agreements between the United States and the foreign country and the carrier's ability to obtain the necessary authority from the DOT and the applicable foreign government. The U.S. government has negotiated "open skies" agreements with many countries, which generally allow unrestricted access between the United States and the applicable foreign country and to points beyond the foreign country on flights serving the foreign country. With certain other countries, however, the United States has a restricted air transportation agreement. Changes in the aviation policies of the United States or any foreign country that Republic serves, changes with respect to air transportation agreements, or changes in the relationship between the U.S. and a foreign country that Republic serves could result in the alteration or termination of the corresponding air transport agreement, diminish the value of Republic's international route authorities, or otherwise affect Republic's operations to or from these countries.

The FAA is responsible for regulating and overseeing matters relating to the safety of air carrier flight operations, including the control of navigable air space; the qualifications of flight personnel; flight training practices; pilot flight, duty, and rest requirements; compliance with FAA airline operating certificate requirements; aircraft certification, registration, inspection, and maintenance requirements; and other matters affecting air safety and operations. The FAA requires commercial airlines like Republic to obtain and hold an FAA Air Carrier Certificate. In addition, the FAA requires, among other things: operating, airworthiness, and other certifications; approval of personnel who may engage in flight maintenance or operations activities; record keeping procedures in accordance with FAA requirements; and FAA approval of flight training and retraining programs.

Generally, governmental agencies, such as the DOT and FAA, enforce their regulations through, among other mechanisms, routine audits, investigations, and proceedings, which can result in civil or criminal penalties and/or suspension or revocation of operating authority.

Republic believes that it is operating in compliance with DOT and FAA regulations, in all material respects, and holds all necessary operating and airworthiness certificates and licenses. Republic incurs substantial costs in maintaining its current certifications and otherwise complying with the laws, rules, and regulations to which it is subject. Republic's flight operations, maintenance, inspection, record keeping, and training programs are conducted under FAA approved procedures.

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The airline industry is subject to legislative actions that may have an impact on operations and costs. In 2024, the U.S. Congress approved a five-year reauthorization for the FAA, which encompasses significant aviation tax and policy-related issues. The law includes a range of policy changes related to enhancing aviation safety, improving and modernizing air traffic control, and strengthening the aviation workforce. Implementation of some items continues into the new Administration, and depending on how they are implemented, could impact Republic's operations and costs. Additionally, the U.S. Congress may consider legislation related to environmental issues or increases to the U.S. federal corporate income tax rate, which could impact the airline industry.

*Consumer Protection Regulation* 

The DOT also has jurisdiction over certain economic issues affecting air transportation and consumer protection matters, including unfair or deceptive practices and unfair methods of competition by air carriers and ticket agents, airline advertising, denied boarding compensation, ticket refunds, baggage liability, lengthy tarmac delays, contracts of carriage, consumer notices and disclosures, customer service commitments, customer complaints, and transportation of passengers with disabilities. The DOT frequently adopts new consumer protection regulations, and it may adopt new consumer protection regulations in the future, which could impose additional requirements. The DOT also has authority to review certain joint venture agreements, marketing agreement, code-sharing agreements (where an airline places its designator code on a flight operated by another airline), and wet-leasing agreements (where one airline provides aircraft and crew to another airline) between carriers and regulates other economic matters such as slot transactions.

*Foreign Ownership* 

Under Federal law and DOT policy, Republic must be owned and controlled by U.S. Citizens. The restrictions imposed by Federal law and DOT policy require that Republic's President and at least two-thirds of its board of directors and other managing officers be U.S. Citizens; that at least 75% of Republic's voting stock must be owned and controlled, directly and indirectly, by persons or entities who are U.S. Citizens; and that Republic be under the actual control of U.S. Citizens. In addition, at least 51% of Republic's total outstanding stock must be owned and controlled by U.S. Citizens and no more than 49% of Republic's stock may be owned or controlled, directly or indirectly, by persons or entities who are not U.S. Citizens and are from countries that have entered into "open skies" air transport agreements with the United States which allow unrestricted access between the United States and the applicable foreign country and to points beyond the foreign country on flights serving the foreign country.

*Airport Access* 

Flights at three major domestic airports (Ronald Reagan Washington National Airport (DCA) in Washington, D.C., New York's LaGuardia Airport (LGA), and John F. Kennedy International Airport (JFK)) are federally regulated by the DOT and FAA through allocations of landing and take-off authority (i.e. slots, slot exemptions, and operating authorizations (collectively, "Slots")) or similar regulatory mechanisms, which limit departures and landings at those airports. Each Slot represents the authorization to land at or depart from the particular airport on a particular day during a specified time period.

Republic's operations at these airports require the allocation of Slots. Republic or Republic's Partners currently have sufficient Slots to operate Republic's existing flights, but there is no assurance that Republic will be able to do so in the future because, among other reasons, such Slot allocations are subject to changes in government regulations and policies. Republic has one Slot exemption at DCA which is subject to an expiration date, for which Republic will attempt to seek extension. There is no assurance that the Slot exemption will be extended. Republic's ability to retain Slots is subject to "use-or-lose" provisions of the governing FAA regulations or orders, and Republic's ability to expand service at Slot-controlled airports similarly is limited. The DOT and FAA also regulate Slot transactions between airlines. The FAA can grant, and has granted, waivers

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meeting certain criteria for limited periods that, subject to certain conditions, allow carriers, including Republic, to maintain existing Slots at Slot-controlled airports while not complying with the use-or-lose provisions of the governing FAA regulations or orders, but future waivers are not assured.

*Environmental Regulation* 

Federal law generally recognizes the proprietary rights of airport operators to implement local noise abatement programs, so long as such programs satisfy various criteria including that they do not interfere unreasonably with interstate or foreign commerce or the national aviation system. Federal law set forth in the Airport Noise and Capacity Act, 49 U.S.C. § 47521, et seq. ("ANCA") generally limits local laws impacting airspace use and management, air traffic control, safety, and the regulation of aircraft noise at its source. The ANCA generally requires FAA approval of local noise restrictions on commercial aircraft. However, certain airports have imposed curfews and noise restrictions that have been grandfathered under ANCA. In some instances, these restrictions have caused airlines to curtail service or have increased airline operating costs. Such restrictions could limit Republic's ability to commence or expand its operations at affected airports. While Republic has had sufficient scheduling flexibility to accommodate local noise restrictions imposed to date, its operations could be adversely affected if locally imposed regulations become more restrictive or widespread.

Republic is subject to various Federal, state, and local laws, and regulations related to the protection of the environment and affecting matters such as aircraft engine emissions and the discharge or disposal of materials and chemicals. The Environmental Protection Agency ("EPA") regulates aircraft emissions, including air carrier operations, which affect the quality of air in the United States. Republic believes the aircraft in its fleet meet all emission standards issued by the EPA. Republic may become subject to additional taxes or regulations related to greenhouse gas emissions, including reporting requirements, emissions limitations and/or requirements to obtain permits for greenhouse gas emissions.

In addition to other potential regulations, certain U.S. airport authorities are exploring ways to limit de-icing fluid discharges to groundwater, which can result in additional costs to and restrictions on airlines required to participate in the construction of new or modified airports. Additionally, air quality initiatives at the state and local level (including state implementation plans for achieving national ozone standards) could, in the future, result in curtailments in services, increased operating costs, limits on expansion, or further emission reduction requirements. Certain airports and/or state governments either have or are seeking to establish environmental fees and other requirements applicable to carbon emissions, local air quality pollutants, and/or noise.

*Security Regulation* 

The TSA and the U.S. Customs and Border Protection are responsible for certain civil aviation security matters, including passenger and baggage screening at U.S. airports, and international passenger prescreening prior to entry into or departure from the United States. International flights are subject to customs, border, immigration, and similar requirements of equivalent foreign governmental agencies.

*Other Regulations* 

Republic is subject to various other Federal, state, local, and foreign laws and regulations. For example, the U.S. Department of Justice has jurisdiction over certain airline competition matters. Labor relations in the airline industry are generally governed by the RLA. The privacy and security of passenger and employee data is regulated by various U.S. and foreign laws and regulations.

The U.S. government and foreign governments may consider and adopt new laws, regulations, interpretations, and policies regarding a wide variety of matters that could directly or indirectly affect Republic's results of operations. Republic cannot predict what laws, regulations, interpretations, and policies might be considered in the future, nor can Republic judge what impact, if any, the implementation of any of these proposals or changes might have on its business.

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#### Aircraft Fuel
Republic's CPAs provide that Republic's Partners source, procure, and directly pay third party vendors for substantially all fuel used in carrying out passenger service under those agreements. Accordingly, Republic does not recognize fuel expenses or revenues for fuel reimbursement for flying under its CPAs, and Republic faces very limited exposure to fuel price fluctuations, as these charges are characterized as Partner direct charges.

#### Insurance
Republic maintains insurance policies that it believes are of types customary in the industry and in amounts it believes are adequate to protect Republic against material loss and as required by the DOT, lessors, financing parties, and Republic's Partners under the terms of Republic's CPAs. The policies principally provide coverage for public liability, passenger liability, baggage and cargo liability, property damage, including coverages for loss or damage to Republic's flight equipment, and workers' compensation insurance. Republic is not insured against cyber risk liability and business interruption. There is no assurance, however, that the amount of insurance Republic carries will be sufficient to protect Republic from material loss. Each of Republic's CPAs requires Republic to maintain specified types and amounts of insurance.

#### Community Partnerships
As an Indianapolis-based company with employees who live across the United States, it is an important part of Republic's culture to support the communities in which Republic works and lives. Republic has several key community partnership initiatives, some of which are:

• **Republic Plane Pull:** an annual event where teams from areas throughout the Indianapolis and surrounding communities and aviation industry pull one of Republic's E170/175 aircraft to raise money for A Kid Again, Indiana Children's Wish Fund, Riley Children's Hospital, and Ascension St. Vincent Peyton Manning Children's Hospital.

• **Samaritan's Feet:** a partnership to provide shoes to underprivileged children across the world and engage in Republic's local communities in Indianapolis and other cities where Republic has significant operations to provide shoes for children in grade schools as well as shelters.

• **Food for the Poor:** a global partnership that Republic supports financially as well as with mission trips with Republic's associates to underdeveloped countries to build communities and provide tools and resources to improve access to basic necessities.

• **Habitat for Humanity:** to support the global need for decent and affordable housing, Republic sponsors the construction of a home with Habitat for Humanity in the hangar each year. The work and partnerships open doors to new possibilities and new realities for community members.

• **Wreaths Across America:** as a highlight to Republic's mission to support the military and Remember, Honor, and Teach, each December on National Wreaths Across America Day, Republic associates coordinate wreath-laying ceremonies at Arlington National Cemetery and more than 3,700 additional locations in all 50 U.S. states, at sea and abroad.

• **Junior Achievement:** an extension of Republic's commitment to workforce development in which Republic provides support and funds to educate children on financial literacy, leadership, and career readiness while also exposing them to opportunities within the aviation industry. Republic also provides various other volunteering opportunities for its employees.

#### Seasonality
Republic's results of operations for any interim period are not necessarily indicative of those for the entire year, in part because the airline industry is subject to seasonal fluctuations and changes in general economic conditions. A significant portion of Republic's CPAs are based on completing flights as scheduled and Republic

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typically has more scheduled flights during the summer months. Republic generally experiences a significantly higher number of weather cancelations during the summer months, which negatively impacts Republic's revenues during this time of year.

#### Legal Proceedings
Republic is involved in various legal actions in the ordinary course of business. Contingent losses expected to arise because of pending legal matters, which could include expected future settlements, judgements, and legal fees, are recorded when probable and estimable. Republic's management believes the ultimate outcome of any pending legal matters will not have a material adverse effect on Republic's consolidated financial statements as a whole.

#### Properties
As of June 30, 2025, Republic's facilities are summarized in the following table:

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|:---|:---|:---|
| **Facility** | **Square Feet** | **Location** |
|  Corporate Headquarters | 91048 | Indianapolis, IN |
|  Indianapolis Training Center | 40144 | Indianapolis, IN |
|  Aviation Campus Training Center | 107400 | Carmel, IN |
|  Aviation Campus Hotel | 164770 | Carmel, IN |
|  Maintenance Hangar | 110469 | Indianapolis, IN |
|  Maintenance Hangar | 149370 | Columbus, OH |
|  Maintenance Hangar | 62000 | Louisville, KY |
|  Maintenance Hangar | 99605 | Pittsburgh, PA |
|  Maintenance Storage | 10500 | Astoria, NY |
|  LIFT Office and Hangar | 25566 | Myrtle Beach, SC |
|  LIFT Office and Hangar | 13590 | Galveston, TX |
|  LIFT Office and Hangar | 14880 | Tuskegee, AL |
|  LIFT Office and Hangar | 33447 | Indianapolis, IN |
|  LIFT Hangar | 7100 | Columbus, IN |
|  LIFT Office | 3750 | Danville, IN |

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Republic leases all of its facilities with the exception of the aviation campus training center ("Training Center") and Aviation Campus Hotel ("Brickyard Hotel"). During the year ended December 31, 2023, Republic entered into a loan agreement which is collateralized by the Training Center and Brickyard Hotel. Further, in 2024 Republic began construction on a new headquarters adjacent to the Training Center and Brickyard Hotel in Carmel, Indiana, which is expected to be completed in December 2025. As of June 30, 2025 no loan agreements have been entered into with regards to the new headquarters. All leased facilities are subject to either long-term leases or on a month-to-month basis.

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#### MESA MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
*The following discussion and analysis of Mesa's financial condition and results of operations should be read together with Mesa's consolidated financial statements, the accompanying notes, and the other financial information included elsewhere in this proxy statement/prospectus. The following discussion contains forward-looking statements that involve risks and uncertainties such as Mesa's plans, estimates, and beliefs. Mesa's actual results could differ materially from those discussed in the forward-looking statements below. Factors that could cause or contribute to those differences in Mesa's actual results include, but are not limited to, those discussed below and those discussed elsewhere in this proxy statement/prospectus, particularly in the sections titled "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors" beginning on page 95 and 47, respectively, of this proxy statement/prospectus.* 

#### Recent Developments

#### The Merger
On April 4, 2025, Mesa entered into the Merger Agreement with Republic. Subject to the terms and conditions of the Merger Agreement, Republic will merge with and into Mesa, with Mesa continuing as the surviving corporation following the Merger. Concurrently with the execution and delivery of the Merger Agreement, Mesa, Republic, and United, among other parties, entered into the Three-Party Agreement, which among other things, requires Mesa to (i) dispose of certain assets, extinguish certain liabilities, and effectuate related transactions and (ii) conduct the Primary Issuance. For additional information, see the sections titled "*The Merger,*" "*The Merger Agreement*" and "*Agreements Related to the Merger — The Three Party Agreement*" beginning on pages 101, 138, and 165, respectively, of this proxy statement/prospectus.

Immediately following the completion of the Merger, Pre-Merger Mesa Shareholders will own approximately six percent (6%) of the Surviving Corporation, with the prospect of owning up to an additional six percent (6%) subject to certain contingencies set forth in the Merger Agreement and the Three-Party Agreement.

The following discussion and analysis of Mesa's financial condition and results of operations does not reflect material changes to Mesa's business, assets, liabilities, financial condition, operations, management, and prospects that will occur if the Merger is consummated.

#### Overview
Headquartered in Phoenix, Arizona, Mesa is the holding company of Mesa Airlines, a regional air carrier providing scheduled passenger service to 79 cities in 31 states, Cuba, and Mexico. As of June 30, 2025, Mesa operated a fleet of 60 E175 regional aircraft with approximately 254 daily departures. As of June 30, 2025, Mesa also had 21 CRJ-900 airframes and 34 CRJ-900 engines held for sale. The aircraft in Mesa's fleet were operated as United Express pursuant to the terms of the United CPA. Except as set forth in the following sentence, all of Mesa's consolidated contract revenues for the three and nine months ended June 30, 2025 and June 30, 2024 were derived from operations associated with the United CPA, leases of aircraft to a third party, and MPD. Revenues during the nine months ended June 30, 2024 also included $7.2 million in revenues derived from the DHL FSA, which terminated in March 2024. Additionally, Mesa's leases of aircraft to a third party terminated upon the sale of such aircraft to United Airlines during the nine months ended June 30, 2025.

The United CPA provides Mesa guaranteed monthly revenue for each aircraft under contract, a fixed fee for each block hour (the number of hours during which the aircraft is in revenue service, measured from the time of gate departure before take-off until the time of gate arrival at the destination), and flights actually flown, and reimbursement of certain direct operating expenses in exchange for providing regional flying on behalf of United Airlines. The United CPA also shelters Mesa from many of the elements that cause volatility in airline financial

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performance, including fuel prices, variations in ticket prices, and fluctuations in number of passengers. In providing regional flying under the United CPA, Mesa uses the logos, service marks, flight crew uniforms, and aircraft paint schemes of United. United controls route selection, pricing, seat inventories, marketing, and scheduling, and provides Mesa with ground support services, airport landing slots, and gate access. Upon closing of the transactions contemplated by the Merger Agreement, the United CPA will be replaced with the Go-Forward CPA. For more information regarding the Go-Forward CPA, please see the section titled *"Republic's Business – Capacity Purchase Agreements with Republic's Partners – United Airlines – Go-Forward CPA"* beginning on page 260 of this proxy statement/prospectus.

#### Industry Trends
Mesa believes its operating and business performance is driven by various factors that typically affect regional airlines and their markets, including trends which affect the broader airline and travel industries, though the terms of the United CPA reduce its exposure to fluctuations in certain trends. The following key factors may materially affect Mesa's future performance.

#### Availability and Training of Qualified Pilots
On July 8, 2013, as directed by the U.S. Congress, the FAA issued more stringent pilot qualification and crew member flight training standards, which, among other things, increased the required training time for new airline pilots from 250 hours to 1,500 hours of flight time. With these changes, the supply of qualified pilot candidates eligible for hiring by the airline industry was dramatically reduced. To address the diminished supply of qualified pilot candidates, regional airlines implemented significant pilot wage and bonus increases.

Mesa launched MPD to address the diminished supply of qualified pilots, provide a more affordable path for pilots to reach the 1,500 flight hours required to earn their Airline Transport Pilot certificate, and provide a pipeline of potential pilots to Mesa Airlines. As part of this program, Mesa operates a fleet of 28 Pipistrel Alpha Trainer 2 aircraft. Currently, pilots pay out-of-pocket for the first 250 flight hours at a rate of $60 per hour. Subsequent flight costs of $75 per hour are financed by Mesa at zero interest and, generally, require repayment of such financing over two years.

Although pilot attrition has returned to normal levels no assurance can be given that the measures Mesa has taken or may take in the future will enable Mesa to attract, hire, and train pilots at a rate necessary to support Mesa's operations.

#### Pilot and Mechanic Attrition
In recent years, Mesa has experienced significant volatility in its attrition rates due to several factors, including pilot wage and bonus increases at other regional air carriers, the growth of cargo, low-cost, and ultra-low-cost carriers, and the increasing number of pilots at major airlines reaching the statutory mandatory retirement age of 65. If Mesa's actual pilot attrition rates differ materially from its projections, Mesa's operations and financial results could be materially and adversely affected. Although Mesa targets maintenance staffing levels above its projected needs to account for attrition — which is widespread in the industry — Mesa has, from time to time, experienced attrition among its maintenance technicians. These technicians have the option to seek employment at mainline airlines, which generally offer higher salaries and more extensive benefit programs than regional airlines are financially able to provide. Attrition of maintenance technicians has, on occasion, required Mesa to supplement its staff with qualified temporary employees.

In 2022, Mesa implemented a new pay structure for pilots, establishing starting wages of $100 per hour for entry-level first officers, $150 per hour for first-year captains and $215 per hour for captains with 20 years of experience. These changes are intended to ensure that Mesa remains competitive in the industry and is able to attract and retain experienced, qualified pilots.

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#### Economic Conditions, Challenges and Risks

#### Liquidity and Going Concern
During the three and nine months ended June 30, 2025, and the fiscal year ended September 30, 2024, costs associated with the transition of Mesa's operations with American Airlines to United Airlines, increased costs associated with pilot wages, together with increasing interest rates, adversely impacted Mesa's financial results, cash flows, financial position, and other key financial ratios. Additionally, United requested that Mesa accelerate the removal of its CRJ-900 aircraft and transition the pilots to Mesa's E175 fleet. These events will lead to increased costs and will impact Mesa's block hour capabilities while these pilots are in training.

As a result, during the nine months ended June 30, 2025, these challenges resulted in a negative impact on Mesa's financial results, highlighted by a net loss of $152.3 million, primarily due to a $54.4 million loss recorded related to the sale of 18 E175 aircraft and $111.8 million in impairment related to held for sale assets and the write-down of the net book value of 10 E175 aircraft. These conditions and events raised concerns about Mesa's ability to continue to fund its operations and meet its debt obligations over the next twelve months.

To address such concerns, management developed and implemented several material changes to Mesa's business, designed to ensure that Mesa could continue to fund its operations and meet its debt obligations over the next twelve months. The following measures were implemented during the three months ended June 30, 2025, and through the date of issuance of the financial statements:

• On April 4, 2025, Mesa entered into the Three-Party Agreement, as well as the Merger Agreement, which provides for, among other things, the following:

• Termination of the United CPA, which will be replaced with a new long-term CPA.

• Sale or disposition by Mesa of all remaining Eligible Assets.

• Extinguishment by Mesa of all remaining debt with cash and sale of assets. Any remaining debt will be assumed by the surviving corporation or forgiven by United Airlines.

• A three percent (3%) increase in CPA block hour rates, retroactive to January 1, 2025.

• Transfer of all of Mesa's rights and obligations under its agreements with Archer.

• On April 4, 2025, Mesa entered into the Sixth Amendment to the Third Amended and Restated Capacity Purchase Agreement with United Airlines which provides for the following:

• The extension of the CPA rate increases agreed upon in the First Amendment to the Third Amended and Restated United CPA and the Second Amendment to the Third Amended and Restated United CPA, dated January 11, 2024, and January 19, 2024, respectively (the "January 2024 United CPA Amendments"), retroactive to January 1, 2025, through March 31, 2026.

• The extension of incentives for achieving certain performance metrics, retroactive to July 1, 2024, through March 31, 2026.

• On April 4, 2025, Mesa entered into the Sixth Amendment to Second Amended and Restated Credit and Guaranty Agreement providing for the waiver of an existing financial covenant default with respect to the period ended March 31, 2025, and a projected financial covenant default with respect to the periods ending June 30, 2025, September 30, 2025, December 31, 2025, and March 31, 2026, each relating to a minimum liquidity requirement under the United Revolving Credit Facility.

• On April 3, 2025, Mesa entered into a purchase agreement with a third party which provides for the sale of 23 GE model CF34-8C engines to the third party for expected gross proceeds of $16.3 million, which will be used to pay down the UST Loan.

• Based on the most recent appraisal value of Mesa's spare parts, Mesa has $10.5 million of borrowing capacity under the United Revolving Credit Facility.

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• In addition to already executed agreements to sell aircraft, Mesa is actively seeking arrangements to sell other surplus assets primarily related to the CRJ fleet including aircraft, engines, and spare parts to reduce debt and optimize operations.

• Mesa has delayed and/or deferred major spending on aircraft and engine maintenance to match the current and projected level of flight activity.

Mesa believes that the plans and initiatives outlined above have effectively alleviated the financial concerns and will allow the company to meet its cash obligations for the next twelve months following the issuance of its financial statements. The forecast of undiscounted cash flows prepared to determine if Mesa has the ability to meet its cash obligations over the next twelve months was prepared with significant judgment and estimates of future cash flows based on projections of CPA block hours, maintenance events, labor costs, and other relevant factors. Assumptions used in the forecast may change or not occur as expected.

As of June 30, 2025, Mesa has $84.7 million of principal maturity payments on long-term debt due within the next twelve months. Mesa plans to meet these obligations with its cash on hand, ongoing cash flows from operations, and the liquidity created from the additional measures identified above. If Mesa's plans are not realized, Mesa intends to explore additional opportunities to create liquidity by refinancing and deferring repayment of Mesa's principal maturity payments that are due within the next twelve months. Mesa continues to monitor covenant compliance with its lenders, as any noncompliance could have a material impact on its financial position, cash flows, and results of operations.

#### Market Volatility
The airline industry is volatile and affected by economic cycles and trends. Consumer confidence and discretionary spending, spread of a virus, fear of terrorism or war, weakening economic conditions, fare initiatives, fluctuations in fuel prices, labor actions, changes in governmental regulations on taxes and fees, weather and other factors have contributed to a number of reorganizations, bankruptcies, liquidations, and business combinations among major and regional airlines. The effect of economic cycles and trends may be somewhat mitigated by Mesa's reliance on the United CPA. If, however, United Airlines experiences a prolonged decline in the number of passengers or is negatively affected by low ticket prices or high fuel prices, it may seek rate reductions in future CPAs, or materially reduce Mesa's scheduled flights in order to reduce its costs. Mesa's financial performance could be negatively impacted by any adverse changes to the rates, number of aircraft or utilization under the United CPA.

#### Labor
The airline industry is heavily unionized. The wages, benefits, and work rules of unionized airline industry employees are determined by collective bargaining agreements. As of June 30, 2025, approximately 68.63% of Mesa's workforce was represented by labor unions, including the ALPA and the AFA. In August 2022, Mesa entered into a three-year Letter of Agreement with the ALPA, which provided for increased overall hourly pay increases of nearly 118% for captains and 172% for new-hire first officers. These pay increases have positively impacted Mesa's ability to attract, hire, and retain pilots in fiscal years 2023, 2024 and 2025, and attrition levels have dropped. In September 2022, Mesa entered into a Letter of Agreement with AFA to extend the term of Mesa's agreement by two years. Mesa's extension with AFA provided, among other things, an increase in compensation for Mesa's flight attendants. The terms and conditions of Mesa's future collective bargaining agreements may be affected by the results of collective bargaining negotiations at other airlines that may have a greater ability, due to larger scale, greater efficiency or other factors, to bear higher costs than Mesa. In addition, conflicts between airlines and their unions can lead to work slowdowns or stoppages. A strike or other significant labor dispute with Mesa's unionized employees may adversely affect Mesa's ability to conduct business.

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#### Competition
The airline industry is highly competitive. Mesa competes principally with other regional airlines. Major airlines typically award CPAs to regional airlines based on the following criteria: ability to fly contracted

schedules, availability of labor resources including pilots, low operating cost, financial resources, geographical infrastructure, overall customer service levels relating to on-time arrival and flight completion percentages, and the overall image of the regional airline. Mesa's ability to renew its existing agreement and earn additional flying opportunities in the future will depend, in significant part, on Mesa's ability to maintain a low-cost structure competitive with other regional air carriers.

#### Maintenance Contracts, Costs, and Timing
Mesa's employees perform routine airframe and engine maintenance along with periodic inspections of equipment at their respective maintenance facilities. Mesa also uses third-party vendors, such as AAR, CAE, GE, and StandardAero, for certain heavy airframe and engine maintenance work, along with parts procurement and component overhaul services for its aircraft fleet. As of June 30, 2025, $36.9 million of parts inventory was consigned to Mesa by AAR under long-term contracts that is not reflected in Mesa's consolidated balance sheet.

The average age of Mesa's E175 type aircraft is approximately 9.6 years. Due to the relatively young age of Mesa's E175 aircraft, they require less maintenance now than they will in the future. In prior periods, Mesa incurred relatively low maintenance expenses on its E175 aircraft because most of the parts are under multi-year warranties and a limited number of heavy airframe checks and engine overhauls have occurred. As Mesa's E175 aircraft age and these warranties expire, Mesa expects that maintenance costs will increase in absolute terms and as a percentage of revenue. In addition, because Mesa's current aircraft were acquired over a relatively short period of time, significant maintenance events scheduled for these aircraft will occur at roughly the same intervals, meaning Mesa will incur its most expensive scheduled maintenance obligations across its present fleet at approximately the same time. These more significant maintenance activities result in out-of-service periods during which aircraft are dedicated to maintenance activities and unavailable for flying under the United CPA.

Mesa uses the direct expense method of accounting for its maintenance of regional jet engine overhauls, airframe, auxiliary power units, and landing gear for the majority of Mesa's fleets, with the exception of Mesa-owned E175 aircraft. Heavy maintenance and major overhaul costs on Mesa's owned E175 fleet are deferred and amortized until the earlier of the end of the useful life of the related asset or the next scheduled heavy maintenance event. Normal recurring maintenance is expensed when the maintenance work is completed, or over the repair period, if materially different. Mesa's maintenance policy is determined by fleet when major maintenance is incurred. While Mesa keeps a record of expected maintenance events, the actual timing, and costs of major engine maintenance expense are subject to variables such as estimated usage, government regulations, and the level of unscheduled maintenance events and their actual costs. Accordingly, Mesa cannot reliably quantify the costs or timing of future maintenance-related expenses for any significant period of time.

#### Aircraft Leasing and Finance Determinations
Mesa has generally funded aircraft acquisitions through a combination of operating leases and debt financing. Mesa's determination to lease or finance the acquisition of aircraft may be influenced by a variety of factors, including the preferences of Mesa's major partners, the strength of Mesa's balance sheet and credit profile and those of Mesa's major partners, the length and terms of the available lease or financing alternatives, the applicable interest rates, and any lease return conditions. When possible, Mesa prefers to finance aircraft through debt rather than operating leases, due to lower operating costs, extended depreciation period, opportunity for aircraft equity, absence of lease return conditions, and greater flexibility in renewing the aircraft under the CPA with Mesa's major partner after paying off the principal balance.

Subsequent to the initial acquisition of an aircraft, Mesa may also refinance the aircraft or convert one form of financing to another (e.g., replacing an aircraft lease with debt financing). The purchase of leased aircraft allows Mesa to lower its operating costs and avoid lease-related use restrictions and return conditions.

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As of June 30, 2025, Mesa had 60 aircraft in its fleet under lease, all of which are E175 aircraft owned by United Airlines and leased to Mesa at nominal amounts. In order to determine the proper classification of Mesa's leased aircraft as either operating leases or finance leases, Mesa must make certain estimates at the inception of the lease relating to the economic useful life and the fair value of an asset as well as select an appropriate discount rate to be used in discounting future lease payments. These estimates are utilized by management in making computations as required by existing accounting standards that determine whether the lease is classified as an operating lease or a finance lease. Mesa's aircraft leases classified as operating leases results in rental payments being charged to expense over the terms of the related leases.

Mesa is also subject to lease return provisions that require a minimum portion of eligible flight time for certain components remain when the aircraft is returned at the lease expiration. Mesa estimates the cost of maintenance lease return obligations and accrue such costs over the remaining lease term when the expense is probable and can be reasonably estimated.

#### Seasonality
Mesa's results of operations for any interim period are not necessarily indicative of those for the entire year since the airline industry is subject to seasonal fluctuations and general economic conditions. Mesa's operations are somewhat favorably affected by increased utilization of its aircraft in the summer months and are unfavorably affected by increased fleet maintenance and by inclement weather during the winter months.

#### Components of Results of Operations
The following discussion summarizes the key components of Mesa's consolidated and condensed consolidated statements of operations and comprehensive loss.

#### Operating Revenues
Mesa's operating revenues consist primarily of contract revenue as well as pass-through and other revenues.

*Contract Revenue* 

Contract revenue consists of the fixed monthly amounts per aircraft received pursuant to the United CPA, along with the additional amounts received based on the number of flights and block hours flown, rental revenue for aircraft leased to a third party, and revenue from participants in MPD. Contract revenues Mesa receives from United Airlines are paid and recognized over time consistent with the delivery of service under the United CPA.

*Pass-Through and Other Revenue* 

Pass-through and other revenue consists of passenger liability insurance, aircraft property taxes, landing fees, and other aircraft and traffic servicing costs received pursuant to Mesa's agreements with United Airlines.

#### Operating Expenses
Mesa's operating expenses consist of the following items:

*Flight Operations* 

Flight operations expense includes costs related to salaries, bonuses and benefits earned by Mesa's pilots, flight attendants, and dispatch personnel, as well as costs related to technical publications, lodging of Mesa's flight crews, and pilot training expenses.

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*Fuel* 

Fuel expense includes fuel and related fueling costs for flying Mesa undertakes outside of the United CPA, including aircraft repositioning and maintenance. All aircraft fuel and related fueling costs for flying under the United CPA were directly paid and supplied by United Airlines. The fuel and related cost for flying under the DHL FSA were directly paid and supplied by DHL. Accordingly, Mesa does not record an expense or the related revenue for fuel supplied United Airlines for flying under the United CPA or DHL under the DHL FSA except fuel costs incurred for controllable ferry flights for United Airlines. Fuel expenses relating to MPD are paid by Mesa.

*Maintenance* 

Maintenance expense includes costs related to engine overhauls, airframe, landing gear, and normal recurring maintenance, which includes pass-through maintenance costs related to Mesa's E175 aircraft. Heavy maintenance and major overhaul costs on Mesa's owned E175 fleet are deferred and amortized until the earlier of the end of the useful life of the related asset or the next scheduled heavy maintenance event. All other maintenance costs are expensed as incurred, except for certain maintenance contracts where labor and materials price risks have been transferred to the service provider and require payment on a utilization basis, such as flight hours. Costs incurred for maintenance and repair for utilization maintenance contracts where labor and materials price risks have been transferred to the service provider are charged to maintenance expense based on contractual payment terms. As a result of using the direct expense method for heavy maintenance on the majority of Mesa's fleets, the timing of maintenance expense reflected in the financial statements may vary significantly from period to period.

*Aircraft Rent* 

Aircraft rent expense includes costs related to leased engines and aircraft.

*Aircraft and Traffic Servicing* 

Aircraft and traffic servicing expense includes expenses related to the United CPA and the DHL FSA, including aircraft cleaning, passenger disruption reimbursements, international navigation fees, and wages of airport operations personnel, a portion of which are reimbursable by Mesa's major partners.

*General and Administrative* 

General and administrative expense includes insurance and taxes, the majority of which are pass-through costs, non-operational administrative employee wages and related expenses, building rents, real property leases, utilities, legal, audit, and other administrative expenses.

*Depreciation and Amortization* 

Depreciation expense is a periodic non-cash charge primarily related to aircraft, engine, and equipment depreciation. Amortization expense is a periodic non-cash charge related to Mesa's customer relationship intangible asset.

*Asset Impairment* 

Asset impairment includes charges for impairments of assets either designated as held for sale or assets that are held and used but determined to have been impaired.

*Impairment* 

Impairment expense is a non-recurring, non-cash charge related to the reduction in value of aircraft and related parts, primarily upon reclassification to held for sale.

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*Other Operating Expenses* 

Other operating expenses primarily consists of fuel costs for flying Mesa undertakes outside of the United CPA (including aircraft re-positioning and maintenance) as well as costs for aircraft and traffic servicing, such as aircraft cleaning, passenger disruption reimbursements, international navigation fees, and wages of airport operations personnel, a portion of which are reimbursable by United Airlines. All aircraft fuel and related fueling costs for flying under the United CPA are directly paid and supplied by United Airlines. Accordingly, Mesa does not record an expense or pass-through revenue for fuel supplied by United Airlines for flying under the United CPA. Fuel expenses relating to MPD are paid by Mesa.

#### Other Income (Expense), Net
*Interest Expense* 

Interest expense is interest on Mesa's debt incurred to finance purchases of aircraft, engines, and equipment, including amortization of debt financing costs, and discounts.

*Interest Income* 

Interest income includes interest income on Mesa's cash and cash equivalent balances.

*Gain on Investments* 

Gain on investments relates to gains resulting from the transfer of Mesa's investments in equity securities.

*Gain on Investments, Net* 

Gain on investments, net consists of gains on the sale, or transfer of Mesa's investments in equity securities to another party.

*Unrealized Loss on Investments, Net* 

Unrealized loss on investments, net relates to losses resulting from the change in fair value of Mesa's investments in equity securities.

*Unrealized (Loss)/Gain, Net* 

Unrealized (loss)/gain on investments, net consists of losses, or gains due to changes in the value of Mesa's investments in equity securities.

*Gain on Extinguishment of Debt* 

Gain on extinguishment of debt relates to the settlement of a loan for an amount less than the outstanding principal balance.

*Gain on Debt Forgiveness* 

Gain on debt forgiveness consists of gains resulting from the forgiveness earned on Mesa's deemed prepayment associated with the United Revolving Credit Facility for the achievement of certain performance metrics.

*Other Expense* 

Other expense includes expense derived from activities not classified in any other area of the consolidated statements of income and condensed consolidated statements of operations and comprehensive loss.

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#### Segment Reporting
Operating segments are defined as components of an enterprise about which discrete financial information is available that is evaluated regularly by the chief operating decision maker ("CODM") in deciding how to allocate resources and in assessing operating performance. In consideration of ASC 280, Segment Reporting, Mesa is not organized around specific services or geographic regions. Mesa currently operates in one service line providing scheduled flight services in accordance with the United CPA.

While Mesa operates under a capacity purchase agreement, it does not manage its business based on any performance measure at the individual contract level. Additionally, Mesa's CODM uses consolidated financial information to evaluate Mesa's performance, which is the same basis on which he communicates Mesa's results and performance to Mesa's board of directors. The CODM bases all significant decisions regarding the allocation of Mesa's resources on a consolidated basis. Based on the information described above and in accordance with the applicable literature, management has concluded that Mesa is organized and operated as one operating and reportable segment.

#### Results of Operations

#### Three Months Ended June 30, 2025 Compared to Three Months Ended June 30, 2024
Mesa had operating loss of $0.1 million in the three months ended June 30, 2025 compared to operating loss of $9.0 million in the three months ended June 30, 2024. In the three months ended June 30, 2025, Mesa had net income of $20.9 million compared to net loss of $19.9 million in the three months ended June 30, 2024.

Mesa's operating results for the three months ended June 30, 2025 improved as a result of (i) decreases in flight operations expense as a result of decreased pilot training and lower pilot wages; and (ii) decreases in depreciation expense, primarily due to the retirement and sale of several aircraft; and (iii) decreases in impairment related to held for sale assets and the write down of E175 aircraft. This improvement was partially offset by a decrease in contract revenue due to fewer aircraft under contract and higher deferred revenue.

#### Operating Revenues

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30,** | **Three Months Ended June 30,** | | |
|  | **2025** | **2024** | **Change** | **Change** |
|  Operating revenues ($ in thousands): |  |  |  |  |
|  Contract | $69940 | $95596 | $(25656) | (26.8)% |
|  Pass-through and other | 22844 | 15197 | 7647 | 50.3% |
|  Total operating revenues | $92784 | $110793 | $(18009) | (16.3)% |
|  Operating data: |  |  |  |  |
|  Available seat miles-ASMs (thousands) | 996290 | 962669 | 33621 | 3.5% |
|  Block hours | 44100 | 43813 | 287 | 0.7% |
|  Revenue passenger miles-RPMs (thousands) | 831706 | 817434 | 14272 | 1.7% |
|  Average stage length (miles) | 604 | 535 | 69 | 12.9% |
|  Contract revenue per available seat mile-CRASM (in cents) | 7.02 | 9.93 | (2.91) | (29.3)% |
|  Passengers | 1357129 | 1513581 | (156452) | (10.3)% |

---

Total operating revenue decreased by $18.0 million, or 16.3%, to $92.8 million for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024. Contract revenue decreased by $25.7 million, or 26.8%, to $66.9 million, primarily due to fewer aircraft under contract. Mesa's block hours flown during the three months ended June 30, 2025, increased 0.7% compared to the three months ended June 30, 2024 due to an increase in the average stage length. Mesa's pass-through and other revenue increased by $7.6 million, or 50.3%, to $22.8 million compared to the three months ended June 30, 2024 due to an increase in pass-through maintenance related to Mesa's E175 fleet.

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#### Operating Expenses

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30,** | **Three Months Ended June 30,** | | |
|  | **2025** | **2024** | **Change** | **Change** |
|  Operating expenses ($ in thousands): |  |  |  |  |
|  Flight operations | $36551 | $45455 | $(8904) | (19.6)% |
|  Maintenance | 41417 | 44266 | (2849) | (6.4)% |
|  Aircraft rent | 98 | 1684 | (1586) | (94.2)% |
|  General and administrative | 11585 | 9715 | 1870 | 19.2% |
|  Depreciation and amortization | 3377 | 9730 | (6353) | (65.3)% |
|  Asset impairment | (52) | 7880 | (7932) | (100.7)% |
|  Other operating expenses | (46) | 1090 | (1136) | (104.2)% |
|  Total operating expenses | $92930 | $119820 | $(26890) | (22.4)% |
|  Operating data: |  |  |  |  |
|  Available seat miles-ASMs (thousands) | 996290 | 962669 | 33621 | 3.5% |
|  Block hours | 44100 | 43813 | 287 | 0.7% |
|  Average stage length (miles) | 604 | 535 | 69 | 12.9% |
|  Departures | 22162 | 24144 | (1982) | (8.2)% |

---

*Flight Operations* 

Flight operations expense decreased $8.9 million, or 19.6%, to $36.6 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. The decrease was primarily driven by decreased pilot training expense and lower pilot wages as a result of decreases in headcount and operating a single E 175 fleet type.

*Maintenance* 

Aircraft maintenance expense decreased $2.8 million, or 6.4%, to $41.4 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. This decrease was primarily driven by a decrease in labor and other expense. Total pass-through maintenance expenses reimbursed by United Airlines increased by $6.3 million during the three months ended June 30, 2025 compared to the three months ended June 30, 2024.

The following table presents information regarding Mesa's maintenance costs during the three months ended June 30, 2025 and June 30, 2024 (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30,** | **Three Months Ended June 30,** | | |
|  | **2025** | **2024** | **Change** | **Change** |
|  Engine overhaul | $(4) | $— | $(4) | 100.0% |
|  Pass-through engine overhaul | 5494 | 6826 | (1332) | (19.5)% |
|  C-check | 1299 | 1594 | (295) | (18.5)% |
|  Pass-through C-check | 3812 | 2050 | 1762 | 86.0% |
|  Component contracts | 2104 | 4226 | (2122) | (50.2)% |
|  Rotable and expendable parts | 1403 | 4382 | (2979) | (68.0)% |
|  Other pass-through | 11788 | 5956 | 5832 | 97.9% |
|  Labor and other | 15521 | 19232 | (3711) | (19.3)% |
|  Total | $41417 | $44266 | $(2849) | (6.4)% |

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*Aircraft Rent* 

Aircraft rent expense decreased $1.6 million, or 94.2%, to $0.1 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. The decrease is primarily due to fewer engine lease costs during the three months ended June 30, 2025.

*General and Administrative* 

General and administrative expense increased $1.9 million, or 19.2%, to $11.6 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. The increase is primarily driven by increases in wages, pass-through insurance costs, and legal fees.

*Depreciation and Amortization* 

Depreciation and amortization expense decreased by $6.4 million, or 65.3%, to $3.4 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 due to aircraft in the fleet being sold or classified as non-depreciable assets held for sale.

*Asset Impairment* 

Asset impairment of $(0.1) million was recorded for the three months ended June 30, 2025 related to held for sale assets. There was $7.9 million of asset impairment recorded for the three months ended June 30, 2024 related to held for sale assets.

*Other Operating Expenses* 

Other operating expenses decreased by $1.1 million, to $(46) thousand for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. The decrease is primarily attributable to lower interrupted trip expense during the three months ended June 30, 2025.

#### Other Income/(Expense)
Other income (expense) increased by $32.5 million, to $20.8 million for the three months ended June 30, 2025, compared to the three months ended June 30, 2024. The increase is primarily attributable to the write off of warrant liabilities, lower interest expense, and lower losses on investment.

#### Income Taxes
The income tax benefit totaled $0.2 million for the three months ended June 30, 2025 compared to a tax benefit of $0.8 million for the three months ended June 30, 2024. The effective tax rate ("ETR") from continuing operations was -1.2% for the three months ended June 30, 2025 compared to 3.9% for the three months ended June 30, 2024. Mesa's ETR during the three months ended June 30, 2025 and June 30, 2024 differed from the statutory rate during both periods principally as a result of the impact of the valuation allowance on operating loss carryforwards and deferred tax assets on tax expense.

Mesa continues to maintain a valuation allowance on a portion of its federal and state net operating losses in jurisdictions with shortened carryforward periods or in jurisdictions where Mesa's operations have significantly decreased as compared to prior years in which the net operating losses were generated.

As of June 30, 2025, Mesa had aggregate federal and state net operating loss carryforwards of approximately $277.6 million and $150.6 million, respectively, which expire in 2030-2038 and 2024-2043, respectively. No net operating loss carryforwards are expected to expire in the current fiscal year.

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#### Nine Months Ended June 30, 2025 Compared to Nine Months Ended June 30, 2024
Mesa had operating loss of $168.2 million in the nine months ended June 30, 2025 compared to operating loss of $48.8 million in the nine months ended June 30, 2024. In the nine months ended June 30, 2025, Mesa had net loss of $152.3 million compared to net loss of $66.1 million in the nine months ended June 30, 2024.

Mesa's operating results for the nine months ended June 30, 2025 worsened as a result of (i) decreases in contract revenue due to reduced block hours flown and fewer aircraft under contract; and (ii) large losses and impairments associated with the sale of 18 E175 aircraft, partially offset by (a) decreases in flight operations as a result of decreased pilot training and lower pilot wages; and (b) decreases in depreciation expense, primarily due to the retirement and sale of several aircraft.

#### Operating Revenues

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Nine Months Ended June 30,** | **Nine Months Ended June 30,** | | |
|  | **2025** | **2024** | **Change** | **Change** |
|  Operating revenues ($ in thousands): |  |  |  |  |
|  Contract | $219041 | $310516 | $(91475) | (29.5)% |
|  Pass-through and other | 71723 | 50636 | 21087 | 41.6% |
|  Total operating revenues | $290764 | $361152 | $(70388) | (19.5)% |
|  Operating data: |  |  |  |  |
|  Available seat miles-ASMs (thousands) | 2760491 | 2951231 | (190740) | (6.5)% |
|  Block hours | 122652 | 133741 | (11089) | (8.3)% |
|  Revenue passenger miles-RPMs (thousands) | 2280748 | 2474097 | (193349) | (7.8)% |
|  Average stage length (miles) | 584 | 538 | 46 | 8.6% |
|  Contract revenue per available seat mile-CRASM (in cents) | 7.93 | 10.52 | (2.59) | (24.6)% |
|  Passengers | 3835703 | 4544453 | (708750) | (15.6)% |

---

Total operating revenue decreased by $70.4 million, or 19.5%, to $290.8 million for the nine months ended June 30, 2025 as compared to the nine months ended June 30, 2024. Contract revenue decreased by $91.5 million, or 29.5%, to $219.0 million primarily driven by reduced block hours flown and fewer aircraft under contract compared to the nine months ended June 30, 2024. Mesa's block hours flown during the nine months ended June 30, 2025 decreased 8.3% compared to the nine months ended June 30, 2024 due to a decrease in scheduled flying for United Airlines and fewer aircraft under contract. Mesa's pass-through and other revenue increased by $21.1 million, or 41.6%, to $71.7 million compared to the nine months ended June 30, 2024 due to an increase in pass-through maintenance related to Mesa's E175 fleet.

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#### Operating Expenses

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Nine Months Ended June 30,** | **Nine Months Ended June 30,** | | |
|  | **2025** | **2024** | **Change** | **Change** |
|  Operating expenses ($ in thousands): |  |  |  |  |
|  Flight operations | $108021 | $146602 | $(38581) | (26.3)% |
|  Maintenance | 131483 | 137165 | (5682) | (4.1)% |
|  Aircraft rent | 3038 | 4296 | (1258) | (29.3)% |
|  General and administrative | 32588 | 32857 | (269) | (0.8)% |
|  Depreciation and amortization | 17311 | 32846 | (15535) | (47.3)% |
|  Asset impairment | 111786 | 50923 | 60863 | 119.5% |
|  Loss on sale of assets | 54397 | 150 | 54247 | 36164.7% |
|  Other operating expenses | 335 | 5098 | (4763) | (93.4)% |
|  Total operating expenses | $458959 | $409937 | $49022 | 12.0% |
|  Operating data: |  |  |  |  |
|  Available seat miles-ASMs (thousands) | 2760491 | 2951231 | (190740) | (6.5)% |
|  Block hours | 122652 | 133741 | (11089) | (8.3)% |
|  Average stage length (miles) | 584 | 538 | 46 | 8.6% |
|  Departures | 63407 | 74089 | (10682) | (14.4)% |

---

*Flight Operations* 

Flight operations expense decreased $38.6 million, or 26.3%, to $108.0 million for the nine months ended June 30, 2025 compared to the nine months ended June 30, 2024. The decrease was primarily driven by decreased pilot training expense and lower pilot wages as a result of fewer block hours flown, decreases in headcount, and operating a single E175 fleet type.

*Maintenance* 

Aircraft maintenance expense decreased $5.7 million, or 4.1%, to $131.5 million for the nine months ended June 30, 2025 compared to the nine months ended June 30, 2024. This decrease was primarily driven by a decrease in labor and other and rotable and expendable parts, partially offset by an increase in other pass-through engine overhaul, other pass-through costs, and C-check maintenance expenses. Total pass-through maintenance expenses reimbursed by United Airlines increased by $24.7 million during the nine months ended June 30, 2025 compared to the nine months ended June 30, 2024.

The following table presents information regarding Mesa's maintenance costs during the nine months ended June 30, 2025 and June 30, 2024 (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Nine Months Ended June 30,** | **Nine Months Ended June 30,** | | |
|  | **2025** | **2024** | | |
|  Engine overhaul | $82 | $49 | $33 | 67.3% |
|  Pass-through engine overhaul | 24744 | 18075 | 6669 | 36.9% |
|  C-check | 3252 | 5573 | (2321) | (41.6)% |
|  Pass-through C-check | 17797 | 9098 | 8699 | 95.6% |
|  Component contracts | 9811 | 14620 | (4809) | (32.9)% |
|  Rotable and expendable parts | 4354 | 12601 | (8247) | (65.4)% |
|  Other pass-through | 25582 | 16213 | 9369 | 57.8% |
|  Labor and other | 45861 | 60936 | (15075) | (24.7)% |
|  Total | $131483 | $137165 | $(5682) | (4.1)% |

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*Aircraft Rent* 

Aircraft rent expense decreased $1.3 million, or 29.3%, to $3.0 million for the nine months ended June 30, 2025 compared to the nine months ended June 30, 2024. The decrease is primarily due to fewer engine lease costs during the nine months ended June 30, 2025.

*General and Administrative* 

General and administrative expense decreased $0.3 million, or 0.8%, to $32.6 million for the nine months ended June 30, 2025 compared to the nine months ended June 30, 2024. The decrease is primarily driven by decreases in pass-through property tax, partially offset by increased legal fees.

*Depreciation and Amortization* 

Depreciation and amortization expense decreased by $15.5 million, or 47.3%, to $17.3 million for the nine months ended June 30, 2025 compared to the nine months ended June 30, 2024 due to aircraft in Mesa's fleet being sold or classified as non-depreciable assets held for sale.

*Asset Impairment* 

Asset impairment of $111.8 million was recorded for the nine months ended June 30, 2025 primarily related to held for sale assets and the write down of net book value of 10 E175 aircraft. There was $50.9 million of asset impairment recorded for the nine months ended June 30, 2024, related to held for sale assets.

*Other Operating Expenses* 

Other operating expenses decreased by $4.8 million, to $0.3 million for the nine months ended June 30, 2025 compared to the nine months ended June 30, 2024. The decrease is primarily attributable to lower interrupted trip expense and ferry fuel costs during the nine months ended June 30, 2025.

*Other Income/(Expense)* 

Other income (expense) increased by $27.2 million to $10.0 million for the nine months ended June 30, 2025, compared to the nine months ended June 30, 2024. The increase is primarily attributable to the write off of warrant liabilities, lower interest expense, and lower losses on investments for the nine months ended June 30, 2025, partially offset by lower non-operating gains.

#### Income Taxes
The income tax benefit totaled $5.8 million for the nine months ended June 30, 2025 compared to a tax expense of $0.1 million for the nine months ended June 30, 2024. The ETR from continuing operations was 3.7% for the nine months ended June 30, 2025 compared to -0.2% for the nine months ended June 30, 2024. Mesa's ETR during the nine months ended June 30, 2025 and June 30, 2024 differed from the statutory rate during both periods principally as a result of the impact of the valuation allowance on operating loss carryforwards and deferred tax assets on tax expense.

Mesa continues to maintain a valuation allowance on a portion of its federal and state net operating losses in jurisdictions with shortened carryforward periods or in jurisdictions where its operations have significantly decreased as compared to prior years in which the net operating losses were generated.

As of June 30, 2025, Mesa had aggregate federal and state net operating loss carryforwards of approximately $277.6 million and $150.6 million, respectively, which expire in 2030-2038 and 2024-2043, respectively. No state net operating loss carryforwards are expected to expire in the current fiscal year.

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#### Fiscal Year Ended September 30, 2024 Compared to Fiscal Year Ended September 30, 2023
Mesa had an operating loss of $65.8 million in the fiscal year ended September 30, 2024, compared to an operating loss of $84.3 million in the fiscal year ended September 30, 2023. In the fiscal year ended September 30, 2024, Mesa had a net loss of $91.0 million compared to a net loss of $120.1 million in the fiscal year ended September 30, 2023.

Mesa's operating results for the fiscal year ended September 30, 2024 improved as a result of decreases in operating expenses due to (i) decreases in flight operations expense as a result of decreased pilot training and lower pilot wages; (ii) decreases in maintenance expense, primarily due to a decrease in pass-through engine overhaul on Mesa's E175 fleet; (iii) decreases in general and administrative expenses, primarily due to a decrease in pass-through property tax; and (iv) decreases in depreciation expense, primarily due to the retirement and sale of several aircraft. These decreases were partially offset by (i) impairment expense of $73.7 in the fiscal year ended September 30, 2024 compared to impairment expense of $54.3 million in the fiscal year ended September 30, 2023; and (ii) a decrease in contract revenue due to reduced block hours flown, fewer aircraft under contract, and the wind-down of the DHL FSA, partially offset by an increased United Airlines block hour compensation rate.

#### Operating Revenues/Statistics

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended September 30,** | **Year Ended September 30,** | | |
|  | **2024** | **2023** | **Change** | **Change** |
|  Operating revenues ($ in thousands): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contract | $404322 | $421298 | $(16976) | (4.0)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pass-through and other | 72087 | 76767 | (4680) | (6.1)% |
|  Total operating revenues | $476409 | $498065 | $(21656) | (4.3)% |
|  Operating data: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Available seat miles — ASMs (thousands) | 3898559 | 4235413 | (336854) | (8.0)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Block hours | 176236 | 188947 | (12711) | (6.7)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revenue passenger miles — RPMs (thousands) | 3261349 | 3541712 | (280363) | (7.9)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Average stage length (miles) | 538 | 552 | (14) | (2.5)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contract revenue per available seat mile — CRASM (in cents) | 10.37 | 9.95 | 0.42 | 4.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Passengers | 5980033 | 6310730 | (330697) | (5.2)% |

---

Total operating revenue decreased by $21.7 million, or 4.4%, to $476.4 million during the fiscal year ended September 30, 2024 as compared to the fiscal year ended September 30, 2023. Contract revenue decreased by $17.0 million, or 4.0%, to $404.3 million during the fiscal year September 30, 2024, primarily driven by reduced block hours flown, fewer aircraft under contract, and the wind-down of the DHL FSA compared to the fiscal year ended September 30, 2023, partially offset by an increased United Airlines block hour compensation rate. Mesa's block hours flown during the fiscal year ended September 30, 2024 decreased 6.7% as compared to the fiscal year ended September 30, 2023 due to a decrease in scheduled flying on Mesa's CRJ fleet. Mesa's pass-through and other revenue decreased by $4.7 million, or 6.1%, to $72.1 million compared to the fiscal year ended September 30, 2023 due to a decrease in pass-through maintenance related to Mesa's E175 fleet.

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#### Operating Expenses

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended September 30,** | **Year Ended September 30,** | | |
|  | **2024** | **2023** | **Change** | **Change** |
|  Operating expenses ($ in thousands): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Flight operations | $184472 | $216748 | $(32276) | (14.9)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Maintenance | 184725 | 199648 | (14923) | (7.5)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Aircraft rent | 7797 | 6200 | 1597 | 25.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative | 44248 | 48765 | (4517) | (9.3)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 40041 | 60359 | (20318) | (33.7)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asset impairment | 73709 | 54343 | 19366 | 35.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss/(Gain) on sale of assets | 682 | (7162) | 7844 | (109.5)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other operating expenses | 6555 | 3510 | 3045 | 86.8% |
|  Total operating expenses | $542229 | $582411 | $(40182) | (6.9)% |
|  Operating data: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Available seat miles — ASMs (thousands) | 3898559 | 4235413 | (336854) | (8.0)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Block hours | 176236 | 188947 | (12711) | (6.7)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Average stage length (miles) | 538 | 552 | (14) | (2.5)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Departures | 97618 | 103675 | (6057) | (5.8)% |

---

*Flight Operations* 

Flight operations expense decreased by $32.3 million, or 14.9%, to $184.5 million for the fiscal year ended September 30, 2024, compared to the fiscal year ended September 30, 2023. The decrease was primarily driven by decreased pilot training expense and lower pilot wages as a result of fewer block hours flown and decreases in headcount.

*Maintenance* 

Aircraft maintenance expense decreased $14.9 million, or 7.5%, to $184.7 million for the fiscal year ended September 30, 2024, compared to the fiscal year ended September 30, 2023. This decrease was primarily driven by a decrease in pass-through engine overhaul and rotable and expendable parts, partially offset by an increase in other pass-through costs and C-check maintenance expenses. Total pass-through maintenance expenses reimbursed by Mesa's major partners decreased by $3.1 million during the fiscal year ended September 30, 2024 compared to the fiscal year ended September 30, 2023.

The following table presents information regarding Mesa's aircraft maintenance costs during the fiscal years ended September 30, 2024 and 2023:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended September 30,** | **Year Ended September 30,** | | |
|  | **2024** | **2023** | **Change** | **Change** |
|  Engine overhaul | $(477) | $444 | $(921) | (207.4)% |
|  Pass-through engine overhaul | 23490 | 31911 | (8421) | (26.4)% |
|  C-check | 6639 | 6451 | 188 | 2.9% |
|  Pass-through C-check | 16263 | 16926 | (663) | (3.9)% |
|  Component contracts | 19129 | 20102 | (973) | (4.8)% |
|  Rotable and expendable parts | 17645 | 20566 | (2921) | (14.2)% |
|  Other pass-through | 22373 | 16431 | 5942 | 36.2% |
|  Labor and other | 79663 | 86817 | (7154) | (8.2)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $184725 | $199648 | $(14923) | (7.5)% |

---

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*Aircraft Rent* 

Aircraft rent expense increased by $1.6 million, or 25.8%, to $7.8 million for the fiscal year ended September 30, 2024, compared to the fiscal year ended September 30, 2023. This increase was due to several short-term CRJ-900 airframe and engine leases during the fiscal year ended September 30, 2024.

*General and Administrative* 

General and administrative expense decreased by 4.5 million, or 9.3%, to $44.2 million for the fiscal year ended September 30, 2024, compared to the fiscal year ended September 30, 2023. This decrease was primarily driven by decreases in pass-through property taxes and pass-through insurance costs.

*Depreciation and Amortization* 

Depreciation and amortization expense decreased by $20.3 million, or 33.7%, to $40.0 million for the fiscal year ended September 30, 2024, compared to the fiscal year ended September 30, 2023. The decrease is primarily due to aircraft in Mesa's fleet being sold or classified as non-depreciable assets held for sale.

*Asset Impairment* 

Asset impairment of $73.7 million was recorded for the fiscal year ended September 30, 2024 primarily related to eight CRJ-900 aircraft, 26 CRJ-900 airframes (without engines), and 77 model CF34-8C engines being designated as held for sale. There was $54.3 million of asset impairment recorded for the fiscal year ended September 30, 2023 related to the write-off of Mesa's customer relationship intangible asset and 14 CRJ-900 aircraft being designated as held for sale.

*Loss/(Gain) on Sale of Assets* 

Loss on sale of assets of $0.7 million was recorded for the fiscal year ended September 30, 2024 related to the sale of certain engines. A gain on the sale of assets of $7.2 million was recorded for the fiscal year ended September 30, 2023 related to a 30-engine sale agreement.

*Other Operating Expenses* 

Other operating expenses increased by $3.0 million, or 86.8%, to $6.6 million for the fiscal year ended September 30, 2024 compared to the fiscal year ended September 30, 2023. The increase is primarily attributable to interrupted trip costs during the fiscal year ended September 30, 2024.

#### Other Expense
Other expense decreased by $19.8 million, or 44.6%, to $24.7 million for the fiscal year ended September 30, 2024, compared to the fiscal year ended September 30, 2023. The decrease is primarily attributable to realized gains on investments in equity securities of $8.0 million, gain on extinguishment of debt of $3.0 million, gain on debt forgiveness of $10.5 million, and decreases on interest expense. The decrease is partially offset by $6.1 million in unrealized losses on investments in equity securities for the fiscal year ended September 30, 2024 compared to $5.4 million in unrealized gains on investments in equity securities for the fiscal year ended September 30, 2023.

#### Income Taxes
In the fiscal year ended September 30, 2024, Mesa's ETR was (0.6)% compared to 6.9% in the fiscal year ended September 30, 2023. Mesa's tax rate can vary depending on changes in tax laws, adoption of accounting standards, the amount of income Mesa earns in each state, and the state tax rate applicable to such income, as well as any valuation allowance required on Mesa's state net operating losses.

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Mesa recorded an income tax provision of $0.5 million and an income tax benefit of $8.7 million for the fiscal years ended September 30, 2024 and 2023, respectively.

The income tax provision for the fiscal year ended September 30, 2024 resulted in an effective tax rate of (0.6)%, which differed from the U.S. federal statutory rate of 21%, primarily due to the impact of state taxes and permanent differences between financial statement and taxable income. In addition to the state effective tax rate impact, other state impacts include changes in the valuation allowance against federal and state net operating losses, expired state attributes, disallowed unrealized losses, and changes in state apportionment, and statutory rates.

The income tax provision for the fiscal year ended September 30, 2023 resulted in an effective tax rate of 6.9%, which differed from the U.S. federal statutory rate of 21%, primarily due to the impact of state taxes and permanent differences between financial statement and taxable income. In addition to the state effective tax rate impact, other state impacts include changes in the valuation allowance against federal and state net operating losses, expired state attributes, disallowed unrealized losses, and changes in state apportionment and statutory rates.

Mesa continues to maintain a valuation allowance on a portion of its state net operating losses in jurisdictions with shortened carryforward periods or in jurisdictions where its operations have significantly decreased as compared to prior years in which the net operating losses were generated.

As of September 30, 2024, Mesa had aggregate federal and state net operating loss carryforwards of approximately $511.7 million and $226.9 million, which expire in 2027-2038 and 2024-2044, respectively, with approximately $4.0 million of state net operating loss carryforwards that expired in 2024.

Please see Note 12 — "Income Taxes" in the notes to Mesa's audited consolidated financial statements included elsewhere in this proxy statement/prospectus.

#### Fiscal Year Ended September 30, 2023 Compared to Fiscal Year Ended September 30, 2022
Mesa had an operating loss of $84.3 million in the year ended September 30, 2023, compared to an operating loss of $185.0 million in the year ended September 30, 2022. In the year ended September 30, 2023, Mesa had a net loss of $120.1 million compared to a net loss of $182.7 million in the year ended September 30, 2022.

Mesa's operating results for the year ended September 30, 2023 reflect an increase in flight operations expense resulting from the implementation of the new pilot pay scale that began September 15, 2022 and increased pilot training. Mesa also saw decreases in aircraft rent due to the new agreement with RASPRO Trust entered into in December 2022 in which 15 of Mesa's CRJ-900 aircraft were reclassified from operating leases to finance leases, and depreciation and amortization expense due to the reduced carrying value of Mesa's CRJ-900 aircraft assets and aircraft in Mesa's fleet being classified as non-depreciable assets held for sale. Additionally, Mesa recorded $54.3 million in impairment charges related associated with designating 14 CRJ-900 aircraft as held for sale as well as Mesa's customer relationship intangible asset compared to impairment charges of $171.8 million in impairment charges associated with certain long-lived assets as well as certain of Mesa's CRJ aircraft that were classified as held for sale in the year ended September 30, 2022.

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#### Operating Revenues

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended September 30,** | **Year Ended September 30,** | | |
|  | **2023** | **2022** | **Change** | **Change** |
|  Operating revenues ($ in thousands): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contract | $421298 | $478482 | $(57184) | (12.0)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pass-through and other | 76767 | 52519 | 24248 | 46.2% |
|  Total operating revenues | $498065 | $531001 | $(32936) | (6.2)% |
|  Operating data: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Available seat miles — ASMs (thousands) | 4235413 | 6674748 | (2439335) | (36.5)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Block hours | 188947 | 271511 | (82564) | (30.4)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revenue passenger miles — RPMs (thousands) | 2705920 | 5549595 | (2843675) | (51.2)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Average stage length (miles) | 552 | 509 | 43 | 8.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contract revenue per available seat mile — CRASM (in cents) | 9.95 | 7.18 | 2.77 | 38.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Passengers | 6310730 | 8083870 | (1773140) | (21.9)% |

---

Total operating revenue decreased by $32.9 million, or 6.2%, during the fiscal year ended September 30, 2023, compared to the fiscal year ended September 30, 2022. Contract revenue decreased by $57.2 million, or 12.0% during the fiscal year September 30, 2023, primarily driven by reduced block hours flown and fewer aircraft under contract compared to the fiscal year ended September 30, 2022, partially offset by an increased United Airlines block hour compensation rate for Mesa's new pilot pay scale.

#### Operating Expenses

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended September 30,** | **Year Ended September 30,** | | |
|  | **2023** | **2022** | **Change** | **Change** |
|  Operating expenses ($ in thousands): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Flight operations | $216748 | $177038 | $39710 | 22.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Maintenance | 199648 | 201930 | (2282) | (1.1)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Aircraft rent | 6200 | 36989 | (30789) | (83.2)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative | 48765 | 43966 | 4799 | 10.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 60359 | 81508 | (21149) | (25.9)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asset impairment | 54343 | 171824 | (117481) | (68.4)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Gain) on sale of assets | (7162) | (4723) | (2439) | 51.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other operating expenses | 3510 | 7471 | (3961) | (53.0)% |
|  Total operating expenses | $582411 | $716003 | $(133592) | (18.7)% |
|  Operating data: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Available seat miles — ASMs (thousands) | 4235413 | 6674748 | (2439335) | (36.5)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Block hours | 188947 | 271511 | (82564) | (30.4)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Average stage length (miles) | 552 | 509 | 43 | 8.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Departures | 103675 | 137625 | (33950) | (24.7)% |

---

*Flight Operations* 

Flight operations expense increased by $39.7 million, or 22.4%, to $216.7 million for the fiscal year ended September 30, 2023, compared to the fiscal year ended September 30, 2022. The increase was primarily driven by the implementation of the new pilot pay scale that began September 15, 2022 and increased pilot training.

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*Maintenance* 

Aircraft maintenance expense decreased $2.3 million, or 1.1%, to $199.6 million for the fiscal year ended September 30, 2023, compared to the fiscal year ended September 30, 2022. This decrease was primarily driven by a lower volume of airframe C-checks, component contracts, rotable, and expendable parts, and engine overhauls, partially offset by increases in pass-through engine overhauls and airframe C-checks.

The following table presents information regarding Mesa's aircraft maintenance costs during the fiscal years ended September 30, 2023 and 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended September 30,** | **Year Ended September 30,** | | |
|  | **2023** | **2022** | **Change** | **Change** |
|  Engine overhaul | $444 | $1924 | $(1480) | (76.9)% |
|  Pass-through engine overhaul | 31911 | 21710 | 10201 | 47.0% |
|  C-check | 6451 | 18910 | (12459) | (65.9)% |
|  Pass-through C-check | 16926 | 3173 | 13753 | 433.4% |
|  Component contracts | 20102 | 26223 | (6121) | (23.3)% |
|  Rotable and expendable parts | 20566 | 26967 | (6401) | (23.7)% |
|  Other pass-through | 16431 | 20358 | (3927) | (19.3)% |
|  Labor and other | 86817 | 82665 | 4152 | 5.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $199648 | $201930 | $(2282) | (1.1)% |

---

*Aircraft Rent* 

Aircraft rent expense decreased by $30.8 million, or 83.2%, to $6.2 million for the fiscal year ended September 30, 2023, compared to the fiscal year ended September 30, 2022. This decrease was due to the new agreement with RASPRO Trust entered into in December 2022 in which 15 of Mesa's CRJ-900 aircraft were reclassified from operating leases to finance leases.

*General and Administrative* 

General and administrative expense increased by 4.8 million, or 10.9%, to $48.8 million for the fiscal year ended September 30, 2023, compared to the fiscal year ended September 30, 2022. This increase was primarily due to increased property taxes, legal fees, and pass-through insurance.

*Depreciation and Amortization* 

Depreciation and amortization expense decreased by $21.1 million, or 25.9%, to $60.4 million for the fiscal year ended September 30, 2023, compared to the fiscal year ended September 30, 2022. The decrease is primarily due to aircraft in the fleet being classified as non-depreciable assets held for sale and the reduced carrying value of Mesa's CRJ-900 aircraft assets that were determined to be impaired during the prior fiscal year ended September 30, 2022.

*Asset Impairment* 

Asset impairment expenses were $54.3 million for the fiscal year ended September 30, 2023, related to designating 14 CRJ-900 aircraft as held for sale as well as Mesa's customer relationship intangible asset compared to $171.8 million for the fiscal year ended September 30, 2022 related to certain aircraft which were designated as held for sale as well as impairment charges on Mesa's long-lived asset group for Mesa's CRJ-900 fleet.

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*Other Operating Expenses* 

Other operating expenses decreased by $4.0 million, or 53.0%, to $3.5 million for the fiscal year ended September 30, 2023 compared to the fiscal year ended September 30, 2022. The decrease is primarily due to a decrease in fuel expense.

#### Other Expense
Other expense decreased by $5.2 million, or 10.4%, to $44.5 million for the fiscal year ended September 30, 2023, compared to the fiscal year ended September 30, 2022. The decrease is primarily a result of a $5.4 million gain on investments in equity securities during the fiscal year ended September 30, 2023 compared to a $13.7 million loss on investments in equity securities during the fiscal year ended September 30, 2022, partially offset by an increase of $12.3 million in interest expense for the fiscal year ended September 30, 2023 compared to the fiscal year ended September 30, 2022.

#### Income Taxes
In the fiscal year ended September 30, 2023, Mesa's ETR was 6.9% compared to 22.2% in Mesa's fiscal year ended September 30, 2022. Mesa's tax rate can vary depending on changes in tax laws, adoption of accounting standards, the amount of income Mesa earns in each state and the state tax rate applicable to such income, as well as any valuation allowance required on Mesa's state net operating losses.

Mesa recorded an income tax benefit of $8.7 million and $52.0 million for the fiscal years ended September 30, 2023 and 2022, respectively.

The income tax provision for the fiscal year ended September 30, 2023 resulted in an ETR of 6.9%, which differed from the U.S. federal statutory rate of 21%, primarily due to the impact of state taxes and permanent differences between financial statement and taxable income. In addition to the state ETR impact, other state impacts include changes in the valuation allowance against state net operating losses, expired state attributes, disallowed unrealized losses, and changes in state apportionment and statutory rates.

The income tax provision for the fiscal year ended September 30, 2022 resulted in an ETR of 22.2%, which differed from the U.S. federal statutory rate of 21%, primarily due to the impact of state taxes and permanent differences between financial statement and taxable income. In addition to the state ETR impact, other state impacts include changes in the valuation allowance against state net operating losses, expired state attributes, disallowed unrealized losses, and changes in state apportionment and statutory rates.

Mesa continues to maintain a valuation allowance on a portion of its state net operating losses in jurisdictions with shortened carryforward periods or in jurisdictions where its operations have significantly decreased as compared to prior years in which the net operating losses were generated.

As of September 30, 2023, Mesa had aggregate federal and state net operating loss carryforwards of approximately $562.6 million and $233.5 million, which expire in 2027-2038 and 2023-2043, respectively, with approximately $6.0 million of state net operating loss carryforwards that expired in 2023. Approximately $194.2 million of Mesa's federal NOL carryforwards are not subject to expiration.

#### Cautionary Statement Regarding Non-GAAP Measures
Mesa presents Adjusted EBITDA and Adjusted EBITDAR, which are not recognized financial measures under GAAP, in this proxy statement/prospectus, as supplemental disclosures because Mesa's senior management believes that they are well-recognized valuation metrics in the airline industry that are frequently used by companies, investors, securities analysts, and other interested parties in comparing companies in Mesa's industry.

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*Adjusted EBITDA* 

Mesa defines Adjusted EBITDA as net income or loss before interest, income taxes, and depreciation and amortization, adjusted for gains and losses on investments, lease termination costs, impairment charges, and gains or losses on extinguishment of debt, including write-off of associated financing fees.

*Adjusted EBITDAR* 

Mesa defines Adjusted EBITDAR as net income or loss before interest, income taxes, depreciation and amortization, and aircraft rent, adjusted for gains and losses on investments, lease termination costs, impairment charges, and gains or losses on extinguishment of debt, including write-off of associated financing fees.

You are encouraged to evaluate these adjustments and the reasons Mesa considers them appropriate for supplemental analysis. When reviewing Adjusted EBITDA and Adjusted EBITDAR, you should be aware that, in the future, Mesa may incur expenses that are the same as, or similar to, some of the adjustments reflected in its presentation of Adjusted EBITDA and Adjusted EBITDAR. Gains and losses on investments, which are presented as adjustments to EBITDA and EBITDAR because they are non-cash items driven by changes in stock prices and other valuation techniques, are not reflective of Mesa's core operations. Such gains and losses will occur in periods when Mesa holds investments in equity securities with readily determinable fair values. Mesa's presentation of Adjusted EBITDA and Adjusted EBITDAR should not be construed as an inference that Mesa's future results will be unaffected by unusual or non-recurring items. There can be no assurance that Mesa will not modify the presentation of Adjusted EBITDA or Adjusted EBITDAR in the future, and any such modification may be material.

*Limitations of Adjusted EBITDA and Adjusted EBITDAR* 

Adjusted EBITDA and Adjusted EBITDAR have limitations as analytical tools. Some of the limitations applicable to these measures include the following:

• Adjusted EBITDA and Adjusted EBITDAR do not reflect the impact of certain cash charges resulting from matters Mesa considers not to be indicative of its ongoing operations.

• Adjusted EBITDA and Adjusted EBITDAR do not reflect Mesa's cash expenditures, or future requirements, for capital expenditures or contractual commitments.

• Adjusted EBITDA and Adjusted EBITDAR do not reflect changes in, or cash requirements for, Mesa's working capital needs.

• Adjusted EBITDA and Adjusted EBITDAR do not reflect the interest expense, or the cash requirements necessary to service interest or principal payments, on Mesa's debts.

• although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future.

• Adjusted EBITDA and Adjusted EBITDAR do not reflect gains and losses on investments, which are non-cash gains and losses but will occur in periods when there are changes in the value of Mesa's investments in equity securities.

• Adjusted EBITDA and Adjusted EBITDAR do not reflect any cash requirements for such replacements.

• Other companies in Mesa's industry may calculate Adjusted EBITDA and Adjusted EBITDAR differently than Mesa does, limiting its usefulness as a comparative measure.

Because of these limitations, Adjusted EBITDA and Adjusted EBITDAR should not be considered in isolation or as substitutes for performance measures calculated in accordance with GAAP. In addition, Adjusted EBITDAR should not be viewed as a measure of overall performance because it excludes aircraft rent, which is a normal, recurring cash operating expense that is necessary to operate Mesa's business. For the foregoing reasons, each of Adjusted EBITDA and Adjusted EBITDAR has significant limitations which affect its use as an indicator of Mesa's profitability. Accordingly, you are cautioned not to place undue reliance on this information.

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#### Adjusted EBITDA and Adjusted EBITDAR
The following table presents a reconciliation of net loss to Adjusted EBITDA and Adjusted EBITDAR (in thousands) for the three and nine months ended June 30, 2025 and 2024:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **Nine Months Ended<br>June 30,** | **Nine Months Ended<br>June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
|  Reconciliation: |  |  |  |  |
|  Net income/(loss) | $20856 | $(19908) | $(152332) | $(66097) |
|  Income tax (benefit)/expense | (238) | (810) | (5829) | 126 |
|  Income/(loss) before taxes | 20618 | (20718) | $(158161) | $(65971) |
|  Loss/(gain) on investments |  | 776 |  | (6454) |
|  Unrealized loss on investments, net |  | 2025 | 53 | 6073 |
|  Adjustments<sup>(1)(2)(3)(4)(5)(6)(7)(8)(9)(10)(11)(12)(13)(14)(15)(16)(17)</sup> | (21176) | 8120 | 150587 | 43519 |
|  Adjusted loss before taxes | (558) | (9797) | (7521) | (22833) |
|  Interest expense | 3256 | 9032 | 15654 | 30832 |
|  Interest income | (74) | (17) | (115) | (45) |
|  Depreciation and amortization | 3377 | 9730 | 17311 | 32846 |
|  Adjusted EBITDA | $6001 | $8948 | $25329 | $40800 |
|  Aircraft rent | 98 | 1684 | 3038 | 4296 |
|  Adjusted EBITDAR | $6099 | $10632 | $28367 | $45096 |

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<sup>(1)</sup> $7.8 million and $50.9 million impairment loss related to held for sale assets during the three and nine months ended June 30, 2024, respectively. 

<sup>(2)</sup> $0.2 million and $3.5 million in third party costs associated with significant or non-recurring transactions during the three and nine months ended June 30, 2024, respectively. 

<sup>(3)</sup> $3.0 million gain on extinguishment of debt during the nine months ended June 30, 2024. 

<sup>(4)</sup> $10.5 million gain on debt forgiveness during the nine months ended June 30, 2024. 

<sup>(5)</sup> $0.2 million loss on the sale of assets during the nine months ended June 30, 2024. 

<sup>(6)</sup> $1.5 million loss on deferred financing costs related to the retirement of debts during the nine months ended June 30, 2024. 

<sup>(7)</sup> $0.9 million loss for early payment fees on the retirement of debt during the nine months ended June 30, 2024. 

<sup>(8)</sup> $1.5 million of write offs of uncollectable loans during the three and nine months ended June 30, 2025. 

<sup>(9)</sup> $25.1 million gain on the write off of warrant liabilities during the three and nine months ended June 30, 2025. 

<sup>(10)</sup> $0.1 million and $2.1 million loss on deferred financing costs related to the retirement of debts during the three and nine months ended June 30, 2025, respectively. 

<sup>(11)</sup> $2.5 million and $6.8 million in third party costs associated with significant or non-recurring transactions during the three and nine months ended June 30, 2025, respectively. 

<sup>(12)</sup> $0.1 million net impairment gain and $51.1 net million impairment loss related to held for sale assets during the three and nine months ended June 30, 2025, respectively. 

<sup>(13)</sup> $0.7 million in miscellaneous costs associated with the sale of assets during the nine months ended June 30, 2025. 

<sup>(14)</sup> $54.4 million net loss on the sale of assets during the nine months ended June 30, 2025. 

<sup>(15)</sup> $2.9 million loss on the write off of interest related to the sale of aircraft during the nine months ended June 30, 2025. 

<sup>(16)</sup> $60.7 million impairment loss related to the write down of net book value of certain aircraft during the nine months ended June 30, 2025. 

<sup>(17)</sup> $4.5 million gain on debt forgiveness during the nine months ended June 30, 2025. 

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The following table presents a reconciliation of net (loss) income to Adjusted EBITDA and Adjusted EBITDAR for the years ended September 30, 2024, 2023 and 2022:

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| | | | |
|:---|:---|:---|:---|
|  | **Year Ended September 30,** | **Year Ended September 30,** | **Year Ended September 30,** |
|  | **2024** | **2023** | **2022** |
|  Reconciliation: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net loss | $(91015) | $(120116) | $(182678) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax (benefit) | 519 | (8745) | (51990) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss before taxes | (90496) | (128861) | (234668) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on investments, net | (8032) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized loss/(gain) on investments, net | 6145 | (5408) | 13715 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments**<sup>(1)(2)(3)(4)(5)(6)(7)(8)(9)(10)(11)(12)</sup>** | 69469 | 48357 | 170918 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjusted loss before taxes | (22914) | (85912) | (50035) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense | 38455 | 49921 | 35289 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income | (68) | (146) | (139) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 40041 | 60359 | 81508 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjusted EBITDA | $55514 | $24222 | $66623 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Aircraft rent | 7797 | 6200 | 36989 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjusted EBITDAR | $63311 | $30422 | $103612 |

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<sup>(1)</sup> $0.2 million of lease termination expense during the fiscal year ended September 30, 2022. 

<sup>(2)</sup> $3.2 million loss from the write off of lease incentive assets during the fiscal year ended September 30, 2022. 

<sup>(3)</sup> $109.7 million impairment loss related to Mesa's long-lived asset group for Mesa's CRJ-900 fleet during the fiscal year ended September 30, 2022. 

<sup>(4)</sup> $1.6 million, $1.2 million, and $0.4 million loss on deferred financing costs related to the retirement of debts during the during the fiscal years ended September 30, 2024, 2023, and 2022, respectively. 

<sup>(5)</sup> $0.7 million loss, $7.2 million gain, and $4.7 million gain on the sale of aircraft, engines, and other assets during the fiscal years ended September 30, 2024, 2023, and 2022, respectively. 

<sup>(6)</sup> $77.4 million, $46.9 million, and $58.6 million impairment loss on held for sale accounting treatment during the fiscal years ended September 30, 2024, 2023, and 2022, respectively. 

<sup>(7)</sup> $3.7 million gain, $3.7 million loss, and $3.5 million loss on impairment fair value adjustments during the fiscal years ended September 30, 2024, 2023, and 2022, respectively. 

<sup>(8)</sup> $3.7 million impairment loss on intangible assets during the fiscal year ended September 30, 2023. 

<sup>(9)</sup> $6.0 million in third party costs associated with non-recurring transactions during the fiscal year ended September 30, 2024. 

<sup>(10)</sup> $10.5 million gain on debt forgiveness during the fiscal year ended September 30, 2024. 

<sup>(11)</sup> $3.0 million gain on extinguishment of debt during the fiscal year ended September 30, 2024. 

<sup>(12)</sup> $0.9 million loss for early payment fees on the retirement of debt during the fiscal year ended September 30, 2024. 

#### Liquidity and Capital Resources

#### Going Concern
During the three and nine months ended June 30, 2025, and the fiscal year ended September 30, 2024, costs associated with the transition of Mesa's operations with American Airlines to United Airlines, increased costs associated with pilot wages, together with increasing interest rates, adversely impacted Mesa's financial results, cash flows, financial position, and other key financial ratios. Additionally, United Airlines requested that Mesa to accelerate the removal of its CRJ-900 aircraft and transition the pilots to Mesa's E175 fleet. These events will lead to increased costs and impact Mesa's block hour capabilities while these pilots are in training.

As a result, during the nine months ended June 30, 2025, these challenges resulted in a negative impact on Mesa's financial results, highlighted by a net loss of $152.3 million, primarily due to a $54.4 million loss recorded related to the sale of 18 E175 aircraft and $111.8 million in impairment related to held for sale assets and the write down of net book value of 10 E175 aircraft. These conditions and events raised concerns about Mesa's ability to continue to fund its operations and meet its debt obligations over the next twelve months.

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To address such concerns, management developed and implemented several material changes to Mesa's business, designed to ensure that Mesa could continue to fund its operations and meet its debt obligations over the next twelve months. The following measures were implemented during the three months ended June 30, 2025, and through the date of issuance of the financial statements:

• On April 4, 2025, Mesa entered into the Three-Party Agreement as well as a Merger Agreement, which provides for, among other things, the following:

• Termination of the United CPA which will be replaced with a new long-term CPA.

• Sale or disposition by Mesa of all remaining Eligible Assets.

• Extinguishment by Mesa of all remaining debt with cash and sale of assets. Any remaining debt will either be assumed by the surviving corporation or forgiven by United Airlines.

• A three percent (3%) increase in CPA block hour rates, retroactive to January 1, 2025.

• Transfer of all of Mesa's rights and obligations under its agreements with Archer (as discussed in Note 15 – "Subsequent Events" in the notes to Mesa's unaudited condensed consolidated financial statements included elsewhere in this proxy statement/prospectus).

• On April 4, 2025, Mesa entered into the Sixth Amendment to the Third Amended and Restated Capacity Purchase Agreement with United Airlines which provides for the following:

• The extension of the CPA rate increases agreed upon in the First Amendment to the Third Amended and Restated United CPA and the Second Amendment to the Third Amended and Restated United CPA, dated January 11, 2024, and January 19, 2024, respectively (the "January 2024 United CPA Amendments"), retroactive to January 1, 2025, through March 31, 2026.

• The extension of incentives for achieving certain performance metrics, retroactive to July 1, 2024, through March 31, 2026.

• On April 4, 2025, Mesa entered into the Sixth Amendment to Second Amended and Restated Credit and Guaranty Agreement providing for the waiver of an existing financial covenant default with respect to the period ended March 31, 2025, and a projected financial covenant default with respect to the periods ending June 30, 2025, September 30, 2025, December 31, 2025, and March 31, 2026, each relating to a minimum liquidity requirement under the United Revolving Credit Facility.

• On April 3, 2025, Mesa entered into a purchase agreement with a third party which provides for the sale of 23 GE model CF34-8C engines to the third party for expected gross proceeds of $16.3 million, which will be used to pay down the UST Loan.

• Based on the most recent appraisal value of Mesa's spare parts, Mesa has $10.5 million of borrowing capacity under the United Revolving Credit Facility.

• In addition to already executed agreements to sell aircraft, Mesa is actively seeking arrangements to sell other surplus assets primarily related to the CRJ fleet including aircraft, engines, and spare parts to reduce debt and optimize operations.

• Mesa has delayed and/or deferred major spending on aircraft and engine maintenance to match the current and projected level of flight activity.

Mesa believes that the plans and initiatives outlined above have effectively alleviated the financial concerns and will allow the company to meet its cash obligations for the next twelve months following the issuance of its financial statements. The forecast of undiscounted cash flows prepared to determine if Mesa has the ability to meet its cash obligations over the next twelve months was prepared with significant judgment, and estimates of future cash flows based on projections of CPA block hours, maintenance events, labor costs, and other relevant factors. Assumptions used in the forecast may change or not occur as expected.

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As of June 30, 2025, Mesa has $84.7 million of principal maturity payments on long-term debt due within the next twelve months. Mesa plans to meet these obligations with its cash on hand, ongoing cashflows from its operations, and the liquidity created from the additional measures identified above. If Mesa's plans are not realized, it intends to explore additional opportunities to create liquidity by refinancing and deferring repayment of its principal maturity payments that are due within the next twelve months. Mesa continues to monitor covenant compliance with its lenders, as any noncompliance could have a material impact on its financial position, cash flows, and results of operations.

#### Sources and Uses of Cash
Mesa requires cash to fund its operating expenses and working capital requirements, including outlays for capital expenditures, aircraft pre-delivery payments, maintenance, aircraft rent, and debt service obligations, including principal and interest payments. Mesa's cash needs vary from period to period, primarily based on the timing and costs of significant maintenance events. Mesa's principal sources of liquidity are cash on hand, cash generated from operations, and funds from external borrowings.

Mesa believes that the key factors that could affect its internal and external sources of cash include:

• Factors that affect Mesa's results of operations and cash flows, including the impact on Mesa's business and operations as a result of changes in demand for its services, competitive pricing pressures, and Mesa's ability to achieve further reductions in operating expenses; and

• Factors that affect Mesa's access to bank financing and the debt and equity capital markets that could impair the company's ability to obtain needed financing on acceptable terms or to respond to business opportunities and developments as they arise, including interest rate fluctuations, macroeconomic conditions, sudden reductions in the general availability of lending from banks or the related increase in cost to obtain bank financing, and Mesa's ability to maintain compliance with covenants under its debt agreements in effect from time to time.

Mesa's ability to service its long-term debt obligations, including its equipment notes, to remain in compliance with the various covenants contained in its debt agreements, and to fund its working capital requirements, capital expenditures, and business development efforts will depend on its ability to generate cash from operating activities, which is subject to, among other things, Mesa's future operating performance, as well as other factors, some of which may be beyond Mesa's control.

If Mesa fails to generate sufficient cash from operations, it may need to raise additional equity or borrow additional funds to achieve its longer-term objectives. There can be no assurance that such equity or borrowings will be available or, if available, will be at rates or prices acceptable to Mesa.

During the ordinary course of business, Mesa evaluates its cash requirements and, if necessary, adjusts operating and capital expenditures to reflect current market conditions and projected demand. Mesa's capital expenditures are primarily directed toward its aircraft fleet and flight equipment, including spare engines. Mesa's capital expenditures, net of purchases of rotable spare parts, and aircraft and spare engine financing for the nine months ended June 30, 2025, were approximately 1.9% of Mesa's revenue during the same period. Mesa expects to continue to incur capital expenditures to support its business activities. Future capital expenditures may be impacted by events and transactions that are not currently forecasted.

As of June 30, 2025, Mesa's principal sources of cash are cash and cash equivalents of $42.5 million and $60.3 million in assets held for sale as of June 30, 2025. As of June 30, 2025, Mesa had $113.7 million in secured indebtedness incurred primarily in connection with its financing of aircraft and related equipment. As of June 30, 2025, Mesa had $84.7 million of current debt, excluding finance leases, and $28.2 million of long-term debt excluding finance leases.

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#### Debt and Other Obligations
As of June 30, 2025, Mesa had $140.0 million of long-term debt (including principal and projected interest obligations). This amount consists of $62.8 million in notes payable principal payments related to owned aircraft, $18.0 million in notes payable principal payments related to spare engines and engine kits, $33.0 million in principal outstanding under Mesa's working capital line of credit, and an aggregate of $26.2 million in projected interest costs through Mesa's fiscal 2029.

As of June 30, 2025, all of Mesa's debt was variable rate debt. Actual interest commitments will change based on the actual variable interest.

#### Operating Leases
Mesa has significant long-term operating lease obligations primarily relating to its aircraft fleet, as well as leases of office and hangar space. As of June 30, 2025, Mesa had 17 engines on operating leases (excluding aircraft leased at nominal amounts from United Airlines). The engines have remaining lease terms of up to 0.9 years. Future minimum lease payments due under all long-term operating leases were approximately $10.4 million as of June 30, 2025.

#### Finance Leases
On June 1, 2022, Mesa Airlines, as lessee, entered into two agreements for the lease of two CRJ-700 aircraft (the "Aircraft Leases"). Basic rent on this lease is paid monthly and at the end of the lease term. Mesa has the option to purchase both aircraft for a total of $1.5 million at the end of the lease term. On May 30, 2024, Mesa amended the finance lease agreements providing for the revision of the lease term from June 22, 2031 to May 29, 2027. Mesa paid initial payments totaling approximately $1.8 million. Subsequent to September 30, 2024, Mesa entered into an agreement with United Airlines to buy the aircraft out of their lease with the third party and to purchase them for $11.0 million, $4.5 million of which will pay down the outstanding obligations under the associated finance leases.

Mesa had previously leased 15 aircraft from RASPRO Trust as an operating lease. In December 2022, Mesa entered into an agreement with RASPRO Trust, reducing the buyout pricing on all 15 aircraft at lease termination by a total of $25 million. Under the terms of the new agreement, Mesa reclassified these leases as finance leases. During the fiscal year ended September 30, 2024, Mesa purchased all 15 aircraft and completely paid off the RASPRO obligation.

As of June 30, 2025, Mesa did not have any finance leases.

#### Working Capital Line of Credit
In August 2016, Mesa, as guarantor, Mesa's wholly owned subsidiaries, Mesa Airlines and MAG-AIM, as borrowers, CIT, as administrative agent, and the lenders party thereto (the "CIT Lenders"), entered into the CIT Revolving Credit Facility, pursuant to which the CIT Lenders committed to lend to Mesa Airlines and MAG-AIM revolving loans in the aggregate principal amount of up to $35.0 million. The borrowers' and guarantor's obligations under the CIT Revolving Credit Facility are secured primarily by a first priority lien on certain engines, spare parts, and related collateral, including engine warranties and proceeds of the foregoing. The CIT Revolving Credit Facility contains affirmative, negative, and financial covenants that are typical in the industry for similar financings, including, but not limited to, covenants that, subject to exceptions described in the CIT Revolving Credit Facility, restrict Mesa's ability and the ability of Mesa Airlines and MAG-AIM and their subsidiaries to: (i) enter into, create, incur, assume, or suffer to exist any liens; (ii) merge, dissolve, liquidate, consolidate or sell, or transfer substantially all of its assets; (iii) sell assets; (iv) enter into transactions with affiliates; (v) amend certain material agreements and organizational documents; (vi) make consolidated unfinanced capital expenditures; or (vii) maintain a consolidated interest and rental coverage ratio above the amount specified in the CIT Revolving Credit Facility. The CIT Revolving Credit Facility also includes

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customary events of defaults, including but not limited to: (i) payment defaults; (ii) breach of covenants; (iii) breach of representations and warranties; (iv) cross-defaults; (v) certain bankruptcy-related defaults; (vi) change of control; and (vii) revocation of instructions with respect to certain controlled accounts.

On September 25, 2019, Mesa extended the term on its $35.0 million working capital draw loan by three years, which now terminates in December 2022. Interest is assessed on drawn amounts at one-month SOFR plus 3.75%. In June 2020, $23.0 million was drawn to cover operational needs. As of September 30, 2022, $15.6 million remained outstanding under the working capital draw loan.

On December 27, 2022, in connection with entering into the Amended and Restated United CPA, (i) United Airlines agreed to purchase and assume all of First Citizens' rights and obligations as a lender under the Existing Facility pursuant to an Assignment and Assumption Agreement, (ii) United Airlines and CIT Bank agreed to amend the Existing Facility pursuant to an Amendment No. 1, dated December 27, 2022 ("Amendment No. 1"), and an Amendment No. 2, dated January 27, 2023 ("Amendment No. 2"; the Existing Facility as amended by Amendment No. 1 and Amendment No. 2, the "Amended Facility"), and (iii) Wilmington Trust, National Association agreed to assume all of CIT Bank's rights and obligations as Administrative Agent pursuant to an Agency Resignation, Appointment, and Assumption Agreement, dated as of January 27, 2023. Amendment No. 1, among other things, extends the Maturity Date from the earlier to occur of November 30, 2028, or the date of the termination of the Amended and Restated United CPA; provides for a revolving loan of $10.0 million plus fees and expenses, which was due January 31, 2024, subject to certain mandatory prepayment requirements; provides for Revolving Commitments equal to $30.7 million plus the original principal amount of the $10 million revolving loan; amortization of the obligations outstanding under the existing CIT Agreement commencing quarterly until March 31, 2025; and a covenant capping Restricted Payments (as defined in the Amended Facility) at $5.0 million per fiscal year, a consolidated interest and rental coverage ratio of 1.00 to 1.00 covenant, and a Liquidity (as defined in the Amended Facility) requirement of not less than $15.0 million at the close of any business day. Interest assessed under the Amended Facility is 3.50% for Base Rate Loans and 4.50% for Term SOFR Loans (as such terms are defined in the Amended Facility). Amendment No. 2, among other things, amends the definition of Controlled Account (as defined in the Amended Facility). Amounts borrowed under this Amended Facility are secured by a collateral pool consisting of a combination of expendable parts, rotable parts and engines and a pledge of Mesa's stock in certain aviation companies. United Airlines funded $25.5 million as of the closing date of Amendment No. 1, to be used for general corporate purposes.

On September 6, 2023, Mesa amended the existing United Credit Facility to (i) permit Mesa to re-draw approximately $7.9 million of the Effective Date Bridge Loan (as defined in the United Credit Facility) previously repaid; (ii) increased the amount of Revolving Commitments (as defined in the United Credit Facility) from $30.7 million to $50.7 million, in each case, plus the original principal amount of the Effective Date Bridge Loan and subject to the Borrowing Base (as defined in the United Credit Facility); and (iii) amended the calculation of the Borrowing Base. Amounts borrowed under this facility bear interest at 3.50% for Base Rate Loans and 4.50% per annum for Term SOFR Loans. Amounts borrowed under the Amended Credit Facility are secured by a collateral pool consisting of a combination of expendable parts, rotable parts and engines, a pledge of certain of Mesa's bank accounts, and a pledge of Mesa's stock in certain aviation companies.

On January 11, 2024 and January 19, 2024, Mesa entered into Amendment No. 4 to its Second Amended and Restated Credit and Guaranty Agreement, Amendment No. 1 to Stock Pledge Agreement and Limited Waiver of Conditions to Credit Extension ("Amendment No. 4"), and Waiver and Amendment No. 5 to its Second Amended and Restated Credit and Guaranty Agreement (collectively, the "January 2024 Credit Agreement Amendments"), respectively. The January 2024 Credit Agreement Amendments provide for the following:

• The repayment in full of Mesa's $10.5 million Effective Date Bridge Loan obligations, and the prepayment (and corresponding reduction) of approximately $2.1 million in Revolving Loans (as defined therein), with the proceeds from the sale, assignment, or transfer of Mesa's vested investment in Heart Aerospace Incorporated.

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• As a result of the repayment of the Effective Date Bridge Loan and pay down of the Revolving Loans, the shares of capital stock of Archer Aviation, Inc. held by Mesa were released as collateral for the United Credit Facility.

• The waiver of certain financial covenant defaults with respect to the fiscal quarters ended June 30, 2023, September 30, 2023, and December 31, 2023 and the waiver of projected financial covenant defaults with respect to the fiscal quarter ending March 31, 2024.

• An increase in the Applicable Margin (as defined in the United Credit Facility) during a specified period of time for borrowings under the Credit Agreement.

• Loan prepayment requirements in connection with the sale of four specified aircraft engines and the addition of such engines as collateral for the United Credit Facility for a specified period of time.

#### Electric Aircraft Forward Purchase Commitments
In February 2021, Mesa entered into a forward purchase contract with Archer Aviation, Inc. ("Archer") for a number of electrically-powered vertical takeoff and landing aircraft ("eVTOL aircraft"). The aggregate base commitment for the eVTOL aircraft is $200.0 million, with an option to purchase additional aircraft. Mesa's obligation to purchase the eVTOL aircraft is subject to Mesa and Archer first agreeing in the future to a number of terms and conditions, which may or may not be met.

In July 2021, Mesa entered into a forward purchase contract with Heart Aerospace Incorporated ("Heart") for a number of fully electric aircraft. The maximum aggregate base commitment for the aircraft is $1,200.0 million, with an option to purchase additional aircraft. Mesa's obligation to purchase the aircraft is subject to Mesa and Heart first agreeing in the future to a number of terms and conditions, which may or may not be met.

#### Maintenance Commitments
In August 2005, Mesa entered into a ten-year agreement with AAR for the maintenance and repair of certain of Mesa's CRJ-200, CRJ-700, and CRJ-900 aircraft. The agreement has since been amended to include a term extending through 2025, and to provide certain E175 aircraft rotable spare parts with a term through December 2027. Under the agreement, Mesa pays AAR a monthly access fee per aircraft for certain consigned inventory as well as a fixed "cost per flight hour" fee on a monthly basis for repairs on certain repairable parts during the term of the agreement, which fees are subject to annual adjustment based on increases in the cost of labor and component parts.

In July 2013, Mesa entered into an engine maintenance contract with GE to perform heavy maintenance on certain CRJ-700, CRJ-900, and E175 engines based on a fixed pricing schedule. The pricing may escalate annually in accordance with GE's spare parts catalog for engines. The engine maintenance contract extends through 2024.

Mesa entered into an engine maintenance contract with StandardAero, which became effective on June 1, 2015, to perform heavy maintenance on certain CRJ-700 and CRJ-900 engines based on a fixed pricing schedule. The pricing may escalate annually in accordance with the GE's spare parts catalog for engines.

Mesa's employees perform routine airframe and engine maintenance along with periodic inspections of equipment at their respective maintenance facilities. Mesa also uses third-party vendors, such as AAR, Ascent, Embraer, and GE, for certain heavy airframe and engine maintenance work, along with parts procurement and component overhaul services for Mesa's aircraft fleet. As of June 30, 2025, $36.9 million of parts inventory was consigned to Mesa by AAR under long-term contracts that is not reflected on Mesa's balance sheet.

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Mesa accounts for heavy maintenance and major overhaul costs on its owned E175 fleet under the deferral method whereby the cost of heavy maintenance and major overhaul is deferred and amortized until the earlier of the end of the useful life of the related asset or the next scheduled heavy maintenance event. For all other fleets, Mesa uses the direct expense method of accounting for its maintenance of regional jet engine overhauls, airframe, landing gear, and normal recurring maintenance wherein Mesa recognizes the expense when the maintenance work is completed, or over the repair period, if materially different, except for certain maintenance contracts where labor and materials price risks have been transferred to the service provider and require payment on a utilization basis, such as flight hours. Costs incurred for maintenance and repair for utilization maintenance contracts where labor and materials price risks have been transferred to the service provider are charged to maintenance expense based on contractual payment terms. Mesa's maintenance policy is determined by fleet when major maintenance is incurred. While Mesa keeps a record of expected maintenance events, the actual timing and costs of major engine maintenance expense are subject to variables such as estimated usage, government regulations, and the level of unscheduled maintenance events and their actual costs. Accordingly, Mesa cannot reliably quantify the costs or timing of future maintenance-related expenses for any significant period of time.

#### Restricted Cash
As of both June 30, 2025 and September 30, 2024, Mesa had $3.0 million in restricted cash, compared to $3.0 million and $3.1 million in restricted cash as of June 30, 2024 and September 30, 2023, respectively. Mesa has an agreement with a financial institution for a letter of credit facility and to issue letters of credit for particular airport authorities, worker's compensation insurance, property and casualty insurance, and other business needs as required in certain lease agreements. Pursuant to the term of this agreement, $3.0 million of outstanding letters of credit are required to be collateralized by amounts on deposit.

#### Cash Flows

#### Nine Months Ended June 30, 2025 Compared to Nine Months Ended June 30, 2024
The following table presents information regarding Mesa's cash flows for each of the nine months ended June 30, 2025 and June 30, 2024 (in thousands):

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| | | |
|:---|:---|:---|
|  | **Nine Months Ended<br>June 30,** | **Nine Months Ended<br>June 30,** |
|  | **2025** | **2024** |
|  Net cash (used in) provided by operating activities | $(43346) | $19596 |
|  Net cash provided by investing activities | 193662 | 112918 |
|  Net cash used in financing activities | (123426) | (149301) |
|  **Net increase/(decrease) in cash, cash equivalents and restricted cash** | 26890 | (16787) |
|  Cash, cash equivalents and restricted cash at beginning of period | 18630 | 36072 |
|  Cash, cash equivalents and restricted cash at end of period | $45520 | $19285 |

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#### Net Cash Used in Operating Activities
Mesa's primary source of cash from operating activities is cash collections from United Airlines pursuant to the United CPA. United Airlines' primary uses of cash from operating activities are for maintenance costs, personnel costs, operating lease payments, and interest payments.

During the nine months ended June 30, 2025, Mesa had cash flow used in operating activities of $43.3 million. Mesa had net loss of $152.3 million adjusted for the following significant non-cash items:

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depreciation and amortization of $17.3 million, deferred income taxes of $(7.6) million, write off of warrant liability of $(25.1) million, amortization of deferred credits of $(4.1) million, amortization of debt discount and financing costs and accretion of interest of $4.2 million, asset impairment of $111.8 million, loss on sale of assets of $54.4 million, gain on debt forgiveness of $(4.5) million, and $6.9 million in miscellaneous operating cash flow items. Mesa had a net change of $(44.2) million within other net operating assets and liabilities largely driven by increases in accounts receivable and decreases in accounts payable and accrued expenses.

During the nine months ended June 30, 2024, Mesa had cash flow provided by operating activities of $19.6 million. Mesa had net loss of $66.1 million adjusted for the following significant non-cash items: depreciation and amortization of $32.8 million, stock-based compensation of $1.0 million, deferred income taxes of $(0.4) million, gains on investments in equity securities of $(6.5) million, net unrealized losses on investments in equity securities of $6.1 million, amortization of deferred credits of $(0.8) million, amortization of debt discount and financing costs and accretion of interest of $6.2 million, asset impairment of $50.9 million, loss on sale of assets of $0.2 million, gain on debt forgiveness of $(10.5) million, gain on extinguishment of debt of $(3.0) million, and $3.2 million in miscellaneous operating cash flow items. Mesa had a net change of $6.3 million within other net operating assets and liabilities largely driven by decreases in accounts receivable and prepaid expenses and increases in accounts payable and accrued expenses, partially offset by decreases in deferred revenue.

#### Net Cash Provided by Investing Activities
Mesa's investing activities generally consist of capital expenditures for aircraft and related flight equipment, deposits paid or returned for equipment and other purchases, and strategic investments.

During the nine months ended June 30, 2025, net cash flow provided by investing activities totaled $193.7 million. Proceeds from the sale of aircraft and engines totaled $199.0 million and Mesa invested $(5.4) million in capital expenditures, primarily consisting of rotable parts and tools. Mesa received $0.1 million in refunds of equipment and other deposits.

During the nine months ended June 30, 2024, net cash flow provided by investing activities totaled $112.9 million. Proceeds from the sale of aircraft and engines totaled $127.1 million, proceeds from the sale of investments in equity securities totaled $2.7 million, Mesa invested $(16.9) million in capital expenditures, primarily consisting of heavy maintenance rotable parts, paid $(0.4) million in investment transaction costs, and received $0.3 million in refunds of equipment and other deposits.

#### Net Cash Used in Financing Activities
Mesa's financing activities generally consist of debt borrowings, principal repayments of debt, payment of debt financing costs, payment of tax withholding for RSUs, and proceeds received from issuing common stock under Mesa's ESPP.

During the nine months ended June 30, 2025, net cash flow used in financing activities was $123.4 million, all of which was payments on long-term debt and finance leases.

During the nine months ended June 30, 2024, net cash flow used in financing activities was $149.3 million. Mesa received $86.9 million of proceeds from long-term debt, made $(235.2) million of principal repayments on long-term debt, paid $(0.9) million for debt prepayment costs, and paid $0.1 million for tax withholding of RSUs.

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#### Comparison of Fiscal Years Ended September 30, 2024, 2023, and 2022
The following table presents information regarding Mesa's cash flows for each of the fiscal years ended September 30, 2024, 2023, and 2022:

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| | | | |
|:---|:---|:---|:---|
|  | **Year Ended September 30,** | **Year Ended September 30,** | **Year Ended September 30,** |
|  | **2024** | **2023** | **2022** |
|  Net cash provided by (used in) operating activities | $34244 | $(24091) | $13362 |
|  Net cash provided by investing activities | 148788 | 142285 | 1365 |
|  Net cash used in financing activities | (200474) | (143147) | (77569) |
|  **Net decrease in cash, cash equivalents, and restricted cash** | (17442) | (24953) | (62842) |
|  Cash, cash equivalents, and restricted cash at beginning of period | 36072 | 61025 | 123867 |
|  Cash, cash equivalents, and restricted cash at end of period | $18630 | $36072 | $61025 |

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#### Net Cash Flow Provided by Operating Activities
Mesa's primary source of cash from operating activities is cash collections from United pursuant to the United CPA. Mesa's primary uses of cash used in operating activities are for maintenance costs, personnel costs, operating lease payments, and interest payments.

During the fiscal year ended September 30, 2024, Mesa had cash flow provided by operating activities of $34.2 million. Mesa had net loss of $91.0 million adjusted for the following significant non-cash items: asset impairment of $73.7 million, depreciation of $40.0 million, stock-based compensation expense of $1.3 million, net unrealized losses on investments in equity securities of $6.1 million, net gains on investments of $(8.0) million, amortization of deferred credits of $(1.1) million, amortization of debt discount and issuance costs and accretion of interest of $8.3 million, gain on extinguishment of debt of $(3.0) million, gain on debt forgiveness of $(10.5) million, and $4.7 million in net other operating cash flow adjustments. Mesa had net change of $13.5 million within other net operating assets and liabilities largely driven by accrued liabilities, accounts payable, and prepaid expenses, partially offset by deferred revenue during the fiscal year ended September 30, 2024.

During the fiscal year ended September 30, 2023, Mesa had cash flow used in operating activities of $24.1 million. Mesa had net loss of $120.1 million adjusted for the following significant non-cash items: asset impairment of $54.3 million, depreciation and amortization of $60.4 million, stock-based compensation expense of $2.3 million, deferred income taxes of $(9.3) million, net unrealized gains on investments in equity securities of $(5.4) million, amortization of deferred credits of $1.5 million, amortization of debt discount and issuance costs and accretion of interest of $6.3 million, loss on extinguishment of debt of $1.5 million, net gain on disposal of assets of $(7.2) million, and $2.2 million in net other operating cash flow adjustments. Mesa had net change of $(10.7) million within other net operating assets and liabilities largely driven by accrued liabilities, accounts payable, deferred revenue, receivables, and operating leases during the fiscal year ended September 30, 2023.

During the fiscal year ended September 30, 2022, Mesa had cash flow provided by operating activities of $13.4 million. Mesa had net loss of $182.7 million adjusted for the following significant non-cash items: asset impairment of $171.8 million, depreciation, and amortization of $81.5 million, stock-based compensation expense of $2.8 million, deferred income taxes of $(52.0) million, losses on investments in equity securities of $13.7 million, amortization of deferred credits of $(0.9) million, amortization of debt discount and issuance costs and accretion of interest of $9.7 million, loss on extinguishment of debt of $0.4 million, gain on disposal of assets

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of $(4.7) million, provision for obsolete expendable parts and supplies of $0.6 million, and loss on lease termination of $0.2 million. Mesa had net change of $(26.8) million within other net operating assets and liabilities largely driven by accrued liabilities, accounts payable, deferred revenue, receivables, and operating leases during the fiscal year ended September 30, 2022.

#### Net Cash Flows Provided by (Used in) Investing Activities
Mesa's investing activities generally consist of the sale of assets, capital expenditures for aircraft, and related flight equipment, deposits paid or returned for equipment and other purchases, and strategic investments.

During the fiscal year ended September 30, 2024, Mesa's net cash flow provided by investing activities was $148.8 million. Mesa received a total of $158.3 million from the sale of aircraft and engines, net of transaction costs, $9.2 million from the sale of investments in equity securities, net of transaction costs, and $1.5 million in customer deposits. Additionally, Mesa invested $1.2 million in aircraft, $6.1 million in depreciable inventory, $3.7 million in costs associated with transitioning CRJ-900 aircraft to United Airlines operations, $3.4 million in capitalized maintenance, and $5.8 million in tools, vehicles, equipment, and other miscellaneous projects.

During the fiscal year ended September 30, 2023, Mesa net cash flow provided by investing activities was $142.3 million. Mesa invested $15.8 million in spare engines, $2.2 million in aircraft, $13.4 million in inventory, $2.6 million in costs associated with transitioning CRJ-900 aircraft to United Airlines operations, and $2.6 million in tools, vehicles, equipment, and other miscellaneous projects. Additionally, Mesa received a total of $178.6 million from the sale of aircraft and engines and received a $0.3 million in refunds on equipment and other deposits.

During the fiscal year ended September 30, 2022, Mesa net cash flow provided by investing activities was $1.4 million. Mesa invested $16.7 million in spare engines, $2.2 million in aircraft, $18.4 million in inventory, $4.4 million in tools, vehicles, equipment, and other miscellaneous projects, and $7.6 million in net payments on equipment and other deposits. Additionally, Mesa invested a total of $0.2 million in equity securities and received a total of $50.0 million from sale of 10 CRJ-700 aircraft.

#### Net Cash Flows Used in Financing Activities
Mesa's financing activities generally consist of debt borrowings, principal repayments of debt, payment of debt financing costs, stock repurchases, and proceeds received from issuing common stock under Mesa's ESPP.

During the fiscal year ended September 30, 2024, Mesa's net cash flow used in financing activities was $200.5 million. Mesa received $86.9 million of proceeds from long-term debt. Mesa made $286.3 million of principal repayments on long-term debt during the period. Mesa incurred $0.9 million in prepayment fees and made $0.1 million of payments of tax withholding for restricted stock units.

During the fiscal year ended September 30, 2023, Mesa's net cash flow used in financing activities was $143.1 million. Mesa received $60.9 million of proceeds from long-term debt. Mesa made $203.0 million of principal repayments on long-term debt during the period. Mesa incurred $0.9 million of costs related to debt financing and $0.4 million of payments of tax withholding for restricted stock units. Mesa received $0.3 million in proceeds from the issuance of common stock under its ESPP.

During the fiscal year ended September 30, 2022, Mesa's net cash flow used in financing activities was $77.6 million. Mesa received $39.8 million of proceeds from borrowings under the Treasury Loan. Mesa made $114.9 million of principal repayments on long-term debt during the period. Mesa incurred $2.4 million of costs related to debt financing and $0.5 million of payments of tax withholding for restricted stock units. Mesa received $0.4 million in proceeds from the issuance of common stock under its ESPP.

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#### Critical Accounting Estimates
Mesa prepares its consolidated financial statements and condensed consolidated financial statements in accordance with GAAP. In doing so, Mesa must make estimates and assumptions that affect its reported amounts of assets, liabilities, revenue, and expenses, as well as related disclosure of contingent assets and liabilities. To the extent that there are material differences between these estimates and actual results, Mesa's financial condition or results of operations would be affected. Mesa bases its estimates on past experience and other assumptions that Mesa believes are reasonable under the circumstances, and Mesa evaluates these estimates on an ongoing basis. Mesa refers to accounting estimates of this type as critical accounting estimates, which are discussed below.

The discussion below is not intended to be a comprehensive list of Mesa's accounting policies. Mesa's significant accounting policies are more fully described in Note 2 — "Summary of Significant Accounting Policies" to Mesa's unaudited condensed consolidated financial statements included elsewhere in this proxy statement/prospectus.

#### Leases
Effective October 1, 2019, Mesa adopted ASU No. 2016-02, Leases (Topic 842) ("ASU 2016-02" or "ASC 842") which provides guidance requiring lessees to recognize a right-of-use asset and a lease liability on the balance sheet for substantially all leases, with the exception of short-term leases with terms of less than 12 months. From a lessee perspective, Mesa's leases are classified as either finance or operating, with classification affecting the pattern of expense recognition in the statement of income. Mesa determines if an arrangement is a lease at inception. Mesa's operating lease activities are recorded in operating lease right-of-use ("ROU") assets, current maturities of operating leases, and noncurrent operating lease liabilities in the consolidated balance sheets. Finance leases are included in property and equipment, net, current portion of long-term debt and finance leases, and long-term debt and finance leases, excluding current portion.

ROU assets represent Mesa's right to use an underlying asset for the lease term and lease liabilities represent Mesa's obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. Variable lease payments are not included in the calculation of the right-of-use assets and lease liability due to uncertainty of the payment amount and are recorded as lease expense in the period incurred. As most of Mesa's leases do not provide an implicit rate, Mesa uses its estimated incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Mesa uses the implicit rate when readily determinable. Mesa's lease terms may include options to extend or terminate the lease when it is reasonably certain that Mesa will exercise that option. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term.

As a lessee, Mesa elected a short-term lease exception policy on all classes of underlying assets, permitting Mesa to not apply the recognition requirements of this standard to short-term leases (i.e., leases with terms of 12 months or less).

From a lessor perspective, Mesa's CPA identifies the "right of use" of a specific type and number of aircraft over a stated period-of-time. A portion of the compensation in the CPA is designed to reimburse Mesa for certain aircraft ownership costs of these aircraft. Mesa accounts for the non-lease component of its CPA under ASC 606 and accounts for the lease component under ASC 842. Mesa allocates the consideration in the contract between the lease and non-lease components based on their stated contract prices, which is based on a cost-basis approach representing Mesa's estimate of the stand-alone selling prices.

#### Revenue Recognition
Mesa recognizes revenue when the service is provided under the United CPA. Under the United CPA, United Airlines generally pays a fixed monthly minimum amount per aircraft, plus certain additional amounts

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based upon the number of flights and block hours flown. The contract also includes reimbursement of certain costs incurred by Mesa in performing flight services. These costs, known as "pass-through costs," may include passenger liability insurance as well as aircraft property taxes and other flight service expenditures defined in Mesa's agreement. Additionally, for the E175 aircraft owned by United Airlines, the CPA provides that United Airlines will reimburse Mesa for heavy airframe and engine maintenance, landing gear, APUs, and component maintenance. Mesa also receives compensation under the agreement for heavy maintenance expenses at a fixed hourly rate or per aircraft rate for all aircraft in scheduled service other than the E175 aircraft owned by United Airlines. The contract also includes incentives and penalties based on certain operational benchmarks. Mesa is eligible to receive incentive compensation upon the achievement of certain performance criteria defined in the agreement. At the end of each period during the term of an agreement, Mesa calculates the incentives achieved during that period and recognizes revenue attributable to the agreement during the period accordingly, subject to the variable constraint guidance under ASC 606. All revenue recognized under the CPA is presented as the gross amount billed to United Airlines.

Under the United CPA, Mesa has committed to perform various activities that can be generally classified into in-flight services and maintenance services. When evaluating these services, Mesa determined that the nature of its promise is to provide a single integrated service, flight services, because Mesa's contracts require integration and assumption of risk associated with both services to effectively deliver and provide the flights as scheduled over the contract term. Therefore, the in-flight services and maintenance services are inputs to that combined integrated flight service. Both services occur over the term of the agreement and the performance of maintenance services significantly affects the utility of the in-flight services. Mesa's individual flights flown under the United CPA are deemed to be distinct and the flight service promised in the CPA represents a series of services that is accounted for as a single performance obligation. This single performance obligation is satisfied over time as the flights are completed. Therefore, revenue is recognized when each flight is completed.

In allocating the transaction price, variable payments (i.e., billings based on flights and block hours flown, pass-through costs, etc.) that relate specifically to Mesa's efforts in performing flight services are recognized in the period in which the individual flight is completed. Mesa has concluded that allocating the variability directly to the individual flights results in an overall allocation meeting the objectives in ASC 606. This results in a pattern of revenue recognition that follows the variable amounts billed from Mesa to its customers.

A portion of Mesa's compensation under its CPAs with United Airlines and previously American is designed to reimburse Mesa for certain aircraft ownership costs. Mesa has concluded that a component of its revenue under these agreements is deemed to be lease revenue, as such agreements identify the "right of use" of a specific type and number of aircraft over a stated period-of-time. The lease revenue associated with the United CPA is accounted for as an operating lease and is reflected as contract revenue on Mesa's consolidated statements of operations and comprehensive loss. Mesa's recognized $123.0 million, $144.7 million, and $158.4 million of lease revenue for the fiscal years ended September 30, 2024, 2023, and 2022, respectively. Mesa has not separately stated aircraft rental income and aircraft rental expense in the consolidated statements of operations and comprehensive loss because the use of the aircraft is not a separate activity of the total service provided.

The United CPA is renewable periodically and contains provisions pursuant to which the parties could terminate their respective agreements, subject to certain conditions, as described in Note 1 — "Organization and Operations" to Mesa's unaudited condensed consolidated financial statements included elsewhere in this proxy statement/prospectus. The United CPA also contains terms with respect to covered aircraft, services provided, and compensation as described in Note 1. The United CPA is amended from time to time to change, add, or delete terms of the agreements.

Mesa's revenues could be impacted by a number of factors, including amendment or termination of the United CPA, contract modifications resulting from contract renegotiations, Mesa's ability to earn incentive payments contemplated under applicable agreements, and settlement of reimbursement disputes with United Airlines. In the event contracted rates are not finalized at a quarterly or annual financial statement date, Mesa

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evaluates the enforceability of its contractual terms and when Mesa has an enforceable right, Mesa estimates the amount it expects to be entitled subject to the variable constraint guidance under ASC 606.

The United CPA contains an option that allows United Airlines to assume the contractual responsibility for procuring and providing the fuel necessary to operate the flights that Mesa operates for them. United Airlines has exercised this option. Accordingly, Mesa does not record an expense or revenue for fuel and related fueling costs for flying under the United CPA. In addition, United Airlines also provides, at no cost to Mesa, certain ground handling and customer service functions, as well as airport-related facilities and gates at their hubs and other cities. Services and facilities provided by United Airlines at no cost are presented net in its consolidated financial statements; hence, no amounts are recorded for revenue or expense for these items.

Mesa records deferred revenue when cash payments are received or are due from United Airlines in advance of Mesa's performance. The deferred revenue balance as of September 30, 2024 of $9.6 million (current and non-current portion) represents Mesa's aggregate remaining performance obligations that will be recognized as revenue over the period in which the performance obligations are satisfied (as flights are completed over the remaining contract term).

#### Property and Equipment
Mesa's property and equipment, which primarily consists of aircraft and related flight equipment, had a net book value of $31.9 million as of June 30, 2025. Mesa monitors for any indicators of impairment of its property and equipment and other long-lived assets whenever events or changes in circumstances indicate that the related carrying amount may be impaired. Factors which could be indicators of impairment include, but are not limited to: (i) significant adverse changes in the extent or manner in which an asset is being used, including permanently removing a long-lived asset or assets from operations; (ii) significant changes in the estimated useful life of an asset; (iii) significant changes in estimated future cash flows or a history of operating or cash flow losses; (iv) permanent and significant declines in market prices of an asset; and (v) changes to the regulatory environment or business climate. Mesa records an impairment loss if (i) the undiscounted future cash flows are found to be less than the carrying amount of the asset or asset group, and (ii) the carrying amount of the asset or asset group exceeds its fair value. If an impairment loss has occurred, a charge is recorded to reduce the carrying amount of the asset to its estimated fair value.

Mesa groups assets at the CPA level (i.e., the lowest level for which there are identifiable cash flows). If impairment indicators exist with respect to any of Mesa's asset groups, Mesa estimates future cash flows based on projections of capacity purchase block hours, maintenance events, labor costs, and other relevant factors. Mesa's assumptions about future conditions are important to its assessment of potential impairment of its long-lived assets. Mesa will continue to monitor these conditions in future periods as new information becomes available and will update its analyses accordingly. If an asset group is impaired, the impairment loss recognized is the amount by which the asset group's carrying amount exceeds its fair value. Mesa estimates fair values of aircraft and related assets using published sources, appraisals, and bids received from third parties as available.

As a result of operating losses and the removal of CRJ-900 aircraft from the United CPA, Mesa evaluated its fleet for impairment as of September 30, 2024, and determined that future cash flows from the operation of its fleet through the remaining useful life exceeded the carrying value of the fleet. As such, no impairment expenses were recorded to its fleet.

#### Income Taxes
Income taxes are accounted for using the asset and liability method. Under this method, deferred income tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the

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years in which these temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided for those deferred tax assets for which Mesa cannot conclude that it is more likely than not that such deferred tax assets will be realized.

In determining the amount of the valuation allowance, estimated future taxable income as well as feasible tax planning strategies for each taxing jurisdiction are considered. If Mesa determines it is more likely than not that all or a portion of the remaining deferred tax assets will not be realized, the valuation allowance will be increased with a charge to income tax expense. Conversely, if Mesa determines it is more likely than not to be able to utilize all or a portion of the deferred tax assets for which a valuation allowance has been provided, the related portion of the valuation allowance will be recorded as a reduction to income tax expense.

Mesa recognizes and measures benefits for uncertain tax positions using a two-step approach. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that the tax positions will be sustained upon audit, including resolution of any related appeals or litigation processes. For tax positions that are more likely than not to be sustained upon audit, the second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon settlement. Mesa's practice is to recognize interest and/or penalties related to income tax matters in income tax expense. Significant judgment is required to evaluate uncertain tax positions. Evaluations are based upon a number of factors, including changes in facts or circumstances, changes in tax law, correspondence with tax authorities during the course of tax audits, and effective settlement of audit issues. Changes in the recognition or measurement of uncertain tax positions could result in material increases or decreases in income tax expense in the period in which the change is made, which could have a material impact to Mesa's ETR. Please see Note 12 — "Income Taxes" in the notes to Mesa's audited consolidated financial statements included elsewhere in this proxy statement/prospectus for additional information. Please see also "Management's Discussion and Analysis — Results of Operations — Income Taxes" for additional information.

#### Recently Issued Accounting Pronouncements
A description of recently issued accounting pronouncements that may potentially impact Mesa's financial position and results of operations is disclosed in Note 3: "Recent Accounting Pronouncements" to Mesa's unaudited condensed consolidated financial statements included elsewhere in this proxy statement/prospectus.

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#### QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT THE MARKET RISK OF MESA
Mesa is subject to market risks in the ordinary course of Mesa's business. These risks include interest rate risk and, on a limited basis, commodity price risk with respect to foreign exchange transactions. The adverse effects of changes in these markets could pose a potential loss as discussed below. The sensitivity analysis provided does not consider the effects that such adverse changes may have on overall economic activity, nor does it consider additional actions Mesa may take to mitigate Mesa's exposure to such changes. Actual results may differ.

*Interest Rate Risk* 

Mesa is subject to market risk associated with changing interest rates on its variable rate long-term debt; the variable interest rates are based on SOFR. The interest rates applicable to variable rate notes may rise and increase the amount of interest expense on Mesa's variable rate long-term debt. Mesa does not purchase or hold any derivative instruments to protect against the effects of changes in interest rates.

As of June 30, 2025, Mesa had $113.7 million of variable-rate debt, including current maturities. A hypothetical 100 basis point change in market interest rates would have affected interest expense by approximately $1.1 million in the nine months ended June 30, 2025. Mesa did not have any fixed-rate debt as of June 30, 2025.

On July 27, 2017, the U.K. Financial Conduct Authority (the authority that regulates LIBOR) announced that it would stop compelling banks to submit rates for the calculation of LIBOR after 2021. In December 2020, the administrator of LIBOR proposed to cease publication of certain LIBOR settings after December 2021 and to cease publication of the remainder of the LIBOR settings after June 2023. The majority of Mesa's debt arrangements were indexed to one- and three-month LIBOR, which were sunset on June 30, 2023. The U.S. Federal Reserve, in conjunction with the Alternative Reference Rates Committee, replaced LIBOR with SOFR after June 30, 2023. Mesa applied expedients to agreements under LIBOR that were replaced by SOFR. Under the expedient, Mesa now accounts for amendments to agreements as if the modification was not substantial. The new carrying amounts of debts consist of the carrying amount of the original debt and any additional fees associated with the modified debt instrument. New effective yields were established based on the new carrying amount and revised cash flows. As of June 30, 2025, Mesa had $113.7 million of borrowings based on SOFR.

*Foreign Currency Risk* 

Mesa has de minimis foreign currency risks related to its station operating expenses denominated in currencies other than the U.S. dollar, primarily the Canadian dollar. Mesa's revenue is U.S. dollar denominated. To date, foreign currency transaction gains and losses have not been material to Mesa's financial statements, and Mesa has not had a formal hedging program with respect to foreign currency. A 10% increase or decrease in current exchange rates would not have a material effect on Mesa's financial results.

*Fuel Price Risk* 

Unlike other airlines, Mesa's agreements largely shelter Mesa from volatility related to fuel prices, which are directly paid and supplied by Mesa's major partners.

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#### REPUBLIC MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
*The following discussion and analysis of Republic's financial condition and results of operations should be read in conjunction with Republic's consolidated financial statements and related notes thereto included elsewhere in this proxy statement/prospectus. This discussion contains forward-looking statements that involve risks, uncertainties, and assumptions that could cause actual results to differ materially from Republic's management's expectations. Factors that could cause such differences are discussed in "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors."* 

#### Overview
Republic is the second largest independent regional airline in the United States based on total fleet and daily departures. As of December 31, 2024 and June 30, 2025, Republic had a fleet of 240 and 245 regional jet aircraft that regularly provides scheduled passenger service on approximately 1,000 and 1,100 daily flights, respectively, to over 90 cities in the United States, Canada, and the Caribbean. All of Republic's flights are operated under multi-year CPAs with Republic's Partners. Republic exclusively operates the dual class Embraer E170/175 family of aircraft and is one of the world's largest operators of that popular aircraft type. Under the CPAs, Republic provides substantially all of its flight capacity to Republic's Partners. Republic's compensation is not materially or directly affected by variations in fares or passenger load factors, nor by variations in the price of fuel, the cost of which is paid directly by Republic's Partners, effectively providing Republic with contractual monthly revenues, while reducing Republic's exposure to fluctuations in fuel prices, fare competition, and passenger loads. In 2023 and 2024, Republic carried passengers on more than 308,000 and 323,000 flights, generating revenues of $1,429.1 million and $1,474.0 million and pre-tax income of $88.0 million and $86.9 million, respectively. During the six months ended June 30, 2024 and 2025, Republic carried passengers on more than 153,000 and 176,000 flights, generating revenues of $712.2 million and $800.4 million and pre-tax income of $38.3 million and $87.3 million, respectively.

Republic operates under Republic's Partners' two-letter flight designation codes, paints its aircraft in the style of Republic's Partners' brand requirements, and uses Republic's Partners' service marks to market itself as a carrier for Republic's Partners. Republic's Partners control route selection, pricing, seat inventories, marketing, and scheduling, and provide Republic with ground support services, airport take-off and landing slots, and gate access, allowing Republic to focus on operational excellence, positioning itself as the regional airline of choice for Republic's Partners and passengers through the delivery of safe, clean, reliable, and efficient regional service. For the six months ended June 30, 2025, American Airlines accounted for 42% of Republic's departures, while Delta Air Lines and United Airlines each accounted for 29% of Republic's departures, respectively.

Through July 2025, Republic granted 30,291 restricted stock units ("RSUs") to certain members of management, which are subject to both time- and performance-based vesting conditions (the "Republic Integration RSUs"). The time-vesting Republic Integration RSUs vest in equal installments on the third and fourth anniversaries of the Closing Date, subject to continued employment. The performance-vesting Republic Integration RSUs vest, subject to continued employment, in one-third tranches upon achievement of specified operational milestones. If the Closing does not occur or the Merger Agreement is terminated, all Republic Integration RSUs will be immediately forfeited for no consideration. The estimated grant date fair value of each RSU was $600 per share.

Bryan Bedford, Republic's former President and Chief Executive Officer, received Presidential nomination to the position of Administrator of the Federal Aviation Administration of the U.S. Department of Transportation by President Donald Trump. In connection with such nomination, Mr. Bedford retired from Republic effective July 1, 2025. Republic paid a cash payment of $16.0 million related to his employment contract. Upon effectiveness of his retirement, 16,733 shares were considered earned and vested immediately, resulting in additional compensation expense of $7.7 million. Republic will record total expense of approximately $18.8 million during the nine months ending September 30, 2025 related to Mr. Bedford's separation and retirement. Matthew Koscal, Executive Vice President and Chief Administrative Officer, was promoted to

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President and Chief Commercial Officer of Republic, and David Grizzle, Chairman of the board of directors of Republic, began serving as Chief Executive Officer upon Mr. Bedford's retirement on July 1, 2025.

#### Factors, Trends, and Uncertainties Affecting Republic's Business
Republic believes its operating and business performance is driven by various factors that typically affect regional airlines and their markets, including factors and trends which affect the broader airline and travel industries. The following key factors, trends, and uncertainties have affected Republic's historical results of operations and may materially affect Republic's future performance:

**Availability and Training of Qualified Pilots.** Effective July 15, 2013, as directed by the U.S. Congress, the FAA issued more stringent pilot qualification and crew member flight training standards, which, among other things, increased the required training time for new commercial airline pilots from 250 hours to 1,500 hours of flight time. With these changes, the supply of qualified pilot candidates eligible for hiring by the airline industry has been dramatically reduced in recent years. In addition, the FAA's mandatory retirement age of 65 is expected to cause a significant number of pilots to retire over the next decade.

To address the expected increasingly diminished supply of qualified pilot candidates, Republic developed and launched a proprietary flight training school called LIFT Academy in 2018 and continues to develop relationships with flight schools across the country to help fulfill its need for pilots. Since its founding in 2018, LIFT Academy expanded its operations with additional flight school locations in Myrtle Beach, SC, Galveston, TX, and at Tuskegee University in Tuskegee, AL.

Republic has also entered into a partnership with Hyannis Air Service Inc. d/b/a Cape Air and Nantucket Airlines ("Cape Air") in order to create a pipeline of talent from LIFT Academy to Cape Air and then to Republic to provide additional structured pathways for accumulation of the FAA 1,500 flight hour requirement. This strategic partnership will help Republic retain talented pilots as they transition from LIFT Academy students to pilots at Republic in less time and with more experience. Republic has also built a state-of-the-art training campus that opened in early 2023. Finally, Republic has undertaken substantial efforts to generate renewed interest in the industry, including developing partnerships with secondary education institutions to promote its mission to build diversity within the cockpit and hangar. Republic's ability to grow and continue to provide safe, clean, and reliable regional airline services to Republic's Partners will depend on its ability to successfully attract, train, and develop pilots. Furthermore, pilot training and development is constrained by the availability of full motion flight simulation equipment in the marketplace. In order to ensure access to this equipment, Republic has acquired one flight simulator and has long-term agreements in place that guarantee it a minimum level of flight simulator availability and provide for potential access to additional flight simulators.

**Pilot Attrition and Staffing Base.** Republic experiences significant volatility in its attrition as a result of the demand for pilots at mainline, low-cost, and cargo carriers who obtain pilot hires, in part, from regional airlines. Pilot attrition could be a factor impacting Republic's results and ability to acquire new market share in future periods. In addition, the lead-time in acquiring and training new pilots requires that Republic grow its pilot staffing base in excess of its then-current need when Republic accepts new business and expands its fleet.

**Workforce Development.** Over the past few years Republic has expanded its investment in LIFT Academy to address workforce development needs to include a DOL approved maintenance technician apprenticeship program and CFR Part 145 repair station to expand the level of experience and learning opportunities afforded to technicians and other aspiring aviation operations personnel. In addition, Republic has secured a partnership with Cape Air to create a flow program of talented aviators from LIFT Academy to Cape Air to supplement their workforce in exchange for flight hours and valuable experience. Republic has also built a state-of-the-art training campus that houses simulators, a cabin trainer, and classrooms to train its pilots, flight attendants, maintenance technicians, dispatchers, and other employees. Republic's inability to source qualified aviation personnel, whether from LIFT Academy or externally, may adversely impact its ability to operate in a cost-effective manner, expand its fleet, and carry out reliable operations.

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**Labor.** The airline industry is heavily unionized. The wages, benefits, and work rules of unionized airline industry employees are determined by Republic's collective bargaining agreements ("CBAs"). As of June 30, 2025, over 73% of Republic's workforce was represented under CBAs. Republic's CBAs with its pilots, flight attendants, and dispatchers become amendable in 2027. The terms and conditions of Republic's future CBAs may be affected by the results of collective bargaining negotiations at other airlines, regional or otherwise, that may have a greater ability, due to larger scale, greater efficiency, or other factors, to bear higher wage costs than Republic can. In addition, conflicts between airlines and their unions can lead to work slowdowns or stoppages. A strike or other significant labor dispute with Republic's unionized employees may adversely affect its ability to conduct business.

**Competition.** The airline industry is highly competitive. Republic competes principally with other regional airlines. Major airlines typically award CPAs to regional airlines based on the following criteria: (i) ability to fly contracted schedules; (ii) availability of labor resources (including pilots); (iii) low operating cost; (iv) financial resources; (v) geographical infrastructure; (vi) overall customer service and reliability levels such as on-time arrival and flight completion percentages; and (vii) the overall image of the regional airline. Republic's ability to earn additional flying opportunities in the future will depend, in significant part, on its ability to consistently operate as a safe, clean, reliable, cost-effective, and high-quality regional airline.

**Market Volatility.** The airline industry is volatile and sensitive to economic cycles and trends. Declining consumer confidence and discretionary spending, fear of terrorism or war, fear of a global pandemic, weakening economic conditions, fare initiatives, fluctuations in fuel prices, labor actions and wage escalation, changes in governmental regulations on taxes, fees and tariffs, weather, and other factors have contributed to a number of reorganizations, bankruptcies, liquidations, and business combinations among major and regional air carriers. The effect of economic cycles and trends may be somewhat mitigated by Republic's reliance on long-term CPAs. If, however, any of Republic's major airline partners experience a prolonged decline in the number of passengers served or is negatively affected by low ticket prices or high fuel prices, it may seek rate reductions in future CPAs or materially reduce its scheduled flights in order to reduce its costs. Republic's financial performance could be negatively impacted by any adverse changes to contracted revenue rates, number of aircraft in the fleet, or utilization under its CPAs.

**Maintenance Contracts, Costs, and Timing.** Republic's associates perform routine airframe and engine maintenance along with periodic inspections of equipment at its maintenance facilities. Republic also uses third-party vendors for certain heavy airframe, engine, and other maintenance work, along with parts procurement and component overhaul services for its aircraft fleet.

The average age of Republic's aircraft is approximately 14 years. Due to the age of certain aircraft, Republic's aircraft require less overall maintenance now than they will in the future. As its aircraft fleet ages and warranties expire, Republic expects that its maintenance costs will increase in absolute terms and as a percentage of revenue.

Republic uses the direct expense method of accounting for its maintenance of regional jet engine overhauls, airframe, landing gear, and normal recurring maintenance whereby it recognizes expense as maintenance work is completed or over the repair period, if materially different. While Republic keeps a record of expected maintenance events, the actual timing and costs of major engine maintenance expense are subject to variables such as estimated usage, government regulations (including tariffs), the extent of the occurrence of unscheduled maintenance events, and their actual costs. Accordingly, Republic cannot reliably quantify the cost or timing of future maintenance-related expenses for any significant period of time.

In addition, Republic has entered into long-term maintenance "power-by-the-hour" service contracts with third-party maintenance providers under which it is charged fixed rates for each flight hour or other measure accumulated by the majority of its engines and some of the major airframe components. The effect of such contracts is to reduce the volatility of aircraft maintenance expense over the term of the maintenance agreement.

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**Aircraft Leasing and Finance Determinations.** Republic has generally funded aircraft acquisitions through a combination of debt financing, finance leases, and operating leases. Republic's decision to finance the acquisition of aircraft through leases or secured debt may be influenced by a variety of factors, including the preferences of its major airline partners, the strength of its balance sheet and credit profile (and those of Republic's major airline partners), the length and terms of the available financing alternatives, prevailing market interest rates, and any lease return condition requirements. Generally, under Republic's CPAs, the monthly ownership costs of the aircraft it operates are reimbursed, in whole or in part, by Republic's Partners. When practical, Republic prefers to finance aircraft through secured debt rather than with leasing products, due to the accelerated tax depreciation benefits, opportunity to acquire equity in its aircraft, absence of lease return conditions, and greater flexibility in renewing the aircraft under its CPAs with its major airline partners at end of term. Republic currently owns or has finance leases on 81% of its existing aircraft and expects to own, rather than lease, a majority of any new fleet acquired. The remaining 19% of Republic's fleet is owned directly by certain of Republic's Partners, which Republic refers to as "Partner Controlled Aircraft." Subsequent to the initial acquisition of an aircraft, Republic may also refinance the aircraft or convert one form of financing to another (e.g., replacing an aircraft operating lease with debt financing or vice versa) to meet its capital needs at a given time.

As of June 30, 2025, Republic had 13 aircraft subject to finance leases. At lease inception, Republic's management makes certain estimates in order to determine the proper classification of its leased aircraft as either operating leases or finance leases, economic useful lives of subject assets, fair value of the asset under lease, as well as selection of an appropriate discount rate to be used in discounting future lease payments. These estimates also affect the value recorded for the finance lease asset and the corresponding finance lease liability, which is classified as long-term debt. Amortization of the finance lease asset is recorded to depreciation and amortization expense. Republic's interest component of a finance lease payment is recorded to interest expense.

**Seasonality.** Republic's results of operations for any interim period are not necessarily indicative of those for the entire year, in part because the airline industry is subject to seasonal fluctuations and changes in general economic conditions. A significant portion of Republic's CPAs is based on completing flights as scheduled, and Republic typically has more scheduled flights during the summer months and concurrently generally experiences significant weather cancelations during the summer months, which negatively impacts its revenues during such months.

#### Key Components of Republic's Results of Operations

#### Revenue
Republic operates under the American Eagle, Delta Connection, and United Express brands through its CPAs with American Airlines, Delta Air Lines, and United Airlines. Under these arrangements, Republic receives fixed fees, as well as reimbursement of specified costs with additional possible incentives from Republic's Partners for superior performance. Substantially all of Republic's revenues are earned under its CPAs with Republic's Partners. The number of aircraft Republic operates, aircraft utilization, and the rates that it charges are the most significant drivers of Republic's revenues. The number of passengers carried and the fares which revenue-generating passengers pay do not affect Republic's revenues. Republic earns revenues based on aircraft utilization levels under the applicable CPAs with each of Republic's Partners, subject to minimum utilization guarantees.

Revenues associated with regional jet services are generally derived from (i) a fixed fee per departure, flight hour, and/or block hour of time incurred and a fixed rate for available-to-schedule aircraft, payable on a monthly basis; and (ii) a premium amount, which is earned monthly or quarterly by maintaining minimum aircraft utilization levels and exemplary operating results. To the extent that minimum targets are not achieved, Republic could be subject to financial penalties. These fixed-fee rates are contractually subject to periodic economic adjustment. Republic also receives reimbursement from Republic's Partners for direct expenses incurred such as qualifying maintenance activities, property taxes, and miscellaneous operating expenses. Republic refers to Republic's Partners reimbursements as "pass-through charges." Certain charges such as fuel and landing fees are paid directly by Republic's Partners, although the charges were incurred by Republic in its ongoing operations. Republic refers to these charges as "Partner direct charges." Pass-through charges are primarily recorded to revenues and the corresponding operating expense on a gross basis. Pass-through charges recorded on a net basis are not material.

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Amounts recognized as regional jet services revenues are measured at the contractual amount Republic expects it will be entitled to in exchange for the promised services. Republic allocates the transaction price as flights are completed with variable consideration that relates specifically to Republic's efforts in delivering each flight recognized in the period in which the individual flight is completed and measured on a monthly basis. Republic records an estimate for incentive revenue based on its expected performance at the end of each period. These estimates are derived under accounting guidance related to variable consideration constraints and based on amounts expected to be collected. Republic has concluded that allocating the variability directly to the individual flights results in an overall allocation meeting the objectives in Financial Accounting Standards Board ("FASB") ASC 606, *Revenue Recognition*. This results in a pattern of revenue recognition that generally follows the variable amounts billed from Republic to Republic's Partners.

#### Operating Expenses
A brief description of the items included in Republic's operating expenses line items follows:

*Wages and Benefits* 

This expense includes salaries and wages earned by Republic's pilots, flight attendants, dispatchers, and other employees, as well as expenses associated with various employee benefit plans, employee incentives, and payroll taxes. These expenses fluctuate primarily based on Republic's level of operations, changes in wage rates for contract and non-contract employees, and changes in costs of its benefit plans.

*Aircraft and Engine Rent* 

This expense consists of the costs of aircraft and spare engines under operating leases. Leased aircraft (including wing-mounted engines) and spare engines are operated under long-term operating leases and subject to adjustment as costs associated with minimum lease return conditions become probable and able to be estimated, generally coinciding with the last heavy maintenance visit.

*Maintenance and Repair* 

Maintenance and repair expenses include all materials and labor required to maintain Republic's aircraft. Republic has entered into long-term maintenance "power-by-the-hour" service contracts with certain third-party maintenance providers under which Republic is charged fixed rates for each flight hour or departure accumulated by the majority of its engines and certain major airframe components. The effect of such contracts is to reduce the volatility of aircraft maintenance expense over the term of Republic's maintenance agreements. All other maintenance charges are expensed as incurred under the direct expense method of accounting. Certain maintenance and repair activities, such as engine overhauls and heavy maintenance, qualify for reimbursement from Republic's Partners under the pass-through provisions of Republic's CPAs.

*Depreciation and Amortization* 

This expense includes depreciation expense of all aircraft and equipment, which includes aircraft under debt obligations and finance leases, spare engines, flight equipment, training aircraft, and ground equipment as well as amortization expense on leasehold improvements. Effective January 1, 2024, Republic revised the estimated useful lives of regional jet aircraft, spare engines, and flight equipment from 22 years to 26 years in an effort to more closely align with market data impacting its fleet usage pattern.

*Other Operating Expense* 

Costs of crew training, crew travel, facilities and administrative lease expenses, professional fees, and all other administrative and operational overhead expenses are recorded to other operating expense. Additionally, to the extent that these charges are incurred, Republic records expenses related to gains and losses on asset disposals, impairment charges, severance costs, and bad debt expense to other operating expense.

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#### Other Expense, net
Other expense, net is comprised of interest expense on secured and unsecured debt obligations, realized and unrealized gains and losses on fair value adjustments to marketable securities and non-current investments, warrants, and put options held with EVE Holding, Inc. ("EVE"), and Republic's minority interest in Cape Air and its proportionate share of income or losses of Cape Air. Additionally, Republic has a strategic partnership with EVE for the development of electric vertical takeoff and landing ("eVTOL") aircraft.

#### Results of Operations

#### Results for the six months ended June 30, 2024 compared to the six months ended June 30, 2025
The following table sets forth information regarding Republic's operating results for the six months ended June 30, 2024 compared to the six months ended June 30, 2025:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Six Months Ended** | **Six Months Ended** | | |
| **(in millions)** | **June 30,<br>2024** | **June 30,<br>2025** |<br>**$ Variance** |<br>**% Variance** |
|  Revenues | $712.2 | $800.4 | $88.2 | 12.4 |
|  Operating expenses: |  |  |  |  |
|  Wages and benefits | 323.0 | 359.0 | 36.0 | 11.1 |
|  Aircraft and engine rent | 1.8 |  | (1.8) | NM |
|  Maintenance and repair | 150.3 | 150.4 | 0.1 |  |
|  Depreciation and amortization | 58.0 | 61.5 | 3.5 | 6.0 |
|  Other operating expense | 107.9 | 122.2 | 14.3 | 13.3 |
|  Total operating expenses | 641.0 | 693.1 | 52.1 | 8.1 |
|  Operating income | 71.2 | 107.3 | 36.1 | 50.7 |
|  Total other expense, net | (32.9) | (20.0) | 12.9 | (39.2) |
|  Income before income taxes | 38.3 | 87.3 | 49.0 | NM |
|  Income tax expense | 10.7 | 22.8 | 12.1 | NM |
|  Net income | $27.6 | $64.5 | $36.9 | NM |
|  Net income % <sup>(2)</sup> | 3.9% | 8.1% | NM | 4.2 |
|  Adjusted EBITDA <sup>(1)</sup> | $129.2 | $168.8 | $39.6 | 30.7 |
|  Adjusted EBITDA % <sup>(1)</sup> | 18.1% | 21.1% | NM | 3.0 |
|  Adjusted EBITDAR <sup>(1)</sup> | $131.0 | $168.8 | $37.8 | 28.9 |
|  Adjusted EBITDAR % <sup>(1)</sup> | 18.4% | 21.1% | NM | 2.7 |

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<sup>(1)</sup> Adjusted EBITDA represents net income before interest expense, investment income, and other, net, income taxes, and depreciation and amortization expense. Adjusted EBITDAR represents net income before interest expense, investment income, and other, net, income taxes, depreciation and amortization expense, and aircraft and engine rent. Adjusted EBITDA % and EBITDAR % are non-GAAP measures that represent Adjusted EBITDA and Adjusted EBITDAR, respectively, expressed as a percentage of revenues. Republic's management uses these metrics, and it believes these metrics are also useful to investors to understand Republic's financial performance. Adjusted EBITDA, Adjusted EBITDA %, Adjusted EBITDAR, and Adjusted EBITDAR % are included as supplemental disclosure because Republic's management believes that they are well recognized valuation metrics in the airline industry that are frequently used by companies, investors, securities analysts, and other interested parties in comparing companies in Republic's industry. Adjusted EBITDA and Adjusted EBITDAR have limitations as analytical tools. Some of the limitations applicable to these measures include: (i) Adjusted EBITDA and Adjusted EBITDAR do not reflect the impact of certain cash charges resulting from matters Republic considers not to be indicative of its ongoing operations; (ii) Adjusted EBITDA and Adjusted EBITDAR do not reflect Republic's cash expenditures for capital expenditures or contractual commitments; (iii) Adjusted EBITDA and Adjusted EBITDAR do not reflect changes in, or cash requirements for, Republic's working capital needs; (iv) Adjusted EBITDA and Adjusted EBITDAR do not reflect the interest expense, or the cash requirements necessary to service interest or principal payments, on its debts; (v) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future and Adjusted EBITDA and Adjusted EBITDAR do not reflect any cash requirements for such replacements; and (vi) other companies in Republic's industry may calculate Adjusted EBITDA and Adjusted EBITDAR differently than Republic does, limiting their usefulness as comparative measures. Because of these limitations, Adjusted EBITDA and Adjusted EBITDAR should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. In addition, Adjusted EBITDAR should not be viewed as a measure of overall performance because it excludes aircraft and engine rent, which is a normal, recurring cash operating expense 

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that is necessary to operate Republic's business. For the foregoing reasons, each of Adjusted EBITDA, Adjusted EBITDA %, Adjusted EBITDAR, and Adjusted EBITDAR % has significant limitations which affect its use as an indicator of Republic's profitability. Accordingly, readers are cautioned not to place undue reliance on this information.

<sup>(2)</sup> Net income % is net income expressed as a percentage of revenues. 

The following table presents the reconciliation of net income to Adjusted EBITDA and Adjusted EBITDAR for the periods presented below:

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| | | |
|:---|:---|:---|
|  | **Six Months Ended** | **Six Months Ended** |
| **(in millions)** | **June 30,**<br>**2024** | **June 30,<br>2025** |
|  Net income | $27.6 | $64.5 |
|  Plus: |  |  |
|  Interest expense | 29.4 | 29.1 |
|  Investment loss (income) and other, net | 3.5 | (9.1) |
|  Income tax expense | 10.7 | 22.8 |
|  Depreciation and amortization | 58.0 | 61.5 |
|  Adjusted EBITDA | 129.2 | 168.8 |
|  Plus: |  |  |
|  Aircraft and engine rent | 1.8 |  |
|  Adjusted EBITDAR | $131.0 | $168.8 |

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The following table summarizes certain operating data that Republic believes are useful indicators of its operating performance for the six months ended June 30, 2024 and 2025. Republic's management believes block hours, departures, and average daily utilization of each aircraft are its primary measures in evaluating aircraft production, incurrences of revenues and operating expenses, and efficiency of Republic:

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| | | | |
|:---|:---|:---|:---|
| | **Six Months Ended** | **Six Months Ended** | |
| <br>**Operating Highlights** | **June 30, 2024** | **June 30, 2025** |<br>**% Variance** |
|  Aircraft committed to Republic's Partners operations at period end <sup>(1)</sup> | 232 | 243 | 4.7% |
|  Block hours <sup>(2)</sup> | 281041 | 329835 | 17.4 |
|  Departures | 153524 | 176100 | 14.7 |
|  Average daily utilization of each aircraft (hours) <sup>(3)</sup> | 8.1 | 9.6 | 18.5 |
|  Average length of aircraft haul (miles) | 493 | 490 | (0.6) |

---

<sup>(1)</sup> Excludes two unallocated spare aircraft as of June 30, 2024 and 2025.

<sup>(2)</sup> Reflects hours of aircraft movement from gate to gate (including taxi time before takeoff and after landing) until the aircraft comes to rest at the next point of landing.

<sup>(3)</sup> Reflects average daily utilization in block hours (aircraft movement from gate to gate, including taxi time) for the greater of actual in-service aircraft or minimum contracted scheduled aircraft, if applicable.

#### Revenues
Revenues increased $88.2 million or 12.4% from $712.2 million for the six months ended June 30, 2024 to $800.4 million for the six months ended June 30, 2025, primarily related to a $86.2 million (17.7%) increase in Carrier-Controlled Revenue ("CCR") attributable to the increase in flying when compared to the six months ended June 30, 2024. Additionally, there is an annual increase in CCR rates year-over-year.

#### Operating expenses
Wages and benefits expense increased $36.0 million or 11.1% from $323.0 million for the six months ended June 30, 2024 to $359.0 million for the six months ended June 30, 2025. The increase is primarily attributable to a $32.9 million increase in salaries and wages partially due to an increase in block hours and wages for crews and maintenance technicians, as well as increases in vacation pay, payroll tax, and net bonus expense.

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Depreciation and amortization expense increased $3.5 million or 6.0% from $58.0 million for the six months ended June 30, 2024 to $61.5 million for the six months ended June 30, 2025. The increase is due to the delivery of six E175 aircraft and the purchase of three previously leased aircraft in the second half of 2024 and the delivery of six E175 during the first half of 2025, five of which were placed into service, which increased depreciation and amortization expense when compared to the six months ended June 30, 2024. This is offset by the sale of six E175 aircraft during the six months ended June 30, 2024.

Other operating expense increased $14.3 million or 13.3% from $107.9 million for the six months ended June 30, 2024 to $122.2 million for the six months ended June 30, 2025 primarily due to an increase of $4.8 million in professional fees caused by increased work scope related to the Merger Agreement and TPA and a $9.8 million increase in travel expense caused by increased block hours.

#### Other expense, net
Other expense, net decreased $12.9 million or 39.2% to $32.9 million for the six months ended June 30, 2024 compared to $20.0 million for the six months ended June 30, 2025, primarily due to a $11.4 million gain in the valuation of Republic's EVE investments and a $2.3 million gain in the valuation of the CARES Act warrant. This is offset by additional losses of $0.4 million for Republic's investment in Cape Air and an additional $1.4 million decrease in interest from marketable securities from a reduction in unrealized gains.

#### Income tax expense
Republic recorded income tax expense of $10.7 million at a 27.8% effective tax rate for the six months ended June 30, 2024 compared to $22.8 million at a 26.1% effective tax rate for the six months ended June 30, 2025. Republic's effective tax rates differ from statutory rates primarily due to state income taxes, valuation allowances on state net operating losses, and certain non-deductible expenses.

#### Year ended December 31, 2023 compared to the year ended December 31, 2024
The following table sets forth information regarding Republic's operating results for the year ended December 31, 2023 compared to the year ended December 31, 2024:

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| | | | | |
|:---|:---|:---|:---|:---|
| **(in millions)** | **2023** | **2024** | **$ Variance** | **% Variance** |
|  Revenues | $1429.1 | $1474.0 | $44.9 | 3.1 |
|  Operating expenses: |  |  |  |  |
|  Wages and benefits | 654.8 | 677.2 | 22.4 | 3.4 |
|  Aircraft and engine rent | 6.1 | 3.6 | (2.5) | (41.0) |
|  Maintenance and repair | 285.3 | 311.2 | 25.9 | 9.1 |
|  Depreciation and amortization | 159.4 | 117.0 | (42.4) | (26.6) |
|  Other operating expense | 188.2 | 228.0 | 39.8 | 21.1 |
|  Total operating expenses | 1293.8 | 1337.0 | 43.2 | 3.3 |
|  Operating income | 135.3 | 137.0 | 1.7 | 1.3 |
|  Total other expenses, net | (47.3) | (50.1) | (2.8) | 5.9 |
|  Income before income taxes | 88.0 | 86.9 | (1.1) | (1.3) |
|  Income tax expense | 33.2 | 22.3 | (10.9) | (32.8) |
|  Net income | $54.8 | $64.6 | $9.8 | 17.9 |
|  Net income % <sup>(2)</sup> | 3.8% | 94.4% | NM | 0.5 |
|  Adjusted EBITDA <sup>(1)</sup> | $294.7 | $254.0 | (40.7) | (13.8) |
|  Adjusted EBITDA % <sup>(1)</sup> | 20.6% | 17.2% | NM | (3.4) |
|  Adjusted EBITDAR <sup>(1)</sup> | $300.8 | $257.6 | (43.2) | (14.4) |
|  Adjusted EBITDAR % <sup>(1)</sup> | 21.0% | 17.5% | NM | (3.5) |

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<sup>(1)</sup> Adjusted EBITDA represents net income before interest expense, investment income, and other, net, income taxes, and depreciation and amortization expense. Adjusted EBITDAR represents net income before interest expense, investment income, and other, net, income

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taxes, depreciation and amortization expense, and aircraft and engine rent. Adjusted EBITDA % and Adjusted EBITDAR % are non-GAAP measures that represent Adjusted EBITDA and Adjusted EBITDAR, respectively, expressed as a percentage of revenues. Republic's management uses these metrics, and Republic believes these metrics are also useful for investors to understand its financial performance.

<sup>(2)</sup> Net income % is net income expressed as a percentage of revenues. 

The following table presents the reconciliation of net income to Adjusted EBITDA and Adjusted EBITDAR for the periods presented below:

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| | | |
|:---|:---|:---|
| **(in millions)** | **2023** | **2024** |
|  Net income | $54.8 | $64.6 |
|  Plus: |  |  |
|  Interest expense, net | 49.1 | 57.7 |
|  Investment income and other, net | (1.8) | (7.6) |
|  Income tax expense | 33.2 | 22.3 |
|  Depreciation and amortization | 159.4 | 117.0 |
|  Adjusted EBITDA | 294.7 | 254.0 |
|  Plus: |  |  |
|  Aircraft and engine rent | 6.1 | 3.6 |
|  Adjusted EBITDAR | $300.8 | $257.6 |

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The following table summarizes certain operating data that Republic believes are useful indicators of its operating performance for the years ended December 31, 2023 and 2024. Republic's management believes block hours, departures, and average daily utilization of each aircraft are its primary measures in evaluating aircraft production, incurrences of revenues and operating expenses, and efficiency of the Airline.

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| | | | |
|:---|:---|:---|:---|
| **Operating Highlights** | **2023** | **2024** | **% Variance** |
|  Aircraft committed to Republic's Partners operations at period end <sup>(1)</sup> | 238 | 239 | 0.4% |
|  Block hours <sup>(2)</sup> | 561905 | 591677 | 5.3% |
|  Departures | 308314 | 323807 | 5.0% |
|  Average daily utilization of each aircraft (hours) <sup>(3)</sup> | 7.6 | 8.5 | 11.8% |
|  Average length of aircraft haul (miles) | 484 | 489 | 1.0% |

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<sup>(1)</sup> Excludes one unallocated spare aircraft as of December 31, 2023.

<sup>(2)</sup> Reflects hours of aircraft movement from gate to gate (including taxi time before takeoff and after landing) until the aircraft comes to rest at the next point of landing.

<sup>(3)</sup> Reflects average daily utilization in block hours (aircraft movement from gate to gate, including taxi time) for the greater of actual in-service aircraft or minimum contracted scheduled aircraft, if applicable.

#### Revenues
Revenues increased $44.9 million, or 3.1%, from $1,429.1 million for the year ended December 31, 2023 compared to $1,474.0 million for the year ended December 31, 2024, primarily related to a $83.8 million (9.0%) increase in Carrier-Controlled Revenue year-over-year due in part to the increase in flying compared to the prior year. This includes a 5.3% increase in block hours, a 5.4% increase in flight hours, and a 5.0% increase in departures. This is offset by a $40.0 million, or 13.1% decrease in aircraft ownership revenue due to fleet changes that occurred throughout the year ended December 31, 2024.

#### Operating expenses
Wages and benefits expense increased $22.4 million, or 3.4%, from $654.8 million for the year ended December 31, 2023 to $677.2 million for the year ended December 31, 2024. The increase in wages and benefits expense is primarily due to the 5.3% increase in block hour production.

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Maintenance and repair expense increased $25.9 million, or 9.1%, from $285.3 million for the year ended December 31, 2023 to $311.2 million for the year ended December 31, 2024. The increase in maintenance and repair expense is primarily due to the 5.3% increase in block hour production.

Depreciation and amortization expense decreased $42.4 million, or 26.6%, from $159.4 million for the year ended December 31, 2023 to $117.0 million for the year ended December 31, 2024. Effective January 1, 2024, Republic revised the estimated useful lives of regional jet aircraft, spare engines, and flight equipment from 22 years to 26 years in an effort to closely align with its expectation of utilization of the aircraft, including engine life limited parts replacement ("LLP"). The change in accounting estimate on the then-current fleet assets decreased depreciation and amortization expense by $50.5 million for the year ended December 31, 2024. This was offset by an increase in depreciation and amortization expense of $7.4 million due to the delivery of 11 and six new aircraft during the years ended December 31, 2023 and 2024 respectively, and further offset by additional deprecation for building assets put into service in the year ended December 31, 2024.

Other operating expense increased $39.8 million, or 21.1%, from $188.2 million for the year ended December 31, 2023 to $228.0 million for the year ended December 31, 2024. During the year ended December 31, 2023, Republic recognized a $11.4 million gain on the sale of six E175 aircraft compared to a $2.5 million gain on the sale of six E175 aircraft during the year ended December 31, 2024. This is coupled with a $10.2 million increase in professional fees and software costs, as well as a 5.3% increase in block hour production when compared to the year ended December 31, 2023.

#### Other expense, net
Other expense, net increased $2.8 million or 5.9% from $47.3 million for the year ended December 31, 2023 to $50.1 million for the year ended December 31, 2024, primarily due to a $8.6 million increase in overall interest expense resulting from obtaining secured borrowings on aircraft, engines, spare parts, and real estate during the years ended December 31, 2024. In addition, Republic recognized a reduction in the value of its EVE investments of $4.5 million. This is offset by an increase in gains on its marketable securities of $5.2 million, a decrease in Republic's valuation of the CARES Act warrant of $1.5 million, and a decrease in the net losses on the extinguishment of debt of $3.8 million when compared to the year ended December 31, 2023.

#### Income tax expense
Republic recorded income tax expense of $33.2 million for the year ended December 31, 2023, compared to income tax expense of $22.3 million for the year ended December 31, 2024 at an effective tax rate of 37.7% and 25.7%, respectively. Republic's effective tax rates differ from the Federal statutory rate of 21% primarily due to state income taxes, valuation allowances on state net operating losses, and certain non-deductible expenses. During the years ended December 31, 2023 and 2024, Republic's effective state income tax rate increased due to increased operations in higher income tax jurisdictions, resulting in $12.2 million and $1.2 million of additional income tax expense, respectively.

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#### Year ended December 31, 2022 compared to the year ended December 31, 2023
The following table sets forth information regarding Republic's operating results for the year ended December 31, 2022 compared to the year ended December 31, 2023.

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| | | | | |
|:---|:---|:---|:---|:---|
| **(in millions)** | **2022** | **2023** | **$ Variance** | **% Variance** |
|  Revenues | $1327.2 | $1429.1 | $101.9 | 7.7 |
|  Operating expenses: |  |  |  |  |
|  Wages and benefits | 549.3 | 654.8 | 105.5 | 19.2 |
|  Aircraft and engine rent | 8.1 | 6.1 | (2.0) | (24.7) |
|  Maintenance and repair | 280.6 | 285.3 | 4.7 | 1.7 |
|  Depreciation and amortization | 149.7 | 159.4 | 9.7 | 6.5 |
|  Other operating expense | 207.2 | 188.2 | (19.0) | (9.2) |
|  Total operating expenses | 1194.9 | 1293.8 | 98.9 | 8.3 |
|  Operating income | 132.3 | 135.3 | 3.0 | 2.3 |
|  Total other expenses, net | (42.1) | (47.3) | (5.2) | 12.4 |
|  Income before income taxes | 90.2 | 88.0 | (2.2) | (2.4) |
|  Income tax expense | 22.4 | 33.2 | 10.8 | 48.2 |
|  Net income | $67.8 | $54.8 | $(13.0) | (19.2) |
|  Net income % <sup>(2)</sup> | 5.1% | 3.8% | NM | (1.3) |
|  Adjusted EBITDA <sup>(1)</sup> | $282.0 | $294.7 | 12.7 | 4.5 |
|  Adjusted EBITDA % <sup>(1)</sup> | 21.2% | 20.6% | NM | (0.6) |
|  Adjusted EBITDAR <sup>(1)</sup> | $290.1 | $300.8 | 10.7 | 3.7 |
|  Adjusted EBITDAR % <sup>(1)</sup> | 21.9% | 21.0% | NM | (0.9) |

---

<sup>(1)</sup> Adjusted EBITDA represents net income before interest expense, investment income, and other, net, income taxes, and depreciation and amortization expense. Adjusted EBITDAR represents net income before interest expense, investment income, and other, net, income taxes, depreciation and amortization expense, and aircraft and engine rent. Adjusted EBITDA % and Adjusted EBITDAR % are non-GAAP measures that represent Adjusted EBITDA and Adjusted EBITDAR, respectively, expressed as a percentage of revenues. Republic's management uses these metrics, and Republic believes these metrics are also useful for investors to understand its financial performance. 

<sup>(2)</sup> Net income % is net income expressed as a percentage of revenues. 

The following table presents the reconciliation of net income to Adjusted EBITDA and Adjusted EBITDAR for the periods presented below:

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| | | |
|:---|:---|:---|
| **(in millions)** | **2022** | **2023** |
|  Net income | $67.8 | $54.8 |
|  Plus: |  |  |
|  Interest expense, net | 40.6 | 49.1 |
|  Investment income and other, net | (1.5) | (1.6) |
|  Income tax expense | 22.4 | 33.2 |
|  Depreciation and amortization | 149.7 | 159.4 |
|  Adjusted EBITDA | 282.0 | 294.7 |
|  Plus: |  |  |
|  Aircraft and engine rent | 8.1 | 6.1 |
|  Adjusted EBITDAR | $290.1 | $300.8 |

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The following table summarizes certain operating data that Republic believes are useful indicators of its operating performance for the years ended December 31, 2022 and 2023. Republic's management believes block hours, departures, and average daily utilization of each aircraft are its primary measures in evaluating aircraft production, incurrences of revenues and operating expenses, and efficiency of the Airline.

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| | | | |
|:---|:---|:---|:---|
| **Operating Highlights** | **2022** | **2023** | **%<br>Variance** |
|  Aircraft committed to Republic's Partners operations at period end <sup>(1)</sup> | 231 | 238 | 3.0% |
|  Block hours <sup>(2)</sup> | 598417 | 561905 | (6.1) |
|  Departures | 316357 | 308314 | (2.5) |
|  Average daily utilization of each aircraft (hours) <sup>(3)</sup> | 7.9 | 7.6 | (3.8) |
|  Average length of aircraft haul (miles) | 513 | 484 | (5.7) |

---

<sup>(1)</sup> Excludes one unallocated spare aircraft as of December 31, 2022 and 2023.

<sup>(2)</sup> Reflects hours of aircraft movement from gate to gate (including taxi time before takeoff and after landing) until the aircraft comes to rest at the next point of landing.

<sup>(3)</sup> Reflects average daily utilization in block hours (aircraft movement from gate to gate, including taxi time) for the greater of actual in-service aircraft or minimum contracted scheduled aircraft, if applicable.

#### Revenues
Revenues increased $101.9 million or 7.7% from $1,327.2 million for the year ended December 31, 2022 to $1,429.1 million for the year ended December 31, 2023, primarily due to increased variable reimbursements from Republic's Partners which became effective in late 2022 to partially offset elevated pilot wage rates under the new CBAs reached in late 2022. This is offset by a decrease in revenues driven by the 6.1% decrease in block hour production compared to the year ended December 31, 2022.

#### Operating expenses
Wages and benefits expense increased $105.5 million or 19.2% from $549.3 million for the year ended December 31, 2022 to $654.8 million for the year ended December 31, 2023. The increase in wages and benefits expense is due to the CBAs reached with Republic's pilot, flight attendant, and dispatcher labor groups during the fourth quarter of 2022, which significantly increased wages and other benefit costs by $91.8 million. This coupled with a $7.6 million increase in signing bonus for crew, as well as an increase in paid time off.

Aircraft and engine rent expense decreased $2.0 million or 24.7% from $8.1 million for the year ended December 31, 2022 to $6.1 million for the year ended December 31, 2023 as Republic entered into amendments related to five aircraft operating leases. Based on the terms under the amended agreements, such leases are accounted for as finance leases upon consummation of the related transactions. As such, Republic reclassified the leases from operating leases to finance leases, which decreased aircraft rent expense $1.6 million when compared to the year ended December 31, 2022. In addition, Republic converted eight engines to finance leases during the year ended December 31, 2023, which decreased engine rent by $0.4 million compared to the year ended December 31, 2022.

Maintenance and repair expense increased $4.7 million or 1.7% from $280.6 million for the year ended December 31, 2022 compared to $285.3 million for the year ended December 31, 2023 primarily due to an increase in event-based, scheduled maintenance and repair events of $3.8 million when compared to the year ended December 31, 2022.

Depreciation and amortization expense increased $9.7 million or 6.5% from $149.7 million for the year ended December 31, 2022 to $159.4 million for the year ended December 31, 2023. The increase is due to the delivery of 17 E175 aircraft since late 2022, which increased depreciation and amortization expense by $8.3 million when compared to the year ended December 31, 2022 and completion of the initial phase of Republic's aviation campus that includes its training center and associate overnight accommodations that opened

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in March 2023, which increased depreciation and amortization expense by $4.7 million when compared to the year ended December 31, 2022. This is offset by the sale of six E175 aircraft during the first half of 2023 which decreased depreciation and amortization by $3.8 million when compared to the year ended December 31, 2022.

Other operating expense decreased $19.0 million or 9.2% from $207.2 million for the year ended December 31, 2022 to $188.2 million for the year ended December 31, 2023. The decrease was primarily due to the recognition of a $11.4 million gain from the sale of six E175 aircraft which occurred during the year ended December 31, 2023 coupled with an $8.5 million decrease in crew training hotel costs due to fewer new hires and utilization of the Brickyard Hotel at the Aviation Campus, slightly offset by increase in outside services due to increased legal fees and property related expenses.

#### Other expense, net
Other expense, net increased $5.2 million or 12.4% from $42.1 million for the year ended December 31, 2022 to $47.3 million for the year ended December 31, 2023, primarily due to a $8.5 million increase in overall interest expense resulting from obtaining secured borrowings on aircraft, engines, spare parts, and real estate during the year ended December 31, 2023. In addition, Republic recognized a net loss of $5.1 million from aircraft debt extinguishment related to the sale of six E175 aircraft to American Airlines during the year ended December 31, 2023. This was partially offset by an increase in investment income of $10.2 million.

#### Income tax expense
Republic recorded income tax expense of $22.4 million at a 24.8% effective tax rate for the year ended December 31, 2022 compared to income tax expense of $33.2 million at a 37.7% effective tax rate for the year ended December 31, 2023. Republic's effective tax rates differ from statutory rates primarily due to state income taxes, valuation allowances on net operating losses, and certain non-deductible expenses. During the year ended December 31, 2023, Republic's effective state income tax rate increased due to increased operations in higher income tax jurisdictions, resulting in $12.2 million of additional income tax expense.

#### Liquidity and Capital Resources
Republic requires cash to fund its operating expenses and working capital requirements, including outlays to fund capital expenditures, aircraft pre-delivery deposit payments, maintenance expenses, aircraft rent, and debt service obligations, including principal and interest payments. Republic's cash needs vary from period to period, primarily based on the timing and costs of significant maintenance events and capital expenditures. Republic's principal sources of liquidity are cash on hand and liquid investments, including investments in marketable securities, cash generated from operations, and funds raised from external borrowings. In the near term, Republic expects to fund its primary cash requirements through cash generated from operations, cash, and cash equivalents on hand (including its investments in marketable securities), and funds from new borrowings on aircraft deliveries and its aviation campus. There is no assurance that Republic will be successful in securing any additional liquidity from third-party creditors. Republic believes that cash flow from operating activities coupled with existing cash, cash equivalents, and marketable securities will be adequate to fund its operating and capital needs through at least the next 12 months.

As of June 30, 2025, Republic had a working capital deficit of $5.5 million. The airline industry is highly capital intensive due to the nature and financing methods for its fleet assets used to generate operating cash flows. If Republic fails to generate sufficient funds from operations to repay such obligations, it may need to raise capital through the issuance of equity or obtain or refinance borrowings to meet its existing obligations. There can be no assurance that such equity transactions or borrowings will be available or, if available, will be at terms, rates, or prices acceptable to Republic.

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The following table summarizes Republic's total cash and marketable securities as of December 31, 2024 and June 30, 2025 as well as its operating, investing, and financing cash flow activities for the six months ended June 30, 2024 and 2025:

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| | | | | |
|:---|:---|:---|:---|:---|
| **(in millions)** | **December 31,<br>2024** | **June 30,<br>2025** | **$ Variance** | **% Variance** |
|  Cash, cash equivalents, and restricted cash | $131.9 | $116.8 | $(15.1) | (11.4)% |
|  Marketable securities | 191.5 | 196.8 | 5.3 | 2.8 |
|  Total | $323.4 | $313.6 | $(9.8) | (3.0)% |

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Six Months Ended** | **Six Months Ended** | | |
| <br>**(in millions)** | **June 30,<br>2024** | **June 30,<br>2025** |<br>**$ Variance** |<br>**% Variance** |
|  Net cash provided by operating activities | $78.0 | $142.0 | $64.0 | 82.1% |
|  Net cash provided by (used in) investing activities | 51.2 | (199.8) | (251.0) | NM |
|  Net cash (used in) provided by financing activities | (126.7) | 42.7 | 169.4 | NM |

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#### Six months ended June 30, 2024, compared to the six months ended June 30, 2025
Total cash, cash equivalents, restricted cash, and marketable security positions decreased $9.8 million or 3.0% from $323.4 million as of December 31, 2024 to $313.6 million as of June 30, 2025.

Net cash provided by operating activities increased $64.0 million or 82.1% from $78.0 million during the six months ended June 30, 2024 to $142.0 million during the six months ended June 30, 2025. The increase is attributable to changes in working capital accounts from the timing of collection of receivables and settlement of liabilities as well as an increase in income before income taxes.

Net cash provided by (used in) investing activities changed $251.0 million from $51.2 million net cash provided during the six months ended June 30, 2024 to $199.8 million net cash used during the six months ended June 30, 2025. The change is due to the purchase of $86.0 million in marketable securities, which is offset by the redemption of $125.3 million of marketable securities during the six months ended June 30, 2024, compared to the purchase of $94.2 million and the redemption of $92.5 million of marketable securities and investments during the six months ended June 30, 2025. Republic also sold six aircraft during the six months ended June 30, 2024 for proceeds of $82.2 million. Additionally, $127.8 million change is mainly due to the acquisition of one E175 regional aircraft during the six months ended June 30, 2024 compared to the acquisition of six E175 aircraft during the six months ended June 30, 2025.

Net cash (used in) provided by financing activities changed $169.4 million from $126.7 million net cash used during the six months ended June 30, 2024 to $42.7 million net cash provided during the six months ended June 30, 2025. During the six months ended June 30, 2024, Republic obtained new borrowings resulting in cash inflows of $28.5 million secured by the related aircraft and engines compared to new borrowings of $164.3 million during the six months ended June 30, 2025. This was offset by the accelerated payment and early debt extinguishment for aircraft-related notes of $36.2 million from the sale of six owned E175 aircraft during the six months ended June 30, 2024. The remaining change is due to increased debt payments.

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#### Year ended December 31, 2023 compared to the year ended December 31, 2024
The following table summarizes Republic's total cash and marketable securities as of December 31, 2023 and 2024, as well as its operating, investing, and financing cash flow activities for the years ended December 31, 2023 and 2024:

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| | | | | |
|:---|:---|:---|:---|:---|
| **(in millions)** | **2023** | **2024** | **$ Variance** | **% Variance** |
|  Cash, cash equivalents, and restricted cash | $113.5 | $131.9 | $18.4 | 16.2% |
|  Marketable securities | 249.8 | 191.5 | (58.3) | (23.3) |
|  Total | $363.3 | $323.4 | $(39.9) | (11.0)% |

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| | | | | |
|:---|:---|:---|:---|:---|
| **(in millions)** | **2023** | **2024** | **$ Variance** | **% Variance** |
|  Net cash provided by operating activities | $329.2 | $226.1 | $(103.1) | (31.3)% |
|  Net cash used in investing activities | (420.9) | (105.5) | 315.4 | (74.9) |
|  Net cash provided by (used in) financing activities | 107.1 | (102.2) | (209.3) | NM |

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During the year ended December 31, 2024, total cash, cash equivalents, restricted cash, and marketable security positions decreased $39.9 million, or 11.0%, from $363.3 million as of December 31, 2023 to $323.4 million as of December 31, 2024.

Net cash provided by operating activities decreased $103.1 million, or 31.3%, from $329.2 million during the year ended December 31, 2023 to $226.1 million during the year ended December 31, 2024. The decrease is attributable to the decrease in earnings excluding non-cash expenses, coupled with changes in working capital accounts from the timing of collection of receivables and settlement of liabilities when compared to the year ended December 31, 2023.

Net cash used in investing activities decreased $315.4 million, or 74.9% from $420.9 million net cash used during the year ended December 31, 2023 to $105.5 million net cash used during the year ended December 31, 2024. Republic purchased $282.8 million and redeemed $120.0 million in marketable securities and investments during the year ended December 31, 2023, compared to purchases of $187.3 million and redemptions of $255.3 million in marketable securities and investments during the year ended December 31, 2024. Additionally, Republic acquired 13 E175 regional aircraft during the year ended December 31, 2023, compared to the acquisition six E175 regional aircraft during the year ended December 31, 2024.

Net cash provided by (used in) financing activities changed $209.3 million from $107.1 million net cash provided for the year ended December 31, 2023 compared to $102.2 million net cash used for the year ended December 31, 2024. During the year ended December 31, 2023, Republic obtained secured borrowings resulting in cash inflows of $476.6 million, compared to obtaining secured borrowings resulting in cash inflows of $177.3 million during the year ended December 31, 2024. This was offset by the accelerated payment and early debt extinguishment for aircraft-related notes of $101.0 million during the year ended December 31, 2023, compared to the accelerated payment and early debt extinguishment for aircraft-related notes of $37.4 million during the year ended December 31, 2024.

#### Year ended December 31, 2022 compared to the year ended December 31, 2023

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| | | | | |
|:---|:---|:---|:---|:---|
| **(in millions)** | **2022** | **2023** | **$ Variance** | **% Variance** |
|  Cash, cash equivalents, and restricted cash | $98.1 | $113.5 | $15.4 | 15.7% |
|  Marketable securities | 83.9 | 249.8 | 165.9 | 197.7 |
|  Total | $182.0 | $363.3 | $181.3 | 99.6% |

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| | | | | |
|:---|:---|:---|:---|:---|
| **(in millions)** | **2022** | **2023** | **$ Variance** | **% Variance** |
|  Net cash provided by operating activities | $189.7 | $329.2 | $139.5 | 73.5% |
|  Net cash used in investing activities | (137.0) | (420.9) | (283.9) | NM |
|  Net cash (used in) provided by financing activities | (189.8) | 107.1 | 296.9 | NM |

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During the year ended December 31, 2023, total cash, cash equivalents, restricted cash, and marketable security positions increased $181.3 million or 99.6% to $363.3 million compared to $182.0 million as of December 31, 2022.

Net cash provided by operating activities increased $139.5 million or 73.5% from $189.7 million during the year ended December 31, 2022 to $329.2 million during the year ended December 31, 2023. The increase is attributable to changes in working capital accounts from the timing of collection of receivables and settlement of trade payables.

Net cash used in investing activities increased $283.9 million from $137.0 million net cash used during the year ended December 31, 2022 to $420.9 million net cash used during the year ended December 31, 2023. Republic purchased $98.9 million and redeemed $160.0 million in marketable securities and investments during the year ended December 31, 2022, compared to purchases of $282.8 million and redemptions of $120.0 million in marketable securities and investments during the year ended December 31, 2023. Additionally, Republic increased building costs by $102.2 million for the construction of its aviation campus and acquired 13 E175 regional aircraft during the year ended December 31, 2023, which is offset by the sale of six E175 aircraft.

Net cash (used in) provided by financing activities changed $296.9 million from $189.8 million used for the year ended December 31, 2022 to $107.1 million provided for the year ended December 31, 2023. During the year ended December 31, 2023, Republic obtained secured borrowings resulting in cash inflows of $476.6 million. This was offset by scheduled debt service payments and the accelerated payment and early debt extinguishment for secured aircraft borrowing notes of $101.0 million from the sale of six owned E175 aircraft during the year ended December 31, 2023.

#### Letters of Credit
As Republic enters new markets, increases the amount of maintenance space it leases, or adds leased aircraft, Republic is often required to provide airport authorities and lessors with letters of credit. Republic also provides letters of credit for its workers' compensation insurance, construction activities, and student loans. As of December 31, 2024 and June 30, 2025, Republic had cash collateralized letters of credit totaling $21.4 million. Cash collateralized against its letters of credit is recorded in restricted cash on Republic's consolidated balance sheets.

#### Aircraft and Other Leases
Republic's lease obligations consist of aircraft, spare engines, flight training equipment, terminal space, operating facilities, and office space, which expire through 2034. All of Republic's leases are classified as operating leases and finance leases with contractual terms extending up to nine years. For operating leases with terms greater than 12 months, Republic records an operating lease liability and the related right-of-use asset at the present value of remaining lease payments at the measurement date, taking into consideration rental escalation provisions, when applicable. Lease obligations expected to be paid within 12 months represent current maturities and are classified within the current portion of operating lease liabilities to Republic's consolidated balance sheets. Lease obligations with expected repayment extending beyond 12 months are recorded to operating lease liabilities—less current portion to Republic's consolidated balance sheets in Republic's accompanying consolidated financial statements. Republic records its finance lease assets, current liability, and noncurrent liability to property and other equipment, net, current portion of long-term debt and finance leases, and long-term debt and finance leases—less current portion, respectively. Amortization of the finance lease asset is recorded to depreciation and amortization expense. The interest component of the lease payment is recorded to interest expense. With the exception of its CPAs and some operating facilities, Republic does not separate lease and non-lease contractual components. Provisions for residual value guarantees are not material. See Note 4, *Leases*, in Republic's accompanying consolidated financial statements included elsewhere in this proxy statement/prospectus.

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##### [**Table of Contents**](#toc)
Components of operating and finance lease costs for the years ended December 31, 2022, 2023, and 2024, and the six months ended June 30, 2024 and 2025 are as follows:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Years Ended** | **Years Ended** | **Years Ended** | **Six Months Ended** | **Six Months Ended** |
| **(in millions)** | **December 31,<br>2022** | **December 31,<br>2023** | **December 31,<br>2024** | **June 30,<br>2024** | **June 30,<br>2025** |
|  Operating lease cost | $28.0 | $29.3 | $24.5 | $12.1 | $10.5 |
|  Finance lease cost <sup>(1)</sup> | 16.0 | 17.3 | 12.7 | 6.5 | 6.0 |
|  Variable and short-term lease cost | 4.3 | 2.8 | 2.8 | 1.5 | 1.6 |
|  Total lease cost | $48.3 | $49.4 | $40.0 | $20.1 | $18.1 |

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<sup>(1)</sup> Finance lease costs include depreciation and amortization costs and interest costs.

#### Off-Balance Sheet Arrangements
Republic has guaranteed certain obligations of LIFT Academy and certain third parties related to LIFT Academy. Expected losses from guaranteed obligations are derived from total commitments outstanding to third parties coupled with the probability of repayment. Total guaranteed obligations as of June 30, 2025 were $21.0 million. Losses expected to be incurred from guaranteed obligations were $7.4 million as of June 30, 2025.

#### Commitments and Obligations
From time to time, Republic enters into purchase commitments for future aircraft and engine deliveries. Republic regularly makes pre-delivery deposit payments ("PDP") to support aircraft and engines on order. PDPs are retained until scheduled aircraft or engine delivery occurs or when deposit amounts are no longer expected to be returned by the manufacturer. Interest costs associated with PDPs are capitalized as a portion of the overall historical cost of the related aircraft or engine and is depreciated over the estimated useful life of the asset. During the years ended December 31, 2022, 2023, 2024, and six months ended June 30, 2025, Republic recorded $0.5 million, $1.1 million, $1.6 million, and $1.2 million, respectively, in capitalized interest costs to property and other equipment, net, in Republic's consolidated balance sheets.

The following table sets forth Republic's future contractual obligations as of December 31, 2024:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Total** | **Less than<br>1 year** | **1 – 3 years** | **3 – 5 years** | **More than<br>5 years** |
|  Long-term debt obligations | $956.5 | $256.8 | $218.5 | $196.5 | $284.7 |
|  Interest on debt obligations <sup>(1)</sup> | 218.5 | 49.9 | 74.0 | 48.2 | 46.4 |
|  Operating lease obligations | 164.9 | 20.7 | 41.2 | 38.4 | 64.6 |
|  Finance lease obligations | 83.6 | 11.0 | 19.0 | 19.0 | 34.6 |
|  Aircraft and spare engines under purchase obligations | 1058.3 | 430.3 | 628.0 |  |  |
|  Aviation Campus purchase commitment | 52.6 | 48.9 | 3.7 |  |  |
|  Total | $2534.4 | $817.6 | $984.4 | $302.1 | $430.3 |

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<sup>(1)</sup> Interest calculated for fixed rate debt and estimated for variable rate debt based on current interest rates. 87.0% of Republic's debt is fixed rate debt. 

Republic has a commitment with Embraer to purchase 75 E175 aircraft, 35 of which were delivered and five of which were cancelled as of June 30, 2025. In April 2025, Republic and Embraer executed an amendment to the purchase agreement to conform to current economic conditions and extend the delivery schedule of certain committed aircraft. The remaining 35 aircraft are expected to be delivered between 2025 and 2028.

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##### [**Table of Contents**](#toc)
During the year ended December 31, 2023, Republic completed the initial phase of three phases of a new flight training campus and corporate headquarters in Carmel, Indiana (the "Aviation Campus"). The Aviation Campus includes a training center that will be used to perform substantially all of Republic's training activities for pilots, flight attendants, maintenance technicians, and dispatchers, and houses eight full motion simulators along with flat panel simulators, cabin trainers, and classrooms. Additionally, the Aviation Campus includes overnight accommodations that will be used exclusively by Republic's associates in training. During the year ended December 31, 2024, the second phase of the Aviation Campus was completed, including a parking garage. The third phase of construction for the Aviation Campus has commenced and is expected to be completed during the year ending December 31, 2025. During the years ended December 31, 2022, 2023, 2024, and six months ended June 30, 2025, Republic recorded $2.1 million, $1.3 million, $1.3 million, and $1.1 million respectively, in capitalized interest costs to property and other equipment, net, in Republic's consolidated balance sheets.

Republic has long-term agreements relating to its maintenance costs associated with engines, auxiliary power units ("APUs"), avionics, and other aircraft equipment. The following agreements comprise Republic's long-term maintenance agreements for various airframe and engine components as of June 30, 2025:

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| | |
|:---|:---|
| **Maintenance agreements** | **Contract termination** |
| Engines | December 2037 |
| APUs | December 2034 |
| Avionics | December 2029 |
| Wheels and brakes | September 2030 |

---

Certain fixed agreements include a guaranteed minimum payment amount based on flight hours, departures, or other measures. Aggregate payments under long-term maintenance agreements were $149.1 million, $150.8 million, and $149.4 million for the years ended December 31, 2022, 2023, and 2024, respectively, and $74.4 million for the six months ended June 30, 2025.

#### Taxes
Republic recorded income tax expense of $22.4 million, $33.2 million, $22.3 million, and $22.8 million during the years ended December 31, 2022, 2023, 2024, and the six months ended June 30, 2025, at an effective tax rate of 24.8%, 37.7%, 25.7%, and 26.1%, respectively. Republic utilizes Federal NOLs against its current period taxable income. Republic's NOL federal deferred tax assets are largely generated from the accelerated tax depreciation on aircraft and other significant asset acquisitions. Based on its expected utilization and expiration of its NOL deferred tax assets as well as anticipated aircraft deliveries, Republic does not expect to become a cash tax-paying entity for several years. See Note 12, *Income Taxes*, in Republic's accompanying consolidated financial statements included elsewhere in this proxy statement/prospectus.

The One Big Beautiful Bill Act, enacted on July 4, 2025, has introduced changes to the United States federal tax laws. Republic estimates that the new legislation will not have a material impact to its income tax expense and deferred tax balances.

#### Qualitative Disclosure About Market Risk
Republic's earnings and cash flows can be affected by changes in interest rates from interest expense on variable-rate debt instruments and interest income on marketable securities. The majority of Republic's long-term debt portfolio is currently protected from this risk as 87% of its debt is at a fixed rate. Debt related to payroll support programs are fixed rate for five years from date of issuance. The effect to interest expense from increased market interest rates would be offset by interest income available to Republic on its marketable securities, therefore having a minimal impact to its results of operations.

Republic currently intends to finance the acquisition of aircraft and the Aviation Campus through third-party leases or secured borrowings. Changes in prevailing market interest rates may impact the actual cost to obtain financing on these assets. To the extent that Republic places these aircraft in service under its CPAs, its reimbursement rates may not be adjusted to reflect any changes in underlying ownership costs.

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Republic has been and is subject to other market risks, including commodity price risk (such as, to a very limited extent, aircraft fuel prices); however, commodity price risks have not historically been material to its results of operations.

#### Inflation
Republic does not believe that inflation had a material effect on its business, financial condition, or results of operations in the past three years. If Republic's costs were to become subject to significant inflationary pressures, it may not be able to fully offset such higher costs through price increases. Republic's inability or failure to do so could adversely affect its business, financial condition, and results of operations.

#### Critical Accounting Policies and Estimates
The discussion and analysis of Republic's financial condition and results of operations are based upon its consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of these financial statements requires Republic to make estimates and judgments that affect the reported amount of assets and liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities at the date of its financial statements. Actual results may materially differ from these estimates under different assumptions and conditions.

Some of those estimates and judgments can be subjective and complex. Consequently, actual results could differ from those estimates. Republic considers an accounting estimate to be critical if: (i) the accounting estimate requires it to make assumptions about matters that are highly uncertain at the time the accounting estimate is made; and (ii) it reasonably could have used different estimates in the current period, or changes in these estimates are reasonably likely to occur from period to period as new information becomes available, and a change in these estimates would have a material impact on its financial condition, results of operations, or cash flows.

Republic continually evaluates the estimates and judgments used to prepare its consolidated financial statements. Its estimates are based on historical experience, information from third-party professionals, and various other assumptions that it believes are reasonable. There are other items within Republic's financial statements that require estimation but are not deemed critical based on the criteria above. Changes in estimates used in these and other items could have a material impact on Republic's financial statements in any one period.

Significant estimates include but are not limited to (i) estimated useful lives and residual values of aircraft and equipment and (ii) provision for income taxes. Actual results could materially differ from its initial estimates.

*Estimated useful lives and residual values of aircraft and equipment* — Republic records property and equipment at its historical cost, less accumulated depreciation, which is charged to expense on a straight-line basis over the estimated useful life of the related asset. Effective January 1, 2023, Republic's management updated the residual value of training aircraft used at LIFT Academy from 25.0% to 50.0% to more closely align with the market data impacting similar vintage aircraft. The impact to depreciation and amortization expense for the year ended December 31, 2023 was not material.

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| | | |
|:---|:---|:---|
| **Asset Class** | **Current Salvage Value Effective<br>January 1, 2023 (% Historical<br>Cost)** | **Previous Salvage Value Effective<br>December 31, 2022 and Prior<br>(Years)** |
|  Building |  |  |
|  Regional jet aircraft | 0.0% – 10.0% | 0.0% – 10.0% |
|  Training aircraft, engines, and flight equipment | 0.0% – 50.0% | 0.0% – 25.0% |
|  Office equipment and leasehold improvements |  |  |

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Additionally, effective January 1, 2024, Republic adjusted the estimated useful life of certain aircraft, rotable spare parts, and engines from 22.0 to 26.0 years to more closely align with market data impacting Republic's fleet usage pattern, including LLP. Estimated useful lives and residual values for each asset class are as follows:

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| | | |
|:---|:---|:---|
| **Asset Class** | **Current Useful Life Effective<br>January 1, 2024 (Years)** | **Previous Useful Life Effective<br>December 31, 2023 and Prior<br>(Years)** |
|  Building | 39.0 | 39.0 |
|  Regional jet aircraft | 26.0 | 22.0 |
|  Training aircraft, engines, and flight equipment | 10.0 – 26.0 | 10.0 – 22.0 |
|  Office equipment and leasehold improvements | 3.0 – 20.0 | 3.0 – 20.0 |

---

*Income taxes* — Republic has generated significant NOLs for U.S. federal income tax purposes primarily from accelerated depreciation on owned aircraft. As of June 30, 2025, Republic had estimated NOLs of approximately $260 million for U.S. federal income tax purposes, which begin to expire in 2025.

The future use of NOLs is limited to the extent that the utilization of deferred tax assets and other carry forwards becomes uncertain in future years. If such conditions exist, Republic will be required to record a valuation allowance for deferred tax assets not expected to be utilized at the time that it becomes more likely than not that it will generate sufficient taxable income to realize its NOL deferred tax assets and establish or adjust its valuation allowance if such conditions exist. In evaluating the likelihood of utilizing its net deferred income tax assets, significant judgments include Republic's recent history of profitability, forecasts of its taxable income trends, and future impacts of taxable temporary differences.

In contemplation of all positive and negative evidence, Republic concluded that it is more likely than not that certain of its federal and state NOL deferred income tax assets will not be realized. As of June 30, 2025, Republic's net deferred tax liability balance was $226.5 million, which includes a $36.4 million valuation allowance, primarily related to its NOLs with limited utilization available.

#### Recent Accounting Pronouncements
See Note 2, *Summary of Significant Accounting Policies*, to Republic's accompanying consolidated and condensed consolidated financial statements included elsewhere in this proxy statement/prospectus.

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#### MANAGEMENT FOLLOWING THE MERGER

#### Directors and Executive Officers
The following table sets forth the names, ages, and positions of each of the individuals who are expected to serve as executives and directors of the Surviving Corporation as of June 30, 2025.

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| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position** |
|  ***Executive Officers:*** |  |  |
|  David Grizzle | 71 | Chief Executive Officer and Chairman of the Board |
|  Matthew J. Koscal | 48 | President and Chief Commercial Officer |
|  Joseph P. Allman | 54 | Senior Vice President and Chief Financial Officer |
|  Paul K. Kinstedt | 64 | Senior Vice President and Chief Operating Officer |
|  Chad M. Pulley | 45 | Senior Vice President, General Counsel, and Secretary |
|  ***Non-Employee Directors:*** |  |  |
|  Ellen N. Artist | 69 | Director |
|  Glenn S. Johnson | 66 | Director |
|  Michael C. Lenz | 61 | Director |
|  Ruth Okediji | 56 | Director |
|  Barry W. Ridings | 73 | Director |
| James E. Sweetnam | 73 | Director |

---

There are no family relationships among any of the Surviving Corporation's executive officers and directors.

All of Mesa's current directors, other than Ellen N. Artist, are expected to resign from their positions as directors of Mesa, effective as of the Effective Time.

In February 2016, Republic voluntarily filed a petition under Chapter 11 of the U.S. Bankruptcy Code and on April 30, 2017, Republic emerged from bankruptcy. Messrs. Allman, Kinstedt, and Koscal served as executive officers of Republic at that time.

#### Executive Officers
**David Grizzle** was appointed Chief Executive Officer of Republic in July 2025 and has served as the Chairman of Republic's board of directors since May 2017 and as a member of Republic's nominating and corporate governance committee. Since 2013, Mr. Grizzle has engaged as an aviation consultant through his firm Dazzle Partners. Mr. Grizzle previously served as Chief Operating Officer of the FAA's Air Traffic Organization from 2011 to 2013 and as Chief Counsel of the FAA from 2009 to 2011. Prior to his time with the FAA, Mr. Grizzle was with Continental Airlines, Inc. and its affiliates for 22 years, retiring as the Senior Vice President of Customer Experience. In 2004, Mr. Grizzle served for 14 months with the U.S. Department of State in Kabul, Afghanistan as Attaché, Senior Advisor and Coordinator for Transportation and Infrastructure. Mr. Grizzle received an A.B. in Government from Harvard University and a J.D. from Harvard Law School.

**Matthew J. Koscal** has served as Republic's President and Chief Commercial Officer since April 2025, and previously served as Republic's Executive Vice President since 2022. Mr. Koscal joined Republic in April 2014 as Vice President of Human Resources. In 2015, he further assumed responsibility for labor relations and government affairs before serving as Senior Vice President and Chief Administrative Officer from 2016 to 2022. He has extensive experience creating value through commercial partnerships, leading complex negotiations and driving change initiatives. Mr. Koscal has been a leader for Republic's workforce development initiatives, including the launch of LIFT Academy and structuring the airline's strategic partnership with Cape Air in 2021. Mr. Koscal has also served as a director of Cape Air since June 2021. Before joining Republic, Mr. Koscal held various leadership positions in finance and commercial operations at Takeda Pharmaceutical Co., Roche

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Diagnostics Corporation, and Abbott Laboratories. Mr. Koscal earned his bachelor's degree in management from Purdue University and has completed executive training programs at the Wharton School of Executive Education and the Center for Creative Leadership.

**Joseph P. Allman** has served as Republic's Senior Vice President and Chief Financial Officer since September 2015. In his capacity as Chief Financial Officer, Mr. Allman also has leadership responsibility of Republic's supply chain and technology functions. Mr. Allman has extensive experience in aircraft financing and has an extensive background in the airline sector. Mr. Allman joined Republic in 2007 as Vice President and Corporate Controller and served as Vice President Finance Planning & Analysis and Treasurer from 2009 to 2015. Before joining Republic, Mr. Allman gained extensive experience applying his finance, accounting, and audit expertise to the transportation and utilities sectors at managing positions with Deloitte & Touche, LLP and London Witte Group LLC. Mr. Allman is a graduate of the U.S. Coast Guard Academy, where he earned a B.S. in management and subsequently served his active-duty commitment to the rank of Lieutenant.

**Paul K. Kinstedt** has served as Republic's Senior Vice President and Chief Operating Officer since May 2017. Mr. Kinstedt served as Republic's Senior Vice President of Operations and Acting Chief Operating Officer from 2015 to 2017 and as Vice President of Flight Operations from 2013 to 2015. From 2002 to 2013, Mr. Kinstedt served in roles as Vice President of System Operations Control and Director of Systems Operations Control for Chautauqua Airlines, one of Republic's former wholly owned subsidiaries. Mr. Kinstedt received his bachelor's degree in aviation science from Parks College of Saint Louis University and his M.B.A. degree from Illinois Benedictine College. He holds an aircraft dispatcher and commercial, multi-engine, and instrument pilot rating.

**Chad M. Pulley** has served as Republic's Senior Vice President, General Counsel, and Secretary since January 2022. Mr. Pulley joined Republic as Associate General Counsel in July 2018 and transitioned to the role of Vice President, General Counsel and Secretary in November 2019. Prior to joining Republic, Mr. Pulley was Director, Legal Affairs for Carrier Global Corporation's multi-billion-dollar North America Residential HVAC business. Mr. Pulley also served as Assistant General Counsel at Allegion plc and Corporate Counsel at Ingersoll-Rand plc. after starting his career as an associate at an Indianapolis law firm. Mr. Pulley earned his B.A. in Finance and Economics from Indiana University Indianapolis – Kelley School of Business and earned his J.D. from Indiana University Robert H. McKinney School of Law.

#### Non-Employee Directors
**Ellen N. Artist** has served as a member of Mesa's board of directors since 2011. Ms. Artist has more than 35 years of experience in aviation finance as a bankruptcy trustee, financial advisory, financial principal and commercial lender. Ms. Artist has served as Principal of ENA Advisors since July 2005. Ms. Artist led the out-of-court restructuring of lease and loan obligations for both Independence Air and American Airlines, Inc. During the course of her career, Ms. Artist has been involved in more than $10 billion in aviation, debt, equity, and lease placements. Ms. Artist was formerly a founding partner at both The Seabury Group, LLC, from 1996 to 2002, and Sky Works Capital, LLC, from 2002 to 2005, two investment banking boutiques specializing in aviation activities. Other areas of expertise for Ms. Artist include claims resolution, trust accounting, litigation, and interaction with counsel. Ms. Artist is a graduate of Northwestern University with a B.A. in Economics and received an M.B.A. with distinction from New York University specializing in Finance and Accounting.

**Glenn S. Johnson** has served as a member of Republic's board of directors since May 2017 and as a member of Republic's nominating and corporate governance committee as well as the Chairman of Republic's audit committee. Mr. Johnson served as President of Horizon Air Industries, Inc. from 2010 to 2014. Mr. Johnson also previously held various roles at Alaska Airlines Group, Inc. from 2003 to 2014, including as Executive Vice President Finance and Chief Information Officer from 2012 to 2014 and Executive Vice President Finance and Chief Financial Officer from 2008 to 2010. Mr. Johnson holds a B.B.A. in Business Administration and Accounting from University of Washington's Foster School of Business.

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**Michael C. Lenz** has served as a member of Republic's board of directors since May 2025. Mr. Lenz previously served in numerous financial roles at FedEx Corp. from 2005 to 2023, including Vice President of Finance, Senior Vice President, Treasurer, and Executive Vice President and Chief Financial Officer. Previously, Mr. Lenz held various roles at American Airlines from 1994 to 2005. Mr. Lenz serves as the Board Chairman of Methodist LeBonheur Healthcare and on the Board of Visitors for the Duke University Pratt School of Engineering. Mr. Lenz obtained both a B.S. in Electrical Engineering & Computer Science and an M.B.A. from Duke University.

**Ruth L. Okediji** has served as a member of Republic's board of directors since May 2023. Ms. Okediji has been a member of the faculty of Harvard Law School since 2017, where she currently serves as the Jeremiah Smith, Jr. Professor of Law and Co-Director of the Berkman Klein Center. While teaching as the Edith Gaylord Harper Presidential Professor of Law at the University of Oklahoma, a position she held from 1997 to 2002, Ms. Okediji served on the Oklahoma Public Employee Relations Board from 2002 to 2003 at the appointment of Governor Frank Keating. Her areas of expertise are labor and employee relations, technology regulation, and international data privacy. Ms. Okediji holds an LL.B. from University of Jos and an LLM and S.J.D. from Harvard Law School.

**Barry W. Ridings** has served as a member of Republic's board of directors since May 2017 and is the chairman of Republic's compensation committee. Mr. Ridings is a retired investment banker having spent nearly 50 years on Wall Street at Lazard Freres & Co. LLC where he held various roles from 1999 to 2015. Mr. Ridings serves as a director of Safehold Inc. (SAFE). Mr. Ridings is a board member of the Catholic Charities of the Archdiocese of New York. He is also a Senior Lecturer at the Cornell University Johnson Graduate School of Management. Mr. Ridings has an M.B.A. in Finance from Cornell University and a B.A. in Religion from Colgate University.

**James E. Sweetnam** has served as a member of Republic's board of directors since May 2017 and as a member of Republic's audit committee and nominating and corporate governance committee. Mr. Sweetnam was the former President and Chief Executive Officer of Dana Holding Corporation from 2009 to 2010 and Chief Executive Officer of the Truck Group at Eaton Corporation from 2001 to 2009. Mr. Sweetnam was in executive management at Cummins from 1987 to 1997, having served as Vice President, Cummins Engine Company and Group Managing Director of Holset Engineering Co. Ltd. Mr. Sweetnam currently serves as a Director of Aspen Aerogels Inc. and previously served as a board director at SunCoke Energy, Inc. from 2011 to 2021, where he was Chair of the compensation committee and Chair of the nominating and governance committee previous to that. He also served as a board director at Lubrizol Corporation, a specialty chemicals company, from 2007 to 2011 before it was acquired by Berkshire Hathaway. Mr. Sweetnam holds a B.S. from the United States Military Academy at West Point and an M.B.A. from Harvard Business School.

#### Composition of the Board following the Merger
After consummation of the Merger, the Surviving Corporation's business and affairs will be managed under the direction of a board of directors. The number of directors will be fixed by the board of directors, subject to the terms of the Surviving Corporation's amended and restated certificate of incorporation and amended and restated bylaws. The Surviving Corporation's board of directors will initially be fixed at seven members, consisting of one member designated by Mesa and six members designated by Republic.

Newly created directorships, resulting from any increase in the number of authorized directors, or any vacancy occurring on the Surviving Corporation's board of directors, may be filled only by a majority vote of the directors then in office, even if less than a quorum, or by the sole remaining director or, if there are no directors, by the stockholders at a duly called special meeting in accordance with the DGCL, and directors so chosen shall hold office until such director's successor shall have been duly elected and qualified. No decrease in the number of authorized directors shall shorten the term of any incumbent director.

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The restrictions imposed by the Surviving Corporation's amended and restated certificate of incorporation, federal law and DOT policy currently require that the Surviving Corporation's president and at least two-thirds of the members of the Surviving Corporation's Board and other managing officers be U.S. Citizens.

#### Director Independence
Of the foregoing directors named above, Ms. Artist, Mr. Johnson, Mr. Lenz, Ms. Okediji, Mr. Ridings, and Mr. Sweetnam are expected to qualify as "independent" under Nasdaq rules.

#### Background and Experience of Directors
When considering whether directors and nominees have the experience, qualifications, attributes, or skills, taken as a whole, to enable the Board to satisfy its oversight responsibilities effectively in light of the Surviving Corporation's business and structure, the Surviving Corporation's Board will focus primarily on each person's background and experience as reflected in the information discussed in each of the directors' individual biographies previously set forth. The Surviving Corporation believes that the nominated directors provide an appropriate mix of experience and skills relevant to the size and nature of its business. In particular, the members of the Board consider the following important characteristics, among others:

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Airline experience;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Labor experience;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Capital markets experience;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Government / public policy experience;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Financial acumen; | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Information technology / cybersecurity;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Compensation / human capital;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Strategy / mergers and acquisition;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Environmental health and safety; | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• CEO;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Academic / education;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Legal;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Integrated supply chain. |

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#### Board Committees of the Surviving Corporation Following the Merger
After the consummation of the Merger, the Surviving Corporation's Board will have an audit committee, a compensation committee and a nominating and corporate governance committee. The composition and responsibilities of each committee are described below. The Surviving Corporation's Board may also establish, from time to time, any other committees that it deems necessary or desirable. Members serve on these committees until their resignation or until otherwise determined by the Surviving Corporation's Board. At least two-thirds of the members of each of the audit committee, compensation committee, and corporate governance committee must be U.S. Citizens.

#### Audit Committee
The Surviving Corporation's audit committee (the "Audit Committee") is expected to consist of Glenn S. Johnson, Michael C. Lenz, and James E. Sweetnam. Glenn S. Johnson is expected to serve as the chair of the Audit Committee and is an audit committee financial expert within the meaning of Item 407(d) of Regulation S-K under the Securities Act. The Audit Committee will be responsible for, among other things:

• selecting and hiring the Surviving Corporation's auditors, and approving the audit and non-audit services to be performed by the Surviving Corporation's auditors;

• assisting the Surviving Corporation's Board in evaluating the qualifications, performance, and independence of the Surviving Corporation's auditors;

• assisting the Surviving Corporation's Board in monitoring the quality and integrity of Surviving Corporation's financial statements and accounting and financial reporting;

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• assisting the Surviving Corporation's Board in monitoring its compliance with legal and regulatory requirements;

• reviewing the adequacy and effectiveness of the Surviving Corporation's internal control over financial reporting processes;

• assisting the Surviving Corporation's Board in monitoring the performance of the Surviving Corporation's internal audit function;

• reviewing with management and the Surviving Corporation's auditors its annual and quarterly financial statements;

• oversee the organization's safety policies, practices, and programs, review and assess the effectiveness of the organization's risk management framework, monitor significant risks, review safety and risk management strategies, review reports on safety incidents, evaluate insurance coverage, monitor compliance with laws, stay informed about emerging safety trends, and provide regular reports and recommendations;

• establishing procedures for the receipt, retention, and treatment of complaints received by the Surviving Corporation regarding accounting, internal accounting controls, or auditing matters and the confidential, anonymous submission by the Surviving Corporation's employees of concerns regarding questionable accounting, or auditing matters; and

• preparing the Audit Committee report that the rules and regulations of the SEC require to be included in the Surviving Corporation's annual proxy statement.

Each member of the Audit Committee is expected to satisfy the applicable independence requirements under the Nasdaq listing standards and the independence standards of Rule 10A-3 of the Exchange Act.

#### Compensation Committee
The Surviving Corporation's compensation committee (the "Compensation Committee") is expected to consist of Michael C. Lenz, Ruth Okediji, and Barry W. Ridings, with Barry W. Ridings serving as chair. The Compensation Committee will be responsible for, among other things:

• reviewing and approving corporate goals and objectives relevant to the compensation of Surviving Corporation's CEO, evaluating Surviving Corporation's CEO's performance in light of those goals and objectives, and, either as a committee or together with the other independent directors (as directed by the Board), determining and approving Surviving Corporation's CEO's compensation level based on such evaluation;

• reviewing and approving, or making recommendations to the Board with respect to, the compensation of Surviving Corporation's other executive officers, including annual base salary, bonus, and equity-based incentives and other benefits;

• reviewing and recommending the compensation of Surviving Corporation's directors;

• reviewing and discussing annually with management Surviving Corporation's "Compensation Discussion and Analysis" disclosures required by SEC rules;

• preparing the compensation committee report required by the SEC to be included in Surviving Corporation's annual proxy statement; and

• reviewing and making recommendations with respect to Surviving Corporation's equity compensation plans.

Each member of the Compensation Committee is expected to satisfy the applicable independence requirements under the Nasdaq listing standards and the independence standards of Rule 10C-1 of the Exchange Act.

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#### Nominating and Corporate Governance Committee
The Surviving Corporation expects that its nominating and corporate governance committee (the "Nominating and Corporate Governance Committee") will consist of , , and , with serving as chair. The Nominating and Corporate Governance Committee will be responsible for, among other things:

• assisting the Board in identifying prospective director nominees and recommending nominees to the Board;

• overseeing the evaluation of the Board and management;

• reviewing developments in corporate governance practices and developing and recommending a set of corporate governance guidelines; and

• recommending members for each committee of the Board.

#### Compensation Committee Interlocks and Insider Participation
None of the Surviving Corporation's executive officers currently serve, or have served during the last completed fiscal year, as a member of the board of directors or compensation committee (or other committee performing equivalent functions) of any entity that has one or more executive officers that are expected to serve as a member of the Surviving Corporation's Board or Compensation Committee. None of the expected members of the Compensation Committee will be one of the Surviving Corporation's executive officers or employees.

#### Risk Oversight and Cybersecurity
Effective risk oversight and cybersecurity are important priorities of the Board. Because risks are considered in virtually every business decision, the Board discusses risk throughout the year generally or in connection with specific proposed actions. The Board's approach to risk oversight and cybersecurity includes understanding the critical risks in the Surviving Corporation's business and strategy, evaluating the Surviving Corporation's risk management and cybersecurity processes, allocating responsibilities for risk oversight and cybersecurity among the full Board, and fostering an appropriate culture of integrity and compliance with legal responsibilities. The Audit Committee has specific oversight and heightened focus on risk management and cybersecurity and regularly reports to the full Board with respect to these topics.

#### Code of Ethics
The Surviving Corporation intends to adopt a new Code of Business Conduct and Ethics that applies to all of the Surviving Corporation's officers, directors, and employees, including the Surviving Corporation's principal executive officer, principal financial officer, principal accounting officer and controller, or persons performing similar functions, which will be posted on the Surviving Corporation's website. The Surviving Corporation's Code of Business Conduct and Ethics is a "code of ethics," as defined in Item 406(b) of Regulation S-K. The Surviving Corporation will make any legally required disclosures regarding amendments to, or waivers of, provisions of code of ethics on its website. The information contained on, or accessible from, the Surviving Corporation's website is not part of this prospectus by reference or otherwise.

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#### CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS OF THE SURVIVING CORPORATION
*The agreements described in this section, or forms of such agreements as they will be in effect at the time of the consummation of the Merger, are filed as exhibits to the registration statement of which this proxy statement/ prospectus forms a part, and the following descriptions are qualified by reference thereto.* 

In addition to the compensation arrangements, including employment, termination of employment, and change in control arrangements, with Republic's and Mesa's directors and executive officers, including those in the sections titled "*Management Following the Merger*," "*Republic Executive Compensation*" and "*The Merger*," the following is a description of each transaction involving Mesa since October 1, 2021, each transaction involving Republic since January 1, 2022 and each currently proposed transaction in which:

• either Republic or Mesa has been or is to be a participant;

• the amounts involved exceeded or will exceed the lesser of $120,000 and 1% of the average of Republic's total assets at year-end for the last two completed fiscal years, as applicable; and

• in the case of Mesa, any of Mesa's directors, executive officers or holders of more than 5% of Mesa's capital stock, or an affiliate or immediate family member of the foregoing persons, had or will have a direct or indirect material interest; and in the case of Republic or any of Republic's directors, executive officers who will become directors or executive officers of the Surviving Corporation, or holders of more than 5% of Republic's capital stock who will become holders of more than 5% of the Surviving Corporation's capital stock, or an affiliate or immediate family member of the foregoing persons, had or will have a direct or indirect material interest.

#### Mesa Transactions
Mesa's board of directors has a written policy and procedures for review and approval of transactions involving Mesa and "related persons" (which includes Mesa's directors and executive officers or their immediate family members, or shareholders and their immediate family members owning 5% or more of Mesa common stock). The policy applies to any transaction in which Mesa is a participant and any related person that has a direct or indirect material interest, excluding transactions: (a) involving payment or reimbursement of expenses of the related person incurred in the ordinary course of the related person's service as a director or officer of Mesa; (b) where the financial or compensatory arrangements are approved or ratified by Mesa's board of directors; (c) where the related person's interest arises (i) only from such person's position as a director of a corporation or organization which is a party to the transaction; (ii) only from such person's direct or indirect ownership of less than a 10% equity interest in another person (other than a partnership, limited liability company, trust, or similar entity) that is a party to the transaction; or (iii) from both such position and such ownership; (d) where the related person's interest arises only from the ownership of a class of equity securities of Mesa and all holders of that class receive the same benefits on a pro rata basis; and (e) where an immediate family member's interest arises from his or her status as an employee of a firm, corporation, or other entity for which he or she is not also an officer, director, general partner, or principal.

Mesa's Audit Committee reviews and approves in advance all related person transactions. In determining whether to approve a related person transaction, Mesa's Audit Committee looks to whether the related person transaction is on terms and conditions no less favorable to Mesa than may reasonably be expected in arm's-length transactions with unrelated parties. Mesa's Audit Committee will also consider such other factors as it may determine under the circumstances of a particular transaction.

Mesa's Audit Committee is responsible for reviewing the material facts of all related person transactions, subject to the exceptions described above. Mesa's Audit Committee will either approve or disapprove the entry into the related person transaction. If advance approval is not feasible, the transaction will be considered and, if

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Mesa's Audit Committee determines it to be appropriate, ratified at Mesa's Audit Committee's next regularly scheduled meeting. In determining whether to approve or ratify a transaction with a related person, Mesa's Audit Committee will consider, among other factors that it determines to be appropriate, whether the transaction is on terms no less favorable than terms generally available to an unaffiliated third party under the same or similar circumstances and the extent of the related person's interest in the transaction. Information relating to Mesa's transactions with related persons is set forth immediately below.

Due to the nature of Mesa's business, Mesa regularly transacts with its major partners, United Airlines and, formerly, American Airlines, in the ordinary course of business. Related person transactions are derived from passenger service under Mesa's CPA with United Airlines and, formerly, its CPA with American Airlines. Mesa is also a party to a Second Amended and Restated Credit and Guaranty Agreement, as amended, pursuant to which Mesa has borrowed funds from United Airlines.

Except as set forth in the immediately preceding paragraph, since the beginning of the fiscal year ended September 30, 2024, and since the beginning of the fiscal year ended September 30, 2023, Mesa had no transactions pursuant to which Mesa was a participant in which the amount involved exceeded or will exceed $120,000, and in which any of Mesa's directors, executive officers, or holders of more than 5% of Mesa capital stock, or any member of the immediate family of the foregoing persons, had or will have a direct or indirect material interest.

#### Republic Transactions

#### Transactions with Republic's Principal Stockholders
Due to the nature of Republic's business, Republic regularly transacts with its Partners and Embraer in the ordinary course of business. Related person transactions are derived from passenger service under Republic's CPAs, certain aircraft leasing arrangements and aircraft maintenance activities. For a description of the CPAs with Republic's Partners, see "*Republic's Business—Capacity Purchase Agreements with Republic's Partners*" and for a discussion of the revenues generated under these CPAs, see "*Republic Management's Discussion and Analysis of Financial Condition and Results of Operations—Overview*."

In addition, Republic makes aircraft, inventory, and rotable spare part purchases from Embraer, a related party. For a description of Republic's commitments and obligations with Embraer, see "*Republic Management's Discussion and Analysis of Financial Condition and Results of Operations—Commitments and Obligations*" and "*Republic's Business—Flight Equipment*."

Substantially all of Republic's revenues are derived from related parties during the years ended December 31, 2022, 2023, and 2024 and for the six months ended June 30, 2024 and 2025. Operating expenses incurred relate to interrupted trip expenses, maintenance expense, and employee benefits, among others. Amounts included in Republic's consolidated balance sheets pertaining to related person transactions as of December 31, 2023 and 2024 and the unaudited condensed consolidated balance sheet as of June 30, 2025 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Condensed Consolidated Balance Sheets (in millions)** | **As of December 31,** | **As of December 31,** | **As of June 30,** |
| **Condensed Consolidated Balance Sheets (in millions)** | **2023** | **2024** | **2025** |
|  Receivables | $22.8 | $41.9 | $52.9 |
|  Other non-current assets | 25.2 | 35.0 | 32.2 |
|  Accounts payable and accrued liabilities | 10.8 | 9.9 | 20.1 |
|  Other non-current liabilities | 7.4 | 41.8 | 51.1 |

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Amounts included in Republic's consolidated statements of operations pertaining to related person transactions for the years ended December 31, 2022, 2023, and 2024 and the unaudited condensed consolidated statements of operations for the six months ended June 30, 2024 and 2025 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Condensed Consolidated Statements of Operations (in millions)** | **Year Ended**<br>**December 31,** | **Year Ended**<br>**December 31,** | **Year Ended**<br>**December 31,** | **Six Months**<br>**Ended June 30,** | **Six Months**<br>**Ended June 30,** |
| **Condensed Consolidated Statements of Operations (in millions)** | **2022** | **2023** | **2024** | **2024** | **2025** |
|  Revenues | $1320.8 | $1417.3 | $1454.5 | $704.4 | $788.7 |
|  Maintenance and repair | 26.8 | 31.2 | 43.2 | 21.5 | 18.4 |
|  Other operating expenses | 1.6 | (9.8) | (0.3) | 1.3 | 0.8 |

---

In addition, Republic made aircraft, pre-delivery deposit payments, inventory, and rotable spare part purchases from Republic's original equipment manufacturer, a related party, of $102.0 million, $294.8 million, and $168.2 million during the years ended December 31, 2022, 2023 and 2024, respectively, and $38.1 million and $148.8 million during the six months ended June 30, 2024 and 2025, respectively.

#### Three Party Agreement
On April 4, 2025, concurrently with the execution and delivery of the Merger Agreement, Mesa, Republic, and United Airlines, among other parties, entered into the Three Party Agreement, pursuant to which, among other things: (i) Mesa will take certain actions at or prior to the Closing to dispose of certain assets, extinguish certain liabilities and effectuate certain related transactions; (ii) United Airlines will take certain actions at or prior to the Closing to facilitate Mesa's actions in the foregoing clause (i); (iii) Mesa, immediately following the Effective Time, will conduct the Escrow Issuance; and (iv) United Airlines will reimburse the Surviving Corporation for certain costs and expenses.

Concurrently with the execution and delivery of the Merger Agreement, Republic, and United Airlines entered into the CPA Side Letter which, among other things, provides for the respective obligations of United Arlines and Mesa to execute and deliver to each other, effective as of immediately following the Effective Time, the Go-Forward CPA.

For a more complete description of the Three Party Agreement, see "*Agreements Related to the Merger – Three Party Agreement.*"

#### Registration Rights Agreement
In connection with the Merger, Republic entered into a Registration Rights Agreement with the Major Shareholders, which will become effective upon the Closing and provide for customary "demand" registrations and "piggyback" registration rights. The Registration Rights Agreement also will provide that Republic will pay certain expenses relating to such registrations and indemnify the registration rights holders against (or make contributions in respect of) certain liabilities which may arise under the Securities Act. The Registration Rights Agreement will also contain a lock up provision whereby the Major Shareholders agree with Republic, subject to certain customary exceptions, not to dispose of any shares of the Surviving Corporation's common stock during the period beginning on the date of the Closing of the Merger and continuing to and including the date that is one hundred eighty (180) days after the date of the Closing of the Merger without the consent of Republic.

#### Statement of Policy Regarding Transactions with Related Persons
The Board of the Surviving Corporation expects to adopt into a new written statement of policy regarding transactions with related persons, which is referred to as the "related person policy." The Surviving Corporation's related person policy requires that a "related person" (as defined in paragraph (a) of Item 404 of Regulation S-K) must promptly disclose to its general counsel any "related person transaction" (defined as any transaction that is anticipated would be reportable by the Surviving Corporation under Item 404(a) of Regulation S-K in which it was or is to be a participant and the amount involved exceeds $120,000 and in which any related person had or will have a direct or indirect material interest) and all material facts with respect thereto. The general counsel will then promptly communicate that information to the Surviving Corporation's Board. No related person transaction

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entered into following this offering will be executed without the approval or ratification of the Surviving Corporation's Board or a duly authorized committee of its Board. It is expected to be the Surviving Corporation's policy that directors interested in a related person transaction will recuse themselves from any vote on a related person transaction in which they have an interest.

#### Indemnification of Directors and Officers
The Surviving Corporation's amended and restated bylaws will provide that the Surviving Corporation will indemnify its directors and officers to the fullest extent permitted by the DGCL, subject to limited exceptions. In addition, the Surviving Corporation's amended and restated certificate of incorporation will provide that its directors and officers will not be liable to the Surviving Corporation or its stockholders for monetary damages for breach of fiduciary duty as directors or officers to the fullest extent permitted by the DGCL. In connection with the consummation of the Merger, the Surviving Corporation expects to enter into indemnification agreements with each of its directors and certain executive officers, which will require the Surviving Corporation to indemnify those individuals to the fullest extent permitted under Delaware law against liabilities that may arise by reason of their service to the Surviving Corporation, and to advance expenses incurred as a result of any proceeding against them as to which they could be indemnified.

There is no pending litigation or proceeding naming any of the Surviving Corporation's directors or officers to which indemnification is being sought, and the Surviving Corporation is not aware of any pending or threatened litigation that may result in claims for indemnification by any director or officer.

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#### UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION
On April 4, 2025, Republic and Mesa (the "Parties") entered into the Merger Agreement pursuant to which Republic will merge with and into Mesa. Upon closing of the Merger, the Surviving Corporation, to be renamed *Republic Airways Holdings Inc*., will be led by executive leadership of Republic. Republic will designate six of seven non-employee directors to the Surviving Corporation Board, while Mesa will designate one of seven non-employee directors. The Current Report on Form 8-K, filed by Mesa with the SEC on April 8, 2025, sets forth certain additional information regarding the Merger.

Upon effectiveness of the Merger, stockholders of Republic will hold an approximate 88% interest in the Surviving Corporation, and stockholders of Mesa will hold an approximate 6% interest in the Surviving Corporation with the ability to acquire additional equity interests up to 6% of the Surviving Corporation, totaling up to approximately 12% in the aggregate, contingent upon Mesa's satisfaction of certain pre-closing criteria. Transactions contemplated by the Merger Agreement have not been consummated.

Concurrently with the execution and delivery of the Merger Agreement, Republic, Mesa, and United Airlines, among other parties, entered into the Three Party Agreement, pursuant to which, among other things: (i) Mesa will take certain actions at or prior to the closing of the Merger to dispose of certain assets, extinguish certain liabilities, and effectuate certain related transactions; (ii) United Airlines will take certain actions at or prior to the closing of the Merger to facilitate Mesa's actions in the foregoing clause (i); (iii) Mesa, following the Closing (and in all events immediately following the Effective Time), will conduct the Escrow Issuance; and (iv) United Airlines will reimburse the Surviving Corporation for certain specified costs and expenses. See Note 1*, Description of the Merger,* to the unaudited pro forma condensed combined financial information.

The following unaudited pro forma condensed combined financial information and accompanying notes are prepared for illustrative purposes and are presented as of June 30, 2025 and with respect to the statement of operations, for the year ended September 30, 2024, and for the nine months ended June 30, 2025 based on and derived from the historical financial information of Republic and Mesa. The unaudited pro forma condensed combined financial information gives effect to the Merger as described in the Merger Agreement as of and for the periods then ended. Contingent actions set forth in the Three Party Agreement pertaining to certain asset dispositions provide for the backstopped funding by United Airlines in the event a buyer is not found or market conditions preclude a sale or transfer of these assets, which establishes a minimum transfer of economic value as set forth in Note 1, *Description of the Merger*. The following unaudited pro forma condensed combined financial information gives effect to such contingencies based on the status of asset purchase agreements as of June 30, 2025 expected to be consummated through completion of the Merger. The resolution of such contingent matters could give rise to a materially different outcome.

The following unaudited pro forma condensed combined statements of operations and related notes thereto give effect to the Merger as if it had occurred on October 1, 2023. The unaudited pro forma condensed combined financial information assumes that Republic and Mesa stockholders approve the Merger. The unaudited pro forma condensed combined balance sheet as of June 30, 2025 is presented as if the Merger had occurred on June 30, 2025. The historical consolidated financial information of Republic and Mesa has been adjusted in the unaudited pro forma condensed combined financial information to give effect to adjustments to reflect the accounting for the transaction in accordance with GAAP. Adjustments to the unaudited pro forma condensed combined financial information are based on available information, reasonable estimates, and assumptions described in the accompanying notes hereto that management believes are reasonable under the circumstances. The unaudited pro forma condensed combined financial information does not include the effect of any potential capital transactions, such as a possible reverse stock split or capital raise, among others, as such events are incomplete, uncertain, and not a condition to closing of the Merger.

The unaudited pro forma condensed combined financial information has been prepared in accordance with Article 11 of Regulation S-X, *Pro Forma Financial Information*, as amended by the final rule, Release

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No. 33-10786 "*Amendments to Financial Disclosures about Acquired and Disposed Businesses*" in May 2020, which is herein referred to as "Article 11." Release No. 33-10786 replaces the existing pro forma adjustment criteria with simplified requirements to depict the accounting for the transaction ("Transaction Accounting Adjustments") and the option to present transaction effects that have occurred or are reasonably expected to occur ("Management's Adjustments"). It does not purport to present the results of operations or financial position, had the Merger occurred on the dates indicated, and is not intended to present the results of operations or financial position of the Surviving Corporation for any future period. In addition, the accompanying unaudited pro forma condensed combined statement of operations do not include any pro forma adjustments to reflect expected cost savings, synergies, or revenue enhancements which may be achievable as a result of the Merger.

The Merger is expected to be accounted for as a reverse acquisition under provisions of FASB ASC 805, *Business Combinations* using the acquisition method of accounting. Republic is designated the accounting acquiror and legal acquiree for financial reporting purposes on the basis that, immediately following consummation of the Merger, (i) stockholders of Republic will hold a substantial majority of the voting interest in the Surviving Corporation, (ii) Republic will designate six of seven non-employee director positions on the Surviving Corporation Board, and (iii) senior management of Republic will retain all named executive officer positions within the Surviving Corporation. The accounting for the Merger as a reverse acquisition results in the issuance and relinquishment of up to 12% of the pre-Merger voting interest in Republic as consideration in exchange for certain net assets of Mesa, which is measured at the acquisition date fair value of the consideration exchanged.

Upon closing of the Merger, the net assets of Mesa will be remeasured to fair value within the consolidated balance sheet of Republic, and the results of operations thereafter will be those of Republic. Republic expects to retain an approximate 88% equity interest in the Surviving Corporation. Currently, the analysis of the fair value of certain assets acquired and liabilities assumed is not available, and when completed, may differ materially from the results presented herein.

The unaudited pro forma condensed combined financial information should be read in conjunction with:

• The historical financial statements of Mesa as of September 30, 2024 and 2023 and for the years ended September 30, 2024, 2023, and 2022 filed in its annual report on Form 10-K with the SEC on May 14, 2025 and included elsewhere in this proxy statement/prospectus;

• Unaudited historical financial statements of Mesa as of June 30, 2025 and September 30, 2024 and for the nine months ended June 30, 2025 and 2024 filed in its quarterly report on Form 10-Q with the SEC on May 20, 2025 and included elsewhere in this proxy statement/prospectus;

• The historical financial statements of Republic as of December 31, 2023 and 2024 and for the years ended December 31, 2022, 2023, and 2024 included elsewhere in this proxy statement/prospectus;

• Unaudited historical financial statements of Republic as of December 31, 2024 and June 30, 2025 and for the six months ended June 30, 2024 and 2025 included elsewhere in this proxy statement/prospectus; and

• Other information related to Mesa and Republic contained in this proxy statement/prospectus, including the disclosures contained in the sections titled "*Mesa Management's Discussion and Analysis of Financial Condition and Results of Operations*" and "*Republic Management's Discussion and Analysis of Financial Condition and Results of Operations*."

The unaudited pro forma condensed combined financial information has been presented for illustrative purposes only and do not necessarily reflect what the combined financial condition or results of operations would have been had the Merger occurred on the dates indicated. Further, the unaudited pro forma condensed combined financial information may not be useful in predicting the future financial condition and results of operations of the Surviving Corporation. The actual financial position and results of operations may differ significantly from the

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pro forma amounts reflected herein due to a variety of factors. The unaudited pro forma adjustments represent management's estimates based on information available as of the date of these unaudited pro forma condensed combined financial information and are subject to change as additional information becomes available and further analyses are performed.

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#### UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET

#### AS OF JUNE 30, 2025

#### (In millions)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Historical** | **Historical** | **Transaction Accounting<br>Adjustments (Note 3)** | **Transaction Accounting<br>Adjustments (Note 3)** | **Transaction Accounting<br>Adjustments (Note 3)** |  | |
|  | **Republic** | **Mesa** | **Three Party<br>Agreement** |  | **Merger** |  |<br>**Pro Forma**<br>**Combined** |
|  **ASSETS** |  |  |  |  |  |  |  |
|  CURRENT ASSETS: |  |  |  |  |  |  |  |
|  Cash and cash equivalents | $95.4 | $42.5 | $(29.9) | **C, D** | $55.8 | **L** | $163.8 |
|  Marketable securities | 196.8 |  |  |  |  |  | 196.8 |
|  Inventory | 65.2 | 16.2 | (2.4) | **C** |  |  | 79.0 |
|  Other current assets | 107.0 | 14.4 |  |  |  |  | 121.4 |
|  Assets held for sale |  | 60.3 | (60.3) | **C** |  |  |  |
|  Total current assets | 464.4 | 133.4 | (92.6) |  | 55.8 |  | 561.0 |
|  Property and equipment, net | 2248.8 | 31.9 | (4.2) | **C** | (10.2) | **J** | 2266.3 |
|  Goodwill | 2.0 |  |  |  | 63.1 | **J** | 65.1 |
|  Deferred income taxes |  |  | 4.6 | **M** |  |  | 4.6 |
|  Other non-current assets | 195.9 | 13.3 |  |  |  |  | 209.2 |
|  **TOTAL ASSETS** | $2911.1 | $178.6 | $(92.2) |  | $108.7 |  | $3106.2 |
|  **LIABILITIES, MEZZANINE EQUITY, AND STOCKHOLDERS' EQUITY** |  |  |  |  |  |  |  |
|  CURRENT LIABILITIES: |  |  |  |  |  |  |  |
|  Current portion of long-term debt and finance leases | $234.6 | $84.7 | $(84.7) | **D** | $— |  | $234.6 |
|  Accrued expenses and other current liabilities | 235.3 | 89.9 | 4.0 | **A, B, D** | 16.4 | **G** | 345.6 |
|  Total current liabilities | 469.9 | 174.6 | (80.7) |  | 16.4 |  | 580.2 |
|  Long-term debt and finance leases – less current portion | 824.4 | 28.2 | (28.2) | **D** |  |  | 824.4 |
|  Other non-current liabilities | 207.2 | 16.5 | (7.8) | **B** |  |  | 215.9 |
|  Deferred income taxes | 226.5 | 0.6 | (0.6) | **M** |  |  | 226.5 |
|  Total liabilities | 1728.0 | 219.9 | (117.3) |  | 16.4 |  | 1847.0 |
|  COMMITMENTS AND CONTINGENCIES |  |  |  |  |  |  |  |
|  MEZZANINE EQUITY | 8.1 |  |  |  | (8.1) | **I** |  |
|  STOCKHOLDERS' EQUITY (DEFICIT) |  |  |  |  |  |  |  |
|  Common stock | $— | $273.2 | $— |  | $308.8 | **I, J, L** | $582.0 |
|  Additional paid-in capital | 478.0 |  |  |  | (478.0) | **I** |  |
|  Accumulated earnings (deficit) | 697.0 | (314.5) | 25.1 | **A, B, C, D, I, M** | 269.6 | **I, G** | 677.2 |
|  Total stockholders' equity (deficit) | 1175.0 | (41.3) | 25.1 |  | 100.4 |  | 1259.2 |
|  TOTAL LIABILITIES, MEZZANINE EQUITY, AND STOCKHOLDERS' EQUITY (DEFICIT) | $2911.1 | $178.6 | $(92.2) |  | $108.7 |  | $3106.2 |

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See accompanying notes to the unaudited pro forma condensed combined financial statements.

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#### UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENTS OF OPERATIONS

#### FOR THE NINE MONTHS ENDED JUNE 30, 2025

#### (In millions, except share and per share amounts)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Historical** | **Historical** | **Transaction Accounting<br>Adjustments (Note 3)** | **Transaction Accounting<br>Adjustments (Note 3)** | |
|  | **Republic** | **Mesa** | **Three Party<br>Agreement** | **Merger** |<br>**Pro Forma**<br>**Combined** |
|  REVENUES | $1185.2 | $290.8 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | $1476.0 |
|  OPERATING EXPENSES: |  |  |  |  |  |
|  Wages and benefits | 536.0 | 117.6 |  |  | 653.6 |
|  Aircraft and engine rent | 0.9 | 3.0 |  |  | 3.9 |
|  Maintenance and repair | 228.7 | 90.3 |  |  | 319.0 |
|  Depreciation and amortization | 91.2 | 17.3 |  | 0.5 **K** | 109.0 |
|  Asset impairment |  | 111.8 |  |  | 111.8 |
|  Other | 186.1 | 119.0 |  |  | 305.1 |
|  Total operating expenses | 1042.9 | 459.0 |  | 0.5 | 1502.4 |
|  OPERATING INCOME (LOSS) | 142.3 | (168.2) |  | (0.5) | (26.4) |
|  Total other (expense) income, net | (26.8) | 10.0 | 10.8 **E** |  | (6.0) |
|  INCOME (LOSS) BEFORE INCOME TAXES | 115.5 | (158.2) | 10.8 | (0.5) | (32.4) |
|  INCOME TAX EXPENSE (BENEFIT) | 29.0 | (5.9) | 2.5 **H** | (0.1) **H** | (25.5) |
|  NET INCOME (LOSS)  | $86.5 | $(152.3) | $8.3 | $(0.4) | $(57.9) |
|  Earnings per share: |  |  |  |  |  |
|  Basic and diluted earnings per share |  | $(3.68) |  |  | $(0.08) **N** |
|  Basic and diluted shares outstanding (in thousands) |  | 41368 |  |  | 681597 **N** |

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See accompanying notes to the unaudited pro forma condensed combined financial statements.

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#### UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENTS OF OPERATIONS

#### FOR THE YEAR ENDED SEPTEMBER 30, 2024

#### (In millions, except share and per share amounts)

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Historical** | **Historical** | **Transaction Accounting<br>Adjustments (Note 3)** | **Transaction Accounting<br>Adjustments (Note 3)** | **Transaction Accounting<br>Adjustments (Note 3)** | |
|  | **Republic** | **Mesa** | **Three Party<br>Agreement** | **Merger** |  |<br>**Pro<br>Forma**<br>**Combined** |
|  REVENUES | $1439.5 | $476.4 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |  | $1915.9 |
|  OPERATING EXPENSES: |  |  |  |  |  |  |
|  Wages and benefits | 651.1 | 199.2 | 10.5 **A** | 3.5 | **O** | 864.3 |
|  Aircraft and engine rent | 3.9 | 7.8 |  |  |  | 11.7 |
|  Maintenance and repair | 309.3 | 116.0 |  | 8.4 | **F** | 433.7 |
|  Depreciation and amortization | 128.9 | 40.0 |  | 1.7 | **K** | 170.6 |
|  Asset impairment |  | 73.7 |  |  |  | 73.7 |
|  Other | 215.0 | 105.5 |  | 16.4 | **G** | 336.9 |
|  Total operating expenses | 1308.2 | 542.2 | 10.5 | 30.0 |  | 1890.9 |
|  OPERATING INCOME (LOSS) | 131.3 | (65.8) | (10.5) | (30.0) |  | 25.0 |
|  Total other (expense) income, net | (60.3) | (24.7) | 20.4 **E** |  |  | (64.6) |
|  INCOME (LOSS) BEFORE INCOME TAXES | 71.0 | (90.5) | 9.9 | (30.0) |  | (39.6) |
|  INCOME TAX EXPENSE (BENEFIT) | 29.6 | 0.5 | 4.8 **H** | (3.3) | **H** | 31.6 |
|  NET INCOME (LOSS)  | $41.4 | $(91.0) | $5.1 | $(26.7) |  | $(71.2) |
|  Earnings per share: |  |  |  |  |  |  |
|  Basic and diluted earnings per share |  | $(2.21) |  |  |  | $(0.11) **N** |
|  Basic and diluted shares outstanding (in thousands) |  | 41137 |  |  |  | 675663 **N** |

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See accompanying notes to the unaudited pro forma condensed combined financial statements.

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#### NOTES TO THE UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION
**1.** **DESCRIPTION OF THE MERGER** 

On April 4, 2025, the Parties entered into the Merger Agreement pursuant to which Republic will merge with and into Mesa. Upon closing of the Merger, the Surviving Corporation to be renamed *Republic Airways Holdings Inc.*, will be led by executive leadership of Republic, and stockholders of Republic will collectively hold an approximate 88% interest in the Surviving Corporation and Mesa will hold an approximate 6% interest and, potentially, up to a 12% interest in the Surviving Corporation. Republic will designate six of seven non-employee directors to the Surviving Corporation Board, while Mesa will designate one of seven non-employee directors.

Further, at the Effective Time of the Merger, each share of Republic common stock, par value $0.001 per share, (excluding (i) shares to be cancelled pursuant to the Merger Agreement and (ii) any dissenting shares for which appraisal rights have been properly demanded in accordance with Delaware law) shall thereupon be converted into the right to receive 584.90 validly issued, fully paid and non-assessable shares of Mesa common stock par value $0.001 following the conversion of Mesa from a Nevada corporation to a Delaware corporation, with cash paid in lieu of any fractional shares. Immediately prior to the Effective Time, each outstanding RSU award in respect of shares of Republic common stock that has vested (or will become vested upon the Closing) will be cancelled and entitle the holder to shares of Republic common stock which will be converted into the right to receive 584.90 validly issued, fully paid, and non-assessable shares of Mesa common stock par value $0.001 following the conversion of Mesa from a Nevada corporation to a Delaware corporation. The Merger Consideration consists of all common stock and does not contemplate the exchange of cash consideration in connection with the Merger, except for cash paid in lieu of fractional shares. The Exchange Ratio gives effect to a post-Merger capitalization, which consists of an approximate 88% allocation to Republic pre-Merger stockholders, an approximate 6% allocation to Mesa pre-Merger stockholders with the incremental 6% allocation (the "Incremental Shares") available for repayment of certain Mesa liabilities as enumerated in the Three Party Agreement described below for the settlement of final working capital amounts and unsettled obligations of Mesa.

Further, the Parties concurrently entered into the Three Party Agreement jointly with United Airlines to give effect to actions which facilitate an orderly wind down and disposition of certain assets, extinguishment of certain liabilities, and conditions not subject to the business combination and exchange of Merger Consideration. The Three Party Agreement provides for, among other things, the following actions to be completed at or prior to the closing of the Merger:

(i) Termination of the United CPA among Mesa and United Airlines;

(ii) Disposition by sale of certain Canadair Regional Jet ("CRJ") aircraft, CRJ spare engines, an Embraer Regional Jet ("ERJ") spare engine, and Boeing B-737 spare inventories, the proceeds of which are yet to be agreed in final form;

(iii) Repayment of substantially all trade debts, long-term debts, and remaining liabilities of Mesa, utilizing the cash on hand and cash proceeds from asset sales set forth in item (ii) above. Upon depletion of Mesa cash applied for the full and final satisfaction of trade debts, long-term debts, and remaining liabilities, United Airlines shall (a) forgive the remaining obligations outstanding or (b) provide a one-time cash payment for funding at Merger closing sufficient to discharge any further amounts outstanding;

(iv) Transfer of all Mesa rights and obligations related to its warrant and aircraft purchase agreements with Archer Aviation Inc. related to investments in, development of, and commitment for forward purchase of eVTOL aircraft to a third party, however, assignable to United Airlines to the extent a transfer cannot be otherwise be completed;

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(v) Extension of certain CPA terms between Mesa and United Airlines, including enhanced/increased rates retrospectively from January 2025 and extending through March 2026. The extension of such terms is contingent upon successful completion of the Merger, and enhance the ability of Mesa to discharge those debts set forth in item (iii), and will be terminated pursuant to item (i) concurrently with closing of the Merger; and

(vi) Issuance of the Incremental Shares which constitute Mesa common stock, par value $0.001 following the conversion of Mesa from a Nevada corporation to a Delaware corporation, equivalent to approximately 6% of the issued and outstanding shares of Mesa common stock, which shares will (a) first become available to United Airlines in exchange for the forgiveness and repayment of certain debts and obligations of Mesa, referred to throughout this proxy statement/prospectus as the "Net Debt Amount;" (b) second, to the extent any of the remainder become available to the Surviving Corporation to repay certain liabilities, and (c) third, to the extent of any remainder, become available on a pro rata basis to stockholders of Mesa immediately prior to consummation of the Merger and merger-related agreements.

Further, subject to the closing of the Merger, Republic and United Airlines entered into a 10-year CPA to operate 60 E175 aircraft owned by United Airlines and operated by the Surviving Corporation.

The estimated number of shares that Mesa expects to issue giving effect to the Merger as Merger Consideration and in satisfaction of conditions set forth in the Three Party Agreement is as follows, giving effect to the Merger as if it were consummated on June 30, 2025. Amounts stated below do not give effect to any potential reverse stock split that may be deemed necessary by management and potentially effectuated prior to closing of the Merger.

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| | |
|:---|:---|
|  | **Shares** |
|  Mesa common stock outstanding as of June 30, 2025 | 41861544 |
|  Issuance of Mesa RSUs at vesting concurrent with closing of Merger | 940260 |
|  Total Mesa common stock<sup>(1)</sup> | 42801804 |
|  Republic common stock outstanding as of June 30, 2025 | 1004108 |
|  Shares of Republic RSUs issued and vested upon closing of Merger | 69163 |
|  Total Republic common stock<sup>(2)</sup> | 1073271 |
|  Exchange Ratio | 584.90 |
|  Resulting shares of Mesa common stock issued for Republic shares outstanding | 627756208 |
|  Shares of common stock of Mesa before the application of the Three Party Agreement | 670558012 |
|  Mesa common stock issued in accordance with the Three Party Agreement (6% of the total Mesa shares of common stock at closing of the Merger) | 42801804 |
|  Total shares of Mesa common stock at closing of Merger | 713359816 |

---

<sup>(1)</sup> Prior to issuance of shares to effectuate closing of the Merger

<sup>(2)</sup> Prior to exchange of shares to effectuate closing of the Merger

The following table depicts the ownership of the Surviving Corporation by Republic and Mesa on a pro forma basis as if the transaction had occurred on June 30, 2025, giving effect to the above share issuances:

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| | | | |
|:---|:---|:---|:---|
|  | **Republic** | **Mesa** | **Other <sup>(1)</sup>** |
|  Post-Merger ownership interest allocation | 88.0% | 6.0% | 6.0% |

---

<sup>(1)</sup> Relates to share issuances in satisfaction of certain liabilities of Mesa on behalf of Mesa by United Airlines as set forth in the Three Party Agreement and is subject to final reconciliation within 60 days of Merger closing referred to throughout this proxy statement/prospectus as the Net Debt Amount Adjustment Resolution Period. Actions taken by Mesa through closing of the Merger to generate funds necessary to extinguish net working capital deficiencies could materially affect the ownership interest allocation among Mesa and United Airlines. 

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Because, among other things, the number of shares of Mesa common stock issuable to Republic's stockholders is determined based on the capitalization of Republic and Mesa at closing of the Merger, Mesa stockholders cannot be assured of the exact number of shares that will be issued to or reserved for issuance to Republic stockholders when Mesa stockholders vote on the matters set forth in this proxy statement/prospectus. Mesa conducts a routine estimate of the Net Debt Amount monthly. Based on the estimated Net Debt Amount as of June 30, 2025, it is not probable that Escrow Shares will be issued to the Surviving Corporation. Accordingly, the ownership interests of the current shareholders of Republic in the Surviving Corporation is not expected to exceed 88%.

Under the reverse acquisition method of accounting for the Merger in accordance with ASC 805, *Business Combinations,* the fair value of purchase price consideration is reflected in the unaudited pro forma condensed combined financial information at the fair value of hypothetical stock issued to Mesa pre-Merger stockholders. Although Mesa is designated as the accounting acquiree and legal acquiror of the Merger, the fair value of Mesa's stock price is more reliably measurable than the fair value of the relinquished equity interest of Republic, designated as the accounting acquiror and legal acquiree, as Republic prior to the Merger is privately-held, is not exchange traded, with inputs of fair value derived from unobservable methods, as defined in ASC 820, *Fair Value Measurement.*

Merger Consideration is estimated as follows based on Mesa as the accounting acquiree and legal acquiror retaining at least an approximate 6% interest in the combined company. Mesa, on the basis of contingent actions as set forth in the Three Party Agreement, may acquire up to an additional 6% interest in the combined company with the ability to acquire Incremental Shares. It is probable that the Incremental Shares will be exhausted and fully allocated to (i) United Airlines in full or in partial satisfaction of the Net Debt Amount and (ii) Mesa pre-Merger stockholders. The resulting outcome of the allocation of Incremental Shares between Mesa and United Airlines does not impact presentation of the unaudited pro forma condensed combined financial information. In all likelihood, no Incremental Share will remain available for allocation to Republic and are allocable only as recourse in the event that there are material omissions or misstatements to the Net Debt Amount, as calculated at closing of the Merger. Republic, therefore, estimates it is probable that it will retain an 88% interest in the Surviving Corporation.

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| | |
|:---|:---|
| **Purchase price consideration (in millions, except share and per share amounts)** | |
|  Effective issuance of shares transferred to Mesa pre-Merger stockholders as of June 30, 2025 | 41861544 |
|  Issuance of Mesa RSUs at vesting concurrent with closing of the Merger | 940260 |
|  Mesa common stock issued in accordance with the Three Party Agreement <sup>(1)</sup> | 42801804 |
|  Total shares | 85603608 |
|  Price per share at fair value <sup>(2)</sup> | $1.08 |
|  Merger Consideration at fair value | $92.5 |

---

<sup>(1)</sup> Issued in connection with Escrow Shares as described elsewhere in this proxy statement/prospectus. Substantially all of the Incremental Shares are expected to be issued to United Airlines and Mesa pre-Merger stockholders, collectively, with no shares available to Republic pre-Merger stockholders based on the estimated Net Debt Amount that will be available at closing of the Merger. 

<sup>(2)</sup> Closing stock price of Mesa common stock as of August 11, 2025.

The final determination of the allocation of Incremental Shares among United Airlines, Mesa pre-Merger stockholders, and the Surviving Corporation will be completed in an expedient manner subsequent to the closing of the Merger and no later than 60 days following the Merger consummation (the Net Debt Adjustment Resolution Period). The final accounting will be determined based on the closing balance and calculated Net Debt Amount, as outlined in the Three Party Agreement.

The actual determination of consideration exchanged will be based on the fair market value of the combined company at closing as measured by the Mesa stock price upon closing of the Merger and could materially differ from the amounts reported herein. A 10% increase (decrease) to the Mesa price per share would increase (decrease) the purchase price per share by approximately $9.3 million.

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**2.** **BASIS OF PRO FORMA PRESENTATION** 

The accompanying unaudited pro forma condensed combined financial information includes the accounts of Republic and Mesa, and each of their subsidiaries and have been derived from the historical consolidated financial statements of Republic and Mesa. Certain financial statement line items included in the historical financial statements have been disaggregated, condensed, or reclassified to consistently conform to the historical presentation of Republic as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended**<br>**September 30, 2024** | **Year Ended**<br>**September 30, 2024** | **Nine Months Ended**<br>**June 30, 2025** | **Nine Months Ended**<br>**June 30, 2025** |
| **Reclassification Adjustments** | **Historical<br>Reported** | **Reclassified,**<br>**Pro Forma** | **Historical<br>Reported** | **Reclassified,<br>Pro Forma** |
|  Flight operations | $184.5 | $— | $108.1 | $— |
|  Wages and benefits |  | 199.2 |  | 117.6 |
|  Maintenance and repair | 184.7 | 116.0 | 131.5 | 90.3 |
|  Other  | 51.5 | 105.5 | 87.4 | 119.1 |
|  Total | $420.7 | $420.7 | $327.0 | $327.0 |

---

Certain financial statement line items contained in the historical consolidated financial statements of Republic and Mesa, as described in the notes to the unaudited pro forma condensed combined financial information, were condensed within the accompanying unaudited pro forma condensed combined financial information, as permitted by Article 11, as follows:

*Balance Sheet* 

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| | | |
|:---|:---|:---|
| **Pro Forma Condensed Combined Balance<br>Sheet Line Item** | **Historical Republic Balance Sheet Line<br>Items Included** | **Historical**<br> **Mesa Balance Sheet**<br> **Line Items Included** |
| Other current assets | Restricted cash<br> Receivables, net<br> Receivables – related parties<br> Prepaid expenses and other current assets | Restricted cash<br> Receivables, net<br> Prepaid expenses and other current assets |
| Other non-current assets | Operating lease right-of-use assets<br> Other non-current assets<br> Other non-current assets – related parties | Operating lease right-of-use assets<br> Lease and equipment deposits<br> Other assets |
| Accrued expenses and other current liabilities | Current portion of operating lease liabilities<br> Accounts payable<br> Accrued liabilities<br> Accounts payable and accrued liabilities – related parties | Current portion of deferred revenue<br> Current maturities of operating leases<br> Accounts payable<br> Accrued compensation<br> Customer deposits<br> Other accrued expenses |
| Other non-current liabilities | Operating lease liabilities – less current portion<br> Other non-current liabilities<br> Other non-current liabilities – related parties | Noncurrent operating lease liabilities<br> Deferred revenue, net of current portion<br> Other noncurrent liabilities |

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*Statement of Operations* 

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| | | |
|:---|:---|:---|
| **Pro Forma Condensed Combined Statement<br>of Operations Line Item** | **Historical**<br> **Republic Statement of Operations**<br> **Line Items Included** | **Historical**<br> **Mesa Statement of Operations**<br> **Line Items Included** |
| Other (expense) income, net | Investment income and other, net<br> Interest expense | Interest expense<br> Interest income<br> Gain on investments<br> Unrealized loss on investments, net<br> Other income (expense), net<br> Gain on debt forgiveness |

---

*Accounting Policy Review* 

Republic has conducted a preliminary review of the accounting policies of Mesa. Adjustments to conform the accounting policies of Republic and Mesa to the accounting policies expected to be adopted by the Surviving Corporation have been given effect in the unaudited pro forma condensed combined financial information. Final assessment of these matters could materially differ from those preliminarily presented herein.

Republic measures its fiscal year on a calendar basis ending on December 31, while Mesa operates for accounting and financial reporting purposes on a fiscal year ending on September 30. The unaudited pro forma condensed combined financial information was compiled to present Republic and Mesa concurrently on the fiscal reporting period of Mesa ending on September 30, whereby the historical financial records of Republic were adjusted to consistently conform.

Mesa expects to adopt the fiscal reporting period of Republic ending on December 31, prior to the closing date of its most recent fiscal year, September 30, 2025.

The following unaudited pro forma condensed combined balance sheet is derived from (i) the historical unaudited condensed consolidated balance sheet of Republic as of June 30, 2025 and (ii) the historical unaudited condensed consolidated balance sheet of Mesa as of June 30, 2025. The following unaudited pro forma condensed combined statements of operations is derived from (i) the historical audited consolidated financial statements of Republic for the years ended December 31, 2023 and 2024 and the historical unaudited condensed consolidated financial statements of Republic for the six months ended June 30, 2025, and (ii) the historical audited consolidated financial statements of Mesa for the year ended September 30, 2024 and the historical unaudited condensed consolidated financial statements of Mesa for the nine months ended June 30, 2025. The conforming periods of Republic are reconciled as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Republic** | **[1]**<br>**Year Ended<br>December 31,<br>2023** | **[2]**<br>**Nine Months<br>Ended**<br>**September 30,<br>2023** | **[3]**<br>**Nine Months<br>Ended**<br>**September 30,<br>2024** | **[1]-[2]+[3]**<br>**Year Ended<br>September 30,<br>2024** |
|  REVENUES | $1429.1 | $1078.8 | $1089.2 | $1439.5 |
|  NET INCOME | 54.8 | 56.0 | 42.6 | 41.4 |

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---

| | | | | |
|:---|:---|:---|:---|:---|
| **Republic** | **[4]**<br>**Year Ended<br>December 31,<br>2024** | **[5]**<br>**Nine Months<br>Ended**<br>**September 30,<br>2024** | **[6]**<br>**Six Months<br>Ended**<br>**June 30,<br>2025** | **[4]-[5]+[6]**<br>**Nine Months<br>Ended<br>June 30,<br>2025** |
|  REVENUES | $1474.0 | $1089.2 | $800.4 | $1185.2 |
|  NET INCOME | 64.6 | 42.6 | 64.5 | 86.5 |

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**3.** **PRO FORMA ADJUSTMENTS** 

The unaudited pro forma condensed combined financial information gives effect to the following adjustments that depict transaction accounting adjustments of the Merger. Management's Adjustments as defined in Article 11 under Regulation S-X of the SEC have not been elected for presentation herein.

The pro forma adjustments are based on preliminary estimates and could be subject to further revision. Amounts presented herein could materially change as additional information (including final transaction accounting) is obtained and after giving effect to any potential reverse stock split that may be effectuated prior to the closing of the Merger, additional offering proceeds obtained, and the resolution of contingencies from the completion or non-completion of pre-closing actions set forth in the Three Party Agreement.

In addition to the adjustments reflected in the pro forma financial statements, but not reflected herein, certain actions taken by Mesa prior to closing of the Merger, such as obtaining sale agreements at more favorable terms than presently available in the marketplace, including pricing terms, for the disposal of held for sale aircraft, engines, and spare parts could result in proceeds of up to an additional $10-15 million, which thereby reduce the expected required cash funding of United Airlines on a dollar-for-dollar basis. There is uncertainty inherent to such actions, as the expected sale price of certain planned aircraft, engine, and spare parts dispositions have not yet been agreed in final form. Asset dispositions of this nature, pursuant to the Three Party Agreement, shall be completed at or prior to closing of the Merger.

*Three Party Agreement* 

The pre-closing conditions set forth in the Three Party Agreement require that Mesa shall record to accrued expenses and other current assets, professional fees expected to be incurred in connection with the Merger, which consists primarily of adviser and legal fees. Such remaining unaccrued fees, estimated at $3.4 million, are not reflected as Transaction Adjustments to the unaudited pro forma condensed combined financial statements in order to comply with Article 11 of Regulation S-X of the SEC, as these represent transaction costs incurred by the accounting acquiree.

**A** – To record aggregate accrued compensation and wages and benefits expense not yet reflected in historical financial statements of $10.5 million related to Mesa executive compensation, including severance and consultancy arrangements, as needed, although Republic named executive officers ("NEO") will replace the equivalent NEO of Mesa, which results in an increase to accrued expenses and other current liabilities and an increase to accumulated earnings (deficit) in the unaudited pro forma condensed combined balance sheet.

**B** – To reflect the reversal of deferred revenue contract liabilities of $13.3 million associated with the pre-Merger CPA among Mesa and United Airlines upon termination of the CPA at consummation of the Merger as a decrease to accrued expenses and other current liabilities of $5.5 million; a decrease to other non-current liabilities of $7.8 million; and an increase to accumulated earnings (deficit) of $13.3 million in the unaudited pro forma condensed combined balance sheet.

**C** – To reflect the disposition of certain Mesa aircraft, equipment, and spare parts classified as Qualifying Agreements. Asset sale proceeds were determined based on Qualifying Agreements with third-party entities for the purchase of spare engines, airframes, and certain ERJ rotables that were in place at the time of issuance of this report. Proceeds for the sale of assets under Qualifying Agreements are used to repay certain notes payable (See Note E) and could materially differ from those presented herein, subject to the successful closing of such agreements prior to closing of the Merger.

Additionally, to reflect the disposition of certain CRJ and ERJ aircraft spare parts, including expendables inventory and rotable property and equipment, proceeds were recognized per a pre-determined price, as stipulated in the Three Party Agreement.

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The adjustments result in an increase to cash and cash equivalents of $51.1 million; a decrease to assets held for sale of $60.3 million, a decrease to property and equipment, net of $4.2 million, a decrease to inventory of $2.4 million, and a decrease accumulated earnings (deficit) of $15.9 million in the unaudited pro forma condensed combined balance sheet. Related to the notes payable, Mesa extinguished $81.0 million with cash on hand after proceeds from assets sales of $12.5 million. Should Mesa be unable to complete the Qualifying Agreements as contemplated prior to closing, any shortfall relating to the outstanding notes payable would be expected to be funded by United Airlines at closing in conjunction with the working capital shortfall. The expected cash funding by United Airlines has been determined based on the status of contingent matters as described in the Three Party Agreement as the contractual minimum economic value available to Mesa as of June 30, 2025.

**D** – To reflect the repayment of certain secured debt facilities of Mesa prior to closing of the Merger as a pre-closing condition as set forth in the Three Party Agreement. The related obligations total $113.0 million, net of deferred financing costs of $0.8 million, plus accrued interest of $1.0 million. The adjustment results in a decrease to the current portion of long-term debt and finance leases of $84.7 million, a decrease to accrued expenses and other current liabilities of $1.0 million, a decrease to long-term debt and finance leases – less current portion of $28.2 million and an increase to accumulated earnings (deficit) of $33.0 million from the gain on debt extinguishment.

**E** – To reflect the elimination of interest expense related to certain long-term debt owed by Mesa that will be extinguished as pre-closing conditions set forth in the Three Party Agreement. Interest expense eliminated during the periods includes $20.4 million for the year ended September 30, 2024 and $10.8 million for the nine months ended June 30, 2025.

*Merger* 

**F** – To record maintenance expense of $8.4 million to the year ended September 30, 2024 to reflect the recognition of expense related to deferred heavy maintenance of ERJ aircraft historically accounted for by Mesa under the deferral method to conform with the historical presentation and accounting policies of Republic under the direct expense method.

**G** – To reflect estimated Republic transaction-related costs of $16.4 million expected to be incurred after consummation of the Merger resulting in an increase to accrued expenses and other current liabilities and a decrease to accumulated earnings (deficit) in the unaudited pro forma condensed combined financial information and recognition of estimated Republic transaction-related costs of $16.4 million resulting in an increase to other operating expenses and a decrease to net income (loss).

**H** – To record the income tax effect of pro forma pre-tax adjustments, as applicable, based on the estimated statutory tax rate of 23.53% for Mesa and 24.75% for Republic. Adjustments result in a decrease to income tax expense (benefit) for tax deductible items, which include maintenance and repair expense, depreciation and amortization expense, and interest expense. Non-deductible items were excluded from the adjustments to income tax expense (benefit), which include executive compensation of $10.5 million and transaction costs of $16.4 million, for the year ended September 30, 2024.

**I** – To record the following equity transactions:

(i) Issuance of additional Republic RSU awards through the date of the consummation of the Merger.

(ii) Issuance and conversion of RSUs of Republic to common stock upon satisfaction of the underlying vesting condition of the awards, which is consummation of the Merger.

(iii) Issuance of Mesa common stock upon satisfaction of the underlying vesting condition of the awards, which is consummation of the Merger.

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(iv) Exchange of Republic common stock, par value $0.001, for common stock of Mesa at the presumed Exchange Ratio and reclassification of Republic additional paid-in capital upon conversion of securities having no par value.

(v) Issuance of Mesa common stock in exchange for the extinguishment of certain debts and other obligations of Mesa on behalf of Mesa as set forth in the Three Party Agreement. The expected cash funding of United Airlines is determined on the basis of the status of contingent matters as described in the Three Party Agreement as the contractual minimum economic value available to Mesa as of June 30, 2025.

(vi) Cumulative effects of pro forma balance sheet adjustments.

(vii) The elimination of Mesa historical equity after giving effect to pro forma presentation as described herein.

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Mezzanine<br>Equity** | **Mezzanine<br>Equity** | **Common Stock** | **Common Stock** | **Common Stock** | **Common Stock** | | | |
|  | **Republic** | **Republic** | **Republic** | **Republic** | **Mesa** | **Mesa** | | | |
| **(in millions, except<br>share amounts)** | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** |<br>**Additional<br>Paid-In<br>Capital** |<br>**Accumulated<br>Earnings<br>(Deficit)** |<br>**Total<br>Stockholders'<br>Equity** |
|  Issuance of Republic RSU awards through Merger closing<sup>(i)</sup> | 11727 | $3.4 |  | $— |  | $— | $— | $— | $— |
|  Conversion of Republic RSUs to Republic common stock upon closing of Merger (vesting condition)<sup>(ii)</sup> | (35710) | $(11.5) | 35710 |  |  |  | 11.5 |  | 11.5 |
|  Issuance of Mesa RSUs upon closing of Merger (vesting condition) <sup>(iii)</sup> |  |  |  |  | 940260 |  |  |  |  |
|  Exchange of Republic outstanding common stock for Mesa common stock<sup>(iv)</sup> |  |  | (1073271) |  | 627756208 | 489.5 | (489.5) |  |  |
|  Issuance of Mesa common stock for in exchange for satisfaction of certain liabilities <sup>(v)</sup> |  |  |  |  | 42801804 | 55.8 |  |  | 55.8 |
|  Cumulative effect of pro forma adjustments <sup>(vi)</sup> |  |  |  |  |  |  |  | 25.1 | 25.1 |
|  Elimination of Mesa historical equity <sup>(vii)</sup> |  |  |  |  |  | (236.5) |  | 269.6 | 33.1 |
|  Total Adjustment | (23983) | $(8.1) | (1037561) | $— | 671498272 | $308.8 | $(478.0) | $294.7 | $125.5 |

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**J** – To give effect to the preliminary purchase price allocation for consideration exchanged of $92.5 million. The preliminary purchase price allocation is not yet complete, and when complete, could result in a materially different outcome

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| | | | | |
|:---|:---|:---|:---|:---|
| **Mesa Historical Balance Sheet** | | **Transaction<br>Adjustments** | **Purchase<br>Accounting** | **Pro Forma<br>Adjusted** |
|  Net Assets Acquired: |  |  |  |  |
|  Cash | $42.5 | $25.9 | $— | $68.4 |
|  Inventory | 16.2 | (2.4) |  | 13.8 |
|  Other current assets | 14.4 |  |  | 14.4 |
|  Assets held for sale | 60.3 | (60.3) |  |  |
|  Property and equipment, net | 31.9 | (4.2) | (10.2) **a** | 17.5 |
|  Deferred income taxes |  | 4.6 |  | 4.6 |
|  Goodwill |  |  | 63.1 **b** | 63.1 |
|  Other non-current assets | 13.3 |  |  | 13.3 |
|  Total assets acquired | 178.6 | (36.4) | 52.9 | 195.1 |
|  Liabilities Assumed: |  |  |  |  |
|  Current portion of long-term debt and finance leases | $84.7 | $(84.7) | $— | $— |
|  Accounts payable | 50.1 |  |  | 50.1 |
|  Accruals & other current liabilities | 39.8 | 4.0 |  | 43.8 |
|  Long-term debt and finance leases—less current portion | 28.2 | (28.2) |  |  |
|  Other long-term liabilities | 16.5 | (7.8) |  | 8.7 |
|  Deferred income taxes | 0.6 | (0.6) |  |  |
|  Total liabilities assumed | 219.9 | (117.3) |  | 102.6 |
|  Net assets acquired | $(41.3) | $80.9 | $52.9 | $92.5 |

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**a** – Represents expected write-down to net book value of property and equipment, net, of ERJ rotables, spare parts, and training aircraft.

**b** – Represents the assignment of goodwill, which is the estimated excess of consideration exchanged in the Merger over the fair value of the net assets acquired in the Merger. The merger is expected to generate goodwill primarily from the acquisition of the assembled workforce of Mesa, which is composed largely of flight crews and technicians who are highly trained on the Mesa aircraft fleet. The assembled workforce is not designated as a separately identifiable intangible asset and is accordingly classified as goodwill. Republic expects to realize synergies from scaling of the fleet on a combined basis and elimination of duplicate overheads. Synergies of this nature have not been reflected in the unaudited pro forma condensed combined financial information.

**K** – To reflect additional depreciation and amortization expense of $0.5 million in the nine months ended June 30, 2025 and $1.7 million in the 12 months ended September 30, 2024 to conform with the historical accounting policy of Republic of ERJ aircraft on a straight-line basis over 26 years with a 10% salvage value compared to Mesa's policy which depreciates ERJ aircraft on a straight-line basis over 25 years with a 20% salvage value.

**L** – To reflect cash funding requirement at transaction closing by United Airlines to restore working capital deficit resulting in the exchange of cash for up to a 6% interest in the Surviving Corporation. Adjustment results in increase to cash and cash equivalents of $55.8 million and common stock, no par value. The expected cash funding by United Airlines is determined on the basis of the status of contingent matters as described in the Three Party Agreement as the contractual minimum economic value available to Mesa as of June 30, 2025.

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**N** – The pro forma combined basic and diluted loss per share have been adjusted to reflect the pro forma net loss for the year ended September 30, 2024 and the nine months ended June 30, 2025. In addition, the weighted average shares outstanding for the periods presented have been adjusted to give effect to the expected issuance of Mesa common stock in connection with the Merger as described in Note I, *Description of the Merger*, to the unaudited pro forma condensed combined financial information. As the Surviving Corporation is in a net loss position, any adjustment for potentially dilutive shares would be anti-dilutive, and as such basic and diluted loss per share are the same. The following table presents the calculation of the pro forma weighted average number of common stock outstanding for basic and diluted earnings per share computations.

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| | | |
|:---|:---|:---|
| **In thousands of shares** | **Year ended<br>September 30,<br>2024** | **Nine months<br>ended<br>June 30,<br>2025** |
|  Weighted average common shares outstanding, Mesa | 41137 | 41333 |
|  Weighted average RSUs (vested), Mesa <sup>(1)</sup> | 745 | 975 |
|  Weighted average common shares outstanding, Republic <sup>(2)</sup> | 586447 | 586732 |
|  Weighted average RSUs (vested), Republic <sup>(1)(2)</sup> | 5657 | 11165 |
|  Three Party Agreement issuance requirement <sup>(3)</sup> | 41677 | 41677 |
|  Total | 675663 | 681882 |

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<sup>(1)</sup> RSU reflects existing vesting conditions of specified agreements along with the effect of the Merger on those RSUs (if any) had it been consummated on October 1, 2023.

<sup>(2)</sup> Reflects outstanding shares of Republic common stock multiplied by the agreed upon Exchange Ratio of 584.90.

<sup>(3)</sup> Issuance of additional shares as required in the Three Party Agreement.

**O** – To reflect additional stock compensation expense from incremental RSUs issued to Republic management upon closing of the Merger. Total expense attributed to the additional RSUs is an estimated $3.5 million, recognized at the consummation of the transaction. As a result, the unaudited pro forma condensed combined financial information reflects $3.5 million of expense related to the year ended September 30, 2024.

*Other Items* 

The unaudited pro forma condensed combined pro forma financial information includes the result of actions taken by Mesa and Republic in historical periods concurrent with the ongoing negotiation, formation, and documentation of the Merger. These actions are non-recurring, one-time items which the Surviving Corporation does not expect to incur on an ongoing basis and are not representative of the operational results of the Surviving Corporation had the transaction been effective on October 1, 2023 and all pre-closing terms and conditions of the Merger were satisfied.

Non-recurring, one-time items include fees incurred directly in relation to the Merger and other one-time costs resulting from actions taken to satisfy pre-closing and closing conditions set forth in the Three Party Agreement. Asset impairment and the loss on sale of assets, net line items include charges related to the disposals of CRJ and ERJ airframes and related equipment. Transaction-specific, one-time professional fees include third party fees incurred in relation to the Merger and these other non-routine transactions.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year ended<br>September 30, 2024** | **Year ended<br>September 30, 2024** | **Nine months ended<br>June 30, 2025** | **Nine months ended<br>June 30, 2025** |
|  | **Republic** | **Mesa** | **Republic** | **Mesa** |
|  Asset impairment | $— | $73.7 | $— | $51.1 |
|  Loss on sale of assets, net |  | 2.1 |  | 118.8 |
|  Transaction-specific professional fees | 3.3 | 4.6 | 6.2 | 6.8 |
|  Other one-time adjustments, net |  | 2.4 |  | (21.6) |
|  Total | $3.3 | $82.8 | $6.2 | $155.1 |

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#### DESCRIPTION OF MESA CAPITAL STOCK
*The following summary of the terms of Mesa capital stock is based upon Mesa's Second Amended and Restated Articles of Incorporation (the "Mesa Charter") and Mesa's Second Amended and Restated Bylaws (the "Bylaws"). The summary is not complete, and is qualified by reference to the Mesa Charter and Mesa's Bylaws. Mesa encourages you to read the Mesa Charter, Bylaws and the applicable provisions of the NRS for additional information.* 

#### Authorized Shares of Capital Stock
Mesa's authorized capital stock consists of 125,000,000 shares of common stock, no par value per share, and 5,000,000 shares of preferred stock, no par value per share. As of June 30, 2025, there were 41,861,544 shares of common stock issued and outstanding and no shares of preferred stock issued and outstanding. The outstanding shares of Mesa common stock are duly authorized, validly issued, fully paid, and nonassessable.

#### Listing
Mesa common stock trades on Nasdaq under the symbol "MESA."

#### Voting Rights
Each holder of Mesa common stock is entitled to one vote for each share on all matters submitted to a vote of the shareholders, including the election of directors, subject to any exclusive voting or director designation rights of the holders of shares of any series of Mesa preferred stock that Mesa may designate in the future. The rights, preferences, and privileges that may be granted to holders of Mesa preferred stock, were Mesa to issue such preferred stock, could include dividend rights, conversion rights, voting rights, terms of redemption, liquidation preferences, sinking fund terms, and the number of shares constituting any series or the designation of such series, any or all of which may be greater than the rights of common stock. Mesa's issuance of preferred stock could adversely affect the voting power of holders of common stock and the likelihood that such holders will receive dividend payments and payments upon liquidation. In addition, the issuance of preferred stock could have the effect of delaying, deferring, or preventing a change of control of Mesa or other corporate action. Mesa has no present plan to issue any such shares of preferred stock, although Mesa's board of directors has the authority to do so without any action by Mesa's shareholders, and to fix the rights, preferences, privileges, and restrictions of such preferred stock. Mesa's shareholders do not have cumulative voting rights in the election of directors.

#### Dividend Rights
Holders of Mesa common stock are entitled to receive dividends, if any, as may be declared from time to time by the Mesa board of directors out of legally available funds, subject to preferences that may be applicable to any then-outstanding preferred stock and limitations under certain of Mesa's existing credit facilities and the NRS.

#### Rights upon Liquidation
In the event of Mesa's liquidation, dissolution, or winding up, holders of Mesa common stock will be entitled to the net assets legally available for distribution to shareholders after the payment of all of Mesa's debts and other liabilities and the satisfaction of any liquidation preference granted to the holders of any then-outstanding shares of preferred stock.

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#### Other Rights and Preferences
Except as noted in the following sentence, Mesa common stock has no sinking fund, redemption provisions, or preemptive, conversion, subscription, or exchange rights. Mesa has granted United Airlines the right to purchase its pro rata portion of any equity securities that Mesa may from time to time propose to issue or sell to any person, excluding with respect to equity securities issued in connection with (i) a grant to any existing or prospective consultants, employees, officers, or directors pursuant to any stock option, employee stock purchase or similar equity-based plans or other compensation agreement; (ii) any acquisition by Mesa or any of its subsidiaries of the stock, assets, properties, or business of any person; (iii) a stock split, stock dividend, or any similar recapitalization; or (iv) any issuance of warrants or other similar rights to purchase Mesa common stock to lenders or other institutional investors in any arm's length transaction providing debt financing to Mesa or any of its subsidiaries. Holders of Mesa common stock entitled to vote on a matter, other than with respect to the election of directors, may only take action at special or annual meetings of the shareholders where the number of votes cast in favor of the action exceeds the number of votes cast in opposition to the action, unless voting by classes or series is required for any action of the shareholders by the NRS, the Mesa Charter, or Mesa Bylaws, in which case the number of votes cast in favor of the action by the voting power of each such class or series must exceed the number of votes cast in opposition to the action by the voting power of each such class or series. Shareholders entitled to vote on the election of directors at a special or annual meeting of the shareholders at which a quorum is present may elect directors by a plurality of the votes cast. Mesa reserves the right at any time, and from time to time, to amend, alter, change, or repeal any provision contained in the Mesa Charter, with the exception of Article 11, in the manner, and subject to approval by shareholders as now or hereafter prescribed by statute, and all rights conferred upon holders of Mesa common stock are granted subject to this reservation.

#### Transfer Agent and Registrar
Computershare is the transfer agent and registrar for Mesa common stock and its telephone number is (212) 805-7100.

#### Certain Transfer Restrictions
The Mesa Charter imposes limits on certain transfers of Mesa's stock, which limits are intended to preserve Mesa's ability to use its net operating loss carryforwards. Specifically, the Mesa Charter prohibits the transfer of any shares of Mesa's capital stock that would result in (i) any person or entity owning 4.75% or more of Mesa's then-outstanding capital stock, or (ii) an increase in the percentage ownership of any person or entity owning 4.75% or more of Mesa's then-outstanding capital stock. These transfer restrictions expire upon the earliest of (i) the repeal of Section 382 of the Code or any successor statute if the Mesa board of directors determines that such restrictions are no longer necessary to preserve Mesa's ability to use its net operating loss carryforwards, (ii) the beginning of a fiscal year to which the Mesa board of directors determines that no net operating losses may be carried forward, or (iii) such other date as determined by the Mesa board of directors. These transfer restrictions apply to the beneficial owner of the shares of Mesa's capital stock. The clients of an investment advisor are treated as the beneficial owners of stock for this purpose if the clients have the right to receive dividends, if any, the power to acquire or dispose of the shares of Mesa's capital stock, and the right to proceeds from the sale of Mesa's capital stock. Certain transactions approved by the Mesa board of directors, such as mergers and consolidations meeting certain requirements set forth in the Mesa Charter, are exempt from the above-described transfer restrictions. The Mesa board of directors also has the ability to grant waivers, in its discretion, with respect to transfers of Mesa's stock that would otherwise be prohibited. The Mesa board of directors has agreed to waive the above-referenced restrictions in the Mesa Charter to those persons or entities that acquire shares of Mesa's common stock in excess of the 4.75% threshold in this offering. Any transfer of common stock in violation of these restrictions will be void and will be treated as if such transfer never occurred.

#### Limited Ownership and Voting by Foreign Owners
To comply with restrictions imposed by federal law on foreign ownership of U.S. airlines, the Mesa Charter restricts the ownership and voting of shares of Mesa common stock by people and entities who are not "citizens

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of the United States" as that term is defined in 49 U.S.C. § 40102(a). That statute defines "citizen of the United States" as, among other things, a U.S. corporation, of which the president and at least two-thirds of the board of directors and other managing officers are individuals who are citizens of the United States, which is under the actual control of citizens of the United States and in which at least 75% of the voting interest is owned or controlled by persons who are citizens of the United States. The Mesa Charter prohibits any non-U.S. citizen from owning or controlling more than 24.9% of the aggregate votes of all outstanding shares of Mesa common stock or 49.0% of the total number of outstanding shares of Mesa's capital stock. The restrictions imposed by the above-described ownership caps are applied to each non-U.S. citizen in reverse chronological order based on the date of registration on Mesa's foreign stock record. At no time may shares of Mesa's capital stock held by non-U.S. citizens be voted unless such shares are reflected on the foreign stock record. The voting rights of non-U.S. citizens having voting control over any shares of Mesa's capital stock are subject to automatic suspension to the extent required to ensure that Mesa is in compliance with applicable law. In the event any transfer or issuance of shares of Mesa's capital stock to a non-U.S. citizen would result in non-U.S. citizens owning more than the above-described cap amounts, such transfer or issuance will be void and of no effect.

#### Anti-Takeover Provisions of the Mesa Charter, Bylaws, and the NRS
Certain provisions of the NRS deter hostile takeovers. Specifically, NRS 78.411 through 78.444 prohibit a publicly held Nevada corporation from engaging in a "combination" with an "interested stockholder" for a period of two years following the date the person first became an interested shareholder, unless (with certain exceptions) the "combination" or the transaction by which the person became an interested shareholder is approved in a prescribed manner. Generally, a "combination" includes a merger, asset, or stock sale, or certain other transactions resulting in a financial benefit to the interested shareholder. Generally, an "interested stockholder" is a person who, together with affiliates and associates, beneficially owns or within two years prior to becoming an "interested shareholder" did own, 10% or more of a corporation's voting power. The Mesa Charter excludes Mesa from the restrictions imposed by these statutes.

Nevada's "acquisition of controlling interest" statutes, NRS 78.378 through 78.3793, contain provisions governing the acquisition of a controlling interest in certain Nevada corporations. These "control share" laws provide generally that any person that acquires a "controlling interest" in certain Nevada corporations may be denied voting rights, unless a majority of the disinterested stockholders of the corporation elects to restore such voting rights. These statutes provide that a person acquires a "controlling interest" whenever a person acquires shares of a subject corporation that, but for the application of these provisions of the NRS, would enable that person to exercise (1) one-fifth or more, but less than one-third, (2) one-third or more, but less than a majority or, (3) a majority or more, of all of the voting power of the corporation in the election of directors. Once an acquirer crosses one of these thresholds, shares that it acquired in the transaction taking it over the threshold and within the 90 days immediately preceding the date when the acquiring person acquired or offered to acquire a controlling interest become "control shares" to which the voting restrictions described above apply. The Mesa Charter provides that these statutes do not apply to Mesa or to any acquisition of Mesa common stock.

Section 78.139 of the NRS, to which Mesa is subject, provides that directors may resist a change or potential change in control if the directors, by majority vote of a quorum, determine that the change is opposed to, or not in, the best interests of the corporation.

In order to ensure that Mesa's CPAs are not subject to early termination, the Mesa Charter prohibits the sale, transfer, or assignment of Mesa's capital stock to the extent that such transfer would result in a change of control. The Mesa Charter also grants the Mesa board of directors the ability to establish one or more series of preferred stock (including convertible preferred stock), to determine, with respect to any series of preferred stock, the voting powers, designations, preferences, limitations, restrictions, and relative rights of each such series, and to authorize the issuance of shares of any such series, making it possible for the Mesa board of directors to issue preferred stock with voting or other rights or preferences that could impede the success of any attempt to change control of Mesa. These and other provisions may have the effect of deterring hostile takeovers or delaying changes in control or management of Mesa.

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#### COMPARISON OF RIGHTS OF HOLDERS OF MESA CAPITAL STOCK AND REPUBLIC CAPITAL STOCK
Mesa is incorporated under the laws of the State of Nevada and Republic is incorporated under the laws of the State of Delaware. Accordingly, pre-Delaware Conversion, the rights of Mesa stockholders and Republic stockholders are governed by the laws of the State of Nevada and the laws of State of Delaware, respectively. If the Delaware Conversion and the Merger are completed, Republic stockholders will become stockholders of Mesa-Delaware, and their rights will be governed by the DGCL, the Post-Conversion Charter, and Post-Conversion Bylaws (together with the Post-Conversion Charter, the "Mesa-Delaware Governance Documents").

As of the effectiveness of the Merger, Republic stockholders immediately prior to the Closing will receive Mesa common stock. Following the effectiveness of the Merger, the equityholders of Republic would own approximately 88% of the Surviving Corporation on a fully-diluted basis, subject to certain assumptions, and the existing stockholders equityholders of Mesa could own up to approximately 12% of the outstanding shares of the Surviving Corporation on a fully-diluted basis, subject to the outcome of the Escrow Issuance. The rights of the former Republic stockholders and the Mesa stockholders will thereafter be governed by the DGCL and by the Mesa-Delaware Governance Documents, subject to amendment.

The table included in the section titled "*Proposal No. 1 - The Merger Proposal - Rights of Mesa Stockholders Prior to and After the Conversion from the State of Nevada to the State of Delaware*" summarizes the material differences between the rights of Mesa stockholders under the Mesa Charter and Mesa's existing bylaws and the rights of Mesa stockholders under the Post-Conversion Charter, the Post-Conversion Bylaws, and Delaware law. It does not purport to be a complete description of those differences, or a complete description of the specific provisions referred to in this summary.

While Mesa and Republic believe that the summary table described above covers the material differences between the rights of Mesa stockholders before and after the Delaware Conversion, such summary tables may not contain all of the information that is important to you and therefore, the summary table below describes the material differences between the rights of Mesa stockholders after the Delaware Conversion and the rights of Republic stockholders before the Merger. Mesa has filed its existing articles of incorporation and bylaws with the SEC and will send copies to you without charge, upon your request. Please see the section titled "*Where You Can Find More Information*" in this proxy statement/prospectus.

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|  | **Rights of Current**<br> **Republic Stockholders** | **Rights of Mesa Stockholders**<br> **after the Delaware Conversion**<br> **and before the Merger** |
| **Authorized Capital Stock** | The Second Amended and Restated Certificate of Incorporation of Republic (as amended, the "Republic Charter") provides that the authorized capital stock of Republic consists of 1,100,000 shares of common stock, par value $0.001 per share. | The Post-Conversion Charter will provide that the authorized capital stock of Mesa-Delaware consists of 5,000,000,000 shares of common stock, par value $0.001 per share, and 500,000,000 shares of preferred stock, par value $0.001 per share. |
| **Number of Directors** | The number of directors that constitutes the entire Republic board of directors is fixed at seven (7) directors. Pursuant to the Fourth Amended and Restated Bylaws of Republic (as amended, the "Republic Bylaws"), all of the directors, except the Chief Executive Officer, shall be "Independent Directors" (as defined in the Republic Bylaws). | The number of directors will be fixed from time to time by resolution of the board of directors. During any period when the holders of any series of preferred stock, voting separately as a series or together with one or more series, have the right to elect additional directors, then upon commencement and for the duration of the period during |

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|  | **Rights of Current**<br> **Republic Stockholders** | **Rights of Mesa Stockholders**<br> **after the Delaware Conversion**<br> **and before the Merger** |
|  |  | which such right continues, such fixed number of directors, will automatically be increased by such specified number of directors. |
| **Limitations on Non-Citizens as Directors and Officers** | The Republic Charter and the Republic Bylaws do not restrict the ability of non-citizens to serve as directors or officers of Republic. | The Post-Conversion Bylaws and Post-Conversion Charter will provide that at least two-thirds of the members of the board of directors shall be "citizens of the United States" ("Citizens") as provided under Section 40102(a)(15) of Subtitle VII of Title 49 of the United States Code, as amended, in any similar legislation of the United States enacted in substitution or replacement therefor, and as interpreted by the DOT, its predecessors and successors, from time to time ("Applicable Transportation Law"), and the Chair shall be a Citizen for so long as required by Applicable Transportation Law. Further, at least two-thirds of the members of each committee or subcommittee of the board of directors, as well as the Chief Executive Officer and President and at least two-thirds of the other officers of Mesa-Delaware, shall be Citizens for so long as required by Applicable Transportation Law. |
| **Non-Citizen Voting and Ownership Limitation** | The Republic Charter subjects all shares of common stock of Republic to certain limitations. The Republic Charter requires that Republic or its transfer agent maintain a separate stock record (the "Foreign Stock Record") for purposes of registering shares of Republic common stock Owned or Controlled (as defined in the Republic Charter) by Non-Citizens (as defined in the Republic Charter). At any time that the number of shares of common stock of Republic registered in the Foreign Stock Record exceeds the Permitted Foreign Ownership (as defined in the Republic Charter), the voting rights of shares of common stock of Republic registered in the Foreign Stock Record shall automatically be suspended, in reverse chronological order of the dates | The Post-Conversion Charter will subject all shares of common and preferred stock of Mesa-Delaware to certain limitations. Persons or entities who fail to qualify as Citizens ("Non-Citizens"), shall not be entitled to own (beneficially or of record) and/or control more than (i) 24.9% of the aggregate voting power of all outstanding equity securities of Mesa-Delaware (the "Voting Cap Amount") or (ii) 49% of the total number of all outstanding shares of equity securities of Mesa-Delaware ("the Absolute Cap Amount", and together with the Voting Cap Amount, the "Cap Amounts"). Any transfer or issuance of equity securities to a Non-Citizen that would result in Non-Citizens owning (beneficially or of record) and/or controlling more than the Absolute Cap Amount, will be null and |

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|  | **Rights of Current**<br> **Republic Stockholders** | **Rights of Mesa Stockholders**<br> **after the Delaware Conversion**<br> **and before the Merger** |
|  | and times of registry of such shares in the Foreign Stock Record until the voting rights of a sufficient number thereof shall have been suspended so that the number of shares of common stock of Republic registered in the Foreign Stock Record that continues to have voting rights equals the greatest whole number that is less than or equal to the Permitted Foreign Ownership. If, while voting rights of any shares of common stock of Republic registered in the Foreign Stock Record are suspended, Republic determines that the voting power of the shares of common stock of Republic registered in the Foreign Stock Record becomes less than the Permitted Foreign Ownership, voting rights shall be reinstated for shares of common stock of Republic registered in the Foreign Stock Record as to which voting rights have been suspended in reverse order in which the voting rights thereof were suspended until the maximum number of such shares shall have voting rights without exceeding the Permitted Foreign Ownership. If any shares of common stock of Republic registered in the Foreign Stock Record for which voting rights have been suspended are transferred to a person or entity that is a Non-Citizen, the voting rights of such shares shall be automatically reinstated. | void ab initio and of no force or effect, and will not be recorded in the applicable foreign stock registry or the stock records of Mesa-Delaware. |
| **Stockholder Nominations and Proposals** | The Republic Bylaws provide that at an annual meeting of the stockholders of Republic, only such nomination of persons for election as directors and other such business shall be conducted as shall have been (i) specified in the notice of the meeting given by or at the direction of the Republic board of directors (or any committee thereof), (ii) properly brought before the meeting by or at the direction of the Republic board of directors (or any committee thereof) in accordance with the Republic Bylaws, or (iii) properly brought before the meeting by a stockholder who is a holder of record of Republic common | The Post-Conversion Bylaws will provide that, at an annual meeting of the stockholders, nominations of persons for the election of directors and the proposal of other business to be considered by the stockholders may be made only: (i) pursuant to the Surviving Corporation's notice of meeting (or any supplement thereto) delivered pursuant to the Post-Conversion Bylaws; (ii) by or at the direction of the board of directors or any authorized committee thereof; or (iii) by a stockholder who is a stockholder of record of the Surviving Corporation at the time such notice of meeting is delivered, who is entitled to |

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|  | **Rights of Current**<br> **Republic Stockholders** | **Rights of Mesa Stockholders**<br> **after the Delaware Conversion**<br> **and before the Merger** |
|  | stock at the time the notice of meeting is delivered, who is entitled to vote at the meeting and who complies with the notice and nomination procedures set forth in the Republic Bylaws. At a special meeting of the stockholders of Republic, only such business shall be conducted as shall have been brought before the meeting pursuant to Republic's notice of meeting. | vote at the meeting, and who complies with the notice and nomination procedures set forth in the Post-Conversion Bylaws. |
| **Directors' Terms of Office; Removal** | The Republic Charter provides that all directors shall hold office until their resignation, removal, or their successors shall have been elected and qualified.<br>The Republic Charter provides that any or all of the Republic directors may be removed at any time, with or without cause, by a vote of the Republic stockholders representing at least a majority of the voting power of all outstanding shares of Republic common stock, provided that if a director is removed by written consent of stockholders then a form of such written consent must be provided to Republic 6 business days prior to the effective date of such consent. Upon receipt of such consent, Republic shall use commercially reasonable efforts to deliver advance notice of such consent to other stockholders within one (1) business day. | The Post-Conversion Charter will provide that any director elected to fill a vacancy or newly created directorship shall hold office until the next annual meeting for the election of directors and until his or her successor are elected and qualified, or until his or her earlier death, resignation, retirement, disqualification, or removal.<br>Any or all of the directors of Mesa-Delaware (other than the directors elected exclusively by the holders of any series of preferred stock, voting separately as a series or together with one or more other such series, as the case may be) may be removed with or without cause at any time by the affirmative vote of a majority in voting power of all outstanding shares of stock of Mesa-Delaware entitled to vote thereon, voting together as a single class.<br>The Post-Conversion Charter will also provide that during any period when the holders of any series of preferred stock, voting separately as a series or together with one or more series, have the right to elect additional directors, then upon commencement and for the duration of the period during which such right continues, the holders of such preferred stock shall be entitled to elect the additional directors so provided for or fixed, and each such additional director shall serve until such director's successor shall have been duly elected and qualified, or until such director's right to hold such directorship terminates |

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|  | **Rights of Current**<br> **Republic Stockholders** | **Rights of Mesa Stockholders**<br> **after the Delaware Conversion**<br> **and before the Merger** |
|  |  | pursuant to said provisions, whichever occurs earlier, subject to his or her earlier death, resignation, retirement, disqualification, or removal. Notwithstanding any other provision of the Post-Conversion Charter, except as otherwise provided by the board of directors in the resolution or resolutions establishing such series, whenever the holders of any series of preferred stock having such right to elect additional directors are divested of such right pursuant to the provisions of such stock, the terms of office of all such additional directors elected by the holders of such stock, or elected to fill any vacancies resulting from the death, resignation, disqualification, or removal of such additional directors, shall forthwith terminate (in which case each, such director shall cease to be qualified, and shall cease to be, a director), and the total authorized number of directors of Mesa-Delaware shall automatically be reduced accordingly, but in all events not less than the number of directors fixed by the board of directors |
| **Annual Meetings of the Stockholders** | The Republic Bylaws provide that annual meetings of the stockholders shall be held at such place, within or without the state of Delaware (if any), on such date, and at such time as may be determined by the Republic board of directors and stated in the notice of the meeting.<br>At each annual meeting, in addition to the election of directors and such other business as may be properly brought before the meeting, the stockholders shall provide an advisory vote on the reasonableness of the compensation of the executive management of Republic. | The Post-Conversion Bylaws will provide that annual meetings of the stockholders may be held on such date, and at such time and place, if any, within or without the State of Delaware as may be designated from time to time by the board of directors. The board of directors may determine in its sole discretion that annual meetings of the stockholders shall not be held at any place, but may instead be held solely by means of remote communication as described in the Post-Conversion Bylaws in accordance with the DGCL. |
| **Cumulative Voting** | The Republic Charter does not provide for cumulative voting rights in the election of the Republic board of directors. Under the DGCL, cumulative voting is permitted only when authorized in the Republic Charter. | The Post-Conversion Charter does not provide for cumulative voting rights in the election of its directors. Under the DGCL, cumulative voting is permitted only when authorized in a company's certificate of incorporation. |

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|  | **Rights of Current**<br> **Republic Stockholders** | **Rights of Mesa Stockholders**<br> **after the Delaware Conversion**<br> **and before the Merger** |
| **Voting** | Pursuant to the Republic Charter, holders of shares of Republic common stock are entitled to one (1) vote per share for each share of Republic common stock held by such stockholder, subject to the provisions of the Republic Charter in respect of the suspension of voting rights of Foreign Stock (as defined in the Republic Charter). | Pursuant to the Post-Conversion Charter, holders of shares of Mesa-Delaware's common stock are entitled to one vote for each such share held of record by such holder on all matters on which stockholders generally are entitled to vote. |
| **Vacancies** | The Republic Charter provides that any vacancies in the board of directors and any newly created directorships may be filled by a vote of the stockholders representing at least a majority of the voting power of all outstanding shares of Republic common stock. The Republic Bylaws provide that if any vacancy occurs on the Republic board of directors or if any newly created directorship is created, then (i) if the vacancy occurs by reason of removal from office by the stockholders of Republic, the board of directors is required to provide a Vacancy Notice (as defined in the Republic Bylaws) to each stockholder of record within 5 days, or (ii) if a vacancy occurs for any other reason, the Republic board of directors (or the Nominating Committee of the Republic board of directors) will identify or recommend persons qualified as Independent Directors (as defined in the Republic Bylaws) to fill the vacancy or newly created directorship, subject to approval by a majority vote of the Republic board of directors and provide a Vacancy Notice to each stockholder of record of such vacancy in accordance with the Republic Bylaws. If the stockholders of Republic fail to deliver validly executed written consents within 30 days following the Vacancy Notice to elect any Independent Director to fill the vacancy or newly created directorship, the Republic board of directors will solicit names of candidates to fill any such vacancy from each stockholder that then beneficially owns 5% or more of the Republic common stock for 15 days | Vacancies and newly created directorships occurring on the Mesa-Delaware board of directors may be filled only by vote of a majority of the directors then in office, although less than a quorum, or by a sole remaining director and may not be filled by the stockholders. |

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|  | **Rights of Current**<br> **Republic Stockholders** |
|  | from the expiration of such 30-day period. Thereafter, the Republic board of directors (or the Nominating Committee) will send a Vacancy Nomination Notice (as defined in the Republic Bylaws) to the stockholders of the proposed nominee(s) within 5 days following the expiration of such 15-day period and then may proceed with a special meeting of stockholders of Republic or solicit written consents with respect to the appointment of a new director to fill any such vacancy. Any director so elected shall serve for the remainder of the full term of the other then-current Independent Directors and until his or her successor shall be elected and qualified. |
| **Election of Directors** | At each annual meeting of stockholders of Republic, the nominations of persons for election of directors shall be as recommend by the Republic board of directors or the Nominating Committee thereof, which nominees shall consist of the Chief Executive Officer and six (6) Independent Director (as defined in the Republic Bylaws) candidates each year and, following approval of such slate by a majority of the Republic board of directors, the Republic board of directors shall provide notice to each stockholder of record of the proposed nominees at least 45 days prior to the date of any such proposed annual meeting. If the stockholders fail to deliver executed written consents that are effective to elect the proposed slate within 15 days following the receipt of such notice, each stockholder that beneficially owns 5% or more of the Republic common stock may elect to provide an alternative candidate for one or more of the nominees proposed for election by the Republic board of directors or Nominating Committee (other than the Chief Executive Officer); provided, that any stockholder of record doing so must deliver notice to Republic at least 10 days prior to the proposed Each director shall be elected by the vote of the majority of the votes cast with respect to that director's election at any meeting for the election of directors at which a quorum is present, provided that if, as of the tenth (10<sup>th</sup>) day preceding the date Mesa-Delaware first mails its notice of meeting for such meeting to the stockholders, the number of nominees exceeds the number of directors to be elected, the directors shall be elected by the vote of a plurality of the votes cast. A "majority of the votes cast" shall mean that the number of votes cast "for" a director's election exceeds the number of votes cast "against" that director's election (with "abstentions" and "broker nonvotes" not counted as a vote cast either "for" or "against" that director's election). |

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| **Rights of Current**<br> **Republic Stockholders** | **Rights of Mesa Stockholders**<br> **after the Delaware Conversion**<br> **and before the Merger** |
| meeting date, and Republic must thereafter promptly deliver a copy of the same to each stockholder of record. If one or more of the proposed nominees are contested by a stockholder in accordance with the Republic Bylaws, the Republic board of directors may elect to replace any contested candidate with the alternative candidate recommended by a contesting stockholder. In the event all of the alternative candidates suggested by the stockholders are accepted, the Republic board of directors may proceed with the annual meeting. In the event the Republic board of directors does not accept all of the alternative candidates, the Republic board of directors shall provide prompt written notice to such contesting stockholder within 5 days who may, within fifteen calendar days, elect to (i) solicit written consents with respect to the annual election of directors or (ii) notify the Republic board of directors that it would like to proceed with an annual meeting where ballots can be cast by the stockholders (with a plurality of the votes determining the election of directors).<br>In the event that the contesting stockholder elects to solicit written consents in accordance with the Republic Bylaws, such stockholder will have 30 days to complete the procedure of soliciting written consents prior to the calling of an annual meeting. In the event that the contesting stockholder elects to notify the Republic board of directors that it would like to proceed with an annual meeting in accordance with the Republic Bylaws, such stockholder must promptly deliver notice to Republic, and Republic must thereafter promptly deliver a copy of the same to each stockholder of record. If none of the proposed candidates are contested within 15 days following the delivery of the initial nomination notice, the Republic |  |

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|  | **Rights of Current**<br> **Republic Stockholders** | **Rights of Mesa Stockholders**<br> **after the Delaware Conversion**<br> **and before the Merger** |
|  | board of directors may proceed with an annual meeting. |  |
| **Quorum** | Under the Republic Bylaws, the quorum necessary for the transaction of business at any meeting of the Republic board of directors is a majority of the number of directors then serving on the Republic board of directors. The holders of a majority of the shares of Republic common stock issued and outstanding and entitled to vote thereat, present in person or represented by proxy, shall constitute a quorum at any meeting of stockholders of Republic for the transaction of business. | Under the Post-Conversion Bylaws, the quorum necessary for the transaction of the business of Mesa-Delaware's board of directors is a majority of the total number of directors. The holders of a majority in voting power of the issued and outstanding shares of stock of Mesa-Delaware entitled to vote thereat, present in person or represented by proxy, shall constitute a quorum at all meetings of the stockholders for the transaction of business. |
| **Stockholder Action by Written Consent** | The Republic Charter provides that stockholders may take action by written consent in lieu of any annual or special meeting of stockholders if a consent or consents in writing, setting forth the action to be taken, are executed by the holders of the outstanding shares of Republic common stock having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares entitled to vote thereon were present and voted and are delivered as required by law. Further, the Republic Charter requires that Republic use commercially reasonable efforts to give advance written notice to all stockholders of any proposed action to be taken by written consent. | The Post-Conversion Charter will provide that subject to the rights of the holders of preferred stock, any action required or permitted to be taken by the stockholders of Mesa-Delaware must be effected at a duly called annual or special meeting of such stockholders and may not be effected by any consent in lieu of a meeting by such stockholders unless such action is recommended by all of the directors of Mesa-Delaware then in office. |
| **Notice of Stockholder Meetings** | Notice of the place (if any), date and time of all meetings of the stockholders, the record date for determining the stockholders entitled to vote at the meeting, and the means of remote communication (if any) by which stockholders and proxyholders may be deemed to be present in person and vote at such meeting shall be given, not less than ten (10) nor more than sixty (60) days before the date on which the meeting is to be held, to each stockholder entitled to vote on any proposal being considered at such meeting as of the | Notice of each stockholders meeting stating the place, if any, date, and time of the meeting, and the means of remote communication, if any, by which stockholders and proxy holders may be deemed to be present in person and vote at such meeting and the record date for determining the stockholders entitled to vote at the meeting, if such date is different from the record date for determining stockholders entitled to notice of the meeting, and in the case of a special meeting, the purpose or purposes of the meeting of stockholders, |

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|:---|:---|:---|
|  | **Rights of Current**<br> **Republic Stockholders** | **Rights of Mesa Stockholders**<br> **after the Delaware Conversion**<br> **and before the Merger** |
|  | record date. In the case of a special meeting, the purpose for which the meeting is being called shall be set forth in the notice. | shall be given not more than sixty (60) days nor less than ten (10) days before the date of the meeting to each stockholder entitled to vote at the meeting as of the record date for determining stockholders entitled to notice of the meeting at such address as appears in Mesa-Delaware's records. |
| **Preemptive Rights and**<br> **Protective Provisions** | The Republic Charter provides that each Republic stockholder has the right to purchase up to such holder's Pro Rata Portion (as defined in the Republic Charter) of any new Equity Securities (other than any Excluded Securities) (as defined in the Republic Charter) that Republic or any subsidiaries may propose to issue or sell to any person, in accordance with, and subject to certain exceptions as set forth in, the Republic Charter.<br>The Republic Charter further provides that Republic shall not, without prior approval of stockholders representing at least two thirds of the outstanding Republic common stock: (i) merge, consolidate with, engage in a share exchange with, or otherwise consummate any business combination with, any other person; (ii) sell, transfer, lease, or otherwise dispose of all or substantially all of the assets of Republic or its subsidiaries; (iii) initiate or take any action for the liquidation, dissolution, or winding up of Republic or any of its subsidiaries; (iv) reclassify, modify, or amend the terms of any existing equity securities of Republic or any of its subsidiaries; or (iv) enter into any contract, agreement, arrangement, or commitment to do or engage in any of the foregoing. | The Post-Conversion Charter will not provide that holders of Mesa-Delaware's stock shall have preemptive or other protective rights. |
| **Indemnification of Officers and Directors** | The Republic Charter provides that Republic shall indemnify each person who is or was a director or officer of Republic, or is or was serving at the request of Republic as a director, officer, employee, or agent of another entity, or is or was a director or officer of a foreign | Under the DGCL, a Delaware corporation must indemnify its present or former directors and officers against expenses (including attorneys' fees) actually and reasonably incurred to the extent that the officer or director has been successful on the merits or |

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|:---|:---|
| **Rights of Current**<br> **Republic Stockholders** | **Rights of Mesa Stockholders**<br> **after the Delaware Conversion**<br> **and before the Merger** |
| or domestic corporation that was a predecessor corporation of Republic or another enterprise at the request of the predecessor corporation to the fullest extent permitted by Section 145 of the DGCL, provided that Republic shall indemnify any such person in connection with a proceeding (or part thereof) initiated by such person only if such proceeding (or part thereof) was authorized by the board of directors or in accordance with the Republic Bylaws. In addition, pursuant to the Republic Bylaws, to the fullest extent not prohibited by law, an indemnitee of Republic shall be entitled to be paid by Republic the expenses (including attorney's fees) incurred in the defense of or other involvement in any such proceeding in advance of its final disposition, subject to the receipt by Republic of an undertaking to repay any such amount if it is determined that such indemnitee was not entitled to indemnification. | otherwise in defense of any action, suit, or proceeding brought against him or her by reason of the fact that he or she is or was a director or officer of the corporation. Delaware law provides that a corporation may indemnify its present and former directors, officers, employees, and agents, as well as any individual serving with another corporation in that capacity at the corporation's request against expenses (including attorney's fees), judgments, fines, and amounts paid in settlement of actions taken, if the individual acted in good faith and in a manner reasonably believed to be in, or not opposed to, the best interests of the corporation, and, in the case of a criminal proceeding, the individual had no reasonable cause to believe the individual's conduct was unlawful. However, with respect to actions by or in the rights of the corporation, no indemnification may be paid for judgments and settlements or to the extent the person is adjudged to be liable to the corporation unless a court approves the indemnity. The DGCL permits a corporation to purchase and maintain insurance on behalf of any person who is or was a director, officer, employee, or agent of a corporation, or is or was serving at the request of the corporation as a director, officer, employee, or agent of another corporation, partnership, joint venture, trust, or other enterprise against any liability asserted against such person and incurred by such person in any such capacity, or arising out of such person's status as such. The Post-Conversion Bylaws will provide that, to the fullest extent permitted by applicable law, Mesa-Delaware shall indemnify and hold harmless each person who was or is made a party or is threatened to be made a party to or is otherwise involved in any threatened, pending or completed action, suit or proceeding, whether civil, |

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|:---|:---|:---|
|  | **Rights of Current**<br> **Republic Stockholders** | **Rights of Mesa Stockholders**<br> **after the Delaware Conversion**<br> **and before the Merger** |
|  |  | criminal, administrative, or investigative, by reason of the fact he or she is or was a director or officer of Mesa-Delaware or, while serving as a director or officer of Mesa-Delaware, is or was serving at the request of Mesa-Delaware as a director, officer, employee, agent, or trustee of another corporation or of a partnership, joint venture, trust, or other enterprise, including service with respect to an employee benefit plan, subject to additional terms, conditions, and limitations. In addition, an indemnitee shall also have the right to be paid by Mesa-Delaware the expenses (including attorney's fees) incurred by the indemnitee in appearing at, participating in or defending any such proceeding in advance of its final disposition or in connection with a proceeding brought to establish or enforce a right to indemnification or advancement of expenses under the Post-Conversion Bylaws, subject to additional terms, conditions, and limitations. |
| **Declaration and Payment of Dividends** | The Republic Charter does not restrict the declaration or payment of dividends. | The Post-Conversion Charter will provide that dividends may be declared and paid on common stock, ratably in proportion to the number of shares held by each stockholder, out of the assets of Mesa-Delaware that are legally available as and when determined by Mesa-Delaware's board of directors in its discretion, subject to applicable law and any preferential dividend or other rights of any then-outstanding preferred stock or any class or series of stock having a preference over or the right to participate with the common stock with respect to the payment of dividends or other distributions. |
| **Amendments; General Provisions** | In addition to any vote required by applicable law, the Republic Charter provides that no provision of the Republic Charter may be altered, amended, or repealed, nor may any provision inconsistent therewith be adopted, unless such alternation, | In addition to any vote required by applicable law or the Post-Conversion Charter (including any certificate of designation related to any series of preferred stock), the affirmative vote of the holders of at least 66 2/3% of the total voting power of the then-outstanding |

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|:---|:---|
| **Rights of Current**<br> **Republic Stockholders** | **Rights of Mesa Stockholders**<br> **after the Delaware Conversion**<br> **and before the Merger** |
| amendment, repeal, or adoption is approved by (i) a majority of the directors present at any meeting at which a quorum is present and (ii) thereafter, a vote of stockholders representing at least two-thirds of the outstanding shares of Republic common stock.<br>Except for immaterial procedural or administrative amendments that do not affect or impair the substantive rights of any stockholder (which may be made by a majority of the directors present at any meeting at which there is a quorum or by stockholders representing at least a majority of the outstanding shares of Republic common stock), the Republic Bylaws may only be amended, altered, or repealed by a vote of the stockholders representing at least two-thirds of the outstanding shares of Republic common stock.<br>If any amendment to the Republic Charter or Republic Bylaws is to be made pursuant to an action by written consent (whether by the board of directors or of the stockholders), a form of such consent must be delivered to Republic at least six (6) business days prior to the effective date of such consent. Republic shall use commercially reasonable efforts to give advance written notice of any such amendment proposed to be adopted by written consent to all stockholders within one (1) business day of its receipt of such form of consent. | shares of stock of Mesa-Delaware entitled to vote thereon, voting as a single class, is required to amend, alter, repeal, or rescind, in whole or in part, or adopt any provision inconsistent with certain provisions of the Post-Conversion Charter.<br>Mesa-Delaware's board of directors will be authorized to make, alter, amend, change, add to, rescind, or repeal, in whole or in part, the Post-Conversion Bylaws without the assent or vote of the stockholders in any manner not inconsistent with the laws of the State of Delaware or Post-Conversion Charter.<br>In addition to any vote of the holders of any class or series of capital stock of Mesa-Delaware required by the Post-Conversion Charter (including any certificate of designation relating to any series of preferred stock), by the Post-Conversion Bylaws or applicable law, the affirmative vote of the holders of at least 66 2/3% of the voting power of all the then-outstanding shares of stock of Mesa-Delaware entitled to vote thereon, voting together as a single class, will be required in order for the stockholders of Mesa-Delaware to alter, amend, change, add to, repeal, or rescind, in whole or in part, any provision of the Post-Conversion Bylaws or to adopt any provision inconsistent therewith. |

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#### PRINCIPAL STOCKHOLDERS OF MESA
*Except where specifically noted, the following information and all other information contained in this proxy statement/prospectus does not give effect to any potential reverse stock split of Mesa common stock.* 

The table below sets forth certain information with respect to the beneficial ownership of Mesa common stock as of August 12, 2025 by:

• each of Mesa's named executive officers (NEOs);

• each of Mesa's directors;

• all of Mesa's directors and executive officers as a group; and

• each person, or group of affiliated persons, known by Mesa to beneficially own more than 5% of Mesa common stock.

The percentage of shares beneficially owned listed in the table below is based on 41,866,972 shares of Mesa common stock outstanding as of August 12, 2025. In computing the number of shares beneficially owned and the percentage ownership of each of the beneficial owners listed in the table below, Mesa deemed to be outstanding all shares of restricted common stock that have vested or will vest within 60 days of August 12, 2025, and all warrants exercisable within 60 days of August 12, 2025. Beneficial ownership is determined in accordance with the rules of the SEC and generally includes any shares over which a person exercises sole or shared voting or investment power. Unless otherwise indicated, the persons or entities identified in the table below have sole voting and investment power with respect to all shares shown to be beneficially owned by them, subject to applicable community property laws. The information contained in the table below is not necessarily indicative of beneficial ownership for any other purpose, and the inclusion of any shares in the table below does not constitute an admission of beneficial ownership of those shares. Except as otherwise noted below, the address for the individuals listed in the table below is c/o Mesa Air Group, Inc., 410 North 44th Street, Suite 700, Phoenix, Arizona 85008. The information provided in the table below is based on Mesa's records, information filed with the SEC and information provided to Mesa, except where otherwise noted:

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| | | |
|:---|:---|:---|
|  | **Number of**<br>**Shares**<br>**Beneficially**<br>**Owned** | **Percentage<br>of**<br>**Class** |
|  **Named Executive Officers** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Jonathan G. Ornstein | 1010014 | 2.41% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Michael J. Lotz | 578134 | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Brian S. Gillman | 155530 | \* |
|  **Non-Employee Directors** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ellen N. Artist | 139480 | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mitchell I. Gordon | 143280 | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dana J. Lockhart | 151980 | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Harvey W. Schiller | 125254 | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Spyridon P Skiados | 124180 | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All executive officers and directors as a group (8 persons) | 2427852 | 5.80% |
|  **5% Shareholders** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Yucaipa Companies LLC<sup>(1</sup><sup>)</sup> | 2964848 | 7.09% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; United Airlines Holdings, Inc.<sup>(2</sup><sup>)</sup> | 4042061 | 9.65% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Par Investment Partners, L.P. <sup>(3</sup><sup>)</sup> | 2140934 | 5.1% |

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\* Represents beneficial ownership of less than 1% of Mesa's outstanding common stock. 

<sup>(1</sup><sup>)</sup> Information is based on a Schedule 13D/A filed with the SEC on December 28, 2020. The address for Ronald W. Burkle is c/o The Yucaipa Companies LLC is 9130 W. Sunset Boulevard, Los Angeles, California 90069.

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<sup>(2</sup><sup>)</sup> Information is based on a Schedule 13D/A filed with the SEC on May 4, 2023. The address for United Airlines Holdings, Inc. is 233 South Wacker Drive, Chicago, Illinois 60606.

<sup>(3</sup><sup>)</sup> Information is based on a Schedule 13G filed with the SEC on June 20, 2025. The address for Par Investment Partners, L.P. is 200 Clarendon St., 48<sup>th</sup> Floor, Boston, MA 02116.

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#### PRINCIPAL STOCKHOLDERS OF REPUBLIC
The following table sets forth information regarding the beneficial ownership of shares of Republic common stock as of August 10, 2025 by (i) each person known to Republic to beneficially own more than 5% of any class of the outstanding voting securities of Republic Airways Holdings Inc., (ii) each of Republic's directors and named executive officers, and (iii) all of Republic's directors and executive officers as a group.

The percentage of beneficial ownership of shares of Republic common stock in the table below is based on 1,003,899 shares of Republic common stock deemed to be outstanding as of August 10, 2025. The amounts and percentages of shares beneficially owned are reported on the basis of SEC regulations governing the determination of beneficial ownership of securities. Under SEC rules, a person is deemed to be a "beneficial owner" of a security if that person has or shares voting power or investment power, which includes the power to dispose of or to direct the disposition of such security. A person is also deemed to be a beneficial owner of any securities of which that person has a right to acquire beneficial ownership within 60 days. Securities that can be so acquired are deemed to be outstanding for purposes of computing such person's ownership percentage, but not for purposes of computing any other person's percentage. Under these rules, more than one person may be deemed to be a beneficial owner of the same securities and a person may be deemed to be a beneficial owner of securities as to which such person has no economic interest.

Except as otherwise indicated in the footnotes below, each of the beneficial owners has, to Republic's knowledge, sole voting and investment power with respect to the indicated shares. Unless otherwise noted, the address of each beneficial owner is 8909 Purdue Road, Suite 300, Indianapolis, Indiana 46268.

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| | | |
|:---|:---|:---|
|  | **Shares of Republic<br>Common Stock<br>Beneficially Owned** | **Shares of Republic<br>Common Stock<br>Beneficially Owned** |
| **Name of Beneficial Owner** | **Number** | **%** |
|  **5% or Greater Stockholders:** |  |  |
|  American Airlines, Inc.<sup>(1)</sup> | 250194 | 24.51% |
|  Delta Air Lines, Inc.<sup>(2)</sup> | 173635 | 17.01% |
|  United Airlines, Inc.<sup>(3)</sup> | 191749 | 18.78% |
|  Embraer<sup>(4)</sup> | 106152 | 10.40% |
|  Contrarian Funds<sup>(5)</sup> | 114025 | 11.17% |
|  Owl Creek Funds<sup>(6)</sup> | 104526 | 10.24% |
|  **Named Executive Officers and Directors:** |  |  |
|  David Grizzle | 691 | \* |
|  Matthew J. Koscal |  |  |
|  Joseph P. Allman |  |  |
|  Paul K. Kinstedt |  |  |
|  Chad M. Pulley |  |  |
|  Glenn S. Johnson | 551 | \* |
|  Michael C. Lenz | 209 | \* |
|  Ruth Okediji | 691 | \* |
|  Barry W. Ridings | 691 | \* |
|  James E. Sweetnam | 691 | \* |
|  Directors and executive officers as a group (10 persons) | 3524 | \* |

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\* Represents less than 1%. 

<sup>(1)</sup> The address for American Airlines, Inc. is 1 Skyview Drive, Fort Worth, TX 76155.

<sup>(2)</sup> The address for Delta Air Lines, Inc. is 1030 Delta Boulevard, Atlanta, GA 30354.

<sup>(3)</sup> The address for United Airlines, Inc. is 233 South Wacker Drive, Chicago, IL 60606.

<sup>(4)</sup> Represents 80,262 shares of Republic common stock held by Embraer Netherlands B.V., 19,015 shares of Republic common stock held by Embraer Aircraft Customer Services, Inc., and 6,875 shares of Republic common stock held by Embraer Finance, Ltd. The address for each of Embraer Netherlands B.V, Embraer Aircraft Customer Services, Inc., and Embraer Finance, Ltd. is Avenida Dra. Ruth Cardoso, 8501, 30<sup>th</sup> floor (part), Pinheiros, São Paulo, SP, 05425-070, Brazil. 

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<sup>(5)</sup> Represents 69,518 shares of Republic common stock held by Contrarian Funds, L.L.C., 39,501 shares of Republic common stock held by Contrarian Opportunity Fund III, L.P., and 5,006 shares of Republic common stock held by Contrarian Capital Fund I, LP. Contrarian Capital Management, L.L.C. is the non-member manager of Contrarian Funds, L.L.C. and the investment manager to each of Contrarian Opportunity Fund III, L.P. and Contrarian Capital Fund I, L.P. Jon R. Bauer is the Managing Member and Chief Investment Officer of Contrarian Capital Management, L.L.C. The address for each of Contrarian Funds, L.L.C., Contrarian Opportunity Fund III, L.P. and Contrarian Capital Fund I, LP is 411 West Putnam Avenue, Suite 425, Greenwich, CT 06830. 

<sup>(6)</sup> Represents 36,134 shares of Republic common stock held by Owl Creek Investments II, LLC ("OC II"), 34,275 shares of Republic common stock held by Owl Creek Investments III, LLC ("OC III"), and 34,117 shares of Republic common stock held by Owl Creek Special Situations Fund, L.P. ("OCSS"), ("OC II" and, together with OC III and OCSS, the "Owl Creek Investors"). Owl Creek Asset Management, L.P. ("OCAM"), as manager of the Owl Creek Investors, may be deemed to control each Owl Creek Investor. Owl Creek GP, LLC ("OC GP"), as general partner of OCAM, may be deemed to control OCAM. Jeffrey A. Altman, as managing member of OC GP, may be deemed to control such entity. The address for each of these Owl Creek affiliates is 640 Fifth Avenue, 20th Floor, New York, NY 10019. 

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#### PRINCIPAL STOCKHOLDERS OF THE SURVIVING CORPORATION
*Except where specifically noted, the following information and all other information contained in this proxy statement/prospectus does not give effect to any potential reverse stock split of Mesa common stock.* 

The following table sets forth information regarding the beneficial ownership of shares of Surviving Corporation common stock immediately after the consummation of the Merger, assuming the consummation of the Merger occurred on , 2025 by (i) each person expected by Republic and Mesa to beneficially own more than 5% of any class of the outstanding voting securities of the Surviving Corporation, (ii) each person expected to be named a director or named executive officer of the Surviving Corporation, and (iii) all of the Surviving Corporation's expected directors and executive officers as a group.

The percentage of beneficial ownership of shares of Surviving Corporation common stock in the table below is based on shares of Surviving Corporation common stock expected to be outstanding upon consummation of the Merger, without giving effect to any potential reverse stock split of Mesa common stock. The amounts and percentages of shares beneficially owned are reported on the basis of SEC regulations governing the determination of beneficial ownership of securities. Under SEC rules, a person is deemed to be a "beneficial owner" of a security if that person has or shares voting power or investment power, which includes the power to dispose of or to direct the disposition of such security. A person is also deemed to be a beneficial owner of any securities of which that person has a right to acquire beneficial ownership within 60 days. Securities that can be so acquired are deemed to be outstanding for purposes of computing such person's ownership percentage, but not for purposes of computing any other person's percentage. Under these rules, more than one person may be deemed to be a beneficial owner of the same securities and a person may be deemed to be a beneficial owner of securities as to which such person has no economic interest.

Immediately after the Merger, Mesa stockholders as of immediately prior to the Merger are expected to own approximately 6% of Surviving Corporation common stock, former Republic securityholders are expected to own approximately 88% of Surviving Corporation common stock. The table below is based on the Exchange Ratio of 584.90 shares of Mesa common stock, without giving effect to any potential reverse stock split of Mesa common stock. The table below does not give effect to the ultimate disbursement of the Escrow Shares to be determined following the Closing.

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Except as otherwise indicated in the footnotes below, each of the beneficial owners has, to Mesa and Republic's knowledge, sole voting, and investment power with respect to the indicated shares. Unless otherwise noted, the address of each beneficial owner is 8909 Purdue Road, Suite 300, Indianapolis, Indiana 46268.

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| | | |
|:---|:---|:---|
|  | **Shares of Surviving Corporation<br>Common Stock Beneficially Owned** | **Shares of Surviving Corporation<br>Common Stock Beneficially Owned** |
| **Name of Beneficial Owner** | **Number** | **%** |
|  **5% or Greater Stockholders:** |  |  |
|  American Airlines, Inc.<sup>(1)</sup> |  |  |
|  Delta Air Lines, Inc.<sup>(2)</sup> |  |  |
|  United Airlines, Inc.<sup>(3)</sup> |  |  |
|  Embraer<sup>(4)</sup> |  |  |
|  Contrarian Funds<sup>(5)</sup> |  |  |
|  Owl Creek Funds<sup>(6)</sup> |  |  |
|  **Named Executive Officers and Directors:** |  |  |
|  David Grizzle |  |  |
|  Matthew J. Koscal |  |  |
|  Joseph P. Allman |  |  |
|  Paul K. Kinstedt |  |  |
|  Chad M. Pulley |  |  |
|  Ellen Artist |  |  |
|  Glenn S. Johnson |  |  |
|  Michael C. Lenz |  |  |
|  Ruth Okediji |  |  |
|  Barry W. Ridings |  |  |
|  James E. Sweetnam |  |  |
|  Directors and executive officers as a group (11 persons) |  |  |

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\* Represents less than 1%. 

<sup>(1)</sup> The address for American Airlines, Inc. is 1 Skyview Drive, Fort Worth, TX 76155.

<sup>(2)</sup> The address for Delta Air Lines, Inc. is 1030 Delta Boulevard, Atlanta, GA 30354.

<sup>(3)</sup> The address for United Airlines, Inc. is 233 South Wacker Drive, Chicago, IL 60606.

<sup>(4)</sup> Represents shares of Surviving Corporation common stock held by Embraer Netherlands B.V., shares of Surviving Corporation common stock held by Embraer Aircraft Customer Services, Inc., and shares of Surviving Corporation common stock held by Embraer Finance, Ltd. The address for each of Embraer Netherlands B.V, Embraer Aircraft Customer Services, Inc., and Embraer Finance, Ltd. is Avenida Dra. Ruth Cardoso, 8501, 30<sup>th</sup> floor (part), Pinheiros, São Paulo, SP, 05425-070, Brazil. 

<sup>(5)</sup> Represents shares of Surviving Corporation common stock held by Contrarian Funds, L.L.C., shares of Surviving Corporation common stock held by Contrarian Opportunity Fund III, L.P., and shares of Surviving Corporation common stock held by Contrarian Capital Fund I, LP. Contrarian Capital Management, L.L.C. is the non-member manager of Contrarian Funds, L.L.C. and the investment manager to each of Contrarian Opportunity Fund III, L.P. and Contrarian Capital Fund I, L.P. Jon R. Bauer is the Managing Member and Chief Investment Officer of Contrarian Capital Management, L.L.C. The address for each of Contrarian Funds, L.L.C., Contrarian Opportunity Fund III, L.P. and Contrarian Capital Fund I, LP is 411 West Putnam Avenue, Suite 425, Greenwich, CT 06830. 

<sup>(6)</sup> Represents shares of Surviving Corporation common stock held by Owl Creek Investments II, LLC ("OC II"), shares of Surviving Corporation common stock held by Owl Creek Investments III, LLC ("OC III"), and shares of Surviving Corporation common stock held by Owl Creek Special Situations Fund, L.P. ("OCSS"), ("OC II" and, together with OC III and OCSS, the "Owl Creek Investors"). Owl Creek Asset Management, L.P. ("OCAM"), as manager of the Owl Creek Investors, may be deemed to control each Owl Creek Investor. Owl Creek GP, LLC ("OC GP"), as general partner of OCAM, may be deemed to control OCAM. Jeffrey A. Altman, as managing member of OC GP, may be deemed to control such entity. The address for each of these Owl Creek affiliates is 640 Fifth Avenue, 20th Floor, New York, NY 10019. 

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#### USE OF PROCEEDS
There are no cash proceeds to the Surviving Corporation from the sale of the Escrow Assets. Such Escrow Assets are being distributed in a manner that ensures the former Republic stockholders are not diluted by legacy Mesa obligations to United Airlines or certain additional liabilities of the Surviving Corporation, but if Mesa successfully sells certain legacy assets such that the Net Debt Amount is fully extinguished and no post-Closing adjustments are necessitated, then the Pre-Merger Mesa Shareholders will receive the entire amount of the Escrow Shares, which would increase their collective ownership of the Surviving Corporation to approximately twelve percent (12%).

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#### DETERMINATION OF OFFERING PRICE
There is no price associated with the distribution of the Escrow Assets pursuant to the Plan of Distribution. Rather, any distribution of Escrow Assets to United Airlines will be used to extinguish any remaining Net Debt Amount and any distribution of Escrow Assets to the Surviving Corporation will be made to address any needed post-Closing adjustments.

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#### PLAN OF DISTRIBUTION
The Escrow Assets will be held in escrow pursuant to the Escrow Agreement and will be distributed out to its recipients pursuant to the mechanics of the Escrow Issuance. No underwriters will be involved in the Escrow Issuance. The total Escrow Shares that are subject to the Escrow Issuance are equal to six percent (6%) of the issued and outstanding shares of common stock after giving effect to the Merger and such issuance.

The mechanics of the Escrow Issuance require that the Escrow Agent distribute the Escrow Assets in order of priority, first to United Airlines, then to the Surviving Corporation, and finally to the Pre-Merger Mesa Shareholders based on the Net Debt Amount. If the Net Debt Amount remains a positive number as of the Closing, then the Escrow Assets with an aggregate dollar value equal to the Net Debt Amount will be distributed first to United Airlines. If the Net Debt Amount is zero or a negative number, United Airlines will not be entitled to any of the Escrow Assets. If there are Escrow Assets remaining after the United Entitlement has been satisfied, and if further post-Closing adjustments (such as unresolved obligations related to the joint venture with Flite) entitle the Surviving Corporation to the Escrow Assets, the Surviving Corporation will receive shares equal to the amount of such entitlement. Any shares remaining after the United Entitlement and the Surviving Corporation Entitlement are each satisfied, will then be distributed to the Pre-Merger Mesa Shareholders on a pro rata basis, with any fractional shares paid out in cash.

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#### LEGAL MATTERS
Potter Anderson & Corroon LLP will pass upon the validity of the shares of Mesa common stock offered by this proxy statement/prospectus as the Merger Consideration and the Escrow Issuance.

#### EXPERTS

#### Mesa
The consolidated financial statements of Mesa Air Group, Inc. as of September 30, 2024 and for the year then ended, have been included herein and in the registration statement in reliance upon the report of Marcum LLP ("Marcum"), Mesa's independent registered public accounting firm for such period, appearing elsewhere herein, and upon the authority of said firm as experts in accounting and auditing.

The consolidated financial statements of Mesa Air Group, Inc. as of September 30, 2023 and for the year then ended, have been included herein and in the registration statement in reliance upon the report of RSM US LLP ("RSM"), Mesa's independent registered public accounting firm for such period, appearing elsewhere herein, and upon the authority of said firm as experts in accounting and auditing.

The consolidated financial statements of Mesa Air Group, Inc. as of September 30, 2022 and for the year then ended, have been included herein and in the registration statement in reliance upon the report of Ernst & Young LLP ("EY"), Mesa's independent registered public accounting firm for such period, appearing elsewhere herein, and upon the authority of said firm as experts in accounting and auditing.

#### Republic
The financial statements of Republic Airways Holdings Inc. as of December 31, 2024 and 2023, and for each of the three years in the period ended December 31, 2024, included in this proxy statement/prospectus, have been audited by Deloitte & Touche LLP, an independent auditor, as stated in their report. Such financial statements are included in reliance upon the report of such firm given their authority as experts in accounting and auditing.

#### CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

#### CBIZ
On November 1, 2024, CBIZ CPAs P.C. ("CBIZ") acquired the attest business of Marcum LLP ("Marcum"), the present independent registered public accounting firm of Mesa. As a result of the acquisition of the Marcum attestation business, on March 4, 2025, Mesa was notified by Marcum that Marcum will resign as Mesa's independent registered public accounting firm effective immediately upon the filing of Mesa's Form 10-K for the fiscal year ended September 30, 2024. Concurrently with the Marcum notification, on March 4, 2025, Mesa, with the approval of the Audit Committee of Mesa's board of directors, has engaged CBIZ as the Company's independent registered public accounting firm for the fiscal year ending September 30, 2025.

During the period April 12, 2024 through March 4, 2025, the date Marcum informed Mesa of their resignation, there were (a) no "disagreements" (as defined in Item 304(a)(1)(iv) of Regulation S-K and the related instructions) with Marcum on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of Marcum, would have caused Marcum to make reference to such disagreement in its report and (b) no "reportable events" (as defined in Item 304(a)(1)(v) of Regulation S-K and the related instructions).

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During the period April 12, 2024 through March 4, 2025, the date Marcum informed Mesa of their resignation, neither Mesa nor anyone on Mesa's behalf consulted with CBIZ regarding (i) the application of accounting principles to a specific completed or contemplated transaction or regarding the type of audit opinions that might be rendered by CBIZ on Mesa's financial statements, and CBIZ did not provide any written or oral advice that was an important factor considered by Mesa in reaching a decision as to any such accounting, auditing, or financial reporting issue or (ii) any matter that was either the subject of a disagreement (as defined in Item 304(a)(1)(iv) of Regulation S-K and the related instructions), as that term is described in Item 304(a)(1)(iv) of Regulation S-K, or a reportable event, as that term is defined in Item 304(a)(1)(v) of Regulation S-K.

#### RSM US LLP
On May 24, 2024, Mesa's Audit Committee appointed Marcum as Mesa's independent registered public accounting firm for the fiscal year ending September 30, 2024, dismissing RSM from its position as Mesa's independent registered public accounting firm.

During the fiscal year ended September 30, 2023 and subsequent interim period through May 24, 2024, there were no "disagreements" (as defined in Item 304(a)(1)(iv) of Regulation S-K and the related instructions to Item 304 of Regulation S-K) with RSM on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of RSM, would have caused RSM to make reference to the subject matter of such disagreements in connection with its reports on the financial statements for such years. During the fiscal year ended September 30, 2023 and the subsequent interim period through May 24, 2024, there were no "reportable events" (as defined in Item 304(a)(1)(v) of Regulation S-K), except that, as previously disclosed in Mesa's Annual Report on Form 10-K for the fiscal year ended September 30, 2023, management identified two material weaknesses in Mesa's internal control over financial reporting for the fiscal year ended September 30, 2023 in the areas of (i) information

technology general controls ("ITGCs"); and (ii) debt covenant compliance. The material weakness relating to ITGCs related to ineffective ITGCs in the areas of user access management and program change management - related to Mesa's inventory management system, PMI, and Mesa's Oracle financial reporting system. Mesa believes that these control deficiencies were a result of (i) insufficient documentation of information technology ("IT") control processes such that the successful operation of ITGCs was overly dependent upon knowledge and actions of certain qualified individuals for each IT system; (ii) insufficient training of IT personnel on the operation and performance of their control responsibilities; and (iii) inadequate risk-assessment processes to identify and assess IT environment changes and risks that could impact internal control over financial reporting. As a result of this material weakness, manual and automated business process controls dependent on the affected ITGCs were ineffective because the controls had the potential to be adversely impacted. RSM issued an adverse opinion on internal control over financial reporting as of September 30, 2023. Mesa management performed additional analysis and test procedures as deemed necessary to ensure that Mesa's financial statements included in the Form 10-K present fairly in all material respects Mesa's financial position, results of operations and cash flows for the periods presented.

The material weakness in Mesa's internal controls over the review of debt covenant compliance related to the failure to monitor and review debt compliance covenants. Mesa previously reported that it believes this control deficiency was a result of (i) inadequate performance of controls surrounding debt covenant compliance and disclosure; (ii) insufficient knowledge of its amended credit agreement; and (iii) insufficient communication with Mesa's lender regarding debt covenant compliance and obtaining waivers. This material weakness impacted other transactions that rely on the review of debt covenants including Mesa's evaluation of going concern. As a result of this material weakness, there was a factual material misstatement on the consolidated balance sheet and in the Mesa's going concern disclosure and debt covenant compliance disclosures in Mesa's Form 10-Q for the quarterly period ended June 30, 2023.

In addition to the foregoing, as reported in Mesa's Form 10-Q for the period ended December 31, 2023, management determined that there was a material weakness related to the omission of a disclosure of an impairment charge associated with newly classified held for sale assets. Mesa management's review of controls

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over required disclosures were not performed at the proper level of precision to detect an omitted disclosure of an impairment charge associated with the newly classified assets held for sale of approximately $40.4 million. This impairment was disclosed in the financial information as of and for the three months ended December 31, 2023. This omitted disclosure is a material weakness over the review of subsequent event disclosures related to assets classified as held for sale after the balance sheet date but before the report release date and the impairment charge related to those assets.

#### Ernst and Young LLP
On March 17, 2023, Mesa's Audit Committee appointed RSM as Mesa's independent registered public accounting firm for the fiscal year ending September 30, 2023, dismissing Ernst & Young LLP ("EY") from its position as Mesa's independent registered public accounting firm.

During the fiscal years ended September 30, 2022 and 2021 and quarterly period ended December 31, 2022, there were no "disagreements" (as defined in Item 304(a)(1)(iv) of Regulation S-K and the related instructions to Item 304 of Regulation S-K) with EY on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of EY, would have caused EY to make reference to the subject matter of such disagreements in connection with its reports on the financial statements for such years. During the fiscal years ended September 30, 2022 and 2021 and quarterly period ended December 31, 2022, there were no "reportable events" (as defined in Item 304(a)(1)(v) of Regulation S-K), except for the material weaknesses in Mesa's internal control over financial reporting previously reported in Part II, Item 9A "Controls and Procedures" in Mesa's Annual Report on Form 10-K for the fiscal year ended September 30, 2022 described therein (the "2022 10-K"). The material weaknesses related to Mesa's review and oversight control activities which did not operate at a sufficient level of precision to detect errors related to (1) the application of the accounting for net operating loss carryforwards governed by the Tax Cuts and Jobs Act (TCJA) and (2) the accounting for the impairment of the assets. Internal controls in place were not operating effectively to prevent and detect a material misstatement. Mesa established plans to remediate these material weaknesses outlined in the 2022 10-K.

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#### WHERE YOU CAN FIND MORE INFORMATION
Mesa is subject to the informational requirements of the Exchange Act and in accordance therewith, files annual, quarterly, and current reports, proxy statements, and other information with the SEC electronically, and the SEC maintains a website that contains Mesa's filings as well as reports, proxy and information statements, and other information issuers file electronically with the SEC at *www.sec.gov*.

Mesa also makes available free of charge on or through its website at *https://investor.mesa-air.com/financial-information/sec-filings*, its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act as soon as reasonably practicable after Mesa electronically files such material with or otherwise furnishes it to the SEC. The website addresses for the SEC and Mesa are inactive textual references and except as specifically incorporated by reference into this proxy statement/prospectus, information on those websites is not part of this proxy statement/prospectus.

Mesa has filed with the SEC a registration statement on Form S-4/S-1, of which this proxy statement/ prospectus is a part, under the Securities Act to register the shares of Mesa common stock to be issued to Republic stockholders in the Merger. The registration statement, including the attached annexes, exhibits, and schedules, contains additional relevant information about Mesa and Mesa common stock. This proxy statement/prospectus does not contain all of the information set forth in the registration statement because certain parts of the registration statement are omitted in accordance with the rules and regulations of the SEC.

Mesa has supplied all the information contained in or incorporated by reference into this proxy statement/prospectus relating to Mesa, and Republic has supplied all information contained in this proxy statement/prospectus relating to Republic.

You can obtain any of the documents incorporated by reference into this proxy statement/prospectus from Mesa or from the SEC through the SEC's website at *www.sec.gov*. Documents incorporated by reference are available from Mesa without charge, excluding any exhibits to those documents, unless the exhibit is specifically incorporated by reference as an exhibit into this proxy statement/prospectus. If you would like to request documents from Mesa or Republic, please send a request in writing or by telephone to either Mesa or Republic at the following addresses:

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| | |
|:---|:---|
| Mesa Air Group, Inc. | Republic Airways Holdings, Inc. |
| 410 North 44th Street, Suite 700 | 8909 Purdue Road, Suite 300 |
| Phoenix, AZ 85008 | Indianapolis, IN 46268 |
| Attn: Investor Relations | Attn: Investor Relations |
| Tel: (602) 685-4000 | Tel: (317) 484-6000 |
| Email: Legal@mesa-air.com | Email: legal@rjet.com |

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#### OTHER MATTERS

#### Stockholder Proposals
A Mesa stockholder who would like to have a proposal considered for inclusion in Mesa's 2025 proxy statement must submit the proposal in accordance with the procedures outlined in Rule 14a-8 of the Exchange Act so that it is received by Mesa no later than March 4, 2025. However, if the date of the 2025 Annual Meeting of Stockholders is changed by more than 30 days from the date of the previous year's meeting, then the deadline is a reasonable time before Mesa begins to print and send its proxy statement for the 2025 Annual Meeting of Stockholders. SEC rules set standards for eligibility and specify the types of stockholder proposals that may be excluded from a proxy statement. Stockholder proposals should be addressed to Mesa Air Group, Inc., 410 North 44th Street, Suite 700, Phoenix, Arizona 85008, Attention: Corporate Secretary. Mesa also encourages you to submit any such proposals via email to Legal@mesa-air.com.

If a stockholder wishes to propose a nomination of persons for election to Mesa's board of directors or present a proposal at an annual meeting but does not wish to have the proposal considered for inclusion in Mesa's proxy statement and proxy card, Mesa's bylaws establish an advance notice procedure for such nominations and proposals. Stockholders at an annual meeting may only consider proposals or nominations (a) specified in the notice of meeting, (b) brought before the meeting by or at the direction of the board of directors or a committee appointed by the board of directors, or (c) brought by a stockholder who was a stockholder of record at the time the required notice is delivered to Mesa's corporate secretary and at the time of the annual meeting, who is entitled to vote at the meeting and who has delivered timely notice in proper form to Mesa's corporate secretary of the stockholder's intention to bring such business before the meeting.

To be timely, the required notice must be in writing and delivered to Mesa's corporate secretary at Mesa's principal executive offices not later than the close of business on the 90<sup>th</sup> day, nor earlier than the close of business on the 120<sup>th</sup> day prior to the first anniversary of the preceding year's annual meeting. However, in the event that the date of the annual meeting is advanced by more than 30 days before or more than 70 days after the first anniversary of the preceding year's annual meeting, a stockholder's notice must be so delivered not earlier than the close of business on the 120<sup>th</sup> day prior to such annual meeting and not later than the close of business on the later of the 90<sup>th</sup> day prior to such annual meeting or the 10<sup>th</sup> day following the day on which public announcement of the date of such annual meeting is first made by Mesa. For stockholder proposals to be brought before the 2025 Annual Meeting of Stockholders, the required notice must be received by Mesa's corporate secretary at Mesa's principal executive offices no earlier than April 16, 2025 and no later than May 16, 2025. In addition, to comply with the universal proxy rules, stockholders who intend to solicit proxies in support of director nominees other than Mesa's nominees must provide notice by the same deadline noted herein to submit a notice of nomination for consideration at the 2025 Annual Meeting of Stockholders. Such notice must comply with the additional requirements of Rule 14a-19(b). Stockholder proposals and the required notice should be addressed to Mesa Air Group, Inc., 410 North 44th Street, Suite 700, Phoenix, Arizona 85008, Attention: Corporate Secretary.

#### Stockholder Communication with the Mesa Board
Any interested party with concerns about Mesa may report such concerns to the board of directors or the chairman of Mesa's board of directors or the chairman of Mesa's nominating and corporate governance committee, by submitting a written communication to the attention of such director at the following address:

c/o Mesa Air Group, Inc.

410 North 44th Street, Suite 700

Phoenix, AZ 85008

United States

You may submit your concern anonymously or confidentially by postal mail. You may also indicate whether you are a stockholder, customer, supplier, or other interested party.

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A copy of any such written communication may also be forwarded to Mesa's legal counsel and a copy of such communication may be retained for a reasonable period of time. The director may discuss the matter with Mesa's legal counsel, with independent advisors, with non-management directors, or with management, or may take other action or no action as the director determines in good faith, using reasonable judgment, and applying his or her own discretion.

Communications may be forwarded to other directors if they relate to important substantive matters and include suggestions or comments that may be important for other directors to know. In general, communications relating to corporate governance and long-term corporate strategy are more likely to be forwarded than communications relating to ordinary business affairs, personal grievances, and matters as to which Mesa tends to receive repetitive or duplicative communications.

The audit committee oversees the procedures for the receipt, retention, and treatment of complaints received by Mesa regarding accounting, internal accounting controls, or audit matters, and the confidential, anonymous submission by employees of concerns regarding questionable accounting, internal accounting controls, or auditing matters. Mesa has also established a toll-free telephone number for the reporting of such activity, which is (866) 225-5770.

#### Householding of Proxy Statement/Prospectus
The SEC has adopted rules that permit companies and intermediaries (e.g., brokers) to satisfy the delivery requirements for proxy materials with respect to two or more stockholders sharing the same address by delivering a single set of the proxy materials addressed to those stockholders. This process, which is commonly referred to as "householding," potentially means extra convenience for stockholders and cost savings for companies.

In connection with the Mesa Special Meeting, a number of brokers with account holders who are Mesa stockholders will be "householding" Mesa's proxy materials. A single set of proxy materials will be delivered to multiple stockholders sharing an address unless contrary instructions have been received from the affected stockholders. Once a stockholder has received notice from his or her broker that the broker will be "householding" communications to such stockholder's address, "householding" will continue until the stockholder is notified otherwise or until the stockholder revokes his or her consent. If, at any time, a stockholder no longer wishes to participate in "householding" and would prefer to receive a separate set of proxy materials, such stockholder should notify his or her broker or Mesa. Direct the written request to Mesa Air Group, Inc., 410 North 44th Street, Suite 700, Phoenix, Arizona 85008, Attention: Corporate Secretary, telephone: (602) 685-4000. Stockholders who currently receive multiple copies of the proxy materials at their addresses and would like to request "householding" of their communications should contact their brokers.

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#### INDEX TO FINANCIAL STATEMENTS

#### INDEX TO MESA'S CONSOLIDATED FINANCIAL STATEMENTS
Audited Consolidated Financial Statements as of September 30, 2024 and 2023 and for the years ended September 30, 2022, 2023, and 2024:

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| | |
|:---|:---|
|  | **Page** |
|  [Report of Independent Registered Accounting Firm](#fin2944307_100) | F-2 |
|  [Consolidated Balance Sheets](#fin2944307_103) | F-6 |
|  [Consolidated Statements of Operations and Comprehensive (Loss) Income](#fin2944307_104) | F-7 |
|  [Consolidated Statements of Stockholders' Equity](#fin2944307_105) | F-8 |
|  [Consolidated Statements of Cash Flows](#fin2944307_106) | F-9 |
|  [Notes to Consolidated Financial Statements](#fin2944307_107) | F-10 |

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Unaudited Interim Condensed Consolidated Financial Statements as of June 30, 2025 and September 30, 2024 and for the nine months ended June 30, 2025 and 2024:

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| | |
|:---|:---|
|  [Condensed Consolidated Balance Sheets](#fin2944307_108) | F-43 |
|  [Condensed Consolidated Statements of Operations and Comprehensive Loss](#fin2944307_109) | F-44 |
|  [Condensed Consolidated Statements of Stockholders' Equity](#fin2944307_110) | F-45 |
|  [Condensed Consolidated Statements of Cash Flows](#fin2944307_111) | F-46 |
|  [Notes to Unaudited Condensed Consolidated Financial Statements](#fin2944307_112) | F-47 |

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#### INDEX TO REPUBLIC'S CONSOLIDATED FINANCIAL STATEMENTS
Audited Consolidated Financial Statements as of December 31, 2023 and 2024 and for the years ended December 31, 2022, 2023, and 2024:

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| | |
|:---|:---|
|  [Independent Auditor's Report](#fin944307_1) | F-66 |
|  [Consolidated Balance Sheets](#fin944307_2) | F-68 |
|  [Consolidated Statements of Operations](#fin944307_3) | F-69 |
|  [Consolidated Statements of Mezzanine Equity and Shareholders' Equity](#fin944307_4) | F-70 |
|  [Consolidated Statements of Cash Flows](#fin944307_5) | F-71 |
|  [Notes to Consolidated Financial Statements](#fin944307_6) | F-72 |

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Unaudited Condensed Consolidated Financial Statements as of December 31, 2024 and June 30, 2025 and for the six months ended June 30, 2024 and 2025:

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| | |
|:---|:---|
|  [Condensed Consolidated Balance Sheets](#fin944307_7) | F-97 |
|  [Condensed Consolidated Statements of Operations](#fin944307_8) | F-98 |
|  [Condensed Consolidated Statements of Mezzanine Equity and Shareholders' Equity](#fin944307_9) | F-99 |
|  [Condensed Consolidated Statements of Cash Flows](#fin944307_10) | F-100 |
|  [Notes to Unaudited Condensed Consolidated Financial Statements](#fin944307_11) | F-101 |

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Report of Independent Registered Public Accounting Firm

To the Stockholders and the Board of Directors of Mesa Air Group, Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated statements of operations and comprehensive loss, stockholders' equity and cash flows for the year ended September 30, 2022, and the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the results of the Company's operations and its cash flows for the year ended September 30, 2022, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ Ernst & Young LLP

We served as the Company's auditor from 2019 to 2023.

Phoenix, Arizona

December 29, 2022

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#### **Table of Contents**
Report of Independent Registered Public Accounting Firm

To the Stockholders and the Board of Directors of Mesa Air Group, Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheet of Mesa Air Group, Inc. (the Company) as of September 30, 2023, the related consolidated statements of operations and comprehensive (loss) income, stockholders' equity and cash flows, for the year then ended and the related notes (collectively, the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of September 30, 2023, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provide a reasonable basis for our opinion.

RSM US LLP

We served as the Company's auditor from 2023 to 2024.

Phoenix, Arizona

January 26, 2024

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Stockholders and Board of Directors of

Mesa Air Group, Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheet of Mesa Air Group, Inc. (the "Company") as of September 30, 2024, the related consolidated statements of operations and comprehensive loss, stockholders' equity and cash flows for the year ended September 30, 2024, and the related notes (collectively referred to as the "financial statements"). In our opinion, based on our audit, the financial statements present fairly, in all material respects, the financial position of the Company as of September 30, 2024, and the results of its operations and its cash flows the year ended September 30, 2024, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Forecasted Cash Flows Utilized in Assessment of Going Concern and Impairment of Long-lived Assets

As disclosed in Note 1 of the consolidated financial statements, the Company believes that cash on hand, ongoing cashflows from operations, restructuring debt covenants and agreements, forgiveness of debt based on operational

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metrics outlined in the United Capacity Purchase Agreement, borrowing capacity under the United Revolving Credit Facility, reimbursement of expenses up to $14.0 million related to the transition to an entirely E-175 fleet, restructuring of operations to defer major expenses, and selling the aircraft and engines held for sale, is adequate to fund operations and meet debt obligations for the next twelve months following the issuance of these financial statements. Accordingly, management has disclosed the factors that give rise to concerns regarding the ability of the Company to continue as a going concern, as well as management's implemented plan which alleviates the conditions giving rise to substantial doubt. The plan involves the forecast of cash flows to determine whether the Company will have sufficient cash to fund operations and satisfy debt obligations as it becomes due.

As disclosed in Note 2 of the consolidated financial statements the Company reviews long-lived assets to be held and used for impairment whenever events or changes in circumstances indicate that the related carrying amount may be impaired. To determine whether impairments exist for aircraft and other related assets used in operations, the Company groups assets at the lowest level for which identifiable cash flows exist. The Company assesses whether indicators of impairment are present for an asset group and, when applicable, the Company evaluates recoverability of the asset group by comparing the undiscounted future cash flows to the carrying amount of the asset group. The Company estimates future cash flows based on projections of capacity purchase block hours, maintenance events, labor costs and other relevant factors. If the asset group is not recoverable, an impairment charge is recorded and the asset group's carrying amount is reduced to its estimated fair value.

Management engaged experts to calculate the fair value of long-lived assets.

The forecasts of undiscounted cashflows prepared to assess going concern and impairment of long-lived assets were prepared with significant judgment and estimates of future cashflows based on projections of capacity purchase agreement block hours, maintenance events, labor costs, and other relevant factors.

The principal considerations for our determination that performing procedures relating to the forecasts of undiscounted cashflows prepared to assess going concern and impairment of long-lived assets as critical audit matters are (i) the significant judgment by management in estimating capacity purchase block hours, maintenance events, labor costs and other relevant factors, (ii) the significant judgment by management in estimating future compliance with debt covenants, (iii) the significant judgement by management used by experts to calculate the fair value of long-lived assets, and (iv) the high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating management's significant assumptions related to the forecasts of undiscounted cashflows and the determination of the fair value of the long-lived assets.

Addressing the critical audit matters involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included (i) testing management's process for developing the estimates (ii) testing the completeness and accuracy of underlying data used in the estimates (iii) testing future asset sales to generate cash through binding purchase agreements, (iv) testing future compliance with debt covenants based on amended debt agreements, (v) testing changes in revenues and expenses through audit procedures on projected block hours, scheduled future flight plans, pilot attrition, and number of aircraft in service, (vi) testing the valuation of long-lived assets, including the work performed by management's specialists, and (vii) testing the completeness of the disclosures related to management's plans.

/s/ Marcum llp

Marcum llp

We have served as the Company's auditor since 2024

Melville, NY

May 13, 2025

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MESA AIR GROUP, INC.

Consolidated Balance Sheets

(in thousands, except share amounts)

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| | | |
|:---|:---|:---|
|  | September 30, | September 30, |
|  | 2024 | 2023 |
| ASSETS |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $15621 | $32940 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restricted cash | 3009 | 3132 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receivables, net ($1,883 and $4,016 from related party) | 5263 | 8253 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expendable parts and supplies, net | 28272 | 29245 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assets held for sale | 5741 | 57722 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 3371 | 7294 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 61277 | 138586 |
| Property and equipment, net | 426351 | 698022 |
| Lease and equipment deposits | 1289 | 1630 |
| Operating lease right-of-use assets | 7231 | 9709 |
| Deferred heavy maintenance, net | 6396 | 7974 |
| Assets held for sale | 86605 | 12000 |
| Other assets | 7709 | 30546 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $596858 | $898467 |
| LIABILITIES AND STOCKHOLDERS' EQUITY |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current portion of long-term debt and finance leases ($6,604 and $20,500 from related party) | $50455 | $163550 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current portion of deferred revenue | 3932 | 4880 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current maturities of operating leases | 1681 | 3510 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 72096 | 58957 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued compensation | 12797 | 10008 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Customer deposits | 1189 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other accrued expenses | 32308 | 27001 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 174458 | 267906 |
| Noncurrent liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term debt and finance leases, excluding current portion ($30,914 and $30,630 from related party) | 259816 | 364728 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Noncurrent operating lease liabilities | 6863 | 8077 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred credits from related party | 3020 | 4617 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | 8173 | 8414 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue, net of current portion | 5707 | 16167 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other noncurrent liabilities | 28579 | 28522 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total noncurrent liabilities | 312158 | 430525 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 486616 | 698431 |
| Commitments and contingencies (Note 16) |  |  |
| Stockholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock of no par value and additional paid-in capital, 125,000,000 shares authorized; 41,331,719 (2024) and 40,940,326 (2023) shares issued and outstanding, 4,899,497 (2024) and 4,899,497 (2023) warrants issued and outstanding | 272376 | 271155 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated deficit | (162134) | (71119) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 110242 | 200036 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $596858 | $898467 |

---

See accompanying notes to these consolidated financial statements.

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MESA AIR GROUP, INC.

Consolidated Statements of Operations and Comprehensive Loss

(in thousands, except per share amounts)

---

| | | | |
|:---|:---|:---|:---|
|  | Year Ended September 30, | Year Ended September 30, | Year Ended September 30, |
|  | 2024 | 2023 | 2022 |
|  Operating revenues: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contract revenue (2024—$394,206, 2023—$294,129, and 2022—$207,003 from related party) | $404322 | $421298 | $478482 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pass-through and other revenue | 72087 | 76767 | 52519 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating revenues | 476409 | 498065 | 531001 |
|  Operating expenses: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Flight operations | 184472 | 216748 | 177038 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Maintenance | 184725 | 199648 | 201930 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Aircraft rent | 7797 | 6200 | 36989 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative | 44248 | 48765 | 43966 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 40041 | 60359 | 81508 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asset impairment | 73709 | 54343 | 171824 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss/(Gain) on sale of assets | 682 | (7162) | (4723) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other operating expenses | 6555 | 3510 | 7471 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | 542229 | 582411 | 716003 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating loss | (65820) | (84346) | (185002) |
|  Other income (expense), net: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense | (38455) | (49921) | (35289) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income | 68 | 146 | 139 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on investments, net | 8032 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized (loss)/gain on investments, net | (6145) | 5408 | (13715) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on extinguishment of debt | 2954 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on debt forgiveness | 10500 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expense, net | (1630) | (148) | (801) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total other expense, net | (24676) | (44515) | (49666) |
|  Loss before taxes | (90496) | (128861) | (234668) |
|  Income tax expense/(benefit) | 519 | (8745) | (51990) |
|  Net loss and comprehensive loss | $(91015) | $(120116) | $(182678) |
|  Net loss per share attributable to common shareholders |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic | $(2.21) | $(3.04) | $(5.06) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted | $(2.21) | $(3.04) | $(5.06) |
|  Weighted-average common shares outstanding |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic | 41137 | 39465 | 36133 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted | 41137 | 39465 | 36133 |

---

See accompanying notes to these consolidated financial statements.

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MESA AIR GROUP, INC.

Consolidated Statements of Stockholders' Equity

(in thousands, except share amounts)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Number of<br> Shares | Number of<br> Warrants | Common<br> Stock and<br> Additional<br> Paid-In<br> Capital | Retained<br> Earnings/<br> (Accumulated<br> Deficit) | Total |
|  Balance at September 30, 2021 | 35958759 | 4899497 | $256372 | $231675 | $488047 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock compensation expense |  |  | 2761 |  | 2761 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payment of tax withholding for RSUs | (147108) |  | (455) |  | (455) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restricted shares issued | 455303 |  | 100 |  | 100 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Employee share purchases | 109943 |  | 399 |  | 399 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net loss |  |  |  | (182678) | (182678) |
|  Balance at September 30, 2022 | 36376897 | 4899497 | $259177 | $48997 | $308174 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock compensation expense |  |  | 2275 |  | 2275 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payment of tax withholding for RSUs | (204486) |  | (363) |  | (363) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restricted shares issued | 585401 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; United Stock Issuance | 4042061 |  | 9782 |  | 9782 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Employee share purchases | 140453 |  | 284 |  | 284 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net loss |  |  |  | (120116) | (120116) |
|  Balance at September 30, 2023 | 40940326 | 4899497 | $271155 | $(71119) | $200036 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock compensation expense |  |  | 1329 |  | 1329 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payment of tax withholding for RSUs | (112698) |  | (138) |  | (138) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restricted shares issued | 448719 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Employee share purchases | 55372 |  | 30 |  | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net loss |  |  |  | (91015) | (91015) |
|  Balance at September 30, 2024 | 41331719 | 4899497 | $272376 | $(162134) | $110242 |

---

See accompanying notes to these consolidated financial statements.

------

MESA AIR GROUP, INC.

Consolidated Statements of Cash Flows

(in thousands)

---

| | | | |
|:---|:---|:---|:---|
|  | Year Ended September 30, | Year Ended September 30, | Year Ended September 30, |
|  | 2024 | 2023 | 2022 |
|  Cash flows from operating activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net (Loss)/Income | $(91015) | $(120116) | $(182678) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments to reconcile net loss to net cash flows provided by (used in) operating activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 40041 | 60359 | 81508 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock compensation expense | 1329 | 2275 | 2761 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized loss/(gain) on investments, net | 6145 | (5408) | 13715 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Realized gain on investments, net | (8032) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income taxes | (242) | (9304) | (52221) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of deferred credits | (1067) | 1535 | (852) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of debt discount and issuance costs and accretion of interest into long-term debt | 8334 | 6324 | 9681 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asset impairment | 73709 | 54343 | 171824 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Gain)/Loss on sale of assets | 682 | (7162) | (4723) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss/(Gain) on extinguishment of debt | (2954) | 1505 | 397 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on debt forgiveness | (10500) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 4277 | 2236 | 867 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in assets and liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivables | 2990 | (4275) | (811) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expendable parts and supplies | (1334) | (2530) | (2882) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses and other operating assets and liabilities | 4126 | (769) | (679) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | 13742 | 496 | (2772) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred heavy maintenance, net | (1637) | (1382) | (8066) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred revenue | (11068) | (3020) | (10432) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses and other liabilities | 7281 | (3938) | (3175) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease right-of-use assets and liabilities | (563) | 4740 | 1900 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) operating activities | 34244 | (24091) | 13362 |
|  Cash flows from investing activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital expenditures | (20313) | (36641) | (40814) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from (purchases of) investments in equity securities, net | 9617 |  | (200) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from sale of aircraft and engines, net of transaction costs | 158334 | 178644 | 50000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment transaction costs | (380) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receipt (payment) of equipment and other deposits | 1530 | 282 | (7621) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by investing activities | 148788 | 142285 | 1365 |
|  Cash flows from financing activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from long-term debt | 86855 | 60878 | 39811 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Principal payments on long-term debt and finance leases | (286299) | (203029) | (114910) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments of debt and warrant issuance costs |  | (917) | (2414) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from issuance of common stock under ESPP | 30 | 284 | 399 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt prepayment costs | (922) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payment of tax withholding for RSUs | (138) | (363) | (455) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash used in financing activities | (200474) | (143147) | (77569) |
|  Net change in cash, cash equivalents and restricted cash | (17442) | (24953) | (62842) |
|  Cash, cash equivalents and restricted cash at beginning of period | 36072 | 61025 | 123867 |
|  Cash, cash equivalents and restricted cash at end of period | $18630 | $36072 | $61025 |
|  Supplemental cash flow information |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash paid for interest | $31492 | $38410 | $24895 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash paid for income taxes, net | $— | $419 | $487 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease payments in operating cash flows | $4585 | $9476 | $36262 |
|  Supplemental non-cash operating activities |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Right-of-use assets obtained in exchange for lease liabilities | $419 | $2919 | $6286 |
|  Supplemental non-cash financing activities |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance lease obtained in exchange for lease liability | $— | $65481 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Principal payments in exchange for transfer of equity investment | $12610 | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Principal forgiven | $10500 | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of finance leases | $— | $— | $15122 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in warrants to purchase common stock | $— | $— | $3260 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued capital expenditures | $— | $196 | $1121 |

---

See accompanying notes to these consolidated financial statements.

------

MESA AIR GROUP, INC.

Notes to Consolidated Financial Statements

1. Organization and Operations

The Company

Headquartered in Phoenix, Arizona, Mesa Air Group, Inc. ("Mesa," the "Company," "we," "our," or "us") is the holding company of Mesa Airlines, a regional air carrier providing scheduled passenger service to 67 cities in 34 states, Cuba, and Mexico. As of September 30, 2024, Mesa operated a fleet of 67 regional aircraft consisting of 55 E-175 aircraft and 12 CRJ-900 aircraft with approximately 265 daily departures. Mesa's fleet were conducted under our CPA and FSA, leased to a third party, held for sale or maintained as operational spares during the fiscal year ended September 30, 2024. Mesa operates all of its flights as United Express flights pursuant to the terms of the CPA entered into with United. Prior to the voluntary wind-down of the FSA with DHL on March 1, 2024, Mesa also operated flights as DHL Express flights pursuant to the terms of the FSA. All of the Company's consolidated contract revenues for the fiscal years ended September 30, 2024 and 2023 were derived from operations associated with the United CPA, DHL FSA, leases of aircraft to a third party, and Mesa Pilot Development ("MPD"). The Company also generated contract revenues for the fiscal year ended September 30, 2023 from the Company's CPA with American prior to the wind-down and termination of the American CPA on April 3, 2023.

The United CPA involves a revenue-guarantee arrangement whereby United pays fixed-fees for each aircraft under contract, departure, flight hour (measured from takeoff to landing, excluding taxi time) or block hour (measured from takeoff to landing, including taxi time), and reimbursement of certain direct operating expenses in exchange for providing flight services. United also pays certain expenses directly to suppliers, such as fuel, ground operations and landing fees. Under the terms of the CPA, United controls route selection, pricing, and seat inventories, reducing our exposure to fluctuations in passenger traffic, fare levels, and fuel prices.

Liquidity and Going Concern

During our fiscal year ended September 30, 2024, the decrease in scheduled flying activity associated with the transition of our operations with American to United, increased costs associated with pilot wages, together with increasing interest rates adversely impacted our financial results, cash flows, financial position, and other key financial ratios. Additionally, United has asked us to accelerate the removal of our CRJ-900 aircraft and transition the pilots to our E-175 fleet. These events will lead to increased costs and impact our block hour capabilities while these pilots are in training.

As a result of the decrease in scheduled flying activity for United, we produced less block hours to generate revenues. During the fiscal year ended September 30, 2024, these challenges resulted in a negative impact on the Company's financial results highlighted by net loss of $91.0 million, primarily due to impairment expense of $73.7 million related to held for sale assets during the year. These conditions and events raised concerns about our ability to continue to fund our operations and meet our debt obligations over the next twelve months from the filing of this Form 10-K.

To address such concerns, management developed and implemented certain material changes to our business designed to ensure the Company could continue to fund its operations and meet its debt obligations over the next twelve months. The following measures were implemented during the year ended September 30, 2024, and through the date of issuance of the financial statements.

• On April 4, 2025, the Company entered into the Three Party Agreement between United, Republic, and the Company, which provides for, among other things, the following, each subject to the completion of the Merger Agreement:

• Termination of the United CPA.

------

• The Company to sell or dispose of all remaining Eligible Assets (as defined in the Three Party Agreement).

• The Company to extinguish all remaining debt with cash and sale of assets. Any remaining debt will be assumed by the surviving corporation or forgiven by United.

• A three percent (3%) increase in CPA block hour rates, retroactive to January 1, 2025.

• The transfer of all of the Company's rights and obligations under its agreements with Archer (as discussed in Note 17).

• On April 4, 2025, we entered into the Sixth Amendment to the Third Amended and Restated Capacity Purchase Agreement with United which provides for the following:

• The extension of the CPA rate increases agreed upon in the January 2024 United CPA Amendments, retroactive to January 1, 2025, through March 31, 2026.

• The extension of incentives for achieving certain performance metrics, retroactive to July 1, 2024, through March 31, 2026.

• On April 4, 2025, we entered into the Sixth Amendment to Second Amended and Restated Credit and Guaranty Agreement providing for the waiver of an existing financial covenant default with respect to the period ended March 31, 2025, and a projected financial covenant default with respect to the periods ending June 30, 2025, September 30, 2025, December 31, 2025, and March 31, 2026, each relating to a minimum liquidity requirement under our United Revolving Credit Facility.

• On April 3, 2025, we entered into a purchase agreement with a third party which provides for the sale of 23 GE model CF34-8C engines to the third party for expected gross proceeds of $16.3 million, which will be used to pay down our UST Loan.

• On December 31, 2024, we entered into an Aircraft Purchase Agreement with United which provides for the sale of 18 E-175 aircraft to United for gross proceeds of $227.7 million and net proceeds of $84.7 million after the retirement of debt. Subsequently, we closed the sale of all 18 aircraft to United.

• On December 30, 2024, we received notice from United that $4.5 million of our Effective Date Revolving Loan balance under our United Revolving Credit Facility has been forgiven for achieving certain operational performance metrics outlined in the United CPA.

• On December 24, 2024, we entered into a purchase agreement with a third party which provides for the sale of 15 CRJ-900 airframes to the third party for expected gross proceeds of $19.0 million, which will be used to pay down our UST Loan. On April 3, 2025, the purchase agreement was amended to include an additional 14 CRJ-900 airframes to be sold to the third party for expected gross proceeds of $9.1 million. The total expected gross proceeds of $28.1 million will be used to pay down our UST Loan.

• On December 23, 2024, we entered into an agreement with the UST to lower the minimum CCR covenant to .99 to 1.0 effective as of November 22, 2024 through February 28, 2025. After such date, the CCR will revert to 1.55 to 1.0. The agreement also requires the Company to use its reasonable best efforts to cause counterparties to all Receivables (as defined in the Treasury Loan) (whether or not constituting "Eligible Receivables" (as defined in the Treasury Loan)) of the Company to be paid to the Eligible Receivables Account (as defined in the Treasury Loan). Receivables generated from the sale of assets that are not Collateral (as defined in the Treasury Loan) are excluded from the scope of the foregoing requirement. As a result of the lower CCR covenant, we are in compliance with this covenant as of September 30, 2024. Additionally, on March 18, 2025, we entered into a new CCR Modification Agreement with the UST to lower the minimum CCR covenant to .91 to 1.0 effective as of February 28, 2025 through the maturity date of the loan.

• On December 23, 2024, we entered into a Waiver to Second Amended and Restated Credit and Guaranty Agreement providing for the waiver of an existing financial covenant default with respect to

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the period July 1, 2024 to December 23, 2024 and a projected financial covenant default with respect to the period December 24, 2024 to December 31, 2024, each relating to a minimum liquidity requirement under our United Revolving Credit Facility.

• On December 23, 2024, we entered into the Fourth Amendment to our Third Amended and Restated United CPA which provides for the following:

• Amended certain scheduled exit dates for our E-175 and CRJ-900 Covered Aircraft (as defined in the United CPA).

• Added provisions relating to the reimbursement by United of up to $14.0 million of pilot training costs incurred by the Company with respect to its E-175 aircraft.

• On September 25, 2024, we reached an agreement with United which provides for, among other things, the commitment to buy our two CRJ-700 aircraft out of their lease with GoJet and to purchase such aircraft for total proceeds of $11.0 million, $4.5 million of which will pay down the outstanding obligations. Subsequent to September 30, 2024, we closed the sale of the two CRJ-700 aircraft to United.

• Based on the most recent appraisal value of our spare parts, we have $12.4 million of borrowing capacity under our United Revolving Credit Facility.

• In addition to already executed agreements to sell aircraft, the Company is actively seeking arrangements to sell other surplus assets primarily related to the CRJ fleet including aircraft, engines, and spare parts to reduce debt and optimize operations.

• We have delayed and/or deferred major spending on aircraft and engine maintenance to match the current and projected level of flight activity.

The Company believes the plans and initiatives outlined above have effectively alleviated the financial concerns and will allow the Company to meet its cash obligations for the next twelve months following the issuance of its financial statements. The forecast of undiscounted cash flows prepared to determine if the Company has the ability to meet its cash obligations over the next twelve months was prepared with significant judgment and estimates of future cash flows based on projections of CPA block hours, maintenance events, labor costs, and other relevant factors. Assumptions used in the forecast may change or not occur as expected.

As of July 16, 2024, the Company was not in compliance with a financial covenant related to a minimum liquidity requirement of $15.0 million of cash and cash equivalents associated with its Second Amended and Restated Credit and Guaranty Agreement with United. On December 23, 2024, the Company entered into a Waiver to Second Amended and Restated Credit and Guaranty Agreement providing for the waiver for the financial covenant default with respect to the period July 1, 2024 to December 23, 2024 and a projected financial covenant default with respect to the period December 24, 2024 to December 31, 2024. Further, on April 4, 2025, the Company entered into the Sixth Amendment to Second Amended and Restated Credit and Guaranty Agreement providing for the waiver of an existing financial covenant default with respect to the period ended March 31, 2025, and a projected financial covenant default with respect to the periods ending June 30, 2025, September 30, 2025, December 31, 2025, and March 31, 2026. As of the issuance of this Form 10-K, we are in compliance with all financial covenants.

As of September 30, 2024, the Company had $50.5 million of principal maturity payments on long-term debt due within the next twelve months. Additionally, all outstanding principal amounts of $113.7 million as of September 30, 2024, under our UST Loan are due and payable in a single installment on October 30, 2025. We plan to meet these obligations with our cash on hand, ongoing cashflows from our operations, and the liquidity created from the additional measures identified above. If our plans are not realized, we intend to explore additional opportunities to create liquidity by refinancing and deferring repayment of our principal maturity payments that are due within the next twelve months. The Company continues to monitor covenant compliance

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with its lenders as any noncompliance could have a material impact on the Company's financial position, cash flows and results of operations. As of September 30, 2024, the Company is in compliance with all financial covenants. See Sources and Uses of Cash in "Part II. Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" for additional disclosure.

United Capacity Purchase Agreement

Under the United CPA, we currently have the ability to fly up to 67 aircraft for United. During the fiscal year ended September 30, 2024, United began exercising its right under Section 2.4(a) of the United CPA to remove CRJ-900 Covered Aircraft (as defined in the United CPA). 14 CRJ-900 aircraft were removed from the CPA, and the remaining 12 will be removed from the CPA by the end of February 2025. As of September 30, 2024 we operated 55 E-175 and 12 CRJ-900 aircraft under our United CPA. Under the United CPA, United owns 42 of our 60 E-175 aircraft. The E-175 aircraft owned by United and leased to us have terms expiring between 2024 and 2028, and the 18 E-175 aircraft owned by us have terms expiring in 2028.

In exchange for providing flight services under our United CPA, we receive a fixed monthly minimum amount per aircraft under contract plus certain additional amounts based upon the number of flights and block hours flown and the results of certain performance metrics. United also reimburses us for certain costs on an actual basis, including property tax per aircraft and passenger liability insurance. Other expenses, including fuel and certain landing fees, are directly paid to suppliers by United.

United reimburses us on a pass-through basis for certain costs related to heavy airframe and engine maintenance, landing gear, auxiliary power units ("APUs") and component maintenance for the aircraft owned by United. Our United CPA permits United, subject to certain conditions, including the payment of certain costs tied to aircraft type, to terminate the agreement in its discretion, or remove aircraft from service, by giving us notice of 90 days or more. If United elects to terminate our United CPA in its entirety or permanently remove select aircraft from service, we are permitted to return any of the affected aircraft leased from United at no cost to us. In addition, if United removes any of our 18 owned E-175 aircraft from service at its direction, United would remain obligated, at our option, to assume the aircraft ownership and associated debt with respect to such aircraft through the end of the term of the United CPA.

Subsequent to September 30, 2024, we amended our United CPA, providing for the following:

• The extension of the CPA rate increases agreed upon in the January 2024 United CPA Amendments through March 31, 2026.

• The extension of incentives for achieving certain performance metrics through March 2026.

• The commitment of a combined fleet of 60 CRJ-900 and E-175 aircraft through February 2025, and an entirely E-175 fleet by March 2025.

• Reimbursement of up to $14.0 million of expenses related to the transition to an entirely E-175 fleet.

• Amendment of certain scheduled exit dates for our E-175 and CRJ-900 Covered Aircraft (as defined in the United CPA).

On January 11, 2024 and January 19, 2024, we entered into the January 2024 United CPA Amendments which provide for the following:

• Increased CPA rates, retroactive to October 1, 2023 through December 31, 2024.

• Amended certain notice requirements for removal by United of up to eight CRJ-900 Covered Aircraft (as defined in the United CPA) from the United CPA.

• Extended United's existing utilization waiver for the Company's operation of E-175 and CRJ-900 Covered Aircraft (as defined in the United CPA) to June 30, 2024.

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Our United CPA is subject to early termination prior to its expiration in various circumstances including:

• If certain operational performance factors fall below a specified percentage for a specified time, subject to notice under certain circumstances;

• If we fail to perform the material covenants, agreements, terms or conditions of our United CPA or similar agreements with United, subject to 30 days' notice and cure rights;

• If either United or we become insolvent, file bankruptcy, or fail to pay debts when due, the non-defaulting party may terminate the agreement;

• If we merge with, or if control of us is acquired by another air carrier or a corporation directly or indirectly owning or controlling another air carrier;

• United, subject to certain conditions, including the payment of certain costs tied to aircraft type, may terminate the agreement in its discretion, or remove E-175 aircraft from service, by giving us notice of 90 days or more; and

• If United elects to terminate our United CPA in its entirety or permanently remove aircraft from service, we are permitted to return any of the affected E-175 aircraft leased from United at no cost to us.

DHL Flight Services Agreement

On December 20, 2019, we entered into a FSA with DHL (the "DHL FSA"). Under the terms of the DHL FSA, we operated four Boeing 737 aircraft to provide cargo air transportation services. In exchange for providing cargo flight services, we received a fee per block hour with a minimum block hour guarantee. We were eligible for a monthly performance bonus or subject to a monthly penalty based on timeliness and completion performance. Ground support expenses including fueling and airport fees were paid directly by DHL. On March 15, 2024, we entered into Amendment No. 3 to our DHL FSA which provided for the wind-down and termination of our flight operations on behalf of DHL. As part of this Amendment, we received $1.0 million for wind-down and associated costs.

2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP") and include the accounts of the Company and its wholly owned operating subsidiaries. Any reference in these notes to applicable guidance is meant to refer to the authoritative United States generally accepted accounting principles as found in the Accounting Standards Codification ("ASC") and Accounting Standards Update ("ASU") of the Financial Accounting Standards Board ("FASB"). All intercompany accounts and transactions have been eliminated in consolidation.

The consolidated financial statements have been prepared assuming the Company will continue as a going concern. The going concern assumption contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The Company generated a net loss of $91.0 million and had cash flow provided by operations of $34.2 million for the year ended September 30, 2024. As of September 30, 2024, the Company had a working capital deficit of $113.2 million, an accumulated deficit of $162.1 million, and cash and cash equivalents of $15.6 million.

The Company is evaluating strategies to obtain the required additional funding for future operations. These strategies may include, but are not limited to, issuing debt, entering into other financing arrangements, restructuring of operations to grow revenues and decrease expenses, or the sale of assets.

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Use of Estimates

The preparation of the Company's consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Actual results could differ from those estimates.

Segment Reporting

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing operating performance. In consideration of ASC 280, "Segment Reporting," we are not organized around specific services or geographic regions. We currently operate in one service line providing scheduled flying services in accordance with our CPA.

While we operate under our CPA, we do not manage our business based on any performance measure at the individual contract level. As of September 30, 2024, our chief operating decision maker ("CODM") was the Chief Executive Officer. Our CODM uses consolidated financial information to evaluate our performance, which is the same basis on which he communicates our results and performance to our Board of Directors. Our CODM bases all significant decisions regarding the allocation of our resources on a consolidated basis. Based on the information described above and in accordance with the applicable literature, management has concluded that we are organized and operated as one operating and reportable segment.

Cash and Cash Equivalents

The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents.

Restricted Cash

Restricted cash primarily includes deposits in trust accounts to collateralize letters of credit and to fund workers' compensation claims, landing fees, and other business needs. Restricted cash is stated at cost, which approximates fair value.

The Company has an agreement with a financial institution for a $6.0 million letter of credit facility to issue letters of credit for landing fees, workers' compensation insurance, and other business needs. Pursuant to such agreement, $3.0 million and $3.1 million of outstanding letters of credit are required to be collateralized by amounts on deposit as of September 30, 2024 and 2023, respectively, which are classified as restricted cash.

Cash, cash equivalents and restricted cash consist of the following:

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| | | |
|:---|:---|:---|
|  | September 30,<br> 2024 | September 30,<br> 2023 |
| Cash and cash equivalents | $15621 | $32940 |
| Restricted cash | 3009 | 3132 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cash, cash equivalents and restricted cash | $18630 | $36072 |

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Expendable Parts and Supplies

Expendable parts and supplies are stated at cost, less an allowance for obsolescence. The Company provides an allowance for obsolescence for such parts and supplies over the useful life of its aircraft after considering the

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useful life of each aircraft fleet, the estimated cost of expendable parts expected to be on hand at the end of the useful life, and the estimated salvage value of the parts. This allowance for expendable parts account was $4.7 million and $4.1 million as of September 30, 2024 and 2023, respectively.

Property and Equipment

Property and equipment are stated at cost, net of manufacturer incentives, and depreciated over their estimated useful lives to their estimated salvage values, which are 20% for aircraft and rotable spare parts, using the straight-line method.

Estimated useful lives of the various classifications of property and equipment are as follows:

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| | |
|:---|:---|
| Property and Equipment | Estimated Useful Life |
| Buildings | 30 years |
| Aircraft | 25 years from the manufacture date |
| Flight equipment | 7-20 years |
| Equipment | 5-9 years |
| Furniture and fixtures | 3-5 years |
| Vehicles | 5 years |
| Rotable spare parts | Life of the aircraft or term of the lease, whichever is less |
| Leasehold improvements | Life of the aircraft or term of the lease, whichever is less |

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Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the related carrying amount may be impaired. The Company records an impairment loss if (i) the undiscounted future cash flows are found to be less than the carrying amount of the asset or asset group, and (ii) the carrying amount of the asset or asset group exceeds its fair value. If an impairment loss has occurred, a charge is recorded to reduce the carrying amount of the asset to its estimated fair value.

To determine whether impairments exist for aircraft and other related assets used in operations, we group assets at the CPA level (i.e., the lowest level for which there are identifiable cash flows) and then estimate future cash flows based on projections of capacity purchase block hours, maintenance events, labor costs and other relevant factors. If an asset group is impaired, the impairment loss recognized is the amount by which the asset group's carrying amount exceeds its estimated fair value. We estimate aircraft fair values using published sources, appraisals and bids received from third parties, as available. Due to operating losses and the removal of CRJ-900 aircraft from the United CPA, we evaluated our United fleet as of September 30, 2024, and determined that future cash flows from the operation of our fleet through the remaining useful life exceeded the carrying value of the fleet. As such, no impairment expenses were recorded to our fleet. The Company did not recognize impairment expenses to our fleet during the fiscal years ended September 30, 2024 and 2023, and recognized $109.7 million in impairment on property and equipment and other long-lived assets for the fiscal year ended September 30, 2022.

Assets Held for Sale

We classify assets as held for sale when (i) our management approves and commits to a formal plan of sale that is probable of being completed within one year; (ii) the asset is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets; (iii) an active program to locate a buyer has been initiated; (iv) the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and (v) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or the plan will be withdrawn. Assets designated as held for sale are recorded at the lower of their current carrying value or their fair market value, less costs to sell, beginning in the period in which the assets meet the criteria to be classified as held for sale. If the market value, less costs to sell, is lower than the current carrying value, an impairment loss is recorded on the asset designated as held for sale. The Company recognized

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impairment expenses of $73.7 million, $50.6 million, and $62.1 million on assets designated as held for sale for the fiscal years ended September 30, 2024, 2023, and 2022, respectively. See Note 6—"Assets Held for Sale" for further discussion of our assets classified as held for sale as of September 30, 2024

Fair Value Measurements

The Company accounts for assets and liabilities in accordance with accounting standards that define fair value and establish a consistent framework for measuring fair value on either a recurring or a nonrecurring basis. Fair value is an exit price representing the amount that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability.

Accounting standards include disclosure requirements relating to the fair values used for certain financial instruments and establish a fair value hierarchy. The hierarchy prioritizes valuation inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Each fair value measurement is reported in one of three levels:

• Level 1—Observable inputs such as quoted prices in active markets for identical assets or liabilities;

• Level 2—Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and

• Level 3—Unobservable inputs in which there is little or no market data, requiring an entity to develop its own assumptions.

Debt Financing Costs

Debt financing costs consist of payments made to issue debt related to the purchase of aircraft, flight equipment, and certain flight equipment maintenance costs. The Company defers the costs and amortizes them to interest expense over the term of the debt agreement. Debt financing costs related to a recognized debt liability are presented as a direct deduction from the carrying amount of the related long-term debt on the consolidated balance sheet.

Other Assets

Other noncurrent assets primarily consist of a contract asset related to the issuance of equity to United as part of the United CPA. Upon entering into the United CPA and issuing equity to United, the Company recorded the contract asset at fair value of the shares issued to United. The contract asset is amortized as a reduction of revenue over the term of the CPA.

Lease incentives represent amounts paid or payable by Mesa to the lessee and are amortized as a reduction of lease revenue over the term of the lease. The current portion of the lease incentive assets is included in prepaid expenses and other current assets, and the non-current portion is included in other assets on the consolidated balance sheet.

Investments in equity securities with readily determinable fair values are adjusted to reflect the market value of the investments each reporting period, with corresponding gains and losses reflected in the statement of operations. Investments in equity securities without readily determinable values are measured at cost less impairment, if any, and are adjusted when there are observable prices of similar or identical investments from the same issuer.

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Income Taxes

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in future years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company records deferred tax assets for the value of benefits expected to be realized from the utilization of state and federal net operating loss carryforwards. The Company periodically reviews these assets to determine the likelihood of realization. To the extent the Company believes some portion of the benefit may not be realizable based on the available sources of income, an estimate of the unrealized position is made, and a valuation allowance is recorded. The Company and its consolidated subsidiaries file a consolidated federal income tax return.

Other Noncurrent Liabilities

Other noncurrent liabilities primarily consist of the non-current portion of lease incentive obligations and deposits related to the aircraft which Mesa leases to third parties and vendor credit liabilities for future purchases of electric aircraft.

Revenue Recognition

The Company recognizes revenue when the service is provided under its CPA. Under the CPA, United generally pays a fixed monthly minimum amount per aircraft, plus certain additional amounts based upon the number of flights and block hours flown. The contract also includes reimbursement of certain costs incurred by the Company in performing flight services. These costs, known as "pass-through costs," may include passenger liability insurance as well as aircraft property taxes and other flight service expenditures defined in our agreement. Additionally, for the E-175 aircraft owned by United, the CPA provides that United will reimburse the Company for heavy airframe and engine maintenance, landing gear, APUs and component maintenance. The Company also receives compensation under its CPA for heavy maintenance expenses at a fixed hourly rate or per aircraft rate for all aircraft in scheduled service other than the E-175 aircraft owned by United. The Company is eligible to receive incentive compensation upon the achievement of certain performance criteria defined in the agreement. At the end of each period during the term of an agreement, the Company calculates the incentives achieved during that period and recognizes revenue attributable to the agreement during the period accordingly, subject to the variable constraint guidance under ASC 606. All revenue recognized under the CPA is presented as the gross amount billed to United. Due to United's ownership in the Company (9.8% as of September 30, 2024), revenue recognized under the United CPA is considered related party revenue.

Under the United CPA, the Company has committed to perform various activities that can be generally classified into in-flight services and maintenance services. When evaluating these services, the Company determined that the nature of its promise is to provide a single integrated service, flight services, because its contracts require integration and assumption of risk associated with both services to effectively deliver and provide the flights as scheduled over the contract term. Therefore, the in-flight services and maintenance services are inputs to that combined integrated flight service. Both services occur over the term of the agreement and the performance of maintenance services significantly affects the utility of the in-flight services. The Company's individual flights flown under the CPA are deemed to be distinct and the flight service promised in the CPA represents a series of services that is accounted for as a single performance obligation. This single performance obligation is satisfied over time as the flights are completed. Therefore, revenue is recognized when each flight is completed.

In allocating the transaction price, variable payments (i.e., billings based on flights and block hours flown, pass-through costs, etc.) that relate specifically to the Company's efforts in performing flight services are recognized in the period in which the individual flight is completed. The Company has concluded that allocating

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the variability directly to the individual flights results in an overall allocation meeting the objectives in ASC 606. This results in a pattern of revenue recognition that follows the variable amounts billed from the Company to their customers.

A portion of the Company's compensation under its CPAs with United and previously American is designed to reimburse the Company for certain aircraft ownership costs. The Company has concluded that a component of its revenue under these agreements is deemed to be lease revenue, as such agreements identify the "right of use" of a specific type and number of aircraft over a stated period-of-time. The lease revenue associated with the Company's CPA is accounted for as an operating lease and is reflected as contract revenue on the Company's consolidated statements of operations and comprehensive loss. The Company recognized $123.0 million, $144.7 million, and $158.4 million of lease revenue for the fiscal years ended September 30, 2024, 2023, and 2022, respectively. The Company has not separately stated aircraft rental income and aircraft rental expense in the consolidated statements of operations and comprehensive loss because the use of the aircraft is not a separate activity of the total service provided.

The Company's CPA is renewable periodically and contain provisions pursuant to which the parties could terminate their respective agreements, subject to certain conditions, as described in Note 1. The CPA also contains terms with respect to covered aircraft, services provided, and compensation as described in Note 1. The CPA is amended from time to time to change, add, or delete terms of the agreements.

The Company's revenues could be impacted by a number of factors, including amendment or termination of its CPA, contract modifications resulting from contract renegotiations, its ability to earn incentive payments contemplated under applicable agreements, and settlement of reimbursement disputes with United. In the event contracted rates are not finalized at a quarterly or annual financial statement date, the Company evaluates the enforceability of its contractual terms and when it has an enforceable right, it estimates the amount the Company expects to be entitled subject to the variable constraint guidance under ASC 606.

The Company records deferred revenue when cash payments are received or are due from United in advance of the Company's performance. The deferred revenue balance as of September 30, 2024 of $9.6 million (current and non-current portion) represents our aggregate remaining performance obligations that will be recognized as revenue over the period in which the performance obligations are satisfied (as flights are completed over the remaining contract term). Deferrals of revenue and recognition of previously deferred revenue during fiscal year 2024 are shown below:

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| | |
|:---|:---|
|  | Revenue<br> Deferred/(Recognized) |
| Deferred revenue as of September 30, 2023 | $21047 |
| Fixed revenue deferrals | 3633 |
| Pass-through revenue deferrals | 2002 |
| Previously deferred fixed revenue recognized | (12653) |
| Previously deferred pass-through revenue recognized | (4390) |
| Deferred revenue as of September 30, 2024 | $9639 |

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Contract Liabilities

Contract liabilities consist of deferred credits representing upfront payments received from United related to aircraft modifications associated with the CPA and pilot training. The deferred credits are recognized over time depicting the pattern of transfer of the related services over the term of the CPA.

Current and non-current deferred credits are recorded to other accrued expenses and non-current deferred credits in the consolidated balance sheets, respectively. The Company's total current and non-current deferred

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credit balances at September 30, 2024 and September 30, 2023 were $4.1 million and $5.1 million, respectively. The Company recognized $1.8 million, $1.7 million, and $0.9 million of the deferred credits within contract revenue in the consolidated statements of operations and comprehensive loss during the fiscal years ended September 30, 2024, 2023, and 2022, respectively.

Contract Assets

The Company recognizes assets from the incremental costs incurred to obtain contracts with major partners including aircraft painting, aircraft reconfiguration, flight service personnel training costs, and the issuance of stock. These costs are amortized based on the pattern of transfer of the services in relation to flight hours over the term of the contract. Contract assets are recorded as other assets in the consolidated balance sheets. The Company's contract assets balance at September 30, 2024 and September 30, 2023 was approximately $6.1 million and $8.8 million, respectively. Contract cost amortization was approximately $2.7 million, $1.0 million, and zero for the fiscal years ended September 30, 2024, 2023, and 2022, respectively.

Maintenance Expense

The Company operates under an FAA approved continuous inspection and maintenance program. The cost of non-major scheduled inspections and repairs and routine maintenance costs for all aircraft and engines are charged to maintenance expense as incurred.

The Company accounts for heavy maintenance and major overhaul costs on its owned E-175 fleet under the deferral method whereby the cost of heavy maintenance and major overhaul is deferred and amortized until the earlier of the end of the useful life of the related asset or the next scheduled heavy maintenance event. Amortization of heavy maintenance and major overhaul costs charged to depreciation and amortization expense was approximately $3.2 million, $3.1 million, and $1.9 million for the fiscal years ended September 30, 2024, 2023, and 2022, respectively. At September 30, 2024 and September 30, 2023, the Company had a deferred heavy maintenance balance, net of accumulated amortization, of approximately $6.4 million and $8.0 million, respectively. The Company accounts for heavy maintenance and major overhaul costs for all other fleets under the direct expense method whereby costs are expensed to maintenance expense as incurred, except for certain maintenance contracts where labor and materials price risks have been transferred to the service provider and require payment on a utilization basis, such as flight hours. Costs incurred for maintenance and repair for utilization maintenance contracts where labor and materials price risks have been transferred to the service provider are charged to maintenance expense based on contractual payment terms. Our maintenance policy is determined by fleet when major maintenance is incurred.

Under the Company's aircraft operating lease agreements and FAA operating regulations, it is obligated to perform all required maintenance activities on its fleet, including component repairs, scheduled airframe checks and major engine restoration events. The Company estimates the timing of the next major maintenance event based on assumptions including estimated usage, FAA-mandated maintenance intervals, and average removal times as recommended by the manufacturer. The timing and the cost of maintenance are based on estimates, which can be impacted by changes in utilization of its aircraft, changes in government regulations and suggested manufacturer maintenance intervals. Major maintenance events consist of overhauls to major components.

Engine overhaul expense totaled approximately $23.0 million, $32.4 million, and $23.6 million for the fiscal years ended September 30, 2024, 2023, and 2022, respectively, of which approximately $23.5 million, $31.9 million, and $21.7 million, respectively, was pass-through expense. The Company received approximately $0.5 million from an insurance claim reimbursement during fiscal year 2024 which was net against engine overhaul expense. Airframe C-check expense totaled approximately $22.9 million, $23.4 million, and $22.1 million for the fiscal years ended September 30, 2024, 2023, and 2022, respectively, of which approximately $16.3 million, $16.9 million, and $3.2 million, respectively, was pass-through expense.

Pursuant to the United CPA, United reimburses the Company for heavy maintenance on certain E-175 aircraft. Those reimbursements are included in pass-through and other revenue. See Note 1—"Organization and Operations" for further information.

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Leases

We determine if an arrangement is a lease at inception. As a lessee, we have lease agreements with lease and non-lease components and have elected to account for such components as a single lease component. Our operating lease activities are recorded in operating lease right-of-use assets, current maturities of operating leases, and noncurrent operating lease liabilities in the consolidated balance sheets. Finance leases are reflected in property and equipment, net, current portion of long-term debt and finance leases, and long-term debt and finance leases, excluding current portion in the consolidated balance sheets.

Right-of-use ("ROU") assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. Variable lease payments are not included in the calculation of the right-of-use assets and lease liability due to uncertainty of the payment amount and are recorded as lease expense in the period incurred. As most of our leases do not provide an implicit rate, we use our estimated incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Operating lease costs are recognized on a straight-line basis over the lease term, while finance leases result in a front-loaded expense pattern.

To determine whether impairments exist for aircraft and other related assets used in operations, we group assets, including ROU assets, at the CPA level (i.e., the lowest level for which there are identifiable cash flows) and then estimate future cash flows based on projections of capacity purchase block hours, maintenance events, labor costs and other relevant factors. As all of our aircraft leases besides short-term aircraft leases are leased to us from United at nominal amounts and not recorded on our books, we did not assess leased aircraft for impairment. The Company did not record impairment losses for the fiscal years ended September 30, 2024 and 2023, and recorded a $10.5 million impairment loss for the fiscal year ended September 30, 2022.

As a lessee, we have elected a short-term lease practical expedient on all classes of underlying assets, permitting us to not apply the recognition requirements of this standard to leases with terms of 12 months or less.

Our CPA identifies the "right of use" of a specific type and number of aircraft over a stated period-of-time. A portion of the compensation under our CPA is designed to reimburse the Company, as lessor, for certain aircraft ownership costs of these aircraft. We account for the non-lease component under ASC 606 and account for the lease component under ASC 842. We allocate the consideration in the contract between the lease and non-lease components based on their stated contract prices, which is based on a cost basis approach representing our estimate of the stand-alone selling prices.

As discussed in Note 1, we lease, at nominal rates, certain aircraft from United under our United CPA, which are excluded from operating lease assets and liabilities as they do not represent embedded leases under ASC 842. Other than nominal leases with United, approximately 7% of our aircraft are leased from third parties, all of which are short-term leases. Our aircraft classified as operating leases results in rental payments being charged to expense over the term of the related leases. In the event that we or United decide to exit an activity involving leased aircraft, losses may be incurred. In the event that we exit an activity that results in exit losses, these losses are accrued as each aircraft is removed from operations for early termination penalties, lease settle up and other charges. Additionally, any remaining ROU assets and lease liabilities will be written off.

3. Contract Revenue and Pass-through and Other Revenue

The Company recognizes contract revenue when the service is provided under its CPA. Under the CPA, United generally pays for each departure, flight hour (measured from takeoff to landing, excluding taxi time) or block hour (measured from takeoff to landing, including taxi time) incurred, and an amount per aircraft in service

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each month with additional incentives based on flight completion, on-time performance, and other operating metrics. The Company's performance obligation is met when each flight is completed, and revenue is recognized and reflected in contract revenue.

The Company recognizes pass-through revenue when the service is provided under its CPA. Pass-through revenue represents reimbursements for certain direct expenses incurred including passenger liability insurance, property taxes, other direct costs defined within the CPA, and major maintenance on aircraft leased at nominal rates. The Company's performance obligation is met when each flight is completed or as the maintenance services are performed, and revenue is recognized and reflected in pass-through and other revenue.

The Company records deferred revenue when cash payments are received or are due from United in advance of the Company's performance, including amounts that are refundable. The Company recognized approximately $11.4 million and $3.0 million of previously deferred revenue during the fiscal years ended September 30, 2024 and 2023, respectively, which was billed to and paid by United as well as American prior to the wind-down of the American CPA during fiscal year 2023. Deferred revenue is recognized as flights are completed over the remaining contract term.

The deferred revenue balance as of September 30, 2024 represents our aggregate remaining performance obligations that will be recognized as revenue over the period in which the performance obligations are satisfied, and is expected to be recognized as revenue as follows (in thousands):

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| | |
|:---|:---|
| Periods Ending<br> September 30, | Total Revenue |
| 2025 | $3932 |
| 2026 | 2259 |
| 2027 | 2224 |
| 2028 | 1192 |
| Thereafter | 32 |
| Total | $9639 |

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A portion of the Company's compensation under its CPA with United is designed to reimburse the Company for certain aircraft ownership costs. Such costs include aircraft principal and interest debt service costs, aircraft depreciation, and interest expense or aircraft lease expense costs while the aircraft is under contract. The Company has concluded that a component of its revenue under this agreement is deemed to be lease revenue, as the agreement identifies the "right of use" of a specific type and number of aircraft over a stated period-of-time. We account for the non-lease component under ASC 606 and account for the lease component under ASC 842. We allocate the consideration in the contract between the lease and non-lease components based on their stated contract prices, which is based on a cost basis approach representing our estimate of the stand-alone selling prices.

The lease revenue associated with the Company's CPA is accounted for as an operating lease and is reflected as contract revenue on the Company's consolidated statements of operations and comprehensive loss. The Company recognized approximately $123.0 million, $144.7 million, and $158.4 million of lease revenue for the fiscal years ended September 30, 2024, 2023, and 2022, respectively. The Company has not separately stated aircraft rental income and aircraft rental expense in the consolidated statements of operations and comprehensive loss because the use of the aircraft is not a separate activity from the total service provided under our CPA.

The Company entered into lease agreements with GoJet Airlines LLC ("GoJet") to lease CRJ-700 aircraft as of September 30, 2021. The lease agreements are accounted for as operating leases and had a term of nine years beginning on the delivery date of each aircraft. Under the lease agreements, GoJet pays fixed monthly rent per aircraft and variable lease payments for supplemental rent based on monthly aircraft utilization at fixed rates.

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Supplemental rent payments are subject to reimbursement following GoJet's completion of qualifying maintenance events defined in the lease agreements. Lease revenue for fixed monthly rent payments is recognized on a straight-line basis within contract revenue. Lease revenue for supplemental rent is deferred and recognized within contract revenue when it is probable that amounts received will not be reimbursed for future qualifying maintenance events over the lease term. Subsequent to September 30, 2024, we entered into an agreement with United to buy the remaining aircraft out of their lease with GoJet.

The Company mitigated the residual asset risks through supplemental rent payments and by leasing aircraft and engine types that can be operated by the Company in the event of a default. Additionally, the operating leases included specified lease return condition requirements and the Company maintains inspection rights under the leases. Lease incentive obligations for reimbursements of certain aircraft maintenance costs are recognized as lease incentive assets and were amortized on a straight-line basis and recognized as a reduction to lease revenue over the lease term.

4. Recent Accounting Pronouncements

We continue to evaluate recent accounting pronouncements and the effect that new standards and guidance has on our consolidated financial statements. There are no recent accounting pronouncements that apply to the Company.

5. Concentrations of Credit Risk

Financial instruments that potentially expose the Company to a concentration of credit risk consist principally of cash and cash equivalents that are primarily held by financial institutions in the United States and accounts receivable. Amounts on deposit with a financial institution may at times exceed federally insured limits. The Company maintains its cash accounts with high credit quality financial institutions and, accordingly, minimal credit risk exists with respect to the financial institutions. As of September 30, 2024, the Company had $3.0 million in restricted cash. We have an agreement with a financial institution for a letter of credit facility and to issue letters of credit for particular airport authorities, worker's compensation insurance, property and casualty insurance and other business needs as required in certain lease agreements. Pursuant to the terms of this agreement, $3.0 million and $3.1 million of outstanding letters of credit are required to be collateralized by amounts on deposit as of September 30, 2024 and 2023, respectively, which are classified as restricted cash.

Significant customers are those which represent more than 10% of the Company's total revenue or net accounts receivable balance at each respective balance sheet date. Substantially all of the Company's consolidated revenue for the fiscal year ended September 30, 2024 was derived from the United CPA. Fiscal years ended September 30, 2023 and 2022 also generated substantial revenue from the American CPA. A large portion of the Company's receivables at the end of September 30, 2024 and 2023 was also derived from the United CPA.

Amounts billed by the Company under the United CPA are subject to the Company's interpretation of the applicable agreement and are subject to audit by United. Periodically, United disputes amounts billed and pay amounts less than the amount billed. Ultimate collection of the remaining amounts not only depends upon the Company prevailing under the applicable audit, but also upon the financial well-being of United. As such, the Company reviews amounts due based on historical collection trends, the financial condition of United, and current external market factors and records a reserve for amounts estimated to be uncollectible. The allowance for doubtful accounts was not material at September 30, 2024 and 2023, respectively. If the Company's ability to collect these receivables and the financial viability of our major partners is materially different than estimated, the Company's estimate of the allowance could be materially impacted.

American accounted for zero, 23%, and 45% of the Company's total revenue for the fiscal years ended September 30, 2024, 2023, and 2022, respectively. United accounted for approximately 97%, 73%, and 48% of

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the Company's total revenue for the fiscal years ended September 30, 2024, 2023, and 2022, respectively. A termination of the United CPA would have a material adverse effect on the Company's business prospects, financial condition, results of operations, and cash flows.

Significant vendors are those which represent more than 10% of the Company's total purchases during the year. The Company had two vendors, AAR and Standard Aero Holdings, Inc. ("Standard Aero") which individually represented more than 10% of the Company's purchases during the fiscal year ended September 30, 2024. AAR and Standard Aero accounted for approximately 18% and 11% of the Company's purchases during the year, respectively. A change to the operations of the Company's significant vendors could have a material adverse effect on the Company's financial condition, results of operations, and cash flows.

6. Assets Held for Sale

During the fiscal year ended September 30, 2024, management continued our plan to sell certain of our CRJ-900 aircraft and related parts. The Company completed the sale of 15 CRJ-900 aircraft that were held for sale as of September 30, 2023. Management determined that eight additional CRJ-900 aircraft, 26 CRJ-900 airframes (without engines), 77 GE Model CF34-8C engines, two CRJ-700 aircraft, and certain spare parts met the criteria to be classified as assets held for sale during the fiscal year ended September 30, 2024. We have a total of 26 airframes, 55 engines, two CRJ-700 aircraft, and certain spare parts classified as held for sale as of September 30, 2024. These assets are presented separately in our condensed consolidated balance sheet at the lower of their current carrying value or their fair market value less costs to sell. The fair values are based upon observable and unobservable inputs, including recent purchase offers and market trends and conditions. The assumptions used to determine the fair value of our assets held for sale, excluding agreed upon purchase offers, are subject to inherent uncertainty and could produce a wide range of outcomes which we will continue to monitor in future periods as new information becomes available. Prior to the ultimate sale of the assets, subsequent changes in our estimate of the fair value of our assets held for sale will be recorded as a gain or loss with a corresponding adjustment to the assets' carrying value. The Company recorded a total of $73.7 million of impairment associated with held for sale assets during the fiscal year ended September 30, 2024.

As of September 30, 2023, the Company had 15 CRJ-900 aircraft classified as held for sale. During the fiscal year ended September 30, 2024, the Company closed the sale of all 15 aircraft (seven of the aircraft were split up as seven airframes and 14 engines and sold to separate third parties) for gross proceeds of $71.5 million.

During the fiscal year ended September 30, 2024, the Company entered into the following agreements:

• 15 airframes (including the seven noted above) to a third party for gross proceeds of $18.8 million which were used to pay off our RASPRO finance lease obligations. The transaction is complete as of September 30, 2024.

• 30 engines (including the 14 noted above) to a third party for expected gross proceeds of $19.5 million. We have closed the sale of 29 of the engines as of September 30, 2024 for gross proceeds of $18.9 million, which were used to pay off our RASPRO finance lease obligations. We expect to close the sale of the remaining engine by the end of February 2025 for gross proceeds of $0.7 million.

• 23 engines to a third party for expected gross proceeds of $11.5 million. We have closed the sale of three of the engines as of September 30, 2024 for gross proceeds of $1.5 million, which were used to pay down our UST Loan.

• 12 engines to a third party for gross proceeds of $54.2 million. This transaction is complete as of September 30, 2024.

• Nine engines to a third party for expected gross proceeds of $8.8 million. This transaction is expected to be completed by September 30, 2024.

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• 14 engines to a third party for expected gross proceeds of $24.7 million. We have closed the sale of eight of the engines as of September 30, 2024 for gross proceeds of approximately $12.9 million and net proceeds of approximately $4.4 million after the paydown of debt.

• Two CRJ-700 aircraft to United for expected gross proceeds of $11.0 million. This transaction is expected to be completed by December 31, 2024.

Additionally it was determined that 26 airframes, 19 engines, and certain spare parts without an active purchase agreement met the criteria to be classified as held for sale. The Company expects to complete a sale of each of these assets within the next 12 months.

As of September 30, 2024, the Company had 26 CRJ-900 airframes, 55 engines, two CRJ-700 aircraft, and certain spare parts that were classified as assets held for sale with a net book value of $92.3 million, $5.7 million of which is classified as current assets on our condensed consolidated balance sheet and $86.6 million of which is classified as noncurrent assets on our condensed consolidated balance sheet.

7. Balance Sheet Information

Certain significant amounts included in the Company's consolidated balance sheets as of September 30, 2024 and 2023, consisted of the following (in thousands):

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| | | |
|:---|:---|:---|
|  | September 30,<br> 2024 | September 30,<br> 2023 |
| Expendable parts and supplies, net: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expendable parts and supplies | $39089 | $39630 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: expendable parts warranty | (6079) | (6295) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: obsolescence | (4738) | (4090) |
|  | $28272 | $29245 |
| Prepaid expenses and other current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid aviation insurance | $740 | $3176 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid vendors | 966 | 143 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid other insurance | 1066 | 1205 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease incentives | 143 | 1125 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid fuel and other | 456 | 1645 |
|  | $3371 | $7294 |
| Property and equipment, net: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Aircraft and other flight equipment | $591421 | $1039782 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other equipment | 9503 | 9421 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total property and equipment | 600924 | 1049203 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: accumulated depreciation | (174573) | (351181) |
|  | $426351 | $698022 |
| Other assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments in equity securities | $300 | $20320 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease incentives | 812 | 954 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contract asset | 6081 | 8756 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 516 | 516 |
|  | $7709 | $30546 |

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| | | |
|:---|:---|:---|
|  | September 30,<br> 2024 | September 30,<br> 2023 |
| Other accrued expenses: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued property taxes | $4650 | $5281 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued interest | 2997 | 3447 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued vacation | 7421 | 6763 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued lodging | 4433 | 3984 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued maintenance | 2493 | 2117 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued employee benefits | 1075 | 1450 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued fleet operating expense | 2751 | 650 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 6488 | 3309 |
|  | $32308 | $27001 |
| Other noncurrent liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Warrant liabilities | $25225 | $25225 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease incentive obligations | 1050 | 1050 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term employee benefits | 485 | 429 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 1819 | 1818 |
|  | $28579 | $28522 |

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Depreciation Expense on Property and Equipment

Depreciation expense on property and equipment totaled $40.0 million, $60.2 million, and $80.5 million for the fiscal years ended September 30, 2024, 2023, and 2022, respectively.

Other Assets

In connection with a negotiated forward purchase contract for electrically-powered vertical takeoff and landing aircraft ("eVTOL aircraft") executed in February 2021, we obtained equity warrant assets giving us the right to acquire a number shares of common stock in Archer Aviation, Inc. ("Archer"), which at the time of our initial investment was a private, venture-backed company. As the initial investment in Archer did not have a readily determinable fair value, we accounted for this investment using the measurement alternative under ASC 321, Investments – Equity Securities, and measured the investments at cost less impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments from the same issuer. We estimated the initial equity warrant asset value to be $16.4 million based on publicly available information as of the grant date. In September 2021, the merger between Archer and a special purpose acquisition company ("SPAC") was completed, resulting in a readily determinable fair value of our investments in Archer. Accordingly, gains and losses associated with changes in the fair value of our investments in Archer are reported in earnings, in accordance with ASC 321.

The initial grant date value of the warrants, $16.4 million, was recognized as a vendor credit liability within other noncurrent liabilities. The liability related to the warrant assets will be settled in the future, as a reduction of the acquisition date value of the eVTOL aircraft contemplated in the related aircraft purchase agreement.

In connection with closing of the merger between Archer and the SPAC described above, in September 2021, we purchased 500,000 Class A common shares in Archer for $5.0 million and obtained an additional warrant to purchase shares of Archer with a total grant date value of $5.6 million. The initial value of the warrants was recognized as a vendor credit liability within other noncurrent liabilities, and will be settled in the future, as a reduction of the acquisition date value of the eVTOL aircraft contemplated in the related aircraft purchase agreement. Because these investments have readily determinable fair values, gains and losses resulting from changes in fair value of the investments are reflected in earnings, in accordance with ASC 321. All of our vested warrants have been exercised into shares of Archer common stock.

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The fair values of the Company's investments in Archer are Level 1 within the fair value hierarchy as the values are determined using quoted prices for the equity securities. The Company recorded a $2.7 million unrealized loss and a $5.6 million unrealized gain on the investment in Archer during the fiscal years ended September 30, 2024 and 2023, respectively. During the fiscal year ended September 30, 2024, the Company sold substantially all of its shares of Archer for approximately $9.6 million in proceeds and recorded a $0.8 million gain on the sale.

In connection with a negotiated forward purchase contract for fully electric aircraft executed in July 2021, we obtained $5.0 million of preferred stock in Heart Aerospace Incorporated ("Heart"), a privately held company. Our investment in Heart does not have a readily determinable fair value, so we account for the investment using the measurement alternative under ASC 321 and measure the investment at initial cost less impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments from the same issuer. We consider a range of factors when adjusting the fair value of these investments, including, but not limited to, the term and nature of the investment, local market conditions, values for comparable securities, current and projected operating performance, financing transactions subsequent to the acquisition of the investment, or other features that indicate a change to fair value is warranted. Any changes in fair value from the initial cost of the investment in preferred stock are recognized as increases or decreases on our balance sheet and as net gains or losses on investments in equity securities. The initial investment in preferred stock was measured at cost of $5.0 million. During the fiscal year ended September 30, 2024, the Company transferred its vested investment in Heart to United in exchange for $12.6 million in debt reduction, and realized a gain on the investment of $7.2 million, net of transaction costs.

In connection with a negotiated forward purchase contract for hybrid-electric vertical takeoff and landing ("VTOL") aircraft executed in February 2022, we obtained a warrant giving us the right to acquire a number of shares of common stock in the privately-held manufacturer of the VTOL aircraft. These investments did not have a readily determinable fair value, so we originally accounted for them using the measurement alternative under ASC 321, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments from the same issuer. We estimated the initial warrant asset value to be $3.2 million based on prices of similar investments in the same issuer. The grant date value of the warrants, $3.2 million, was recognized as a vendor credit liability within other noncurrent liabilities. The liability related to the warrant assets will be settled in the future, as a reduction of the acquisition date value of the VTOL aircraft contemplated in the related forward purchase agreement.

On March 12, 2024, the privately-held manufacturer of the VTOL aircraft, XTI Aerospace, Inc. ("XTIA"), and its merger subsidiary completed their merger agreement, and began trading as XTIA on the Nasdaq Composite on March 13, 2024, resulting in a readily determinable fair value on our investment in XTIA. The fair values of the Company's investments in XTIA are now Level 1 within the fair value hierarchy as the values are determined using quoted prices for the equity securities. The Company recorded a $3.5 million unrealized loss on the investment in XTIA during the fiscal year ended September 30, 2024. The total value of the investment in XTIA is $0.1 million as of September 30, 2024.

Total net unrealized (loss)/gain on our investments in equity securities totaled $(6.1) million and $5.4 million for the fiscal years ended September 30, 2024 and 2023, respectively, and are reflected in unrealized (loss)/gain on investments, net in our condensed consolidated statements of operations and comprehensive loss. Total realized gain on our investments in equity securities totaled $8.0 million, net of transaction costs, for the fiscal year ended September 30, 2024, and are reflected in gain on investments in our condensed consolidated statements of operation and comprehensive loss. There was no realized gain or loss on investments in equity securities during the fiscal year ended September 30, 2023. As of September 30, 2024 and September 30, 2023, the aggregate carrying amount of our investments in equity securities was $0.3 million and $20.3 million, respectively, and the carrying amount of our investments without readily determinable fair values was $0.3 million and $8.8 million, respectively.

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8. Fair Value Measurements

Other than our assets held for sale and investments in equity securities described in Notes 6 and 7, respectively, we did not measure any of our assets or liabilities at fair value on a recurring or nonrecurring basis as of September 30, 2024 and 2023.

The carrying values of cash and cash equivalents, restricted cash, accounts receivable, and accounts payable included on the consolidated balance sheets approximated fair value at September 30, 2024 and 2023 because of the immediate or short-term maturity of these financial instruments.

The Company's debt agreements are not traded on an active market. The Company has determined the estimated fair value of its debt to be Level 3, as certain inputs used to determine the fair value of these agreements are unobservable and, therefore, could be sensitive to changes in inputs. The Company utilizes the discounted cash flow method to estimate the fair value of Level 3 debt.

The carrying value and estimated fair value of the Company's long-term debt, including current maturities, were as follows (in millions):

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| | | | | |
|:---|:---|:---|:---|:---|
|  | September 30, 2024 | September 30, 2024 | September 30, 2023 | September 30, 2023 |
|  | Carrying<br> Value | Fair<br> Value | Carrying<br> Value | Fair<br> Value |
|  Long-term debt and finance leases, including current maturities<sup>(1)</sup> | $315.2 | $305.3 | $538.3 | $493.6 |

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<sup>(1)</sup> Current and prior period long-term debts' carrying and fair values exclude net debt issuance costs.

9. Long-Term Debt, Finance Leases, and Other Borrowings

Long-term debt as of September 30, 2024 and 2023, consisted of the following (in thousands):

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| | | |
|:---|:---|:---|
|  | September 30,<br> 2024 | September 30,<br> 2023 |
|  Senior and subordinated notes payable to secured parties, due in monthly installments, interest based on SOFR plus interest spread at 2.71% through 2027, collateralized by the underlying aircraft | $— | $39018 |
|  Notes payable to secured parties, due in semi-annual installments, interest based on fixed interest of 4.75% to 6.25% through 2028, collateralized by the underlying aircraft | 85469 | 108815 |
|  Notes payable to secured parties, due in quarterly installments, interest based on SOFR plus interest at spread 2.20% to 2.32% for senior note & 4.50% for subordinated note through 2028, collateralized by the underlying aircraft | 73884 | 90401 |
|  United Revolving credit facility, quarterly interest based on SOFR plus interest spread at 4.50% through 2028 | 37520 | 40630 |
|  United Bridge Loan—due in quarterly installments based on SOFR plus interest spread at 4.50% through 2024 |  | 10500 |
|  Other obligations due to financial institution, monthly and/or quarterly interest due from 2022 through 2027, collateralized by the underlying equipment | 4681 | 67637 |
|  Notes payable to financial institution, due in monthly installments, interest based on SOFR plus interest spread at 3.10% through 2024, collateralized by the underlying equipment |  | 1075 |

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| | | |
|:---|:---|:---|
|  | September 30,<br> 2024 | September 30,<br> 2023 |
|  Notes payable to financial institution, due in monthly installments, interest based on fixed interest of 7.50%, through 2027, collateralized by the underlying equipment |  | 41098 |
|  Notes payable to the UST, quarterly interest based on SOFR plus interest spread at 3.50% through 2025 | 113656 | 139100 |
|  Gross long-term debt, including current maturities | 315210 | 538274 |
|  Less unamortized debt issuance costs | (2395) | (5083) |
|  Less notes payable warrants | (2544) | (4913) |
|  Net long-term debt, including current maturities | 310271 | 528278 |
|  Less current portion, net of unamortized debt issuance costs | (50455) | (163550) |
|  Net long-term debt | $259816 | $364728 |

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Principal maturities of long-term debt as of September 30, 2024, and for each of the next five years are as follows (in thousands):

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| | |
|:---|:---|
| **Periods Ending September 30,** | **Total Principal** |
| 2025 | $51085 |
| 2026 | 166454 |
| 2027 | 52552 |
| 2028 | 30869 |
| 2029 | 14250 |
|  | $315210 |

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The net book value of collateralized aircraft and equipment as of September 30, 2024 was $438.4 million.

Enhanced Equipment Trust Certificate ("EETC")

The proceeds of the issuance of the pass-through certificates were used to purchase equipment notes which were issued by Mesa and secured by its aircraft. The payment obligations under the equipment notes are those of Mesa. Proceeds received from the sale of pass-through certificates were initially held by a depositary in escrow for the benefit of the certificate holders until Mesa issued equipment notes to the trust, which purchased such notes with a portion of the escrowed funds.

Mesa evaluated whether the pass-through trust formed for its EETC financing is a variable interest entity ("VIE") and required to be consolidated. The pass-through trust was determined to be a VIE; however, the Company has determined that it is not the primary beneficiary of the pass-through trust, and therefore, has not consolidated the pass-through trust with its financial statements.

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United Revolving Credit Facility

On December 27, 2022, in connection with entering into the Amended and Restated United CPA, (i) United agreed to purchase and assume all of First Citizens' rights and obligations as a lender under the Existing Facility pursuant to an Assignment and Assumption Agreement, (ii) United and CIT Bank agreed to amend the Existing Facility pursuant to an Amendment No. 1, dated December 27, 2022 ("Amendment No. 1"), and an Amendment No. 2, dated January 27, 2023 ("Amendment No. 2"; the Existing Facility as amended by Amendment No. 1 and Amendment No. 2, the "Amended Facility"), and (iii) Wilmington Trust, National Association agreed to assume all of CIT Bank's rights and obligations as Administrative Agent pursuant to an Agency Resignation, Appointment and Assumption Agreement, dated as of January 27, 2023. Amendment No. 1, among other things, extends the Maturity Date from the earlier to occur of November 30, 2028, or the date of the termination of the Amended and Restated United CPA; provides for a revolving loan of $10.5 million plus fees and expenses, which is due January 31, 2024, subject to certain mandatory prepayment requirements; provides for Revolving Commitments equal to $30.7 million plus the original principal amount of the $10.5 million revolving loan; amortization of the obligations outstanding under the existing CIT Agreement commencing quarterly until March 31, 2025; and a covenant capping Restricted Payments (as defined in the Amended Facility) at $5.0 million per fiscal year, a consolidated interest and rental coverage ratio of 1.00 to 1.00 covenant, and a Liquidity (as defined in the Amended Facility) requirement of not less than $15.0 million at the close of any business day. Interest assessed under the Amended Facility is 3.50% for Base Rate Loans and 4.50% for Term SOFR Loans (as such terms are defined in the Amended Facility). Amendment No. 2, among other things, amends the definition of Controlled Account (as defined in the Amended Facility). Amounts borrowed under this Amended Facility are secured by a collateral pool consisting of a combination of expendable parts, rotable parts and engines and a pledge of the Company's stock in certain aviation companies. United funded $25.5 million as of the closing date of Amendment No. 1, to be used for general corporate purposes.

The United line of credit contains an additional deemed prepayment of $15 million with potential forgiveness upon the achievement of a certain number of block hours as well as maintaining a CCF of at least 99.3% over any rolling four-month period from January 2023 through December 2024. In order to earn forgiveness on the deemed prepayment, we must also have repaid the bridge loan in full. During the fiscal year ended September 30, 2024, the bridge loan was repaid in full, and $10.5 million of the potential $15.0 million achieved was recognized as a deemed prepayment and recorded as a gain on debt forgiveness. $4.5 million of the deemed prepayment remained outstanding as of September 30, 2024.

On September 6, 2023, the Company amended the existing United Credit Facility to (i) permit the Company to re-draw approximately $7.9 million of the Effective Date Bridge Loan (as defined in the United Credit Facility) previously repaid; (ii) increased the amount of Revolving Commitments (as defined in the United Credit Facility) from $30.7 million to $50.7 million, in each case, plus the original principal amount of the Effective Date Bridge Loan and subject to the Borrowing Base (as defined in the United Credit Facility); and (iii) amended the calculation of the Borrowing Base. Amounts borrowed under this facility bear interest at 3.50% for Base Rate Loans and 4.50% per annum for Term SOFR Loans. Amounts borrowed under the Amended Credit Facility are secured by a collateral pool consisting of a combination of expendable parts, rotable parts and engines, a pledge of certain of the Company's bank accounts and a pledge of the Company's stock in certain aviation companies.

On January 11, 2024 and January 19, 2024, we entered into the January 2024 United CPA Amendments providing for the following:

• The repayment in full of the Company's $10.5 million Effective Date Bridge Loan obligations, and the prepayment (and corresponding reduction) of approximately $2.1 million in Revolving Loans (as defined therein), with the proceeds from the sale, assignment, or transfer of the Company's vested investment in Heart.

• As a result of the repayment of the Effective Date Bridge Loan and pay down of the Revolving Loans, the shares of capital stock of Archer held by the Company were released as collateral for the United credit facility.

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• The waiver of certain financial covenant defaults with respect to the fiscal quarters ended June 30, 2023, September 30, 2023, and December 31, 2023 and the waiver of projected financial covenant defaults with respect to the fiscal quarter ending March 31, 2024.

• An increase in the Applicable Margin (as defined in the United credit facility) during a specified period of time for borrowings under the Credit Agreement.

• Loan prepayment requirements in connection with the sale of four specified aircraft engines and the addition of such engines as collateral for the United credit facility for a specified period of time.

On May 8, 2024, we entered into a Waiver Agreement to our Second Amended and Restated Credit and Guaranty Agreement providing for the waiver of a certain projected financial covenant default with respect to the fiscal quarter ending June 30, 2024.

As of July 16, 2024, the Company was not in compliance with a financial covenant related to a minimum liquidity requirement of $15.0 million of cash and cash equivalents associated with its Second Amended and Restated Credit and Guaranty Agreement with United. On December 23, 2024, the Company entered into a Waiver to Second Amended and Restated Credit and Guaranty Agreement providing for the waiver for the financial covenant default with respect to the period July 1, 2024 to December 23, 2024 and a projected financial covenant default with respect to the period December 24, 2024 to December 31, 2024. As of the issuance of this Form 10-K, we are in compliance with all financial covenants.

Loan Agreement with the United States Department of the Treasury

On October 30, 2020, the Company entered into a Loan and Guarantee Agreement with U.S. Department of the Treasury (the "U.S. Treasury") for a secured loan facility of up to $200.0 million that matures in October 2025 ("the Treasury Loan"). On October 30, 2020, the Company borrowed $43.0 million and on November 13, 2020, the Company borrowed an additional $152.0 million. No further borrowings are available under the Treasury Loan. The Company also issued warrants to purchase shares of common stock to the U.S. Treasury.

The Treasury Loan bears interest at a variable rate equal to (a)(i) the SOFR rate divided by (ii) one minus the Eurodollar Reserve Percentage plus (b) 3.50%. Accrued interest on the loans is payable in arrears on the first business day following the 14th day of each March, June, September, and December, beginning with December 15, 2020.

All principal amounts outstanding under the Treasury Loan are due and payable in a single installment on October 30, 2025 (the "Maturity Date"). Interest is paid in kind by increasing the principal amount of the loan by the amount of such interest due on an interest payment date for the first 12 months of the loan. Mesa's obligations under the Treasury Loan are secured by certain aircraft, aircraft engines, accounts receivable, ground service equipment, and tooling (collectively, the "Collateral"). The obligations under the Treasury Loan are guaranteed by the Company and Mesa Air Group Inventory Management. The proceeds were used for general corporate purposes and operating expenses, to the extent permitted by the CARES Act. Voluntary prepayments of loans under the Treasury Loan may be made, in whole or in part, by Mesa Airlines, without premium or penalty, at any time and from time to time. Amounts prepaid may not be reborrowed. Mandatory prepayments of loans under the Treasury Loan are required, without premium or penalty, to the extent necessary to comply with the covenants discussed below, certain dispositions of the Collateral, certain debt issuances secured by liens on the Collateral and certain insurance payments related to the Collateral. In addition, if a "change of control" (as defined in the Treasury Loan) occurs with respect to Mesa Airlines, Mesa Airlines will be required to repay the loans outstanding under the Treasury Loan.

The Treasury Loan requires the Company, under certain circumstances, including within 10 business days prior to the last business day of March and September of each year beginning March 2021, to appraise the value of the Collateral and recalculate the collateral coverage ratio. If the calculated collateral coverage ratio is less than

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1.55 to 1.0, Mesa Airlines will be required either to provide additional Collateral (which may include cash collateral) to secure its obligations under the Treasury Loan or repay the term loans under the Treasury Loan, in such amounts that the recalculated collateral coverage ratio, after giving effect to any such additional Collateral or repayment, is at least 1.55 to 1.0. On September 23, 2024, we entered into the CCR Modification Agreement to reduce our required minimum CCR to 1.44 to 1.0 through November 22, 2024, after which, the required minimum CCR will revert back to 1.55 to 1.0.

The Treasury Loan contains two financial covenants, a minimum collateral coverage ratio and a minimum liquidity level. The Treasury Loan also contains customary negative and affirmative covenants for credit facilities of this type, including, among others: (a) limitations on dividends and distributions; (b) limitations on the creation of certain liens; (c) restrictions on certain dispositions, investments and acquisitions; (d) limitations on transactions with affiliates; (e) restrictions on fundamental changes to the business, and (f) restrictions on lobbying activities. Additionally, the Company is required to comply with the relevant provisions of the CARES Act, including limits on employment level reductions after September 30, 2020, restrictions on dividends and stock buybacks, limitations on executive compensation, and requirements to maintain certain levels of scheduled service.

In connection with the Treasury Loan and as partial compensation to the U.S. Treasury for the provision of financial assistance under the Treasury Loan, the Company issued to the U.S. Treasury warrants to purchase an aggregate of 4,899,497 shares of the Company's common stock at an exercise price of $3.98 per share, which was the closing price of the Common Stock on The Nasdaq Stock Market on April 9, 2020. The exercise price and number of shares of common stock issuable under the Warrants are subject to adjustment as a result of anti-dilution provisions contained in the Warrants for certain stock issuances, dividends, and other corporate actions. The warrants expire on the fifth anniversary of the date of issuance and are exercisable either through net share settlement or net cash settlement, at the Company's option. For accounting purposes, the fair value for the Warrant was estimated using a Black-Scholes option pricing model and recorded in stockholders' equity with an offsetting debt discount to the Treasury Loan in the consolidated balance sheet.

The Company incurred $3.1 million in debt issuance costs relating to the Treasury Loan. In accordance with the applicable guidance, Mesa allocated the debt issuance costs between the Treasury Loan and related warrants. At funding on October 30, 2020, the initial $43.0 million was recorded net of $0.7 million in capitalized debt issuance costs. At funding on November 13, 2020, the remaining $152.0 million was recorded net of $2.3 million in capitalized debt issuance costs. The remaining $0.1 million in debt issuance costs was allocated to the warrants as a reduction to the warrant value within additional paid-in capital. Debt issuance costs allocated to the debt are amortized into interest expense using the effective interest method over the term of the related loan.

As of September 30, 2024, Mesa has $113.7 million outstanding under the Treasury Loan. $25.4 million in principal payments were made during the year.

10. Loss Per Share

Calculations of net loss per common share were as follows (in thousands, except per share data):

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| | | | |
|:---|:---|:---|:---|
|  | Year Ended September 30, | Year Ended September 30, | Year Ended September 30, |
|  | 2024 | 2023 | 2022 |
|  Net loss | $(91015) | $(120116) | $(182678) |
|  Basic weighted average common shares outstanding | 41137 | 39465 | 36133 |
|  Diluted weighted average common shares outstanding | 41137 | 39465 | 36133 |
|  Net loss per common share attributable to Mesa Air Group: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic | $(2.21) | $(3.04) | $(5.06) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted | $(2.21) | $(3.04) | $(5.06) |

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Basic loss per common share is computed by dividing net loss attributable to Mesa Air Group by the weighted average number of common shares outstanding during the period.

The number of incremental shares from the assumed issuance of shares relating to restricted stock and exercise of warrants (excluding warrants with a nominal conversion price) is calculated by applying the treasury stock method. Share-based awards and warrants whose impact is considered to be anti-dilutive under the treasury stock method were excluded from the diluted net loss per share calculation. In loss periods, these incremental shares are excluded from the calculation of diluted loss per share, as the inclusion of unvested restricted stock and warrants would have an anti-dilutive effect.

The following number of weighted-average potentially dilutive shares (in thousands) were excluded from the calculation of diluted net loss per share because the effect of including such potentially dilutive shares would have been anti-dilutive:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Year Ended September 30, | Year Ended September 30, | Year Ended September 30, | Year Ended September 30, |
|  | 2024 | 2023 | 2022 | 2022 |
|  Warrants |  |  |  | 758 |
|  Restricted stock |  |  |  | 106 |
|  |  |  |  | 864 |

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11. Common Stock

In connection with the Treasury Loan and as partial compensation to the U.S. Treasury for the provision of financial assistance under the Treasury Loan, the Company issued warrants to the U.S. Treasury to purchase shares of the Company's common stock, no par value, at an exercise price of $3.98 per share (the "Exercise Price"), which was the closing price of the common stock on The Nasdaq Stock Market on April 9, 2020. The warrants were issued pursuant to the terms of a Treasury Warrant Agreement entered into by the Company and the U.S. Treasury. The exercise price and number of warrant shares issuable under the warrants are subject to adjustment as a result of anti-dilution provisions contained in the warrants for certain stock issuances, dividends, and other corporate actions. The warrants expire on the fifth anniversary of the date of issuance and are exercisable either through net share settlement or net cash settlement, at the Company's option. The warrants are accounted for within equity at a grant date fair value determined under the Black-Scholes Option Pricing Model. As of September 30, 2024, 4,899,497 warrants were issued and outstanding. Subsequent changes in fair value are not recognized as long as the warrants outstanding continue to be classified in equity.

The Company has not historically paid dividends on shares of its common stock. Additionally, the UST Loan contains restrictions that limit the Company's ability to or prohibit it from paying dividends to holders of its common stock.

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12. Income Taxes

The provision for income taxes consists of the following:

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| | | | |
|:---|:---|:---|:---|
|  | Year Ended September 30, | Year Ended September 30, | Year Ended September 30, |
|  | 2024 | 2023 | 2022 |
|  | (in thousands) | (in thousands) | (in thousands) |
|  Current |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Federal | $— | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; State | 761 | 560 | 231 |
|  | $761 | $560 | $231 |
|  Deferred |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Federal | (494) | (7392) | (47879) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; State | 252 | (1913) | (4342) |
|  | $(242) | $(9305) | $(52221) |
|  Provision/(Benefit) for income taxes | $519 | $(8745) | $(51990) |

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The reconciliation between the effective tax rate on income from continuing operations and the statutory tax rate is as follows:

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| | | | |
|:---|:---|:---|:---|
|  | Year Ended September 30, | Year Ended September 30, | Year Ended September 30, |
|  | 2024 | 2023 | 2022 |
|  | (in thousands) | (in thousands) | (in thousands) |
|  Income tax (benefit) provision at federal statutory rate | $(19004) | $(26555) | $(49280) |
| (Reduction) increase in income taxes resulting from: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; State taxes, net of federal tax benefit | (1321) | (2062) | (3953) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nondeductible stock compensation expenses | 173 | 313 | 251 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Permanent items | 232 | 225 | 206 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change in valuation allowances | 20141 | 18201 | (22) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 162(m) limitation | 67 | 285 | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impact of changing rates on deferred tax assets | 501 | 499 | (247) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expired tax attributes | (612) | 200 | 964 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 342 | 149 | 80 |
|  Income tax provision (benefit) | $519 | $(8745) | $(51990) |

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The components of the Company's deferred taxes as of September 30, 2024 and 2023 are as follows:

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| | | |
|:---|:---|:---|
|  | Year Ended September 30, | Year Ended September 30, |
|  | 2024 | 2023 |
|  | (in thousands) | (in thousands) |
|  Net operating loss carryforwards | $114366 | $125306 |
|  Deferred credits | 695 | 1057 |
|  Other accrued expenses | 1562 | 1234 |
|  Prepaids and other | 252 | 556 |
|  Warrant liabilities | 5767 | 5748 |
|  Other reserves and estimated losses | 1090 | 937 |
|  Operating lease liabilities | 2306 | 2991 |
|  Deferred revenue | 2217 | 4829 |
|  Interest expense carryforward | 9258 | 6457 |
|  Gross deferred tax assets | $137512 | $149115 |
|  Less: valuation allowance | (41648) | (21102) |
|  Total net deferred tax assets | $95864 | $128013 |
|  Operating lease right-of-use assets | (1883) | (2475) |
|  Property and equipment | (102253) | (131805) |
|  Unrealized loss/(gain) on equity investments | 98 | (2148) |
|  Total deferred tax liabilities | $(104037) | $(136427) |
|  Net deferred tax liabilities | $(8173) | $(8414) |

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The Company has federal and state income tax net operating losses ("NOL") carryforwards of $511.7 million and $226.9 million, which expire in fiscal years 2027-2038 and 2024-2044, respectively. Approximately $194.2 million of our federal NOL carryforwards are not subject to expiration. These NOL carryovers are only available to offset 80% of taxable income in years in which they are utilized due to tax law changes as a result of the Tax Cuts and Jobs Act. The Company also has $41.7 million of interest expense carryovers as a result of 163j limitations as of September 30, 2024.

The Company cannot conclude that it is more likely than not that the benefit from certain federal and state NOL carryforwards will not be realized. In recognition of this uncertainty, the Company has provided a valuation allowance of $41.6 million as of September 30, 2024 and $21.1 million as of September 30, 2023 on the deferred tax assets related to these NOL carryforwards. If or when recognized, the tax benefits related to any reversal of the valuation allowance on deferred tax assets will be recognized as a reduction of income tax expense.

The federal and state NOL carryforwards in the income tax returns filed included unrecognized tax benefits. The deferred tax assets recognized for those NOLs are presented net of these unrecognized tax benefits.

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Because of the change of ownership provisions of the Tax Reform Act of 1986, use of a portion of our NOL and tax credit carryforwards may be limited in future periods. Further, a portion of the carryforwards may expire before being applied to reduce future income tax liabilities. The Company determined it had an ownership change in February of 2009. Based on the study conducted at that time, a portion of the federal NOLs were determined to be limited by IRC Section 382, resulting in the Company writing off a portion of its NOLs at that time. Additionally, the Company's initial public offering in August of 2018 resulted in a change in ownership under Section 382 of the Internal Revenue Code. The Company completed an update to the analysis of any potential limitation on the use of its net operating losses under Section 382 for the fiscal year ended September 30, 2024. Based on such analysis, the Company does not believe any ownership changes during the review period will further limit its ability to use its current net operating losses to offset future taxable income, if any.

The following is a tabular reconciliation of the total amounts of unrecognized tax benefits:

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| | | |
|:---|:---|:---|
|  | Year Ended<br> September 30, | Year Ended<br> September 30, |
|  | 2024 | 2023 |
|  | (in thousands) | (in thousands) |
| Unrecognized tax benefits—October 1 | $4866 | $4866 |
| Gross decreases—tax positions in prior period |  |  |
| Gross increases—tax positions in prior period |  |  |
| Unrecognized tax benefits—September 30 | $4866 | $4866 |

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The Company's unrecognized tax benefits of $4.9 million and $4.9 million as of September 30, 2024 and 2023, respectively, is included as an offset to the net deferred tax asset balance. If recognized, the balance of the uncertain tax benefits would impact the effective tax rate.

We recognize interest accrued related to unrecognized tax benefits and penalties as income tax expense. We have not recorded accrued penalties or interest related to the unrecognized tax benefits noted above as the amounts would result in an adjustment to NOL carryforwards.

We are subject to taxation in the United States and various states. As of September 30, 2024, the Company is no longer subject to U.S. federal or state examinations by taxing authorities for fiscal years prior to 2004.

13. Share-Based Compensation

Restricted Stock

The Company grants restricted stock units ("RSUs") as part of its long-term incentive compensation to employees and non-employee members of the Board of Directors. RSUs generally vest over a period of three to five years for employees and one year for members of the Board of Directors. The restricted common stock underlying RSUs are not deemed issued or outstanding upon grant, and do not carry any voting rights. RSUs are measured based on the fair market value of the underlying common stock on the grant date.

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The restricted stock activity for our years ended September 30, 2024, 2023, and 2022 is summarized as follows:

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| | | |
|:---|:---|:---|
| 2018 Plan | Number<br> of Shares | Weighted-<br> Average<br> Grant Date<br> Fair Value |
| Restricted shares unvested at September 30, 2021 | 1006206 | $6.22 |
| Granted | 718959 | $3.20 |
| Vested | (455303) | $6.13 |
| Forfeited | (97369) | $2.97 |
| Restricted shares unvested at September 30, 2022 | 1172493 | $4.43 |
| Granted | 495087 | $2.43 |
| Vested | (585755) | $4.58 |
| Forfeited | (344934) | $4.05 |
| Restricted shares unvested at September 30, 2023 | 736891 | $3.35 |
| Granted | 738998 | $1.55 |
| Vested | (448726) | $3.82 |
| Forfeited | (51748) | $2.21 |
| Restricted shares unvested at September 30, 2024 | 975415 | $1.83 |

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As of September 30, 2024, there was $1.5 million of total unrecognized compensation cost related to unvested share-based compensation arrangements, which is expected to be recognized over a weighted-average period of 1.5 years.

Compensation cost for share-based awards are recognized on a straight-line basis over the vesting period. The Company recognizes forfeitures of share-based awards as they occur. Share-based compensation expense for the years ended September 30, 2024, 2023, and 2022 was approximately $1.3 million, $2.3 million, and $2.8 million, respectively. Share-based compensation expense is recorded in general and administrative expenses in the consolidated statements of operations and comprehensive loss.

The Company repurchased 112,698 shares of its common stock for approximately $0.1 million to cover the income tax obligation on vested employee equity awards during the fiscal year ended September 30, 2024. The Company repurchased 204,486 shares of its common stock for approximately $0.4 million to cover the income tax obligation on vested employee equity awards and warrant conversions during the fiscal year ended September 30, 2023. During the fiscal year ended September 30, 2022, the Company repurchased 147,108 shares of its common stock for approximately $0.5 million to cover the income tax obligation on vested employee equity awards.

14. Employee Stock Purchase Plan

2019 ESPP

The Mesa Air Group, Inc. 2019 Employee Stock Purchase Plan (the "2019 ESPP") is a nonqualified plan that provides eligible employees of Mesa Air Group, Inc. with an opportunity to purchase Mesa Air Group, Inc. ordinary shares through payroll deductions. Under the 2019 ESPP, eligible employees may elect to contribute 1% to 15% of their eligible compensation during each semi-annual offering period to purchase Mesa Air Group, Inc. ordinary shares at a 10% discount.

A maximum of 500,000 Mesa Air Group, Inc. ordinary shares may be issued under the 2019 ESPP. As of September 30, 2024, eligible employees purchased and the Company issued an aggregate of 499,962 Mesa Air Group, Inc. ordinary shares under the 2019 ESPP, 55,372 of which were purchased and issued during the current

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fiscal year. During the fiscal year ended September 30, 2024, the maximum amount of shares was reached and the 2019 ESPP was discontinued.

15. Leases

At September 30, 2024, the Company leased 32 aircraft, airport facilities, office space, and other property and equipment under non-cancelable operating leases. The operating leases require the Company to pay taxes, maintenance, insurance, and other operating expenses. Rental expense is recognized on a straight-line basis over the lease term, net of lessor rebates and other incentives. The Company expects that, in the normal course of business, such operating leases that expire will be renewed or replaced by other leases, or the property may be purchased rather than leased. Aggregate rental expense under all operating aircraft, equipment and facility leases totaled approximately $13.9 million, $12.2 million, and $43.4 million for the fiscal years ended September 30, 2024, 2023, and 2022, respectively.

At September 30, 2024, the Company leased two aircraft under non-cancelable finance leases. Basic rent on finance leases is paid monthly and at the end of the lease term. At the end of the lease term, the Company has the option to purchase the aircraft and engines for most of the finance leases. These finance leases are reflected as finance lease obligations of $4.7 million on our consolidated balance sheet as of September 30, 2024.

The components of our operating and finance lease costs were as follows (in thousands):

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| | | |
|:---|:---|:---|
|  | Year Ended<br> September 30, | Year Ended<br> September 30, |
|  | 2024 | 2023 |
|  Operating lease costs | $4309 | $8517 |
|  Variable and short-term lease costs | 9545 | 3691 |
|  Interest expense on finance lease liabilities | 3530 | 4492 |
|  Amortization expense of finance lease assets | 5163 | 13414 |
|  Total lease costs | $22547 | $30114 |

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As of September 30, 2024, the Company's operating lease right-of-use assets were $7.2 million, the Company's current maturities of operating lease liabilities were $1.7 million, and the Company's noncurrent operating lease liabilities were $6.9 million. As of September 30, 2024, the Company's current portion of finance lease liabilities were $1.8 million, and the Company's noncurrent finance lease liabilities were $2.9 million.

The Company's operating lease payments included in operating cash flows for the fiscal years ended September 30, 2024 and 2023 were approximately $4.6 million and $9.5 million, respectively. The Company's finance lease interest payments included in operating cash flows for the fiscal years ended September 30, 2024 and 2023 were $2.0 million and $1.2 million, respectively. The Company's finance lease principal payments included in financing cash flows for the fiscal years ended September 30, 2024 and 2023 were $65.3 million and $15.1 million, respectively.

The table below presents the weighted average remaining terms and discount rates for our operating and finance leases as of September 30, 2024:

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| | |
|:---|:---|
| As of September 30, 2024 |  |
|  Finance leases: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Weighted average remaining lease term | 2.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Weighted average discount rate | 5.8% |
|  Operating leases: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Weighted average remaining lease term | 6.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Weighted average discount rate | 6.0% |

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The following table summarizes future minimum rental payments, primarily related to facilities and leased aircraft, required under operating and finance leases that had initial or remaining non-cancelable lease terms as of September 30, 2024 (in thousands):

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| | | |
|:---|:---|:---|
| Periods Ending<br> September 30, | Operating<br> Leases | Finance<br> Leases |
| 2025 | $2273 | $1762 |
| 2026 | 1613 | 1714 |
| 2027 | 1468 | 1206 |
| 2028 | 1037 |  |
| 2029 | 941 |  |
|  Thereafter | 3187 |  |
|  Total lease payments | 10519 | 4682 |
|  Less: imputed interest | (1929) |  |
|  Amounts recorded in the consolidated balance sheet | $8590 | $4682 |

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16. Commitments and Contingencies

Litigation

We are involved in various legal proceedings (including, but not limited to, insured claims) and FAA civil action proceedings which we consider routine to our business activities on an ongoing basis. If we believe that a loss arising from such matters is probable and can be reasonably estimated, we accrue the estimated liability in our consolidated financial statements. If only a range of estimated losses can be determined, we accrue an amount within the range that, in our judgment, reflects the most likely outcome; if none of the estimates within that range is a better estimate than any other amount, we accrue the low end of the range. For those proceedings in which an unfavorable outcome is reasonably possible but not probable, we have disclosed an estimate of the reasonably possible loss or range of losses or we have concluded that an estimate of the reasonably possible loss or range of losses arising directly from the proceeding (i.e., monetary damages or amounts paid in judgment or settlement) is not material. If we cannot estimate the probable or reasonably possible loss or range of losses arising from a proceeding, we have disclosed that fact. In assessing the materiality of a proceeding, we evaluate, among other factors, the amount of monetary damages claimed, as well as the potential impact of non-monetary remedies sought by plaintiffs (e.g., injunctive relief) that may require us to change our business practices in a manner that could have a material adverse impact on our business.

As of September 30, 2024, we believed that the ultimate outcomes of routine legal matters are not likely to have a material adverse effect on our financial position, liquidity, or results of operations.

Electric Aircraft Forward Purchase Commitments

As described in Note 7, in February 2021, the Company entered into a forward purchase contract with Archer for a number of electrically-powered vertical takeoff and landing aircraft ("eVTOL aircraft"). The aggregate base commitment for the eVTOL aircraft is $200.0 million, with an option to purchase additional aircraft. The Company's obligation to purchase the eVTOL aircraft is subject to the Company and Archer first agreeing in the future to a number of terms and conditions, which may or may not be met.

As described in Note 7, in July 2021, the Company entered into a forward purchase contract with Heart for a number of fully electric aircraft. The maximum aggregate base commitment for the aircraft is $1,200.0 million, with an option to purchase additional aircraft. The Company's obligation to purchase the aircraft is subject to the Company and Heart first agreeing in the future to a number of terms and conditions, which may or may not be met.

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Other Commitments

We have certain contracts for goods and services that require us to pay a penalty, acquire inventory specific to us or purchase contract-specific equipment, as defined by each respective contract, if we terminate the contract without cause prior to its expiration date. Because these obligations are contingent on our termination of the contract without cause prior to its expiration date, no obligation would exist unless such a termination occurs.

17. Subsequent Events

Merger Agreement

On April 4, 2025, the Company entered into the Merger Agreement with Republic. Subject to the terms and conditions of the Merger Agreement, Republic will merge with and into the Company, with the Company continuing as the surviving corporation following the Merger. In connection with the Merger, immediately prior to the Effective Time, the Company will convert from a Nevada corporation to a Delaware corporation pursuant to the Conversion.

Three Party Agreement

Concurrently with the execution of the Merger Agreement, the Company entered into the Three Party Agreement between United, Republic, and the Company, which provides for, among other things, the following, each subject to the completion of the Merger Agreement:

• Termination of the United CPA.

• The Company to sell or dispose of all remaining Eligible Assets (as defined in the Three Party Agreement).

• The Company to extinguish all remaining debt with cash and sale of assets. Any remaining debt will be assumed by the surviving corporation or forgiven by United.

• A three percent (3%) increase in CPA block hour rates, retroactive to January 1, 2025.

• The transfer of all of the Company's rights and obligations under its agreements with Archer (as discussed below).

• The issuance by the Company (referred to in the Three Party Agreement as the "Primary Issuance") of shares of Company common stock equal to six percent (6%) of the issued and outstanding shares of Company common stock after giving effect to the issuance of Company common stock in the Merger, which shares will (a) first become available to United to the extent of certain financial contributions made by United to the Company at or prior to the effective time of the Merger, (b) second, to the extent of any remainder, become available to the surviving corporation to satisfy certain liabilities, and (c) third, to the extent of any remainder, become available on a pro rata basis to the persons who, as of immediately prior to the effective time of the Merger, held shares of Company common stock.

The foregoing description of the Merger Agreement and the Three Party Agreement is only a summary, does not purport to be complete and is subject to, and qualified in its entirety by reference to, the full text of the Merger Agreement and the Three Party Agreement, which are attached as Exhibit 2.1 and 10.1, respectively, to the Current Report on Form 8-K filed by the Company with the SEC on April 8, 2025.

Amendments to our Third Amended and Restated United CPA

On April 4, 2025, we entered into the Sixth Amendment to our Third Amended and Restated United CPA which provides for the following:

• The extension of the CPA rate increases agreed upon in the January 2024 United CPA Amendments, retroactive to January 1, 2025, through March 31, 2026.

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• The extension of incentives for achieving certain performance metrics, retroactive to July 1, 2024, through March 31, 2026.

On December 23, 2024, we entered into the Fourth Amendment to our Third Amended and Restated United CPA which provides for the following:

• Amended certain scheduled exit dates for our E-175 and CRJ-900 Covered Aircraft (as defined in the United CPA).

• Added provisions relating to the reimbursement by United of certain pilot training costs incurred by the Company with respect to its E-175 aircraft.

Transfer of Archer Obligations

In connection with the Three Party Agreement, the Company has agreed to transfer all rights and obligations associated with its Archer warrants and aircraft purchase agreement obligations. If the Company is unable to transfer such rights and obligations, the Company will work with United to either cancel or transfer any remaining obligations to United. The Company will be released from its liability associated with Archer obligations due to the transfer due United

Sale of Engines

On April 3, 2025, we entered into an agreement with a third party which provides for the sale of 23 GE model CF34-8C engines to the third party for expected gross proceeds of $16.3 million, which will be used to pay down our UST Loan.

• The Company expects to record an impairment loss of approximately $14.7 million associated with held for sale accounting treatment of the 23 engines, which will be reflected in our financial statements for fiscal year 2025.

Held for Sale Inventory

Subsequent to September 30, 2024, the Company reclassified certain spare parts related to its CRJ asset fleet to held for sale.

• The Company expects to record an impairment loss of approximately $25.4 million associated with held for sale accounting treatment of the spare parts, which will be reflected in our financial statements for fiscal year 2025.

Assets Held for Sale

Subsequent to September 30, 2024, the Company closed the sale of four CRJ-900 airframes, 18 GE model CF34-8C engines, and certain spare parts that were classified as held for sale as of September 30, 2024. The Company received $22.4 million in gross proceeds from the sale of such assets, $21.0 million of which was used to pay down our UST Loan.

Aircraft Sale to United and Assumption of EETC Note by United

On December 31, 2024, we entered into an Aircraft Purchase Agreement with United which provides for the sale of 18 E-175 aircraft to United.

• Subsequent to September 30, 2024, the Company closed the sale of all 18 aircraft to United for gross proceeds of $227.7 million and net proceeds of $84.7 million after the retirement of debt. The Company recorded a loss of approximately $120.6 million on the sale of the 18 aircraft, which will be reflected in our financial statements for the first and second fiscal quarters of 2025.

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• As part of the sale of the 18 aircraft, United assumed our EETC note with a remaining balance of $73.4 million at the time of assumption.

Forgiveness on Revolving Loan

On December 30, 2024, we received notice from United that $4.5 million of our Effective Date Revolving Loan balance under our United Revolving Credit Facility has been forgiven for achieving certain operational performance metrics outlined in Amendment No. 1 to Second Amended and Restated Credit and Guaranty Agreement.

Sale of Airframes

On December 24, 2024, we entered into a purchase agreement with a third party which provides for the sale of 15 CRJ-900 airframes to the third party for expected gross proceeds of $19.0 million, which will be used to pay down our UST Loan. On April 3, 2025, the purchase agreement was amended to include an additional 14 CRJ-900 airframes to be sold to the third party for expected gross proceeds of $9.1 million. The total expected gross proceeds of $28.1 million will be used to pay down our UST Loan.

• The Company expects to record an impairment loss of approximately $6.7 million associated with the reclassification of 29 airframes to held for sale, which will be reflected in our financial statements for fiscal year 2025.

Minimum CCR Covenant

On December 23, 2024, we entered into an agreement with the UST to lower the minimum collateral coverage ratio ("CCR") covenant to .99 to 1.0 effective as of November 22, 2024 through February 28, 2025. After such date, the CCR will revert to 1.55 to 1.0. The agreement also requires the Company to use its reasonable best efforts to cause counterparties to all Receivables (as defined in the Treasury Loan) (whether or not constituting "Eligible Receivables" (as defined in the Treasury Loan)) of the Company to be paid to the Eligible Receivables Account (as defined in the Treasury Loan). Receivables generated from the sale of assets that are not Collateral (as defined in the Treasury Loan) are excluded from the scope of the foregoing requirement. As a result of the lower CCR covenant, we are in compliance with this covenant as of September 30, 2024. Additionally, on March 18, 2025, we entered into a new CCR Modification Agreement with the UST to lower the minimum CCR covenant to .91 to 1.0 effective as of February 28, 2025, through the maturity date of the loan.

Waiver to Second Amended and Restated Credit and Guaranty Agreement

On December 23, 2024, we entered into a Waiver to Second Amended and Restated Credit and Guaranty Agreement providing for the waiver of an existing financial covenant default with respect to the period July 1, 2024 to December 23, 2024 and a projected financial covenant default with respect to the period December 24, 2024 to December 31, 2024, each relating to a minimum liquidity requirement under our United Revolving Credit Facility. Additionally, on April 4, 2025, we entered into the Sixth Amendment to Second Amended and Restated Credit and Guaranty Agreement providing for the waiver of an existing financial covenant default with respect to the period ended March 31, 2025, and a projected financial covenant default with respect to the periods ending June 30, 2025, September 30, 2025, December 31, 2025, and March 31, 2026, each relating to a minimum liquidity requirement under our United Revolving Credit Facility.

Sale of CRJ-700 Aircraft

Subsequent to September 30, 2024, we completed the sale of two CRJ-700 aircraft to United for gross proceeds of $11.0 million and net proceeds of approximately $6.8 million after the retirement of debt.

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#### MESA AIR GROUP, INC.

#### Condensed Consolidated Balance Sheets
(In thousands, except share amounts) (June 30, 2025 is unaudited)

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| | | |
|:---|:---|:---|
|  | June 30, | September 30, |
|  | 2025 | 2024 |
| ASSETS |  |  |
| Current assets: |  |  |
| Cash and cash equivalents | $42472 | $15621 |
| Restricted cash | 3048 | 3009 |
| Receivables, net ($6,325 and $1,883 from related party) | 8724 | 5263 |
| Expendable parts and supplies, net | 16172 | 28272 |
| Assets held for sale | 60311 | 5741 |
| Prepaid expenses and other current assets | 2714 | 3371 |
| Total current assets | 133441 | 61277 |
| Property and equipment, net | 31850 | 426351 |
| Lease and equipment deposits | 637 | 1289 |
| Operating lease right-of-use assets | 7255 | 7231 |
| Deferred heavy maintenance, net |  | 6396 |
| Assets held for sale |  | 86605 |
| Other assets | 5466 | 7709 |
| Total assets | $178649 | $596858 |
| LIABILITIES AND STOCKHOLDERS' EQUITY |  |  |
| Current liabilities: |  |  |
| Current portion of long-term debt and finance leases ($3,998 and $6,604 from related party) | $84725 | $50455 |
| Current portion of deferred revenue | 5532 | 3932 |
| Current maturities of operating leases | 1693 | 1681 |
| Accounts payable | 50132 | 72096 |
| Accrued compensation | 9294 | 12797 |
| Customer deposits | 226 | 1189 |
| Other accrued expenses | 23015 | 32308 |
| Total current liabilities | 174617 | 174458 |
| Noncurrent liabilities: |  |  |
| Long-term debt and finance leases, excluding current portion ($29,020 and $30,914 from related party) | 28245 | 259816 |
| Noncurrent operating lease liabilities | 6872 | 6863 |
| Deferred credits from related party |  | 3020 |
| Deferred income taxes | 575 | 8173 |
| Deferred revenue, net of current portion | 7787 | 5707 |
| Other noncurrent liabilities | 1837 | 28579 |
| Total noncurrent liabilities | 45316 | 312158 |
| Total liabilities | 219933 | 486616 |
| Commitments and contingencies (Note 14) |  |  |
| Stockholders' equity: |  |  |
| Common stock of no par value and additional paid-in capital, 125,000,000 shares authorized; 41,861,544 (2025) and 41,331,719 (2024) shares issued and outstanding, 4,899,497 (2025) and 4,899,497 (2024) warrants issued and outstanding | 273183 | 272376 |
| Accumulated deficit | (314467) | (162134) |
| Total stockholders' equity | (41284) | 110242 |
| Total liabilities and stockholders' equity | $178649 | $596858 |

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See accompanying notes to these condensed consolidated financial statements.

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#### **Table of Contents**

#### MESA AIR GROUP, INC.

#### Condensed Consolidated Statements of Operations and Comprehensive Loss
(In thousands, except per share amounts) (Unaudited)

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Three Months Ended<br>June 30, | Three Months Ended<br>June 30, | Nine Months Ended<br>June 30, | Nine Months Ended<br>June 30, |
|  | 2025 | 2024 | 2025 | 2024 |
| Operating revenues: |  |  |  |  |
| Contract revenue (2025—$68,424 and $212,969 and 2024—$93,867 and $301,796 from related party) | $69940 | $95596 | $219041 | $310516 |
| Pass-through and other revenue | 22844 | 15197 | 71723 | 50636 |
| Total operating revenues | 92784 | 110793 | 290764 | 361152 |
| Operating expenses: |  |  |  |  |
| Flight operations | 36551 | 45455 | 108021 | 146602 |
| Maintenance | 41417 | 44266 | 131483 | 137165 |
| Aircraft rent | 98 | 1684 | 3038 | 4296 |
| General and administrative | 11585 | 9715 | 32588 | 32857 |
| Depreciation and amortization | 3377 | 9730 | 17311 | 32846 |
| Asset impairment | (52) | 7880 | 111786 | 50923 |
| Loss on sale of assets |  |  | 54397 | 150 |
| Other operating expenses | (46) | 1090 | 335 | 5098 |
| Total operating expenses | 92930 | 119820 | 458959 | 409937 |
| Operating loss | (146) | (9027) | (168195) | (48785) |
| Other income/(expense), net: |  |  |  |  |
| Interest expense | (3256) | (9032) | (15654) | (30832) |
| Interest income | 74 | 17 | 115 | 45 |
| (Loss) gain on investments |  | (776) |  | 6454 |
| Unrealized loss on investments, net |  | (2025) | (53) | (6073) |
| Gain on extinguishment of debt |  |  |  | 2954 |
| Gain on debt forgiveness |  |  | 4500 | 10500 |
| Other income (expense), net | 23946 | 125 | 21126 | (234) |
| Total other income (expense), net | 20764 | (11691) | 10034 | (17186) |
| Income (loss) before taxes | 20618 | (20718) | (158161) | (65971) |
| Income tax (benefit)/expense | (238) | (810) | (5829) | 126 |
| Net income (loss) and comprehensive income (loss) | $20856 | $(19908) | $(152332) | $(66097) |
| Net income (loss) per share attributable to common shareholders |  |  |  |  |
| Basic | $0.50 | $(0.48) | $(3.68) | $(1.61) |
| Diluted | $0.50 | $(0.48) | $(3.68) | $(1.61) |
| Weighted-average common shares outstanding |  |  |  |  |
| Basic | 41439 | 41217 | 41368 | 41075 |
| Diluted | 41683 | 41217 | 41368 | 41075 |

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See accompanying notes to these condensed consolidated financial statements.

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#### **Table of Contents**

#### MESA AIR GROUP, INC.

#### Condensed Consolidated Statements of Stockholders' Equity
(In thousands, except share amounts) (Unaudited)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Nine Months Ended June 30, 2024 | Nine Months Ended June 30, 2024 | Nine Months Ended June 30, 2024 | Nine Months Ended June 30, 2024 | Nine Months Ended June 30, 2024 |
|  | Number of<br>Shares | Number of<br>Warrants | Common<br>Stock and<br>Additional<br>Paid-In<br>Capital | Accumulated<br>Deficit | Total |
| Balance at September 30, 2023 | 40940326 | 4899497 | $271155 | $(71119) | $200036 |
| Stock compensation expense |  |  | 427 |  | 427 |
| Net loss |  |  |  | (57850) | (57850) |
| Balance at December 31, 2023 | 40940326 | 4899497 | 271582 | (128969) | 142612 |
| Stock compensation expense |  |  | 372 |  | 372 |
| Payment of tax withholding for RSUs | (1490) |  | (1) |  | (1) |
| Restricted shares issued | 178010 |  |  |  |  |
| Employee share purchases | 55372 |  | 30 |  | 30 |
| Net income |  |  |  | 11660 | 11660 |
| Balance at March 31, 2024 | 41172218 | 4899497 | $271982 | $(117309) | $154672 |
| Stock compensation expense |  |  | 248 |  | 248 |
| Payment of tax withholding for RSUs | (102436) |  | (126) |  | (126) |
| Restricted shares issued | 242422 |  |  |  |  |
| Net loss |  |  |  | (19908) | (19908) |
| Balance at June 30, 2024 | 41312204 | 4899497 | 272104 | (137217) | 134887 |

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2025 |
|  | Number of<br>Shares | Number of<br>Warrants | Common<br>Stock and<br>Additional<br>Paid-In<br>Capital | Accumulated<br>Deficit | Total |
| Balance at September 30, 2024 | 41331719 | 4899497 | $272376 | $(162134) | $110242 |
| Stock compensation expense |  |  | 279 |  | 279 |
| Net loss |  |  |  | (114558) | (114558) |
| Balance at December 31, 2024 | $41331719 | $4899497 | $272655 | $(276692) | $(4037) |
| Stock compensation expense |  |  | 264 |  | 264 |
| Payment of tax withholding for RSUs | (1286) |  | (1) |  | (1) |
| Restricted shares issued | 4000 |  |  |  |  |
| Net income |  |  |  | (58631) | (58631) |
| Balance at March 31, 2025 | 41334433 | 4899497 | $272918 | $(335323) | $(62405) |
| Stock compensation expense |  |  | 268 |  | 268 |
| Payment of tax withholding for RSUs | (1286) |  | (3) |  | (3) |
| Restricted shares issued | 528397 |  |  |  |  |
| Net income |  |  |  | 20856 | 20856 |
| Balance at June 30, 2025 | $41861544 | $4899497 | $273183 | $(314467) | $(41284) |

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See accompanying notes to these condensed consolidated financial statements.

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#### **Table of Contents**

#### MESA AIR GROUP, INC.

#### Condensed Consolidated Statements of Cash Flows
(In thousands) (Unaudited)

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| | | |
|:---|:---|:---|
|  | Nine Months Ended<br>June 30, | Nine Months Ended<br>June 30, |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2025 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 |
| Cash flows from operating activities: |  |  |
| Net loss | $(152332) | $(66097) |
| Adjustments to reconcile net loss to net cash flows (used in) provided by operating activities: |  |  |
| Depreciation and amortization | 17311 | 32846 |
| Stock compensation expense | 811 | 1047 |
| Unrealized loss on investments, net | 53 | 6073 |
| Realized gain on investments |  | (6454) |
| Deferred income taxes | (7597) | (355) |
| Write off of warrant liability | (25125) |  |
| Amortization of deferred credits | (4126) | (798) |
| Amortization of debt discount and issuance costs and accretion of interest into long-term debt | 4163 | 6243 |
| Asset impairment | 111786 | 50923 |
| Loss on sale of assets | 54397 | 150 |
| (Gain) on extinguishment of debt |  | (2954) |
| (Gain) on debt forgiveness | (4500) | (10500) |
| Other | 6051 | 3187 |
| Changes in assets and liabilities: |  |  |
| Receivables | (7869) | 2300 |
| Expendable parts and supplies | (5977) | (1407) |
| Prepaid expenses and other operating assets and liabilities | 1206 | 4006 |
| Accounts payable | (21964) | 6055 |
| Deferred revenue | 3680 | (8302) |
| Deferred heavy maintenance |  | (1637) |
| Accrued expenses and other liabilities | (13311) | 5771 |
| Operating lease right-of-use assets and liabilities | (3) | (501) |
| Net cash (used in) provided by operating activities | (43346) | 19596 |
| Cash flows from investing activities: |  |  |
| Capital expenditures | (5411) | (16908) |
| Proceeds from sale of aircraft and engines | 198973 | 127136 |
| Proceeds from sale of investments in equity securities |  | 2729 |
| Investment transaction costs |  | (380) |
| Refund of equipment and other deposits | 100 | 341 |
| Net cash provided by investing activities | 193662 | 112918 |
| Cash flows from financing activities: |  |  |
| Proceeds from long-term debt |  | 86855 |
| Principal payments on long-term debt and finance leases | (123422) | (235156) |
| Debt prepayment costs |  | (922) |
| Proceeds from issuance of ESPP |  | 48 |
| Payment of tax withholding for RSUs | (4) | (126) |
| Net cash used in financing activities | (123426) | (149301) |
| Net change in cash, cash equivalents and restricted cash | 26890 | (16787) |
| Cash, cash equivalents and restricted cash at beginning of period | 18630 | 36072 |
| Cash, cash equivalents and restricted cash at end of period | $45520 | $19285 |
| Supplemental cash flow information |  |  |
| Cash paid for interest | $11155 | $23344 |
| Operating lease payments in operating cash flows | $2109 | $3738 |
| Supplemental non-cash operating activities |  |  |
| Right-of-use assets obtained in exchange for lease liabilities | $2936 | $419 |
| Supplemental non-cash financing activities |  |  |
| Principal payments in exchange for transfer of aircraft | $73362 | $— |
| Principal payments in exchange for transfer of equity investment | $— | $12610 |
| Principal forgiven | $4500 | $10500 |

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See accompanying notes to these condensed consolidated financial statements.

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#### **Table of Contents**
MESA AIR GROUP, INC.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

1. Organization and Operations

About Mesa Air Group, Inc.

Headquartered in Phoenix, Arizona, Mesa Air Group, Inc. ("Mesa," "Mesa Airlines," the "Company," "we," "our," or "us") is the holding company of Mesa Airlines, a regional air carrier providing scheduled passenger service to 79 cities in 31 states, Cuba, and Mexico. As of June 30, 2025, Mesa operated a fleet of 60 Embraer 175 ("E-175") regional aircraft with approximately 254 daily departures. The aircraft in Mesa's fleet were operated under the Company's Amended and Restated Capacity Purchase Agreement ("CPA"), as United Express, pursuant to the terms of the CPA entered into with United. Except as set forth in the following sentence, all of the Company's consolidated contract revenues for the three and nine months ended June 30, 2025 and June 30, 2024 were derived from operations associated with the CPA, leases of aircraft to a third party, and Mesa Pilot Development ("MPD"). Revenues during the nine months ended June 30, 2024 also included revenues derived from our Flight Services Agreement ("FSA") with DHL Network Operations (USA), inc. ("DHL"), which terminated in March 2024. Additionally, our leases of aircraft to a third party terminated upon the sale of such aircraft to United during the nine months ended June 30, 2025.

The CPA involves a revenue-guarantee arrangement whereby United pays fixed-fees for each aircraft under contract, departure, flight hour (measured from takeoff to landing, excluding taxi time) or block hour (measured from takeoff to landing, including taxi time), and reimbursement of certain direct operating expenses in exchange for providing flight services. United also pays certain expenses directly to suppliers, such as fuel, ground operations and landing fees. Under the terms of the CPA, United controls route selection, pricing, and seat inventories, reducing our exposure to fluctuations in passenger traffic, fare levels, and fuel prices.

Merger Agreement

On April 4, 2025, the Company entered into an Agreement, Plan of Conversion and Plan of Merger (the "Merger Agreement") with Republic Airways Holdings, Inc., a Delaware corporation ("Republic"). Subject to the terms and conditions of the Merger Agreement, Republic will merge with and into the Company (the "Merger"), with the Company continuing as the surviving corporation following the Merger. In connection with the Merger, immediately prior to the effective time of the Merger (the "Effective Time"), the Company will convert from a Nevada corporation to a Delaware corporation pursuant to a Plan of Conversion (the "Conversion).

Effect on Capital Stock

At the Effective Time, each share of common stock ("Republic Common Stock"), par value $0.001 per share, of Republic issued and outstanding immediately prior to the Effective Time (other than any Cancelled Shares (as defined in the Merger Agreement) and dissenting shares held by stockholders who (i) have not voted in favor of the Merger or consented to it in writing and (ii) have properly demanded appraisal of such shares of Republic Common Stock in accordance with, and have complied in all respects with, the provisions of Section 262 of the Delaware General Corporation Law), shall thereupon be converted into the right to receive 584.90 validly issued, fully paid and non-assessable shares of common stock ("Mesa Common Stock"), no par value per share, of Mesa (the "Merger Consideration").

Treatment of Equity Awards

Immediately prior to the Effective Time, (i) any vesting conditions applicable to each Parent RSU (as defined in the Merger Agreement) shall, automatically and without any required action on the part of the holder thereof, accelerate in full, and (ii) each Parent RSU shall, automatically and without any required action on the

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part of the holder thereof, be cancelled and shall only entitle the holder of such Parent RSU to receive the number of shares of Mesa Common Stock subject to such Parent RSU immediately prior to the Effective Time.

Immediately prior to the Effective Time, (i) each outstanding Republic RSU (as defined in the Merger Agreement) that has vested in accordance with its terms (including each outstanding Republic RSU that will become vested upon the closing of the Merger) (a "Vested Republic RSU") shall, automatically and without any required action on the part of the holder thereof, be cancelled and shall only entitle the holder of such Vested Republic RSU to receive a number of whole shares of Mesa Common Stock (rounded up to the next whole share of Mesa Common Stock), which shares of Republic Common Stock shall be converted into Mesa Common Stock, and (ii) each outstanding Republic RSU that is not a Vested Republic RSU (an "Unvested Republic RSU") shall, automatically and without any required action on the part of the holder thereof, be assumed by Mesa and converted into the right to receive an award of restricted shares of Mesa Common Stock pursuant to the Parent Equity Award Plan (as defined in the Merger Agreement) (each, a "Parent Restricted Stock Award") in an amount equal to the number of whole shares of Mesa Common Stock (rounded up to the next whole share of Mesa Common Stock) equal to the product obtained by multiplying (x) the Exchange Ratio by (y) the total number of shares of Republic Common Stock subject to such Unvested Republic RSU immediately prior to the Effective Time. Each Republic RSU Award assumed and converted into a Mesa Restricted Stock Award shall continue to have, and shall be subject to, the same terms and conditions (including with respect to vesting) as applied to the corresponding Republic RSU Award as of immediately prior to the Effective Time.

Conditions to the Merger

Each of Mesa's and Republic's obligation to consummate the Merger is subject to a number of conditions, including, among others, the following, as further described in the Merger Agreement: (i) approval of the transactions contemplated under the Merger Agreement by (a) the holders of at least two-thirds of the outstanding shares of Republic Common Stock entitled to vote thereon and (b) the holders of a majority of the outstanding shares of Mesa Common Stock, (ii) expiration of the waiting period (or extension thereof) under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, (iii) effectiveness of the registration statement relating to the transaction, (iv) the shares of Mesa Common Stock to be issued in the Merger being approved for listing on NASDAQ, (v) no governmental entity shall have enacted, issued, promulgated, enforced or entered any law or order that has the effect of making illegal, enjoining, or otherwise restraining or prohibiting the consummation of the transactions contemplated under the Merger Agreement, (vi) the receipt of requisite approvals from specified aviation authorities, (vii) the representations and warranties of the other party being true and correct, subject to the materiality standards contained in the Merger Agreement, (viii) material compliance by the other party with its covenants, (ix) no material adverse effect having occurred with respect to the other party since the signing of the Merger Agreement, (x) the satisfaction of certain specified conditions of the Three Party Agreement (as defined below), (xi) United shall not have materially breached the terms of the CPA Side Letter (as defined in the Merger Agreement) or provided Mesa or Republic with written notice of its intention not to perform or comply with any of the terms or conditions under the Go-Forward CPA (as defined in the Merger Agreement), and (xiii) the filing by Mesa of its Form 10-K for the period ended September 30, 2024 and Form 10-Q for the period ended December 31, 2024. The conditions set forth in subsection (xiii) have been satisfied.

Representations and Warranties; Covenants

The Merger Agreement contains customary representations, warranties and covenants by Mesa and Republic. The Merger Agreement also contains customary pre-closing covenants, including the obligation of Mesa and Republic to conduct their respective businesses in the ordinary course consistent with past practice and to refrain from taking specified actions without the consent of the other party. Each of Mesa and Republic has agreed not to solicit any offer or proposal for specified alternative transactions, or, subject to certain exceptions relating to the receipt of unsolicited offers that may be deemed to be "superior proposals" (as defined in the Merger Agreement), to participate in discussions or engage in negotiations regarding such an offer or proposal with, or furnish any nonpublic information regarding such an offer or proposal to, any person that has made such an offer or proposal.

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Termination and Termination Fee

The Merger Agreement contains certain customary termination rights, including, among others, (i) the right of either Mesa or Republic to terminate the Merger Agreement if Mesa or Republic's stockholders fail to approve the Merger, (ii) the right of either Mesa or Republic to terminate the Merger Agreement if (a) the board of directors of the other party changes its recommendation to approve the transactions or (b) the other party materially breaches any of its representations, warranties or covenants contained in the Merger Agreement in a manner that causes certain conditions to closing to not be satisfied, (iii) the right of either Mesa or Republic to terminate the Merger Agreement if, prior to the receipt of such party's stockholder approval, such party accepts a superior proposal and such party enters into a definitive agreement for such superior proposal and pays the termination fee to the other party, (iv) the right of either Mesa or Republic to terminate the Merger Agreement if the Merger has not occurred by January 5, 2026, and a further extension until April 6, 2026, in certain circumstances (the "Outside Date"), and (v) the right of Republic to terminate the Merger Agreement if there is a breach of the Three Party Agreement or the CPA Side Letter in a manner that causes certain conditions to closing to not be satisfied. If the Merger Agreement is terminated pursuant to certain termination rights, the terminating party will be required to pay a termination fee of $1.5 million to the non-terminating party.

Description of Merger Agreement Not Complete

The Merger Agreement and the above description have been included to provide investors and security holders with information regarding the terms of the Merger Agreement. They are not intended to provide any other factual information about Mesa or Republic. The representations, warranties, covenants and other agreements contained in the Merger Agreement were made only for purposes of that agreement and as of specific dates; were solely for the benefit of the parties to the Merger Agreement; and may be subject to limitations agreed upon by the parties, including being qualified and modified by confidential disclosures made by each contracting party to the other for the purposes of allocating contractual risk between them. Investors should be aware that the representations, warranties, covenants and other agreements or any description thereof may not reflect the actual state of facts or condition of Mesa or Republic. Moreover, information concerning the subject matter of the representations, warranties, covenants and other agreements may change after the date of the Merger Agreement. Further, investors should read the Merger Agreement not in isolation, but only in conjunction with the other information that Mesa includes in reports, statements and other filings it makes with the Securities and Exchange Commission (the "SEC").

Three Party Agreement

Concurrently with the execution and delivery of the Merger Agreement, Mesa, Republic and United, among other parties, entered into that certain Three Party Agreement (the "Three Party Agreement"), pursuant to which, among other things: (i) Mesa will take certain actions at or prior to the closing of the Merger to dispose of certain assets, extinguish certain liabilities and effectuate certain related transactions; (ii) United will take certain actions at or prior to the closing of the Merger to facilitate Mesa's actions in the foregoing clause (i); and (iii) Mesa at the closing of the Merger will conduct a primary issuance of shares of Mesa Common Stock equal to six percent of the issued and outstanding shares of Mesa Common Stock after giving effect to the issuance of Mesa Common Stock in the Merger (the "Primary Issuance"), which Primary Issuance will (a) first become available to United to the extent of certain financial contributions made by United to Mesa at or prior to the effective time of the Merger, (b) second, to the extent of any remainder, become available to the surviving corporation to satisfy certain liabilities, and (c) third, to the extent of any remainder, become available on a pro rata basis to the persons who, as of immediately prior to the Effective Time, held shares of Mesa Common Stock.

The foregoing description of the Merger Agreement and the Three Party Agreement is only a summary, does not purport to be complete and is subject to, and qualified in its entirety by reference to, the full text of the Merger Agreement and the Three Party Agreement, which are attached as Exhibit 2.1 and 10.1, respectively, to the Current Report on Form 8-K filed by the Company with the SEC on April 8, 2025.

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Liquidity and Going Concern

During our three and nine months ended June 30, 2025 and fiscal year ended September 30, 2024, costs associated with the transition of our operations with American to United, increased costs associated with pilot wages, together with increasing interest rates adversely impacted our financial results, cash flows, financial position, and other key financial ratios. Additionally, United requested that we accelerate the removal of our CRJ-900 aircraft and transition the pilots to our E-175 fleet. These events will lead to increased costs and impact our block hour capabilities while these pilots are in training.

As a result, during the nine months ended June 30, 2025, these challenges resulted in a negative impact on the Company's financial results highlighted by net loss of $152.3 million, primarily due to a $54.4 million loss recorded related to the sale of 18 E-175 aircraft and $111.8 million in impairment related to held for sale assets and the write down of net book value of 10 E-175 aircraft. These conditions and events raised concerns about our ability to continue to fund our operations and meet our debt obligations over the next twelve months from the filing of this Form 10-Q.

To address such concerns, management developed and implemented several material changes to our business designed to ensure the Company could continue to fund its operations and meet its debt obligations over the next twelve months. The following measures were implemented during the three months ended June 30, 2025, and through the date of issuance of the financial statements.

• On April 4, 2025, the Company entered into the Three Party Agreement between United, Republic, and the Company, as well as a Merger Agreement entered into by Republic and Mesa, which provides for, among other things, the following:

• Termination of the United CPA, which will be replaced with a new long-term CPA.

• The Company to sell or dispose of all remaining Eligible Assets (as defined in the Three Party Agreement).

• The Company to extinguish all remaining debt with cash and sale of assets. Any remaining debt will be assumed by the surviving corporation or forgiven by United.

• A three percent (3%) increase in CPA block hour rates, retroactive to January 1, 2025.

• The transfer of all of the Company's rights and obligations under its agreements with Archer (as discussed in Note 15).

• On April 4, 2025, we entered into the Sixth Amendment to the Third Amended and Restated Capacity Purchase Agreement with United which provides for the following:

• The extension of the CPA rate increases agreed upon in the First Amendment to our Third Amended and Restated United CPA and the Second Amendment to our Third Amended and Restated United CPA, dated January 11, 2024, and January 19, 2024, respectively (the "January 2024 United CPA Amendments"), retroactive to January 1, 2025, through March 31, 2026.

• The extension of incentives for achieving certain performance metrics, retroactive to July 1, 2024, through March 31, 2026.

• On April 4, 2025, we entered into the Sixth Amendment to Second Amended and Restated Credit and Guaranty Agreement providing for the waiver of an existing financial covenant default with respect to the period ended March 31, 2025, and a projected financial covenant default with respect to the periods ending June 30, 2025, September 30, 2025, December 31, 2025, and March 31, 2026, each relating to a minimum liquidity requirement under our United Revolving Credit Facility.

• On April 3, 2025, we entered into a purchase agreement with a third party which provides for the sale of 23 GE model CF34-8C engines to the third party for expected gross proceeds of $16.3 million, which will be used to pay down our UST Loan.

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• Based on the most recent appraisal value of our spare parts, we have $10.5 million of borrowing capacity under our United Revolving Credit Facility.

• In addition to already executed agreements to sell aircraft, the Company is actively seeking arrangements to sell other surplus assets primarily related to the CRJ fleet including aircraft, engines, and spare parts to reduce debt and optimize operations.

• We have delayed and/or deferred major spending on aircraft and engine maintenance to match the current and projected level of flight activity.

The Company believes the plans and initiatives outlined above have effectively alleviated the financial concerns and will allow the Company to meet its cash obligations for the next twelve months following the issuance of its financial statements. The forecast of undiscounted cash flows prepared to determine if the Company has the ability to meet its cash obligations over the next twelve months was prepared with significant judgment and estimates of future cash flows based on projections of CPA block hours, maintenance events, labor costs, and other relevant factors. Assumptions used in the forecast may change or not occur as expected.

As of June 30, 2025, the Company has $84.7 million of principal maturity payments on long-term debt due within the next twelve months. We plan to meet these obligations with our cash on hand, ongoing cashflows from our operations, and the liquidity created from the additional measures identified above. If our plans are not realized, we intend to explore additional opportunities to create liquidity by refinancing and deferring repayment of our principal maturity payments that are due within the next twelve months. The Company continues to monitor covenant compliance with its lenders as any noncompliance could have a material impact on the Company's financial position, cash flows and results of operations.

United Capacity Purchase Agreement

Under the United CPA, we currently have the ability to fly up to 60 aircraft for United. As of June 30, 2025, we operated 60 E-175 aircraft under our Third Amended and Restated Capacity Purchase Agreement with United dated December 27, 2022, which amended and restated the Second Amended and Restated Capacity Purchase Agreement dated November 4, 2020 (as amended, the "United CPA" or the "Amended and Restated United CPA"). Under the United CPA, United owns all of the E-175 aircraft as of June 30, 2025. The E-175 aircraft owned by United and leased to us have terms expiring between 2024 and 2028.

In exchange for providing flight services under our United CPA, we receive a fixed monthly minimum amount per aircraft under contract plus certain additional amounts based on exceeding established goals for certain operational metrics. United also reimburses us for certain costs on an actual basis, including property tax per aircraft and passenger liability insurance. Other expenses, including fuel and landing fees, are directly paid to suppliers by United.

United reimburses us on a pass-through basis for certain costs related to heavy airframe and engine maintenance, landing gear, auxiliary power units ("APUs") and component maintenance for the aircraft owned by United. Our United CPA permits United, subject to certain conditions, including the payment of certain costs tied to aircraft type, to terminate the agreement in its discretion, or remove aircraft from service, by giving us notice of 90 days or more. If United elects to terminate our CPA in its entirety or permanently remove select aircraft from service, we are permitted to return any of the affected aircraft leased from United at no cost to us.

During the nine months ended June 30, 2025, we amended our United CPA, providing for the following:

• The extension of the CPA rate increases agreed upon in the January 2024 United CPA Amendments through March 31, 2026.

• The extension of incentives for achieving certain performance metrics through March 2026.

• The commitment of a combined fleet of 60 CRJ-900 and E-175 aircraft through February 2025, and an entirely E-175 fleet by March 2025.

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• Reimbursement of up to $14.0 million of expenses related to the transition to an entirely E-175 fleet.

• Amendment of certain scheduled exit dates for our E-175 and CRJ-900 Covered Aircraft (as defined in the United CPA).

In January 2024, the Amended and Restated United CPA was amended to provide for the following:

• Increased CPA rates for E-175 aircraft, retroactive to October 1, 2023 through December 31, 2024;

• Amended certain notice requirements for removal by United of up to eight CRJ-900 Covered Aircraft (as defined in the United CPA) from the United CPA;

• Extended United's existing utilization waiver for the Company's operation of E-175 and CRJ-900 Covered Aircraft (as defined in the United CPA) to June 30, 2024.

Additionally, in January 2023, in consideration for entering in the Amended and Restated United CPA and providing the revolving line of credit, discussed in Note 8, the Company (i) granted United the right to designate one individual to the Company's board of directors (the "United Designee"), which occurred effective May 2, 2023 with the appointment of Jonathan Ireland and (ii) issued to United 4,042,061 shares of the Company's common stock equal to approximately 10% of the Company's issued and outstanding capital stock on such date (the "United Shares"). United's board designee rights will terminate at such time as United's equity ownership in the Company falls below five percent (5%) of the Company's issued and outstanding stock.

United was also granted pre-emptive rights relating to the issuance of any equity securities by the Company and certain registration rights, set forth in a definitive registration rights agreement with United, granting United customary demand registration rights in respect of publicly registered offerings of the Company, subject to usual and customary exceptions and limitations.

Our United CPA is subject to termination prior to its expiration, including under the following circumstances:

• If certain operational performance factors fall below a specified percentage for a specified time, subject to notice under certain circumstances;

• If we fail to perform the material covenants, agreements, terms or conditions of our United CPA or similar agreements with United, subject to 30 days' notice and cure rights;

• If either United or we become insolvent, file bankruptcy, or fail to pay debts when due, the non-defaulting party may terminate the agreement;

• If we merge with, or if control of us is acquired by another air carrier or a corporation directly or indirectly owning or controlling another air carrier;

• United, subject to certain conditions, including the payment of certain costs tied to aircraft type, may terminate the agreement in its discretion, or remove E-175 aircraft from service, by giving us notice of 90 days or more; and

• If United elects to terminate our United CPA in its entirety or permanently remove aircraft from service, we are permitted to return any of the affected E-175 aircraft leased from United at no cost to us.

2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP") and include the accounts of

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the Company and its wholly owned operating subsidiaries. Any reference in these notes to applicable guidance is meant to refer to the authoritative GAAP as found in the Accounting Standards Codification ("ASC") and Accounting Standards Update ("ASU") of the Financial Accounting Standards Board ("FASB"). All intercompany accounts and transactions have been eliminated in consolidation.

These condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto as of and for the year ended September 30, 2024 included in the Company's Annual Report on Form 10-K for the year ended September 30, 2024 on file with the U.S. Securities and Exchange Commission (the "SEC"). Information and footnote disclosures normally included in financial statements have been condensed or omitted in these condensed consolidated financial statements pursuant to the rules and regulations of the SEC and GAAP. These condensed consolidated financial statements reflect all adjustments that, in the opinion of management, are necessary to present fairly the results of operations for the interim periods presented.

Segment Reporting

As of June 30, 2025, our chief operating decision maker was the Chief Executive Officer. While we operate under a capacity purchase agreement, we do not manage our business based on any performance measure at the individual contract level. Our chief operating decision maker uses consolidated financial information to evaluate our performance and allocate resources, which is the same basis on which he communicates our results and performance to our Board of Directors. Accordingly, we have a single operating and reportable segment.

Use of Estimates

The preparation of the Company's condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses and the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements. Actual results could differ from those estimates.

Contract Revenue and Pass-through and Other Revenue

We recognize contract revenue when the service is provided under our CPA. Under the CPA, United generally pays for each departure, flight hour or block hour incurred, and an amount per aircraft in service each month with additional incentives or penalties based on flight completion, on-time performance, and other operating metrics. Our performance obligation is met as each flight is completed, and revenue is recognized and reflected in contract revenue.

We recognize pass-through revenue when the service is provided under our CPA. Pass-through revenue represents reimbursements for certain direct expenses incurred including passenger liability insurance, property taxes, other direct costs defined within the agreements, and major maintenance on aircraft leased from United at nominal rates. Our performance obligation is met when each flight is completed or as the maintenance services are performed, and revenue is recognized and reflected in pass-through and other revenue.

We record deferred revenue when cash payments are received or are due from United in advance of our performance. During the three months ended June 30, 2025, we recognized approximately $1.3 million of previously deferred revenue and during the nine months ended June 30, 2025, we deferred approximately $3.7 million in revenue. Deferred revenue is recognized as flights are completed over the remaining terms of the respective contracts.

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The deferred revenue balance as of June 30, 2025 represents our aggregate remaining performance obligations that will be recognized as revenue over the period in which the performance obligations are satisfied, and is expected to be recognized as revenue as follows (in thousands):

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| | |
|:---|:---|
| Periods Ending September 30, | Total Deferred Revenue |
| 2025 (remainder of) | $1636 |
| 2026 | 5498 |
| 2027 | 4163 |
| 2028 | 2022 |
| Total | $13319 |

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A portion of our compensation under our CPA with United is designed to reimburse the Company for certain aircraft ownership costs. Such costs include aircraft principal and interest debt service costs, aircraft depreciation, and interest expense or aircraft lease expense costs while the aircraft is under contract. We have concluded this component of the compensation under these agreements is lease revenue, as such agreements identify the "right of use" of a specific type and number of aircraft over a stated period of time. We account for the non-lease component under ASC 606 and account for the lease component under ASC 842. We allocate the consideration in the contract between the lease and non-lease components based on their stated contract prices, which is based on a cost basis approach representing our estimate of the stand-alone selling prices.

The lease revenue associated with our CPA is accounted for as an operating lease and is reflected as contract revenue in the condensed consolidated statements of operations and comprehensive loss. We recognized $0.2 million and $29.5 million of lease revenue for the three months ended June 30, 2025 and June 30, 2024, respectively, and $26.1 million and $98.1 million during the nine months ended June 30, 2025 and June 30, 2024, respectively. We have not separately stated aircraft rental income in the condensed consolidated statements of operations and comprehensive loss because the use of the aircraft is not a separate activity from the total service provided under our CPA.

Leases

We determine if an arrangement is a lease at inception. As a lessee, we have lease agreements with lease and non-lease components and have elected to account for such components as a single lease component. Our operating lease activities are recorded in operating lease right-of-use assets, current maturities of operating leases, and noncurrent operating lease liabilities in the condensed consolidated balance sheets. As of June 30, 2025, we did not have any leases determined to be finance leases.

Right-of-use ("ROU") assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. Certain variable lease payments are not included in the calculation of the right-of-use assets and lease liability due to uncertainty of the payment amount and are recorded as lease expense in the period incurred. In determining the present value of lease payments, we use either the implicit rate in the lease when it is readily determinable or our estimated incremental borrowing rate, based on information available at the lease commencement. Our lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Operating lease costs are recognized on a straight-line basis over the lease term, while finance leases result in a front-loaded expense pattern.

As a lessee, we have elected a short-term lease practical expedient on all classes of underlying assets, permitting us to not apply the recognition requirements of ASC 842 to leases with terms of 12 months or less.

We lease, at nominal rates, aircraft from United under our CPA, which are excluded from operating lease assets and liabilities as they do not represent embedded leases under ASC 842. Other than such leases at nominal

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amounts, we do not have any aircraft leases from third parties. In the event that we or United decide to exit an activity involving leased aircraft, losses may be incurred. In the event that we exit an activity that results in exit losses, these losses are accrued as each aircraft is removed from operations for early termination penalties, lease settle up and other charges. Additionally, any remaining ROU assets and lease liabilities are written off.

Contract Liabilities

Contract liabilities consist of deferred credits for cost reimbursements from United related to aircraft modifications and pilot training associated with the CPA. The deferred credits are recognized over time depicting the pattern of the transfer of control of services resulting in ratable recognition of revenue over the remaining term of the CPA. Upon the sale of the 18 E-175 aircraft to United during the nine months ended June 30, 2025, the deferred credits were written off

Current and non-current deferred credits are recorded in other accrued expenses and non-current deferred credits in the condensed consolidated balance sheets. Our total current and non-current deferred credit balances at June 30, 2025 and September 30, 2024 were zero and $4.1 million, respectively. We recognized zero and $0.3 million of the deferred credits within contract revenue during the three months ended June 30, 2025 and June 30, 2024, respectively, and $4.1 million and $1.5 million during the nine months ended June 30, 2025 and June 30, 2024, respectively.

Maintenance Expense

We operate under an FAA approved continuous inspection and maintenance program. The cost of non-major scheduled inspections and repairs and routine maintenance costs for all aircraft and engines are charged to maintenance expense as incurred.

We accounted for heavy maintenance and major overhaul costs on our previously owned E-175 fleet under the deferral method whereby the cost of heavy maintenance and major overhaul is deferred and amortized until the earlier of the end of the useful life of the related asset or the next scheduled heavy maintenance event. Amortization of heavy maintenance and major overhaul costs charged to depreciation and amortization expense was zero and $0.8 million for the three months ended June 30, 2025 and June 30, 2024, respectively, and $1.3 million and $2.3 million for the nine months ended June 30, 2025 and June 30, 2024, respectively. Upon the sale of the 18 E-175 aircraft to United during the nine months ended June 30, 2025, the remaining deferred heavy maintenance balances were written off. As of June 30, 2025 and September 30, 2024, our deferred heavy maintenance balance, net of accumulated amortization, was zero and $6.4 million, respectively.

We account for heavy maintenance and major overhaul costs for all other fleets under the direct expense method whereby costs are expensed to maintenance expense as incurred, except for certain maintenance contracts where labor and materials price risks have been transferred to the service provider and require payment on a utilization basis, such as flight hours. Costs incurred for maintenance and repair for utilization maintenance contracts where labor and materials price risks have been transferred to the service provider are charged to maintenance expense based on contractual payment terms.

Engine overhaul expense totaled $5.5 million and $6.8 million for the three months ended June 30, 2025 and June 30, 2024, respectively, of which $5.5 million and $6.8 million, respectively, was pass-through expense. Engine overhaul expense totaled $24.8 million and $18.1 million for the nine months ended June 30, 2025 and June 30, 2024, respectively, of which $24.7 million and $18.1 million, respectively, was pass-through expense. Airframe C-check expense totaled $5.1 million and $3.6 million for the three months ended June 30, 2025 and June 30, 2024, respectively, of which $3.8 million and $2.1 million, respectively, was pass-through expense. Airframe C-check expense totaled $21.0 million and $14.7 million for the nine months ended June 30, 2025 and June 30, 2024, respectively, of which $17.8 million and $9.1 million, respectively, was pass-through expense.

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Assets Held for Sale

We classify assets as held for sale when our management approves and commits to a formal plan of sale that is probable of being completed within one year. Assets designated as held for sale are recorded at the lower of their current carrying value or their fair market value, less costs to sell, beginning in the period in which the assets meet the criteria to be classified as held for sale. See Note 5 for further discussion of our assets classified as held for sale as of June 30, 2025.

3. Recent Accounting Pronouncements

We continue to evaluate recent accounting pronouncements and the effect that new standards and guidance has on our consolidated financial statements. During the nine months ended June 30, 2025, the Company applied new disclosure requirements as described in Accounting Standards Update 2023-07. There are no other recent accounting pronouncements that apply to the Company.

4. Concentrations of Credit Risk

Financial instruments that potentially expose the Company to a concentration of credit risk consist principally of cash and cash equivalents that are primarily held by financial institutions in the United States and accounts receivable. Amounts on deposit with a financial institution may at times exceed federally insured limits. We maintain our cash accounts with high credit quality financial institutions and, accordingly, minimal credit risk exists with respect to the financial institutions.

As of June 30, 2025, we had $3.0 million in restricted cash. We have an agreement with a financial institution for a letter of credit facility and to issue letters of credit for particular airport authorities, worker's compensation insurance, property and casualty insurance and other business needs as required in certain lease agreements. Pursuant to the terms of this agreement, $3.0 million of outstanding letters of credit are required to be collateralized by amounts on deposit.

Significant customers are those which represent more than 10% of our total revenue or net accounts receivable balance at each respective balance sheet date. All of our revenue for the three and nine months ended June 30, 2025 and June 30, 2024 was derived from the United CPA, DHL FSA, leases of our CRJ-700 aircraft to a third party, and MPD. Substantially all of our accounts receivable at June 30, 2025 and September 30, 2024 was derived from these agreements.

United accounted for approximately 98% and 98% of our total revenue for the three months ended June 30, 2025 and June 30, 2024, respectively, and 98% and 96% of our total revenue for the nine months ended June 30, 2025 and 2024, respectively. A termination of the United CPA would have a material adverse effect on our business prospects, financial condition, results of operations, and cash flows.

Amounts billed under the United CPA are subject to our interpretation of the applicable agreement and are subject to audit by United. Periodically, our United disputes amounts billed and pay amounts less than the amount billed. Ultimate collection of the remaining amounts not only depends upon the Company prevailing under the applicable audit, but also upon the financial well-being of United. As such, we review amounts due based on historical collection trends, the financial condition of United, and current external market factors and record a reserve for amounts estimated to be uncollectible in accordance with the applicable guidance for expected credit losses. Our allowance for doubtful accounts was not material as of June 30, 2025 or September 30, 2024. If our ability to collect these receivables and the financial viability of United is materially different than estimated, our estimate of the allowance for credit losses could be materially impacted.

5. Assets Held for Sale

During the three months ended June 30, 2025, management continued our plan to sell certain of our aircraft and related parts. As of March 31, 2025, the Company had a total of 27 airframes, 46 engines, and certain spare

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parts classified as held for sale. The Company completed the sale of six CRJ-900 airframes, 13 GE Model CF34-8C engines, and certain spare parts during the three months ended June 30, 2025.

During the three months ended June 30, 2025, the Company reclassified one spare engine to held for sale. We have a total of 21 airframes, 34 engines, and certain spare parts classified as held for sale as of June 30, 2025 with a net book value of $60.3 million, all of which is classified as current assets on our condensed consolidated balance sheet.

6. Balance Sheet Information

Certain significant amounts included in the condensed consolidated balance sheets consisted of the following (in thousands):

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| | | |
|:---|:---|:---|
|  | June 30,<br>2025 | September 30,<br>2024 |
| Expendable parts and supplies, net: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expendable parts and supplies | $23441 | $39089 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: expendable parts warranty | (4355) | (6079) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: obsolescence | (2914) | (4738) |
|  | $16172 | $28272 |
| Property and equipment, net: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Aircraft and other flight equipment | $50104 | $591421 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other equipment | 9588 | 9503 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total property and equipment | 59692 | 600924 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: accumulated depreciation | (27842) | (174573) |
|  | $31850 | $426351 |
| Other assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments in equity securities | $350 | $300 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease incentives |  | 812 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contract asset | 4441 | 6081 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 675 | 516 |
|  | $5466 | $7709 |
| Other accrued expenses: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued property taxes | $2483 | $4650 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued interest | 1029 | 2997 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued vacation | 6497 | 7421 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued lodging | 4092 | 4433 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued maintenance | 1415 | 2493 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued employee benefits | 1550 | 1075 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued fleet operating expense | 412 | 2751 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 5537 | 6488 |
|  | $23015 | $32308 |
| Other noncurrent liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Warrant liabilities | $100 | $25225 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease incentive obligations |  | 1050 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term employee benefits | 1737 | 485 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other |  | 1819 |
|  | $1837 | $28579 |

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Impairment of Long-lived Assets

The Company monitors for any indicators of impairment of the long-lived fixed assets. When certain conditions or changes in the economic situation exist, the assets may be impaired and the carrying amount of the assets exceed their fair value. The assets are then tested for recoverability of carrying amount. The Company records impairment charges on long-lived assets used in operations when events and circumstances indicate that the assets may be impaired, the undiscounted net cash flows estimated to be generated by those assets are less than the carrying amount of those assets, and the net book value of the assets exceeds their estimated fair value.

We group assets at the capacity purchase agreement level (i.e., the lowest level for which there are identifiable cash flows). If impairment indicators exist with respect to any of the asset groups, we estimate future cash flows based on projections of capacity purchase or flight services agreement, block hours, maintenance events, labor costs and other relevant factors.

During the three months ended June 30, 2025, the Company assessed whether any indicators of impairment existed in any of our long-lived asset groups and noted that no indicators of impairment existed for our fleet.

During the three months ended June 30, 2025, the Company reevaluated the fair value of our held for sale assets and recorded a net impairment true-up adjustment gain of $0.1 million. No other indicators of impairment were present during the quarter and no further steps were determined to be necessary.

The Company's assumptions about future conditions relevant to the assessment of potential impairment of its long-lived assets are subject to uncertainty, and the Company will continue to monitor these conditions in future periods as new information becomes available, and will update its analyses accordingly.

Depreciation Expense on Property and Equipment:

Depreciation of property and equipment totaled $3.4 million and $9.7 million for the three months ended June 30, 2025 and June 30, 2024, respectively, and $17.3 million and $32.8 million for the nine months ended June 30, 2025 and June 30, 2024, respectively.

7. Fair Value Measurements

Fair value is an exit price representing the amount that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. Accounting standards include disclosure requirements relating to the fair values used for certain financial instruments and establish a fair value hierarchy. The hierarchy prioritizes valuation inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Each fair value measurement is reported in one of three levels:

Level 1—Observable inputs such as quoted prices in active markets for identical assets or liabilities;

Level 2—Inputs, other than quoted prices in active markets, which are observable either directly or indirectly; and

Level 3—Unobservable inputs in which there is little or no market data, requiring an entity to develop its own assumptions.

Other than our assets held for sale, investments in equity securities, and warrant liabilities, described in Notes 5, 6, and 14, respectively, we did not measure any of our assets or liabilities at fair value on a recurring or nonrecurring basis as of June 30, 2025 and September 30, 2024.

The carrying values reported in the condensed consolidated balance sheets for cash and cash equivalents, accounts receivable, and accounts payable approximate fair value because of the immediate or short-term maturity of these financial instruments.

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Our debt agreements are not traded on an active market. We have determined the estimated fair value of our debt to be Level 3, as certain inputs used to determine the fair value of these agreements are unobservable and, therefore, could be sensitive to changes in inputs. We utilize the discounted cash flow method to estimate the fair value of Level 3 debt.

The carrying value and estimated fair value of our total long-term debt and finance leases, including current maturities, were as follows (in millions):

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| | | | | |
|:---|:---|:---|:---|:---|
|  | June 30, 2025 | June 30, 2025 | September 30, 2024 | September 30, 2024 |
|  | Carrying<br> Value | Fair<br> Value | Carrying<br> Value | Fair<br> Value |
|  Long-term debt and finance leases, including current maturities<sup>(1)</sup> | $113.7 | $110.4 | $315.2 | $305.3 |

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(1) Current and prior period long-term debts' carrying and fair values exclude net debt issuance costs.

8. Long-Term Debt, Finance Leases, and Other Borrowings

Long-term debt as of June 30, 2025 and September 30, 2024, consisted of the following (in thousands):

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| | | |
|:---|:---|:---|
|  | June 30,<br> 2025 | September 30,<br> 2024 |
|  Notes payable to secured parties, due in semi-annual installments, interest based on SOFR plus interest spread at 4.75% to 6.25% through 2028, collateralized by the underlying aircraft | $— | $85469 |
|  Notes payable to secured parties, due in quarterly installments, interest based on SOFR plus interest at spread 2.20% to 2.32% for senior note & 4.50% for subordinated note through 2028, collateralized by the underlying aircraft |  | 73884 |
|  Revolving credit facility, quarterly interest based on SOFR plus interest spread at 4.50% through 2028 | 33018 | 37520 |
|  Other obligations due to financial institution, monthly and/or quarterly interest due from 2022 through 2031, collateralized by the underlying equipment |  | 4681 |
|  Notes payable to the UST, quarterly interest based on SOFR plus interest spread at 3.50% through 2025 | 80726 | 113656 |
|  Gross long-term debt, including current maturities | 113744 | 315210 |
|  Less unamortized debt issuance costs |  | (2395) |
|  Less notes payable warrants | (774) | (2544) |
|  Net long-term debt, including current maturities | 112970 | 310271 |
|  Less current portion, net of unamortized debt issuance costs | (84725) | (50455) |
|  Net long-term debt | $28245 | $259816 |

---

------

Principal maturities of long-term debt as of June 30, 2025, and for each of the next five years are as follows (in thousands):

---

| | |
|:---|:---|
| **Periods Ending September 30,** | **Total Principal** |
|  2025 (remainder of) | $— |
| 2026 | 86538 |
| 2027 | 6190 |
| 2028 | 4782 |
| 2029 | 16234 |
|  | $113744 |

---

The carrying value of collateralized aircraft and equipment as of June 30, 2025 was approximately $46.7 million.

Enhanced Equipment Trust Certificate ("EETC")

In December 2015, an Enhanced Equipment Trust Certificate ("EETC") pass-through trust was created to issue pass-through certificates to obtain financing for new E-175 aircraft. In connection with the sale of the E-175 aircraft, United assumed the EETC note with a remaining balance of $73.4 million at the time of assumption. As of June 30, 2025, the Company does not have any obligations under the EETC note.

United Revolving Credit Facility

On December 27, 2022, in connection with entering into the Amended and Restated United CPA, (i) United agreed to purchase and assume all of First Citizens' rights and obligations as a lender under the Existing Facility pursuant to an Assignment and Assumption Agreement, (ii) United and CIT Bank agreed to amend the Existing Facility pursuant to an Amendment No. 1, dated December 27, 2022 ("Amendment No. 1"), and an Amendment No. 2, dated January 27, 2023 ("Amendment No. 2"; the Existing Facility as amended by Amendment No. 1 and Amendment No. 2, the "Amended Facility"), and (iii) Wilmington Trust, National Association agreed to assume all of CIT Bank's rights and obligations as Administrative Agent pursuant to an Agency Resignation, Appointment and Assumption Agreement, dated as of January 27, 2023. Amendment No. 1, among other things, extends the Maturity Date from the earlier to occur of November 30, 2028, or the date of the termination of the Amended and Restated United CPA; provides for a revolving loan of $10.5 million plus fees and expenses, which is due January 31, 2024, subject to certain mandatory prepayment requirements; provides for Revolving Commitments equal to $30.7 million plus the original principal amount of the $10.5 million revolving loan; amortization of the obligations outstanding under the existing CIT Agreement commencing quarterly until March 31, 2025; and a covenant capping Restricted Payments (as defined in the Amended Facility) at $5.0 million per fiscal year, a consolidated interest and rental coverage ratio of 1.00 to 1.00 covenant, and a Liquidity (as defined in the Amended Facility) requirement of not less than $15.0 million at the close of any business day. Subsequent to June 30, 2024, United agreed to grant the Company a waiver on the $15.0 million minimum liquidity requirement through December 31, 2024. Interest assessed under the Amended Facility is 3.50% for Base Rate Loans and 4.50% for Term SOFR Loans (as such terms are defined in the Amended Facility). Amendment No. 2, among other things, amends the definition of Controlled Account (as defined in the Amended Facility). Amounts borrowed under this Amended Facility are secured by a collateral pool consisting of a combination of expendable parts, rotable parts and engines and a pledge of the Company's stock in certain aviation companies. United funded $25.5 million as of the closing date of Amendment No. 1, to be used for general corporate purposes.

The United line of credit contains an additional deemed prepayment of $15 million with potential forgiveness upon the achievement of a certain number of block hours as well as maintaining a CCF of at least 99.3% over any rolling four-month period from April 2023 through December 2025. In order to earn forgiveness

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on the deemed prepayment, we must also have repaid the bridge loan in full. During the three months ended March 31, 2024, the bridge loan was repaid in full, and $10.5 million of the potential $15 million achieved was recognized as a deemed prepayment. The remaining $4.5 million was recognized as a deemed prepayment during the nine months ended June 30, 2025.

On September 6, 2023, the Company amended the existing United Credit Facility to (i) permit the Company to re-draw approximately $7.9 million of the Effective Date Bridge Loan (as defined in the United Credit Facility) previously repaid; (ii) increased the amount of Revolving Commitments (as defined in the United Credit Facility) from $30.7 million to $50.7 million, in each case, plus the original principal amount of the Effective Date Bridge Loan and subject to the Borrowing Base (as defined in the United Credit Facility); and (iii) amended the calculation of the Borrowing Base. Amounts borrowed under this facility bear interest at 3.50% for Base Rate Loans and 4.50% per annum for Term SOFR Loans. Amounts borrowed under the Amended Credit Facility are secured by a collateral pool consisting of a combination of expendable parts, rotable parts and engines, a pledge of certain of the Company's bank accounts and a pledge of the Company's stock in certain aviation companies.

Loan Agreement with the United States Department of the Treasury

On October 30, 2020, we entered into a loan and guarantee agreement with the U.S. Department of the Treasury (the "U.S. Treasury") for a secured loan facility of up to $200.0 million that matures in October 2025 ("the Treasury Loan"). During the first quarter of fiscal 2021, we borrowed an aggregate of $195.0 million. No further borrowings are available under the Treasury Loan.

The Treasury Loan bears interest at a variable rate equal to (a)(i) the SOFR rate divided by (ii) one minus the Eurodollar Reserve Percentage plus (b) 3.50%. Accrued interest on the loans is payable in arrears, or paid-in-kind by increasing the principal balance of the loan by such interest payment, on the first business day following the 14<sup>th</sup> day of each March, June, September, and December. As of June 30, 2025, the all-in rate was 8.06%.

All principal amounts outstanding under the Treasury Loan are due and payable in a single installment on October 30, 2025. Commencing in June 2022, we initiated the payment of interest in lieu of increasing the principal amount of the loan. Our obligations under the Treasury Loan are secured by certain aircraft, aircraft engines, accounts receivable, ground service equipment, flight simulators, and tooling (collectively, the "Collateral"). The obligations under the Treasury Loan are guaranteed by the Company and Mesa Air Group Inventory Management. The proceeds were used for general corporate purposes and operating expenses, to the extent permitted by the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act"). Voluntary prepayments of the Treasury Loan may be made, in whole or in part, without premium or penalty, at any time and from time to time. Amounts prepaid may not be reborrowed. Mandatory prepayments of the Treasury Loan are required, without premium or penalty, to the extent necessary to comply with the covenants discussed below, certain dispositions of the Collateral, certain debt issuances secured by liens on the Collateral, and certain insurance payments related to the Collateral. In addition, if a "change of control" (as defined in the Treasury Loan) occurs with respect to Mesa Airlines, we will be required to repay the loans outstanding under the Treasury Loan.

The Treasury Loan requires us, under certain circumstances, including within 10 business days prior to the last business day of March and September of each year beginning March 2021, to appraise the value of the Collateral and recalculate the collateral coverage ratio. If the calculated collateral coverage ratio is less than 1.55 to 1.0, we are required either to provide additional Collateral (which may include cash collateral) to secure the obligations under the Treasury Loan or repay the term loans under the Treasury Loan, in such amounts that the recalculated collateral coverage ratio, after giving effect to any such additional Collateral or repayment, is at least 1.55 to 1.0. On December 23, 2024, we entered into an agreement with the UST to lower the minimum collateral coverage ratio ("CCR") covenant to .99 to 1.0 effective as of November 22, 2024 through February 28, 2025. Additionally, on March 18, 2025, we entered into a new CCR Modification Agreement with the UST to lower the minimum CCR covenant to .91 to 1.0 effective as of February 28, 2025, through the maturity date of

------

the loan. As a result of the new CCR modification agreement, we are in compliance with this covenant as of June 30, 2025.

The Treasury Loan contains two financial covenants, a minimum collateral coverage ratio and a minimum liquidity level. The Treasury Loan also contains customary negative and affirmative covenants for credit facilities of this type, including, among others: (a) limitations on dividends and distributions; (b) limitations on the creation of certain liens; (c) restrictions on certain dispositions, investments, and acquisitions; (d) limitations on transactions with affiliates; (e) restrictions on fundamental changes to the business, and (f) restrictions on lobbying activities. Additionally, we are required to comply with the relevant provisions of the CARES Act, including limits on employment level reductions after September 30, 2020, restrictions on dividends and stock buybacks, limitations on executive compensation, and requirements to maintain certain levels of scheduled service.

In connection with the Treasury Loan and as partial compensation to the U.S. Treasury for the provision of financial assistance under the Treasury Loan, we issued to the U.S. Treasury warrants to purchase an aggregate of 4,899,497 shares of our common stock at an exercise price of $3.98 per share, which was the closing price of the common stock on April 9, 2020. The exercise price and number of shares of common stock issuable under the warrants are subject to adjustment as a result of anti-dilution provisions contained in the warrants for certain stock issuances, dividends, and other corporate actions. The warrants expire on the fifth anniversary of the date of issuance and are exercisable either through net share settlement or net cash settlement, at our option. The fair value of the warrants was estimated using a Black-Scholes option pricing model and recorded in stockholders' equity with an offsetting debt discount to the Treasury Loan in the condensed consolidated balance sheets.

9. Earnings/(Loss) Per Share

Calculations of net (loss)/earnings per common share were as follows (in thousands, except per share amounts):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Three Months Ended<br>June 30, | Three Months Ended<br>June 30, | Nine Months Ended<br>June 30, | Nine Months Ended<br>June 30, |
|  | 2025 | 2024 | 2025 | 2024 |
| Net income/(loss) | $20856 | $(19908) | $(152332) | $(66097) |
| Basic weighted average common shares outstanding | 41439 | 41217 | 41368 | 41075 |
| Diluted weighted average common shares outstanding | 41683 | 41217 | 41368 | 41075 |
| Net (loss)/income per common share attributable to Mesa Air Group: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic | $0.50 | $(0.48) | $(3.68) | $(1.61) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted | $0.50 | $(0.48) | $(3.68) | $(1.61) |

---

Basic income or loss per common share is computed by dividing net income or loss attributable to Mesa Air Group by the weighted average number of common shares outstanding during the period.

The number of incremental shares from the assumed issuance of shares relating to restricted stock and exercise of warrants is calculated by applying the treasury stock method. Share-based awards and warrants whose impact is anti-dilutive under the treasury stock method are excluded from the diluted net income or loss per share calculation. In loss periods, these incremental shares are excluded from the calculation of diluted loss per share, as the inclusion of approximately 1.0 million unvested restricted shares and 4.9 million warrants would have an anti-dilutive effect.

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The following number of weighted-average potentially dilutive shares were excluded from the calculation of diluted net loss per share because the effect of including such potentially dilutive shares would have been anti-dilutive:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Three Months<br>Ended<br>June 30, | Three Months<br>Ended<br>June 30, | Nine Months<br>Ended<br>June 30, | Nine Months<br>Ended<br>June 30, |
|  | 2025 | 2024 | 2025 | 2024 |
| Warrants |  |  |  |  |
| Restricted stock |  |  | 106 |  |
|  |  |  | 106 |  |

---

10. Common Stock

As discussed in Note 8, we issued warrants to the U.S. Treasury to purchase shares of our common stock, no par value, at an exercise price of $3.98 per share. The exercise price and number of shares issuable under the warrants are subject to adjustment as a result of anti-dilution provisions contained in the warrants for certain stock issuances, dividends, and other corporate actions. The warrants expire on the fifth anniversary of the date of issuance and are exercisable either through net share settlement or net cash settlement, at our option. The warrants were accounted for within equity at a grant date fair value determined under the Black-Scholes option pricing model. As of June 30, 2025, 4,899,497 warrants were issued and outstanding.

We have not historically paid dividends on shares of our common stock. Additionally, the Treasury Loan contains restrictions that limit our ability to or prohibit us from paying dividends to holders of our common stock.

11. Income Taxes

Our effective tax rate ("ETR") from continuing operations was -1.2% and 3.7% for the three and nine months ended June 30, 2025, respectively, and 3.9% and -0.2% for the three and nine months ended June 30, 2024, respectively. The Company's ETR for all periods differed from the statutory rate principally as a result of the valuation allowance on operating loss carryforwards and deferred tax assets on tax expense.

We continue to maintain a valuation allowance on a portion of our federal and state net operating losses in jurisdictions with shortened carryforward periods or in jurisdictions where our operations have significantly decreased as compared to prior years in which the net operating losses were generated.

As of June 30, 2025, the Company had aggregate federal and state net operating loss carryforwards of approximately $277.6 million and $150.6 million, respectively, which expire in 2030-2038 and 2024-2043, respectively. No state net operating loss carryforwards are expected to expire in the current fiscal year.

12. Share-Based Compensation

Restricted Stock

We grant restricted stock units ("RSUs") as part of our long-term incentive compensation to employees and non-employee members of the Board of Directors. RSUs generally vest over a period of three to five years for employees and one year for members of the Board of Directors. The restricted common stock underlying RSUs are not deemed issued or outstanding upon grant, and do not carry any voting rights.

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The restricted share activity for the nine months ended June 30, 2025 is summarized as follows:

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| | | |
|:---|:---|:---|
|  | Number<br>of Shares | Weighted-<br>Average<br>Grant Date<br>Fair Value |
| Restricted shares unvested at September 30, 2024 | 975415 | $1.83 |
| Granted | 550247 | $1.04 |
| Vested | (532397) | $1.92 |
| Forfeited | (29575) | $1.88 |
| Restricted shares unvested at June 30, 2025 | 963690 | $1.32 |

---

As of June 30, 2025, there was $1.2 million of total unrecognized compensation cost related to unvested share-based compensation arrangements, which is expected to be recognized over a weighted-average period of 1.6 years.

Compensation cost for share-based awards is recognized on a straight-line basis over the vesting period. Share-based compensation expense for the three months ended June 30, 2025 and June 30, 2024 was $0.3 million and $0.2 million, respectively, and $0.8 million and $1.0 million for the nine months ended June 30, 2025 and June 30, 2024, respectively.

13. Leases

As of June 30, 2025, we leased airport facilities, office space, and other property and equipment under non-cancelable operating leases. The leases generally require us to pay all taxes, maintenance, insurance, and other operating expenses. Operating leased expense is recognized as a rental expense on a straight-line basis over the lease term, net of lessor rebates and other incentives.

A

ggregate rental expense under all aircraft, equipment and facility leases totaled approximately $1.9 million and $4.5 million for the three months ended June 30, 2025 and June 30, 2024, respectively, and $8.0 million and $17.1 million for the nine months ended June 30, 2025 and June 30, 2024, respectively.

The components of our lease costs were as follows (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Three Months Ended<br>June 30, | Three Months Ended<br>June 30, | Nine Months Ended<br>June 30, | Nine Months Ended<br>June 30, |
|  | 2025 | 2024 | 2025 | 2024 |
| Operating lease costs | $639 | $810 | $2000 | $3233 |
| Variable and short-term lease costs | 1261 | 2581 | 5907 | 5543 |
| Interest expense on finance lease liabilities |  | 746 | 48 | 3291 |
| Amortization expense of finance lease assets |  | 365 | 54 | 5001 |
| Total lease costs | $1900 | $4502 | $8009 | $17068 |

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As of June 30, 2025, our operating leases have a remaining weighted average lease term of

5.8 years and our operating lease liabilities were measured using a weighted average discount rate of 5.4%.

14. Commitments and Contingencies

Litigation

We are subject to certain legal actions which we consider routine to our business activities. As of June 30, 2025, our management believed the ultimate outcomes of other routine legal matters are not likely to have a material adverse effect on our financial position, liquidity or results of operations.

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Electric Aircraft Forward Purchase Commitments

In February 2021, we entered into a forward purchase contract with Archer for a number of eVTOL aircraft. The aggregate base commitment for the eVTOL aircraft is $200.0 million, with an option to purchase additional aircraft. Our obligation to purchase the eVTOL aircraft is subject to the Company and Archer first agreeing in the future to a number of terms and conditions, which may or may not be met. During the three months ended June 30, 2025, the Company agreed to use reasonable best efforts to sell, assign, or transfer all rights and obligations associated with its Archer warrants and aircraft purchase agreement obligations to one or more third parties. If the Company is unable to transfer such rights and obligations by an agreed upon date, the Company and United will use commercially reasonable efforts to either terminate the remaining rights and obligations or have United assume them. Due to the transfer to United, the Company wrote off its liability associated with Archer obligations during the three months ended June 30, 2025.

In July 2021, we entered into a forward purchase contract with Heart for a number of fully electric aircraft. The maximum aggregate base commitment for the aircraft is $1,200.0 million, with an option to purchase additional aircraft. Our obligation to purchase the aircraft is subject to the Company and Heart first agreeing in the future to a number of terms and conditions, which may or may not be met.

Other Commitments

We have certain contracts for goods and services that require us to pay a penalty, acquire inventory specific to us or purchase contract-specific equipment, as defined by each respective contract, if we terminate the contract without cause prior to its expiration date. Because these obligations are contingent on our termination of the contract without cause prior to its expiration date, no obligation would exist unless such a termination occurs.

15. Subsequent Events

Sale of Assets

On July 11, 2025 and July 24, 2025, the Company closed the sale of one CRJ-900 airframe and five GE Model CF34-8C engines, respectively, to third parties for gross proceeds of $4.6 million, all of which was used to pay down our UST Loan.

One Big Beautiful Bill Act

On July 4, 2025, President Trump signed into law the legislation commonly referred to as the One Big Beautiful Bill Act ("OBBBA"). The OBBBA includes various provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The OBBBA has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. We are currently assessing its impact on our consolidated financial statements and will recognize the income tax effects in the consolidated financial statements beginning in the period in which the OBBBA was signed into law.

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#### INDEPENDENT AUDITOR'S REPORT
To the Board of Directors and Shareholders of Republic Airways Holdings Inc.

Indianapolis, IN

#### Opinion
We have audited the consolidated financial statements of Republic Airways Holdings Inc. and subsidiaries (the "Company"), which comprise the consolidated balance sheets as of December 31, 2024 and 2023, and the related consolidated statements of operations, mezzanine equity and shareholders' equity, and cash flows, for each of the three years in the period ended December 31, 2024, and the related notes to the consolidated financial statements (collectively referred to as the "financial statements").

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024, in accordance with accounting principles generally accepted in the United States of America.

#### Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

#### Emphasis of Matter
As discussed in Note 3, *Revenue Recognition*, and Note 14, *Related Party Transactions*, to the financial statements, substantially all revenues are derived from capacity purchase agreements with American Airlines, Inc., Delta Air Lines, Inc., and United Airlines, Inc. (the "Partner Airlines"). Further, each of the Partner Airlines are related parties through their ownership of the Company's common stock. Our opinion is not modified with respect to this matter.

#### Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for one year after the date that the financial statements are available to be issued.

#### Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a

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##### [**Table of Contents**](#toc)
guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, we:

• Exercise professional judgment and maintain professional skepticism throughout the audit.

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Accordingly, no such opinion is expressed.

• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

/s/ Deloitte & Touche LLP

July 10, 2025

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#### REPUBLIC AIRWAYS HOLDINGS INC. AND SUBSIDIARIES

#### CONSOLIDATED BALANCE SHEETS

#### AS OF DECEMBER 31, 2023 AND 2024

#### (In millions, except share and per share amounts)

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| | | |
|:---|:---|:---|
|  | **2023** | **2024** |
|  **ASSETS** |  |  |
|  CURRENT ASSETS: |  |  |
|  Cash and cash equivalents | $92.4 | $110.5 |
|  Marketable securities | 249.8 | 191.5 |
|  Restricted cash | 21.1 | 21.4 |
|  Receivables, net of allowance for doubtful accounts of $1.3 and $1.7, respectively | 9.7 | 9.8 |
|  Receivables—related parties | 22.8 | 41.9 |
|  Inventories | 59.2 | 63.0 |
|  Prepaid expenses and other current assets | 11.1 | 15.2 |
|  Assets held for sale | 13.6 |  |
|  Total current assets | 479.7 | 453.3 |
|  Property and other equipment, net | 2050.6 | 2109.5 |
|  Operating lease right-of-use assets | 132.5 | 122.9 |
|  Other non-current assets | 46.1 | 47.1 |
|  Other non-current assets—related parties | 25.2 | 35.0 |
|  TOTAL ASSETS | $2734.1 | $2767.8 |
|  **LIABILITIES, MEZZANINE EQUITY, AND SHAREHOLDERS' EQUITY** |  |  |
|  CURRENT LIABILITIES: |  |  |
|  Current portion of long-term debt and finance leases | $238.7 | $259.6 |
|  Current portion of operating lease liabilities | 15.7 | 13.5 |
|  Accounts payable | 36.1 | 37.2 |
|  Accrued liabilities | 154.8 | 168.9 |
|  Accounts payable and accrued liabilities—related parties | 10.8 | 9.9 |
|  Total current liabilities | 456.1 | 489.1 |
|  Long-term debt and finance leases—less current portion | 865.6 | 752.2 |
|  Operating lease liabilities—less current portion | 123.9 | 117.6 |
|  Other non-current liabilities | 41.6 | 44.8 |
|  Other non-current liabilities—related parties | 7.4 | 41.8 |
|  Deferred income taxes | 188.8 | 206.0 |
|  Total liabilities | 1683.4 | 1651.5 |
|  COMMITMENTS AND CONTINGENCIES (Notes 9 & 10) |  |  |
|  MEZZANINE EQUITY (Note 11): |  |  |
|  Restricted stock units, 74,169 shares authorized; 2,645 shares issued and outstanding | 4.8 | 5.8 |
|  SHAREHOLDERS' EQUITY: |  |  |
|  Common stock, $0.001 par value; 1,025,831 shares authorized, and 1,000,000 shares issued and outstanding |  |  |
|  Additional paid-in capital | 478.0 | 478.0 |
|  Accumulated earnings | 567.9 | 632.5 |
|  Total shareholders' equity | 1045.9 | 1110.5 |
|  TOTAL LIABILITIES, MEZZANINE EQUITY, AND SHAREHOLDERS' EQUITY | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2734.1 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2767.8 |

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See accompanying notes to the consolidated financial statements.

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#### REPUBLIC AIRWAYS HOLDINGS INC. AND SUBSIDIARIES

#### CONSOLIDATED STATEMENTS OF OPERATIONS

#### FOR THE YEARS ENDED DECEMBER 31, 2022, 2023, AND 2024

#### (In millions)

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| | | | |
|:---|:---|:---|:---|
|  | **2022** | **2023** | **2024** |
|  REVENUES <sup>(1)</sup> | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1327.2 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1429.1 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1474.0 |
|  OPERATING EXPENSES: |  |  |  |
|  Wages and benefits | 549.3 | 654.8 | 677.2 |
|  Aircraft and engine rent | 8.1 | 6.1 | 3.6 |
|  Maintenance and repair | 253.8 | 254.1 | 268.0 |
|  Maintenance and repair—related parties | 26.8 | 31.2 | 43.2 |
|  Depreciation and amortization | 149.7 | 159.4 | 117.0 |
|  Other operating expense | 205.6 | 198.0 | 228.3 |
|  Other operating expense—related parties | 1.6 | (9.8) | (0.3) |
|  Total operating expenses | 1194.9 | 1293.8 | 1337.0 |
|  OPERATING INCOME | 132.3 | 135.3 | 137.0 |
|  OTHER (EXPENSE) INCOME: |  |  |  |
|  Investment (loss) income and other, net | (1.5) | 1.8 | 7.6 |
|  Interest expense | (40.6) | (49.1) | (57.7) |
|  Total other expense, net | (42.1) | (47.3) | (50.1) |
|  INCOME BEFORE INCOME TAXES | 90.2 | 88.0 | 86.9 |
|  INCOME TAX EXPENSE | 22.4 | 33.2 | 22.3 |
|  NET INCOME  | $67.8 | $54.8 | $64.6 |

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<sup>(1)</sup> Substantially all of the Company's revenues are derived from related parties during the years ended December 31, 2022, 2023 and 2024. Refer to Note 14, *Related Party Transactions*.

See accompanying notes to the consolidated financial statements.

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#### REPUBLIC AIRWAYS HOLDINGS INC. AND SUBSIDIARIES

#### CONSOLIDATED STATEMENTS OF MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY

#### FOR THE YEARS ENDED DECEMBER 31, 2022, 2023, AND 2024

#### (In millions, except share amounts)

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Mezzanine Equity** | **Mezzanine Equity** | **Common Stock** | **Common Stock** | **Additional Paid-<br>In Capital** | **Accumulated**<br>**Earnings** | **Total<br>Shareholder's<br>Equity** |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Additional Paid-<br>In Capital** | **Accumulated**<br>**Earnings** | **Total<br>Shareholder's<br>Equity** |
|  Balance at January 1, 2022 | 2538 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 | 1000000 | $— | $478 | $445.3 | $923.3 |
|  Net income |  |  |  |  |  | 67.8 | 67.8 |
|  Stock-based compensation |  | 1.2 |  |  |  |  |  |
|  Balance at December 31, 2022 | 2538 | $3.5 | 1000000 | $— | $478 | $513.1 | $991.1 |
|  Net income |  |  |  |  |  | 54.8 | 54.8 |
|  Stock-based compensation |  | 1.2 |  |  |  |  |  |
|  Repurchase and retirement of common stock | (375) | (0.2) |  |  |  |  |  |
|  Issuance of restricted share units | 482 | 0.3 |  |  |  |  |  |
|  Balance at December 31, 2023 | 2645 | $4.8 | 1000000 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;478 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;567.9 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1045.9 |
|  Net income |  |  |  |  |  | 64.6 | 64.6 |
|  Stock-based compensation |  | 1 |  |  |  |  |  |
|  Balance at December 31, 2024 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2645 | $5.8 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000000 | $— | $478 | $632.5 | $1110.5 |

---

See accompanying notes to the consolidated financial statements.

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#### REPUBLIC AIRWAYS HOLDINGS INC. AND SUBSIDIARIES

#### CONSOLIDATED STATEMENTS OF CASH FLOWS

#### FOR THE YEARS ENDED DECEMBER 31, 2022, 2023 and 2024

#### (In millions)

---

| | | | |
|:---|:---|:---|:---|
|  | **2022** | **2023** | **2024** |
|  OPERATING ACTIVITIES: |  |  |  |
|  Net income | $67.8 | $54.8 | $64.6 |
|  Adjustments to reconcile net income to net cash from operating activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 149.7 | 159.4 | 117 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income taxes | 19.6 | 29.3 | 17.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other, net | 14.8 | 20.1 | 12.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other, net—related parties | (2.2) | (18.5) | (6.1) |
|  Changes in certain assets and liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivables | 0.5 | (0.2) | (2.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivables—related parties | (54.6) | 55.5 | (19.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventories <sup>(1)</sup> | (4.3) | 4.6 | (2.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses and other assets | (4.1) | (3.8) | (10.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses and other assets—related parties | (3.4) | (8.2) | (9.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and other current liabilities | 5 | 32.8 | 25.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and other current liabilities—related parties | (1.3) | (0.8) | (0.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other non-current liabilities | 1.4 | 3.4 | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other non-current liabilities—related parties | 0.8 | 0.8 | 35.8 |
|  NET CASH PROVIDED BY OPERATING ACTIVITIES | 189.7 | 329.2 | 226.1 |
|  INVESTING ACTIVITIES: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of property and equipment <sup>(1)</sup> | (186.0) | (378.1) | (226.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from insurance, sale of property, and other equipment | 1.4 | 133.5 | 86.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pre-delivery deposits paid <sup>(1)</sup> | (13.5) | (13.5) | (32.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases of marketable securities and investments | (98.9) | (282.8) | (187.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from the sale of marketable securities | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;160 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;120 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;255.3 |
|  NET CASH USED IN INVESTING ACTIVITIES | (137.0) | (420.9) | (105.5) |
|  FINANCING ACTIVITIES: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from issuance of debt | 71.7 | 476.6 | 177.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments on debt and finance lease obligations | (259.0) | (260.1) | (240.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments on early debt extinguishment |  | (101.0) | (37.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other, net | (2.5) | (8.4) | (2.0) |
|  NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES | (189.8) | 107.1 | (102.2) |
|  NET CHANGES IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | (137.1) | 15.4 | 18.4 |
|  CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—Beginning of period | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;235.2 | 98.1 | 113.5 |
|  CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—End of period | $98.1 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;113.5 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;131.9 |
|  CASH PAID FOR: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest, net of capitalized amounts | $39.9 | $44.4 | $56 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes, net of refunds | 6.2 | 3.3 | 5.7 |
|  SUPPLEMENTAL DISCLOSURE OF NON-CASH TRANSACTIONS: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property and equipment acquired but not paid | 10.3 | 15 | 7.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Parts credits received from aircraft and engine manufacturers | 2.9 | 6.7 | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Parts credits received from aircraft and engine manufacturers—related parties | 0.7 | 1.4 | 0.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Parts credits used from aircraft and engine manufacturers | 1 |  | 0.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Warrants and put option received from aircraft manufacturer | 17.5 |  |  |

---

<sup>(1)</sup> The Company made aircraft, pre-delivery deposit payments, inventory, and rotable spare part purchases from its original equipment manufacturer, a related party, of $102.0 million, $294.8 million, and $168.2 million during the years ended December 31, 2022, 2023, and 2024, respectively. 

See accompanying notes to the consolidated financial statements

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#### REPUBLIC AIRWAYS HOLDINGS INC. AND SUBSIDIARIES

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2022, 2023, AND 2024
1. ORGANIZATION & BUSINESS

Republic Airways Holdings Inc. (the ''Company'' or the ''Parent'') is a Delaware holding company conducting substantially all of its operations through its wholly-owned regional air carrier subsidiary, Republic Airways Inc. (''Republic Airways'' or the "Airline"). The Company regularly provides scheduled passenger service on approximately 1,000 flights daily to more than 90 cities in the United States, Canada, and the Caribbean operating under the American Eagle, Delta Connection, and United Express brands through our partnerships with American Airlines, Inc. (''American Airlines''), Delta Air Lines, Inc. (''Delta Air Lines''), and United Airlines, Inc. (''United Airlines'') (collectively, our ''Partners'' or ''Partner Airlines'') under fixed-fee capacity purchase agreements ("CPA," or collectively, our "CPAs"). Republic Airways exclusively operates the Embraer E170/175 family of aircraft among our Partners' hub and focus cities.

The Company also operates its Leadership In Flight Training Academy ("LIFT Academy") with a mission to attract a new generation of aviators to commercial aviation by providing superior flight training, while addressing the economic, regulatory, and structural barriers to entry to the aviation industry by offering its graduates a defined career pathway to First Officer with Republic Airways. LIFT Academy has the capacity to train 500 future aviators in furtherance of its mission to attract new aviators to the profession.

Aircraft committed to each of our Partner Airlines' operations as of December 31, 2024 are as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Aircraft** | **American<br>Airlines** | **Delta**<br>**Air Lines** | **United<br>Airlines** | **Total<br>Aircraft<br>Committed** |
|  E170 | 36 | 11 | 15 | 62 |
|  E175 | 79 | 47 | 51 | 177 |
|  Total | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;115 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;58 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;66 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;239 |

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| | |
|:---|:---|
| **Description** | **E170/E175** |
|  **Aircraft committed to Partner Airlines' as of January 1, 2022** | 227 |
|  Placement of New Aircraft | 4 |
|  **Aircraft committed to Partner Airlines' as of January 1, 2023** | **231** |
|  Sale of Aircraft | (6) |
|  New Deliveries | 13 |
|  **Aircraft committed to Partner Airlines' as of January 1, 2024** | **238** |
|  Sale of Aircraft | (6) |
|  New Deliveries | 6 |
|  Repositioned Aircraft | 1 |
| **Aircraft committed to Partner Airlines' as of December 31, 2024** | **239** |

---

**Capacity purchase agreements**—Each of our fixed-fee CPAs are structured so that revenues are generally derived from (i) a fixed fee per departure, flight hour, and/or block hour of time incurred in addition to overall aircraft in service and aircraft per day fees, payable on a monthly basis; and (ii) a premium amount, which is earned by maintaining a minimum aircraft utilization and exemplary operating results. We additionally receive reimbursement from our Partners for direct expenses incurred, such as qualifying maintenance activities, insurance, and property taxes. The Company refers to Partner reimbursements as "pass-through" charges, which are presented on a gross basis at the amount incurred in revenues and the corresponding operating expense in the

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consolidated statements of operations. Certain charges such as fuel and landing fees, are paid directly by our Partner Airlines. The Company refers to these charges as "Partner direct charges."

Pursuant to our fixed-fee capacity purchase agreements, Republic Airways provides passenger service on behalf of American Airlines, Delta Air Lines, and United Airlines, authorizing us to use our Partners' two-character flight designator codes (American Airlines—"AA," Delta Air Lines—"DL," and United Airlines—"UA") to identify our flights and fares directly within each Partner's reservation systems, and to outfit our interior and exterior aircraft livery with Partners' colors, logos, and service marks, allowing for joint marketing of our flights by Republic Airways and each of our Partner Airlines. Passenger tickets are issued by each of our Partners, who therefore bear the risk associated with fare competition and management of seat inventory. In addition, under our fixed-fee arrangements with American Airlines, Delta Air Lines, and United Airlines, passengers of Republic Airways are eligible for participation in our Partners' frequent flyer loyalty programs: AAdvantage<sup>®</sup>, SkyMiles<sup>®</sup>, and MileagePlus<sup>®</sup>, respectively. Support services such as reservations, ticketing, ground handling services, fuel procurement, commuter slot rights, and airport facilities are additionally provided by the Partners. Significant provisions to our CPAs, which are amended from time to time, are discussed in Note 3, *Revenue Recognition*.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

**Basis of presentation**—The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (''U.S. GAAP'') and include the accounts of Republic Airways Holdings Inc. and its wholly-owned subsidiaries. Intercompany transactions and balances have been eliminated in consolidation. Certain prior year balances have been reclassified to conform to current year presentation.

**Use of estimates**—The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the carrying amounts of assets and liabilities, reported amounts of revenues and expenses, and the related disclosures thereto as of and during the periods presented, which management reassesses and evaluates on an ongoing basis. Significant estimates include but are not limited to (i) revenue recognition, (ii) estimated useful lives and residual values of aircraft and equipment, (iii) provision for income taxes, and (iv) estimated fair value assumptions supporting the fair value of certain investments, put options, and warrants. In addition, based on the nature of our CPA relationships, the Company estimates operating costs for certain reimbursable pass-through charges and records revenues based on these estimates. Actual results could materially differ from our initial estimates.

**Cash, cash equivalents and restricted cash**—Cash and cash equivalents consist of cash on-hand and short-term, highly liquid investments with maturities of three months or less when acquired. Substantially all of our cash on-hand is held with four financial institutions.

Restricted cash includes cash in escrow to secure letters of credit issued for workers' compensation claim reserves, construction activities, student loan guarantees, and deposits with various airport authorities.

**Investments**—The Company holds investments in debt and equity securities, stock warrants and put options, and equity method investments. Investments classified as marketable securities relate primarily to U.S. Treasury securities and are recorded to marketable securities in the consolidated balance sheets. The Company designates securities as trading, available-for-sale, or held-to-maturity, as applicable, at the time of acquisition and are subsequently measured at fair value at each reporting date. All of the Company's investments in marketable securities were held for trading purposes during the years ended December 31, 2022, 2023, and 2024, and as a result, realized and unrealized gains and losses are recorded to investment (loss) income and other, net in the consolidated statements of operations, representing Level 1 fair value measurements as defined in Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 820, *Fair Value Measurement*. See Note 5, *Fair Value Measurements*.

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Non-current investments are investments with maturities greater than 12 months or investments which management of the Company intends to hold for a period greater than 12 months. Non-current investments are subject to provisions of FASB ASC 321, *Investments*, and are recorded to other non-current assets in the consolidated balance sheets at the acquisition date fair value and subsequently measured to fair value at each reporting date. Non-current investments are Level 1 fair value measurements as defined in the FASB ASC 820, *Fair Value Measurement*, fair value hierarchy. Realized and unrealized gains and losses are recorded to investment (loss) income and other, net in the consolidated statements of operations. See Note 5, *Fair Value Measurements*.

The Company is additionally a warrant holder for stock warrants issued to certain initial investors in conjunction with our strategic partnership with EVE Holdings Inc. ("EVE") for the development of electric vertical takeoff and landing ("eVTOL") aircraft, which are subject to a three-year lock-up period and are exercisable through 2027. Also related to our strategic relationship with EVE, the Company holds a put option attached to shares held in EVE equity. Stock warrants and the put option are characterized as financial instruments and are initially recorded and subsequently measured to fair value at each reporting date. Such amounts are recorded to other non-current assets in the consolidated balance sheets. Unrealized gains and losses are recorded to investment (loss) income and other, net in the consolidated statements of operations. See Note 5, *Fair Value Measurements*.

Equity method investments are initially measured at cost and subsequently adjusted for the Company's proportionate share of income or loss of the investee and recorded to other non-current assets in the consolidated balance sheets in accordance with FASB ASC 323, *Investments—Equity Method and Joint Ventures*. The Company's portion of income or loss generated by these investments are included as part of investment (loss) income and other, net in the consolidated statements of operations. The Company routinely monitors its investments for factors that may indicate a potential decline in value that is other than temporary.

The Company holds a 42.9% ownership interest in Hyannis Air Service Inc. d/b/a Cape Air and Nantucket Airlines ("Cape Air"). The investment is meant to foster a strategic workforce relationship between the participating airlines. Upon completion of flight training at LIFT Academy, certain graduates can acquire First Officer and Captain experience at Cape Air until they have met experience requirements to fly with Republic Airways. The Cape Air investment is accounted for under the equity method of accounting. During the years ended December 31, 2022, 2023, and 2024, the Company recognized a $0.1 million gain, a $3.8 million loss and a $0.1 million loss in Cape Air, respectively. See Note 5, *Fair Value Measurements*.

**Fair value of financial instruments**—The Company measures cash and cash equivalents, restricted cash, debt and equity securities, warrants, and put options at fair value on a recurring basis. Fair value, which is defined as an exit price related to the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, is measured using a combination of valuation practices as follows, as applicable:

*Market approach*—a valuation technique using prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities (or groups of assets and liabilities).

*Income approach*—valuation approach which converts future amounts to a single current (discounted) amount and is determined on the basis of the value indicated by current market expectations about those future amounts.

The Company classifies its fair value measurements based on the fair value hierarchy defined in ASC 820, *Fair Value Measurement*, which prioritizes the inputs used in determining fair value as follows:

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| | |
|:---|:---|
| Level 1 | Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. |
| Level 2 | Quoted prices for similar assets or liabilities in active markets or quoted prices for identical or similar assets or liabilities in markets that are not active. |
| Level 3 | Unobservable inputs for the asset or liability. |

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**Inventories**—Inventories consist of spare aircraft parts and supplies, which are charged to expense as consumed in the Company's operations. Aircraft inventory is stated at weighted average cost at the lower of cost or its net realizable value. Inventory valuation adjustments are recorded to maintenance and repair expense in the consolidated statements of operations. The inventory valuation adjustments for the years ended December 31, 2022, 2023, and 2024 were immaterial.

**Property and equipment**—The Company records property and equipment at its historical cost, less accumulated depreciation, which is charged to expense on a straight-line basis over the estimated useful life of the related asset. Effective January 1, 2023, management updated the residual value of training aircraft used at LIFT Academy from 25.0% to 50.0% to more closely align with the market data impacting similar vintage aircraft. The impact to depreciation and amortization expense for the year ended December 31, 2023 was not material.

Additionally, effective January 1, 2024, the Company adjusted the estimated useful life of certain aircraft, rotable spare parts, and engines from 22.0 to 26.0 years to more closely align with market data impacting our fleet usage pattern. The change in accounting estimate decreased depreciation and amortization expense by $50.5 million for the year ended December 31, 2024 on then-current fleet assets. Estimated useful lives and residual values for each asset class are as follows:

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| | | |
|:---|:---|:---|
| **Asset Class** | **Current Useful<br>Life Effective<br>January 1, 2024<br>(Years)** | **Previous Useful<br>Life Effective<br>December 31, 2023<br>and Prior (Years)** |
|  Building | 39.0 | 39.0 |
|  Regional jet aircraft | 26.0 | 22.0 |
|  Training aircraft, engines, and flight equipment | 10.0 – 26.0 | 10.0 – 22.0 |
|  Office equipment and leasehold improvements | 3.0 – 20.0 | 3.0 – 20.0 |

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| | | |
|:---|:---|:---|
| **Asset Class** | **Current Salvage<br>Value Effective<br>January 1, 2023<br>(% Historical Cost)** | **Previous Salvage<br>Value Effective<br>December 31, 2022<br>and Prior (Years)** |
|  Building |  |  |
|  Regional jet aircraft | 0.0% – 10.0% | 0.0% – 10.0% |
|  Training aircraft, engines, and flight equipment | 0.0% – 50.0% | 0.0% – 25.0% |
|  Office equipment and leasehold improvements |  |  |

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Management reviews asset groups for impairment when events and business circumstances indicate carrying values of our assets may not be recoverable. In such circumstances, management evaluates undiscounted cash flows expected to be generated by the respective asset group in comparison to its carrying value. Impairment charges, if any, are measured based on the excess carrying value over estimated fair value of the asset group. No impairment charges were recognized during the years ended December 31, 2022, 2023, and 2024.

**Assets held for sale**—The Company classifies assets as held for sale when (i) management commits to a plan to sell the asset; (ii) the asset is available for immediate sale in its present condition, subject only to terms that are usual and customary for sales of such assets; (iii) an active program to locate a buyer and other actions required to complete the plan to sell the asset has been initiated; (iv) the sale of the asset is probable, and transfer of the asset is expected to occur within one year, among other conditions. Assets designated as held for sale are recorded to assets held for sale in the consolidated balance sheets at the lower of their current carrying values or their fair market values, less costs to sell, beginning in the period in which the assets meet the criteria to be classified as held for sale.

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**Manufacturer incentives**—The Company's aircraft and original equipment manufacturers periodically provide credits and rebates toward aircraft and equipment part purchases and training activities. Incentives associated with aircraft and equipment are applied as a reduction to the aircraft and equipment purchase price upon delivery, effectively reducing depreciation expense on a straight-line basis over aircraft and engine useful lives.

**Income taxes**—The Company accounts for income taxes using the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts for existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in future years in which those temporary differences are expected to be recovered or settled. The measurement of deferred tax assets is adjusted by a valuation allowance, if necessary, to recognize future tax benefits to the extent that it is more likely than not they will be realized based on available evidence. The Company establishes liabilities for uncertain positions taken or expected to be taken in income tax returns, using a more-likely-than-not recognition threshold. The liability for uncertain tax positions is not material as of December 31, 2022, 2023, or 2024. The Company utilizes the enacted tax rate of 21.0% for federal income tax purposes. See Note 12, *Income Taxes*.

**Aircraft maintenance and repair**—Aircraft maintenance and repair charges, including line maintenance, routine overnight maintenance, auxiliary power units, and airframe and engine overhaul are accounted for using the direct expense method.

In addition, the Company enters into long-term maintenance agreements that fix certain costs related to engines and other airframe components. Risks associated with these arrangements have been transferred to our maintenance providers, and therefore, corresponding maintenance charges are recognized as power-by-the-hour contracts at a level rate per hour, subject to customary minimum utilization requirements. See Note 9, *Commitments*.

**U.S. Treasury Warrants**—As of December 31, 2024, the Company held 25,831 warrants issued to the U.S. Treasury (the "U.S. Treasury Warrants"). U.S. Treasury Warrants are liability awards, recognized at fair value to accrued liabilities in the consolidated balance sheets and subsequently adjusted to fair value at each reporting period. Measurement of U.S. Treasury Warrants represent a Level 3 fair value measurement within the fair value hierarchy as defined by ASC 820, *Fair Value Measurement*. Fair value adjustments are recorded to investment (loss) income and other, net in the consolidated statements of operations. The amounts recorded for fair value adjustments during the years ended December 31, 2022, 2023, and 2024 were not material. See Note 5, *Fair Value Measurements*.

**Mezzanine Equity**—During the year ended December 31, 2020, the Company adopted the 2020 Omnibus Incentive Plan in which restricted stock units ("RSUs") were issued to members of the Board of Directors and key members of management. RSUs are conditionally redeemable upon the occurrence of events that are not solely within control of the issuer of the securities. As such, RSUs are classified as mezzanine (temporary) equity as to convey that these shares may not have a permanent equity classification. See Note 11, *Mezzanine Equity and Share Based Compensation*.

**Recent accounting pronouncements**—The recent accounting pronouncements are listed with adoption dates for publicly traded companies, as the Company maintains an accelerated public company adoption timeline for new accounting standards and updates.

In August 2020, the FASB issued ASU 2020-06, Debt—*Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity's Own Equity (Subtopic 815-40)*, which provides clarifying guidance as to the classification of instruments potentially indexed to or settled in an entity's own equity and further aligns the accounting for such transaction to the economic substance of the transaction. ASU 2020-06 is available for adoption on either the full or modified retrospective basis. Entities may elect to adopt this standard for annual and interim periods beginning after December 15, 2021 with early adoption permitted. The Company adopted ASU 2020-06 on January 1, 2022 and the impact of the implementation to the consolidated financial statements was not material.

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In November 2021, the FASB issued ASU 2021-10, *Disclosures by Business Entities about Government Assistance*, to provide comprehensive recognition and measurement guidance for entities receiving government assistance. ASU 2021-10 is effective for all entities within their scope for financial statements issued for annual periods beginning after December 15, 2021 with early adoption permitted. The Company determined that grants received as part of the Payroll Support Programs constitute government assistance within the scope of ASU 2021-10. The Company adopted ASU 2021-10 on January 1, 2022 and the impact of the implementation to the consolidated financial statements and related disclosures thereto was not material.

In June 2022, the FASB issued ASU 2022-03 –*Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions*, to provide clarifying guidance on measuring the fair value of an equity security with prohibiting limitations on the sale of an equity security. ASU 2022-03 also introduces new disclosure requirements for these equity securities. ASU 2022-03 is effective for public entities for fiscal years beginning after December 15, 2023 with early adoption permitted. The Company adopted ASU 2022-03 on January 1, 2024, and the impact of the implementation to the consolidated financial statements was not material.

In December 2023, the FASB issued ASU 2023-09—*Improvement to Income Tax Disclosures (Topic 740)*, to provide clarifying guidance on the transparency of income tax disclosures. ASU 2023-09 is effective for public entities for annual reporting periods beginning after December 15, 2024. The Company is currently evaluating the impact the standard will have to the consolidated financial statements and related disclosures.

In November 2024, the FASB issued ASU 2024-03—*Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40)*, to provide investors with more granular detail on cost of sales, and selling, general, and administrative expenses. ASU 2024-03 is effective for public entities for fiscal years beginning after December 15, 2026, with early adoption permitted. The Company is currently evaluating the impact the standard will have to the consolidated financial statements and related disclosures.

In May 2025, the FASB issued ASU 2025-03—*Business Combinations (Topic 805) and Consolidation (Topic 810): Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity*, which revises the guidance in ASC 805 on identifying the accounting acquirer in a business combination in which the legal acquiree is a variable interest entity (VIE). ASU 2025-03 is effective for public entities for fiscal years beginning after December 15, 2026 with early adoption permitted. The Company early adopted ASU 2025-03 on January 1, 2025, and the impact of the implementation to the consolidated financial statements was not material.

3. REVENUE RECOGNITION

The Company accounts for contracts with our Partner Airlines under ASC 606, *Revenue from Contracts with Customers*, and ASC 842, *Leases*, as applicable, when each party has committed to perform under the contract, each party's rights and payment terms have been established, when the contract has commercial substance, and when collectability of amounts due under the contract is probable. Under CPAs with our Partner Airlines, the Company has committed to perform various flight services and maintenance activities classified as regional jet services. Regional jet services represent a series of distinct services accounted for as a single performance obligation satisfied over time as flights are completed. Substantially all of the Company's revenues are generated from regional jet services.

Revenues associated with regional jet services are generally derived from (i) a fixed fee per departure, flight hour, and/or block hour of time incurred and a fixed rate for available-to-schedule aircraft, payable on a monthly basis; and (ii) a premium amount which is earned monthly and quarterly by maintaining minimum aircraft utilization levels and exemplary operating results. To the extent that minimum targets are not achieved, the Company could be subject to financial penalties. These fixed-fee rates are contractually subject to periodic economic adjustment. The Company additionally receives reimbursement from our Partners for direct expenses incurred such as qualifying maintenance activities, property taxes, and miscellaneous operating expenses. The Company refers to Partner reimbursements as "pass-through charges." Certain charges such as fuel and landing fees are generally paid directly by our Partner

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Airlines, although the charges were incurred by the Company in our ongoing operations. The Company refers to these charges as "Partner direct charges." Pass-through charges are primarily recorded to revenues and the corresponding operating expense on a gross basis. Pass-through charges recorded on a net basis are not material.

Amounts recognized as regional jet services revenues are measured at the contractual amount the Company expects it will be entitled to in exchange for the promised services. The Company allocates the transaction price as flights are completed with variable consideration that relates specifically to the Company's efforts in delivering each flight recognized in the period in which the individual flight is completed and measured on a monthly basis. The Company records an estimate for incentive revenue based on our expected performance at the end of each period. These estimates are derived under accounting guidance related to variable consideration constraints and based on amounts expected to be collected. The Company has concluded that allocating the variability directly to individual flights results in an overall allocation meeting the objectives in ASC 606. This results in a pattern of revenue recognition that generally follows the variable amounts billed from the Company to Partner Airlines.

A portion of the Company's compensation under its CPAs is designed to reimburse the Company for certain aircraft ownership costs. The Company has concluded that a component of its revenue under the CPAs is deemed to be embedded lease revenue and as such, agreements identify the right-of-use of a specific type and number of aircraft over the term of the CPA. Embedded lease revenue associated with the Company's CPAs is accounted for as an operating lease under ASC 842, *Leases*.

*American Airlines* 

During the year ended December 31, 2022, and in conjunction with its prior and ongoing arrangement for the redeployment of 44 E170 aircraft to American Airlines operations, the Company and American Airlines reached customary commercial leasing terms for the operation of two E170 aircraft through 2030, with further E170 fleet commitments of 18 and 11 during the years ended December 31, 2023 and 2024, respectively.

During the year ended December 31, 2023, the Company and American Airlines reached agreement for a four-year extension of 76 E175 aircraft committed to CPA, which became effective on January 1, 2024. In addition, during the year ended December 31, 2024, the Company sold six E175 aircraft to American Airlines for proceeds of $49.3 million, net of debt repayment and fees.

Key provisions of our CPAs, as amended, are summarized as follows:

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| | |
|:---|:---|
| **American Airlines** | **American Airlines** |
| **Committed aircraft—December 31, 2024** | 115 |
| **Aircraft type** | E170/E175 |
| **Seating configuration** | 65 – 76 seats |
| **Scheduled expiration <sup>(1)</sup>** | December 2028 – January 2033 |
| **Significant pass-through / Partner direct charges** | **Pass-through**—insurance, property taxes, certain cabin refurbishments, and miscellaneous station expenses<br>**Partner direct charges**—aircraft fuel, landing fees, ground handling operations, and on-board catering |

---

<sup>(1)</sup> Unless otherwise extended or amended, the CPA expires once all applicable aircraft are withdrawn from the agreement. The American Airlines CPA provides for extension at the option of American Airlines and is subject to early termination provisions for cause after satisfying the applicable notice period and failure to cure. Additionally, American Airlines has the right to terminate the American Airlines CPA and require that the Company immediately cease operations of American Eagle flights if, among other things, the Company fails to maintain certain controllable completion rates and controllable on-time departure targets. Following the occurrence of a labor strike for six consecutive days, American has the right to purchase certain E175 aircraft from us within 60 days of providing written notice to the Company regardless of whether such labor strike is later resolved. 

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*Delta Air Lines* 

Key provisions of our CPAs, as amended, are summarized as follows:

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| | |
|:---|:---|
| **Delta Air Lines** | **Delta Air Lines** |
| **Committed aircraft—December 31, 2024** | 58 |
| **Aircraft type** | E170/E175 |
| **Seating configuration** | 69 – 76 seats |
| **Scheduled expiration <sup>(1)</sup>** | February 2025 – April 2030 |
| **Significant pass-through / Partner direct charges** | **Pass-through**—insurance, property taxes, certain planned major maintenance activities, and miscellaneous station expenses<br>**Partner direct charges**—aircraft fuel, landing fees, on-board catering, and ownership of certain aircraft |

---

<sup>(1)</sup> The Company and Delta Air Lines may terminate the Delta CPA for material breach of contract and significant declines in operating performance, among others, after satisfying applicable notice and cure periods.

*United Airlines* 

The Company entered into a CPA with United Airlines during the year ended December 31, 2021, for the replacement of 38 E170 aircraft with new E175 aircraft for scheduled passenger service over a 12-year term, including certain customary right-of-use aircraft leasing terms. The Company placed 23 aircraft into service during the years ended December 31, 2022, 2023, and 2024. Additionally, the Company further repositioned 23 E170 aircraft from the United Airlines CPA based on scheduled United Airlines CPA expiries during the years then ended. The remaining aircraft deliveries are expected throughout the year ended December 31, 2025.

Key provisions of our CPAs, as amended, are summarized as follows:

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| | |
|:---|:---|
| **United Airlines** | **United Airlines** |
| **Committed aircraft—December 31, 2024** | 66 |
| **Aircraft type** | E170/E175 |
| **Seating configuration** | 70 – 76 seats |
| **Scheduled expiration <sup>(1)(2)</sup>** | February 2025 – October 2037 |
| **Significant pass-through / Partner direct charges <sup>(3)</sup>** | **Pass-through**—insurance, property taxes, certain planned major maintenance activities, and miscellaneous station expenses<br>**Partner direct charges**—aircraft fuel, landing fees, on-board catering, and ownership of certain aircraft |

---

<sup>(1)</sup> United Airlines has a call option to assume our ownership or leasehold interests in certain aircraft if (i) the Company wrongfully terminates the capacity purchase relationship, (ii) if United Airlines terminates the agreements for the Company's breach of contract, or (iii) at the election of United Airlines, subject to certain notice requirements and age and condition of call option aircraft. 

<sup>(2)</sup> The United Airlines CPA may be terminated by United upon providing 30 days' written notice if, among other reasons, the Company fails to attain certain operating performance targets for a specified period, subject to a right to cure. The United CPA may be terminated by United immediately upon written notice (without any prior notice), following the occurrence of a labor strike for ten or more consecutive days. 

<sup>(3)</sup> United Airlines has the right to assume our responsibility to purchase any of the pass-through products and services.

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Revenues derived from our CPAs are disaggregated by Partner Airline for the years ended December 31, 2022, 2023, and 2024 as follows:

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| | | | |
|:---|:---|:---|:---|
| **(in millions)** | **2022** | **2023** | **2024** |
|  American Airlines | $630.3 | $659.0 | $627.4 |
|  Delta Air Lines | 304.5 | 334.1 | 378.2 |
|  United Airlines | 386.0 | 424.2 | 448.9 |
|  Other | 6.4 | 11.8 | 19.5 |
|  Total revenues | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1327.2 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1429.1 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1474.0 |

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Revenues derived from our CPAs by type of revenue for the years ended December 31, 2022, 2023, and 2024 are disaggregated as follows:

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| | | | |
|:---|:---|:---|:---|
| **(in millions)** | **2022** | **2023** | **2024** |
|  Regional jet service revenue | $1011.7 | $1111.6 | $1165.9 |
|  Lease revenue <sup>(1)</sup> | 309.1 | 305.7 | 288.6 |
|  Other revenue | 6.4 | 11.8 | 19.5 |
|  Total revenues | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1327.2 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1429.1 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1474.0 |

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<sup>(1)</sup> Certain of our CPAs include embedded leases for the right-of-use of our regional jet aircraft. The corresponding rental income is classified herein.

LIFT Academy recorded tuition revenue of $5.6 million, $11.6 million, and $19.3 million during the years ended December 31, 2022, 2023, and 2024, respectively. Tuition from students is recorded to accrued liabilities in the consolidated balance sheets and is recognized on a systematic basis as students progress throughout their respective training programs.

Amounts recognized as revenues in the consolidated statements of operations are subject to certain estimates, which could materially impact the timing and consideration determined under the contract. Such estimates include (i) expected contract terms from material modifications to our fixed-fee capacity purchase agreements and (ii) the extent to which disputes in contract interpretation arise.

**Receivables and contract assets—**Receivables represent a right to consideration for promised services which have been transferred to our customers. The Company records provisions for credit losses using an expected credit losses model on the basis of specific identification and historical collection experience. Credit losses for the years ended December 31, 2022, 2023, and 2024 were not material. Contract assets are generated from the partial satisfaction of certain performance obligations, generally related to the delivery of aircraft maintenance services, under customer contracts whereby the Company has the right to consideration for services transferred or provided to its customers. Contract assets of $24.3 million and $34.4 million are recorded to other non-current assets—related parties in the consolidated balance sheets as of December 31, 2023 and 2024, which have been appropriately reduced for the applicable financing component.

**Contract liabilities—**Contract liabilities consist of deferred revenues for which the Company has received customer payment for undelivered services. In addition, the Company periodically carries out capital projects on behalf of its Partner Airlines, generally pertaining to aircraft fleet and livery improvements. Revenues of this nature are recognized over time, depicting the pattern of transfer of control of services, resulting in ratable recognition of revenues over the remaining term of the CPA.

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Current and non-current deferred revenues are recorded to accrued liabilities—related parties and other non-current liabilities—related parties, respectively, in the consolidated balance sheets. The Company recognized $6.7 million, $10.8 million, and $13.7 million of the deferred revenue to revenues in the consolidated statements of operations during the years ended December 31, 2022, 2023, and 2024, respectively, which was previously included in contract liabilities at December 31, 2021, 2022, and 2023, respectively. Current contract liabilities—related parties were $12.5 million and $22.7 million as of December 31, 2023 and 2024, respectively. Non-current contract liabilities—related parties were $7.4 million and $41.8 million as of December 31, 2023 and 2024.

4. LEASES

The Company routinely enters into operating and finance leases as a financing method for aircraft, spare engines, flight training equipment, and operating facilities. The Company records a lease asset and corresponding liability for leases with terms exceeding 12 months. Such assets and liabilities are measured at the present value of remaining lease payments at the commencement of the lease or consummation of a lease modification.

Lease terms give effect to early termination and renewal options when it is reasonably certain that such options will be exercised. The Company determines present value, discounting payment streams at the interest rate implicit in the lease, when available, taking into consideration economic escalation provisions, when applicable. When this information is unknown, the Company estimates its incremental borrowing rate at the related lease commencement date, which is derived from prevailing market interest rates, recent debt acquisitions specific to the Company, or other debt instruments having similar characteristics at lease commencement. With the exception of our CPAs and operating facilities, the Company does not separate lease and non-lease contractual components. Provisions for residual value guarantees are not material.

**Aircraft and engines—**As of December 31, 2024, the Company is party to non-cancelable operating and financing lease agreements related to 25 aircraft and nine spare engines with varying terms extending through 2031. Of our 25 leased aircraft, 12 are leased directly from our Partner Airlines ("Partner-Controlled Aircraft"), constituting related party lease obligations. See Note 14, *Related Party Transactions*. Lease terms generally coincide with the related CPA expiry.

During the year ended December 31, 2022, the Company entered into amendments to five existing aircraft operating leases. Upon reassessment of the amended lease terms and lease classification at the related contract modification dates, such arrangements are classified as financing leases and were reclassified as such concurrently with the consummation of these transactions. As a result, the Company reclassified $5.4 million from operating lease right-of-use assets to property and equipment, net, in the consolidated balance sheets during the year ended December 31, 2022 and $7.4 million from the current portion of operating lease liabilities to the current portion of long-term debt in the consolidated balance sheets. Additionally, the Company increased property and equipment, net by $39.5 million along with the current and long-term debt accounts by $41.5 million in the consolidated balance sheets as a result of the amendments and lease extension.

During the year ended December 31, 2023, the Company exercised a purchase option on eight existing spare engine operating leases. Concurrently with this election, the Company reassessed the lease classification on each respective lease thereby classifying the arrangements as finance leases. As a result, the Company reclassified $1.1 million from operating lease right-of-use assets to property and equipment, net, and $1.0 million from the current position of operating lease liabilities to the current portion of long-term-debt in the consolidated balance sheets upon exercise of the option. Additionally, the Company increased property and equipment, net by $6.9 million along with the current and long-term debt by $5.2 million in the consolidated balance sheets as a result of this election.

**Operating facilities—**The Company's leased operating facilities include airport terminal space, hangars and maintenance facilities, office space, and training facilities with initial terms extending from 30 days to nine years,

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classified as operating leases and short-term leases. Airport terminal space, which includes crew rooms and line maintenance facilities, is generally leased directly from a governmental agency or authority. Rental rates are dependent on actual airport operating costs and require adjustment at least annually. As a result of the variable nature of rent, airport terminal space leases are not recorded to the operating lease right-of-use asset and operating lease liabilities.

**Flight training equipment—**The Company maintains a long-term supply agreement for fulfillment of full motion flight simulation equipment at a guaranteed minimum level through 2033 with additional capacity availability accounted for as operating leases. Pursuant to this arrangement, the Company leases training equipment, embedded with related maintenance service agreements. The Company has elected the practical expedient permissible under ASC 842, *Leases*, and as a result, the non-lease service component has not been separated and removed from the operating lease right-of-use assets and related operating lease liabilities.

The Company entered into an operating lease for two additional flight simulators during the year ended December 31, 2023 that extend over a 10-year term. Obligations related to these assets increased operating lease right-of-use assets and operating lease liabilities by $31.9 million.

Components of lease costs for the years ended December 31, 2022, 2023 and 2024 are as follows:

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| | | | |
|:---|:---|:---|:---|
| **(in millions)** | **2022** | **2023** | **2024** |
|  Operating lease cost | $28.0 | $29.3 | $24.5 |
|  Finance lease cost |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of leased assets | 11.4 | 12.6 | 8.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on lease liabilities | 4.6 | 4.7 | 4.4 |
|  Variable and short-term lease cost | 4.3 | 2.8 | 2.8 |
|  Total lease cost | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;48.3 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;49.4 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;40.0 |

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Operating lease cost, including variable and short-term lease cost, is recorded to aircraft and engine rent and other expense in the consolidated statements of operations. Finance lease cost is recorded to depreciation and amortization expense and interest expense in the consolidated statements of operations.

Supplemental balance sheet information related to leased assets and liabilities are as follows as of December 31:

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| | | |
|:---|:---|:---|
| **(in millions)** | **2023** | **2024** |
|  Assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease right-of-use assets | $132.5 | $122.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property and equipment, net | 78.7 | 70.4 |
|  Total lease assets | $211.2 | $193.3 |
|  Liabilities: |  |  |
|  Current |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current operating lease liabilities | $15.7 | $13.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current finance lease liabilities | 10.9 | 7.2 |
|  Non-current |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-current operating lease liabilities | 123.9 | 117.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-current finance lease liabilities | 66.7 | 59.5 |
|  Total lease liabilities | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;217.2 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;197.8 |

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**Operating leases**—Lease obligations expected to be paid within 12 months represent current maturities and are classified within the current portion of operating lease liabilities to the consolidated balance sheets. Lease obligations with expected repayments extending beyond 12 months are recorded to operating lease liabilities— less current portion to the consolidated balance sheets in the accompanying consolidated financial statements.

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**Finance leases**—The Company records finance lease assets, current liability, and non-current liability to property and equipment, net, current portion of long-term debt and finance leases, and long-term debt and finance leases—less current portion, respectively, in the consolidated balance sheets. Amortization of the finance lease asset is recorded to depreciation and amortization expense. The interest component of the lease payment is recorded to interest expense in the consolidated statements of operations.

Additional lease terms are as follows for the years ended December 31, 2023 and 2024:

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| | | |
|:---|:---|:---|
|  | **2023** | **2024** |
|  Weighted average remaining lease term (in years): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating leases | 8.7 | 8.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance leases | 6.8 | 6.2 |
|  Weighted average discount rate: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating leases | 5.6% | 5.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance leases | 6.2 | 6.0 |

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Maturities of lease liabilities are as follows as of December 31, 2024 and thereafter:

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| | | | |
|:---|:---|:---|:---|
| **(in millions)** | **Operating Leases** | **Finance Leases** | **Total** |
| 2025 | $20.7 | $11.0 | $31.7 |
| 2026 | 20.7 | 9.5 | 30.2 |
| 2027 | 20.5 | 9.5 | 30.0 |
| 2028 | 19.8 | 9.5 | 29.3 |
| 2029 | 18.6 | 9.5 | 28.1 |
|  Thereafter | 64.6 | 34.6 | 99.2 |
|  Total minimum lease payments | 164.9 | 83.6 | 248.5 |
|  Less imputed interest component | (33.8) | (16.9) | (50.7) |
|  Total lease obligations | 131.1 | 66.7 | 197.8 |
|  Less current obligations | (13.5) | (7.2) | (20.7) |
|  Long-term lease obligations | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;117.6 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;59.5 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;177.1 |

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Supplemental cash flow and other information related to leases are as follows:

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| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| <br>**(in millions)** | **2022** | **2023** | **2024** |
|  Cash paid or amounts included in the measurement of lease liabilities: |  |  |  |
|  Operating cash flows used in operating leases | $(26.0) | $(28.0) | $(23.5) |
|  Operating cash flows used in financing leases | (4.6) | (4.7) | (4.4) |
|  Financing cash flows used in financing leases | (8.0) | (14.8) | (15.3) |
|  Non-cash transactions: |  |  |  |
|  Operating leases converted to finance leases | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34.1 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.8 |  |
|  ROU assets acquired in exchange for operating lease obligations | 6.0 | 32.9 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.7 |
|  ROU assets acquired in exchange for financing lease obligations |  | 0.4 |  |

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**Aircraft leasing arrangements**—The Company's CPAs include provisions for the right-to-use of the Company's aircraft in carrying out regional jet services. Such provisions constitute embedded leases for which the Company receives reimbursement for aircraft ownership costs, as our Partner Airlines obtain substantially all

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of the economic benefit from our aircraft committed to our Partners. Aircraft lease terms are commensurate with CPA terms discussed at Note 3, *Revenue Recognition*, to the consolidated financial statements. The Company mitigates the risk from residual and undeployed leased assets in the event of default of one of our Partners by actively monitoring aircraft and engine financing terms compared to market terms in order to effectively sell or redeploy aircraft to the extent they become unused or underutilized, which additionally decreases with the extent to which the Company operates Partner-Controlled Aircraft.

Rental revenue from operating leases for each of the next five years and total of the remaining years as of December 31, 2024 are as follows:

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| | |
|:---|:---|
| **(in millions)** | **Revenue Recognition** |
| 2025 | $329.1 |
| 2026 | 284.1 |
| 2027 | 277.5 |
| 2028 | 248.2 |
| 2029 | 222.6 |
|  Thereafter | 597.2 |
|  Total | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1958.7 |

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5. FAIR VALUE MEASUREMENTS

The Company holds certain financial instruments, which require measurement to fair value in accordance with ASC 820, *Fair Value Measurement*. The Company measures the following financial instruments on a recurring basis:

**Cash, cash equivalents, and restricted cash**—The carrying amounts of cash, cash equivalents, and restricted cash reported in the consolidated balance sheets are classified as a Level 1 fair value measurement in the ASC 820 hierarchy. Amounts presented in the consolidated balance sheets approximate the respective fair values using a market valuation technique.

**Marketable securities**—Investments in marketable securities primarily include U.S. Treasury Securities and are recorded at fair value. Valuation of securities is based on reference to the quoted market price on national exchanges, representing Level 1 fair value measurements as defined in ASC 820, *Fair Value Measurement*. Unrealized and realized gains and losses are recorded to investment (loss) income and other, net, in the consolidated statements of operations. Amounts recorded for unrealized and realized gains for the years ended December 31, 2022, 2023, and 2024 were $0.5 million, $5.5 million, and $10.6 million, respectively.

**U.S. Treasury Warrants**—U.S. Treasury Warrants are recognized at fair value and adjusted at each reporting date thereafter using the Black-Scholes option pricing model using an implied volatility calculated by the comparison of stock prices of select airlines of similar size and/or an income approach to determine fair value of the equity of the Company representing a Level 3 fair value measurement as defined in the ASC 820, *Fair Value Measurement* fair value hierarchy. The increase or decrease in the fair value measurement of the implied volatility may result in a higher or lower effect on the fair value measurement of the U.S. Treasury Warrants. The amounts recorded for fair value adjustments during the years ended December 31, 2022, 2023, and 2024 were not material.

**EVE Investment**—During the year ended December 31, 2022, the Company acquired 1,000,000 shares of Class A Common Stock in EVE for which Embraer S.A., a related party, through its wholly-owned subsidiary Embraer Aircraft Holdings, Inc., possesses beneficial ownership of EVE. Shares were acquired for a purchase price of $10.00 per share ("EVE Equities") in furtherance of a commercial partnership among certain initial investors for the development of eVTOL aircraft. Additionally, as an inducement to enter into the partnership, the

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Company obtained (i) warrants for the acquisition of an additional 1,500,000 shares of Class A Common Stock in EVE at an exercise price of $0.01 per share, subject to a three year lock-up period, exercisable through 2027 (the "EVE Warrants") and (ii) a put option for reacquisition of EVE Class A Common Stock by EVE or a subsidiary of EVE for the aggregate put price of $10.0 million, exercisable on demand through 2032 (the "Put Option") (collectively with the EVE Equities, EVE Warrants, and the Put Option, the "EVE Investment"). The Put Option is redeemable in future aircraft parts and maintenance services.

The EVE Equities are subject to provisions of FASB ASC 321, *Investments.* The investment was initially measured at fair value and was recorded to other non-current assets in the consolidated balance sheets. EVE Equities represent a Level 1 investment within the FASB ASC 820, *Fair Value Measurement*, fair value hierarchy, as the inputs for shares of EVE common stock are observable and actively exchange-traded. As of December 31, 2023 and 2024, the Company recorded $7.3 million and $5.4 million attributable to the fair value of EVE Equities to other non-current assets in the consolidated balance sheets. The Company recorded an unrealized gains (losses) of ($2.8) million, $0.1 million, and ($1.9) million related to the EVE Equities to investment (loss) income and other, net, in the consolidated statements of operations during the years ended December 31, 2022, 2023, and 2024, respectively.

EVE Warrants and the Put Option issued in conjunction with the EVE Investment are characterized as financial instruments and manufacturer incentives, respectively, for redemption toward future eVTOL aircraft acquisitions, aircraft parts, and/or maintenance services for our regional jet aircraft. Financial instruments related to the EVE Warrants and Put Option are recorded to other non-current assets at the estimated fair value at issuance and subsequently adjusted to fair value at each reporting date. Manufacturer incentives are recorded to other non-current liabilities in the consolidated balance sheets. Incentives utilized for future aircraft and equipment purchases are applied as a reduction to the aircraft basis upon delivery.

The Company recorded $17.5 million in manufacturer incentives to other non-current liabilities related to the EVE Warrants and Put Option, which was fixed at the consummation of the Eve Investment during the year ended December 31, 2022. During the years ended December 31, 2022, 2023, and 2024, the Company recorded unrealized gain (losses) of ($4.2) million, $0.2 million, and ($2.8) million related to fluctuations in fair value of the EVE Warrants, and unrealized gain (losses) of $2.5 million, ($0.1) million, and $0.2 million related to fluctuations in fair value of the Put Option, respectively. As the EVE Warrants and Put Option are adjusted to fair value at each reporting period in accordance with FASB ASC 815, *Derivatives and Hedging,* and the related manufacturing incentive is fixed at issuance date in accordance with FASB ASC 705-20, *Cost of Sales and Services – Accounting for Consideration*, the Company will continue to record unrealized gains or losses associated with the change in fair value of the EVE Warrants and Put Option in earnings despite no economic loss to the Company based on the terms of the EVE agreements and economic substance of the aggregate EVE Investment.

The Company estimates the fair value of EVE Warrants and the Put Option using a Black-Scholes option pricing model. This market-based approach relies on the use of significant unobservable inputs, and therefore, such amounts are classified as Level 3 fair value measurements within the ASC 820, *Fair Value Measurement,* fair value hierarchy. The significant unobservable input used in the Black-Scholes option pricing model in the valuation of the EVE Investments is the implied volatility using the comparison of stock prices of comparative eVTOL companies of similar size.

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The Company measures the following assets and liabilities at fair value on a recurring basis:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **As of December 31, 2023** | **As of December 31, 2023** | **As of December 31, 2023** | **As of December 31, 2023** |
| <br>**(in millions)** | **Recorded<br>Balance** | **Level 1** | **Level 2** | **Level 3** |
|  Cash, cash equivalents, and restricted cash | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;113.5 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;113.5 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
|  Marketable securities | 249.8 | 249.8 |  |  |
|  EVE Investment | 23.2 | 7.3 |  | 15.9 |
|  U.S. Treasury Warrants | (7.0) |  |  | (7.0) |
|  Total | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;379.5 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;370.6 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.9 |

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| | | | | |
|:---|:---|:---|:---|:---|
| | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
| <br>**(in millions)** | **Recorded<br>Balance** | **Level 1** | **Level 2** | **Level 3** |
|  Cash, cash equivalents, and restricted cash | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;131.9 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;131.9 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
|  Marketable securities | 191.5 | 191.5 |  |  |
|  EVE Investment | 18.7 | 5.4 |  | 13.3 |
|  U.S. Treasury Warrants | (6.8) |  |  | (6.8) |
|  Total | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;335.3 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;328.8 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5 |

---

The following table presents the implied volatility, which is the unobservable input, used in the fair valuation of Level 3 investments for the years ended December 31, 2023 and 2024:

---

| | | |
|:---|:---|:---|
|  | **2023** | **2024** |
|  EVE Investment | 70.0% | 72.1% |
|  U.S. Treasury Warrants | 76.8% | 79.2% |

---

The increase or decrease in the fair value measurement of the implied volatility may result in a higher or lower effect on the fair value measurement of the Company's EVE Investments. The amount recorded to other non-current assets as of December 31, 2023 and 2024 for aggregate EVE Warrants and the Put Option was $15.9 million and $13.3 million, respectively.

The reconciliation of Level 3 fair value measurements during the year ended December 31, 2023 and 2024 are as follows:

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| | |
|:---|:---|
| **(in millions)** | |
|  Balance at December 31, 2022 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.0 |
|  Change in fair value of Eve Investment (unrealized) | 0.1 |
|  Change in fair value of U.S. Treasury Warrants (unrealized) | (1.2) |
|  Balance at December 31, 2023 | $8.9 |
|  Change in fair value of Eve Investment (unrealized) | (2.6) |
|  Change in fair value of U.S. Treasury Warrants (unrealized) | 0.2 |
|  Balance at December 31, 2024 | $6.5 |

---

During the year ended December 31, 2023, the Company remeasured the value of its investment in Cape Air on a non-recurring basis for declines in value which may be other than temporary. The Company valued the investment in Cape Air under the discounted cash flow method. Therefore, it is considered a Level 3 fair value measurement under ASC 820, *Fair Value Measurement*. In response, the Company recorded a $3.6 million reduction in value to investment (loss) income and other, net in the consolidated statement of operations which will be subsequently amortized over the useful life of Cape Air aircraft in accordance with ASC 323, *Investments—Equity Method Investments & Joint Ventures.* 

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Market risk associated with our fixed-rate debt primarily relates to the potential change in fair value and impact to future earnings, respectively, from a change in prevailing market interest rates. Within the fair value hierarchy, the fair value of debt is based predominantly on a market approach, looking to recently completed market transactions and estimates based on interest rates, maturities, credit risk, and underlying collateral. These inputs are classified as Level 3 fair value measurements within the fair value hierarchy. The carrying value of debt, including current maturities, exceeds its fair value by $13.1 million, and $11.5 million as of December 31, 2023, and 2024, respectively.

The Company recorded no other non-recurring fair value measurements for the years ended December 31, 2022, 2023 and 2024.

6. PROPERTY AND EQUIPMENT

Property and equipment consisted of the following as of December 31, 2023 and 2024:

---

| | | |
|:---|:---|:---|
| **(in millions)** | **2023** | **2024** |
|  Aircraft | $2793.3 | $2898.7 |
|  Engines and flight equipment | 248.1 | 243.4 |
|  Land and buildings | 129.2 | 158.9 |
|  Office equipment and leasehold improvements | 66.2 | 67.2 |
|  Total property and equipment | 3236.8 | 3368.2 |
|  Less accumulated depreciation and amortization | (1186.2) | (1258.7) |
|  Property and equipment, net | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2050.6 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2109.5 |

---

The Company recorded depreciation and amortization expense of $149.7 million, $159.4 million, and $117.0 million for the years ended December 31, 2022, 2023, and 2024, respectively.

7. ACCRUED LIABILITIES

Accrued liabilities that are not with a related party consisted of the following as of December 31, 2023, and 2024:

---

| | | |
|:---|:---|:---|
| **(in millions)** | **2023** | **2024** |
|  Accrued wages, benefits, and related taxes | $74.5 | $82.4 |
|  Accrued maintenance | 47.8 | 39.9 |
|  Deferred revenue and contract liabilities | 17.8 | 16.8 |
|  Other | 14.7 | 29.8 |
|  Total | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;154.8 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;168.9 |

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8. DEBT

As of December 31, 2024, total indebtedness, net of debt discounts, premiums and issuance costs, consisted of (i) secured financing arrangements for security interests in aircraft and spare engines ("Aircraft and Engine Debt"), pass-through trust certificates secured by aircraft spare parts ("Equipment Debt"), and corporate real estate properties ("Real Estate Debt"); (ii) U.S. Treasury loan programs ("PSP Loans"); and (iii) finance leases. Amounts expected to be repaid within 12 months are classified within the current portion of long-term debt in the consolidated balance sheets. Debt balances at December 31, 2023 and 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **(in millions)** | **Maturity Date(s)** | **Interest Rates <sup>(3)</sup>** | **2023** | **2024** |
|  Secured financing facilities <sup>(1)</sup> |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Aircraft and Engine Debt <sup>(2)</sup> | 2025 – 2036 | 1.9% –10.2% | $825.4 | $747.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Real Estate Debt <sup>(2)</sup> | 2025 | 8.6% | 51.7 | 50.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equipment Debt | 2028 | 8.0% | 115.1 | 109.2 |
|  PSP Loans | 2030 – 2031 | 1.0% | 49.2 | 49.2 |
|  Finance leases (See Note 4) |  |  | 77.6 | 66.7 |
|  **Total debt and finance leases** |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1119 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1023.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: unamortized debt discounts, premiums, and debt issuance costs |  |  | (14.7) | (11.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less: current portion of long-term debt and finance leases |  |  | (238.7) | (259.6) |
|  **Long-term debt and finance leases—less current portion** |  |  | $865.6 | $752.2 |

---

<sup>(1)</sup> The net book value of the underlying security interests is $1,816.5 million and $1,791.8 million as of December 31, 2023, and 2024 consisting of inventories and property and equipment, net. 

<sup>(2)</sup> Financing arrangements include fixed and variable rate debt. All of our variable rate instruments are measured at an equivalent to the Secured Overnight Financing Rate ("SOFR"), plus a specified margin.

<sup>(3)</sup> As of December 31, 2024.

The weighted average interest rates on short term borrowings outstanding, excluding finance leases, as of December 31, 2023 and 2024 were 4.43% and 5.55%, respectively.

**Aircraft and Engine Debt**—Financing arrangements are in exchange for security interest in first liens on the underlying aircraft and certain spare engines. Repayment obligations may be accelerated at the Company's option, subject to customary early termination provisions.

During the year ended December 31, 2023, the Company obtained aggregate borrowings of $306.6 million consisting of new aircraft deliveries of $251.9 million secured by 13 factory new E175 aircraft and $54.7 million secured by a complement of spare engines. Terms of new Aircraft and Engine Debt range from five to 12 years. Additionally, during the year ended December 31, 2023, the Company recognized early settlements of $101.0 million in secured aircraft loans, plus accrued and unpaid interest expense related to the sale of the underlying aircraft. This collectively resulted in a $5.1 million loss on early extinguishments of debt recorded to investment (loss) income and other, net, in the consolidated statements of operations.

During the year ended December 31, 2024, the Company obtained aggregate borrowings of $177.3 million consisting of new aircraft debt of $126.2 million secured by six factory new E175 aircraft and $51.1 million collateralized or re-collateralized by a complement of regional and training aircraft with terms ranging from four to 12 years. Additionally, during the year ended December 31, 2024, the Company made early debt extinguishments of $37.4 million in secured aircraft loans, plus accrued and unpaid interest expense related to the sale and disposition of the underlying aircraft.

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**Real Estate Debt**—During the year ended December 31, 2023, the Company entered into a loan agreement for aggregate borrowings of $52.0 million which is collateralized by the Company's aviation campus. Borrowings under the loan agreement bear interest at SOFR plus a stated margin with scheduled maturities through 2025 with an option to extend up to three years. Repayment obligations may be accelerated at the Company's option, subject to customary early termination provisions.

**Equipment Debt**—During the year ended December 31, 2023, the Company formed a pass-through trust for the sale of Class A Certificates ("Enhanced Equipment Trust Certificates" or "EETC"). The trust, in turn, gave effect to the sale of Series A Equipment Notes secured by certain of the Company's spare aircraft equipment, generating aggregate proceeds of $118.0 million for general corporate purposes. Repayment of the Series A Equipment Notes occurs on a specified maturity schedule through 2028 with regularly scheduled interest payments at 8.0% per annum. Repayment obligations may be accelerated at the Company's option, subject to customary early termination provisions.

The Company evaluated whether the pass-through trust formed for administration of Equipment Debt is a variable interest entity ("VIE") requiring potential consolidation within our consolidated financial statements. Although the pass-through trust constitutes a VIE, the Company is not the primary beneficiary of the trust and therefore shall not be presented within these consolidated financial statements.

The Series A Equipment Notes include customary financial covenants pursuant to which the Company must maintain a certain loan-to-value ratio of the regularly appraised value of underlying spare parts.

**PSP Loans**—The PSP Loans are unsecured borrowings with scheduled maturities of the total outstanding principal obligation at the ten-year anniversary of each initial draw ("PSP Loan Term"). PSP Loans bear interest at 1.0% per annum for each of the first five years of the term, increasing thereafter to an indexed rate plus 2.0% for the remaining five years, payable on a quarterly basis over the PSP Loan Term. Voluntary pre-payment is permissible at any time without penalty.

Our credit agreements require that we comply with customary affirmative and negative covenants. Management believes the Company is in compliance with all of its financial covenants as of December 31, 2023 and 2024.

As of December 31, 2023 and 2024, the Company had 100% cash collateralized letter of credit facilities of $20.0 million and $21.4 million, respectively. Amounts are recorded in restricted cash in the consolidated balance sheets.

Aggregate principal maturities as of December 31, excluding finance leases, are as follows (in millions):

---

| | |
|:---|:---|
| **Year** | **Total** |
| 2025 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;252.9 |
| 2026 | 121.0 |
| 2027 | 93.5 |
| 2028 | 145.5 |
| 2029 | 49.0 |
|  Thereafter | 283.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $945.1 |

---

Substantially all debt obligations held by subsidiaries of the Company are guaranteed for timely payment and performance by the Parent.

9. COMMITMENTS

The Company's long-term commitments primarily include lease obligations (see Note 4, *Leases*), long-term maintenance agreements, and purchase commitments, among others.

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**Long-term maintenance**—The Company has long-term agreements relating to our maintenance costs associated with engines, auxiliary power units, avionics, and other flight equipment. The following agreements comprise the Company's long-term maintenance agreements for various airframe and engine components as of December 31, 2024:

---

| | |
|:---|:---|
| **Maintenance Agreements** | **Contract Termination** |
|  Auxiliary power units | December 2034 |
|  Avionics | December 2029 |
|  Engines | January 2036 |
|  Wheels and brakes | September 2030 |

---

Certain fixed agreements include a guaranteed minimum payment amount based on flight hours, departures, or other measures. Aggregate payments under long-term maintenance agreements were $149.1 million, $150.8 million, and $149.4 million for the years ended December 31, 2022, 2023 and 2024, respectively.

**Purchase commitments**—From time to time, the Company enters into purchase commitments for future aircraft and engine deliveries. The Company regularly makes pre-delivery deposit payments ("PDPs") to support aircraft and engines on order. PDPs are retained and applied against the historical cost of the corresponding aircraft or engine at the time of its acquisition or expensed when deposit amounts are no longer expected to be returned from the manufacturer. Interest costs associated with PDPs are capitalized as a portion of the overall historical cost of the related aircraft or engine and are depreciated over the estimated useful life of the asset. During the years ended December 31, 2023 and 2024 the Company recorded $1.1 million, and $1.6 million, respectively, in capitalized interest costs to property and equipment, net, in the consolidated balance sheets.

The Company has a commitment with Embraer S.A. to purchase 75 E175 or second generation E175 aircraft, 29 of which were delivered and five of which were cancelled as of December 31, 2024. The remaining 41 aircraft are expected to be delivered between 2025 – 2027.

Additionally, during the year ended December 31, 2024, the Company executed an amendment to the purchase agreement for training aircraft to extend the delivery schedules of 12 committed training aircraft.

During the year ended December 31, 2023, the Company completed the initial phase of three phases of a new flight training campus and corporate headquarters in Carmel, Indiana (the "Aviation Campus"). The Aviation Campus includes a training center that will be used to perform substantially all of our training activities for pilots, flight attendants, maintenance technicians, and dispatchers and houses eight full motion simulators along with flat panel simulators, cabin trainers, and classrooms. Additionally, the Aviation Campus includes overnight accommodations that will be used exclusively by our associates in training. During the year ended December 31, 2024, the second phase of the Aviation Campus was completed, including a parking garage. The third phase of construction for the Aviation Campus has commenced and is expected to be completed during the year ending December 31, 2025. As of December 31, 2023 and 2024, the Company recorded $1.3 million in capitalized interest costs to property and equipment, net, in the consolidated balance sheets.

The following table displays the Company's future contractual obligations for property and equipment under firm order:

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Payment Due by Period** | **Payment Due by Period** | **Payment Due by Period** | **Payment Due by Period** | **Payment Due by Period** | **Payment Due by Period** | **Payment Due by Period** |
| <br>**(in millions)** | **2025** | **2026** | **2027** | **2028** | **2029** | **Thereafter** | **Total** |
|  Aircraft and other equipment under purchase obligations | $430.3 | $522.7 | $105.3 |  |  |  | $1058.3 |
|  Aviation Campus | 48.9 | 3.7 |  |  |  |  | 52.6 |

---

**Guarantees**—Republic Airways has guaranteed certain obligations of LIFT Academy and certain third parties related to LIFT Academy operations. Expected losses from guaranteed obligations are derived from total

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commitments outstanding to third parties coupled with the probability of repayment and are recorded to accrued liabilities and other non-current liabilities in the consolidated balance sheets and other operating expense in the consolidated statements of operations. Total guaranteed obligations as of December 31, 2023, and 2024 were $14.7 million, and $20.2 million respectively. Losses expected to be incurred from guaranteed obligations were $4.7 million and $6.9 million as of December 31, 2023 and 2024, respectively.

10. CONTINGENCIES

**General indemnifications**—The Company is a party to aircraft lease and financing arrangements, which include provisions requiring the Company to indemnify the lessor or financing party against certain losses which may arise from use of the related aircraft and equipment, including losses arising from tax consequences. The Company expects that such losses would constitute insurable losses and would therefore be subject to insurance coverage. Losses expected to arise from indemnities cannot be reasonably determined due to the uncertainty surrounding circumstances which may give rise to losses, or the amount of expected losses which could arise.

The Company expects to terminate certain provisions of its maintenance service agreements. During the year ended December 31, 2023 and 2024, the Company recorded an expected termination cost of $0.2 million and $4.8 million, respectively. Costs related to the early termination under these agreements could reach $10.0 million.

**Legal matters**—The Company is involved in various legal actions considered routine to the ordinary course of business. Contingent losses expected to arise as a result of pending legal matters, which could include expected future settlements, judgements, and legal fees are recorded when amounts become probable and are able to be estimated. Estimated future losses and legal fees related to ongoing litigation were not material as of December 31, 2023 and 2024.

While the Company cannot predict the outcome of these events with certainty, management does not believe pending legal matters would have a material effect on our results of operations, cash flows, or financial position.

**Employees under collective bargaining agreements** – As of December 31, 2024, the Company employed approximately 6,300 employees. Of the Company's total headcount, approximately 70% of the employee base is represented by collective bargaining agreements as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Employee Group** | **Represented**<br>**Employees** | **Represented**<br>**Employees** | **Union Group** |
|  Pilots |  | 2194 | International Brotherhood of Teamsters ("IBT"), Local 357 |
|  Flight attendants |  | 2127 | IBT, Local 135 |
|  Dispatchers |  | 116 | Transport Workers Union of America ("TWU"), Local 592 |

---

The collective bargaining agreements between the Company and our pilots, flight attendants, and dispatcher associate bases become amendable during the year ending December 31, 2027.

Although the Company has never had a work interruption or stoppage, the Company is subject to risks of work interruption or stoppage. Such conditions would materially impact the Company's financial position, results of operations and cash flows, should they occur.

11. MEZZANINE EQUITY AND SHARE BASED COMPENSATION

During the year ended December 31, 2020, the Company adopted the 2020 Omnibus Incentive Plan and issued restricted shares to the Company's Board of Directors. These restricted shares vest immediately but cannot be sold until March 15, 2026, unless a Liquidity Event or termination of the participant's service to the Company's Board of Directors occurs earlier. In the event a market does not exist for the restricted shares, the agreement provides certain

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put rights for the shares to be put to the Company at fair market value. The Company determined the put rights require these shares be classified in mezzanine equity. The amount presented in mezzanine equity at each balance sheet date is based on the accumulated expense of the shares in accordance with ASC 718, *Compensation—Stock Compensation*. The Company issued 482 restricted stock units in relation to the plan during the year ended December 31, 2023. The Company issued no restricted stock units in the year ended December 31, 2024.

Additionally, since 2020, the Company has issued and has outstanding 20,275 restricted stock units to certain members of management of the Company. The stock units include a market condition that could decrease the number of shares to be issued if the fair market value of the Company does not increase over 30% by December 31, 2025. The restricted stock units also included a performance condition multiplier up to 300% of the restricted stock units issued based upon a liquidity event as determined by the Board of Directors and an increase in the fair market value of the Company as of the liquidity event date. The performance condition was not probable to occur as of December 31, 2022, 2023, or 2024, and therefore no expense has been recognized related to the remaining performance condition. If no liquidity event occurs, these restricted stock units will vest on December 31, 2025, unless termination of employment occurs earlier. In certain conditions, if participant employment terminates with the Company and a market does not exist for the restricted shares, the agreement provides certain put rights for the shares to be put to the Company at fair market value. The estimated grant date fair value of each restricted stock unit using a Monte Carlo simulation model considering the market condition but not including the performance condition was $292.60 per share. The amount recorded for share-based compensation during the years ended December 31, 2022, 2023, 2024 in wages and benefits in the consolidated statements of operations was not material. The Company presents all share-based compensation in mezzanine equity at each balance sheet date based on the accumulated expense of the restricted shares at the grant date in accordance with ASC 718, *Compensation—Stock Compensation*. As of December 31, 2023 and 2024, the total unrecognized compensation cost related to non-vested restricted stock units that the Company expects to recognize over the vesting period absent a Liquidity Event or other event accelerates the vesting of the shares was $2.4 million and $1.1 million respectively. The Company accounts for forfeitures as they occur.

The Company will record cumulative stock-based compensation expense related to the RSUs with performance-based vesting conditions in the period when its liquidity event is completed as well as the acceleration of the vesting of the award. If the transaction closes in October 2025 based on the current amount of outstanding RSUs, the Company will record an additional $2.4 million of stock-based compensation expense related to these RSUs.

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| | | |
|:---|:---|:---|
|  | **Number of Shares** | **Weighted Average<br>Grant Date Fair Value** |
|  **Unvested at December 31, 2021** | 21200 | $292.60 |
|  **Forfeited** |  |  |
|  **Unvested at December 31, 2022** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21200 | 292.60 |
|  **Forfeited** | (925) | 292.60 |
|  **Unvested at December 31, 2023** | 20275 | 292.60 |
|  **Forfeited** |  |  |
|  **Unvested at December 31, 2024** | 20275 | 292.60 |

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12. INCOME TAXES

The components of income tax expense for the years ended December 31, are as follows:

---

| | | | |
|:---|:---|:---|:---|
| **(in millions)** | **2022** | **2023** | **2024** |
|  **Federal:** |  |  |  |
|  Deferred | $19.1 | $19.5 | $18.8 |
|  Total Federal | 19.1 | 19.5 | 18.8 |
|  **State:** |  |  |  |
|  Current | 2.8 | 3.8 | 5.1 |
|  Deferred | 0.2 | 13.6 | 2.0 |
|  Total State | 3.0 | 17.4 | 7.1 |
|  Change in valuation allowance | 0.3 | (3.4) | (2.1) |
|  Benefit for uncertain tax positions |  | (0.3) | (1.5) |
|  Income tax expense | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.4 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33.2 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.3 |

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A reconciliation of income tax expense at the applicable federal statutory income tax rate to the tax provision as reported for the years ended December 31, are as follows:

---

| | | | |
|:---|:---|:---|:---|
| **(in millions)** | **2022** | **2023** | **2024** |
|  Federal income tax expense at the statutory rate | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.9 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.5 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.2 |
|  State income tax expense, net of federal benefit | 2.6 | 3.5 | 3.3 |
|  Change in valuation allowance | 0.3 | (3.4) | (2.1) |
|  Permanent tax adjustments |  | 0.8 | 0.6 |
|  Benefit for uncertain tax positions |  | (0.3) | (1.5) |
|  Change in tax rate |  | 11.4 | 1.1 |
|  Other | 0.6 | 2.7 | 2.7 |
|  Income tax expense | $22.4 | $33.2 | $22.3 |

---

Deferred income tax assets (liabilities) as of December 31, are comprised of the following:

---

| | | | |
|:---|:---|:---|:---|
| **(in millions)** | **2022** | **2023** | **2024** |
|  DEFERRED TAX ASSETS: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Federal and state net operating loss carryforward ("NOL"), net of liability for uncertain tax positions | $162.1 | $123.7 | $90.2 |
| &nbsp;&nbsp;&nbsp;&nbsp; Nondeductible accruals | 6.4 | 5.9 | 8.1 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued compensation | 15.0 | 18.5 | 19.9 |
| &nbsp;&nbsp;&nbsp;&nbsp; Deferred revenue | 6.9 | 7.4 | 15.1 |
| &nbsp;&nbsp;&nbsp;&nbsp; Lease liability | 30.3 | 34.4 | 32.4 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other | 0.5 |  | 1.8 |
|  Total deferred tax assets | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;221.2 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;189.9 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;167.5 |
|  Valuation allowance | (41.9) | (38.5) | (36.4) |
|  Total deferred tax assets, net of valuation allowance | 179.3 | 151.4 | 131.1 |
|  DEFERRED TAX LIABILITIES: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Accelerated depreciation and fixed asset basis differences for tax purposes | (308.3) | (307.5) | (306.7) |
| &nbsp;&nbsp;&nbsp;&nbsp; Right of use asset | (28.9) | (32.7) | (30.4) |

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| | | | |
|:---|:---|:---|:---|
| **(in millions)** | **2022** | **2023** | **2024** |
| &nbsp;&nbsp;&nbsp;&nbsp; Other | (1.6) |  |  |
|  Total deferred tax liabilities | (338.8) | (340.2) | (337.1) |
|  Total net deferred tax liabilities | $(159.5) | $(188.8) | $(206.0) |

---

The Company's deferred tax assets were generated as a result of temporary differences between deductibility of reserves, accruals, and lease liabilities and recognition of revenue for the determination of income on a tax basis versus a U.S. GAAP basis combined with significant NOL. Deferred tax liabilities relate predominantly to differences in U.S. GAAP and tax bases of aircraft and other equipment and the related right of use asset created as the present value of remaining lease payments at measurement date. The Company accelerates depreciation for tax reporting purposes for new aircraft and equipment deliveries.

The Company monitors ongoing tax cases related to its unrecognized tax benefits. The unrecognized tax benefits, which if recognized, would impact the effective tax rate. The Company anticipates that total unrecognized tax benefits would change approximately $1.1 million within the next 12 months due to the expiration of the statute of limitations. The following table reconciles the Company's tax liability for uncertain tax positions for the years ended December 31:

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| | | | |
|:---|:---|:---|:---|
| **(in millions)** | **2022** | **2023** | **2024** |
|  Balance at the beginning of the period | $3.5 | $3.5 | $3.4 |
|  Reductions for tax positions taken in prior years |  | (0.3) | (1.5) |
|  Additions for tax positions of prior years related to rate change |  | 0.2 |  |
|  Balance at the end of the period | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.9 |

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The following table reconciles the Company's valuation allowance for the years ended December 31 as follows:

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| | | | |
|:---|:---|:---|:---|
| **(in millions)** | **2022** | **2023** | **2024** |
|  Balance at the beginning of the period | $41.6 | $41.9 | $38.5 |
|  Additions (reductions) for current year change in estimates | 0.3 | (3.4) | (2.1) |
|  Balance at the end of the period | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;41.9 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38.5 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;36.4 |

---

The Company anticipates that total valuation allowance would change by approximately $10 million within the next 12 months due to the expiration of the statute of limitations. This change will be offset with a $10 million write-off of the underlying deferred tax asset.

As of December 31, 2024, the Company has federal NOL carryforwards totaling approximately $350 million, which begin expiring during the year ending December 31, 2025. Tax years beginning in 2004 through 2024 are currently subject to examination by the Internal Revenue Service.

13. DEFINED CONTRIBUTION PLAN

The Company sponsors a defined contribution 401(k) plan (the "401(k) Plan"). The 401(k) Plan provides retirement savings alternatives to our associates. In accordance with the 401(k) Plan rules, associates may elect pre-tax deferrals, after-tax Roth deferrals, or a combination thereof, from eligible compensation. The Company matches up to 8.0% of non-crew associates' eligible compensation, and the related employer matching contributions are immediately vested. During the year ended December 31, 2022, the Company reached

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##### [**Table of Contents**](#toc)
agreement with IBT, Local 357 and IBT, Local 135, representing the pilot and flight attendant labor groups, respectively. Prior to the agreement, the Company contributed up to a 9.0% and 6.0% employer contribution for pilots and flight attendants, respectively. Enhancements under each CBA included increases to associate retirement savings benefits for which the Company contributes up to a 12.0% employer contribution and 8.0% employer matching contribution over a five-year vesting period for pilots and flight attendants, respectively. The Company's compensation expense related to the 401(k) Plan was $17.3 million, $27.7 million, and $28.6 million for the years ended December 31, 2022, 2023, and 2024 respectively.

14. RELATED PARTY TRANSACTIONS

The Company is a closely-held private company, and related parties include our Partner Airlines and an original equipment manufacturer (the "Related Parties"), with whom we have held long-standing relationships.

The Company regularly transacts with its Related Parties as defined in ASC 850, *Related Parties*, in the ordinary course of business. Related party transactions are derived from passenger service under our capacity purchase relationships, certain aircraft leasing commitments between the Company and our Partners, and aircraft maintenance activities, which in turn, generate balances due to or due from our Related Parties. In addition, the Company generated deferred revenue balances from capital projects carried out on behalf of our Partners. Assets and liabilities expected to be realized within 12 months are classified as receivables-related parties and accounts payable and accrued liabilities-related parties, respectively, and other non-current assets-related parties and other non-current liabilities- related parties, respectively, for amounts expected to be realized thereafter. Substantially all of the Company's revenues are derived from related parties during the years ended December 31, 2022, 2023, and 2024. Operating expenses incurred relate to aircraft rent expense, interrupted trip expenses, maintenance expense, and employee benefits, among others. Management has concluded that transactions of this nature were carried out on an arm's-length basis.

**Risks and uncertainties**—During the years ended December 31, 2022, 2023, and 2024, substantially all of the Company's revenues are derived from capacity purchase agreements with our Partner Airlines. Termination of any of these capacity purchase agreements could have a material adverse effect on the Company's financial position, results of operations, and operating cash flows.

Each of the Company's Partner Airlines comprise the following receivables and revenues as of December 31, 2023 and 2024 for the years ended December 31, 2022, 2023, and 2024:

---

| | | | |
|:---|:---|:---|:---|
| **Concentration base** | **American**<br>**Airlines** | **Delta Air<br>Lines** | **United**<br>**Airlines** |
|  **Revenues for the year ended:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; December 31, 2022 | 47% | 23% | 29% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; December 31, 2023 | 46 | 23 | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; December 31, 2024 | 43 | 26 | 30 |
|  **Receivables as of:** | **Receivables as of:** | **Receivables as of:** | **Receivables as of:** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; December 31, 2023 | 10% | 37% | 23% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; December 31, 2024 | 29 | 34 | 19 |

---

15. SUBSEQUENT EVENTS

The Company evaluated subsequent events through July 10, 2025, the date the consolidated financial statements were available to be issued.

The Company took delivery of six new E175 aircraft, placed into service during the six months ended June 30, 2025. Additionally, the Company obtained $164.3 million in secured borrowings collateralized by a complement of regional aircraft, training aircraft, and spare engines with terms ranging from five to 12 years.

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##### [**Table of Contents**](#toc)
On April 4, 2025, Republic Airways and Mesa Air Group (the "Parties") entered into an Agreement and Plan of Merger (the "Merger") pursuant to which Republic Airways will merge with and into Mesa Air Group. Upon closing of the Merger, the combined company will be renamed to Republic Airways, will be led by executive leadership of Republic Airways, and stockholders of Republic Airways will hold at least 88% interest in the combined company. Republic Airways will contribute six of seven non-employee directors to the combined Board of Directors, while Mesa Air Group will contribute one of seven non-employee directors.

During the six months ended June 30, 2025, the Company received notice from the U.S. Department of Treasury to exercise 3,194 of their existing warrants for Republic Airways common stock. These warrants were settled through a cash payment of $0.4 million.

Bryan Bedford, the Company's former President and Chief Executive Officer, received Presidential nomination to the position of Administrator of the Federal Aviation Administration of the U.S. Department of Transportation by President Donald Trump. In connection with such nomination, Mr. Bedford retired from the Company effective July 1, 2025. Republic paid a cash payment of $16.0 million related to his employment contract and issued 16,733 shares to Mr. Bedford. Republic will record expense of approximately $18.8 million during the third quarter of 2025 related to his separation and retirement. Matthew Koscal, Executive Vice President and Chief Administrative Officer, was promoted to President and Chief Commercial Officer of the Company, and David Grizzle, Chairman of the Board of Directors of the Company, began serving as Chief Executive Officer upon Mr. Bedford's retirement on July 1, 2025.

Through July 10, 2025, Republic granted 30,291 RSUs to certain members of management, which are subject to both time- and performance-based vesting conditions (the "Republic Integration RSUs"). The time-vesting Republic Integration RSUs vest in equal installments on the third and fourth anniversaries of the Closing Date, subject to continued employment. The performance-vesting Republic Integration RSUs vest, subject to continued employment, in one-third tranches upon achievement of specified operational milestones, including (i) approval of an aircraft bridging and harmonization program, (ii) approval of a pilot training transition program and (iii) relocation of Mesa's corporate functions to Carmel, Indiana. If the Closing does not occur or the Merger Agreement is terminated, all Republic Integration RSUs will be immediately forfeited for no consideration.

In addition, during the six months ended June 30, 2025, the Company issued 4,486 RSUs to certain members of management. The RSUs vest ratably over a three-year period. The agreement provides certain put rights for shares to be put to the Company at fair market value. The estimated grant date fair value of each RSU was $600 per share.

\* \* \* \* \*

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#### REPUBLIC AIRWAYS HOLDINGS INC. AND SUBSIDIARIES

#### CONDENSED CONSOLIDATED BALANCE SHEETS

#### AS OF DECEMBER 31, 2024 AND JUNE 30, 2025
(UNAUDITED)

#### (In millions, except share and per share amounts)

---

| | | |
|:---|:---|:---|
|  | **December 31, 2024** | **June 30, 2025** |
|  **ASSETS** |  |  |
|  CURRENT ASSETS: |  |  |
|  Cash and cash equivalents | $110.5 | $95.4 |
|  Marketable securities | 191.5 | 196.8 |
|  Restricted cash | 21.4 | 21.4 |
|  Receivables, net | 9.8 | 11.6 |
|  Receivables—related parties | 41.9 | 52.9 |
|  Inventories | 63.0 | 65.2 |
|  Prepaid expenses and other current assets | 15.2 | 21.1 |
|  Total current assets | 453.3 | 464.4 |
|  Property and other equipment, net | 2109.5 | 2248.8 |
|  Operating lease right-of-use assets | 122.9 | 115.7 |
|  Other non-current assets | 47.1 | 50.0 |
|  Other non-current assets—related parties | 35.0 | 32.2 |
|  TOTAL ASSETS | $2767.8 | $2911.1 |
|  **LIABILITIES, MEZZANINE EQUITY, AND SHAREHOLDERS' EQUITY** |  |  |
|  CURRENT LIABILITIES: |  |  |
|  Current portion of long-term debt and finance leases | $259.6 | $234.6 |
|  Current portion of operating lease liabilities | 13.5 | 13.6 |
|  Accounts payable | 37.2 | 46.6 |
|  Accrued liabilities | 168.9 | 155.0 |
|  Accounts payable and accrued liabilities—related parties | 9.9 | 20.1 |
|  Total current liabilities | 489.1 | 469.9 |
|  Long-term debt and finance leases—less current portion | 752.2 | 824.4 |
|  Operating lease liabilities—less current portion | 117.6 | 110.7 |
|  Other non-current liabilities | 44.8 | 45.4 |
|  Other non-current liabilities—related parties | 41.8 | 51.1 |
|  Deferred income taxes | 206.0 | 226.5 |
|  Total liabilities | 1651.5 | 1728.0 |
|  COMMITMENTS AND CONTINGENCIES (Note 6) |  |  |
|  MEZZANINE EQUITY (Note 7): |  |  |
|  Restricted stock units, 74,169 authorized; 2,645 and 4,108 shares issued and outstanding, respectively | 5.8 | 8.1 |
|  SHAREHOLDERS' EQUITY: |  |  |
|  Common stock, $0.001 par value; 1,025,831 shares authorized, 1,000,000 shares issued and outstanding |  |  |
|  Additional paid-in capital | 478.0 | 478.0 |
|  Accumulated earnings | 632.5 | 697.0 |
|  Total shareholders' equity | 1110.5 | 1175.0 |
|  TOTAL LIABILITIES, MEZZANINE EQUITY, AND SHAREHOLDERS' EQUITY | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2767.8 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2911.1 |

---

See accompanying notes to the unaudited condensed consolidated financial statements.

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#### REPUBLIC AIRWAYS HOLDINGS INC. AND SUBSIDIARIES

#### CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

#### FOR THE SIX MONTHS ENDED JUNE 30, 2024 AND 2025
(UNAUDITED)

#### (In millions)

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended** | **Six Months Ended** |
|  | **June 30, 2024** | **June 30, 2025** |
|  REVENUES <sup>(1)</sup> | $712.2 | $800.4 |
|  OPERATING EXPENSES: |  |  |
|  Wages and benefits | 323.0 | 359.0 |
|  Aircraft and engine rent | 1.8 |  |
|  Maintenance and repair | 128.8 | 132.0 |
|  Maintenance and repair—related parties | 21.5 | 18.4 |
|  Depreciation and amortization | 58.0 | 61.5 |
|  Other operating expense | 106.6 | 121.4 |
|  Other operating expense—related parties | 1.3 | 0.8 |
|  Total operating expenses | 641.0 | 693.1 |
|  OPERATING INCOME | 71.2 | 107.3 |
|  OTHER EXPENSE: |  |  |
|  Investment (loss) income and other, net | (3.5) | 9.1 |
|  Interest expense | (29.4) | (29.1) |
|  Total other expense, net | (32.9) | (20.0) |
|  INCOME BEFORE INCOME TAXES | 38.3 | 87.3 |
|  INCOME TAX EXPENSE | 10.7 | 22.8 |
|  NET INCOME | $27.6 | $64.5 |

---

<sup>(1)</sup> Substantially all of the Company's revenues are derived from related parties during the six months ended June 30, 2024 and 2025. Refer to Note 8, *Related Party Transactions*.

See accompanying notes to the unaudited condensed consolidated financial statements.

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#### REPUBLIC AIRWAYS HOLDINGS INC. AND SUBSIDIARIES

#### CONDENSED CONSOLIDATED STATEMENTS OF MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY

#### FOR THE SIX MONTHS ENDED JUNE 30, 2024 AND 2025

#### (In millions, except share amounts)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Mezzanine Equity** | **Mezzanine Equity** | **Common Stock** | **Common Stock** | **Additional<br>Paid-In<br>Capital** | **Accumulated**<br>**Earnings** | **Total<br>Shareholder's<br>Equity** |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Additional<br>Paid-In<br>Capital** | **Accumulated**<br>**Earnings** | **Total<br>Shareholder's<br>Equity** |
|  Balance at January 1, 2024 | 2645 | $4.8 | 1000000 | $— | $478.0 | $567.9 | $1045.9 |
|  Net income |  |  |  |  |  | 27.6 | 27.6 |
|  Stock-based compensation |  | 0.4 |  |  |  |  |  |
|  Balance at June 30, 2024 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2645 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000000 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | $478.0 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;595.5 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1073.5 |

---

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Mezzanine Equity** | **Mezzanine Equity** | **Common Stock** | **Common Stock** | **Additional<br>Paid-In<br>Capital** | **Accumulated**<br>**Earnings** | **Total<br>Shareholder's<br>Equity** |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Additional<br>Paid-In<br>Capital** | **Accumulated**<br>**Earnings** | **Total<br>Shareholder's<br>Equity** |
|  Balance at January 1, 2025 | 2645 | $5.8 | 1000000 | $— | $478.0 | $632.5 | $1110.5 |
|  Net income |  |  |  |  |  | 64.5 | 64.5 |
|  Shares issued | 1463 | 0.9 |  |  |  |  |  |
|  Stock-based compensation |  | 1.4 |  |  |  |  |  |
|  Balance at June 30, 2025 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4108 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000000 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | $478.0 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;697.0 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1175.0 |

---

See accompanying notes to the unaudited condensed consolidated financial statements.

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#### REPUBLIC AIRWAYS HOLDINGS INC. AND SUBSIDIARIES

#### CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

#### FOR THE SIX MONTHS ENDED JUNE 30, 2024 AND 2025
(UNAUDITED)

#### (In millions)

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended** | **Six Months Ended** |
|  | **June 30, 2024** | **June 30, 2025** |
|  NET CASH PROVIDED BY OPERATING ACTIVITIES | $78.0 | $142.0 |
|  INVESTING ACTIVITIES: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of property and equipment <sup>(1)</sup> | (55.8) | (186.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from insurance, sale of property, and other equipment | 84.1 | 0.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pre-delivery deposits paid <sup>(1)</sup> | (16.4) | (11.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of marketable securities and investments | (86.0) | (94.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from the sale of marketable securities | 125.3 | 92.5 |
|  NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | 51.2 | (199.8) |
|  FINANCING ACTIVITIES: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments on debt and finance lease obligations | (118.2) | (119.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from issuance of debt | 28.5 | 164.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments on early debt extinguishment | (36.2) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other, net | (0.8) | (2.0) |
|  NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES | (126.7) | 42.7 |
|  NET CHANGES IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | 2.5 | (15.1) |
|  CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—Beginning of period | 113.5 | 131.9 |
|  CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—End of period | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;116.0 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;116.8 |
|  CASH PAID FOR: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest, net of capitalized amounts | $28.9 | $28.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes, net of refunds | 2.8 | 3.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amounts included in the measurement of operating lease liabilities | 11.6 | 10.1 |
|  SUPPLEMENTAL DISCLOSURE OF NON-CASH TRANSACTIONS: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property and equipment acquired but not paid | 4.8 | 16.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Parts credits received from aircraft and engine manufactures | 0.4 | 3.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Parts credits received from aircraft and engine manufactures—related parties | 0.1 | 0.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Right-of-use assets acquired or modified under operating leases | 8.6 | (0.3) |

---

<sup>(1)</sup> The Company made aircraft, pre-delivery deposit payments, inventory and rotable spare part purchases from its original equipment manufacturer, a related party, of $38.1 million and $148.8 million during the six months ended June 30, 2024 and June 30, 2025, respectively. 

See accompanying notes to the unaudited condensed consolidated financial statements.

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#### REPUBLIC AIRWAYS HOLDINGS INC. AND SUBSIDIARIES

#### NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. ORGANIZATION & BUSINESS

Republic Airways Holdings Inc. (the "Company" or the "Parent") is a Delaware holding company conducting substantially all of its operations through its wholly-owned regional air carrier subsidiary, Republic Airways Inc. ("Republic Airways" or the "Airline"). The Company regularly provides scheduled passenger service on approximately 1,100 flights daily to more than 90 cities in the United States, Canada, and the Caribbean operating under the American Eagle, Delta Connection, and United Express brands through our partnerships with American Airlines, Inc. ("American Airlines"), Delta Air Lines, Inc. ("Delta Air Lines"), and United Airlines, Inc. ("United Airlines") (collectively, our "Partners" or "Partner Airlines") under fixed-fee capacity purchase agreements ("CPA," or collectively, our "CPAs"). Republic Airways exclusively operates the Embraer E170/175 family of aircraft among our Partners' hub and focus cities.

The Company also operates its Leadership In Flight Training Academy ("LIFT Academy") with a mission to attract a new generation of aviators to commercial aviation by providing superior flight training, while addressing the economic, regulatory, and structural barriers to entry to the aviation industry by offering its graduates a defined career pathway to First Officer with Republic Airways. LIFT Academy has the capacity to train 500 future aviators in furtherance of its mission to attract new aviators to the profession.

During the six months ended June 30, 2025, the Company acquired five new E175 aircraft placed into service under the United Airlines CPA and repositioned five E170 aircraft from United Airlines to American Airlines upon scheduled expiry of the United Airlines CPA term. Additionally, the Company removed one E175 from the Delta Air Lines CPA during the six months ended June 30, 2025. Aircraft committed to each of our Partner Airlines' operations as of June 30, 2025 are as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Aircraft <sup>(1)</sup>** | **American<br>Airlines** | **Delta<br>Air Lines** | **United<br>Airlines** | **Total Aircraft<br>Committed** |
|  E170 | 41 | 11 | 10 | 62 |
|  E175 | 79 | 46 | 56 | 181 |
|  | 120 | 57 | 66 | 243 |

---

<sup>(1)</sup> Represents the minimum contracted fleet out of a total of 245 aircraft as of June 30, 2025, excluding two unallocated spare aircraft. 

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

**Basis of presentation—**The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (''U.S. GAAP'') and include the accounts of Republic Airways Holdings Inc. and its wholly-owned subsidiaries. Intercompany transactions and balances have been eliminated in consolidation.

The Company's financial position, results of operations, and cash flows are representative of actual events, circumstances, and transactions giving effect to the Company's financial records during the periods presented. Management believes the accompanying unaudited condensed consolidated financial statements include all adjustments and disclosures necessary, consisting of normal recurring adjustments, necessary for fair presentation of these financial statements on an interim basis. Balances and results as of and during the periods presented are not necessarily indicative of results to be expected as of and for the year ending December 31, 2025. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted, as is permissible under such rules and regulations.

Accordingly, these financial statements should be read in conjunction with the Company's consolidated financial statements and notes thereto as of and for the year ended December 31, 2024.

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**Mezzanine Equity—**During the year ended December 31, 2020, the Company adopted the 2020 Omnibus Incentive Plan in which restricted stock units ("RSUs") were issued to members of the Board of Directors and key members of management. RSUs are conditionally redeemable upon the occurrence of events that are not solely within control of the issuer of the securities. As such, RSUs are classified as mezzanine (temporary) equity as to convey that these shares may not have a permanent equity classification. See Note 7, *Mezzanine Equity and Share Based Compensation*.

**Recent accounting pronouncements—**The recent accounting pronouncements are listed with adoption dates for publicly traded companies, as the Company maintains an accelerated public company adoption timeline for new accounting standards and updates.

In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-09—*Improvement to Income Tax Disclosures (Topic 740)*, to provide clarifying guidance on the transparency of income tax disclosures. ASU 2023-09 is effective for public entities for annual reporting periods after December 15, 2024. The Company is currently evaluating the impact the standard will have to the consolidated financial statements and related disclosures.

In November 2024, the FASB issued ASU 2024-03—*Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40)*, to provide investors with more granular detail on cost of sales, and selling, general, and administrative expenses. ASU 2024-03 is effective for public entities for fiscal years beginning after December 15, 2026, with early adoption permitted. The Company is currently evaluating the impact the standard will have to the consolidated financial statements and related disclosures.

In May 2025, the FASB issued ASU 2025-03—*Business Combinations (Topic 805) and Consolidation (Topic 810): Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity*, which revises the guidance in ASC 805 on identifying the accounting acquirer in a business combination in which the legal acquiree is a variable interest entity (VIE). ASU 2025-03 is effective for public entities for fiscal years beginning after December 15, 2026 with early adoption permitted. The Company early adopted ASU 2025-03 on January 1, 2025, and the impact of the implementation to the consolidated financial statements was not material.

3. REVENUE RECOGNITION

The Company accounts for contracts with our Partner Airlines under Accounting Standard Codification ("ASC") 606, *Revenue from Contracts with Customers*, and ASC 842, *Leases*, as applicable, when each party has committed to perform under the contract, each party's rights and payment terms have been established, when the contract has commercial substance, and when collectability of amounts due under the contract is probable. Under CPAs with our Partner Airlines, the Company has committed to perform various flight services and maintenance activities classified as regional jet services. Regional jet services represent a series of distinct services accounted for as a single performance obligation satisfied over time as flights are completed. Substantially all of the Company's revenues are generated from regional jet services.

Revenues associated with regional jet services are generally derived from (i) a fixed fee per departure, flight hour, and/or block hour of time incurred and a fixed rate for available-to-schedule aircraft, payable on a monthly basis; and (ii) a premium amount which is earned monthly and quarterly by maintaining minimum aircraft utilization levels and exemplary operating results. To the extent that minimum targets are not achieved, the Company could be subject to financial penalties. These fixed-fee rates are contractually subject to periodic economic adjustment. The Company additionally receives reimbursement from our Partners for direct expenses incurred such as qualifying maintenance activities, property taxes, and miscellaneous operating expenses. The Company refers to Partner reimbursements as "pass-through charges." Certain charges such as fuel and landing fees are generally paid directly by our Partner Airlines, although the charges were incurred by the Company in our ongoing operations. The Company refers to these charges as "Partner direct charges." Pass-through charges are primarily recorded to revenues and the corresponding operating expense on a gross basis. Pass-through charges recorded on a net basis are not material.

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Amounts recognized as regional jet services revenues are measured at the contractual amount the Company expects it will be entitled to in exchange for the promised services. The Company allocates the transaction price as flights are completed with variable consideration that relates specifically to the Company's efforts in delivering each flight recognized in the period in which the individual flight is completed and measured on a monthly basis. The Company records an estimate for incentive revenue based on our expected performance at the end of each period. These estimates are derived under accounting guidance related to variable consideration constraints and based on amounts expected to be collected. The Company has concluded that allocating the variability directly to individual flights results in an overall allocation meeting the objectives in ASC 606. This results in a pattern of revenue recognition that generally follows the variable amounts billed from the Company to Partner Airlines.

A portion of the Company's compensation under its CPAs is designed to reimburse the Company for certain aircraft ownership costs. The Company has concluded that a component of its revenue under the CPAs is deemed to be embedded lease revenue and as such, agreements identify the right-of-use of a specific type and number of aircraft over the term of the CPA. Embedded lease revenue associated with the Company's CPAs is accounted for as an operating lease under ASC 842, *Leases*.

Revenues derived from our capacity purchase agreements are disaggregated by Partner Airline for the six months ended June 30, 2024 and 2025 as follows:

---

| | | |
|:---|:---|:---|
| | **Six Months Ended** | **Six Months Ended** |
| <br>**(in millions)** | **June 30, 2024** | **June 30, 2025** |
|  American Airlines | $306.0 | $349.5 |
|  Delta Air Lines | 183.1 | 204.7 |
|  United Airlines | 215.3 | 234.5 |
|  Other | 7.8 | 11.7 |
|  Total revenues | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;712.2 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;800.4 |

---

During the six months ended June 30, 2024 and 2025, regional jet service revenue along with the embedded lease ownership component comprise approximately 99% of total revenue and are disaggregated below.

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| | | |
|:---|:---|:---|
| | **Six Months Ended** | **Six Months Ended** |
| <br>**(in millions)** | **June 30, 2024** | **June 30, 2025** |
|  Regional jet service revenue | $561.5 | $640.3 |
|  Lease revenue <sup>(1)</sup> | 142.9 | 148.4 |
|  Other revenue | 7.8 | 11.7 |
|  Total revenues | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;712.2 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;800.4 |

---

<sup>(1)</sup> Certain of our CPAs include embedded leases for the right-of-use of our regional jet aircraft. The corresponding rental income is classified herein.

LIFT Academy recorded tuition revenue of $7.7 million and $11.5 million during the six months ended June 30, 2024 and 2025, respectively. Tuition from students is recorded to accrued liabilities in the condensed consolidated balance sheets and is recognized on a systematic basis as students progress throughout their respective training programs.

Amounts recognized as revenues in the condensed consolidated statements of operations are subject to certain estimates, which could materially impact the timing and consideration determined under the contract. Such estimates include (i) expected contract terms from material modifications to our fixed-fee capacity purchase agreements and (ii) the extent to which disputes in contract interpretation arise.

**Receivables and contract assets—**Receivables represent a right to consideration for promised services which have been transferred to our customers. The Company records provisions for credit losses using an

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##### [**Table of Contents**](#toc)
expected credit losses model on the basis of specific identification and historical collection experience. Credit losses for the six months ended June 30, 2024 and 2025 were not material. Contract assets are generated from the partial satisfaction of certain performance obligations, generally related to the delivery of aircraft maintenance services, under customer contracts whereby the Company has the right to consideration for services transferred or provided to its customers. Contract assets of $34.4 million and $31.7 million are recorded to other non-current assets-related parties in the condensed consolidated balance sheets as of December 31, 2024 and June 30, 2025, which have been appropriately reduced for the applicable financing component.

**Contract liabilities—**Contract liabilities consist of deferred revenues for which the Company has received customer payment for undelivered services. In addition, the Company periodically carries out capital projects on behalf of the Partner Airlines, generally pertaining to aircraft fleet and livery improvements. Revenues of this nature are recognized over time, depicting the pattern of transfer of control of services, resulting in ratable recognition of revenues over the remaining term of the CPA.

Current and non-current deferred revenues are contract liabilities and are recorded to accrued liabilities—related parties and other non-current liabilities—related parties, respectively, in the condensed consolidated balance sheets. The Company recognized $6.4 million and $7.9 million of the deferred revenue to revenues in the condensed consolidated statements of operations during the six months ended June 30, 2024 and 2025, respectively, which was previously recorded in contract liabilities at December 31, 2023 and 2024. Current contract liabilities were $22.7 million and $18.2 million as of December 31, 2024 and June 30, 2025, respectively. Non-current contract liabilities were $41.8 million and $51.1 million as of December 31, 2024 and June 30, 2025, respectively.

4. LEASES

The Company routinely enters into operating and finance leases as a financing method for aircraft, spare engines, flight training equipment, and operating facilities. The Company records a lease asset and corresponding liability for leases with terms exceeding 12 months. Such assets and liabilities are measured at the present value of remaining lease payments at the commencement of the lease or consummation of a lease modification.

Lease terms give effect to early termination and renewal options when it is reasonably certain that such options will be exercised. The Company determines present value, discounting payment streams at the interest rate implicit in the lease, when available, taking into consideration economic escalation provisions, when applicable. When this information is unknown, the Company estimates its incremental borrowing rate at the related lease commencement date, which is derived from prevailing market interest rates, recent debt acquisitions specific to the Company, or other debt instruments having similar characteristics at lease commencement. With the exception of our CPAs and operating facilities, the Company does not separate lease and non-lease contractual components. Provisions for residual value guarantees are not material.

**Aircraft leasing arrangements—**The Company's CPAs include provisions for the right-to-use of the Company's aircraft in carrying out regional jet services. Such provisions constitute embedded leases for which the Company receives reimbursement for aircraft ownership costs, as our Partner Airlines obtain substantially all of the economic benefit from our aircraft committed to our Partners. The Company mitigates the risk from residual and undeployed leased assets in the event of default of one of our Partners by actively monitoring aircraft and engine financing terms compared to market terms in order to effectively sell or redeploy aircraft to the extent they become unused or underutilized, which additionally decreases with the extent to which the Company operates aircraft leased directly by our Partners ("Partner-Controlled Aircraft").

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##### [**Table of Contents**](#toc)
Rental revenue from operating leases for each of the next five years and total of the remaining lease terms as of June 30, 2025:

---

| | |
|:---|:---|
| **(in millions)** | **Revenue Recognition** |
| 2025 | $167.0 |
| 2026 | 289.2 |
| 2027 | 280.0 |
| 2028 | 250.7 |
| 2029 | 225.1 |
|  Thereafter | 622.4 |
|  Total | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1834.4 |

---

5. FAIR VALUE MEASUREMENTS

The Company measures the following assets and liabilities at fair value on a recurring basis:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
| <br>**(in millions)** | **Recorded<br>Balance** | **Level 1** | **Level 2** | **Level 3** |
|  Cash, cash equivalents, and restricted cash | $131.9 | $131.9 | $— | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
|  Marketable securities | 191.5 | 191.5 |  |  |
|  EVE Investment | 18.7 | 5.4 |  | 13.3 |
|  U.S. Treasury Warrants | (6.8) |  |  | (6.8) |
|  Total | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;335.3 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;328.8 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | $6.5 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** |
| <br>**(in millions)** | **Recorded<br>Balance** | **Level 1** | **Level 2** | **Level 3** |
|  Cash, cash equivalents, and restricted cash | $116.8 | $116.8 | $— | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
|  Marketable securities | 196.8 | 196.8 |  |  |
|  EVE Investment | 22.4 | 6.9 |  | 15.5 |
|  U.S. Treasury Warrants | (4.7) |  |  | (4.7) |
|  Total | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;331.3 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;320.5 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | $10.8 |

---

The Company recorded no non-recurring fair value measurements for the six months ended June 30, 2024 and 2025. The U.S. Treasury exercised a portion of the U.S. Treasury Warrants upon scheduled maturity during the six months ended June 30, 2025. Amounts recorded to investment (loss) income and other, net, were not material for the period then ended.

The following table presents the implied volatility, which is the unobservable input, used in the determination of fair value of Level 3 investments for the six months ended June 30, 2024 and 2025:

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended<br>June 30, 2024** | **Six Months Ended<br>June 30, 2025** |
|  EVE Investment | 69.2% | 74.6% |
|  U.S. Treasury Warrants | 77.8 | 78.4 |

---

6. COMMITMENTS AND CONTINGENCIES

The Company's long-term commitments primarily include lease obligations (see Note 4, *Leases*), long-term maintenance agreements, and purchase commitments, among others.

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**Purchase commitments—**The Company has a commitment with Embraer S.A. to purchase 75 E175 or second generation E175 aircraft, 35 of which have been delivered and five of which have been cancelled as of June 30, 2025. In April 2025, the Company executed an amendment to the 2018 commitment purchase agreement with Embraer S.A. to conform to current economic conditions and extend the delivery schedule of certain committed aircraft. The remaining 35 aircraft are expected to be delivered between 2025 and 2028.

During the six months ended June 30, 2025, the Company executed an amendment to an existing financing arrangement to finance contractually scheduled aircraft deliveries in 2025 and 2026, which provides funding for a portion of the total aircraft cost and is secured by the related aircraft, is funded upon each delivery. Additionally, the Company entered into a new credit facility secured by spare engines. As of June 30, 2025, the remaining maximum borrowings allowable under the agreements is $250.8 million.

During the year ended December 31, 2023, the Company completed the initial phase of three phases of a new flight training campus and corporate headquarters in Carmel, Indiana (the "Aviation Campus"). The Aviation Campus includes a training center that will be used to perform substantially all of our training activities for pilots, flight attendants, maintenance technicians, and dispatchers and houses eight full motion simulators along with flat panel simulators, cabin trainers, and classrooms. Additionally, the Aviation Campus includes overnight accommodations that will be used exclusively by our associates in training. During the year ended December 31, 2024, the second phase of the Aviation Campus was completed, including a parking garage. The third phase of construction for the Aviation Campus has commenced and is expected to be completed during the year ending December 31, 2025.

The following table displays the Company's future contractual obligations for property and equipment under firm order:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Payment Due by Period** | **Payment Due by Period** | **Payment Due by Period** | **Payment Due by Period** | **Payment Due by Period** | **Payment Due by Period** | **Payment Due by Period** |
| <br>**(in millions)** | **2025** | **2026** | **2027** | **2028** | **2029** | **Thereafter** | **Total** |
|  Aircraft and other equipment under purchase obligations | $240.9 | $361.1 | $111.8 | $269.9 |  |  | $983.7 |
|  Aviation Campus | 27.8 | 3.7 |  |  |  |  | 31.5 |

---

**General indemnifications—**The Company is a party to aircraft lease and financing arrangements, which include provisions requiring the Company to indemnify the lessor or financing party against certain losses which may arise from use of the related aircraft and equipment, including losses arising from tax consequences. The Company expects that such losses would constitute insurable losses and would therefore be subject to insurance coverage. Losses expected to arise from indemnities cannot be reasonably determined due to the uncertainty surrounding circumstances which may give rise to losses, or the amount of expected losses which could arise.

**Legal matters—**The Company is involved in various legal actions considered routine to the ordinary course of business. Contingent losses expected to arise as a result of pending legal matters, which could include expected future settlements, judgements, and legal fees are recorded when amounts become probable and are able to be estimated. Estimated future losses and legal fees related to ongoing litigation were not material as of December 31, 2024 and June 30, 2025. While the Company cannot predict the outcome of these events with certainty, management does not believe pending legal matters would have a material effect on our results of operations, cash flows, or financial position.

7. MEZZANINE EQUITY AND SHARE BASED COMPENSATION

During the year ended December 31, 2020, the Company adopted the 2020 Omnibus Incentive Plan and issued RSUs to the Company's board of directors. RSUs vest immediately with a contractual sale restriction until March 15, 2026, unless a liquidity event or termination of the participant's service to the Company's board of directors occurs earlier. In the event a market does not exist for the RSUs, the agreement provides certain put rights for the RSUs to be put to the Company at fair market value. The put rights require these RSUs be classified

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in mezzanine equity. The amount presented in mezzanine equity at each balance sheet date is based on the accumulated expense of the RSUs in accordance with ASC 718, *Compensation—Stock Compensation*. The Company issued no RSUs during the six months ended June 30, 2024 and 1,463 RSUs during the six months ended June 30, 2025, at an estimated grant date fair value of $600 per share.

Additionally, since 2020, the Company has issued and has outstanding 19,875 RSUs to certain members of management of the Company. The RSUs include a market condition that could decrease the number of RSUs to be issued if the fair market value of the Company does not increase over 30% by December 31, 2025. The RSUs also included a performance condition multiplier up to 300% of the RSUs issued based on the incurrence of a liquidity event as determined by the Company's board of directors and an increase in the fair market value of the Company as of the liquidity event date. The performance condition was not probable to occur as of December 31, 2024 and June 30, 2025 and therefore no expense has been recognized related to the remaining performance condition. If no liquidity event occurs, these RSUs will vest on December 31, 2025, unless termination of employment occurs earlier. In certain conditions, if participant employment terminates with the Company and a market does not exist for the RSUs, the agreement provides certain put rights for the RSUs to be put to the Company at fair market value. The estimated grant date fair value of each RSU using a Monte Carlo simulation model considering the market condition but not including the performance condition was $292.60 per share. The Company presents all share-based compensation in mezzanine equity at each balance sheet date based on the accumulated expense of the RSUs at the grant date in accordance with ASC 718, *Compensation— Stock Compensation*.

In addition, during the six months ended June 30, 2025, the Company granted 4,486 RSUs to certain key members of management of the Company. The RSUs include a vesting condition and vest ratably each year over a three-year vesting period. The agreement provides certain put rights for the RSUs to be put to the Company at fair market value. The estimated grant date fair value of each RSU was $600 per share.

Also, during the six months ended June 30, 2025, Republic granted 25,388 RSUs to certain key members of management, which are subject to both time- and performance-based vesting conditions (the "Republic Integration RSUs"). The time-vesting Republic Integration RSUs vest in equal installments on the third and fourth anniversaries of closing of a contemplated liquidity event ("Closing"), subject to continued employment of the RSU holder. The performance-vesting Republic Integration RSUs vest, subject to continued employment, in one-third tranches upon achievement of specified operational milestones. Compensation expense will begin to be recorded upon resolution of contingent vesting conditions, which coincides with the Closing. The Company expects to record $10.7 million over four years starting at the Closing and $4.6 million related to performance conditions will begin to be recorded as each performance condition becomes probable over the expected time period to acheive the respective performance condition. If the Closing does not occur or the Merger Agreement is terminated, all Republic Integration RSUs will be immediately forfeited for no consideration.

As of June 30, 2025, the total unrecognized compensation cost related to non-vested RSUs not including the Republic Integration RSUs that the Company expects to recognize over a weighted average of approximately one year was $2.5 million. The Company accounts for forfeitures as they occur.

The Company will record cumulative stock-based compensation expense related to the RSUs with performance-based vesting conditions in the period when its liquidity event is completed as well as the acceleration of the vesting of the award. If the transaction closes in October 2025 based on the amount of outstanding RSUs as of June 30, 2025, the Company will record an additional $2.4 million of stock-based compensation expense related to these RSUs.

---

| | | |
|:---|:---|:---|
|  | **Number of Shares** | **Weighted Average<br>Grant Date Fair Value** |
|  **Unvested at December 31, 2024** | 20275 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;292.60 |
|  **Granted** | 29874 | 600.00 |
|  **Forfeited** | (400) | 292.60 |
|  **Unvested at June 30, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;49749 | 477.19 |

---

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##### [**Table of Contents**](#toc)
8. RELATED PARTY TRANSACTIONS

The Company is a closely held private company, and related parties include our Partner Airlines and an original equipment manufacturer (the "Related Parties"), with whom the Company has held long-standing relationships.

The Company regularly transacts with its Related Parties as defined in ASC 850, *Related Parties*, in the ordinary course of business. Related party transactions are derived from passenger service under our capacity purchase relationships, certain aircraft leasing commitments, and aircraft maintenance activities, which in turn, generate balances due to or due from our Related Parties.

Each of the Company's Partner Airlines comprise the following revenues for the six months ended June 30, 2024 and 2025 and receivables as of December 31, 2024 and June 30, 2025:

---

| | | | |
|:---|:---|:---|:---|
| **Concentration base** | **American<br>Airlines** | **Delta Air<br>Lines** | **United<br>Airlines** |
|  **Revenues for the six months ended:** |  |  |  |
|  June 30, 2024 | 43% | 26% | 30% |
|  June 30, 2025 | 44 | 26 | 29 |
|  **Receivables as of:** |  |  |  |
|  December 31, 2024 | 29% | 34% | 19% |
|  June 30, 2025 | 20 | 50 | 13 |

---

9. SUBSEQUENT EVENTS

The Company evaluated subsequent events through August 14, 2025, the date the condensed consolidated financial statements were available to be issued.

Bryan Bedford, the Company's former President and Chief Executive Officer, received Presidential nomination to the position of Administrator of the Federal Aviation Administration of the U.S. Department of Transportation by President Donald Trump. In connection with such nomination, Mr. Bedford retired from the Company effective July 1, 2025. Republic paid a cash payment of $16.0 million related to his employment contract. Upon effectiveness of his retirement, 7,308 RSUs were granted and 9,425 RSUs held by Mr. Bedford were all considered earned and vested immediately, resulting in additional compensation expense of $7.7 million. Republic will record total expense of approximately $18.8 million during the third quarter of 2025 related to Mr. Bedford's separation and retirement. Matthew Koscal, Executive Vice President and Chief Administrative Officer, was promoted to President and Chief Commercial Officer of the Company, and David Grizzle, Chairman of the Board of Directors of the Company, began serving as Chief Executive Officer upon Mr. Bedford's retirement on July 1, 2025.

During July 2025, the Company granted a key member of management 4,903 Republic Integration RSUs as well as 432 RSUs that vest ratably each year over a three-year vesting period and provides certain put rights for the RSUs to be put to the Company at fair market value. The estimated grant date fair value of each RSU was $600 per share.

From June 30, 2025, to August 14, 2025, the Company received notice from the U.S. Department of Treasury to exercise 4,467 of the U.S. Treasury Warrants for Republic Airways common stock upon scheduled maturity. These warrants were settled through a cash payment of $0.6 million.

\*\*\*\*

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##### [**Table of Contents**](#toc)

#### Annex A

#### Execution Version
AGREEMENT, PLAN OF CONVERSION AND

PLAN OF MERGER

between

MESA AIR GROUP, INC.,

and

REPUBLIC AIRWAYS HOLDINGS INC.

Dated as of April 4, 2025

------

##### [**Table of Contents**](#toc)

#### **TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
|  |  | **Page** |
| **ARTICLE I** | **ARTICLE I** | **ARTICLE I** |
| CONVERSION; MERGER | CONVERSION; MERGER | CONVERSION; MERGER |
|  [Section 1.1](#anxa_toc944307_1) | [Closing](#anxa_toc944307_1) | A-2 |
|  [Section 1.2](#anxa_toc944307_2) | [Plan of Conversion](#anxa_toc944307_2) | A-2 |
|  [Section 1.3](#anxa_toc944307_3) | [Merger](#anxa_toc944307_3) | A-3 |
|  [Section 1.4](#anxa_toc944307_4) | [Certain Corporate Governance Matters](#anxa_toc944307_4) | A-4 |
| **ARTICLE II**<br>EFFECT OF THE MERGER; OTHER TRANSACTIONS | **ARTICLE II**<br>EFFECT OF THE MERGER; OTHER TRANSACTIONS | **ARTICLE II**<br>EFFECT OF THE MERGER; OTHER TRANSACTIONS |
| **ARTICLE II**<br>EFFECT OF THE MERGER; OTHER TRANSACTIONS | **ARTICLE II**<br>EFFECT OF THE MERGER; OTHER TRANSACTIONS | **ARTICLE II**<br>EFFECT OF THE MERGER; OTHER TRANSACTIONS |
|  [Section 2.1](#anxa_toc944307_5) | [Effect on Securities](#anxa_toc944307_5) | A-4 |
|  [Section 2.2](#anxa_toc944307_6) | [Exchange Procedures](#anxa_toc944307_6) | A-6 |
|  [Section 2.3](#anxa_toc944307_7) | [Withholding](#anxa_toc944307_7) | A-7 |
|  [Section 2.4](#anxa_toc944307_8) | [Treatment of Parent RSUs and Parent Restricted Stock Awards](#anxa_toc944307_8) | A-7 |
|  [Section 2.5](#anxa_toc944307_9) | [Treatment of Company RSUs](#anxa_toc944307_9) | A-7 |
|  [Section 2.6](#anxa_toc944307_10) | [Post-Closing Payments.](#anxa_toc944307_10) | A-8 |
| **ARTICLE III**<br>REPRESENTATIONS AND WARRANTIES OF THE COMPANY | **ARTICLE III**<br>REPRESENTATIONS AND WARRANTIES OF THE COMPANY | **ARTICLE III**<br>REPRESENTATIONS AND WARRANTIES OF THE COMPANY |
| **ARTICLE III**<br>REPRESENTATIONS AND WARRANTIES OF THE COMPANY | **ARTICLE III**<br>REPRESENTATIONS AND WARRANTIES OF THE COMPANY | **ARTICLE III**<br>REPRESENTATIONS AND WARRANTIES OF THE COMPANY |
|  [Section 3.1](#anxa_toc944307_11) | [Organization and Qualification; Subsidiaries](#anxa_toc944307_11) | A-8 |
|  [Section 3.2](#anxa_toc944307_12) | [Capitalization](#anxa_toc944307_12) | A-9 |
|  [Section 3.3](#anxa_toc944307_13) | [Authority; Required Vote](#anxa_toc944307_13) | A-10 |
|  [Section 3.4](#anxa_toc944307_14) | [No Conflict](#anxa_toc944307_14) | A-11 |
|  [Section 3.5](#anxa_toc944307_15) | [Required Filings and Consents](#anxa_toc944307_15) | A-11 |
|  [Section 3.6](#anxa_toc944307_16) | [Permits; Compliance with Law](#anxa_toc944307_16) | A-11 |
|  [Section 3.7](#anxa_toc944307_17) | [Financial Statements; No Undisclosed Liabilities](#anxa_toc944307_17) | A-12 |
|  [Section 3.8](#anxa_toc944307_18) | [State Takeover Laws; No Rights Agreements](#anxa_toc944307_18) | A-12 |
|  [Section 3.9](#anxa_toc944307_19) | [Absence of Certain Changes or Events](#anxa_toc944307_19) | A-12 |
|  [Section 3.10](#anxa_toc944307_20) | [Litigation](#anxa_toc944307_20) | A-13 |
|  [Section 3.11](#anxa_toc944307_21) | [Tax Matters](#anxa_toc944307_21) | A-13 |
|  [Section 3.12](#anxa_toc944307_22) | [Brokers](#anxa_toc944307_22) | A-14 |
|  [Section 3.13](#anxa_toc944307_23) | [\[*Intentionally Omitted*\]](#anxa_toc944307_23) | A-14 |
|  [Section 3.14](#anxa_toc944307_24) | [Employee Benefit Plans](#anxa_toc944307_24) | A-14 |
|  [Section 3.15](#anxa_toc944307_25) | [Environmental Matters](#anxa_toc944307_25) | A-14 |
|  [Section 3.16](#anxa_toc944307_26) | [Data Privacy and Security Matters](#anxa_toc944307_26) | A-15 |
|  [Section 3.17](#anxa_toc944307_27) | [Insurance](#anxa_toc944307_27) | A-16 |
|  [Section 3.18](#anxa_toc944307_28) | [Properties and Assets](#anxa_toc944307_28) | A-16 |
|  [Section 3.19](#anxa_toc944307_29) | [\[*Intentionally Omitted*\].](#anxa_toc944307_29) | A-16 |
|  [Section 3.20](#anxa_toc944307_30) | [Information Supplied](#anxa_toc944307_30) | A-16 |
|  [Section 3.21](#anxa_toc944307_31) | [Non-Reliance](#anxa_toc944307_31) | A-17 |
|  [Section 3.22](#anxa_toc944307_32) | [No Other Representations and Warranties](#anxa_toc944307_32) | A-17 |
| **A-ARTICLE IV** | **A-ARTICLE IV** | **A-ARTICLE IV** |
| REPRESENTATIONS AND WARRANTIES OF PARENT | REPRESENTATIONS AND WARRANTIES OF PARENT | REPRESENTATIONS AND WARRANTIES OF PARENT |
|  [Section 4.1](#anxa_toc944307_33) | [Organization and Qualification; Subsidiaries](#anxa_toc944307_33) | A-17 |
|  [Section 4.2](#anxa_toc944307_34) | [Capitalization](#anxa_toc944307_34) | A-18 |
|  [Section 4.3](#anxa_toc944307_35) | [Authority; Required Votes](#anxa_toc944307_35) | A-19 |

---

A-i

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##### [**Table of Contents**](#toc)

---

| | | |
|:---|:---|:---|
|  |  | **Page** |
|  [Section 4.4](#anxa_toc944307_36) | [No Conflict](#anxa_toc944307_36) | A-20 |
|  [Section 4.5](#anxa_toc944307_37) | [Required Filings and Consents](#anxa_toc944307_37) | A-20 |
|  [Section 4.6](#anxa_toc944307_38) | [Permits; Compliance with Law](#anxa_toc944307_38) | A-20 |
|  [Section 4.7](#anxa_toc944307_39) | [SEC Reports; Financial Statements](#anxa_toc944307_39) | A-22 |
|  [Section 4.8](#anxa_toc944307_40) | [Internal Controls](#anxa_toc944307_40) | A-23 |
|  [Section 4.9](#anxa_toc944307_41) | [State Takeover Laws; No Rights Agreements](#anxa_toc944307_41) | A-24 |
|  [Section 4.10](#anxa_toc944307_42) | [No Undisclosed Liabilities](#anxa_toc944307_42) | A-24 |
|  [Section 4.11](#anxa_toc944307_43) | [Absence of Certain Changes or Events](#anxa_toc944307_43) | A-24 |
|  [Section 4.12](#anxa_toc944307_44) | [Employee Benefit Plans](#anxa_toc944307_44) | A-24 |
|  [Section 4.13](#anxa_toc944307_45) | [Labor and Other Employment Matters](#anxa_toc944307_45) | A-26 |
|  [Section 4.14](#anxa_toc944307_46) | [Contracts](#anxa_toc944307_46) | A-27 |
|  [Section 4.15](#anxa_toc944307_47) | [Litigation](#anxa_toc944307_47) | A-28 |
|  [Section 4.16](#anxa_toc944307_48) | [Environmental Matters](#anxa_toc944307_48) | A-29 |
|  [Section 4.17](#anxa_toc944307_49) | [Intellectual Property; IT Assets](#anxa_toc944307_49) | A-29 |
|  [Section 4.18](#anxa_toc944307_50) | [Data Privacy and Security](#anxa_toc944307_50) | A-30 |
|  [Section 4.19](#anxa_toc944307_51) | [Tax Matters](#anxa_toc944307_51) | A-31 |
|  [Section 4.20](#anxa_toc944307_52) | [Insurance](#anxa_toc944307_52) | A-33 |
|  [Section 4.21](#anxa_toc944307_53) | [Properties and Assets](#anxa_toc944307_53) | A-33 |
|  [Section 4.22](#anxa_toc944307_54) | [Real Property](#anxa_toc944307_54) | A-34 |
|  [Section 4.23](#anxa_toc944307_55) | [Related Party Transactions](#anxa_toc944307_55) | A-34 |
|  [Section 4.24](#anxa_toc944307_56) | [Aircraft](#anxa_toc944307_56) | A-34 |
|  [Section 4.25](#anxa_toc944307_57) | [Parent Slots and Operating Authorizations](#anxa_toc944307_57) | A-36 |
|  [Section 4.26](#anxa_toc944307_58) | [Parent Airports](#anxa_toc944307_58) | A-36 |
|  [Section 4.27](#anxa_toc944307_59) | [U.S. Citizen; Air Carrier](#anxa_toc944307_59) | A-36 |
|  [Section 4.28](#anxa_toc944307_60) | [Opinion of Financial Advisor](#anxa_toc944307_60) | A-36 |
|  [Section 4.29](#anxa_toc944307_61) | [Brokers](#anxa_toc944307_61) | A-37 |
|  [Section 4.30](#anxa_toc944307_62) | [Trade Control Compliance](#anxa_toc944307_62) | A-37 |
|  [Section 4.31](#anxa_toc944307_63) | [Information Supplied](#anxa_toc944307_63) | A-37 |
|  [Section 4.32](#anxa_toc944307_64) | [Parent Treasury Restrictions](#anxa_toc944307_64) | A-37 |
|  [Section 4.33](#anxa_toc944307_65) | [Non-Reliance](#anxa_toc944307_65) | A-37 |
|  [Section 4.34](#anxa_toc944307_66) | [No Other Representations and Warranties](#anxa_toc944307_66) | A-38 |
| **A-ARTICLE V** | **A-ARTICLE V** | **A-ARTICLE V** |
| COVENANTS AND AGREEMENTS | COVENANTS AND AGREEMENTS | COVENANTS AND AGREEMENTS |
|  [Section 5.1](#anxa_toc944307_67) | [Conduct of Business by the Company](#anxa_toc944307_67) | A-38 |
|  [Section 5.2](#anxa_toc944307_68) | [Conduct of Business by Parent](#anxa_toc944307_68) | A-39 |
|  [Section 5.3](#anxa_toc944307_69) | [Access to Information; Confidentiality](#anxa_toc944307_69) | A-43 |
|  [Section 5.4](#anxa_toc944307_70) | [Parent No-Shop](#anxa_toc944307_70) | A-43 |
|  [Section 5.5](#anxa_toc944307_71) | [Form S-4 and Proxy Statement; Parent Stockholder Meeting](#anxa_toc944307_71) | A-47 |
|  [Section 5.6](#anxa_toc944307_72) | [Company No-Shop](#anxa_toc944307_72) | A-49 |
|  [Section 5.7](#anxa_toc944307_73) | [Company Stockholder Approval](#anxa_toc944307_73) | A-53 |
|  [Section 5.8](#anxa_toc944307_74) | [Appropriate Action; Consents; Filings](#anxa_toc944307_74) | A-53 |
|  [Section 5.9](#anxa_toc944307_75) | [Certain Notices](#anxa_toc944307_75) | A-56 |
|  [Section 5.10](#anxa_toc944307_76) | [Public Announcements](#anxa_toc944307_76) | A-56 |
|  [Section 5.11](#anxa_toc944307_77) | [Employee Matters](#anxa_toc944307_77) | A-57 |
|  [Section 5.12](#anxa_toc944307_78) | [Indemnification of Parent Directors and Officers](#anxa_toc944307_78) | A-58 |
|  [Section 5.13](#anxa_toc944307_79) | [Indemnification of Company Directors and Officers](#anxa_toc944307_79) | A-59 |
|  [Section 5.14](#anxa_toc944307_80) | [State Takeover Laws](#anxa_toc944307_80) | A-60 |
|  [Section 5.15](#anxa_toc944307_81) | [Section 16 Matters](#anxa_toc944307_81) | A-60 |
|  [Section 5.16](#anxa_toc944307_82) | [Stockholder Litigation](#anxa_toc944307_82) | A-60 |
|  [Section 5.17](#anxa_toc944307_83) | [Tax Matters](#anxa_toc944307_83) | A-60 |

---

A-ii

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##### [**Table of Contents**](#toc)

---

| | | |
|:---|:---|:---|
|  |  | **Page** |
|  [Section 5.18](#anxa_toc944307_84) | [RWI Policy](#anxa_toc944307_84) | A-61 |
|  [Section 5.19](#anxa_toc944307_85) | [NASDAQ Listing](#anxa_toc944307_85) | A-61 |
| **ARTICLE VI** | **ARTICLE VI** | **ARTICLE VI** |
| CONDITIONS TO CLOSING | CONDITIONS TO CLOSING | CONDITIONS TO CLOSING |
|  [Section 6.1](#anxa_toc944307_86) | [Conditions to the Obligations of Each Party](#anxa_toc944307_86) | A-61 |
|  [Section 6.2](#anxa_toc944307_87) | [Conditions to Obligations of Parent](#anxa_toc944307_87) | A-62 |
|  [Section 6.3](#anxa_toc944307_88) | [Conditions to Obligations of the Company](#anxa_toc944307_88) | A-63 |
| **ARTICLE VII** | **ARTICLE VII** | **ARTICLE VII** |
| TERMINATION | TERMINATION | TERMINATION |
|  [Section 7.1](#anxa_toc944307_877) | [Termination](#anxa_toc944307_877) | A-64 |
|  [Section 7.2](#anxa_toc944307_888) | [Effect of Termination](#anxa_toc944307_888) | A-66 |
|  [Section 7.3](#anxa_toc944307_89) | [Termination Fee; Expense Reimbursement](#anxa_toc944307_89) | A-66 |
|  [Section 7.4](#anxa_toc944307_90) | [Amendment](#anxa_toc944307_90) | A-67 |
|  [Section 7.5](#anxa_toc944307_91) | [Waiver](#anxa_toc944307_91) | A-67 |
| **ARTICLE VIII** | **ARTICLE VIII** | **ARTICLE VIII** |
| GENERAL PROVISIONS | GENERAL PROVISIONS | GENERAL PROVISIONS |
|  [Section 8.1](#anxa_toc944307_92) | [Non-Survival of Representations, Warranties and Pre-Closing Covenants](#anxa_toc944307_92) | A-68 |
|  [Section 8.2](#anxa_toc944307_93) | [Fees and Expenses](#anxa_toc944307_93) | A-68 |
|  [Section 8.3](#anxa_toc944307_94) | [Notices](#anxa_toc944307_94) | A-68 |
|  [Section 8.4](#anxa_toc944307_95) | [Interpretation; Certain Definitions; Exhibits and Schedules](#anxa_toc944307_95) | A-69 |
|  [Section 8.5](#anxa_toc944307_96) | [Severability](#anxa_toc944307_96) | A-70 |
|  [Section 8.6](#anxa_toc944307_97) | [Assignment](#anxa_toc944307_97) | A-70 |
|  [Section 8.7](#anxa_toc944307_98) | [Entire Agreement](#anxa_toc944307_98) | A-70 |
|  [Section 8.8](#anxa_toc944307_99) | [No Third-Party Beneficiaries](#anxa_toc944307_99) | A-70 |
|  [Section 8.9](#anxa_toc944307_100) | [Remedies](#anxa_toc944307_100) | A-70 |
|  [Section 8.10](#anxa_toc944307_101) | [Governing Law; Exclusive Jurisdiction](#anxa_toc944307_101) | A-71 |
|  [Section 8.11](#anxa_toc944307_102) | [Waiver of Jury Trial](#anxa_toc944307_102) | A-71 |
|  [Section 8.12](#anxa_toc944307_103) | [Counterparts and Electronic Signatures](#anxa_toc944307_103) | A-71 |
|  [Section 8.13](#anxa_toc944307_104) | [Non-Recourse](#anxa_toc944307_104) | A-71 |
|  [Section 8.14](#anxa_toc944307_105) | [Mesa Representative](#anxa_toc944307_105) | A-72 |

---

---

| | |
|:---|:---|
| **APPENDICES** | **APPENDICES** |
| **Appendix A** | Definitions |
| **Appendix B** | Index of Defined Terms |
| **EXHIBITS** | **EXHIBITS** |
| **Exhibit 1** | Form of Post-Conversion Parent Charter |
| **Exhibit 2** | Form of Post-Conversion Parent Bylaws |
| **Exhibit 3** | Three Party Agreement |
| **Exhibit 4** | Form of Escrow Agreement |

---

A-iii

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##### [**Table of Contents**](#toc)
THIS AGREEMENT, PLAN OF CONVERSION AND PLAN OF MERGER (this "<u>Agreement</u>"), dated as of April 4, 2025, is made by and between Mesa Air Group, Inc., a Nevada corporation ("<u>Parent</u>"), and Republic Airways Holdings Inc., a Delaware corporation (the "<u>Company</u>" and, together with Parent, the "<u>Parties</u>").

<u>RECITALS</u> 

WHEREAS, Parent and the Company desire for Parent and the Company to effectuate a business combination on the terms and subject to the conditions set forth in this Agreement;

WHEREAS, in furtherance of such business combination, the Company will be merged with and into Parent, with Parent continuing as the Surviving Corporation, in accordance with the DGCL;

WHEREAS, prior to the consummation of the Merger, pursuant to the Plan of Conversion set forth in <u>Section</u> <u>1.2</u> (the "<u>Plan of Conversion</u>") and subject to the other terms and conditions of this Agreement, Parent shall convert into a Delaware corporation in accordance with Section 265 of the DGCL and NRS 92A.105 and 92A.205 (the "<u>Conversion</u>");

WHEREAS, concurrently with the Conversion, Parent shall file a certificate of incorporation with the Secretary of State of the State of Delaware and adopt bylaws, in the forms attached hereto as <u>Exhibits 1</u> and <u>2</u>, respectively;

WHEREAS, it is intended that, for United States federal income tax purposes, (i) the transactions contemplated by this Agreement shall qualify as a "reorganization" within the meaning of Section 368(a) of the Code and (ii) this Agreement shall constitute a "plan of reorganization" for purposes of the Code;

WHEREAS, Parent and the Company desire to make certain representations, warranties, covenants and agreements in connection with the Merger and also to prescribe various conditions to the Merger;

WHEREAS, concurrently with the execution and delivery of this Agreement, and as a condition to the willingness of the Company to enter into this Agreement, Parent, the Company and United Airlines, Inc. ("<u>United</u>"), among other parties, are entering into the transaction agreement attached hereto as <u>Exhibit 3</u> (the "<u>Three Party Agreement</u>"), which contemplates the parties at the Closing entering into the escrow agreement substantially in the form attached hereto as <u>Exhibit 4</u> (the "<u>Escrow Agreement</u>" and, together with this Agreement and the Three Party Agreement, the "<u>Transaction Agreements</u>"), pursuant to which, among other things: (i) Parent will take certain actions at or prior to the Closing to dispose of certain assets, extinguish certain liabilities and effectuate certain related transactions; (ii) United will take certain actions at or prior to the Closing to facilitate Parent's actions in the foregoing clause (i); and (iii) Parent promptly following the Closing (but in all events immediately following the Effective Time) will conduct a primary issuance of shares of Parent Common Stock equal to 6% of the issued and outstanding shares of Parent Common Stock after giving effect to the issuance of Parent Common Stock in the Merger (the "<u>Primary Issuance</u>"), which Primary Issuance will, subject to the terms and conditions of the Three Party Agreement and the Escrow Agreement, (A) first become available to United to the extent of certain financial contributions made by United to or on behalf of Parent at or prior to the Effective Time and (B) second, to the extent of any remainder, become available to the Surviving Corporation to satisfy certain liabilities, and (C) third, to the extent of any remainder, become available on a pro rata basis to the Persons who, as of immediately prior to the Effective Time, held shares of Parent Common Stock;

WHEREAS, concurrently with the execution and delivery of this Agreement, the Company and United are entering into a binding letter agreement (the "<u>CPA Side Letter</u>") which, among other things, provides for the respective obligations of United and Mesa Airlines, Inc. to execute and deliver to each other, effective as of

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immediately following the Effective Time, the capacity purchase agreement attached to the CPA Side Letter as Annex 1 thereto (such capacity purchase agreement, the "<u>Go-Forward CPA</u>"); and

WHEREAS, concurrently with the execution and delivery of this Agreement, Jonathan G. Ornstein, Michael J. Lotz and Brian S. Gillman is each entering into a separation and consulting agreement with Parent, copies of which have been delivered to the Company (each, a "<u>Separation and Consulting Agreement</u>").

NOW, THEREFORE, in consideration of the foregoing and the representations, warranties, covenants and agreements and subject to the conditions herein contained, and for other good and valuable consideration, the receipt and sufficiency of which is acknowledged, and intending to be legally bound hereby, the Parties hereby agree as follows:

#### ARTICLE I
<u>CONVERSION; MERGER</u>

Section 1.1 <u>Closing</u>. The closing of the Conversion, the Merger and the other transactions contemplated hereby (the "<u>Closing</u>") shall take place at 10:00 a.m., New York City time, on the third Business Day following the satisfaction or, to the extent permitted by applicable Law, waiver of the conditions set forth in <u>Article VI</u> (other than those conditions that by their terms are to be satisfied at the Closing, but subject to the satisfaction or, to the extent permitted by applicable Law, waiver of those conditions at the Closing), remotely by the electronic exchange of closing deliverables and the taking of the closing actions contemplated herein, unless another date, time or place is agreed to in writing by Parent and the Company; <u>provided</u> that notwithstanding anything to the contrary herein, unless mutually agreed by the Parties, neither Party shall be required to effect the Closing prior to September 8, 2025. The date on which the Closing occurs is referred to in this Agreement as the "<u>Closing Date</u>".

Section 1.2 <u>Plan of Conversion</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Conversion</u>. Upon the terms and subject to the conditions of this Agreement, following the Closing (but prior to the Effective Time), and in accordance with Section 265 of the DGCL and NRS 92A, Parent shall convert from a Nevada corporation (the "<u>Constituent Entity</u>") to a Delaware corporation (the "<u>Resulting Entity</u>") and shall thereafter be subject to all of the provisions of the DGCL, except that, pursuant to Section 265(d) of the DGCL, notwithstanding Section 106 of the DGCL, the existence of the Resulting Entity shall be deemed to have commenced on the date the Constituent Entity was first formed or incorporated in the State of Nevada.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Name and Jurisdiction of Constituent Entity and Resulting Entity</u>. For purposes of NRS 92A.105, the name and jurisdiction of the Constituent Entity is Mesa Air Group, Inc., a Nevada corporation, and the name and jurisdiction of the Resulting Entity is Mesa Air Group, Inc., a Delaware corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Conversion Effective Time</u>. Upon the terms and subject to the conditions of this Agreement, the Parties shall cause the Conversion to occur pursuant to and in accordance with Section 265 of the DGCL and NRS 92A by filing or causing to be filed: (i) a duly executed Certificate of Conversion with the Secretary of State of the State of Delaware, in form and substance reasonably acceptable to Parent and the Company (the "<u>Certificate of Conversion</u>"), together with the certificate of incorporation of Parent in the form set forth on <u>Exhibit 1</u> (as may be amended from time to time, the "<u>Post-Conversion Parent Charter</u>"), with such Certificate of Conversion becoming effective at such time as is agreed by Parent and the Company and specified in the Certificate of Conversion, provided that the effective date and time of the Certificate of Conversion shall in all events be the same effective date and time as the Post-Conversion Parent Charter, and (ii) duly executed Articles of Conversion with the Secretary of State of the State of Nevada, in form and substance reasonably acceptable to Parent and the Company (the "<u>Articles of Conversion</u>" and, together with the Certificate of Conversion, the

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"<u>Conversion Filings</u>"), with such Articles of Conversion becoming effective at the same time as the Certificate of Conversion (and with such effective time being specified in the Articles of Conversion). The Conversion shall become effective at the time specified in the Conversion Filings (the "Conversion Effective Time").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Manner of Conversion</u>. In connection with (and as part of) the Conversion, and pursuant to and in accordance with this Agreement, Section 265 of the DGCL and NRS 92A.105 (i) automatically and without any action on the part of any holder thereof, each share of common stock, no par value per share, of the Constituent Entity that is issued and outstanding immediately prior to the Conversion Effective Time shall be converted at the Conversion Time into one fully paid, validly issued and nonassessable share of common stock, no par value per share, of the Resulting Entity, (ii) except as set forth in Section 1.3(c) hereof, the Post-Conversion Parent Charter shall become the certificate of incorporation of the Parent, until thereafter supplemented or amended in accordance with its terms and the DGCL, and (iii) except as set forth in <u>Section</u> <u>1.3(c)</u> hereof, Parent shall adopt the bylaws in the form set forth on <u>Exhibit 2</u> (as may be amended from time to time, the "<u>Post-Conversion Parent Bylaws</u>"), as the bylaws of Parent, until thereafter supplemented or amended in accordance with its terms and the DGCL.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Dissenting Shares</u>. No dissenters' or appraisal rights shall be available with respect to the Conversion pursuant to NRS 92A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Primary Issuance</u>. Upon the terms and subject to the conditions of this Agreement and pursuant to the terms of the Three Party Agreement and the Escrow Agreement, immediately following the Effective Time, and in consideration for Parent's and the Company's willingness to enter into this Agreement, Parent will issue and deliver a number of validly issued, fully paid and nonassessable shares of Parent Common Stock equal to six percent (6%) of the total number of shares of Parent Common Stock issued and outstanding immediately following the Effective Time (but without giving effect to the Primary Issuance) (the "<u>Escrow Shares</u>") to the Escrow Agent (as defined in the Escrow Agreement). The shares issued pursuant to this <u>Section</u> <u>1.2(f)</u> shall be held by the Escrow Agent pursuant to, and governed by, the terms of the Three Party Agreement and the Escrow Agreement. Shares issued pursuant to this <u>Section</u> <u>1.2(f)</u> shall be distributed by the Escrow Agent to United, the Surviving Corporation and/or the holders of shares of Parent Common Stock issued and outstanding immediately prior to the Effective Time in accordance with the provisions of this Agreement, the Three Party Agreement and the Escrow Agreement.

Section 1.3 <u>Merger</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>The Merger</u>. Upon the terms of and subject to the conditions set forth in this Agreement, in connection with the Conversion and in accordance with the DGCL, at the Effective Time, the Company shall be merged with and into Parent (the "Merger"), the separate corporate existence of the Company shall cease, and Parent shall continue as the surviving corporation (the <u>"</u><u>Surviving Corporation</u><u>"</u>) in the Merger.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Effective Time</u>. Upon the terms and subject to the conditions of this Agreement, on the Closing Date, and in all events following the Conversion Effective Time, the Parties shall cause the Merger to be consummated by filing or causing to be filed a certificate of merger (the "<u>Certificate of Merger</u>") with the Secretary of State of the State of Delaware in accordance with the relevant provisions of the DGCL. The Merger shall become effective at such time as is specified in the Certificate of Merger, which time shall be after the Conversion Effective Time (the <u>"</u><u>Effective Time</u><u>"</u>). The Merger shall have the effects as set forth in this Agreement and the applicable provisions of the DGCL. Without limiting the generality of the foregoing, and subject to the terms and conditions of this Agreement (including those in Article II), at the Effective Time, all the property, rights, privileges, powers and franchises of each of the Company and Parent shall vest in the Surviving Corporation, and all debts, liabilities and duties of each of the Company and Parent shall attach to and become the debts, liabilities and duties of the Surviving Corporation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(c)</u> <u>Certificate of Incorporation; Bylaws</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Post-Conversion Parent Charter, which shall be the certificate of incorporation of Parent immediately prior to the Effective Time, shall be amended in the Merger as set forth below, and as so amended shall be the certificate of incorporation of Parent, as the Surviving Corporation, from and after the Effective Time until thereafter amended in accordance with applicable Law and the terms of such certificate of incorporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Section 1.1 of the Post-Conversion Parent Charter shall be deleted in its entirety and replaced with the following:

"Section 1.1. <u>Name.</u> The name of the Corporation is Republic Airways Holdings Inc. (the "<u>Corporation</u>")."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Post-Conversion Parent Bylaws, which shall be the bylaws of Parent immediately prior to the Effective Time, shall be the bylaws of Parent, as the surviving corporation in the Merger, as of the Effective Time, until thereafter amended in accordance with applicable Law and the terms of the certificate of incorporation of Parent and such bylaws; <u>provided</u>, <u>however</u>, that the Parties shall take all requisite action so that, as of the Effective Time, the Post-Conversion Parent Bylaws shall be amended to reflect that the name of Parent, as the Surviving Corporation, shall be "Republic Airways Holdings Inc.".

Section 1.4 <u>Certain Corporate Governance Matters</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Prior to the Effective Time, Parent shall take all actions necessary (including by securing and causing to be delivered to Parent (with written evidence thereof provided to the Company) the resignations of then-serving directors of the Parent Board) to cause, in each case effective as of the Effective Time: (i) the number of directors constituting the full board of directors of the Surviving Corporation (the "<u>Surviving Corporation Board</u>") to be seven; and (ii) the Surviving Corporation Board to be composed of: (A) six directors who prior to the Effective Time are designated by the Company, including a Chairman of the Surviving Corporation Board who prior to the Effective Time is designated by the Company; and (B) Ellen Artist, or such other director who may be proposed by Parent prior to the Effective Time and agreed upon by the Company (in its sole discretion) prior to the Effective Time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Prior to the Effective Time, Parent shall take all actions necessary to cause, in each case effective as of the Effective Time, the Chief Executive Officer, Chief Financial Officer, Chief Operating Officer and General Counsel (and any other "C-Suite" level officers) to be persons who prior to the Effective Time are designated by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Parent shall cause the name of Parent to be changed to "Republic Airways Holdings Inc.", with effectiveness upon the Effective Time. Parent shall, at the direction of the Company, take all reasonable actions within Parent's control to assist the Company in causing the NASDAQ ticker symbol of "RJET" (or such other ticker symbol as the Company may determine in its sole discretion) to be reserved, prior to the Conversion Effective Time, for Parent's use, with effectiveness upon the Effective Time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The headquarters of the Surviving Corporation shall be the pre-Closing headquarters of the Company.

#### ARTICLE II
<u>EFFECT OF THE MERGER; OTHER TRANSACTIONS</u>

Section 2.1 <u>Effect on Securities</u>. At the Effective Time, by virtue of the Merger and without any action on the part of the Company, Parent or the holders of any shares of capital stock of the Company or Parent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to <u>Section</u> <u>2.1(e)</u>, each share of Company Common Stock issued and outstanding immediately prior to the Effective Time (other than any Cancelled Shares and Dissenting Shares held by

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stockholders who (i) have not voted in favor of the Merger or consented to it in writing and (ii) have properly demanded appraisal of such shares of Company Common Stock in accordance with, and have complied in all respects with, the provisions of Section 262 of the DGCL) shall be automatically converted into the right to receive 584.90 (the "<u>Exchange Ratio</u>") validly issued, fully paid and nonassessable shares of Parent Common Stock (the "<u>Merger Consideration</u>"), without interest, to be paid in accordance with and subject to the applicable provisions of this Agreement. From and after the Effective Time, all shares of Company Common Stock shall automatically be cancelled and extinguished and shall cease to exist, and subject to <u>Section</u> <u>2.1(d)</u> with respect to Dissenting Shares and except as otherwise provided herein with respect to shares cancelled in accordance with <u>Section</u> <u>2.1(b)</u>, each holder thereof shall cease to have any rights with respect thereto other than the right to receive the Merger Consideration, without interest, in accordance with and subject to the applicable provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each share of Company Common Stock that is owned by the Company (as treasury stock or otherwise) or Parent or any of their respective Subsidiaries immediately prior to the Effective Time (the "<u>Cancelled Shares</u>") shall automatically be cancelled and extinguished and shall cease to exist, and no consideration or payment shall be owed or delivered in exchange therefor or in respect thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each share of Parent Common Stock issued and outstanding immediately prior to the Effective Time (for the avoidance of doubt, excluding the Escrow Shares) shall (i) remain issued and outstanding, and from and after the Effective Time, shall represent one (1) share of Parent Common Stock and (ii) entitle the holder thereof to the non-transferable contingent right to receive a Pro Rata Share of the Escrow Asset distributed pursuant to and in accordance with <u>Section</u> <u>2.6</u>, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Dissenting Shares</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Notwithstanding any provision of this Agreement to the contrary, shares of Company Common Stock that are issued and outstanding immediately prior to the Effective Time (other than Cancelled Shares) and which are held by Company Stockholders who have not voted in favor of the Merger or consented to it in writing and are entitled to demand, and who have properly exercised and perfected, appraisal rights for such shares of Company Common Stock in accordance with Section 262 of the DGCL (collectively, the "<u>Dissenting Shares</u>") until such time as such Company Stockholder effectively withdraws, fails to perfect or otherwise loses such Company Stockholder's appraisal rights under the DGCL with respect to such shares of Company Common Stock, at which time such shares of Company Common Stock shall cease to be Dissenting Shares shall not be converted into or represent the right to receive the Merger Consideration. Such Company Stockholders shall instead, and in lieu thereof, be entitled only to such rights as are granted by Section 262 of the DGCL to a holder of Dissenting Shares unless and until such Company Stockholder shall have effectively withdrawn, failed to perfect or otherwise lost its rights to appraisal under the DGCL (it being understood and acknowledged that at the Effective Time, such Dissenting Shares shall no longer be outstanding and shall automatically be cancelled and extinguished and cease to exist, and such holder shall cease to have any rights with respect thereto other than as expressly provided in Section 262 of the DGCL and this Agreement). All Dissenting Shares held by Company Stockholders who shall have waived, failed to perfect or who effectively shall have withdrawn or lost their right to appraisal of such shares of Company Common Stock under Section 262 of the DGCL or a court of competent jurisdiction shall determine that such stockholder is not entitled to the relief provided by Section 262 of the DGCL shall thereupon be deemed to have been converted as of the Effective Time into the right to receive the Merger Consideration, without interest, to be paid in accordance with and subject to the applicable provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Prior to the Effective Time, the Company shall give Parent prompt notice of any demands for appraisal received by the Company, withdrawals of such demands, and any other related instruments served pursuant to Section 262 of the DGCL and received by the Company. The Company shall not, except with the prior written consent of Parent (not to be unreasonably withheld, conditioned or delayed), make any payment with respect to, offer to settle or settle or offer to compromise or compromise any demands for appraisal, or agree to do any of the foregoing.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>No Fractional Shares</u>. No certificate or scrip representing fractional shares of Parent Common Stock shall be issued upon the conversion of shares of Company Common Stock pursuant to this <u>Section</u> <u>2.1</u>, and such fractional share interests shall not entitle the owner thereof to any Parent Common Stock or to any rights of a holder of Parent Common Stock. All fractional shares that a Company Stockholder would be otherwise entitled to receive under this <u>Section</u> <u>2.1</u> shall be aggregated and in lieu of any such fractional shares, each Company Stockholder shall be entitled to receive an amount in cash, without interest, rounded down to the nearest cent, equal to the product of such fractional amount otherwise payable to such Company Stockholder and the Parent Stock Value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Certain Adjustments</u>. The Exchange Ratio shall be adjusted, as applicable and appropriate, to reflect fully the effect of any stock split, reverse split, combination, subdivision, reclassification, stock dividend (including any dividend or distribution of securities convertible into Parent Common Stock), reorganization, recapitalization or other like change with respect to Parent Common Stock occurring after the date of this Agreement and prior to the Effective Time; <u>provided</u>, that nothing in this subsection (f) shall be construed to permit Parent to take any action with respect to its securities that it is prohibited by the terms of this Agreement, including <u>Section</u> <u>5.2</u>. For the avoidance of doubt, the Primary Issuance shall not trigger any adjustment to the Exchange Ratio pursuant to this <u>Section</u> <u>2.1(f)</u>.

Section 2.2 <u>Exchange Procedures</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Exchange Agent; Exchange Fund</u>. Prior to the Effective Time, Parent and the Company shall jointly appoint an exchange agent (the "<u>Exchange Agent</u>") for the payment of the Merger Consideration as provided herein. At or immediately prior to the Effective Time, Parent shall deposit or cause to be deposited with the Exchange Agent (i) book-entry shares of Parent Common Stock equal to the aggregate Merger Consideration and (ii) an amount in cash sufficient to pay the aggregate cash in lieu of fractional shares, in each case to be paid by the Exchange Agent pursuant to this Agreement (such aggregate number of shares of Parent Common Stock and aggregate amount of cash provided to the Exchange Agent, the "<u>Exchange Fund</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Procedures for Surrender</u>. No later than three Business Days prior to the anticipated Closing Date, Parent shall (or shall cause the Exchange Agent to) deliver to each holder of shares of Company Common Stock that is or will be at the Effective Time entitled to the Merger Consideration a letter of transmittal and instructions (in form and substance reasonably satisfactory to the Company) (the "<u>Letter of Transmittal</u>"). As soon as reasonably practicable after the Effective Time and in any event no later than two Business Days after the later of (x) the Effective Time and (y) receipt by the Exchange Agent from a holder of a duly completed and validly executed (in each case as reasonably determined by Parent) Letter of Transmittal and such other customary documents as may reasonably be required by Parent or the Exchange Agent, the Exchange Agent shall issue to such holder in exchange therefor (i) book-entry shares of Parent Common Stock equal to the aggregate Merger Consideration that such holder has the right to receive pursuant to this Agreement and (ii) cash in the amount equal to the aggregate cash in lieu of any fractional shares that such holder has the right to receive pursuant to this Agreement, in each case, without interest and subject to any applicable Tax withholding*.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Termination of Exchange Fund</u>. Any portion of the Exchange Fund which remains undistributed for 12 months after the Effective Time shall be returned to Parent, upon demand, and any former holder of Company Common Stock that has not complied with this <u>Article II</u> prior to the end of such period shall thereafter look only to Parent (subject to abandoned property, escheat or other similar Laws), but only as a general creditor thereof for payment of their claims for the Merger Consideration. Any Merger Consideration that remains unclaimed immediately prior to the date on which it would otherwise become subject to any abandoned property, escheat or similar Law shall, to the extent permitted by applicable Law, become the property of Parent, free and clear of all claims or interest of any Person previously entitled thereto, without liability by Parent or the Exchange Agent to any Person in respect thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Investment of Exchange Fund</u>. Until disbursed in accordance with the terms and conditions of this Agreement, the Exchange Agent shall invest any cash included in the Exchange Fund as directed by Parent and

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any interest and other income resulting from such investments shall be payable to Parent on demand; <u>provided</u>, that such investments shall be in commercial paper obligations rated A-1 or P-1 or better by Moody's Investor Services, Inc. or Standard & Poor's Corporation, respectively; <u>provided</u>, further that no such investment shall relieve Parent or the Exchange Agent from making or causing to be made the payments required by this <u>Article II</u> and Parent shall bear the sole risk of any investment loss.

Section 2.3 <u>Withholding</u>. Each of Parent, the Company, the Surviving Corporation, the Exchange Agent and any other applicable withholding agent, as applicable, shall be entitled to deduct and withhold from amounts otherwise payable pursuant to this Agreement to any holder of Company Common Stock or any other Person such amounts as it is required to deduct and withhold with respect to the making of such payment under applicable Law. To the extent that amounts are so withheld and remitted to the applicable Governmental Entity, such withheld amounts shall be treated for all purposes of this Agreement as having been paid to the holder of Company Common Stock or other Person in respect of which such deduction and withholding was made.

Section 2.4 <u>Treatment of Parent RSUs</u> <u>and Parent Restricted Stock Awards</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Immediately prior to the Effective Time, (i) any vesting conditions applicable to each Parent RSU shall, automatically and without any required action on the part of the holder thereof, accelerate in full, and (ii) each Parent RSU shall, automatically and without any required action on the part of the holder thereof, be cancelled and shall only entitle the holder of such Parent RSU to receive (A) the number of shares of Parent Common Stock subject to such Parent RSU immediately prior to the Effective Time and (B) the non-transferrable contingent right to receive a Pro Rata Share of the Escrow Asset distributed pursuant to and in accordance with <u>Section</u> <u>2.6</u>, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Immediately prior to the Effective Time, (i) any vesting conditions applicable to each Parent Restricted Stock Award shall, automatically and without any required action on the part of the holder thereof, accelerate in full, and (ii) each Parent Restricted Stock Award shall, automatically and without any required action on the part of the holder thereof, be cancelled and shall only entitle the holder of such Parent Restricted Stock Award to receive (A) the number of shares of Parent Common Stock subject to such Parent Restricted Stock Award immediately prior to the Effective Time and (B) the non-transferrable contingent right to receive a Pro Rata Share of the Escrow Asset distributed pursuant to and in accordance with <u>Section</u> <u>2.6</u>, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) At or prior to the Effective Time, Parent, the Parent Board and the Compensation Committee of the Parent Board, as applicable (or appropriate committee with delegated authority therefrom), shall adopt any resolutions and take any actions that are necessary or appropriate to effectuate the provisions of this <u>Section</u> <u>2.4</u> and to provide for the satisfaction of Tax withholding obligations for each holder of Parent RSUs or Parent Restricted Stock Awards receiving shares of Parent Common Stock in accordance with this <u>Section</u> <u>2.4</u>.

Section 2.5 <u>Treatment of Company RSUs</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Immediately prior to the Effective Time, (i) each outstanding Company RSU that has vested in accordance with its terms (including each outstanding Company RSU that will become vested upon the Closing based on the achievement of the performance criteria set forth in the applicable award agreements evidencing the grant of the Company RSUs, as determined by the Company Board and the Compensation Committee of the Company Board, as applicable (or appropriate committee with delegated authority therefrom), or otherwise) (a "<u>Vested Company RSU</u>") shall, automatically and without any required action on the part of the holder thereof, be cancelled and shall only entitle the holder of such Vested Company RSU to receive a number of whole shares of Company Common Stock (rounded up to the next whole share of Company Common Stock), which shares of Company Common Stock shall be converted into Parent Common Stock pursuant to this <u>Article II</u>, and (ii) each outstanding Company RSU that is not a Vested Company RSU (an "<u>Unvested Company RSU</u>") shall, automatically and without any required action on the part of the holder thereof, be assumed by Parent and converted into the right to receive an award of restricted shares of Parent Common Stock pursuant to the Parent

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Equity Award Plan (each, a "<u>Parent Restricted Stock Award</u>") in an amount equal to the number of whole shares of Parent Common Stock (rounded up to the next whole share of Parent Common Stock) equal to the product obtained by multiplying (x) the Exchange Ratio by (y) the total number of shares of Company Common Stock subject to such Unvested Company RSU immediately prior to the Effective Time. Each Company RSU Award assumed and converted into a Parent Restricted Stock Award pursuant to this <u>Section</u> <u>2.5</u> shall continue to have, and shall be subject to, the same terms and conditions (including with respect to vesting) as applied to the corresponding Company RSU Award as of immediately prior to the Effective Time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Without limiting <u>Section</u> <u>2.5(a)</u>, at or prior to the Effective Time, the Company, the Company Board and the Compensation Committee of the Company Board, as applicable (or appropriate committee with delegated authority therefrom), shall adopt any resolutions and take any actions that are necessary or appropriate to effectuate the provisions of this <u>Section</u> <u>2.5</u>. Parent shall take all actions necessary to register the shares subject to the Parent Restricted Stock Award under the Form S-4.

Section 2.6 <u>Post-Closing Payments.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Promptly following the determination of the portion of the Escrow Asset payable to the holders of shares of Parent Common Stock issued and outstanding immediately prior to the Effective Time, in accordance with Section 2.1 of the Three Party Agreement (if any) and the delivery of the written instruction to the Exchange Agent (as such term is defined in the Three Party Agreement) pursuant to Section 2.1(d)(i) of the Three Party Agreement, the Surviving Corporation and the Mesa Representative shall take such actions as may be required to effect the distribution of the remaining Escrow Asset, if any, to the holders of shares of Parent Common Stock issued and outstanding immediately prior to the Effective Time, based upon their respective Pro Rata Share, in accordance with the terms and provisions of the Three Party Agreement and the Escrow Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to <u>Section</u> <u>2.6(a)</u> hereof and the terms of the Escrow Agreement, the Escrow Agent shall issue any shares of Parent Common Stock payable from the Escrow Asset in book entry form. No fractional shares of Parent Common Stock shall be issued in accordance with <u>Section</u> <u>2.1(c)</u>, this <u>Section</u> <u>2.6</u> or the Three Party Agreement and, in lieu of any fractional shares payable to the holders of shares of Parent Common Stock issued and outstanding immediately prior to the Effective Time, each such holder shall be entitled to receive an amount in cash, without interest, as provided in Section 2.1(d)(ii) of the Three Party Agreement.

#### ARTICLE III
<u>REPRESENTATIONS AND WARRANTIES OF THE COMPANY</u>

Except as set forth in the disclosure schedule delivered by the Company to Parent concurrently with the execution and delivery of this Agreement (the "<u>Company Disclosure Schedule</u>") (with each exception set forth in the Company Disclosure Schedule being identified by reference to, or grouped under a heading referring to, a specific individual section or subsection of this Agreement and relating only to such section or subsection; <u>provided</u> that a matter disclosed with respect to one representation and warranty shall also be deemed to be disclosed with respect to each other representation and warranty to the extent that the relevance of such disclosure is reasonably apparent on the face of the disclosure contained in the Company Disclosure Schedule), the Company hereby represents and warrants to Parent as follows:

Section 3.1 <u>Organization and Qualification; Subsidiaries</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company is a corporation duly organized, validly existing and in good standing under the Laws of the State of Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company has all requisite corporate power and corporate authority to own, lease and operate its properties and assets and to carry on its business as it is now being conducted. The Company is duly qualified to do business and, to the extent such concept is applicable, is in good standing in each jurisdiction where the

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ownership, leasing or operation of its properties or assets or the conduct of its business requires such qualification, except where the failure to be so qualified or in good standing would not reasonably be expected to have a Company Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company has made available to Parent accurate and complete copies of the Second Amended and Restated Certificate of Incorporation of the Company (as amended, the "<u>Company Charter</u>") and Fourth Amended and Restated Bylaws of the Company (as amended, the "<u>Company Bylaws</u>"), each as in effect as of the date of this Agreement. The Company is not in violation of the Company Charter or the Company Bylaws in any material respect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) As of the date of this Agreement, <u>Section</u> <u>3.1(d)</u> of the Company Disclosure Schedule sets forth a true and complete list of each Subsidiary of the Company, including its name, type of entity and jurisdiction of its organization. Each such Subsidiary is a corporation or limited liability company, duly formed or organized, validly existing and, to the extent such concept is applicable, in good standing under the Laws of its jurisdiction of incorporation or organization. Each such Subsidiary has all requisite corporate or limited liability company power and authority to own, lease and operate its respective properties and assets and to carry on its respective businesses as they are now being conducted. Each such Subsidiary is duly qualified to do business and, to the extent such concept is applicable, in good standing in each jurisdiction where the ownership, leasing or operation of its properties or assets or the conduct of its business requires such qualification, except where the failure to be so qualified or in good standing would not reasonably be expected to have a Company Material Adverse Effect. Except as set forth in <u>Section</u> <u>3.1(d)</u> of the Company Disclosure Schedules, neither the Company nor any of its Subsidiaries owns or holds the right to acquire any stock, partnership interest or joint venture interest or other Equity Interest in any other Person.

Section 3.2 <u>Capitalization</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As of the date of this Agreement, the authorized capital stock of the Company consists of 1,100,000 shares of Company Common Stock, of which there were 1,002,645 shares issued and outstanding. As of the date of this Agreement, there were no shares of Company Common Stock held by the Company in its treasury. All of the outstanding shares of Company Common Stock have been duly authorized and validly issued and are fully paid, non-assessable and free of preemptive rights. As of the date of this Agreement, there are no Restricted Shares outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As of the date of this Agreement, no shares of capital stock of the Company were reserved for or otherwise subject to issuance, except for the remaining 96,626 authorized, unissued shares of Company Common Stock, in the aggregate, that may be issued (i) pursuant to Company Equity Awards and (ii) in satisfaction of warrants to purchase shares of Company Common Stock issued to Treasury.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) As of the date of this Agreement, except as described in <u>Section 3.2(b)</u>, there are no options, warrants, calls, conversion rights, stock appreciation rights, "phantom" equity rights, performance units, interests in or rights to the ownership or earnings of any member of the Company Group or any other equity equivalent or equity-based award or right, redemption rights, repurchase rights or other preemptive or outstanding rights, agreements, arrangements or commitments of any character obligating any member of the Company Group to issue, acquire or sell any shares of capital stock or other Equity Interests of any member of the Company Group or any securities obligations convertible or exchangeable into or exercisable for, or giving any Person a right to subscribe for or acquire, any securities of any member of the Company Group, and no securities or obligations evidencing such rights are authorized, issued or outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) There are no outstanding contractual obligations to which any member of the Company Group is a party (i) affecting the voting rights of, (ii) requiring the repurchase, redemption or disposition of, or containing any right of first refusal with respect to, (iii) requiring the registration for sale of, (iv) granting any preemptive or antidilutive rights with respect to, or (v) restricting the transfer of, any shares of capital stock of or other Equity Interests in any member of the Company Group.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Company or another member of the Company Group owns, directly or indirectly, all of the issued and outstanding shares of capital stock or other Equity Interests of each of the Subsidiaries of the Company, free and clear of any Liens (other than Permitted Liens), and all of such shares of capital stock or other Equity Interests have been duly authorized and validly issued and are fully paid, nonassessable and free of preemptive rights, in each case, in all material respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) (i) No dividends or similar distributions have accrued or been declared but are unpaid on the Company Capital Stock and (ii) the Company is not subject to any obligation (contingent or otherwise) to pay any dividend or otherwise to make any distribution or payment to any current or former holder of capital stock of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) There are no bonds, debentures, notes or other Indebtedness of any member of the Company Group having the right to vote (or convertible into, or exchangeable for, securities having the right to vote) on any matters on which holders of Company Common Stock may vote.

Section 3.3 <u>Authority; Required Vote</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company has all necessary corporate power and authority to execute and deliver this Agreement and the Three Party Agreement, to perform its obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby, including the Merger, subject to obtaining the Company Stockholder Approval. The execution and delivery of this Agreement and the Three Party Agreement by the Company and the consummation by the Company of the transactions contemplated hereby and thereby, including the Merger, have been duly authorized by all necessary corporate action, and no other corporate proceedings on the part of the Company and no stockholder votes or written consents in lieu thereof are necessary to authorize this Agreement or the Three Party Agreement or to consummate the transactions contemplated hereby or thereby, other than the Company Stockholder Approval and the filing of the Certificate of Merger with the Secretary of the State of Delaware. This Agreement and the Three Party Agreement have been duly and validly executed and delivered by the Company and, assuming due authorization, execution and delivery by Parent (in the case of this Agreement) and Parent and United (in the case of the Three Party Agreement), constitute the valid and binding obligation of the Company, enforceable against the Company in accordance with its terms except that (i) such enforcement may be subject to applicable bankruptcy, insolvency or other similar Laws, now or hereafter in effect, affecting creditors' rights generally and (ii) the remedy of specific performance and injunctive and other forms of equitable relief may be subject to equitable defenses and to the discretion of the court before which any Proceeding therefor may be brought (together, (i) and (ii), the "<u>Enforceability Exceptions</u>")<u>.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) At a meeting duly called and held prior to the execution and delivery of this Agreement, the Company Board adopted resolutions by which the Company Board unanimously (i) determined that this Agreement, the Merger and the other transactions contemplated by this Agreement and the Three Party Agreement are advisable, fair to and in the best interests of the Company and its stockholders, (ii) approved and declared advisable this Agreement, the Merger and the other transactions contemplated by this Agreement and the Three Party Agreement, in accordance with the requirements of the DGCL, (iii) directed that this Agreement be submitted to the stockholders of the Company entitled to vote thereon for adoption and approval and (iv) recommended that the stockholders of the Company vote their shares of Company Common Stock in favor of the adoption of this Agreement and approval of the Merger (the "<u>Company</u> <u>Recommendatio</u>n"), and, as of the date of this Agreement, none of such resolutions has been amended, rescinded or modified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The only vote of holders of any class or series of capital stock of <u>the Company</u> necessary to approve this Agreement and the Three Party Agreement and consummate the transactions contemplated hereby and thereby is the adoption of this Agreement and the approval of the Merger by the holders of at least two-thirds of the outstanding shares of Company Common Stock entitled to vote thereon (the "<u>Company Stockholder Approval</u>").

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Section 3.4 <u>No Conflict</u>. None of the execution, delivery or performance of this Agreement or the Three Party Agreement by the Company, the consummation by the Company of the Merger or any other transaction contemplated by this Agreement or the Three Party Agreement, or the Company's compliance with any of the provisions of this Agreement or the Three Party Agreement will (with or without notice or lapse of time, or both): (a) subject to obtaining the Company Stockholder Approval, conflict with or violate any provision of the Company Charter or the Company Bylaws; or (b) assuming that all consents, approvals, authorizations, confirmations, clearances, and permits described in Section 3.5 have been obtained, all applications, filings, notifications, reports, registrations, and submissions described in <u>Section 3.5</u> have been made and any waiting periods thereunder have terminated or expired, conflict with or violate any Law applicable to the Company or any Subsidiary of the Company or any of their respective properties or assets, except, with respect to clause (b), for any such conflicts, violations, consents, breaches, losses, defaults, terminations, other occurrences or Liens which would not reasonably be expected to have a Company Material Adverse Effect.

Section 3.5 <u>Required Filings and Consents</u>. None of the execution, delivery or performance of this Agreement or the Three Party Agreement by the Company, the consummation by the Company of the Merger or any other transaction contemplated by this Agreement or the Three Party Agreement, or the Company's compliance with any of the provisions of this Agreement or the Three Party Agreement will require (with or without notice or lapse of time, or both) any consent, approval, authorization or permit of, or filing or registration with or notification to, any Governmental Entity, other than (a) the filing of the Certificate of Merger as required by the DGCL, (b) compliance with any applicable requirements of the HSR Act and other applicable Competition Laws, (c) any application, filing, notice, report, registration, approval, permit, authorization, confirmation, clearance, consent or submission required to be made or obtained under Title 49 of the United States Code or under any regulation, rule, order, notice or policy of the U.S. Federal Aviation Administration (the "<u>FAA</u>"), the U.S. Department of Transportation (the "<u>DOT</u>"), the Federal Communications Commission (the "<u>FCC</u>") and the U.S. Department of Homeland Security (the "<u>DHS</u>"), including the U.S. Transportation Security Administration (the "<u>TSA</u>"), or any foreign Civil Aviation Authority ("<u>CAA</u>") (collectively, such statutes, regulations, rules, orders, notices or policies referred to in this clause (c) are referred to in this Agreement as the "<u>Specified Regulations</u>"), (d) compliance with the applicable requirements of the Exchange Act, (e) compliance with the applicable requirements of the Securities Act, (f) compliance with any applicable foreign or state securities or Blue Sky Laws, (g) filings with the SEC as may be required by the Company in connection with this Agreement and the transactions contemplated hereby, (h) such filings as may be required under the rules and regulations of NASDAQ, (i) the approval from, or the receipt from DOT of an exemption from 49 U.S.C. § 41105, pursuant to 49 U.S.C. § 40109, allowing Parent and Company to operate under common ownership pending DOT's action on an application by Parent and Company for approval of a de facto transfer of their international route authorities, and (l) such other consents, approvals, authorizations or permits of, or filings, registrations with or notifications to any Governmental Entity, including airport and terminal operators, which if not obtained or made would not reasonably be expected to have a Company Material Adverse Effect.

Section 3.6 <u>Permits; Compliance with Law</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each member of the Company Group holds all authorizations, permits, certificates, exemptions, waivers, approvals, orders, consents, franchises, variances, deviations, registrations, licenses, ratings, operations specifications, grants, directives and clearances of any Governmental Entity applicable to such member of the Company Group and necessary for it to own, lease and operate its assets and properties and to operate its business as currently conducted (the "<u>Company Permits</u>"), except where the failure to hold any Company Permits would not reasonably be expected to have a Company Material Adverse Effect. Each member of the Company Group is, and since January 1, 2022 has been, operating in compliance with the terms of such Company Permits, except where the failure to be in compliance with such Company Permits would not reasonably be expected to have a Company Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as would not reasonably be expected to have a Company Material Adverse Effect, (i) no member of the Company Group is in conflict with, in default under or violation of, being investigated for, or

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being charged by any Governmental Entity with a violation of, any Law, Company Permits, operating certificates, grants, insurance and bond requirements, reporting requirements, training requirements, certificates of public convenience and necessity, exemptions, air carrier obligations, airworthiness directives, Federal Aviation Regulations or any other rules, regulations, directives, orders and policies of the FAA, the DOT, the DHS, the FCC, the TSA, foreign CAA or any other Governmental Entity or airport authority applicable to any member of the Company Group or by which any property or asset of any member of the Company Group is or was bound, (ii) there is no investigation or review pending, or to the Knowledge of the Company, threatened in writing by any Governmental Entity with respect to any member of the Company Group that challenges or questions the validity of any rights of the holder under the Company Permits or that alleges the existence of any violation of any Company Permit, (iii) since January 1, 2022, each member of the Company Group has timely filed all submissions, reports, registrations, schedules, forms, notices, statements, disclosures and other documents, together with any amendments required to be made with respect thereto, that they were required to file with the FAA, the DOT, the DHS, the FCC, the TSA, foreign CAA, any other Governmental Entity or any airport authority, and in each case has paid all fees and assessments due and payable in connection therewith, and (iv) neither the DOT nor the FAA nor any other Governmental Entity or any airport authority, including terminal operators, has taken any action or, to the Knowledge of the Company, threatened in writing to take any action to amend, modify, suspend, revoke, terminate, cancel, withdraw, or otherwise materially affect any Company Permit. No member of the Company Group has received any written notice or communication of any material noncompliance with any such Laws that has not been cured as of the date of this Agreement.

Section 3.7 <u>Financial Statements; No Undisclosed Liabilities</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) True, correct and complete copies of the audited consolidated financial statements consisting of the balance sheets and related statements of income, cash flows and stockholders' equity of the Company as of and for the fiscal years ended December 31, 2022, 2023 and 2024 (including any related notes thereto and the related reports of the independent public accountants) (collectively, the "<u>Company Financial Statements</u>") are set forth in Section 3.7 of the Company Disclosure Schedule. The Company Financial Statements are based on the books and records of the Company and its Subsidiaries and fairly present in all material respects the consolidated financial condition of the Company and its Subsidiaries as of the dates indicated therein and the results of the operations of the Company and its Subsidiaries for the periods covered thereby. Each of the Company Financial Statements has been prepared in accordance with GAAP applied on a consistent basis throughout the periods covered thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except for those liabilities and obligations (a) as reflected in, reserved against or disclosed in the Company Financial Statements, (b) incurred in the ordinary course of business since the date of the most recent consolidated balance sheet of the Company included in the Company Financial Statements or (c) incurred under this Agreement or in connection with the transactions contemplated hereby, the Company Group has no liabilities or obligations of any nature (whether absolute or contingent, asserted or unasserted, known or unknown, primary or secondary, direct or indirect, and whether or not accrued) of a type required to be reflected on a consolidated balance sheet of the Company and its consolidated Subsidiaries (or in the notes thereto) prepared in accordance with GAAP, other than those that would not reasonably be expected to have a Company Material Adverse Effect.

Section 3.8 <u>State Takeover Laws; No Rights Agreements</u>. No "fair price," "moratorium," "control share acquisition" or other anti-takeover Law (each, a "<u>Takeover Law</u>") will apply with respect to or as a result of the execution of this Agreement or the consummation of the Merger or the other transactions contemplated hereby. The Company has opted out of Section 203 of the DGCL. There is no stockholder rights agreement, "poison pill" or similar antitakeover agreement or plan in effect to which the Company is a party or is otherwise bound.

Section 3.9 <u>Absence of Certain Changes or Events</u>. Since December 31, 2023 and through the date of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Company Group has conducted its business only in the ordinary course of business; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) there has not occurred any Company Material Adverse Effect.

Section 3.10 <u>Litigation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As of the date of this Agreement, except as would not reasonably be expected to have a Company Material Adverse Effect, there is no Proceeding pending or, to the Knowledge of the Company, threatened in writing against any member the Company Group, any property or assets of the Company Group, or any of their respective officers, directors or employees in such individual's capacity as such.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As of the date of this Agreement, no member of the Company Group is subject to any outstanding order, writ, injunction, judgment, award, civil penalty, decree, ruling, determination, stipulation, subpoena, or verdict entered, issued, made or rendered by any arbitrator or any Governmental Entity (each, an "<u>Order</u>") (other than those of general applicability) that would reasonably be expected to be material to the Company Group, taken as a whole.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) There has not been since January 1, 2022 any material internal investigations or inquiries conducted by Company, the Company Board (or any committee thereof), any compliance officer of Company or any third party at the request of any of the foregoing concerning any financial, accounting, conflict of interest, illegal activity or other fraudulent issues.

Section 3.11 <u>Tax Matters.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each member of the Company Group has timely filed (taking into account any automatic or properly obtained extension of time within which to file) all income and other material Tax Returns required to have been filed by or with respect to the Company Group, and all such Tax Returns are true, complete and accurate in all material respects. No written claim has been made in the past six (6) years in writing by a Governmental Entity in a jurisdiction where a member of the Company Group does not file Tax Returns that such member of the Company Group is or may be subject to Taxes in such jurisdiction. No member of the Company Group has a permanent establishment in any country other than the country of its organization, or has been, subject to income Tax in a jurisdiction outside the country of its organization, in each case, where it is required to file a material income Tax Return and does not file such Tax Return.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All material Taxes of the Company Group due and payable (whether or not shown on any Tax Return) have been timely paid. The Company Group has made adequate provision for all Taxes of the Company Group not yet due and payable on the Company Financial Statements as of the date of the Company Financial Statements. Since the date of the Company Financial Statements, any Taxes of the Company Group have been accrued on the books and records of the Company in accordance with GAAP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) [*Intentionally Omitted*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No deficiencies for any material amount of Taxes have been proposed or assessed in writing against any member of the Company Group by any Governmental Entity, except for deficiencies being contested in good faith by appropriate proceedings. No member of the Company Group (i) is the subject of any currently pending or ongoing material Tax audit or other administrative or judicial Proceeding with respect to Taxes or (ii) has waived any statute of 21 limitations in respect of any Taxes or agreed to any extension of time with respect to a Tax assessment or deficiency, which waiver or extension is currently in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) No member of the Company Group is a party to, or has any obligation or liability under, any agreement or arrangement for the sharing, reimbursement, indemnification or allocation of any Taxes, including any tax receivable agreement or similar agreement (other than customary provisions for Taxes contained in credit, lease or other commercial agreements entered into in the ordinary course of business the primary purposes of which do not relate to Taxes). (f) Each member of the Company Group has withheld and, to the extent

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required by Law, paid to the appropriate Governmental Entity all material Taxes required to have been withheld and paid in connection with amounts paid or owing to any employee, independent contractor, creditor, stockholder or other third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Each member of the Company Group has collected all material sales, value-added and use Taxes required to be collected, and has remitted, or will remit on a timely basis, such amounts to the appropriate Governmental Entity (or has been furnished properly completed exemption certificates with respect to any such Taxes and has complied in all material respects with applicable sales and use Tax statutes and regulations requiring the maintenance of records and supporting documents).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The Company is not and has not in the last five years been a "United States real property holding corporation" within the meaning of Section 897 of the Code and equity interests in the Company are not "United States real property interests" within the meaning of Sections 897 and 1445 of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No member of the Company Group has taken any action, and no member of the Company Group is aware of any fact or circumstance, that could reasonably be expected to prevent the Merger from qualifying as a "reorganization" within the meaning of Section 368(a) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) No member of the Company Group "participates" or has "participated" in any "listed transaction" within the meaning of Treasury Regulations Section 1.6011-4(b) or any similar provision of applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Other than Permitted Liens, there are no Liens with respect to Taxes upon any assets of the Company Group.

Section 3.12 <u>Brokers</u>. No member of the Company Group nor any stockholder, director, officer, employee or Affiliate of any member of the Company Group has incurred on behalf of the Company Group or will incur on behalf of the Company Group any brokerage, finders', financial advisory or similar fee in connection with the transactions contemplated by this Agreement, including the Merger.

Section 3.13 <u>[</u>*Intentionally Omitted*<u>]</u>.

Section 3.14 <u>Employee Benefit Plans</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as would not reasonably be expected to result in material liability to the Company Group, each Company Benefit Plan (and any related trust or other funding vehicle) has been established, maintained and administered in accordance with its terms and is in compliance with ERISA, the Code and all other applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Company Benefit Plan that is intended to be qualified under Section 401(a) of the Code has timely received or applied for a favorable determination letter or is entitled to rely on a favorable opinion letter from the IRS, in either case, that has not been revoked and, to the Knowledge of Company, no event or circumstance exists that has materially and adversely affected or would reasonably be expected to materially and adversely affect such qualification or exemption.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No action, suit or claim (excluding claims for benefits incurred in the ordinary course) has been brought or is pending or threatened in writing against or with respect to any Company Benefit Plan or the assets or thereof that would result in material liability to the Company Group.

Section 3.15 <u>Environmental Matters.</u> 

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as would not reasonably be expected to be material to the Company Group, taken as a whole:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) each member of the Company Group is, and since January 1, 2022, has been, in compliance with all applicable Environmental Laws, and the Company Group has obtained, has made timely and complete application for any required renewal of, and is, and since January 1, 2022 has been, in compliance with, all Environmental Permits necessary for the conduct and operation of the business of the Company Group;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) there are not now, and since January 1, 2022, there have not been, any Hazardous Substances Released or otherwise existing on, under, about, or emanating from or to, any property currently, or to the Knowledge of Company, formerly, owned, leased or operated by the Company Group, except as would not result in liability under, any applicable Environmental Laws, including any obligation to conduct site investigation or remediation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) since January 1, 2022, or prior to that date if the matter remains unresolved, no member of the Company Group has received any notice of alleged liability for, or any Proceeding, Order or inquiry regarding, any Release or threatened Release of Hazardous Substances or alleged violation of, or non-compliance with, any Environmental Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company has made available to Parent prior to the date of this Agreement copies of any material environmental reports, studies, assessments, and other material environmental information, in its possession or reasonable control relating to the Company Group and its current or former properties, assets or operations.

Section 3.16 <u>Data Privacy and Security Matters.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Since January 1, 2022, each member of the Company Group complies and at all times has complied with (i) the written, external privacy policies and external representations of the Company regarding the Processing of Personal Information, (ii) written contractual obligations governing the treatment and Processing of Personal Information by the Company Group, (iii) applicable industry standards legally binding on the Company Group (including, to the extent applicable, the PCI DSS), (iv) registration requirements with any applicable Governmental Entity for the Processing of Personal Information by Company Group and (v) all Privacy Laws (collectively, the "<u>Company Data Privacy Requirements</u>"), in each case with respect to clauses (i) through (v), except where noncompliance would not reasonably be expected to be material to the Company Group, taken as a whole. Except as would not reasonably be expected to be material to the Company Group, taken as a whole: (i) each member of the Company Group has, since January 1, 2022, at all times presented a privacy policy or other privacy-related notices (such as notice of financial incentives) to individuals and obtained prior express consent prior to the collection of any Personal Information, in each case, to the extent required of the Company Group by Company Data Privacy Requirements, and (ii) such privacy policies, notices, and consents: (a) are sufficient under applicable Company Data Privacy Requirements to permit the Processing of Personal Information by such member of the Company Group as currently Processed by or for each member of the Company Group and (b) have, since January 1, 2022, at all times been materially accurate and complete, and not materially misleading or deceptive (including by any material omission).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The execution, delivery, and performance of this Agreement and the transactions contemplated by this Agreement do not and will not: (i) conflict with or result in a violation or breach of any Company Data Privacy Requirements or (ii) require the consent of or provision of notice to any Person concerning such Person's Personal Information, in each case except for any such conflicts, violations, consents, notices, prohibitions, or other occurrences which would not reasonably be expected to have a Company Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Since January 1, 2022, there has been no accidental, unlawful, or unauthorized Processing of Personal Information in the possession or control of the Company Group ("<u>Company PII Security Incident</u>"),

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except as would not reasonably be expected to be material to the Company Group, taken as a whole. Each member of the Company Group has taken commercially reasonable steps and implemented and maintained commercially reasonable measures designed to (i) monitor, detect, prevent, mitigate, and remediate Company PII Security Incidents, (ii) identify and address internal and external material risks to the privacy and security of Personal Information in its possession or control, and (iii) protect such Personal Information and the software, systems, applications, and websites owned and operated by the Company Group that are involved in the Processing of Personal Information. Except as would not reasonably be expected to be material to the Company Group, taken as a whole: (i) Company requires all third parties that Process Personal Information on its behalf to enter into written contracts to provide security and privacy protections for such Personal Information consistent with Privacy Laws, and (ii) to the Knowledge of Company, such third parties are not in breach of such Contracts with respect to such Personal Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Since January 1, 2022, no member of the Company Group: (i) has been notified in writing that it is the subject of any inquiry, investigation, or enforcement action by any Governmental Entity with respect to such member's compliance with any Privacy Law or its Processing of Personal Information, (ii) is party to any Proceeding alleging or investigating a Company PII Security Incident or a violation (A) of any Company Data Privacy Requirement or (B) relating to Company's Processing of Personal Information, or (iii) received a written claim by or before any Governmental Entity alleging a violation of (A) Company Data Privacy Requirements or (B) relating to the Company's Processing of Personal Information, in each case with respect to clauses (i) through (iii), except as would not reasonably be expected to be material to the Company Group, taken as a whole.

Section 3.17 <u>Insurance</u>. The Company Group maintains insurance coverage with reputable and financially sound insurers, or maintains self-insurance practices, in such amounts and covering such risks (the "<u>Company Insurance Policies</u>") as are in accordance with customary industry practice for companies engaged in businesses similar to that of the Company Group and which comply in all material respects with the requirements of Law and Contracts to which the Company Group is a party (including any lease for personal or real property). Except as would not reasonably be expected to be material to the Company Group, taken as a whole, each of the Company Insurance Policies is in full force and effect, all premiums due and payable thereon have been paid and the Company Group is in compliance with the terms and conditions of such Company Insurance Policies. Since January 1, 2022, the Company Group has not received any written notice regarding any invalidation or cancellation of any material Company Insurance Policy.

Section 3.18 <u>Properties and Assets</u>. Except as would not reasonably be expected to be material to the Company Group, taken as a whole, (a) the Company Group has valid and subsisting ownership interests in all of the real property and tangible personal property reflected in the latest balance sheet included in the Company Financial Statements prior to the date of this Agreement as being owned by the Company Group or acquired after the date thereof (except tangible personal properties sold or otherwise disposed of since the date thereof in the ordinary course of business), free and clear of all Liens, other than Permitted Liens and (b) the tangible personal property owned by the Company Group is in satisfactory operating condition and repair for its continued use as it has been used in all material respects, subject to reasonable wear and tear.

Section 3.19 <u>[</u>*Intentionally Omitted*].

Section 3.20 <u>Information Supplied</u>. None of the information supplied or to be supplied by the Company specifically for inclusion or incorporation by reference in (i) the Form S-4 will, at the time the Form S-4 is filed with the SEC, at any time it is amended or supplemented or at the time it becomes effective under the Securities Act, contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements therein not misleading or (ii) the Proxy Statement will, at the date it is first mailed to Parent's stockholders or at the time of the Parent Stockholder Meeting, contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they are made, not misleading. The Form

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S-4 and the Proxy Statement will comply as to form in all material respects with the requirements of the Securities Act and the Exchange Act and the rules and regulations thereunder, except that no representation or warranty is made by the Company with respect to statements made or incorporated by reference therein based on or derived from information supplied by Parent specifically for inclusion or incorporation by reference in the Form S-4 or the Joint Proxy Statement.

Section 3.21 <u>Non-Reliance</u>. Except for the representations and warranties expressly contained in <u>Article IV</u>, the Company acknowledges that neither Parent nor any other Person on behalf of Parent makes, and the Company acknowledges that it has not relied upon or otherwise been induced by, any express or implied representation or warranty by or on behalf of Parent or with respect to any other information provided or made available to the Company or its Representatives by or on behalf of Parent in connection with the transactions contemplated by this Agreement, including any information, documents, projections, forecasts or other material made available to the Company or its Representatives in data rooms, management presentations or similar information deliverables in expectation of the transactions contemplated by this Agreement<u>.</u>

Section 3.22 <u>No Other Representations and Warranties</u>. Except for the representations and warranties expressly contained in this <u>Article III</u>, neither the Company nor any other Person on behalf of the Company makes or has made any express or implied representation or warranty with respect to the Company or with respect to any other information provided or made available to Parent or its Representatives, including any information, documents, projections, forecasts or other material made available to Parent or its Representatives in certain data rooms or management presentations in expectation of, or in connection with, the transactions contemplated by this Agreement, or the accuracy or completeness of any of the foregoing other than the representations and warranties contained in this <u>Article III</u>.

#### ARTICLE IV
<u>REPRESENTATIONS AND WARRANTIES OF PARENT</u>

Except as set forth in (i) the Parent SEC Documents that are publicly available on the SEC's Electronic Data Gathering Analysis and Retrieval System ("<u>EDGAR</u>") prior to the date of this Agreement (but (A) without giving effect to any amendment thereof filed with the SEC on or after the date of this Agreement and (B) excluding any disclosure contained in such Parent SEC Documents under the heading "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" or sections of such reports and other disclosures that are similarly predictive, cautionary or forward-looking in nature) or (ii) the disclosure schedule delivered by Parent to the Company concurrently with the execution and delivery of this Agreement (the "<u>Parent Disclosure Schedule</u>") (with each exception set forth in the Parent Disclosure Schedule being identified by reference to, or grouped under a heading referring to, a specific individual section or subsection of this Agreement and relating only to such section or subsection; <u>provided</u> that a matter disclosed with respect to one representation and warranty shall also be deemed to be disclosed with respect to each other representation and warranty to the extent that the relevance of such disclosure is reasonably apparent on the face of the disclosure contained in the Parent Disclosure Schedule), Parent hereby represents and warrants to the Company as follows:

Section 4.1 <u>Organization and Qualification; Subsidiaries</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Parent is a corporation duly organized, validly existing and in good standing under the Laws of the State of Nevada.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Parent has all requisite corporate power and corporate authority to own, lease and operate its properties and assets and to carry on its business as it is now being conducted. Parent is duly qualified to do business and, to the extent such concept is applicable, is in good standing in each jurisdiction where the ownership, leasing or operation of its properties or assets or the conduct of its business requires such qualification, except where the failure to be so qualified or in good standing would not reasonably be expected to have a Parent Material Adverse Effect.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Parent has made available to the Company accurate and complete copies of the Second Amended and Restated Articles of Incorporation of Parent (as amended, the "<u>Parent Charter</u>") and Second Amended and Restated Bylaws of Parent (as amended, the "<u>Parent Bylaws</u>"), each as in effect as of the date of this Agreement. Parent is not in violation of the Parent Charter or the Parent Bylaws in any material respect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) As of the date of this Agreement, <u>Section</u> <u>4.1(d)</u> of the Parent Disclosure Schedule sets forth a true and complete list of each Subsidiary of Parent, including its name, type of entity and jurisdiction of its organization. Each such Subsidiary is a corporation or limited liability company, duly formed or organized, validly existing and, to the extent such concept is applicable, in good standing under the Laws of its jurisdiction of incorporation or organization. Each such Subsidiary has all requisite corporate or limited liability company power and authority to own, lease and operate its respective properties and assets and to carry on its respective businesses as they are now being conducted. Each such Subsidiary is duly qualified to do business in each jurisdiction where the ownership, leasing or operation of its properties or assets or the conduct of its business requires such qualification, except where the failure to be so qualified or in good standing would not reasonably be expected to have a Parent Material Adverse Effect. Except as set forth in <u>Section</u> <u>4.1(d)</u> of the Parent Disclosure Schedules, neither Parent nor any of its Subsidiaries owns or holds the right to acquire any stock, partnership interest or joint venture interest or other Equity Interest in any other Person.

Section 4.2 <u>Capitalization</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As of the date of this Agreement, the authorized capital stock of Parent consists of (i) 125,000,000 shares of Parent Common Stock, of which there were 41,334,433 shares issued and outstanding, and (ii) 5,000,000 shares of Preferred Stock, no par value, of which no shares were issued and outstanding. As of the date of this Agreement, there were no shares of Parent Common Stock held by Parent in its treasury. All of the outstanding shares of Parent Common Stock have been duly authorized and validly issued and are fully paid, non-assessable and free of preemptive rights. As of the date of this Agreement, there are no Restricted Shares outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As of the date of this Agreement, no shares of capital stock of Parent were reserved for or otherwise subject to issuance, except for warrants to purchase an aggregate of 4,899,497 shares of Parent Common Stock issued to Treasury and shares of Parent Common Stock subject to the equity awards as set forth in <u>Section</u> <u>4.2(b)</u> of the Parent Disclosure Schedule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) As of the date of this Agreement, except as described in <u>Section 4.2(b)</u>, there are no options, warrants, calls, conversion rights, stock appreciation rights, "phantom" equity rights, performance units, interests in or rights to the ownership or earnings of any member of the Parent Group or any other equity equivalent or equity-based award or right, redemption rights, repurchase rights or other preemptive or outstanding rights, agreements, arrangements or commitments of any character obligating any member of the Parent Group to issue, acquire or sell any shares of capital stock or other Equity Interests of any member of the Parent Group or any securities obligations convertible or exchangeable into or exercisable for, or giving any Person a right to subscribe for or acquire, any securities of any member of the Parent Group, and no securities or obligations evidencing such rights are authorized, issued or outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Except as set forth in <u>Section 4.2(d)</u> of the Parent Disclosure Schedule, there are no outstanding contractual obligations to which any member of the Parent Group is a party (i) affecting the voting rights of, (ii) requiring the repurchase, redemption or disposition of, or containing any right of first refusal with respect to, (iii) requiring the registration for sale of, (iv) granting any preemptive or antidilutive rights with respect to, or (v) restricting the transfer of, any shares of capital stock of or other Equity Interests in any member of the Parent Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Parent or another member of the Parent Group owns, directly or indirectly, all of the issued and outstanding shares of capital stock or other Equity Interests of each of the Subsidiaries of Parent, free and clear of

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any Liens (other than Permitted Liens), and all of such shares of capital stock or other Equity Interests have been duly authorized and validly issued and are fully paid, nonassessable and free of preemptive rights, in each case, in all material respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) (i) No dividends or similar distributions have accrued or been declared but are unpaid on Parent's capital stock and (ii) Parent is not subject to any obligation (contingent or otherwise) to pay any dividend or otherwise to make any distribution or payment to any current or former holder of capital stock of Parent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) There are no bonds, debentures, notes or other Indebtedness of any member of the Parent Group having the right to vote (or convertible into, or exchangeable for, securities having the right to vote) on any matters on which holders of Parent Common Stock may vote.

Section 4.3 <u>Authority; Required Votes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Parent has all necessary corporate power and authority to execute and deliver this Agreement and the Three Party Agreement, to perform its obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby, including, subject to obtaining the Parent Stockholder Approval, as applicable, the Conversion, the Merger and the Primary Issuance. The execution and delivery of this Agreement and the Three Party Agreement by Parent and the consummation by Parent of the transactions contemplated hereby and thereby, including the Conversion, the Merger and the Primary Issuance, have been duly authorized by all necessary corporate action, and no other corporate proceedings on the part of Parent and no stockholder votes or written consents in lieu thereof are necessary to authorize this Agreement or the Three Party Agreement or to consummate the transactions contemplated hereby or thereby, other than the Parent Stockholder Approval, the filing of the Articles of Conversion with the Secretary of the State of Nevada, the filing of the Certificate of Conversion and Certificate of Merger with the Secretary of State of the State of Delaware and the third party consent set forth in <u>Schedule 4.3(a)</u> of the Parent Disclosure Schedule. This Agreement and the Three Party Agreement each has been duly and validly executed and delivered by Parent and, assuming due authorization, execution and delivery by the Company (in the case of this Agreement) and the Company and United (in the case of the Three Party Agreement), constitutes the valid and binding obligation of Parent, enforceable against Parent in accordance with its terms, subject to the Enforceability Exceptions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) At a meeting duly called and held prior to the execution and delivery of this Agreement, the Parent Board adopted resolutions by which the Parent Board unanimously (i) determined that this Agreement, the Plan of Conversion, the Conversion, the Merger, the Primary Issuance and the other transactions contemplated by this Agreement and the Three Party Agreement are advisable, fair to and in the best interests of Parent and its stockholders, (ii) adopted, approved and declared advisable this Agreement, the Plan of Conversion, the Conversion, the Merger, the Primary Issuance and the other transactions contemplated by this Agreement and the Three Party Agreement, in accordance with the requirements of the NRS, (iii) directed that this Agreement, the Plan of Conversion, the Conversion and the Merger be submitted to the stockholders of Parent for adoption and approval and (iv) recommended that the stockholders of Parent vote their shares of Parent Common Stock in favor of the Parent Stockholder Approval (the "<u>Parent Recommendation</u>"), and, as of the date of this Agreement, none of such resolutions has been amended, rescinded or modified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The only votes of holders of any class or series of capital stock of Parent necessary to approve this Agreement and the Three Party Agreement and consummate the transactions contemplated hereby and thereby are (i) the approval of this Agreement and the Plan of Conversion and the approval of the Conversion and the Merger by the holders of a majority of the outstanding shares of Parent Common Stock entitled to vote thereon at the Parent Stockholder Meeting, (ii) the approval by the holders of a majority the voting power of the Parent of an amendment to the Parent Charter to increase the authorized shares of Parent Common Stock or the approval by the holders of a majority of the outstanding shares of Parent Common Stock entitled to vote thereon at the Parent Stockholder Meeting of a reverse split of the number of outstanding shares of Parent Common Stock immediately prior to the Closing, both to enable Parent to issue the shares of Parent Common Stock in the

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Merger or as otherwise required pursuant to this Agreement (or, if permissible under applicable Law, providing sufficient authorized capital in the post Conversion Parent Charter in lieu of such shareholder approval), (iii) the approval of the issuance of shares of Parent Common Stock in the Merger and the Primary Issuance by the holders of a majority of the votes cast at the Parent Stockholder Meeting (collectively, the "<u>Parent Stockholder Approval</u>"), and (iv) the third party approval set forth in Schedule 4.3(a) of the Parent Disclosure Schedule.

Section 4.4 <u>No Conflict</u>. Except as set forth in <u>Schedule 4.4</u> of the Parent Disclosure Schedule, none of the execution, delivery or performance of this Agreement or the Three Party Agreement by Parent, the consummation by Parent of the Conversion, Merger, the Primary Issuance or any other transaction contemplated by this Agreement or the Three Party Agreement, or Parent's compliance with any of the provisions of this Agreement or the Three Party Agreement will (with or without notice or lapse of time, or both): (a) subject to obtaining the Parent Stockholder Approval, conflict with or violate any provision of the Parent Charter or Parent Bylaws (or, following the Conversion, the Post-Conversion Parent Charter or Post-Conversion Parent Bylaws); (b) assuming that all consents, approvals, authorizations, confirmations, clearances, and permits described in <u>Section 4.5</u> have been obtained, all applications, filings, notifications, reports, registrations, and submissions described in <u>Section 4.5</u> have been made and any waiting periods thereunder have terminated or expired, conflict with or violate any Law applicable to Parent or any Subsidiary of Parent or any of their respective properties or assets; or (c) require any consent or approval under, violate, conflict with, result in any breach of or any loss of any benefit under, or constitute a default under, or result in termination or give to others any right of termination, amendment, acceleration or cancellation of, or result in the creation of a Lien (other than a Permitted Lien) upon any of the respective properties or assets of the Parent Group pursuant to, any Parent Material Contract, except, with respect to clauses (b) and (c), for any such conflicts, violations, consents, breaches, losses, defaults, terminations, other occurrences or Liens which would not reasonably be expected to have a Parent Material Adverse Effect.

Section 4.5 <u>Required Filings and Consents</u>. None of the execution, delivery or performance of this Agreement or the Three Party Agreement by Parent, the consummation by Parent of the Conversion, the Merger, the Primary Issuance or any other transaction contemplated by this Agreement or the Three Party Agreement, or Parent's compliance with any of the provisions of this Agreement or the Three Party Agreement will require (with or without notice or lapse of time, or both) any consent, approval, authorization or permit of, or filing or registration with or notification to, any Governmental Entity, other than (a) the filing of the Articles of Conversion as required by the NRS, (b) the filing of the Certificate of Conversion as required by the DGCL, (c) the filing of the Certificate of Merger as required by the DGCL, (d) compliance with any applicable requirements of the HSR Act and other applicable Competition Laws, (e) any application, filing, notice, report, registration, approval, permit, authorization, confirmation, clearance, consent or submission required to be made or obtained under the Specified Regulations, (f) compliance with the applicable requirements of the Exchange Act, (g) compliance with the applicable requirements of the Securities Act, (h) compliance with any applicable foreign or state securities or Blue Sky Laws, (i) filings with the SEC as may be required by Parent in connection with this Agreement and the Three Party Agreement and the transactions contemplated hereby and thereby, including (1) a proxy statement relating to the Parent Stockholder Meeting (such proxy statement, as amended or supplemented from time to time, the "<u>Proxy Statement</u>") and (2) the registration statement on Form S-4 in connection with the issuance of shares of Parent Common Stock in the Merger, of which the Proxy Statement will form a part (the "<u>Form S-4</u>"), (j) such filings as may be required under the rules and regulations of NASDAQ and (k) such other consents, approvals, authorizations or permits of, or filings, registrations with or notifications to any Governmental Entity, including airport and terminal operators ("<u>Other Consents</u>"), which Other Consents, if not obtained or made, would not reasonably be expected to have a Parent Material Adverse Effect.

Section 4.6 <u>Permits; Compliance with Law</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each member of the Parent Group holds all authorizations, permits, certificates, exemptions, waivers, approvals, orders, consents, franchises, variances, deviations, registrations, licenses, ratings, operations

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specifications, grants, directives, exemptions and clearances of any Governmental Entity applicable to such member of the Parent Group and necessary for it to own, lease and operate its assets and properties and to operate its business as currently conducted (the "<u>Parent Permits</u>"), except where the failure to hold any Parent Permits would not reasonably be expected to have a Parent Material Adverse Effect. Each member of the Parent Group is, and since January 1, 2022 has been, operating in compliance with the terms of such Parent Permits, except where the failure to be in compliance with such Parent Permits would not reasonably be expected to have a Parent Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as would not reasonably be expected to have a Parent Material Adverse Effect or as otherwise set forth in <u>Schedule 4.6</u> of the Parent Disclosure Schedule, (i) no member of the Parent Group is in conflict with, in default under or violation of, being investigated for, or being charged by any Governmental Entity with a violation of, any Law, Parent Permits, operating certificates, grants, insurance and bond requirements, reporting requirements, training requirements, certificates of public convenience and necessity, exemptions, air carrier obligations, airworthiness directives, Federal Aviation Regulations or any other rules, regulations, directives, orders and policies of the FAA, the DOT, the DHS, the FCC, the TSA, foreign CAA or any other Governmental Entity or airport authority applicable to any member of the Parent Group or by which any property or asset of any member of the Parent Group is or was bound ("<u>Applicable Requirements</u>"), (ii) there is no investigation or review pending, or to the Knowledge of Parent, threatened in writing by any Governmental Entity with respect to any member of the Parent Group that challenges or questions the validity of any rights of the holder under the Parent Permits or that alleges the existence of any violation of any Parent Permit, (iii) since January 1, 2022, each member of the Parent Group has timely filed all submissions, reports, registrations, schedules, forms, notices, statements, disclosures and other documents, together with any amendments required to be made with respect thereto, that they were required to file with the FAA, the DOT, the DHS, the FCC, the TSA, foreign CAA, any other Governmental Entity or any airport authority, and in each case has paid all fees and assessments due and payable in connection therewith, and (iv) neither the DOT nor the FAA nor any other Governmental Entity or any airport authority has taken any action or, to the Knowledge of Parent, threatened in writing to take any action to amend, modify, suspend, revoke, terminate, cancel, withdraw, or otherwise materially affect any Parent Permit. No member of the Parent Group has received any written notice or communication of any material noncompliance with any Applicable Requirements that has not been cured as of the date of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each member of the Parent Group, and each of their respective directors, officers, managing members, employees, and, to the Knowledge of Parent, their respective agents, representatives, or other Persons acting on behalf of any member of the Parent Group, are, and have been for the past five (5) years, in compliance with the anti-bribery and anti-corruption Laws of each jurisdiction in which each member of the Parent Group operates or has operated, including the U.S. Foreign Corrupt Practices Act of 1977, as amended (collectively, "<u>Parent Anti-Corruption Laws</u>"). In the past five (5) years, no member of the Parent Group, nor any of their respective directors or officers, employees, nor, to the Knowledge of Parent, their respective agents, representatives or other Persons acting on behalf of any member of the Parent Group, has paid, given, offered or promised to pay, authorized the payment or transfer, any monies or anything of value, directly or indirectly, to any Government Official or any other Person for the purpose of corruptly influencing any act or decision of such Government Official, any Governmental Entity, or any other Person, to improperly obtain or retain business, to improperly direct business to any Person, or to secure any other improper benefit or advantage. In the past five (5) years, there have been no false or fictitious entries made in the books or records of any member of the Parent Group relating to any illegal payment or secret or unrecorded fund and no member of the Parent Group has established or maintained a secret or unrecorded fund. Each member of the Parent Group has implemented and maintains in effect policies, procedures, and internal controls reasonably designed to promote compliance by each member of the Parent Group, and their respective directors, officers, employees, agents, representatives, and other Persons acting on behalf of any member of the Parent Group with all applicable Parent Anti-Corruption Laws. To the Knowledge of Parent, no member of the Parent Group is, or in the past five (5) years has been, subject to any Proceeding or other inquiry, or made any disclosures to any Governmental Entity related to any applicable Parent Anti-Corruption Laws.

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Section 4.7 <u>SEC Reports; Financial Statements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as otherwise set forth in <u>Section 4.7</u> of the Parent Disclosure Schedule, since January 1, 2022, Parent has timely filed or otherwise furnished (as applicable) all registration statements, prospectuses, forms, reports, certifications, statements and other documents required to be filed or furnished by it under the Securities Act or the Exchange Act, as the case may be, together with all certifications required pursuant to the Sarbanes-Oxley Act (such documents and any other documents filed by Parent with the SEC, as have been supplemented, modified or amended since the time of filing, collectively, the "<u>Parent SEC Documents</u>"). As of their respective effective dates (in the case of the Parent SEC Documents that are registration statements filed pursuant to the requirements of the Securities Act) and as of their respective SEC filing dates (in the case of all other Parent SEC Documents), or in each case, if amended, as of the date of the last such amendment, the Parent SEC Documents (i) did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading and (ii) complied in all material respects with the applicable requirements of the Exchange Act or the Securities Act, as the case may be, the Sarbanes-Oxley Act and the applicable rules and regulations of the SEC promulgated under the foregoing Laws. All of the audited financial statements and unaudited interim financial statements of Parent included in or incorporated by reference into the Parent SEC Documents, including the related notes and schedules (collectively with the Draft 2024 Financial Statements, the Final 2024 Financial Statements once filed with the SEC, the Draft 2025 Q1 Financial Statements and the Final 2025 Q1 Financial Statements once filed with the SEC, the "<u>Parent Financial Statements</u>"), (A) have been prepared in all material respects in accordance with GAAP applied on a consistent basis during the periods involved (except as may be indicated in the notes thereto or, in the case of interim financial statements, for normal and recurring year-end adjustments which will not be material), (B) comply as to form in all material respects with the applicable accounting requirements and the published rules and regulations of the SEC with respect thereto and (C) fairly present in all material respects the financial position and the results of operations, cash flows and changes in stockholders' equity of Parent as of the dates and for the periods referred to therein (except as may be indicated in the notes thereto or, in the case of interim financial statements, for normal and recurring year-end adjustments which will not be material). Since January 1, 2022, Parent has not made any change in the accounting practices or policies applied in the preparation of its financial statements, except as required by GAAP, SEC rule or policy or applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No member of the Parent Group is a party to, or has any commitment to become a party to, any joint venture, off-balance sheet partnership or similar Contract (including any Contract or arrangement relating to any transaction or relationship between or among Parent, on the one hand, and any unconsolidated affiliate, including any structured finance, special purpose or limited purpose entity or Person, on the other hand), or any "off-balance sheet arrangements" (as defined in Item 303(a) of Regulation S-K promulgated by the SEC), where the result, purpose or intended effect of such Contract is to avoid disclosure of any material transaction involving, or material liabilities of, any member of the Parent Group in the Parent Financial Statements or other Parent SEC Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Without limiting the generality of <u>Section 4.7(a)</u>, (i) Marcum LLP ("Marcum") has not resigned or been dismissed as independent public accountants of Parent as a result of or in connection with any disagreement with Parent on a matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure, (ii) since January 1, 2022, neither the Parent Group nor, to the Knowledge of Parent, any Representative of Parent has received any written complaint, allegation, assertion or claim regarding the accounting or auditing practices, procedures, methodologies or methods of the Parent Group or their respective internal accounting controls, including any complaint, allegation, assertion or claim that a member of the Parent Group has engaged in questionable accounting or auditing practices and (iii) no enforcement action has been initiated or, to the Knowledge of Parent, threatened in writing against Parent by the SEC relating to disclosures contained in any Parent SEC Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) As of the date of this Agreement, there are no unresolved comments (as such term is used under Item 1B of Form 10-K) received from the SEC staff relating to the Parent SEC Documents. To the Knowledge of

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Parent, none of the Parent SEC Documents is subject to ongoing SEC review or investigation. Parent has made available, to the extent not available on EDGAR, to the Company true, correct and complete copies of all written correspondence between the SEC, on the one hand, and the Parent Group, on the other hand, occurring since January 1, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Except as would not be material to the Parent Group, taken as a whole, Parent is in compliance with the applicable criteria for continued listing of Parent Common Stock on the Nasdaq Capital Market, including all applicable corporate governance rules and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Section 4.7(f)</u> of the Parent Disclosure Schedule sets forth a schedule of all Indebtedness of the Parent Group as of the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Section 4.7(g)(i)</u> of the Parent Disclosure Schedule sets forth true, correct and complete copies of Parent's and its Subsidiaries' consolidated audited balance sheet as of September 30, 2024 and the related consolidated audited statements of operations and comprehensive (loss) income, stockholders' equity and cash flows for the year ended September 30, 2024, in each case in draft form as of the date hereof (the "<u>Draft 2024 Financial Statements</u>"). <u>Section 4.7(g)(ii)</u> of the Parent Disclosure Schedule sets forth a true, correct and complete copy of the report of Marcum to the Parent Board related to Marcum's audit of the Draft 2024 Financial Statements, in draft form as of the date hereof (the "<u>Draft 2024 Audit Opinion</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Section 4.7(h)</u> of the Parent Disclosure Schedule sets forth true, correct and complete copies of Parent's and its Subsidiaries' consolidated unaudited balance sheet as of December 31, 2024 and the related consolidated unaudited statements of operations and comprehensive (loss) income, stockholders' equity and cash flows for the three months ended December 31, 2024, in each case in draft form as of the date hereof (the "<u>Draft 2025 Q1 Financial Statements</u>").

Section 4.8 <u>Internal Controls</u>. Except as set forth in <u>Section</u> <u>4.8</u> of the Parent Disclosure Schedule, Parent has established and maintains (i) a system of internal accounting controls that complies with Section 13(b)(2)(B) of the Exchange Act, (ii) "disclosure controls and procedures" required by Rule 13a-15 or Rule 15d-15 promulgated under the Exchange Act (as such term is defined therein) and such disclosure controls and procedures are sufficient to be effective for the purpose for which they were established and (iii) "internal control over financial reporting" (as defined in Rule 13a-15 or Rule 15d-15 promulgated under the Exchange Act) and such internal control over financial reporting is sufficient to be effective in providing reasonable assurance regarding the reliability of Parent's financial reporting and the preparation of the Parent Financial Statements in accordance with GAAP. Since January 1, 2022, the principal executive officer of Parent and the principal financial officer of Parent have each made, without qualification, all certifications required by Sections 302 and 906 of the Sarbanes-Oxley Act and the rules and regulations promulgated thereunder with respect to the Parent SEC Documents and the statements contained in such certifications were true and accurate in all material respects as of the respective dates made. As of the date of this Agreement and except as set forth in <u>Section</u> <u>4.8</u> of the Parent Disclosure Schedule, there are no "significant deficiencies" or "material weaknesses" (as defined by the Public Company Accounting Oversight Board) in the design or operation of Parent's internal controls and procedures that could adversely affect Parent's ability to record, process, summarize and report financial data. Parent has adopted a code of ethics, as defined by Item 406(b) of Regulation S-K, for senior financial, accounting and compliance officers and those performing similar functions. Parent has disclosed any material violation or waiver of such code of ethics, to the extent required by Section 406(b) of the Sarbanes-Oxley Act. Since January 1, 2022, neither Parent nor any of its Subsidiaries nor, to Knowledge of Parent, any Representative of Parent has identified or been made aware of: (i) any significant deficiency or material weakness in the design or operation of internal control over financial reporting utilized by Parent, (ii) any illegal act or fraud, whether or not material, that involves the management or other employees of any member of the Parent Group, or any material complaint, allegation, assertion or claim, whether written or oral, in each case, regarding the foregoing, (iii) improper, wrongful or fraudulent accounting or auditing practices, procedures, methodologies or methods of any member of the Parent Group or their respective internal accounting controls or (iv) any material inaccuracy

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in the Parent Financial Statements. Since January 1, 2022, no attorney representing any member of the Parent Group, whether or not employed by any member of the Parent Group, has reported to the Parent Board or any committee thereof or to any director or officer of Parent evidence of fraud or a violation of securities laws or other Laws, breach of fiduciary duty or similar violation by any member of the Parent Group or any Representative of Parent.

Section 4.9 <u>State Takeover Laws; No Rights Agreements</u>. No Takeover Laws will apply with respect to or as a result of the execution of this Agreement or the Three Party Agreement or the consummation of the Conversion, the Merger, the Primary Issuance or the other transactions contemplated hereby or thereby. There is no stockholder rights agreement, "poison pill" or similar antitakeover agreement or plan in effect to which Parent is a party or is otherwise bound.

Section 4.10 <u>No Undisclosed Liabilities</u>. Except for those liabilities and obligations (a) as reflected in, reserved against or disclosed in the Parent Financial Statements prior to the date of this Agreement, (b) incurred in the ordinary course of business since the date of the most recent consolidated balance sheet of Parent included in the Parent Financial Statements prior to the date of this Agreement or (c) incurred under this Agreement or in connection with the transactions contemplated hereby, the Parent Group has no liabilities or obligations of any nature (whether absolute or contingent, asserted or unasserted, known or unknown, primary or secondary, direct or indirect, and whether or not accrued) of a type required to be reflected on a consolidated balance sheet of Parent and its consolidated Subsidiaries (or in the notes thereto) prepared in accordance with GAAP, other than those that would not reasonably be expected to have a Parent Material Adverse Effect.

Section 4.11 <u>Absence of Certain Changes or Events</u>. Except as set forth in <u>Section</u> <u>4.11</u> of the Parent Disclosure Schedule Since September 30, 2023 and through the date of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Parent Group has conducted its business only in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) there has not occurred any Parent Material Adverse Effect; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Parent has not taken any action that, if taken after the date of this Agreement, would constitute a breach of, or otherwise require the consent (disregarding the parenthetical in clause (y) to the lead-in to <u>Section</u> <u>5.2</u>) of the Company under, <u>Section</u> <u>5.2</u>.

Section 4.12 <u>Employee Benefit Plans</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Section 4.12(a)</u> of the Parent Disclosure Schedule sets forth a complete and accurate list of each material Parent Benefit Plan as of the date of this Agreement. With respect to each material Parent Benefit Plan, Parent has made available to the Company complete and accurate copies of (i) each such Parent Benefit Plan, including any material amendments thereto, and descriptions of all material terms of any such plan that is not in writing, (ii) each trust, insurance, administrative service, annuity or other funding Contract related thereto, (iii) all summary plan descriptions, including any summary of material modifications, (iv) the most recent financial statements and actuarial or other valuation reports prepared with respect thereto, (v) the most recently received IRS determination letter or opinion letter, if any, issued by the IRS with respect to any Parent Benefit Plan that is intended to qualify under Section 401(a) of the Code, (vi) the most recent annual report on Form 5500 (and all schedules thereto) required to be filed with the IRS with respect thereto and (vii) all other material filings and material correspondence with any Governmental Entity (including any correspondence regarding actual or, to the Knowledge of Parent, threatened audits or investigations) with respect to each Parent Benefit Plan, in each case, made within three (3) years prior to the date of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as would not reasonably be expected to result in material liability to the Parent Group, each Parent Benefit Plan (and any related trust or other funding vehicle) has been established, maintained and administered in accordance with its terms and is in compliance with ERISA, the Code and all other applicable Laws.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) There are no, and the Parent Group does not have any material liability in respect of, Foreign Benefit Plans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each Parent Benefit Plan that is intended to be qualified under Section 401(a) of the Code has timely received or applied for a favorable determination letter or is entitled to rely on a favorable opinion letter from the IRS, in either case, that has not been revoked and, to the Knowledge of Parent, no event or circumstance exists that has materially and adversely affected or would reasonably be expected to materially and adversely affect such qualification or exemption. No member of the Parent Group nor any Parent Benefit Plan or, to the Knowledge of Parent, any trustee, administrator or other third-party fiduciary or party-in-interest, with respect to any Parent Benefit Plan, has engaged in any breach of fiduciary responsibility or non-exempt prohibited transaction (within the meaning of Section 406 of ERISA or Section 4975 of the Code) which could result in the imposition of a material penalty assessed pursuant to Section 502(i) of ERISA or a material Tax imposed by Section 4975 of the Code on a member of the Parent Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) No Parent Benefit Plan is, and no member of the Parent Group nor any ERISA Affiliate thereof sponsors, maintains, contributes to, or is required to contribute to, or has within the six (6) years ending on the date of this Agreement sponsored, maintained, contributed to, or been required to contribute to, or has any actual or contingent liability with respect to any (i) single employer plan or other pension plan that is subject to Section 302 or Title IV of ERISA or Section 412 of the Code, (ii) "multiple employer plan" within the meaning of Section 413(c) of the Code, (iii) "multiemployer plan" (within the meaning of Section 3(37) of ERISA) or (iv) multiple employer welfare arrangement (within the meaning of Section 3(40) of ERISA).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) None of the execution, delivery or performance of this Agreement by Parent, the consummation by Parent of any transaction contemplated by this Agreement, nor Parent's compliance with any of the provisions of this Agreement (alone or in conjunction with any other event, including any termination of employment on or following the Effective Time), will result in any "parachute payment" under Section 280G of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) No member of the Parent Group has any material liability in respect of, or material obligation to provide, post-employment health, medical, disability, life insurance benefits or other welfare benefits for former or current employees, officers, consultants, independent contractors or directors (the "<u>Parent Service Providers</u>") (or the spouses, dependent or beneficiaries of any Parent Service Providers) of Parent and its Subsidiaries, whether under a Parent Benefit Plan or otherwise, except as required to comply with Section 4980B of the Code or any similar Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) None of the execution, delivery or performance of this Agreement by Parent, nor the consummation by Parent of the Conversion, the Merger or any other transaction contemplated by this Agreement will (either alone or in conjunction with any other event, including any termination of employment on or following the Effective Time) (i) entitle any Parent Service Provider to any material compensation or benefit, (ii) accelerate the time of payment or vesting, increase the amount of payment, or trigger any payment or funding, of any material compensation or benefit or trigger any other material obligation under any Parent Benefit Plan, (iii) trigger any funding (through a grantor trust or otherwise) of compensation, equity award or other benefits, (iv) otherwise give rise to any material liability under any Parent Benefit Plan or (v) limit or restrict the right of Parent or, after the consummation of the transactions contemplated by this Agreement, Parent, to merge, amend or terminate any of the Parent Benefit Plans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No Parent Benefit Plan provides for any gross-up, reimbursement or additional payment by reason of any Tax imposed under Section 409A or Section 4999 of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) All Parent RSUs granted by Parent have been duly and validly approved by the Parent Board, or by a duly constituted committee of the Parent Board to which the administration of such awards under the Parent Equity Award Plan has been delegated, or to an officer who had been validly delegated the authority to make such grants. All such approvals were made at a valid meeting of the Parent Board or such committee or pursuant

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to a valid unanimous written consent of the members of the Parent Board or such committee. All grants of Parent RSUs were granted in compliance, and are in compliance, in all material respects, with the terms of the Parent Equity Award Plan. Parent has made available to the Company complete and accurate copies of the form of award agreement used to evidence all outstanding awards under the Parent Equity Award Plan (whether denominated in cash or equity) and any individual award agreement that materially deviates from such form.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Each "nonqualified deferred compensation plan" (as defined in Section 409A(d)(1) of the Code) maintained or sponsored by a member of the Parent Group has been documented and operated in material compliance with Section 409A of the Code and the guidance issued thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) No action, suit or claim (excluding claims for benefits incurred in the ordinary course) has been brought or is pending or threatened in writing against or with respect to any Parent Benefit Plan or the assets or any fiduciary thereof (in that Person's capacity as a fiduciary of such Parent Benefit Plan) that would result in material liability to the Parent Group. There are no inquiries, audits or other Proceedings pending or, to the Knowledge of Parent, threatened by the IRS or other Governmental Entity with respect to any Parent Benefit Plan that would result in material liability to the Parent Group.

Section 4.13 <u>Labor and Other Employment Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as would not reasonably be expected to be material to the Parent Group, taken as a whole, (i) each member of the Parent Group is, and since January 1, 2022, has been, in compliance with all applicable Laws respecting labor, employment, immigration, fair employment practices, terms and conditions of employment, workers' compensation, occupational safety, plant closings, compensation and benefits, and wages and hours; (ii) there is no charge of discrimination in employment or employment practices, for any reason, including, age, gender, race, religion or other legally protected category, which is now pending or, to the Knowledge of Parent, threatened in writing against any director, officer or managerial or supervisory employee of the Parent Group before the United States Equal Employment Opportunity Commission, or any other Governmental Entity in any jurisdiction in which any member of the Parent Group has employed or currently employs any Parent Service Provider; and (iii) there is no charge of wages and hours or other employment law violations, which is now pending or, to the Knowledge of Parent, threatened in writing against any member of the Parent Group before the United States Department of Labor, or any other Governmental Entity in any jurisdiction in which any member of the Parent Group has employed or currently employs any Parent Service Provider. Except as would not reasonably be expected to result in material liability to the Parent Group, taken as a whole, each Parent Service Provider has been properly classified by the Parent Group as exempt or non-exempt and as an employee or non-employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Parent has made available to the Company true and complete copies of all collective bargaining agreements and other labor union Contracts (including all amendments thereto) to which it or any member of the Parent Group is a party that are applicable to any employees of any member of the Parent Group (the "<u>Parent CBAs</u>") in effect as of the date of this Agreement with respect to their employment with a member of the Parent Group. The consent of, consultation of or the rendering of formal advice by any labor or trade union, works council, or any other employee representative body is not required for Parent to enter into this Agreement or to consummate any of the transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except as would not reasonably be expected to result in material liability to the Parent Group, taken as a whole, as of the date of this Agreement: (i) no grievances, arbitrations or legal or administrative Proceedings which allege the violation of any Parent CBA are pending or threatened in writing; (ii) there are no labor strikes, slowdowns, work stoppages, picketings, negotiated industrial actions or lockouts pending or, to the Knowledge of Parent, threatened in writing, against any member of the Parent Group; (iii) to the Knowledge of Parent, no labor union, labor organization or works council has made a pending demand for recognition or certification to any member of the Parent Group, and there are no representation or certification proceedings or petitions seeking a representation proceeding presently pending or, to the Knowledge of Parent, threatened in writing to be brought

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or filed with any labor relations tribunal or authority; and (iv) there is no charge alleging violation of labor laws against any member of the Parent Group pending before the National Mediation Board or any comparable labor relations authority and there is no pending or, to the Knowledge of Parent, threatened in writing grievance, charge, complaint, audit or investigation by or before any Governmental Entity with respect to any Parent Service Providers in their capacities as such.

Section 4.14 <u>Contracts</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Section 4.14(a)</u> of the Parent Disclosure Schedule sets forth an accurate and complete list as of the date of this Agreement of each Contract to which a member of the Parent Group is a party to or bound by that falls within any of the following categories:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any Contract (other than Parent CBAs) that contains provisions that (A) require the Parent Group to grant "most favored nation" or most favored pricing rights to any Person, (B) limits or restricts in a material respect any member of the Parent Group from competing in or engaging in any line of business with any Person or in any geographical area, or (C) grants a right of exclusivity, first refusal or similar rights or any similar term for the benefit of a third party, except (a) in each case of (A), (B), or (C) for any such Contract that may be cancelled without penalty by a member of the Parent Group upon notice of 90 days or less or (b) in each case of (A) or (C) for any such Contract that would not be expected to be material to the Parent Group, taken as a whole;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any joint venture, legal partnership, airline industry code sharing arrangement, capacity purchase or prorate agreement between any member of the Parent Group and another airline or regional carrier, or any frequent flyer Contract or interline Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any maintenance Contract for repair and overhaul of aircraft or engines that would be expected to result in the Parent Group incurring costs in excess of $100,000 per year (other than maintenance Contracts that are terminable or cancelable by the Parent Group without penalty on 90 days' notice or less);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any Contract relating to Indebtedness (whether secured or unsecured) or any guarantee by the Parent Group of any such Indebtedness of any other Person, other than any Parent Aircraft Finance Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any material credit card-related Contract, including material (A) credit card processing or card services agreements, merchant services agreements and on-line payment services agreements, (B) agreements with credit card or debit card issuers or card associations governing co-branded credit or debit cards and (C) agreements governing participation in credit card related awards programs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) any other Contract (other than (A) purchase or sale Contracts in the ordinary course of business (including any catering, food services, and fuel purchase agreements) not involving the purchase, lease or sublease of aircraft, aircraft engines or related flight equipment, (B) Contracts that are terminable or cancelable by the Parent Group without penalty on 90 days' notice or less, (C) Contracts for the purchase, lease or sublease of aircraft, aircraft engines or related flight equipment identified in <u>Section</u> <u>4.24(d)</u> or <u>Section</u> <u>4.24(e)</u> of the Parent Disclosure Schedule, or (D) the Contracts for any leased real property, including the Parent Leased Property listed in <u>Section</u> <u>4.22(a)</u> of the Parent Disclosure Schedule), which requires or involves payments by the Parent Group in excess of $100,000 per annum;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) any Contract for any Parent Slot;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) any Contract pursuant to which a license (including via a covenant not to sue) or other right with respect to Intellectual Property Rights that are material to the Parent Group is granted (x) by the Parent Group to any Person or (y) by any Person to the Parent Group (but excluding, in each case, (a) non-disclosure agreements, (b) agreements with employees or independent contractors that do not include any exclusive outbound licenses or outbound assignments of Intellectual Property Rights, (c) consulting services agreements (other than which contemplate the development of Intellectual Property

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Rights that are material to the business of the Parent Group) that do not include any exclusive outbound licenses or outbound assignments of Intellectual Property Rights and (d) in-licenses to generally available off-the-shelf software, in each case of (a), (b), (c) and (d), entered into in the ordinary course of business);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) any Contract (excluding Contracts for trades made pursuant to an existing master agreement) relating to any material obligations arising under any equity, interest rate, currency or commodity derivatives or hedging transaction, other than any Parent Aircraft Finance Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) any Contract that creates a material Lien on any material asset of Parent or any of its Subsidiaries other than any Parent Aircraft Finance Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) any Contract (excluding Contracts for trades made pursuant to an existing master agreement) with respect to any swap, forward, spot, future, credit default or derivative transaction or option or similar agreement involving, or settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or securities, or economic, financial or pricing indices or measures of economic, financial or pricing risk or value or any similar transaction or any combination of these transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) any Contract for Parent Leased Real Property listed in <u>Section</u> <u>4.22(a)</u> of the Parent Disclosure Schedule; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) any "material contract" (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) that is required to be filed by the Parent Group pursuant to Item 601(b)(10) of Regulation S-K.

Each Contract, including all amendments, modifications and supplements thereto, of the type required to be listed in this <u>Section</u> <u>4.14(a)</u>, together with each Parent Aircraft Purchase Contract and each Parent Aircraft Finance Contract, is referred to herein as a "<u>Parent Material Contract</u>". Accurate and complete copies of each Parent Material Contract have been made available by the Parent Group to the Company, in each case prior to the date of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except for any Parent Material Contract that has expired or been terminated in accordance with its terms and except as would not reasonably be expected to be material to the Parent Group, taken as a whole, each Parent Material Contract is a valid and binding obligation of the applicable member of the Parent Group and, to the Knowledge of Parent, of the other party or parties thereto, in accordance with its terms, and is in full force and effect, subject to the Enforceability Exceptions. Except for breaches, violations or defaults which are not reasonably expected to be material to the Parent Group, taken as a whole, the Parent Group has performed all obligations required to be performed by it under each Parent Material Contract and, to the Knowledge of Parent, each other party to each Parent Material Contract has in all material respects performed all obligations required to be performed by it under such Parent Material Contract. Except as would not reasonably be expected to be material to the Parent Group, taken as a whole, since January 1, 2022, the Parent Group has not received written notice of any violation or default (nor, to the Knowledge of Parent, does there exist any condition which upon the passage of time or the giving of notice or both would cause such a material violation of or material default under) any Parent Material Contract.

Section 4.15 <u>Litigation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As of the date of this Agreement, except as would not reasonably be expected to have a Parent Material Adverse Effect, there is no Proceeding pending or, to the Knowledge of Parent, threatened in writing against any member of the Parent Group, any property or assets of the Parent Group, or any of their respective officers, directors or employees in such individual's capacity as such, that (i) involves an amount in controversy in excess of $250,000 or (ii) seeks injunctive or other non-monetary relief that, if granted, would reasonably be expected to be material to the Parent Group, taken as a whole.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As of the date of this Agreement, no member of the Parent Group is subject to any outstanding Order (other than those of general applicability) that would reasonably be expected to be material to the Parent Group, taken as a whole.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) There has not been since January 1, 2022 any material internal investigations or inquiries conducted by Parent, the Parent Board (or any committee thereof), any compliance officer of Parent or any third party at the request of any of the foregoing concerning any financial, accounting, conflict of interest, illegal activity or other fraudulent issues.

Section 4.16 <u>Environmental Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as set forth in <u>Schedule 4.16</u> of the Parent Disclosure Schedules or as would not otherwise reasonably be expected to be material to the Parent Group, taken as a whole:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) each member of the Parent Group is, and since January 1, 2022, has been, in compliance with all applicable Environmental Laws, and the Parent Group has obtained, has made timely and complete application for any required renewal of, and is, and since January 1, 2022 has been, in compliance with, all Environmental Permits necessary for the conduct and operation of the business of the Parent Group;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) there are not now, and since January 1, 2022, there have not been, any Hazardous Substances Released or otherwise existing on, under, about, or emanating from or to, any property currently, or to the Knowledge of Parent, formerly, owned, leased or operated by the Parent Group, except as would not result in liability under, any applicable Environmental Laws, including any obligation to conduct site investigation or remediation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) since January 1, 2022, or prior to that date if the matter remains unresolved, no member of the Parent Group has received any notice of alleged liability for, or any Proceeding, Order or inquiry regarding, any Release or threatened Release of Hazardous Substances or alleged violation of, or non-compliance with, any Environmental Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Parent has made available to the Company prior to the date of this Agreement copies of any material environmental reports, studies, assessments, and other material environmental information, in its possession or reasonable control relating to the Parent Group and its current or former properties, assets or operations.

Section 4.17 <u>Intellectual Property; IT Assets</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as would not reasonably be expected to be material to the Parent Group, taken as a whole, (i) none of the Intellectual Property Rights owned or purported to be owned by the Parent Group (the "<u>Parent Owned Intellectual Property</u>") as of the date hereof has lapsed, expired, been abandoned or been adjudged invalid or unenforceable, (ii) the Parent Group exclusively owns all Parent Owned Intellectual Property, free and clear of all Liens (other than Permitted Liens), and (iii) the Parent Group has sufficient rights to use the in-licensed Intellectual Property Rights used or held for use in the business of the Parent Group, in each case, pursuant to a Contract with the applicable third-party owner (collectively referred to herein as the "<u>Parent Licensed Intellectual Property</u>"). The Parent Owned Intellectual Property and Parent Licensed Intellectual Property includes all Intellectual Property Rights material to the conduct of the business of the Parent Group as currently conducted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as would not reasonably be expected to be material to the Parent Group, taken as a whole:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) no Proceedings are pending or, to the Knowledge of Parent, threatened in writing against any member of the Parent Group that challenge the Parent Group's ownership of Parent Owned Intellectual Property other than for office actions in the ordinary course of application prosecution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) since January 1, 2022, no member of the Parent Group has received any written notice alleging the invalidity or unenforceability of any Parent Owned Intellectual Property; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) since January 1, 2022, no Person has notified in writing the Parent Group that it is claiming any ownership of any Parent Owned Intellectual Property.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except as would not reasonably be expected to be material to or result in material liability for the Parent Group, taken as a whole, the conduct of the business of the Parent Group does not infringe, misappropriate or otherwise violate, and since January 1, 2022, has not infringed, misappropriated or otherwise violated, the Intellectual Property Rights of any Person, and there are no, pending or, to the Knowledge of Parent, threatened in writing against any member of the Parent Group alleging any of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Except as would not reasonably be expected to be material to the Parent Group, taken as a whole, (i) each member of the Parent Group takes, and since January 1, 2022 has taken, commercially reasonably steps to maintain the confidentiality of all trade secrets and other material confidential information, in each case, included in the Parent Owned Intellectual Property and (ii) to the Knowledge of Parent, no Person is infringing, misappropriating or otherwise violating, or since January 1, 2022 has infringed, misappropriated or otherwise violated, any Parent Owned Intellectual Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Section 4.17(e)</u> of the Parent Disclosure Schedule is a true and complete list of all material Parent Registered IP owned or purported to be owned by the Parent Group as of the date of this Agreement. Except as would not reasonably be expected to be material to the Parent Group, taken as a whole, the Parent Registered IP is subsisting and, to the Knowledge of Parent, valid (or applied for) and (excluding pending applications) enforceable (assuming registration where required for enforcement) and there are no Proceedings pending or, to the Knowledge of Parent, threatened in writing challenging any of the foregoing other than office actions in the ordinary course of application prosecution. <u>Section</u> <u>4.17(e)</u> of the Parent Disclosure Schedule also sets out a list of all material unregistered Trademarks used, owned, or purported to be owned by any member of the Parent Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) No Parent IT Assets contain any "Trojan horse," "virus," "worm," "malware," "vulnerability," "spyware" or "adware" (as such terms are commonly understood in the industry), corruptant or any other code capable of performing, any of the following functions, in each case, except as would not reasonably be expected to be material to the Parent Group, taken as a whole: (i) disrupting, disabling, harming, or otherwise impeding in an unintended manner the operation of, or providing unauthorized access to, a computer system or network or other device on which such code is stored or installed; or (ii) maliciously damaging or destroying any data or file without consent (collectively, "<u>Parent Malicious Code</u>"). Each member of the Parent Group takes, and since January 1, 2022 has taken, commercially reasonable steps (and which steps meet or exceed industry standard for a company in its industry with similar size and resources) designed to prevent the introduction of Parent Malicious Code into Parent IT Assets, except as would not reasonably be expected to be material to the Parent Group, taken as a whole.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Parent Group has established, and since January 1, 2022 has maintained in effect, commercially reasonable disaster recovery measures for its business. Except as would not reasonably be expected to be material to or create material liability for the Parent Group, taken as a whole (i) the Parent IT Assets operate and perform in a manner sufficient for the Parent Group to conduct its business in the ordinary course, and (ii) there have been no breaches, violations, outages, interruptions or instances of unauthorized access or disclosure with respect to any Parent IT Assets (or any information, including Personal Information, stored therein or Processed thereby) ("<u>Security Events</u>"). Each member of the Parent Group takes, and since January 1, 2022 has taken, commercially reasonable steps (that meet or exceed industry standard for a company in its industry with similar size and resources) designed to protect the Parent IT Assets from Security Events.

Section 4.18 <u>Data Privacy and Security</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Since January 1, 2022, each member of the Parent Group complies and at all times has complied with all (i) written privacy policies and external representations of the Parent Group regarding the Processing of Personal Information, (ii) written contractual obligations governing the treatment and Processing of Personal Information by the Parent Group, (iii) applicable industry standards legally binding on the Parent Group (including, as applicable, PCI DSS), (iv) registration requirements with any applicable Governmental Entity for

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the Processing of Personal Information by Parent Group and (v) Privacy Laws (collectively, the "<u>Parent</u> <u>Data Privacy Requirements</u>"), in each case with respect to clauses (i) through (v), except where noncompliance would not reasonably be expected to be material to the Parent Group, taken as a whole. Except as would not reasonably be expected to be material to or create material liability for the Parent Group, taken as a whole: (1) each member of the Parent Group has at all times presented a privacy policy or other privacy-related notices (such as notice of financial incentives) to individuals and obtained prior express consent prior to the collection of any Personal Information, in each case, to the extent required of the Parent Group by Parent Data Privacy Requirements, and (2) such privacy policies, notices, and consents: (a) are, and since January 1, 2022 have been, sufficient under applicable Parent Data Privacy Requirements to permit the Processing of Personal Information by each member of the Parent Group as currently or as, since January 1, 2022 previously Processed by or for each member of the Parent Group and (b) have at all times been materially accurate, consistent and complete, and not materially misleading or deceptive (including by any material omission).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) None of the execution, delivery or performance of this Agreement or the Three Party Agreement by Parent, the consummation by Parent of the Conversion, the Merger, the Primary Issuance or any other transaction contemplated by this Agreement or the Three Party Agreement, or Parent's compliance with any of the provisions of this Agreement or the Three Party Agreement will (with or without notice or lapse of time, or both): (i) conflict with or result in a violation or breach of any Parent Data Privacy Requirements; or (ii) require the consent of or provision of notice to any Person concerning such Person's Personal Information, in each case except as would not reasonably be expected to be have a Parent Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Since January 1, 2022, there has been no accidental, unlawful, or unauthorized Processing of Personal Information in the possession or control of the Parent Group ("<u>Parent</u> <u>PII Security Incident</u>"), except as would not reasonably be expected to be material to the Parent Group, taken as a whole. Each member of the Parent Group takes commercially reasonable steps and has, since January 1, 2022, implemented and maintained, commercially reasonable measures to (i) monitor, detect, prevent, mitigate, and remediate Parent PII Security Incidents, (ii) identify and address internal and external material risks to the privacy and security of Personal Information in its possession or control or stored with a third party on its behalf, and (iii) protect and maintain the confidentiality, integrity, security and continuous operation of all software, systems, applications, and websites owned and operated by the Parent Group, all other Parent IT Assets, and all information (including Personal Information) stored therein or Processed thereby. Except as would not reasonably be expected to be material to the Parent Group, taken as a whole: (1) Parent requires and has, since January 1, 2022, required all third parties that Process Personal Information on its behalf to enter into written contracts to provide security and privacy protections for Personal Information consistent with Privacy Laws, and (2) to the Knowledge of Parent, such third parties are not in breach of such Contracts with respect to such Personal Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Since January 1, 2022, no member of the Parent Group: (i) has been the subject of any inquiry, investigation, or enforcement action by any Governmental Entity with respect to such member's compliance with any <u>Parent Data Privacy Requirement</u> or its Processing of Personal Information, (ii) has been the subject of any Proceeding alleging or investigating a Parent PII Security Incident, or violation of any Parent Data Privacy Requirement or relating to Parent's or such member's Processing of Personal Information, or (iii) has received a written claim from, by or before any Governmental Entity alleging a violation of any Parent Data Privacy Requirement or relating to Parent's or such member's Processing of Personal Information, in each case with respect to clauses (i) through (iii), except as would not reasonably be expected to be material to the Parent Group, taken as a whole.

Section 4.19 <u>Tax Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each member of the Parent Group has timely filed (taking into account any automatic or properly obtained extension of time within which to file) all income and other material Tax Returns required to have been filed by or with respect to the Parent Group, and all such Tax Returns are true, complete and accurate in all material respects. No written claim has been made in the past six (6) years in writing by a Governmental Entity

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in a jurisdiction where a member of the Parent Group does not file Tax Returns that such member of the Parent Group is or may be subject to Taxes in such jurisdiction. No member of the Parent Group has a permanent establishment in any country other than the country of its organization, or has been, subject to income Tax in a jurisdiction outside the country of its organization, in each case, where it is required to file a material income Tax Return and does not file such Tax Return.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All material Taxes of the Parent Group due and payable (whether or not shown on any Tax Return) have been timely paid. The Parent Group has made adequate provision for all Taxes of the Parent Group not yet due and payable on the Parent Financial Statements as of the date of the Parent Financial Statements. Since the date of the Parent Financial Statements, any Taxes of the Parent Group have been accrued on the books and records of the Parent in accordance with GAAP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Parent has delivered or otherwise made available to the Company (i) complete and correct copies of all income or other material Tax Returns of the Parent Group relating to Taxes for the preceding five (5) taxable periods, and (ii) complete and correct copies of all private letter rulings, notices of proposed deficiencies, closing agreements, settlement agreements and pending ruling requests relating to Taxes submitted by, received by, or agreed to by or on behalf of the Parent Group for all taxable periods for which the statute of limitations has not yet expired.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No deficiencies for any material amount of Taxes have been proposed or assessed in writing against any member of the Parent Group by any Governmental Entity, except for deficiencies being contested in good faith by appropriate proceedings. No member of the Parent Group (i) is the subject of any currently pending or ongoing material Tax audit or other administrative or judicial Proceeding with respect to Taxes or (ii) has waived any statute of limitations in respect of any Taxes or agreed to any extension of time with respect to a Tax assessment or deficiency, which waiver or extension is currently in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) No member of the Parent Group is a party to, or has any obligation or liability under, any agreement or arrangement for the sharing, reimbursement, indemnification or allocation of any Taxes, including any tax receivable agreement or similar agreement (other than customary provisions for Taxes contained in credit, lease or other commercial agreements entered into in the ordinary course of business the primary purposes of which do not relate to Taxes).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) No member of the Parent Group is, or has been, a member of a group (other than a group the common parent of which is the Parent) filing a consolidated, combined, affiliated, unitary or similar income Tax Return. No member of the Parent Group has any liability for the Taxes of any Person (other than Taxes of the Parent Group) under Treasury Regulations Section 1.1502-6 (or any similar provision of state, local or foreign Law), or as a transferee or successor, by Contract or otherwise (other than customary provisions for Taxes contained in credit, lease or other commercial agreements entered into in the ordinary course of business the primary purposes of which do not relate to Taxes).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) No member of the Parent Group will be required to include any material item of income in, or exclude any material item or deduction from, taxable income for any taxable period beginning after the Closing Date or, in the case of any taxable period beginning on or before and ending after the Closing Date, the portion of such period beginning after the Closing Date, as a result of: (i) an installment sale or open transaction disposition that occurred prior to the Closing; (ii) any change in method of accounting made prior to the Closing, including by reason of the application of Section 481 of the Code (or any analogous provision of state, local or foreign Law); (iii) other than in the ordinary course of business, a prepaid amount received or deferred revenue recognized prior to the Closing; (iv) any intercompany transaction or excess loss account described in the Treasury Regulations under Section 1502 (or any corresponding or similar provision of state, local or foreign Law) that occurred or existed prior to the Closing; or (v) any closing agreement pursuant to Section 7121 of the Code or any similar provision of state, local or foreign Law entered into prior to the Closing; (vi) an inclusion under Section 965 of the Code; (vii) a direct or indirect holding of "United States property" within the meaning

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of Section 956 of the Code (or any similar provision of state, local or foreign Law); or (viii) any inclusions pursuant to Sections 951 or 951A of the Code or Subchapter K of the Code (or any similar provision of the Code or any corresponding or similar provision of state, local or foreign Law) derived with respect to any period or portion thereof ending on or prior to the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Except as set forth in <u>Schedule 4.19</u> to the Parent Disclosure Schedules, no member of the Parent Group owns an equity interest in any entity or arrangement classified as a partnership for United States federal Tax purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Each member of the Parent Group has withheld and, to the extent required by Law, paid to the appropriate Governmental Entity all material Taxes required to have been withheld and paid in connection with amounts paid or owing to any employee, independent contractor, creditor, stockholder or other third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Each member of the Parent Group has collected all material sales, value-added and use Taxes required to be collected, and has remitted, or will remit on a timely basis, such amounts to the appropriate Governmental Entity (or has been furnished properly completed exemption certificates with respect to any such Taxes and has complied in all material respects with applicable sales and use Tax statutes and regulations requiring the maintenance of records and supporting documents).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Parent is not and has not in the last five years been a "United States real property holding corporation" within the meaning of Section 897 of the Code and equity interests in the Parent are not "United States real property interests" within the meaning of Sections 897 and 1445 of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) No member of the Parent Group has taken any action, and no member of the Parent Group is aware of any fact or circumstance, that could reasonably be expected to prevent the Merger from qualifying as a "reorganization" within the meaning of Section 368(a) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) No member of the Parent Group "participates" or has "participated" in any "listed transaction" within the meaning of Treasury Regulations Section 1.6011-4(b) or any similar provision of applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) Within the last two years, no member of the Parent Group nor any predecessor of any member of the Parent Group has constituted either a "distributing corporation" or a "controlled corporation" in a transaction intended to qualify for tax-free treatment under Sections 355 and 361 of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) Other than Permitted Liens, there are no Liens with respect to Taxes upon any assets of the Parent Group.

Section 4.20 <u>Insurance</u>. The Parent Group maintains insurance coverage with reputable and financially sound insurers, or maintains self-insurance practices, in such amounts and covering such risks as are in accordance with customary industry practice for companies engaged in businesses similar to that of the Parent Group and which comply in all material respects with the requirements of Law and Contracts to which the Parent Group is a party (including any lease for personal or real property). Parent has made available to the Company an accurate and complete list of all material insurance policies and all material self-insurance programs and arrangements relating to the business of the Parent Group and the assets and operations of the Parent Group (the "<u>Parent Insurance Policies</u>"). Except as would not reasonably be expected to be material to the Parent Group, taken as a whole, each of the Parent Insurance Policies is in full force and effect, all premiums due and payable thereon have been paid and the Parent Group is in compliance with the terms and conditions of such Parent Insurance Policies. Since January 1, 2022, the Parent Group has not received any written notice regarding any invalidation or cancellation of any material Parent Insurance Policy.

Section 4.21 <u>Properties and Assets</u>. Except as would not reasonably be expected to be material to the Parent Group, taken as a whole, (a) the Parent Group has valid and subsisting ownership interests in all of the tangible

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personal property reflected in the latest balance sheet included in the Parent SEC Documents prior to the date of this Agreement as being owned by the Parent Group or acquired after the date thereof (except tangible personal properties sold or otherwise disposed of since the date thereof in the ordinary course of business), free and clear of all Liens, other than Permitted Liens and (b) the tangible personal property owned by the Parent Group is in satisfactory operating condition and repair for its continued use as it has been used in all material respects, subject to reasonable wear and tear. To Parent's Knowledge, no member of the Parent Group has any material liability in respect of escheat and unclaimed property.

Section 4.22 <u>Real Property</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Section 4.22(a)</u> of the Parent Disclosure Schedule sets forth, as of the date of this Agreement, (i) an accurate and complete list of all real property leased, subleased, licensed or sublicensed by the Parent Group that require payments of fixed rent by the Parent Group (collectively, the "<u>Parent</u> <u>Leased Real Property</u>"), (ii) the address for each Parent Leased Real Property and (iii) the name of the third party lessor(s) (or lessee(s), licensor(s), or licensee(s), as applicable) thereof, the date of the lease contract relating thereto and all amendments thereof. The Parent Group has a valid and subsisting leasehold or license, as applicable, interest in all Parent Leased Real Property leased by it, in each case free and clear of all Liens, other than Permitted Liens.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As of the date of this Agreement, no member of the Parent Group owns any real property or is a party to any Contract or otherwise has any obligation to acquire any real property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Since January 1, 2022, the Parent Group has not received written notice of any Proceedings in eminent domain, condemnation or other similar Proceedings that are pending, and, to the Knowledge of Parent, there are no such Proceedings threatened in writing, affecting any portion of the Parent Leased Real Property.

Section 4.23 <u>Related Party Transactions</u>. As of the date of this Agreement, no member of the Parent Group is a participant in a "transaction" with any "related person" that would be required to be disclosed by Parent under Item 404 of Regulation S-K (a "<u>Parent Related Party Transaction</u>"). For purposes of this <u>Section</u> <u>4.23</u>, the terms "related person" and "transaction" have the meanings given to such terms in Item 404 of Regulation S-K.

Section 4.24 <u>Aircraft</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Section 4.24(a)</u> of the Parent Disclosure Schedule sets forth, as of the date of this Agreement, a true and complete list of (i) all aircraft operated under the operating certificate of any member of the Parent Group and (ii) all aircraft (including any Pipistrel Alpha Trainer model aircraft or any other aircraft used for training purposes), aircraft engines or related flight equipment owned, leased or subleased by any member of the Parent Group (collectively, the "<u>Parent</u> <u>Aircraft</u>"), including, for each Parent Aircraft, manufacturer's model name, manufacturer's serial number, FAA or foreign CAA registration number, whether it is owned, leased or subleased and, if the Parent Aircraft is the subject of a security agreement or other financing arrangement, the identity of the financing party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As of the date of this Agreement, all Parent Aircraft are properly registered on the FAA aircraft registry and any applicable foreign CAA, in airworthy condition (except for any Parent Aircraft undergoing maintenance or in storage), and have validly issued and current FAA or applicable foreign CAA certificates of airworthiness that are in full force and effect (except for the period of time any Parent Aircraft may be out of service and such certificate is suspended in connection therewith). Any Parent Aircraft that is non-airworthy for fourteen (14) days, is in scheduled maintenance (Basic or above, as defined by the Embraer MRB/MPD), or for which its certificate is suspended has been so identified in <u>Section</u> <u>4.24(b)</u> of the Parent Disclosure Schedule, and includes, for each Parent Aircraft, manufacturer's model name, manufacturer's serial number, FAA or foreign CAA registration number, whether it is owned, leased or subleased and, if the Parent Aircraft is the subject of a security agreement or other financing arrangement, the identity of the financing party.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) As of the date of this Agreement, all Parent Aircraft are being maintained and, if applicable, are being stored, in all material respects according to applicable Laws, Parent Permits, applicable FAA regulatory standards and FAA-approved maintenance programs of the Parent Group. The Parent Group has implemented maintenance schedules with respect to Parent Aircraft that, if complied with, result in the satisfaction of all requirements under all applicable airworthiness directives of the FAA and Federal Aviation Regulations required to be complied with and which are in accordance with the FAA-approved maintenance program of the Parent Group, and the Parent Group, as of the date of this Agreement, is in compliance with such maintenance schedules in all material respects, and the Parent Group, as of the date of this Agreement, has no reason to believe that the Parent Group will not satisfy in any material respect any component of such maintenance schedules and, if applicable, storage schedules, on or prior to the dates specified in such schedules. As of the date of this Agreement, the Parent Aircraft are functioning in all material respects in accordance with their intended use, except for Parent Aircraft that are undergoing maintenance and temporarily deferred maintenance items that are permitted by the Parent Group's maintenance programs. All deferred maintenance items and temporary repairs with respect to each such Parent Aircraft, as of the date of this Agreement, have been or will be made in all material respects in accordance with any applicable FAA regulatory standards and FAA-approved maintenance programs. Any Parent Aircraft that is undergoing maintenance or in storage has been so identified in <u>Section</u> <u>4.24(c)</u> of the Parent Disclosure Schedule and includes, for each such Parent Aircraft, manufacturer's model name, manufacturer's serial number, FAA or foreign CAA registration number, whether it is owned, leased or subleased and, if the Parent Aircraft is the subject of a security agreement or other financing arrangement, the identity of the financing party. Any temporarily deferred maintenance items on any Parent Aircraft (and the date by which they will be completed) have been so identified in <u>Section</u> <u>4.24(c)</u> of the Parent Disclosure Schedule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Section 4.24(d)</u> of the Parent Disclosure Schedule sets forth, as of the date of this Agreement, a true and complete list of all Contracts (other than Contracts that may be terminated or cancelled without penalty by any member of the Parent Group upon notice of 90 days or less) pursuant to which any member of the Parent Group has (or may have pursuant to any springing obligations therein) a binding obligation following the date of this Agreement to purchase, lease or sublease aircraft, engines or related flight equipment (together with all amendments, modifications and supplements thereto, each, a "<u>Parent</u> <u>Aircraft Purchase Contract</u>") and includes, for each such aircraft, engine or related flight equipment, manufacturer's model name, manufacturer's serial number, FAA or foreign CAA registration number (if applicable), whether it is owned, leased or subleased and, if the subject to a security agreement or other financing arrangement, the identity of the financing party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Section 4.24(e)</u> of the Parent Disclosure Schedule sets forth, as of the date of this Agreement, a true and complete list of all Contracts pursuant to which any member of the Parent Group has financed or leased, or has commitments to finance or lease, Parent Aircraft (including operating or finance leases, mortgages and deferred or conditional sales agreements) (together with all amendments, modifications and supplements thereto, each, a "<u>Parent</u> <u>Aircraft Finance Contract</u>") and includes for each Parent Aircraft, manufacturer's model name, manufacturer's serial number, FAA or foreign CAA registration number, whether it is owned, leased or subleased and, if the Parent Aircraft is the subject of a security agreement or other financing arrangement, the identity of the financing party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) With respect to each Parent Aircraft presently owned by any member of the Parent Group ("<u>Parent</u> <u>Owned Aircraft</u>"), such member of the Parent Group holds good and marketable title to the Parent Owned Aircraft free and clear of any Liens except for any Liens under an applicable Parent Aircraft Finance Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) As of the date of this Agreement, Parent has made available to the Company complete and correct copies of all Parent Aircraft Purchase Contracts and Parent Aircraft Finance Contracts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) As of the date of this Agreement, no member of the Parent Group is a party to any interchange or pooling agreements with respect to the Parent Aircraft, other than pooling agreements in the ordinary course of business.

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Section 4.25 <u>Parent Slots and Operating Authorizations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Section 4.25(a)</u> of the Parent Disclosure Schedule sets forth a true and complete list as of the date of this Agreement of all takeoff and landing slots, runway timings, slot exemptions, and operating authorizations from the FAA, DOT or any other Governmental Entity or civil aviation authority, airport authority or slot coordinator and other designated takeoff and landing rights used or held by any member of the Parent Group (the "<u>Parent Slots</u>") at any U.S. or non-U.S. airport and such list indicates (i) any Parent Slots that have been allocated (indicating which Parent Slots have been permanently allocated) to the Parent Group from another air carrier and (ii) any Contracts concerning any Parent Slots.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Since January 1, 2022, the Parent Group has complied, and is in compliance, in all material respects with all Parent Permits, regulations and any other Laws (including any waivers or exemptions therefrom) promulgated in the United States or in any country in which the Parent Group operates by either a Governmental Entity, civil aviation authority, airport authority or slot coordinator with respect to the Parent Slots. Since January 1, 2022, Parent has not (a) received any written notice of any proposed withdrawal of any Parent Slot by the FAA, DOT, foreign CAA, any other Governmental Entity or civil aviation authority, airport authority or slot coordinator, or (b) agreed to any future slide, trade, purchase, sale, exchange, lease, or transfer of any of the Parent Slots. Since January 1, 2022, the Parent Slots have not been designated for the provision of essential air service under the regulations of the FAA, DOT or foreign CAA, were not acquired pursuant to 14 C.F.R. § 93.219, and have not been designated for international operations, as more fully detailed in 14 C.F.R. § 93.217. Since January 1, 2022, to the extent covered by 14 C.F.R. § 93.227 or any Parent Permit, Order, notice, or requirement of the FAA, foreign CAA, any other Governmental Entity or civil aviation authority, airport authority or any slot coordinator, the Parent Group has used the Parent Slots (or the Parent Slots have been used by other operators) either at least 80% of the maximum amount that each Parent Slot could have been used during each full reporting period (as described in 14 C.F.R. § 93.227(i) or any such Parent Permit, Order, notice, or requirement) or such greater or lesser amount of minimum usage as may have been required to protect such Parent Slots from termination or withdrawal under regulations or waivers established by the FAA, DOT, foreign CAA, any other Governmental Entity or civil aviation authority, airport authority or slot coordinator. Since January 1, 2022, all material reports required by the FAA, DOT, any other Governmental Entity or foreign CAA, airport authority or slot coordinator relating to any of the Parent Slots have been filed in a timely and complete manner.

Section 4.26 <u>Parent Airports</u>. As of the date of this Agreement, no airport authority at any airport at which the Parent Group operates (each such airport, a "<u>Parent Airport</u>") has taken any action, nor, to the Knowledge of Parent, is any such action threatened in writing, that would reasonably be expected to materially interfere with the ability of any member of the Parent Group to conduct its respective operations at any Parent Airport in substantially the manner as currently conducted.

Section 4.27 <u>U.S. Citizen; Air Carrier</u>. Each member of the Parent Group is a "citizen of the United States" as defined in 49 U.S.C. § 40102(a)(15) of the Federal Aviation Act and as interpreted by DOT, and each air carrier member of the Parent Group, including Mesa Airlines, Inc., is fully authorized and qualified to operate as an "air carrier" within the meaning of such Act operating under certificates and exemptions issued pursuant to such Act (49 U.S.C. §§ 40102(a)(2), 40109, and 41101-41112).

Section 4.28 <u>Opinion of Financial Advisor</u>. The Parent Board has received the opinion (the "<u>Fairness Opinion</u>") of FTI Capital Advisors, LLC ("<u>FTI</u>") to the effect that, subject to the assumptions, qualifications and other matters set forth therein, as of the date of this Agreement, the Exchange Ratio and the Primary Issuance, taken together, are fair from a financial point of view, to Parent and its stockholders, and the Fairness Opinion has not been withdrawn, revoked or modified as of the date of this Agreement. Promptly following the date of this Agreement, Parent will make available to the Company, solely for informational purposes, a written copy of the Fairness Opinion.

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Section 4.29 <u>Brokers</u>. Except for Parent's obligations to FTI, no member of the Parent Group nor any stockholder, director, officer, employee or Affiliate of any member of the Parent Group has incurred on behalf of the Parent Group or will incur on behalf of the Parent Group any brokerage, finders', financial advisory or similar fee in connection with the transactions contemplated by this Agreement, including the Conversion and the Merger. On or prior to the date of this Agreement, Parent has made available to the Company a copy of the engagement letter as in effect as of the date of this Agreement, between Parent and FTI.

Section 4.30 <u>Trade Control Compliance</u>. Each member of the Parent Group is, and has been at all times since April 24, 2019, in compliance with all applicable trade control compliance Laws, including but not limited to: (a) U.S. Laws governing the exportation of goods, technology, software, and services, including the Export Administration Regulations (15 C.F.R. § 730 et seq.), and the International Traffic in Arms Regulations (22 C.F.R. § 120 et seq.); (b) U.S. Laws governing the importation of goods, including Laws administered by U.S. Customs and Border Protection; (c) U.S. Laws governing economic sanctions, including those administered by the U.S. Treasury Department's Office of Foreign Assets Control ("<u>OFAC</u>") codified at 31 C.F.R. Part 500 et. seq., and the U.S. Department of State (collectively, "<u>Sanctions</u>"); and (d) U.S. Laws governing international boycotts administered by the U.S. Department of Commerce and the Internal Revenue Service (collectively, "<u>Trade Compliance Laws</u>"), except, in each case, as would not reasonably be expected to be material to the Parent Group, taken as a whole. Since April 24, 2019, no member of the Parent Group nor any of their respective directors, managers, managing members, officers, employees, or to the Knowledge of Parent, its agents, representatives, or other Persons acting on behalf of any member of the Parent Group, has been the target of any Sanctions. Since April 24, 2019, no member of the Parent Group has engaged in any unlawful dealings or transactions, directly or indirectly: (i) with any Person that at the time of the dealing or transaction was the subject of Sanctions; or (ii) in any jurisdiction that is, or since April 24, 2019 was, the subject of comprehensive Sanctions at the time of the dealing or transaction, including Cuba, Iran, North Korea, Syria, and the Russian-occupied Crimea, Donetsk, or Luhansk regions of Ukraine. To the Knowledge of Parent, no member of the Parent Group is, or since April 24, 2019 has been, subject to any Proceeding or other inquiry, or made any disclosures to any Governmental Entity relating to any applicable Trade Compliance Laws. Each member of the Parent Group has implemented and maintains in effect policies, procedures, and internal controls reasonably designed to promote compliance by each member of the Parent Group, and their respective directors, officers, employees, agents, representatives, and other Persons acting on their behalf, with all applicable Trade Compliance Laws.

Section 4.31 <u>Information Supplied</u>. None of the information supplied or to be supplied by Parent specifically for inclusion or incorporation by reference in (i) the Form S-4 will, at the time the Form S-4 is filed with the SEC, at any time it is amended or supplemented or at the time it becomes effective under the Securities Act, contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements therein not misleading or (ii) the Proxy Statement will, at the date it is first mailed to Parent's stockholders or at the time of the Parent Stockholder Meeting, contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they are made, not misleading. The Form S-4 and the Proxy Statement will comply as to form in all material respects with the requirements of the Securities Act and the Exchange Act and the rules and regulations thereunder, except that no representation or warranty is made by Parent with respect to statements made or incorporated by reference therein based on or derived from information supplied by the Company specifically for inclusion or incorporation by reference in the Form S-4 or the Joint Proxy Statement.

Section 4.32 <u>Parent Treasury Restrictions</u>. Each member of the Parent Group is and has been in compliance with the Parent Treasury Restrictions in all material respects.

Section 4.33 <u>Non-Reliance</u>. Except for the representations and warranties expressly contained in <u>Article III</u>, Parent acknowledges that neither the Company nor other Person on behalf of the Company makes, and Parent acknowledges that it has not relied upon or otherwise been induced by, any express or implied representation or

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warranty by or on behalf of the Company or with respect to any other information provided or made available to Parent or its Representatives by or on behalf of the Company in connection with the transactions contemplated by this Agreement, including any information, documents, projections, forecasts or other material made available to Parent or its Representatives in data rooms, management presentations or similar information deliverables in expectation of the transactions contemplated by this Agreement<u>.</u>

Section 4.34 <u>No Other Representations and Warranties</u><u>.</u> Except for the representations and warranties expressly contained in this <u>Article IV</u>, neither Parent nor any other Person on behalf of Parent makes or has made any express or implied representation or warranty with respect to Parent or with respect to any other information provided or made available to the Company or its Representatives, including any information, documents, projections, forecasts or other material made available to the Company or its Representatives in certain data rooms or management presentations in expectation of, or in connection with, the transactions contemplated by this Agreement, or the accuracy or completeness of any of the foregoing other than the representations and warranties contained in this <u>Article IV</u>.

#### ARTICLE V
<u>COVENANTS AND AGREEMENTS</u>

Section 5.1 <u>Conduct of Business by the Company</u><u>.</u> From the date of this Agreement through the earlier of the Effective Time and the termination of this Agreement in accordance with its terms (the "<u>Interim Period</u>"), except (x) as expressly set forth in <u>Section</u> <u>5.1</u> of the Company Disclosure Schedule or as expressly contemplated by any other provision of this Agreement or the Three Party Agreement, (y) with the prior written consent of Parent (not to be unreasonably withheld, conditioned or delayed) or (z) as required by applicable Law, the Company shall, and shall cause each other member of the Company Group to, conduct its operations in the ordinary course of business and shall, and shall cause each other member of the Company Group to, use its reasonable best efforts to (i) preserve substantially intact its business organization, (ii) keep available the services of its executive officers, other key employees and pilots, (iii) maintain in effect all material Company Permits and (iv) maintain satisfactory relationships of the Company Group with any persons with which the Company Group has material business relations and with Governmental Entities that have jurisdiction over its business and operations. Without limiting the generality of the foregoing, during the Interim Period, except as permitted by clauses (x) through (z) above, the Company shall not, and shall cause each other member of the Company Group not to<u>:</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) amend or otherwise change (whether by merger, consolidation, conversion or otherwise) (i) the Company Charter or Company Bylaws or (ii) the comparable organizational documents of any other member of the Company Group;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) issue, sell, pledge, convey, dispose of (by merger, consolidation, division, operation of law or otherwise), grant, transfer or encumber, or authorize the issuance, sale, pledge, disposition, grant, transfer, or encumbrance of, any shares of capital stock of, or other Equity Interests in, any member of the Company Group of any class, or securities convertible into, or exchangeable or exercisable for, any shares of such capital stock or other Equity Interests, or any options, warrants or other rights of any kind to acquire any shares of such capital stock or other Equity Interests or such convertible or exchangeable securities, or any other ownership interest (including any such interest represented by Contract right), of such member of the Company Group, other than (i) the issuance of shares of Company Common Stock upon the vesting of outstanding equity awards as set forth in <u>Section 3.2(b)</u> in accordance with their terms (whether such equity awards are outstanding as of the date hereof or are granted after the date hereof in accordance with <u>Section 5.1(b)</u> of the Company Disclosure Letter) or (ii) the issuance of shares of Company Common Stock upon the exercise of the Company Warrants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) declare, set aside, make or pay any dividend or other distribution (whether payable in cash, stock, property or a combination thereof) with respect to any of its capital stock or enter into any agreement with

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respect to the voting or registration of any of its capital stock, except any dividend or distribution declared, set aside, made, or paid by any member of the Company Group to any other member of the Company Group;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) reclassify, combine, split, subdivide or amend the terms of, or redeem, purchase or otherwise acquire (by merger, consolidation, operation of law, acquisition of stock, other equity interests or assets, formation of a joint venture or otherwise), directly or indirectly, any of its capital stock or other Equity Interests, or authorize or propose the issuance of capital stock or any other Equity Interests in respect of, in lieu of or in substitution for shares of its capital stock or other Equity Interests, except for the vesting or settlement of any outstanding equity awards set forth in <u>Section 3.2(b)</u> or to fund any Tax withholding obligations of a member of the Company Group in connection with the vesting or settlement of any outstanding equity awards in accordance with the terms of such award or by any member of the Company Group to any other member of the Company Group;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) merge or consolidate any member of the Company Group with any Person or adopt a plan of complete or partial liquidation or resolutions providing for a complete or partial liquidation, dissolution, restructuring, recapitalization, conversion or similar reorganization of any member of the Company Group; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) agree, resolve, authorize or enter into any Contract or otherwise make any commitment, in each case to do any of the foregoing.

Without limiting <u>Section 5.1</u>, nothing contained in this Agreement will give Parent, directly or indirectly, the right to control or direct the operations of the Company prior to the Effective Time. Prior to the Effective Time, the Company will exercise, consistent with the terms and conditions of this Agreement, including <u>Section 5.1</u>, complete control and supervision over its operations.

Section 5.2 <u>Conduct of Business by Parent</u>. During the Interim Period, except (x) as expressly set forth in <u>Section</u> <u>5.2</u> of the Parent Disclosure Schedule or as expressly contemplated by any other provision of this Agreement (including, without limitation, the Plan of Conversion) or the Three Party Agreement, (y) with the prior written consent of the Company (not to be unreasonably withheld, conditioned or delayed) or (z) as required by applicable Law, Parent shall, and shall cause each other member of the Parent Group to, conduct its operations in the ordinary course of business and shall, and shall cause each other member of the Parent Group to, use its reasonable best efforts to (i) preserve substantially intact its business organization, (ii) keep available the services of its executive officers, other key employees and pilots, (iii) maintain in effect all material Parent Permits and (iv) maintain satisfactory relationships of the Parent Group with any persons with which the Parent Group has material business relations and with Governmental Entities that have jurisdiction over its business and operations. Without limiting the generality of the foregoing, during the Interim Period, except as permitted by clauses (x) through (z) above, Parent shall not, and shall cause each other member of the Parent Group not to<u>:</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) amend or otherwise change (whether by merger, consolidation, conversion or otherwise) (i) the Parent Charter or Parent Bylaws, (ii) the comparable organizational documents of any other member of the Parent Group, (iii) the Post-Conversion Parent Charter or Post-Conversion Parent Bylaws (in each case, following the Conversion), or (iv) the Parent Treasury Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) issue, sell, pledge, convey, dispose of (by merger, consolidation, division, operation of law or otherwise), grant, transfer or encumber, or authorize the issuance, sale, pledge, disposition, grant, transfer, or encumbrance of, any shares of capital stock of, or other Equity Interests in, any member of the Parent Group of any class, or securities convertible into, or exchangeable or exercisable for, any shares of such capital stock or other Equity Interests, or any options, warrants or other rights of any kind to acquire any shares of such capital stock or other Equity Interests or such convertible or exchangeable securities, or any other ownership interest (including any such interest represented by Contract right), of such member of the Parent Group, other than (i) the issuance of shares of Parent Common Stock upon the vesting of equity award that are outstanding as of the date of this Agreement as set forth in <u>Section 4.2(b)</u> of the Parent Disclosure Schedule in accordance with their

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terms and those equity awards disclosed therein to be issued to members of Parent's board of director pursuant to annual equity grants and to the executive officers of Parent pursuant to the terms of their respective employment agreements, or (ii) the issuance of shares of Parent Common Stock upon the exercise of the Parent Warrants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) sell, pledge, convey, abandon, allow to lapse or expire, fail to renew or maintain, dispose of (by merger, consolidation, division, operation of Law or otherwise), transfer, lease, license or subject to any Lien (other than a Permitted Lien) any material property or assets (including any material Intellectual Property Rights) of any member of the Parent Group (other than non-exclusive licenses of Intellectual Property Rights granted in the ordinary course of business), except (i) pursuant to or as required by, any of the Contracts in effect as of the date of this Agreement and previously made available to the Company or (ii) any sale, pledge, conveyance, consolidation, division, transfer, lease, license, or Lien solely between or among the Parent Group;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) declare, set aside, make or pay any dividend or other distribution (whether payable in cash, stock, property or a combination thereof) with respect to any of its capital stock or enter into any agreement with respect to the voting or registration of any of its capital stock, except any dividend or distribution declared, set aside, made, or paid by any member of the Parent Group to any other member of the Parent Group;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) reclassify, combine, split, subdivide or amend the terms of, or redeem, purchase or otherwise acquire (by merger, consolidation, operation of law, acquisition of stock, other equity interests or assets, formation of a joint venture or otherwise), directly or indirectly, any of its capital stock or other Equity Interests, or authorize or propose the issuance of capital stock or any other Equity Interests in respect of, in lieu of or in substitution for shares of its capital stock or other Equity Interests, except for the vesting or settlement of any Parent RSUs or Parent Restricted Stock Awards set forth in <u>Section 4.2(b)</u> or to fund any Tax withholding obligations of a member of the Parent Group in connection with the vesting or settlement of any Parent RSUs or Parent Restricted Stock Awards in accordance with the terms of such award or by any member of the Parent Group to any other member of the Parent Group;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) merge or consolidate any member of the Parent Group with any Person or adopt a plan of complete or partial liquidation or resolutions providing for a complete or partial liquidation, dissolution, restructuring, recapitalization, conversion or similar reorganization of any member of the Parent Group;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) acquire (including by merger, consolidation, operation of Law, or acquisition of stock or other equity interests or assets, formation of a joint venture or otherwise) any interest in any Person or any assets, other than the purchase or acquisition of equipment, goods, technology, non-exclusive licenses under Intellectual Property Rights, or other materials, in each case, in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) enter into any new line of business or terminate any line of business existing as of the date of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (i) voluntarily repurchase, voluntarily prepay or incur any Indebtedness, in each case, (ii) make any loans, advances or capital contributions to, or investments in, any other Person (other than a member of the Parent Group), (iii) enter into any "keep well" or other Contract to maintain any financial statement or similar condition of another Person that is not a member of the Parent Group or enter into any arrangement having the economic effect of any of the foregoing or (iv) assume, guarantee or endorse, or otherwise become liable or responsible for, similar obligations contemplated in clauses (i) and (ii) of any Person that is not a member of the Parent Group;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) enter, extend or renew or otherwise modify, amend or terminate or waive any material rights or obligations under any Parent Material Contract (or any Contract that would have been a Parent Material Contract if in existence as of the date hereof);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) make or authorize any capital expenditure, except for capital expenditures expressly set forth in the capital expenditures budget set forth on <u>Section 5.2(k)</u> of the Parent Disclosure Schedule;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) except to the extent required by (i) applicable Law or (ii) the existing terms of any Parent Benefit Plan or Parent CBA previously made available to the Company: (A) increase the compensation or benefits payable or to become payable to any Parent Service Provider (except in the ordinary course of business consistent with past practice with respect to any Parent Service Provider whose annual base compensation does not exceed $150,000), (B) grant any additional rights to severance or termination pay to, or enter into or amend any severance agreement with, any Parent Service Provider (other than in the ordinary course of business consistent with past practice in connection with a promotion of any Parent Service Provider whose annual base compensation, after such promotion, does not exceed $150,000), (C) establish, terminate, adopt, enter into or amend any bonus, profit sharing, thrift, pension, retirement, deferred compensation, retention, termination or severance plan, agreement, trust, fund, policy or other arrangement for the benefit of any Parent Service Provider (other than in the ordinary course of business consistent with past practice in connection with the hiring of any new Servicer Provider permitted under clause (E) below), (D) loan or advance any money or property to any Parent Service Provider (other than in connection with ordinary course business expense reimbursement and advances), (E) hire any Parent Service Provider, other than any Parent Service Provider whose anticipated annual base compensation does not exceed $150,000 in the ordinary course of business and on terms consistent with similarly situated Parent Service Providers, (F) terminate (other than termination for cause, death or disability) any Parent Service Provider, other than any Parent Service Provider whose annual base compensation does not exceed $150,000 in the ordinary course of business, or (G) make any material change to the terms and conditions of employment applicable to any group of employees, as reflected in work rules, employee handbooks, policies and procedures, or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) (i) terminate, discontinue, close or dispose of any facility or business operation, or lay off any employees, or (ii) implement any early retirement or separation program, or any program providing early retirement window benefits or announce or plan any such action or program for the future;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) enter into or amend any collective bargaining agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) forgive any material loans to Parent Service Providers or any of their respective Affiliates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) make any material change in accounting policies, practices, principles, methods or procedures in effect as of September 30, 2024, other than as required by GAAP or by applicable Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) make any material adverse change to any privacy policy or to the security or operation of any Parent IT Assets, except in each case as required by applicable Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) enter into, terminate or materially amend any Parent Related Party Transaction other than as permitted pursuant to <u>Section 5.2(l);</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) implement any new policies or practices (or make any material changes to existing policies or practices) with respect to equity, interest rate, currency or commodity derivatives or hedging transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) compromise, settle or agree to settle any Proceeding, other than any compromise, settlement or agreement for the payment of monetary damages (and compliance with confidentiality and other similar customary provisions) by Parent of $100,000 or less individually or $250,000 or less in the aggregate and is not covered by any Parent Insurance Policy or paid by the respective insurers thereunder, in each case as its sole remedy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) (i) make, change or rescind any material Tax election; (ii) settle or compromise any material Tax liability or claim or assessment for a material amount of Taxes; (iii) change (or request to change) any method of accounting for Tax purposes; (iv) file an amendment to any material Tax Return; (v) waive or extend any statute of limitations in respect of a period within which an assessment or reassessment of material Taxes may be issued or in respect of any material Tax attribute that would give rise to any claim or assessment of Taxes of or with

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respect to the Parent Group (or its respective income, assets and operations) other than any extension pursuant to an extension to file any Tax Return; (vi) knowingly surrender or allow to expire any right to claim a refund of Taxes; (vii) enter into any "closing agreement" as described in Section 7121 of the Code (or any similar Legal Requirement) with any Governmental Entity; (viii) incur any material liability for Taxes other than in the ordinary course of business; (ix) prepare any material Tax Return in a manner inconsistent with past practice; or (x) take any action (or knowingly fail to take any action) that would reasonably be expected to prevent, impair or impede the Intended Tax Treatment (as defined below);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) write up, write down or write off the book value of any tangible assets, except for depreciation, amortization or impairment in accordance with GAAP consistently applied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) change the seat count, main cabin configuration or on-board amenities (including in-flight entertainment and wireless internet) of any aircraft subject to future delivery to Parent under any Parent Aircraft Purchase Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) take any action, or fail to take action, which action or failure would be reasonably expected to result in the revocation, termination, cancellation or withdrawal of any Parent Slots (excluding temporary returns to the FAA);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) fail to continue, in respect of all Parent Aircraft, all material maintenance programs applicable to such Parent Aircraft in the ordinary course of business (except as required by applicable Law), including using reasonable best efforts to keep all such Parent Aircraft in such condition as may be necessary to enable the airworthiness certification of such Parent Aircraft under the Federal Aviation Act to be maintained in good standing at all times;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) (i) take any action that would cause any air carrier member of the Parent Group to fail to be, or fail to be owned and controlled by a "citizen of the United States" as defined in 49 U.S.C. § 40102(a)(15) of the Federal Aviation Act and as interpreted by DOT, or (ii) take any action that would cause any member of the Parent Group to fail to continue to be fully authorized and qualified to operate as an "air carrier" within the meaning of such Act operating under certificates and exemptions issued pursuant to such Act (49 U.S.C. §§ 40102(a)(2), 40109- and 41101-41112); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) agree, resolve, authorize or enter into any Contract or otherwise make any commitment, in each case to do any of the foregoing.

In addition, from the date hereof through the Closing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Parent shall remain current and compliant in all material respects with all of its Indebtedness and creditor obligations, including the Mesa Obligations (as defined in the Three Party Agreement), and shall not incur, assume, guarantee or otherwise become liable for any incremental Indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) except in the ordinary course of business consistent with past practice, Parent shall not enter into any new Contracts with third Persons or employees, including labor groups, that create new liabilities or financial obligations for Parent or, after the Closing, the Surviving Corporation (including, for the avoidance of doubt, any new collective bargaining agreements, letters of agreement or any amendments thereto), nor will Parent have instituted any wage rate increases for any of its employee groups, in each case without the Company's prior written consent (not to be unreasonably withheld, conditioned or delayed);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Parent shall use its cash and cash equivalents only in the ordinary course of business or to repay, retire or otherwise extinguish the Mesa Obligations as and to the extent contemplated by the Three Party Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Parent shall not make any new purchases of aircraft, engines or any other capital assets, and shall not enter into any new strategic relationships, software license agreements or other material long term Contracts.

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Without limiting <u>Section 5.2</u>, nothing contained in this Agreement will give the Company, directly or indirectly, the right to control or direct the operations of Parent prior to the Effective Time. Prior to the Effective Time, Parent will exercise, consistent with the terms and conditions of this Agreement, including <u>Section 5.2</u>, complete control and supervision over its operations.

Section 5.3 <u>Access to Information; Confidentiality</u>. Except as required pursuant to any confidentiality agreement or similar agreement or arrangement to which Parent is a party, and except (a) as would reasonably be expected to result in the loss or waiver of any attorney-client, work product or other applicable privilege (<u>provided</u>, that to the extent Parent or any of its Representatives withholds information or access due to the risk of loss or waiver of such privilege, Parent or such Representative shall notify the Company of such withholding and shall use reasonable best efforts to communicate such information in a manner that does not risk such loss or waiver), (b) for any access to a Contract to which Parent or any of its Subsidiaries is a party or is otherwise bound would violate or cause a default under such Contract (<u>provided</u>, that to the extent Parent or any of its Representatives withholds information or access due to the risk of such Contract violation or default, Parent or such Representative shall notify the Company of such withholding and shall use reasonable best efforts to communicate such information in a manner that does not result in such violation or default); (c) for such documents or information as are reasonably pertinent to any adverse Proceeding that is pending between Parent, on the one hand, and the Company, on the other hand; or (d) to the extent any applicable Law requires Parent to restrict or otherwise prohibit access to such documents or information (<u>provided</u>, that to the extent Parent or any of its Representatives withholds information or access due to such restriction or prohibition, Parent or such Representative shall notify the Company of such withholding and shall use reasonable best efforts to communicate such information in a manner that does not result in such restriction or prohibition), during the Interim Period, Parent shall, and shall cause each of its directors, officers and employees, and shall instruct each of its accountants, consultants, legal counsel, advisors, agents and other representatives to: (i) provide to the Company Group and the Company's Representatives reasonable access at reasonable times during normal operating hours upon prior written notice to the officers, employees, agents, properties, offices and other facilities of the Parent Group and to the Contracts, books and records thereof and (ii) furnish promptly such information concerning the business, properties, Contracts, assets, liabilities, personnel and other aspects of the Parent Group as the Company or the Company's Representatives may reasonably request in good faith and that is reasonably related to the consummation of the Merger or for integration planning; <u>provided</u>, that no investigation pursuant to this <u>Section</u> <u>5.3</u> shall affect or be deemed to modify any representation or warranty made by Parent herein or any of the conditions to the obligations of the Parties under this Agreement; <u>provided</u>, <u>further</u>, that any investigation pursuant to this <u>Section</u> <u>5.3</u> shall be conducted in such manner as not to interfere unreasonably with the conduct of the Parent Group. The information referred to in the previous sentence shall be subject to the Mutual Nondisclosure Agreement, dated as of March 19, 2023, by and between the Company and Parent (the "<u>Confidentiality Agreement</u>"); <u>provided</u>, that nothing in the Confidentiality Agreement shall restrict the Company's ability to take any of the actions expressly contemplated by this Agreement.

Section 5.4 <u>Parent No-Shop</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Parent shall, and shall cause the other members of the Parent Group and its and their respective directors and officers to, and shall instruct its and their other Representatives to: (A) immediately cease and cause to be terminated any solicitation, discussions or negotiations with any third Persons that may be ongoing with respect to any Parent Acquisition Proposal, or any expression of interest, discussions, offer or negotiations that would reasonably be expected to lead to a Parent Acquisition Proposal, (B) promptly (and in any event within 24 hours after the date of this Agreement) instruct each such Person to return to Parent or destroy any non-public information previously furnished to such Person or to any Person's Representatives by or on behalf of Parent and (C) promptly (and in any event within 24 hours after the date of this Agreement) terminate all physical and electronic data room access previously granted to such Person and its Representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as expressly permitted by this <u>Section</u> <u>5.4</u>, Parent shall not, and shall cause the other members of the Parent Group and its and their respective directors and officers not to, and shall instruct its and

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their other Representatives not to, directly or indirectly: (A) solicit, initiate, knowingly encourage or facilitate any expression of interest, proposal or offer that constitutes or would reasonably be expected to lead to a Parent Acquisition Proposal, (B) participate in any discussions or negotiations relating to any Parent Acquisition Proposal with any third Person other than the Company, (C) furnish to any Person other than the Company any information in connection with a Parent Acquisition Proposal or any expression of interest, proposal or offer that would reasonably be expected to lead to a Parent Acquisition Proposal, (D) enter into any agreement, letter of intent, memorandum of understanding, agreement in principle, acquisition agreement, merger agreement, option or other similar Contract providing for or otherwise relating to any Parent Acquisition Proposal (other than an Acceptable Confidentiality Agreement in accordance with the terms of this Agreement) or that is intended to result in, or would reasonably be expected to lead to, any Parent Acquisition Proposal (each, a "<u>Parent Alternative Acquisition Agreement</u>") or (E) submit any Parent Acquisition Proposal or any matter related thereto to the vote of the stockholders of Parent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Parent shall not terminate, waive, amend or modify any provision of any "standstill" provision of any existing confidentiality or other agreement to which it or any other member of the Parent Group is a party, and Parent shall use reasonable best efforts to enforce such provision of any such agreement; <u>provided</u>, <u>however</u>, that Parent may grant a waiver of, and will not be obligated to enforce, any such provision in any particular instance if the Parent Board determines in good faith, after consultation with outside legal counsel, that the failure to grant such waiver in such particular instance would reasonably be expected to be inconsistent with the Parent Board's exercise of its fiduciary duties under Nevada law and Parent promptly (and in any event within 24 hours) notifies the Company of any such waiver.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) From and after the date of this Agreement, Parent shall promptly (and in any event within 24 hours) (i) notify the Company of (A) any Parent Acquisition Proposal (including any material modification to the terms of any such Parent Acquisition Proposal) that is received, to the Knowledge of Parent (which, for this purpose, will be deemed to include each member of the Parent Board and Parent's officers and will not be deemed to be only as of the date of this Agreement), by Parent or any of its Representatives from any Person (other than the Company) or (B) any requests for non-public information, or any discussions or negotiations sought to be initiated or continued with Parent or any of its Representatives, in each case, concerning the making of a Parent Acquisition Proposal or any indication of interest, proposal or offer that would reasonably be expected to lead to a Parent Acquisition Proposal and (ii) disclose to the Company the identity of such Person making, and provide an unredacted copy of, any such written Parent Acquisition Proposal or request (or, if made orally, a reasonably detailed written description of such Parent Acquisition Proposal or request). Parent shall promptly upon receipt thereof (and in any event within 24 hours) provide the Company (and its outside legal counsel) with copies of all drafts and final versions of definitive or other material agreements including schedules and exhibits thereto and any other material correspondence relating to such Parent Acquisition Proposal, in each case exchanged between Parent or any of its Representatives, on the one hand, and the Person making such Parent Acquisition Proposal or any of its Representatives, on the other hand. Parent shall keep the Company reasonably informed of the status and terms (including with respect to any change in price or other material amendments) of any such Parent Acquisition Proposal or request. Parent shall promptly, and in any event within 24 hours, following a determination by the Parent Board that a Parent Acquisition Proposal is a Parent Superior Proposal, notify the Company of such determination (it being understood that the delivery of such notice and the determination to so deliver such notice shall not, by itself, constitute a Change of Parent Recommendation).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding anything to the contrary contained in this <u>Section</u> <u>5.4</u>, if at any time on or after the date of this Agreement until the earlier of (1) receipt of the Parent Stockholder Approval and (2) the termination of this Agreement in accordance with its terms, (i) Parent has received a *bona fide* written Parent Acquisition Proposal from a third Person, (ii) such Parent Acquisition Proposal did not result from a breach of this <u>Section</u> <u>5.4</u>, (iii) the Parent Board determines in good faith, after consultation with its financial advisor and outside legal counsel, that such Parent Acquisition Proposal constitutes or would reasonably be expected to lead to a Parent Superior Proposal, and (iv) after consultation with its outside legal counsel, the Parent Board determines in good faith that the failure to take such actions would reasonably be expected to be inconsistent

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with the Parent Board's exercise of its fiduciary duties under Nevada law, then Parent may participate in discussions or negotiations with the Person making such Parent Acquisition Proposal regarding such Parent Acquisition Proposal and, subject to receiving an executed Acceptable Confidentiality Agreement from such Person, furnish information with respect to the Parent Group to the Person making such Parent Acquisition Proposal pursuant to such Acceptable Confidentiality Agreement; <u>provided</u>, that (x) Parent provides written notice to the Company of the determinations referenced in <u>clause (iii)</u> and <u>clause (iv)</u> of this <u>Section</u> <u>5.4(e)</u> promptly (and in any event within 24 hours) (it being understood that the delivery of such notice and the determination to so deliver such notice shall not, by itself, constitute a Change of Parent Recommendation or constitute a breach of this <u>Section</u> <u>5.4</u>) and (y) Parent provides to the Company in writing (or makes available) any information concerning Parent provided to such other Person which was not previously provided to the Company or its Representatives prior to or substantially concurrently with the time that it is provided to such Person. Parent shall deliver to the Company a copy of any executed Acceptable Confidentiality Agreement promptly (and in any event within 24 hours) following its execution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Subject to <u>Section</u> <u>5.4(g)</u> and <u>Section</u> <u>5.4(h)</u>, during the Interim Period, neither Parent nor the Parent Board nor any committee thereof shall, or shall publicly propose to, (i) withhold, withdraw, modify or qualify, in each case in a manner adverse to the Company, the Parent Recommendation, (ii) fail to include the Parent Recommendation in the Proxy Statement, (iii) publicly approve, publicly recommend or publicly declare advisable any Parent Acquisition Proposal, (iv) submit any Parent Acquisition Proposal or any matter related thereto to the vote of the stockholders of Parent, (v) following the public disclosure of any Parent Acquisition Proposal, fail to publicly reaffirm the Parent Recommendation as promptly as reasonably practicable (but in any event within three Business Days) after receipt of any written request to do so from the Company (<u>provided</u>, that if the end of such three Business Day window would occur on or after the date of the Parent Stockholder Meeting, then Parent shall instead be required to publicly reaffirm the Parent Recommendation no later than one Business Day prior to the Parent Stockholder Meeting), (vi) with respect to any Parent Acquisition Proposal initiated through a tender or exchange offer pursuant to Rule 14d-2 under the Exchange Act, take any action or make any recommendation or public statement in connection therewith other than an unequivocal recommendation against such offer or (vii) authorize, commit, resolve or agree, in each case in a legally binding manner, to take any such actions (each such action set forth in <u>clauses (i)</u> through <u>(vii)</u> of this <u>Section</u> <u>5.4(f)</u> being referred to as a "<u>Change of Parent Recommendation</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Notwithstanding anything to the contrary contained in this Agreement, if (i) Parent has received a bona fide written Parent Acquisition Proposal from a third Person that did not result from a breach of this <u>Section</u> <u>5.4</u> and that the Parent Board determines in good faith, after consultation with its financial advisor and outside legal counsel, constitutes a Parent Superior Proposal, taking into account the results of any negotiations with the Company as contemplated by clause <u>(ii)</u> of this <u>Section</u> <u>5.4(g)</u> and any offer from the Company contemplated by clause <u>(iii)</u> of this <u>Section</u> <u>5.4(g)</u>, and (ii) the Parent Board determines in good faith, after consultation with its outside legal counsel, that a failure to make a Change of Parent Recommendation or cause Parent to enter into a Parent Alternative Acquisition Agreement with respect to such Parent Superior Proposal would reasonably be expected to be inconsistent with the Parent Board's exercise of its fiduciary duties under Nevada law, then, prior to the time the Parent Stockholder Approval is obtained, the Parent Board may take the following actions: (y) effect a Change of Parent Recommendation or (z) terminate this Agreement pursuant to <u>Section</u> <u>7.1(c)(ii)</u> to enter into a Parent Alternative Acquisition Agreement with respect to such Parent Superior Proposal; <u>provided</u>, <u>however</u>, that Parent may not terminate this Agreement pursuant to the foregoing <u>clause (z)</u>, and any purported termination pursuant to the foregoing <u>clause (z)</u> will be void and of no force or effect, unless Parent concurrently pays the Termination Fee in accordance with <u>Section</u> <u>7.1(c)(ii)</u>; and <u>provided</u>, <u>further</u>, that the Parent Board may not effect a Change of Parent Recommendation pursuant to the foregoing <u>clause (y)</u> or terminate this Agreement pursuant to the foregoing <u>clause (z)</u> unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Parent has provided prior written notice to the Company, at least four (4) Business Days in advance (the "<u>Parent</u> <u>Notice Period</u>"), of Parent's intention to take such action (it being understood, for all purposes of this Agreement, that the delivery of such notice and any amendment or update thereto and the

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deliberation and determination to so deliver such notice, update or amendment will not, by themselves, constitute a Change of Parent Recommendation), which notice will specify the material terms and conditions of such Parent Superior Proposal (including all of the information that is specified in <u>Section</u> <u>5.4(d)</u>), and Parent has contemporaneously provided to the Company a copy of all relevant proposed transaction agreements with the Person making such Parent Superior Proposal;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) prior to effecting such Change of Parent Recommendation or terminating this Agreement to enter into a Parent Alternative Acquisition Agreement with respect to such Parent Superior Proposal, Parent shall have, during the Parent Notice Period, negotiated with the Company in good faith (to the extent that the Company desires to negotiate) to make such adjustments in the terms and conditions of this Agreement so that such Parent Acquisition Proposal ceases to constitute a Parent Superior Proposal; <u>provided</u>, that in the event of any material revisions to the Parent Superior Proposal, Parent will be required to deliver a new written notice to the Company and to comply with the requirements of this <u>Section</u> <u>5.4(g)</u> with respect to such new written notice; <u>provided</u>, <u>further</u>, that the Parent Notice Period for any subsequent notice will be shortened from four (4) Business Days to two (2) Business Days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Company shall not have, during the Parent Notice Period, made an offer to modify the terms and conditions of this Agreement, which is set forth in a definitive written amendment to this Agreement delivered to Parent and executed on behalf of the Company, that the Parent Board has in good faith determined (after consultation with its outside legal counsel and its financial advisor) would obviate the need for the Parent Board to effect such Change of Parent Recommendation or terminate this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Parent Notice Period (and any extension thereof) shall have expired.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Notwithstanding anything to the contrary contained in this Agreement, prior to the time the Parent Stockholder Approval is obtained, the Parent Board may make a Change of Parent Recommendation in response to a Parent Intervening Event if the Parent Board has determined in good faith, after consultation with its outside legal counsel, that, in light of such Parent Intervening Event and taking into account the results of any negotiations with the Company as contemplated by clause <u>(ii)</u> of this <u>Section</u> <u>5.4(h)</u> and any offer from the Company contemplated by clause <u>(iii)</u> of this <u>Section</u> <u>5.4(h)</u>, the failure to take such action would reasonably be expected to be inconsistent with the Parent Board's exercise of its fiduciary duties under Nevada law; <u>provided</u>, <u>however</u>, that the Parent Board may not make a Change of Parent Recommendation pursuant to the foregoing unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Parent shall have provided prior written notice to the Company, at least four (4) Business Days in advance (the "<u>Parent</u> <u>Intervening Event Notice Period</u>"), of Parent's intention to make a Change of Parent Recommendation (it being understood, for all purposes of this Agreement, that the delivery of such notice, update or amendment and the deliberation and determination to so deliver such notice, update or amendment shall not, by themselves, constitute a Change of Parent Recommendation), which notice shall specify the Parent Board's reason for proposing to effect such Change of Parent Recommendation and shall describe in reasonable detail the Parent Intervening Event;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) prior to effecting such Change of Parent Recommendation, Parent shall have, during the Parent Intervening Event Notice Period, negotiated with the Company in good faith (to the extent that the Company desires to negotiate) to make such adjustments in the terms and conditions of this Agreement in such a manner that would obviate the need for the Parent Board to effect such Change of Parent Recommendation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Company shall not have, within the Parent Intervening Event Notice Period, made an offer to modify the terms and conditions of this Agreement, which is set forth in a definitive written amendment to this Agreement delivered to Parent and executed on behalf of the Company, that the Parent Board has in good faith determined (after consultation with its outside legal counsel and its financial advisor) would obviate the need for the Parent Board to effect such Change of Parent Recommendation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Parent Intervening Event Notice Period shall have expired.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Nothing contained in this Agreement shall prohibit Parent or the Parent Board (or any committee thereof) from (i) taking and disclosing to the stockholders of Parent a position contemplated by Rule 14e-2(a) promulgated under the Exchange Act or complying with the provisions of Rule 14d-9 promulgated under the Exchange Act (including making a customary "stop, look and listen" communication to Parent's stockholders), (ii) making any disclosure to Parent's stockholders that the Parent Board determines to make in good faith (after consultation with its outside legal counsel) in order to fulfill its fiduciary duties under Nevada law or in order to otherwise comply with applicable Law, (iii) complying with Item 1012(a) of Regulation M-A promulgated under the Exchange Act or (iv) informing any Person of the existence of the provisions contained in this <u>Section</u> <u>5.4</u>; <u>provided</u>, with respect to each of <u>clauses (i)</u>, <u>(ii)</u> and <u>(iii)</u> of this <u>Section</u> <u>5.4(i)</u>, that any such disclosure (other than a customary "stop, look and listen" communication to Parent's stockholders) includes the Parent Board Recommendation without any modification or qualification thereof and does not contain a Change of Parent Recommendation. Notwithstanding the foregoing, the public disclosure of a Change of Parent Recommendation effected in accordance with the terms and conditions set forth in <u>Section</u> <u>5.4(g)</u> or <u>Section</u> <u>5.4(h)</u> need not comply with the proviso of the preceding sentence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Parent agrees that if (i) any Subsidiary, director or officer of Parent takes any action or (ii) Parent authorizes or directs any of its other Representatives to take an action, or Parent is made aware of an action by one of its other Representatives and does not subsequently use its reasonable best efforts to prohibit or terminate such action and, in the case of each of <u>clause (i)</u> or <u>clause (ii)</u>, such action would constitute a breach of this <u>Section</u> <u>5.4</u> if taken by Parent, then such action will be deemed to constitute a breach by Parent of this <u>Section</u> <u>5.4</u>.

Section 5.5 <u>Form S-4 and Proxy Statement; Parent Stockholder Meeting</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As promptly as reasonably practicable following the date of this Agreement, the Parties shall prepare the Form S-4, in which the Proxy Statement shall be included as a prospectus. Once the Parties have mutually agreed that the Form S-4 and the Proxy Statement are in final form, the Company shall, at its sole election, be entitled to utilize the 10 consecutive Business Day period immediately thereafter (the "<u>10 BD Solicitation Period</u>") in which to solicit and use its reasonable best efforts to obtain the Company Stockholder Approval, should the Company elect, in its sole discretion, to do so prior to (rather than following) the effectiveness of the Form S-4, and the Company may provide the Form S-4 and the Proxy Statement in such final forms to the Company Stockholders for such purpose. Notwithstanding anything to the contrary contained herein, without the Company's prior written consent, Parent shall not file or permit to be filed with the SEC the Form S-4 or the Proxy Statement prior to the first Business Day following the Company having waived in writing the Company's termination right under <u>Section</u> <u>7.1(d)(ix)</u> (the "<u>S-4/Proxy Permitted Filing Date</u>"), and upon the S-4/Proxy Permitted Filing Date, Parent shall promptly file with the SEC the Form S-4 and the Proxy Statement (assuming both are then in final form).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No filing of, or amendment or supplement to, the Form S-4 or Proxy Statement, or response to SEC comments with respect thereto, will be made by Parent without the Company's prior written consent and without providing the Company and its outside counsel and other advisors a reasonable opportunity to review and comment thereon, and Parent shall consider in good faith all comments reasonably proposed by the Company; <u>provided</u>, <u>however</u>, that Parent, in connection with a Change of Parent Recommendation, may amend or supplement the Proxy Statement (including by incorporation by reference) to effect such change without the prior review or approval of the Company, provided that such amendment or supplement also includes a statement of the reasons of the Parent Board for making such Change of Parent Recommendation and additional information reasonably related to the foregoing. The Parties shall use their reasonable best efforts to have the Form S-4 declared effective under the Securities Act and the Proxy Statement cleared of any comments under the Exchange Act as promptly as practicable after the filing thereof. The Parties shall use their reasonable best efforts to (i) cause the Form S-4 and the Proxy Statement, when filed, to comply in all material respects with all legal requirements applicable thereto and (ii) respond as promptly as reasonably practicable to and resolve all comments received from the SEC or its staff concerning the Form S-4 or the Proxy Statement. Parent shall cause

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the Proxy Statement to be first mailed to its stockholders as promptly as practicable after the Form S-4 is declared effective under the Securities Act. Parent shall promptly notify the Company upon the receipt of any comments from the SEC or any request from the SEC for amendments or supplements to the Form S-4 or Proxy Statement, and shall, as promptly as practicable after receipt thereof, provide the Company with copies of all material correspondence relating to the Form S-4 or the Proxy Statement between it and its Representatives, on the one hand, and the SEC, on the other hand, and all written comments with respect to the Form S-4 or the Proxy Statement received from the SEC or its staff and advise the Company of any oral comments with respect to the Form S-4 or the Proxy Statement received from the SEC or its staff; <u>provided</u>, that the Company and its Representatives shall be entitled to contemporaneously participate in any and all communications that Parent has with the SEC or its staff regarding the Form S-4 or the Proxy Statement. If at any time prior to the Effective Time any information relating to Parent or the Company, or any of their respective officers or directors, is discovered by Parent or the Company that should be set forth in an amendment or supplement to the Form S-4 or Proxy Statement so that the Form S-4 or Proxy Statement would not include a misstatement of a material fact or omit to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, the Party that discovers such information shall promptly notify the other Party and Parent shall use its reasonable best efforts to cause an appropriate amendment or supplement describing such information to be promptly filed with the SEC and, to the extent required by Law, disseminated to the Parent stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Parent shall duly establish a record date for and duly call, give notice of and hold a meeting of its stockholders (the "<u>Parent Stockholder Meeting</u>") as promptly as practicable after the Form S-4 is declared effective under the Securities Act solely for the purpose of obtaining the Parent Stockholder Approval and, if applicable, any approvals related thereto including the advisory vote required by Rule 14a-21(c) under the Exchange Act in connection therewith, and shall, subject to <u>Section</u> <u>5.4</u>, through the Parent Board, recommend to its stockholders approval of the Parent Stockholder Approval. In furtherance of the foregoing and in consultation with the Company, as soon as reasonably practicable after the date of this Agreement, Parent shall commence a broker search pursuant to Section 14a-13 of the Exchange Act. Parent shall not, without the written consent of the Company, adjourn, postpone, cancel, recess or reschedule the Parent Stockholder Meeting; <u>provided</u>, <u>however</u>, that Parent may postpone or adjourn the Parent Stockholder Meeting (i) if a quorum has not been established; (ii) to allow reasonable additional time for the filing and mailing of any supplemental or amended disclosure which Parent has determined in good faith after consultation with outside legal counsel is required under applicable Law; or (iii) to allow reasonable additional time to solicit additional proxies, if and to the extent that Parent reasonably believes the requisite Parent Stockholder Approval would not otherwise be obtained; <u>provided</u>, <u>however</u>, that the Parent Stockholder Meeting shall not be postponed or adjourned (x) to a date later than the third Business Day preceding the Outside Date or (y) for more than twenty days in the aggregate from the Originally Scheduled Date, in each case, without the prior written consent of the Company. Parent shall use reasonable best efforts to advise the Company at least on a daily basis on each of the last seven Business Days prior to the date of the Parent Stockholder Meeting as to the aggregate tally of proxies received by Parent with respect to the Parent Stockholder Approval. Parent shall permit the Company and its Representatives to attend the Parent Stockholder Meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding any Change of Parent Recommendation, Parent shall solicit from its stockholders proxies in favor of Parent Stockholder Approval and use reasonable best efforts to take all other actions necessary or advisable to secure the Parent Stockholder Approval. Without limiting the generality of the foregoing, if, at the time of the Originally Scheduled Date, a quorum has not been established or Parent has not received proxies representing a sufficient number of Shares for the Parent Stockholder Approvals, then Parent shall, at the request of the Company (to the extent permitted by Law), adjourn the Parent Stockholder Meeting to a date specified by the Company; <u>provided</u>, that Parent shall not be required pursuant to this sentence to adjourn the Parent Stockholder Meeting more than two times or for more than twenty days in the aggregate from the Originally Scheduled Date. Without the prior written consent of the Company, the matters expressly contemplated by the Parent Stockholder Approval will be the only matters (other than matters of procedure and matters required by Law to be voted on by the stockholders of Parent in connection with the adoption of this

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Agreement and the transactions contemplated hereby) that Parent will propose to be acted on by its stockholders at the Parent Stockholder Meeting. Parent agrees that, unless this Agreement has been terminated in accordance with <u>Article VII</u>, Parent's obligations to hold the Parent Stockholder Meeting pursuant to this <u>Section</u> <u>5.5</u> will not be affected by the commencement, public proposal, public disclosure or communication to Parent or any of its Representatives of any Parent Acquisition Proposal or by any Change of Parent Recommendation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Parties shall use their respective reasonable best efforts to cause the shares of Parent Common Stock issued in the Primary Issuance to be registered on the Form S-4 to be filed pursuant to this <u>Section</u> <u>5.5</u>, to the extent permitted by applicable Law, or otherwise to cause such shares to be registered pursuant to Form S-1 or such other registration statement as prescribed by securities laws (and, in such instance, all references to the Form S-4 herein shall be deemed to include references to Form S-1 or such other registration statement, if applicable).

Section 5.6 <u>Company No-Shop</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company shall, and shall cause the other members of the Company Group and its and their respective directors and officers to, and shall instruct its and their other Representatives to: (A) immediately cease and cause to be terminated any solicitation, discussions or negotiations with any third Persons that may be ongoing with respect to any Company Acquisition Proposal, or any expression of interest, discussions, offer or negotiations that would reasonably be expected to lead to a Company Acquisition Proposal, (B) promptly (and in any event within 24 hours after the date of this Agreement) instruct each such Person to return to Parent or destroy any non-public information previously furnished to such Person or to any Person's Representatives by or on behalf of the Company and (C) promptly (and in any event within 24 hours after the date of this Agreement) terminate all physical and electronic data room access previously granted to such Person and its Representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as expressly permitted by this <u>Section</u> <u>5.6</u>, the Company shall not, and shall cause the other members of the Company Group and its and their respective directors and officers not to, and shall instruct its and their other Representatives not to, directly or indirectly: (A) solicit, initiate, knowingly encourage or facilitate any expression of interest, proposal or offer that constitutes or would reasonably be expected to lead to a Company Acquisition Proposal, (B) participate in any discussions or negotiations relating to any Company Acquisition Proposal with any third Person other than Parent, (C) furnish to any Person other than Parent any information in connection with a Company Acquisition Proposal or any expression of interest, proposal or offer that would reasonably be expected to lead to a Company Acquisition Proposal, (D) enter into any agreement, letter of intent, memorandum of understanding, agreement in principle, acquisition agreement, merger agreement, option or other similar Contract providing for or otherwise relating to any Company Acquisition Proposal (other than an Acceptable Confidentiality Agreement in accordance with the terms of this Agreement) or that is intended to result in, or would reasonably be expected to lead to, any Company Acquisition Proposal (each, a "<u>Company Alternative Acquisition Agreement</u>") or (E) submit any Company Acquisition Proposal or any matter related thereto to the vote of the stockholders of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company shall not terminate, waive, amend or modify any provision of any "standstill" provision of any existing confidentiality or other agreement to which it or any other member of Company Group is a party, and the Company shall use reasonable best efforts to enforce such provision of any such agreement; <u>provided</u>, <u>however</u>, that the Company may grant a waiver of, and will not be obligated to enforce, any such provision in any particular instance if the Company Board determines in good faith, after consultation with outside legal counsel, that the failure to grant such waiver in such particular instance would reasonably be expected to be inconsistent with the Company Board's exercise of its fiduciary duties under Delaware law and the Company promptly (and in any event within 24 hours) notifies Parent of any such waiver.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) From and after the date of this Agreement, the Company shall promptly (and in any event within 24 hours) (i) notify Parent of (A) any Company Acquisition Proposal (including any material modification to the terms of any such Company Acquisition Proposal) that is received, to the Knowledge of the Company (which, for

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this purpose, will be deemed to include each member of the Company Board and the Company's officers and will not be deemed to be only as of the date of this Agreement), by the Company or any of its Representatives from any Person (other than Parent) or (B) any requests for non-public information, or any discussions or negotiations sought to be initiated or continued with the Company or any of its Representatives, in each case, concerning the making of a Company Acquisition Proposal or any indication of interest, proposal or offer that would reasonably be expected to lead to a Company Acquisition Proposal and (ii) disclose to Parent the identity of such Person making, and provide an unredacted copy of, any such written Company Acquisition Proposal or request (or, if made orally, a reasonably detailed written description of such Company Acquisition Proposal or request). The Company shall promptly upon receipt thereof (and in any event within 24 hours) provide Parent (and its outside legal counsel) with copies of all drafts and final versions of definitive or other material agreements including schedules and exhibits thereto and any other material correspondence relating to such Company Acquisition Proposal, in each case exchanged between the Company or any of its Representatives, on the one hand, and the Person making such Company Acquisition Proposal or any of its Representatives, on the other hand. The Company shall keep Parent reasonably informed of the status and terms (including with respect to any change in price or other material amendments) of any such Company Acquisition Proposal or request. The Company shall promptly, and in any event within 24 hours, following a determination by the Company Board that a Company Acquisition Proposal is a Company Superior Proposal, notify Parent of such determination (it being understood that the delivery of such notice and the determination to so deliver such notice shall not, by itself, constitute a Change of Company Recommendation).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding anything to the contrary contained in this <u>Section</u> <u>5.6</u>, if at any time on or after the date of this Agreement until the earlier of (1) receipt of the Company Stockholder Approval and (2) the termination of this Agreement in accordance with its terms, (i) the Company has received a *bona fide* written Company Acquisition Proposal from a third Person, (ii) such Company Acquisition Proposal did not result from a breach of this <u>Section</u> <u>5.6</u>, (iii) the Company Board determines in good faith, after consultation with its financial advisor and outside legal counsel, that such Company Acquisition Proposal constitutes or would reasonably be expected to lead to a Company Superior Proposal, and (iv) after consultation with its outside legal counsel, the Company Board determines in good faith that the failure to take such actions would reasonably be expected to be inconsistent with the Company Board's exercise of its fiduciary duties under Delaware law, then the Company may participate in discussions or negotiations with the Person making such Company Acquisition Proposal regarding such Company Acquisition Proposal and, subject to receiving an executed Acceptable Confidentiality Agreement from such Person, furnish information with respect to the Company Group to the Person making such Company Acquisition Proposal pursuant to such Acceptable Confidentiality Agreement; <u>provided</u>, that (x) the Company provides written notice to Parent of the determinations referenced in <u>clause (iii)</u> and <u>clause (iv)</u> of this <u>Section</u> <u>5.6(e)</u> promptly (and in any event within 24 hours) (it being understood that the delivery of such notice and the determination to so deliver such notice shall not, by itself, constitute a Change of Company Recommendation or constitute a breach of this <u>Section</u> <u>5.6</u>) and (y) the Company provides to Parent in writing (or makes available) any information concerning the Company provided to such other Person which was not previously provided to Parent or its Representatives prior to or substantially concurrently with the time that it is provided to such Person. The Company shall deliver to Parent a copy of any executed Acceptable Confidentiality Agreement promptly (and in any event within 24 hours) following its execution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Subject to <u>Section</u> <u>5.6(g)</u> and <u>Section</u> <u>5.6(h)</u>, during the Interim Period, neither the Company nor the Company Board nor any committee thereof shall, or shall publicly propose to, (i) withhold, withdraw, modify or qualify, in each case in a manner adverse to Parent, the Company Recommendation, (ii) fail to include the Company Recommendation in the official and final set of written materials submitted to the stockholders of the Company soliciting their Company Written Consents, (iii) publicly approve, publicly recommend or publicly declare advisable any Company Acquisition Proposal, (iv) submit any Company Acquisition Proposal or any matter related thereto to the vote of the stockholders of the Company, (v) following the public disclosure of any Company Acquisition Proposal, fail to publicly reaffirm the Company Recommendation as promptly as reasonably practicable (but in any event within three Business Days) after receipt of any written request to do so

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from Parent or (vi) authorize, commit, resolve or agree to take any such actions (each such action set forth in <u>clauses (i)</u> through <u>(vi)</u> of this <u>Section</u> <u>5.6(f)</u> being referred to as a "<u>Change of</u> <u>Company</u> <u>Recommendation</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Notwithstanding anything to the contrary contained in this Agreement, if (i) the Company has received a bona fide written Company Acquisition Proposal from a third Person that did not result from a breach of this <u>Section</u> <u>5.6</u> and that the Company Board determines in good faith, after consultation with its financial advisor and outside legal counsel, constitutes a Company Superior Proposal, taking into account the results of any negotiations with Parent as contemplated by clause <u>(ii)</u> of this <u>Section</u> <u>5.6(g)</u> and any offer from Parent contemplated by clause <u>(iii)</u> of this <u>Section</u> <u>5.6(g)</u>, and (ii) the Company Board determines in good faith, after consultation with its outside legal counsel, that a failure to make a Change of Company Recommendation or cause the Company to enter into a Company Alternative Acquisition Agreement with respect to such Company Superior Proposal would reasonably be expected to be inconsistent with the Company Board's exercise of its fiduciary duties under Delaware law, then, prior to the time the Company Stockholder Approval is obtained, the Company Board may take the following actions: (y) effect a Change of Company Recommendation or (z) terminate this Agreement pursuant to <u>Section</u> <u>7.1(d)(ii)</u> to enter into a Company Alternative Acquisition Agreement with respect to such Company Superior Proposal; <u>provided</u>, <u>however</u>, that the Company may not terminate this Agreement pursuant to the foregoing <u>clause (z)</u>, and any purported termination pursuant to the foregoing <u>clause (z)</u> will be void and of no force or effect, unless the Company concurrently pays the Termination Fee in accordance with <u>Section</u> <u>7.1(d)(ii)</u>; and <u>provided</u>, <u>further</u>, that the Company Board may not effect a Change of Company Recommendation pursuant to the foregoing <u>clause (y)</u> or terminate this Agreement pursuant to the foregoing <u>clause (z)</u> unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company has provided prior written notice to Parent, at least four (4) Business Days in advance (the "<u>Company</u> <u>Notice Period</u>"), of the Company's intention to take such action (it being understood, for all purposes of this Agreement, that the delivery of such notice and any amendment or update thereto and the deliberation and determination to so deliver such notice, update or amendment will not, by themselves, constitute a Change of Company Recommendation), which notice will specify the material terms and conditions of such Company Superior Proposal (including all of the information that is specified in <u>Section</u> <u>5.6(d)</u>), and the Company has contemporaneously provided to Parent a copy of all relevant proposed transaction agreements with the Person making such Company Superior Proposal;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) prior to effecting such Change of Company Recommendation or terminating this Agreement to enter into a Company Alternative Acquisition Agreement with respect to such Company Superior Proposal, the Company shall have, during the Company Notice Period, negotiated with Parent in good faith (to the extent that Parent desires to negotiate) to make such adjustments in the terms and conditions of this Agreement so that such Company Acquisition Proposal ceases to constitute a Company Superior Proposal; <u>provided</u>, that in the event of any material revisions to the Company Superior Proposal, the Company will be required to deliver a new written notice to Parent and to comply with the requirements of this <u>Section</u> <u>5.6(g)</u> with respect to such new written notice; <u>provided</u>, <u>further</u>, that the Company Notice Period for any subsequent notice will be shortened from four (4) Business Days to two (2) Business Days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Parent shall not have, during the Company Notice Period, made an offer to modify the terms and conditions of this Agreement, which is set forth in a definitive written amendment to this Agreement delivered the Company and executed on behalf of Parent, that the Company Board has in good faith determined (after consultation with its outside legal counsel and its financial advisor) would obviate the need for the Company Board to effect such Change of Company Recommendation or terminate this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Company Notice Period (and any extension thereof) shall have expired.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Notwithstanding anything to the contrary contained in this Agreement, prior to the time the Company Stockholder Approval is obtained, the Company Board may make a Change of Company Recommendation in response to a Company Intervening Event if the Company Board has determined in good faith, after consultation with its outside legal counsel, that, in light of such Company Intervening Event and

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taking into account the results of any negotiations with Parent as contemplated by clause <u>(ii)</u> of this <u>Section</u> <u>5.6(h)</u> and any offer from Parent contemplated by clause <u>(iii)</u> of this <u>Section</u> <u>5.6(h)</u>, the failure to take such action would reasonably be expected to be inconsistent with the Company Board's exercise of its fiduciary duties under Delaware law; <u>provided</u>, <u>however</u>, that the Company Board may not make a Change of Company Recommendation pursuant to the foregoing unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company shall have provided prior written notice to Parent, at least four (4) Business Days in advance (the "<u>Company</u> <u>Intervening Event Notice</u> <u>Period</u>"), of the Company's intention to make a Change of Company Recommendation (it being understood, for all purposes of this Agreement, that the delivery of such notice, update or amendment and the deliberation and determination to so deliver such notice, update or amendment shall not, by themselves, constitute a Change of Company Recommendation), which notice shall specify the Company Board's reason for proposing to effect such Change of Company Recommendation and shall describe in reasonable detail the Company Intervening Event;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) prior to effecting such Change of Company Recommendation, the Company shall have, during the Company Intervening Event Notice Period, negotiated with Parent in good faith (to the extent that Parent desires to negotiate) to make such adjustments in the terms and conditions of this Agreement in such a manner that would obviate the need for the Company Board to effect such Change of Company Recommendation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Parent shall not have, within the Company Intervening Event Notice Period, made an offer to modify the terms and conditions of this Agreement, which is set forth in a definitive written amendment to this Agreement delivered to the Company and executed on behalf of Parent, that the Company Board has in good faith determined (after consultation with its outside legal counsel and its financial advisor) would obviate the need for the Company Board to effect such Change of Company Recommendation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Company Intervening Event Notice Period shall have expired.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Nothing contained in this Agreement shall prohibit (i) the Company or the Company Board (or any committee thereof) from making any disclosure to the Company's stockholders that the Company Board determines to make in good faith (after consultation with its outside legal counsel) in order to fulfill its fiduciary duties under Delaware law or in order to otherwise comply with applicable Law (provided, that any such disclosure includes the Company Recommendation without any modification or qualification thereof and does not contain a Change of Company Recommendation), (ii) the Company or the Company Board (or any committee thereof) from informing any Person of the existence of the provisions contained in this <u>Section 5.6</u>, (iii) prohibit members of the Company Board and stockholders of the Company from engaging in discussions and deliberations amongst themselves regarding any Company Acquisition Proposal or other communications received, so long as such discussions and deliberations do not involve any communications with the Person making the proposal or any of its Representatives and are non-public and confidential; or (2) any stockholder of the Company from providing ordinary course communications with any of its current or prospective direct or indirect general partners, limited partners, equity holders, members, managers, lenders or investors who are subject to customary confidentiality restrictions prohibiting further disclosure thereof, and such communications are non-public and confidential or (iv) prohibit any stockholder of the Company from providing ordinary course communications with any of its current or prospective direct or indirect general partners, limited partners, equity holders, members, managers, lenders or investors who are subject to customary confidentiality restrictions prohibiting further disclosure thereof, and such communications are non-public and confidential. Notwithstanding the foregoing, the public disclosure of a Change of Company Recommendation effected in accordance with the terms and conditions set forth in <u>Section</u> <u>5.6(g)</u> or <u>Section</u> <u>5.6(h)</u> need not comply with the proviso of the preceding sentence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The Company agrees that if (i) any Subsidiary, director or officer of the Company takes any action or (ii) the Company authorizes or directs any of its other Representatives to take an action, or the Company is made aware of an action by one of its other Representatives and does not subsequently use its reasonable best efforts to prohibit or terminate such action and, in the case of each of <u>clause (i)</u> or <u>clause (ii)</u>, such action would

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constitute a breach of this <u>Section</u> <u>5.6</u> if taken by the Company, then such action will be deemed to constitute a breach by the Company of this <u>Section</u> <u>5.6</u>.

Section 5.7 <u>Company Stockholder Approval</u>. The Company shall solicit and use its reasonable best efforts to obtain the Company Stockholder Approval by no later than the Parent Stockholder Approval being obtained. The Company shall deliver to Parent a copy of the Company Written Consents evidencing the Company Stockholder Approval and received from the stockholders of the Company as promptly as practicable after the Company Stockholder Approval becomes effective; <u>provided</u>, that the Company may, at its sole option, attempt to obtain the Company Stockholder Approval by holding a special meeting of the Company Stockholders in lieu of soliciting Company Written Consents. The Company acknowledges that its obligations to solicit and use its reasonable best efforts to obtain the Company Stockholder Approval and the Company Written Consents from the stockholders of the Company as provided hereunder shall apply notwithstanding any Change of Company Recommendation.

Section 5.8 <u>Appropriate Action; Consents; Filings</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the terms of this Agreement, the Company and Parent shall use their respective reasonable best efforts to (i) take, or cause to be taken, all appropriate action and do, or cause to be done, all things necessary, proper or advisable under applicable Law or otherwise to consummate and make effective the transactions contemplated by this Agreement as promptly as practicable (and in any event by the Outside Date) and (ii) obtain from any Governmental Entities any consents, licenses, permits, waivers, approvals, authorizations, confirmations, clearances, certificates, exemptions, registrations, variants, deviations, ratings, operations specifications, grants, directives or orders required to be obtained by Parent or the Company or any of their respective Subsidiaries, or to avoid any action or Proceeding by any Governmental Entity (including those in connection with the HSR Act), in connection with the authorization, execution and delivery of this Agreement and the consummation of the transactions contemplated herein, including the Merger.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In furtherance and not in limitation of <u>Section</u> <u>5.8(a)</u>, each Party agrees to (i) file with the FTC and DOJ a Notification and Report Form relating to this Agreement and the transactions contemplated hereby as required by the HSR Act as soon as reasonably practicable and by no later than 30 Business Days after the date hereof and (ii) make any appropriate filings, if necessary or advisable, pursuant to other applicable Competition Laws with respect to the Merger as promptly as reasonably practicable. Each of Parent and the Company shall (i) cooperate and coordinate with the other Party in the making of any filings or submissions that are required to be made under any applicable Laws or requested to be made by any Governmental Entity in connection with the transactions contemplated by this Agreement, (ii) supply the other Party or its outside counsel with any information that may be required or requested by any Governmental Entity in connection with such filings or submissions, (iii) supply any additional information that may be required or requested by the FTC, the DOJ or other Governmental Entities in which any such filings or submissions are made as promptly as reasonably practicable, (iv) use their respective reasonable best efforts to cause the expiration or termination of the applicable waiting periods under any applicable Competition Laws as soon as reasonably practicable following the date of this Agreement (and prior to the Outside Date) and (v) cooperate and coordinate with the other Party in connection with the making of an appeal by the other Party of a Proceeding brought by a Governmental Entity, whether judicial or administrative, challenging or seeking to restrain or prohibit the consummation of the Merger or seeking to compel any divestiture by Parent or the Company or any of their respective Subsidiaries of shares of capital stock or of any business, assets or property, or to impose any limitation on the ability of any of them to conduct their businesses or to own or exercise control of such assets, properties or stock to avoid or eliminate any impediment under the HSR Act, Competition Law, or other applicable Law (an "<u>Antitrust Proceeding</u>"). Without limiting the generality of the foregoing, both Parent and Company (and their respective Subsidiaries and Affiliates) shall contest and defend (and each, in its reasonable discretion, appeal) any Antitrust Proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In furtherance and not in limitation of <u>Section</u> <u>5.8(a)</u>, each Party agrees to make any other appropriate filings, if necessary or advisable, pursuant to any other applicable Laws, Parent Permits or Company

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Permits with respect to the Merger as promptly as reasonably practicable. Each of Parent and the Company will (i) cooperate and coordinate with the other in the making of any filings, registrations, notices, applications, submissions, information or documentation that are required to be made or advisable under any other applicable Laws, Parent Permits or Company Permits or requested to be made by any Governmental Entity in connection with the transactions contemplated by this Agreement, including but not limited to, with the FAA, the DOT under 14 C.F.R. § 204.5, 49 U.S.C. §§ 40109, 41105, and 41110, the TSA and the FCC under the Specified Regulations, (ii) supply the other Party or its outside counsel with any information that may be required or requested by any Governmental Entity in connection with such filings, registrations, notices, applications, submissions, information or documentation, (iii) supply any additional information that may be required or requested by the FAA, the DOT, the FCC, the TSA, foreign CAA or any other Governmental Entities, in connection with any such filings, registrations, notices, applications, submissions, information or documentation as promptly as practicable, and (iv) use their respective reasonable best efforts to obtain all consents, registrations, waivers, exemptions, approvals, confirmations, clearances, permits, certificates, orders, variances, deviations, licenses, ratings, operations specifications, grants, directives and authorizations necessary, proper or advisable to be obtained from, or renewed with, the FAA, the DOT, the FCC, the TSA, foreign CAA and any other applicable Governmental Entity (other than pursuant to Contracts, which are addressed in <u>Section</u> <u>5.8(g)</u>). Parent and the Company will not extend any waiting period under any Competition Laws or enter into any agreement with any Governmental Entity not to consummate the Merger, unless the other Party has consented in writing to such extension or agreement (such consent not to be unreasonably withheld, conditioned or delayed).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Without limiting the generality of anything contained in this <u>Section</u> <u>5.8</u>, each Party will: (i) give the other Party prompt written notice of the making or commencement of any request, inquiry, investigation or Proceeding by or before any Governmental Entity with respect to the Merger or any of the other transactions contemplated by this Agreement; (ii) keep the other Party informed as to the status of any such request, inquiry, investigation or Proceeding; (iii) promptly inform the other Party of any material communication to or from the FTC, the DOJ, the FAA, the DOT, the FCC, the DHS, the TSA, foreign CAA or any other Governmental Entity regarding the Merger; (iv) consult and cooperate with the other Party and consider in good faith the views of the other Party in connection with any filing, analysis, appearance, presentation, memorandum, brief, argument, opinion or proposal made or submitted to a Governmental Entity (other than a Competition Authority) in connection with the Merger or any of the other transactions contemplated by this Agreement, and (v) permit the other Party to review in advance (and to consider in good faith any comments made by the other party in relation to) any material proposed communication (other than communications relating solely to ministerial matters) by such Party to the DOJ or the FTC (collectively, the "<u>Competition Authorities</u>") relating to any request, inquiry, investigation or Proceeding by or before a Competition Authority with respect to the Merger or any of the other transactions contemplated by this Agreement. In addition, except as may be prohibited by any Governmental Entity or by any Law, in connection with any request, inquiry or investigation by, or any Proceeding before, a Competition Authority, each Party will permit authorized Representatives of the other Party to be present at each meeting or conference relating to any such request, inquiry, investigation or Proceeding and to have access to and be consulted in connection with any document, opinion or proposal made or submitted to a Competition Authority in connection with such request, inquiry, investigation or Proceeding. None of Parent or the Company will agree to participate in any meeting, telephone call or discussion with a Competition Authority in respect of any submissions, filings, investigation (including any settlement of the investigation), litigation or other inquiry relating to the matters that are the subject of this Agreement unless it consults with the other Party in advance. Each of Parent and the Company will promptly provide each other with copies of all material correspondence, filings or communications between them or any of their Representatives, on the one hand, and any Governmental Entity or members of its staff, on the other hand, with respect to this Agreement and the transactions contemplated by this Agreement; <u>provided</u>, <u>however</u>, that materials may be redacted as necessary to comply with contractual arrangements and address reasonable attorney-client or other privilege or confidentiality concerns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding anything to the contrary in this Agreement, in connection with the receipt of any necessary consent, license, permit, waiver, approval, authorization, confirmation, clearance, certificate, exemption, registration or order of a Governmental Entity (including under the HSR Act), no member of the

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Company Group shall be required to (and no member of the Parent Group shall without the prior written consent of the Company) agree to any term, condition, obligation, liability, requirement, limitation, qualification, remedy, commitment, sanction or other action imposed, required or requested by a Governmental Entity, including but not limited to selling, holding separate or otherwise disposing of or conducting their business (or, following the Closing, the combined business) in a specified manner, or agree to sell, hold separate or otherwise dispose of or conduct their business (or, following the Closing, the combined business) in a specified manner, or entering into or agreeing to enter into a voting trust arrangement, proxy arrangement, "hold separate" agreement or arrangement or similar agreement or arrangement with respect to the assets, operations or conduct of their business (or, following the Closing, the combined business) in a specified manner, or permitting the sale, hold separate or other disposition of, any assets of Parent, the Company or their respective Affiliates, or otherwise take any action that limits the freedom of action with respect to, or its ability to retain any of the businesses, product lines or assets of, the Company Group or Parent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Notwithstanding anything to the contrary in this Agreement, subject to the last sentence of <u>Section</u> <u>5.8(c)</u>, the Company shall, on behalf of the Parties, control and lead all communications and strategy relating to obtaining all approvals, consents, waivers, registrations, permits, authorizations and other confirmations from any Governmental Entity (including any such approvals required by applicable Competition Laws) or third party necessary, proper or advisable to consummate the Merger and other transactions contemplated by this Agreement and coordinate the overall development of the positions to be taken in any filing or submission with such other Governmental Entity in connection with any investigation or other inquiry or litigation by or before, or any negotiations with, a Governmental Entity; <u>provided</u>, <u>however</u>, that the Company shall consult in advance with Parent and in good faith take Parent's views into account regarding the overall strategic direction of any such litigation, clearance or approval process, as applicable, and consult with Parent prior to taking any material substantive positions, making dispositive motions or other material substantive filings or submissions or entering into any negotiations concerning such litigation, clearance or approvals, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) (I) Unless otherwise instructed in writing by the Company, Parent shall give (or shall cause the other members of the Parent Group to give) any notices to third parties, and use, and cause the other members of the Parent Group to use, their reasonable best efforts to obtain any third party consents (i) necessary, proper or advisable under Parent Material Contracts to consummate the transactions contemplated by this Agreement; and (II) unless otherwise instructed in writing by Parent, the Company shall give (or shall cause the other members of the Company Group to give) any notices to third parties, and use, and cause the other members of the Company Group to use, their reasonable best efforts to obtain any third party consents necessary, proper or advisable under Company Material Contracts to consummate the transactions contemplated by this Agreement; <u>provided</u>, <u>however</u>, that the Parties shall coordinate and cooperate in determining whether any actions, consents, approvals or waivers are required to be obtained from parties to any Parent Material Contracts or Company Material Contracts in connection with consummation of the Merger and seeking any such actions, consents, approvals or waivers. If so requested by a Party, the other Party shall promptly cooperate with and timely respond to any information or other requests from third parties related to obtaining any consent from such third parties in connection with the transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Notwithstanding anything to the contrary in this Agreement, in connection with obtaining any consent, approval or waiver from any Person with respect to the Merger pursuant to <u>Section</u> <u>5.8(g)</u>, the Parent Group shall not, without the prior written consent of the Company, and none of the Company nor any of its Subsidiaries shall be required to, take any of the following actions in connection with seeking or obtaining any such consent, approval or waiver from such Person: (i) make any material payment of any fees, expenses, "profit sharing" payments or other consideration (including increased or accelerated payments) or concede anything of monetary or economic value to such Person, (ii) amend, supplement or otherwise modify any Contract pursuant to which such Person is entitled to provide consent, approval or waiver, (iii) otherwise make any accommodation or provide any material benefit to such Person or (iv) incur any liability or other obligation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Parent and the Company shall not, and shall not permit any of their respective Subsidiaries to, (i) acquire or agree to acquire, by merging or consolidating with, or by purchasing a substantial portion of the assets of or equity in or otherwise make any investment in, or by any other manner, any Person or portion thereof, or otherwise acquire or agree to acquire or make any investment in any assets, or (ii) enter into an agreement to form a new joint venture, strategic alliance or strategic partnership with another Person, or amend or modify any agreement for a joint venture, strategic alliance or strategic partnership with another Person if, in the case of each of <u>clause (i)</u> and <u>clause (ii)</u>, doing so would reasonably be expected to (1) materially increase the risk of not obtaining any consent, approval, authorization, declaration, waiver, license, franchise, permit, certificate or Order of any Governmental Entity necessary to consummate the transactions contemplated hereby or (2) materially increase the risk of any Governmental Entity entering an Order prohibiting the consummation of the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Parent shall agree, if reasonably requested by the Company so as to permit (or as identified by the Parties as reasonably likely to be necessary to permit) the expiration or termination of the applicable waiting periods under the HSR Act or the receipt of any other consent under any other applicable Competition Law, in each case as soon as practicable after the date of this Agreement (but in any event not later than the Outside Date unless otherwise directed by the Company), to effect and agree to any sale, divestiture, license, holding separate or other similar arrangement with respect to, or other disposition of or restriction on, any assets, operations, rights, product lines, licenses, businesses or interests therein of Parent and its Subsidiaries, and take such action or actions that would in the aggregate have a similar effect; <u>provided</u>, <u>however</u>, that any such sale, divestiture, license, holding separate or other similar arrangement, disposition, restriction or action or actions (each, a "<u>Potential Sale Transaction</u>") is conditioned on the occurrence of, and shall become effective only from and after, the Closing. Without limiting the foregoing, to the extent reasonably requested by the Company, Parent shall, and shall cause its Subsidiaries to, cooperate with the Company to facilitate a Potential Sale Transaction and, in furtherance thereof, to the extent reasonably requested by the Company, Parent shall, and shall cause its Subsidiaries, to (a) enter into confidentiality agreements containing customary terms with any Persons who the Company identifies to Parent as potential purchasers in a Potential Sale Transaction (such potential purchasers to be referred to as "<u>Potential Purchasers</u>"); (b) permit Potential Purchasers to conduct (and cooperate with such Potential Purchasers' Representatives) reasonable documentary and other investigations with respect to such Potential Sale Transaction (<u>provided</u>, that any such Potential Purchaser executes and delivers to Parent a confidentiality agreement and, to the extent deemed advisable by the Company's outside legal counsel, a clean team agreement, in each case containing customary terms); (c) comply with any applicable right of first refusal, right of first offer, right of approval and similar provisions that may be applicable to a proposed transfer of a Potential Sale Transaction; and (d) deliver such notices, make such filings and execute such contracts relating to a Potential Sale Transaction as reasonably requested by the Company and at the Company's expense.

Section 5.9 <u>Certain Notices</u>. During the Interim Period, each Party shall promptly notify the other Party of (a) the occurrence, or non-occurrence, of any event that would or would be reasonably likely to cause any condition to the obligations of any Party pursuant to <u>Article VI</u> not to be satisfied, (b) receipt of any written notice to the receiving Party from any Person alleging that the consent or approval of such Person is or may be required in connection with the transactions contemplated by this Agreement, or (c) receipt of any notice or other material communication from NASDAQ (or any other securities market) in connection with the Conversion or the Merger; <u>provided</u>, <u>however</u>, that the delivery of any notice pursuant to this <u>Section</u> <u>5.9</u> will not, in and of itself, limit, cure any breach of or otherwise affect any representation, warranty, covenant or agreement contained in this Agreement or otherwise limit or affect the remedies available hereunder to the Party receiving such notice.

Section 5.10 <u>Public Announcements</u>. The initial press release of the Parties announcing the execution of this Agreement shall be a joint press release mutually agreed upon by the Parties. Thereafter, each Party agrees that no public release or announcement concerning the transactions contemplated hereby will be issued by any Party without the prior written consent of the other Party (which consent will not be unreasonably withheld, delayed or conditioned), except (a) as such release or announcement may be required by applicable Law or the rules or regulations of any applicable United States securities exchange or Governmental Entity to which the relevant

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Party is subject, in which case the Party required to make the release or announcement will use its reasonable best efforts to allow the other Party reasonable time to comment on such release or announcement in advance of such issuance, (b) releases or announcements consistent in all material respects with any release, disclosure or other public release or announcement previously made in accordance with this <u>Section</u> <u>5.10</u>, (c) releases or announcements regarding the transactions contemplated by this Agreement in response to questions from the press, analysts, investors or those attending industry conferences, and internal announcements to employees, in each case, to the extent that such releases or announcements are not inconsistent with previous public releases or announcements made jointly by the Parties or approved by the Parties, and otherwise in compliance with this <u>Section</u> <u>5.10</u>, and provided that such public releases or announcements do not reveal material nonpublic information regarding this Agreement or the transactions contemplated hereby, (d) with respect to any Change of Parent Recommendation or Change of Company Recommendation made in accordance with this Agreement or (e) in relation to any pending Proceeding between the parties.

Section 5.11 <u>Employee Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) For a period of 12 months following the Effective Time (or, with respect to any employee of Parent or its subsidiaries prior to the Effective Time who continues to be employed by Parent or any of its subsidiaries, (the "<u>Continuing Parent Employee</u>")), other than any Union Employee (as defined below), until the earlier termination of employment of such Continuing Parent Employee, Parent shall provide to <u>Continuing Parent Employees</u>, (A) a base salary or wage rate and target annual bonus or commission opportunity that, in each case, is substantially comparable, in the aggregate to the base salary or wage rate and target annual bonus or commission opportunity that was provided to such Continuing Parent Employee, immediately prior to the Effective Time and (B) employee benefits that are substantially comparable in the aggregate to either, at the election of Parent following the Effective Time (x) the employee benefits provided to such Continuing Parent Employee immediately prior to the Effective Time or (y) the employee benefits provided to similarly situated employees of the Company or its subsidiaries (the "<u>Continuing Company Employees</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To the extent that Parent modifies any coverage or benefit plan in which Continuing Parent Employees participate, Parent or any of its subsidiaries shall use commercially reasonable efforts to (i) waive or cause to be waived any pre-existing conditions, exclusions, limitations, actively-at-work requirements, and eligibility waiting periods under any group health plans of Parent to be waived with respect to Continuing Parent Employees and their eligible dependents and (ii) give each Continuing Parent Employee credit for the plan year in which the Effective Time occurs towards applicable deductibles and annual out-of-pocket limits for medical expenses incurred prior to the Effective Time for which payment has been made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Following the Effective Time, to the extent that Continuing Parent Employee and/or Continuing Company Employee participates in a new employee benefit plan following the Effective Time, Parent or any of its subsidiaries shall use commercially reasonable efforts to (i) waive or cause to be waived any pre-existing conditions, exclusions, limitations, actively-at-work requirements, and eligibility waiting periods under any group health plans of Parent to be waived with respect to such employees and their eligible dependents, (ii) give such employee credit for the plan year in which the Effective Time occurs towards applicable deductibles and annual out-of-pocket limits for medical expenses incurred prior to the Effective Time for which payment has been made and (iii) to the extent that it would not result in a duplication of benefits and to the extent that such service was recognized under a similar employee benefit plan, give each such employee service credit for such Parent employee's employment with the Company or Parent, as applicable, for purposes of eligibility to participate and vesting credit (but excluding benefit accrual under any defined benefit pension plan) under each applicable Parent Benefit Plan as if such service had been performed with Parent or Company, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Nothing in this Agreement shall confer upon any Continuing Parent Employee or Continuing Company Employee, as applicable, any right to continue in the employ or service of Parent or any of its subsidiaries, or shall interfere with or restrict in any way the rights of Parent or any of its subsidiaries, which rights are hereby expressly reserved, to discharge or terminate the services of any Continuing Parent Employee

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or Continuing Company Employee, as applicable, at any time for any reason whatsoever, with or without cause, except to the extent expressly provided otherwise in a written agreement between Parent and the Continuing Parent Employee or the Continuing Company Employee, as applicable, or any severance, benefit or other applicable plan, policy or program covering such Continuing Parent Employee or Continuing Company Employee, as applicable. Notwithstanding any provision in this Agreement to the contrary, nothing in this <u>Section</u> <u>5.11</u> shall (i) be deemed or construed to be an amendment or other modification of any Parent Benefit Plan, (ii) prevent Parent from amending or terminating any Parent Benefit Plan in accordance with their terms or (iii) create any third-party rights in any current or former service provider of Parent or any of its subsidiaries (or any beneficiaries or dependents thereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) With respect to the Continuing Parent Employees that are covered by a Collective Bargaining Agreement as of immediately prior to the Effective Time (the "<u>Parent Union Employees</u>"), Parent shall cause its applicable Subsidiary to continue to abide by the terms and conditions of each of the Collective Bargaining Agreements covering such Parent Union Employees subject to the terms for amendment provided in the Railway Labor Act. With respect to the Company's Employees that are covered by a Collective Bargaining Agreement as of immediately prior to the Effective Time (the "<u>Company Union Employees</u>"), Parent shall cause the Company's applicable Subsidiary to continue to abide by the terms and conditions of each of the Collective Bargaining Agreements covering such Company Union Employees subject to the terms for amendment provided in the Railway Labor Act.

Section 5.12 <u>Indemnification of Parent Directors and Officers</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) For a period of six (6) years from and after the Effective Time, Parent shall indemnify and hold harmless all past and present directors, officers and employees of Parent to the same extent that such Persons are indemnified as of the date of this Agreement by Parent pursuant to applicable Law, the Post-Conversion Parent Charter, the Post-Conversion Parent Bylaws and indemnification agreements in existence on the date of this Agreement (but only to the extent such agreements were made available to the Company or are consistent, in all material respects, with the form of indemnification agreement filed with the Parent SEC Documents) with respect to acts or omissions in their capacity as directors, officers or employees of Parent occurring at or prior to the Effective Time. Parent shall advance expenses (including reasonable legal fees and expenses) incurred in the defense of any Proceedings with respect to the matters subject to indemnification pursuant to this <u>Section</u> <u>5.12(a)</u> in accordance with the procedures set forth in the Post-Conversion Parent Charter, Post-Conversion Parent Bylaws and indemnification agreements in existence on the date of this Agreement (but only to the extent such agreements were made available to the Company or are consistent, in all material respects, with the form of indemnification agreement filed with Parent SEC Documents).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For a period of six (6) years from and after the Effective Time, Parent shall cause its certificate of incorporation and bylaws to contain provisions no less favorable with respect to exculpation and indemnification of directors and officers of Parent for periods at or prior to the Effective Time than are set forth in the Post-Conversion Parent Charter and the Post-Conversion Parent Bylaws. Parent shall cause the indemnification agreements in existence on the date of this Agreement with any of the directors, officers or employees of Parent (but only to the extent such agreements were made available to the Company or are consistent, in all material respects, with the form of indemnification agreement filed with the Parent SEC Documents) to continue in full force and effect in accordance with their terms following the Effective Time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Parent shall either (i) obtain at the Effective Time "tail" insurance policies with a claims period of at least six (6) years from the Effective Time with respect to directors' and officers' liability insurance in amount and scope at least as favorable as Parent's existing policies for claims arising from facts or events that occurred on or prior to the Effective Time or (ii) maintain in effect for six (6) years from the Effective Time, if available, the current directors' and officers' liability insurance policies maintained by Parent (the "<u>Parent</u> <u>D&O Insurance</u>"); <u>provided</u>, that Parent may substitute therefor policies of at least the same coverage containing terms and conditions that are substantially equivalent and in any event not less favorable in the aggregate than the

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Parent D&O Insurance with respect to matters occurring prior to the Effective Time; <u>provided</u>, <u>however</u>, that Parent will not be required to pay an annual premium for the Parent D&O Insurance in excess of 300% of the last annual premium paid prior to the date of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In the event Parent (i) consolidates with or merges into any other Person and will not be the continuing or surviving corporation or entity of such consolidation or merger or (ii) transfers all or substantially all of its properties and assets to any Person, then proper provision will be made so that such continuing or surviving corporation or entity or transferee of such assets, as the case may be, will assume the obligations set forth in this <u>Section</u> <u>5.12</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The obligations under this <u>Section</u> <u>5.12</u> will (i) continue, notwithstanding any six (6)-year limitation referred to above, until the final disposition of any Proceeding brought or commenced during such six (6)-year period and (ii) not be terminated or modified in such a manner as to adversely affect any indemnitee to whom this <u>Section</u> <u>5.12</u> applies without the consent of such affected indemnitee (it being expressly agreed that the indemnitees to whom this <u>Section</u> <u>5.12</u> applies will be third-party beneficiaries of this <u>Section</u> <u>5.12</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Nothing in this Agreement is intended to, or will be construed to, release, waive or impair any rights to directors' and officers' insurance claims pursuant to any applicable insurance policy or indemnification agreement that is or has been in existence with respect to the Parent Group for any of their respective directors, officers or other employees, it being understood and agreed that the indemnification provided for in this <u>Section</u> <u>5.12</u> is not prior to or in substitution for any such claims pursuant to such policies or agreements.

Section 5.13 <u>Indemnification of Company Directors and Officers</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) For a period of six (6) years from and after the Effective Time, Parent shall indemnify and hold harmless all past and present directors, officers and employees of the Company to the same extent that such Persons are indemnified as of the date of this Agreement by the Company pursuant to applicable Law, the Company Charter, the Company Bylaws and indemnification agreements in existence on the date of this Agreement with respect to acts or omissions in their capacity as directors, officers or employees of the Company occurring at or prior to the Effective Time. Parent shall advance expenses (including reasonable legal fees and expenses) incurred in the defense of any Proceedings with respect to the matters subject to indemnification pursuant to this <u>Section</u> <u>5.13(a)</u> in accordance with the procedures set forth in the Company Charter, Company Bylaws and indemnification agreements in existence on the date of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For a period of six (6) years from and after the Effective Time, Parent shall cause its certificate of incorporation and bylaws to contain provisions no less favorable with respect to exculpation and indemnification of directors and officers of the Company for periods at or prior to the Effective Time than are currently set forth in the Company Charter and the Company Bylaws. Parent shall cause the indemnification agreements in existence on the date of this Agreement with any of the directors, officers or employees of the Company to continue in full force and effect in accordance with their terms following the Effective Time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Parent shall either (i) obtain at the Effective Time "tail" insurance policies with a claims period of at least six (6) years from the Effective Time with respect to directors' and officers' liability insurance in amount and scope at least as favorable as the Company's existing policies for claims arising from facts or events that occurred on or prior to the Effective Time or (ii) maintain in effect for six (6) years from the Effective Time, if available, the current directors' and officers' liability insurance policies maintained by the Company (the "<u>Company D&O Insurance</u>"); <u>provided</u>, that Parent may substitute therefor policies of at least the same coverage containing terms and conditions that are substantially equivalent and in any event not less favorable in the aggregate than the Company D&O Insurance with respect to matters occurring prior to the Effective Time; <u>provided</u>, <u>however</u>, that Parent will not be required to pay an annual premium for the Company D&O Insurance in excess of 300% of the last annual premium paid prior to the date of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In the event Parent (i) consolidates with or merges into any other Person and will not be the continuing or surviving corporation or entity of such consolidation or merger or (ii) transfers all or substantially all of its properties and assets to any Person, then proper provision will be made so that such continuing or surviving corporation or entity or transferee of such assets, as the case may be, will assume the obligations set forth in this <u>Section</u> <u>5.13</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The obligations under this <u>Section</u> <u>5.13</u> will (i) continue, notwithstanding any six (6)-year limitation referred to above, until the final disposition of any Proceeding brought or commenced during such six (6)-year period and (ii) not be terminated or modified in such a manner as to adversely affect any indemnitee to whom this <u>Section</u> <u>5.13</u> applies without the consent of such affected indemnitee (it being expressly agreed that the indemnitees to whom this <u>Section</u> <u>5.13</u> applies will be third-party beneficiaries of this <u>Section</u> <u>5.13</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Nothing in this Agreement is intended to, or will be construed to, release, waive or impair any rights to directors' and officers' insurance claims pursuant to any applicable insurance policy or indemnification agreement that is or has been in existence with respect to the Company Group for any of their respective directors, officers or other employees, it being understood and agreed that the indemnification provided for in this <u>Section</u> <u>5.13</u> is not prior to or in substitution for any such claims pursuant to such policies or agreements.

Section 5.14 <u>State Takeover Laws</u>. If any Takeover Law becomes or is deemed to be applicable to the Company, Parent, the Conversion, the Merger or the Primary Issuance, including the acquisition of shares of Company Common Stock pursuant thereto or any other transaction contemplated by this Agreement, the Escrow Agreement or the Three Party Agreement, then the Parent Board or the Company Board (as applicable) will take all action necessary so that the Merger, including the acquisition of shares of Company Common Stock pursuant thereto, or any other transaction contemplated by this Agreement, the Escrow Agreement or the Three Party Agreement (including the Conversion and the Primary Issuance), may be consummated as promptly as practicable on the terms contemplated by this Agreement, the Escrow Agreement or the Three Party Agreement (as applicable) or to otherwise render such Takeover Law inapplicable to the foregoing. Without limiting the foregoing, neither Parent nor the Company shall adopt or implement any stockholder rights agreement, "poison pill" or similar antitakeover agreement or plan.

Section 5.15 <u>Section 16 Matters</u>. Prior to the Effective Time, the Parent Board, or a duly authorized committee of non-employee directors thereof, will adopt a resolution consistent with the interpretive guidance of the SEC so that the acquisition of shares of Parent Common Stock pursuant to the Merger by any incoming officer or director of Parent who may become a covered Person of Parent for purposes of Section 16 of the Exchange Act will be an exempt transaction for purposes of Section 16 of the Exchange Act.

Section 5.16 <u>Stockholder Litigation</u>. Parent shall provide the Company as promptly as practicable with any pleadings relating to any Stockholder Litigation and will keep the Company reasonably and promptly informed regarding the status of any such Stockholder Litigation. Parent shall cooperate with and give the Company a reasonable opportunity to participate in the defense or settlement of any such Stockholder Litigation, and no such settlement will be agreed to without the prior written consent of the Company (such consent not to be unreasonably withheld, delayed or conditioned). Without limiting the preceding sentence, Parent shall give the Company the right to review and comment on all filings or responses to be made by it in connection with any Stockholder Litigation, and it will in good faith take such comments into account.

Section 5.17 <u>Tax Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Parties intend that, for U.S. federal income tax purposes, the Merger will qualify as a "reorganization" within the meaning of Section 368(a) of the Code and the Treasury Regulations to which each of Parent and the Company are to be parties under Section 368(b) of the Code and the Treasury Regulations (the "<u>Intended Tax Treatment</u>") and this Agreement is intended to be, and is adopted as, a plan of reorganization for purposes of Sections 354, 361 and 368 of the Code and within the meaning of Treasury Regulations

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Section 1.368-2(g). None of the Parties knows of any fact or circumstance (without conducting independent inquiry or diligence of the other relevant party), or has taken or will take any action, whether before or after the Merger, if such fact, circumstance or action would be reasonably expected to cause the Merger to fail to qualify for the Intended Tax Treatment. The Merger will be reported by the Parties for all Tax purposes in accordance with the Intended Tax Treatment, including the filing of the statement required by Treasury Regulations Section 1.368-3, unless otherwise required by applicable law as a result of a "determination" (within the meaning of Section 1313(a) of the Code).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Parties will reasonably cooperate, and will cause their respective representatives to reasonably cooperate, to document and support the Intended Tax Treatment, including providing factual support letters of the sort customarily provided as the basis for a legal opinion that the Merger qualify for the Intended Tax Treatment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) On the Closing Date, the Company will provide Parent with certificates on behalf of the Company, prepared in a manner consistent and in accordance with the requirements of Treasury Regulations Section 1.1445-2(b)(2), 1.1445-2(c)(3) and 1.897-2(h), as applicable, certifying that the Company is not a "foreign person" within the meaning of Section 1445 of the Code and that interests in the Company are not United States real property interests within the meaning of Sections 897 and 1445 of the Code; <u>provided</u>, <u>however</u>, <u>that</u>, notwithstanding anything to the contrary, Parent's sole remedy in the event the Company fails to deliver such certificate will be to make a proper withholding of Tax to the extent required by applicable Tax Law. After the Closing, the Surviving Corporation will mail to the Internal Revenue Service a copy of the certification provided pursuant to Treasury Regulations Section 1.1445-2(c)(3) and 1.897-2(h) together with the notice and information required by Treasury Regulations Section 1.897-2(h) in accordance with the provisions of and within the time frames provided in Treasury Regulations Section 1.897-2(h).

Section 5.18 <u>RWI Policy</u>. The Company shall be entitled to obtain a representations and warranties insurance policy (the "<u>R&W Policy</u>") in connection with the transactions contemplated hereby covering losses of the Surviving Corporation arising from breaches of Parent's representations and warranties contained herein. Parent shall, and shall cause its Representatives to, reasonably cooperate with the Company to bind any R&W Policy.

Section 5.19 <u>NASDAQ Listing</u>. The Parties shall prepare and submit to NASDAQ a listing application or notification, as applicable, covering the shares of Parent Common Stock to be issued in the Merger, and shall use their reasonable best efforts to cause such shares of Parent Common Stock to be authorized for listing on NASDAQ, at or prior to the Closing.

#### ARTICLE VI
<u>CONDITIONS TO CLOSING</u>

Section 6.1 <u>Conditions to the Obligations of Each Party</u>. The respective obligations of each Party to consummate the transactions contemplated hereby will be subject to the satisfaction or (to the extent permitted by applicable Law) written waiver at or prior to the Closing of each of the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company Stockholder Approval shall have been obtained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Parent Stockholder Approvals shall have been obtained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The waiting period applicable to the consummation of the Merger under the HSR Act (and any timing agreement with any Governmental Entity to toll, stay, or extend any such waiting period, or to delay or not to consummate the Merger contemplated by this Agreement entered into in connection therewith) shall have expired or been terminated.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Form S-4 shall have been declared effective by the SEC under the Securities Act and no stop order suspending the effectiveness of the Form S-4 shall have been issued by the SEC and be in effect and no Proceedings for that purpose shall have been initiated and be pending.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The shares of Parent Common Stock issuable in the Merger shall have been approved for listing on NASDAQ.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) No Governmental Entity shall have enacted, issued, promulgated, enforced or entered any Law or Order (whether temporary, preliminary or permanent), in each case, that is then in effect and has the effect of making illegal, enjoining, or otherwise restraining or prohibiting the consummation of the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Parties shall have (A) received all of the approvals necessary to be obtained from the DOT, the FAA, the FCC, the TSA and foreign CAA to consummate the Merger. For avoidance of doubt, the Aviation Approvals shall include the receipt from DOT of an exemption from 49 U.S.C. § 41105, pursuant to 49 U.S.C. § 40109, allowing Parent and Company to operate under common ownership pending DOT's action on an application by Parent and Company for approval of a de facto transfer of their international route authorities (but shall not, for the avoidance of doubt, include the actual approval by DOT of a de facto transfer of such international route authorities) and (B) provided notification to, and received all of the approvals necessary to be obtained from, the Mexican Aviation Agency ("<u>AFAC</u>") regarding transfer of control and the receipt of official confirmation issued by the AFAC taking note of the transfer of control resulting from the Merger ((A) and (B), collectively, the "Aviation Approvals").

Section 6.2 <u>Conditions to Obligations of Parent</u>. The obligations of Parent to consummate the transactions contemplated hereby will be subject to the satisfaction or written waiver at or prior to the Closing of each of the following conditions<u>:</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(a)</u> (i) The representations and warranties of the Company contained in <u>Section</u> <u>3.1</u>, <u>Section</u> <u>3.2(c)</u>, <u>Section</u> <u>3.2(d)</u>, <u>Section</u> <u>3.2(e)</u>, <u>Section</u> <u>3.2(f)</u>, <u>Section</u> <u>3.2(g)</u>, <u>Section</u> <u>3.3</u>, <u>Section</u> <u>3.4(a)</u>, <u>Section</u> <u>3.8</u> and <u>Section</u> <u>3.12</u> shall be true and correct in all material respects as of the date of this Agreement and as of the Closing Date with the same force and effect as if made on and as of such date, except for any such representation and warranty that is expressly made as of a specific date or time (which needs only be true and correct in all material respects as of such date or time), (ii) the representations and warranties of the Company contained in <u>Section</u> <u>3.9(b)</u> shall be true and correct in all respects as of the date of this Agreement, (iii) the representations and warranties of the Company contained in the first sentence of <u>Section</u> <u>3.2(a)</u> and the first sentence of <u>Section</u> <u>3.2(b)</u> shall be true and correct in all respects as of the date of this Agreement, except for *de minimis* deviations, and (iv) all other representations and warranties of the Company contained in <u>Article III</u> (without giving effect to any references to any Company Material Adverse Effect or materiality qualifications and other qualifications based upon the concept of materiality or similar phrases contained therein) shall be true and correct in all respects as of the date of this Agreement and as of the Closing Date with the same force and effect as if made on and as of such date, except for any such representation and warranty that is expressly made as of a specific date or time (which needs only be true and correct in all respects as of such date or time), except where the failure of such representations and warranties in this <u>clause (iv)</u> to be so true and correct individually or in the aggregate with all other such failures to be true and correct pursuant to this clause (iv), would not constitute a Company Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company shall have performed and complied in all material respects with the covenants to be performed or complied with by it under this Agreement at or prior to the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Since the date of this Agreement, there shall not have occurred any Company Material Adverse Effect.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(d)</u> Parent shall have received a certificate of the Company, executed by an executive officer of the Company, dated as of the Closing Date, certifying that the conditions set forth in subsections <u>(a),</u> <u>(b)</u> and (c) of this <u>Section</u> <u>6.2</u> have been satisfied.

Section 6.3 <u>Conditions to Obligations</u> <u>of the Company</u>. The obligations of the Company to consummate the transactions contemplated hereby will be subject to the satisfaction or written waiver at or prior to the Closing of each of the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) (i) The representations and warranties of Parent contained in <u>Section</u> <u>4.1</u>, <u>Section</u> <u>4.2(c)</u>, <u>Section</u> <u>4.2(d)</u>, <u>Section</u> <u>4.2(e)</u>, <u>Section</u> <u>4.2(f)</u>, <u>Section</u> <u>4.2(g)</u>, <u>Section</u> <u>4.3</u>, <u>Section</u> <u>4.4(a)</u>, <u>Section</u> <u>4.7(f)</u>, <u>Section</u> <u>4.9</u>, <u>Section</u> <u>4.28</u> and <u>Section</u> <u>4.29</u> shall be true and correct in all material respects as of the date of this Agreement and as of the Closing Date with the same force and effect as if made on and as of such date, except for any such representation and warranty that is expressly made as of a specific date or time (which needs only be true and correct in all material respects as of such date or time), (ii) the representations and warranties of Parent contained in <u>Section</u> <u>4.11(b)</u> shall be true and correct in all respects as of the date of this Agreement, (iii) the representations and warranties of Parent contained in the first sentence of <u>Section</u> <u>4.2(a)</u> and the first sentence of <u>Section</u> <u>4.2(b)</u> shall be true and correct in all respects as of the date of this Agreement and as of the Closing Date, except for *de minimis* deviations, and (iv) all other representations and warranties of Parent contained in <u>Article IV</u> (without giving effect to any references to any Parent Material Adverse Effect or materiality qualifications and other qualifications based upon the concept of materiality or similar phrases contained therein) shall be true and correct in all respects as of the date of this Agreement and as of the Closing Date with the same force and effect as if made on and as of such date, except for any such representation and warranty that is expressly made as of a specific date or time (which needs only be true and correct in all respects as of such date or time), except where the failure of such representations and warranties in this <u>clause (iv)</u> to be so true and correct individually or in the aggregate with all other such failures to be true and correct pursuant to this clause (iv), would not constitute a Parent Material Adverse Effect<u>.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Parent shall have performed and complied in all material respects with the covenants to be performed or complied with by it under this Agreement at or prior to the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Since the date of this Agreement, there shall not have occurred any Parent Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company shall have received a certificate of Parent, executed by an executive officer of Parent, dated as of the Closing Date, certifying that the conditions set forth in subsections <u>(a),</u> <u>(b)</u> and (c) of this <u>Section</u> <u>6.3</u> have been satisfied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Immediately after giving effect to issuance of shares of Parent Common Stock in the Merger and the Primary Issuance, no Person or group shall beneficially own 30% or more of the issued and outstanding shares of Parent Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) (i) Each of the transactions contemplated by Article I, Section 2.2(a), Section 2.3(a), Section 2.3(b) and Section 2.3(d) (but, in the case of Section 2.3(d), only to the extent of any transactions that are contemplated to occur prior to the Closing), in each case of the Three Party Agreement, shall have been consummated (in each case, except for those transactions to be consummated at the Closing, but subject to the consummation of such transactions at the Closing), (ii) each of the parties to the Three Party Agreement other than Republic shall not have materially breached any of its representations, warranties, covenants or agreements contained in the Three Party Agreement, (iii) United shall not have provided Parent or the Company with written notice of its intent not to perform or comply with any of the post-Closing terms or conditions under the Three Party Agreement and (iv) the Company shall have received a certificate of United, executed by an executive officer of United, dated as of the Closing Date, certifying that (A) each of the conditions set forth in clauses (i), (ii) and (iii) of Section 1.7(i) of the Three Party Agreement has become satisfied or irrevocably waived by United, (B) as a result of the certifications made in clause (A), the last sentence of Section 1.7(i) of the Three Party Agreement is moot and of

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no further force and effect and (C) as a result of the certifications made in clauses (A) and (B), United irrevocably waives its right to terminate the Three Party Agreement pursuant to Section 5.1(b)(iv) of the Three Party Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) (i) United shall not have materially breached any of its representations, warranties, covenants or agreements contained in the CPA Side Letter and (ii) United shall not have provided Parent or the Company with written notice of its intent not to perform or comply with any of the terms or conditions under the Go-Forward CPA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Parent shall have filed with the SEC and made publicly available on EDGAR its Form 10-K for the period ended September 30, 2024 and shall have included therein (A) true, correct and complete copies of Parent's and its Subsidiaries' consolidated audited balance sheet as of September 30, 2024 and the related consolidated audited statements of operations and comprehensive (loss) income, stockholders' equity and cash flows for the year ended September 30, 2024 (the "<u>Final 2024 Financial Statements</u>"), which Final 2024 Financial Statements shall not deviate in any material respect from the Draft 2024 Financial Statements, and (B) a true, correct and complete copy of the report of Marcum to the Parent Board related to Marcum's audit of the Final 2024 Financial Statements (the "<u>Final 2024 Audit Opinion</u>"), which Final 2024 Audit Opinion shall not deviate in any material respect from the Draft 2024 Audit Opinion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Parent shall have filed with the SEC and made publicly available on EDGAR its Form 10-Q for the period ended December 31, 2024 and shall have included therein true, correct and complete copies of Parent's and its Subsidiaries' consolidated unaudited balance sheet as of December 31, 2024 and the related consolidated unaudited statements of operations and comprehensive (loss) income, stockholders' equity and cash flows for the three months ended December 31, 2024 (the "<u>Final 2025 Q1 Financial Statements</u>"), which Final 2025 Q1 Financial Statements shall not deviate in any material respect from the Draft 2025 Q1 Financial Statements.

#### ARTICLE VII
<u>TERMINATION</u>

Section 7.1 <u>Termination</u>. This Agreement may be terminated, and the Merger contemplated hereby may be abandoned, by action taken or authorized by the board of directors of the terminating Party, whether before or (except as provided below) after the Parent Stockholder Approvals and the Company Stockholder Approval have been obtained<u>:</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) by mutual written consent of each of Parent and the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) by either Parent or the Company, if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any court of competent jurisdiction or other Governmental Entity has issued an Order or Law permanently enjoining or otherwise permanently prohibiting the consummation of the transactions contemplated hereby, which Order or Law has become final and non-appealable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Effective Time has not occurred by 5 pm eastern on January 5, 2026 (the "<u>Outside Date</u>"); <u>provided</u>, that if as of the Outside Date, any of the conditions set forth in <u>Section</u> <u>6.1(c)</u>, <u>Section</u> <u>6.1(f)</u> (solely with respect to Competition Laws or Aviation Approvals) or <u>Section</u> <u>6.1(g)</u> shall not have been satisfied, then the Outside Date shall automatically be extended to April 6, 2026, and such extended date shall be deemed to be the Outside Date; <u>provided further</u>, that the right to terminate this Agreement under this <u>Section</u> <u>7.1(b)(ii)</u> shall not be available to any Party whose failure to fulfill any covenants or agreements under this Agreement has been the principal cause of, or resulted in, the failure of the Effective Time to occur on or before such date;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Parent Stockholder Approvals shall not have been obtained at the Parent Stockholder Meeting duly convened therefor, including at any adjournment, postponement or other delay thereof, at which a vote on such adoption was taken (the "<u>Vote-Taking Parent Stockholder Meeting</u>"); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Company Stockholder Approval shall not have been obtained by the time of the completion of the Vote-Taking Parent Stockholder Meeting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) by Parent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if (i) there is a breach of any representation, warranty, covenant or agreement of the Company contained in this Agreement such that any condition in <u>Section</u> <u>6.2(a)</u> or <u>Section</u> <u>6.2(b)</u> would not be satisfied were the Closing then to occur, (ii) Parent has delivered to the Company written notice of such breach and (iii) either such breach is not capable of being cured or, if curable, has not been cured prior to the earlier of (x) the Outside Date and (y) the 20th day following the delivery of such written notice to the Company; <u>provided</u>, <u>however</u>, that Parent will not be permitted to terminate this Agreement pursuant to this <u>Section</u> <u>7.1(c)(i)</u> if any representation, warranty, covenant or agreement of Parent contained in this Agreement has been breached such that any condition in <u>Section</u> <u>6.3(a)</u> or <u>Section</u> <u>6.3(b)</u> is not then satisfied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) prior to obtaining the Parent Stockholder Approvals, in order to concurrently enter into a Parent Alternative Acquisition Agreement with respect to a Parent Superior Proposal as provided under <u>Section</u> <u>5.4(g)</u> (provided, that (A) prior to or concurrently with such termination Parent pays the Company the Termination Fee under <u>Section</u> <u>7.3</u> and (B) Parent shall not have materially breached <u>Section</u> <u>5.4</u> in respect of the underlying Parent Acquisition Proposal); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if, prior to the time the Company Stockholder Approval is obtained, the Company Board or any committee thereof shall have effected a Change of Company Recommendation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) by the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if (i) there is a breach of any representation, warranty, covenant or agreement of Parent contained in this Agreement such that any condition in <u>Section</u> <u>6.3(a)</u> or <u>Section</u> <u>6.3(b)</u> would not be satisfied were the Closing then to occur, (ii) the Company has delivered to Parent written notice of such breach and (iii) either such breach is not capable of being cured or, if curable, has not been cured prior to the earlier of (x) the Outside Date and (y) the 20th day following the delivery of such written notice to Parent; <u>provided</u>, <u>however</u>, that the Company will not be permitted to terminate this Agreement pursuant to this <u>Section</u> <u>7.1(d)(i)</u> if any representation, warranty, covenant or agreement of the Company contained in this Agreement has been breached such that any condition in <u>Section</u> <u>6.2(a)</u> or <u>Section</u> <u>6.2(b)</u> is not then satisfied<u>;</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) prior to obtaining the Company Stockholder Approval, in order to concurrently enter into a Company Alternative Acquisition Agreement with respect to a Company Superior Proposal as provided under <u>Section</u> <u>5.6(g)</u> (provided, that (A) prior to or concurrently with such termination the Company pays Parent the Termination Fee under <u>Section</u> <u>7.3</u> and (B) the Company shall not have materially breached <u>Section</u> <u>5.6</u> in respect of the underlying Company Acquisition Proposal);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if, prior to the time the Parent Stockholders Approvals are obtained, the Parent Board or any committee thereof shall have effected a Change of Parent Recommendation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) if (i) there is a breach of any representation, warranty, covenant or agreement of any party to the Three Party Agreement other than Republic contained in the Three Party Agreement such that any condition in <u>Section</u> <u>6.3(f)</u> would not be satisfied were the Closing then to occur, (ii) the Company has delivered to Parent and United written notice of such breach and (iii) either such breach is not capable of being cured or, if curable, has not been cured prior to the earlier of (x) the Outside Date and (y) the 20th day following the delivery of such written notice to Parent and United;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) if (i) there is a breach of any representation, warranty, covenant or agreement of United contained in the CPA Side Letter such that any condition in <u>Section</u> <u>6.3(g)</u> would not be satisfied were the Closing then to occur, (ii) the Company has delivered to United and Parent written notice of such breach and (iii) either such breach is not capable of being cured or, if curable, has not been cured prior to the earlier of (x) the Outside Date and (y) the 20th day following the delivery of such written notice to United and Parent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) if (i) United has provided Parent or the Company with written notice of its intent not to perform or comply with any of the post-Closing terms or conditions under the Three Party Agreement and (ii) United does not retract such written notice prior to the earlier of (x) the Outside Date and (y) the 20th day following the delivery of United's initial written notice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) if (i) United has provided Parent or the Company with written notice of its intent not to perform or comply with any of the terms or conditions under the Go-Forward CPA and (ii) United does not retract such written notice prior to the earlier of (x) the Outside Date and (y) the 20<sup>th</sup> day following the delivery of United's initial written notice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) if the Three Party Agreement is terminated in accordance with its terms; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) if, following the expiration of the 10 BD Solicitation Period, the Company Stockholder Approval has not yet been obtained (assuming the Company has elected to utilize the 10 BD Solicitation Period to solicit the Company Stockholder Approval); provided, however, that the Company may only exercise the termination right provided under this clause (ix) during the three Business Day period following the expiration of the 10 BD Solicitation Period and, if the Company has not exercised such termination right by the end of such three Business Day period, the Company shall deliver to Parent a written waiver of such termination right as contemplated by <u>Section</u> <u>5.5</u>.

Section 7.2 <u>Effect of Termination</u>. In the event of termination of this Agreement in accordance with <u>Section 7.1</u>, this Agreement shall forthwith become void and have no further force or effect, and there shall be no further liability or obligation on the part of Parent or the Company with respect to any pre-termination facts or circumstances, including any pre-termination breach of this Agreement; <u>provided</u>, that the Confidentiality Agreement and the last sentence of <u>Section 5.3</u>, <u>Section 5.10</u>, this <u>Section 7.2</u>, <u>Section 7.3</u>, <u>Section 7.4</u>, <u>Section 7.5</u> and <u>Article VIII</u> shall survive the termination of this Agreement and remain in full force and effect in accordance with their respective terms.

Section 7.3 <u>Termination Fee; Expense Reimbursement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event that this Agreement is terminated pursuant to <u>Section</u> <u>7.1(c)(ii)</u><u>,</u> then Parent shall pay, or cause to be paid, to the Company an amount in cash equal to $1,500,000 (the "<u>Termination Fee</u>") prior to or concurrent with such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that this Agreement is terminated pursuant to <u>Section</u> <u>7.1(d)(iii)</u>, then Parent shall pay, or cause to be paid, to the Company the Termination Fee within two Business Days following such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event that (i) this Agreement is terminated pursuant to <u>Section</u> <u>7.1(b)(iii)</u>, (ii) prior to the date of the Vote-Taking Parent Stockholder Meeting, a Parent Acquisition Proposal has been publicly announced and (iii) within twelve months following the termination of this Agreement, a member of the Parent Group enters into a Parent Alternative Acquisition Agreement with respect to, or the Parent Board shall have approved or recommended to the Parent's stockholders, any Parent Acquisition Proposal that is later consummated (regardless of whether or not such consummation occurs prior to or following the end of such twelve month period), then Parent shall pay, or cause to be paid, to the Company the Termination Fee prior to or concurrent with the consummation of such Parent Acquisition Proposal; <u>provided</u>, that for purposes of this <u>Section</u> <u>7.3(c)</u>, the term "Parent Acquisition Proposal" will have the meaning assigned to such term in Appendix A, except that the references to "20%" will be deemed to be references to "50%".

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In no event shall Parent be required to pay the Termination Fee on more than one occasion. All payments to the Company under this <u>Section</u> <u>7.3</u> will be made by wire transfer of immediately available funds to the account designated by the Company in writing to Parent. Each of the Company and Parent acknowledges that (i) the agreements contained in this <u>Section</u> <u>7.3</u> are an integral part of the transactions contemplated by this Agreement and (ii) without these agreements, Parent and the Company would not enter into this Agreement. Accordingly, if Parent fails to promptly pay any amounts due pursuant to this <u>Section</u> <u>7.3</u>, Parent shall pay to the Company interest on the amounts due pursuant to this <u>Section</u> <u>7.3</u> from the date such payment was required to be made until the date of payment at the prime lending rate as published in *The Wall Street Journal* in effect on the date such payment was required to be made. Furthermore, if <u>the</u> Company commences a Proceeding that results in a judgment against Parent for any amounts due pursuant to this <u>Section</u> <u>7.3</u>, Parent shall pay or cause to be paid to the Company its costs and expenses (including attorneys' fees) in connection with such Proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) In the event that this Agreement is terminated pursuant to <u>Section</u> <u>7.1(d)(ii),</u> then the Company shall pay, or cause to be paid, to Parent the Termination Fee prior to or concurrent with such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) In the event that this Agreement is terminated pursuant to <u>Section</u> <u>7.1(c)(iii)</u>, then the Company shall pay, or cause to be paid, to Parent the Termination Fee within two Business Days following such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) In the event that (i) this Agreement is terminated pursuant to <u>Section</u> <u>7.1(b)(iv)</u>, (ii) prior to the date of the Vote-Taking Parent Stockholder Meeting, a Company Acquisition Proposal has been publicly announced and (iii) within twelve months following the termination of this Agreement, a member of the Company Group enters into a Company Alternative Acquisition Agreement with respect to, or the Company Board shall have approved or recommended to the Company's stockholders, any Company Acquisition Proposal that is later consummated (regardless of whether or not such consummation occurs prior to or following the end of such twelve month period), then the Company shall pay, or cause to be paid, to Parent the Termination Fee prior to or concurrent with the consummation of such Company Acquisition Proposal; <u>provided</u>, that for purposes of this <u>Section</u> <u>7.3(g)</u>, the term "Company Acquisition Proposal" will have the meaning assigned to such term in Appendix A, except that the references to "20%" will be deemed to be references to "50%".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) In no event shall the Company be required to pay the Termination Fee on more than one occasion. All payments to the Company under this <u>Section</u> <u>7.3</u> will be made by wire transfer of immediately available funds to the account designated by Parent in writing to the Company. Each of the Company and Parent acknowledges that (i) the agreements contained in this <u>Section</u> <u>7.3</u> are an integral part of the transactions contemplated by this Agreement and (ii) without these agreements, Parent and the Company would not enter into this Agreement. Accordingly, if the Company fails to promptly pay any amounts due pursuant to this <u>Section</u> <u>7.3</u>, the Company shall pay to Parent interest on the amounts due pursuant to this <u>Section</u> <u>7.3</u> from the date such payment was required to be made until the date of payment at the prime lending rate as published in *The Wall Street Journal* in effect on the date such payment was required to be made. Furthermore, if <u>Parent</u> commences a Proceeding that results in a judgment against the Company for any amounts due pursuant to this <u>Section</u> <u>7.3</u>, the Company shall pay or cause to be paid to Parent its costs and expenses (including attorneys' fees) in connection with such Proceeding.

Section 7.4 <u>Amendment</u>. This Agreement may be amended by the Company and Parent by action taken by or on behalf of their respective Boards of Directors at any time prior to the Effective Time, whether before or after the Company Stockholder Approval or the Parent Stockholder Approvals are obtained; <u>provided</u>, that, after the Company Stockholder Approval or the Parent Stockholder Approvals are obtained, no amendment may be made which, by Law or in accordance with the rules of any relevant stock exchange, requires further approval by such stockholders without obtaining such further approval. This Agreement may not be amended except by an instrument in writing signed by the Parties<u>.</u>

Section 7.5 <u>Waiver</u>. At any time prior to the Effective Time, Parent, on the one hand, and the Company, on the other hand, may (a) extend the time for the performance of any of the obligations or other acts of the other,

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(b) waive any breaches in the representations and warranties of the other contained herein or in any document delivered pursuant hereto and (c) waive compliance by the other with any of the agreements or conditions contained herein. Any such extension or waiver will be valid only if set forth in an instrument in writing signed by the Party to be bound thereby, but such extension or waiver or failure to insist on strict compliance with an obligation, covenant, agreement or condition will not operate as a waiver of, or estoppel with respect to, any subsequent or other failure.

#### ARTICLE VIII
<u>GENERAL PROVISIONS</u>

Section 8.1 <u>Non-Survival of Representations, Warranties and Pre-Closing Covenants</u><u>.</u> None of the representations and warranties in this Agreement or in any instrument delivered pursuant to this Agreement, nor any of the covenants or agreements in this Agreement that contemplate performance in whole prior to the Effective Time, will survive the Effective Time. This <u>Section</u> <u>8.1</u> will not limit any covenant or agreement in this Agreement which by its terms contemplates performance in whole or in part after the Effective Time.

Section 8.2 <u>Fees and Expenses</u>. Subject to <u>Section</u> <u>7.3</u>, all fees and expenses incurred in connection with the preparation, negotiation and performance of this Agreement and the consummation of the transactions contemplated by this Agreement shall be paid by the Party incurring such expenses, whether or not the Merger is consummated; <u>provided</u>, however, that all filing and other similar fees paid in respect of the filing of the pre-merger notification report under the HSR Act, DOT filings and pursuant to other applicable Competition Laws, and filings fees of the SEC in connection with Parent's filing of the S-4 (excluding, for the avoidance of doubt, in each case, legal fees and other advisor fees of the Parties incurred in connection with the preparation and submission of such filings, which shall be borne by the Party that has engaged such advisors) shall be paid entirely by the Company.

Section 8.3 <u>Notices</u>. All notices, consents, waivers and other communications hereunder shall be in writing and shall be deemed to have been given and received (a) when delivered in person (with written confirmation of receipt), (b) on the date received by electronic mail (with confirmation of transmission) if sent during normal business hours of the recipient, and on the next Business Day if received after normal business hours of the recipient, or (c) when received by the addressee if sent by certified or registered mail (return receipt requested) or nationally recognized express courier (with written confirmation of delivery). Such communications must be sent to the respective Parties at the following addresses (or to such other address as such Party may have specified in a written notice given to the other Parties in accordance with this <u>Section</u> 8.3).

if to Parent, to:

Mesa Air Group, Inc.

410 N. 44th Street, Suite 700

Phoenix, AZ 85008

Email: \*\*\*

Attention: Brian S. Gillman

with a copy (which shall not constitute notice) to:

Pachulski Stang Ziehl & Jones LLP

10100 Santa Monica Blvd., 13th Floor

Los Angeles, CA 90067

Email: rpachulski@pszjlaw.com; jlucas@pszjlaw.com

Attention: Richard M. Pachulski; John W. Lucas

and

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DLA Piper LLP (US)

2525 E. Camelback Road, Suite 1000

Phoenix, AZ 85016

Email: <u>greg.hall@us.dlapiper.com</u>

Attention: Gregory R. Hall

if to the Company, to:

Republic Airways Holdings Inc.

8909 Purdue Road, Suite 300

Indianapolis, IN 46268

Email: \*\*\*

Attention: Chad Pulley

with a copy (which shall not constitute notice) to:

Simpson Thacher & Bartlett LLP

900 G Street NW, Suite 900

Washington, DC 20001

Email: jonathan.corsico@stblaw.com; benjamin.bodurian@stblaw.com

Attention: Jonathan Corsico; Benjamin Bodurian

Section 8.4 <u>Interpretation; Certain Definitions; Exhibits and Schedules</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Parties have participated collectively in the negotiation and drafting of this Agreement with the benefit of competent legal representation, and the language used in this Agreement shall be deemed to be the language chosen by the Parties to express their mutual intent. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted collectively by the Parties, and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The words "hereof," "herein," "hereby," "hereunder" and "herewith" and words of similar import shall refer to this Agreement as a whole and not to any particular provision of this Agreement. References to articles, sections, paragraphs, exhibits, annexes and schedules are to the articles, sections and paragraphs of, and exhibits, annexes and schedules to, this Agreement, unless otherwise specified. The table of contents and headings in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. Whenever the words "include," "includes" or "including" are used in this Agreement, they shall be deemed to be followed by the phrase "without limitation." Words describing the singular number shall be deemed to include the plural and vice versa, words denoting any gender shall be deemed to include all genders and references to a Person are also to its permitted successors and assigns. The term "or" is used in the inclusive sense of "and/or". The word "extent" in the phrase "to the extent" shall mean the degree to which a subject or other thing extends, and such phrase shall not mean simply "if." Any agreement, document or instrument referred to herein shall mean such agreement, document or instrument as amended or modified and in effect from time to time in accordance with the terms thereof, including by way of any associated side letters or similar agreements (<u>provided</u> that for purposes of any representations and warranties contained in this Agreement that are made as of a specific date or dates, references to any agreement, document or instrument shall be deemed to refer to such agreement, document or instrument, as amended, in each case, as of such date). Reference to any Law means such Law as amended from time to time and includes any successor legislation thereto and any rules and regulations promulgated thereunder (<u>provided</u> that for purposes of any representations and warranties contained in this Agreement that are made as of a specific date or dates, references to any statute shall be deemed to refer to such statute, as amended, and to any rules or regulations promulgated thereunder, in each case, as of such date). References to "$" or "dollars" means U.S. dollars. Unless the context requires otherwise, the phrase "ordinary course of business" means "ordinary course of business consistent with past practice in all material respects".

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding the foregoing or any other provision of this Agreement to the contrary, the Company Disclosure Schedule and the Parent Disclosure Schedule are "facts ascertainable" as that term is used in Section 251(b) of the DGCL, and do not form part of this Agreement but instead operate upon the terms of this Agreement as provided herein.

Section 8.5 <u>Severability</u>. If any term or provision of this Agreement or the application thereof, becomes or is declared by a court of competent jurisdiction or other competent authority to be invalid, illegal or unenforceable, the remainder of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated. Upon any such determination that any term or other provision is invalid, illegal or unenforceable, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the fullest extent possible.

Section 8.6 <u>Assignment</u>. This Agreement shall be binding upon and shall inure to the benefit of the Parties and their respective successors and permitted assigns. Neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned by any of the Parties (whether by operation of Law or otherwise) without the prior written consent of the other Parties. Any attempted assignment in violation of this <u>Section 8.6</u> shall be null and void.

Section 8.7 <u>Entire Agreement</u>. This Agreement, the Ancillary Agreements and the Confidentiality Agreement (including the exhibits, annexes, schedules and appendices hereto and thereto), constitute the sole and entire agreement of the Parties with respect to the subject matter contained herein and therein, and they supersede all other prior agreements and understandings among the Parties, with respect to the subject matter hereof and thereof.

Section 8.8 <u>No Third-Party Beneficiaries</u>. This Agreement is for the sole benefit of the Parties and their respective successors and permitted assigns, and nothing herein, express or implied, is intended to or shall confer upon any Person other than the Parties or their respective successors and permitted assigns any legal or equitable rights, remedies or benefits of any nature whatsoever under or by reason of this Agreement, except (i) as specifically provided in <u>Sections 5.12</u> and <u>5.13</u> (in each case, which shall be to the benefit of the Persons referred to in such section), (ii) each Company stockholder and each holder of Company Equity Awards shall be a third-party beneficiary of the provisions of <u>Article II</u> (from and after the Closing), and (iii) for the rights of the Non-Recourse Parties as and to the extent provided in <u>Section 8.13</u>.

Section 8.9 <u>Remedies</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any and all remedies herein expressly conferred upon a Party will be deemed cumulative with and not exclusive of any other remedy expressly conferred hereby, and the exercise by a Party of any one such remedy will not preclude the exercise of any other such remedy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Parties agree that irreparable damage and harm would occur in the event that any provision of this Agreement were not performed in accordance with its terms and that, although monetary damages may be available for such a breach, monetary damages would be an inadequate remedy therefor. Accordingly, each of the Parties agrees that, in the event of any breach or threatened breach of any provision of this Agreement by such Party, the other Party shall be entitled to an injunction or injunctions, specific performance and other equitable relief to prevent or restrain breaches or threatened breaches hereof and to specifically enforce the terms and provisions hereof. A Party seeking an order or injunction to prevent breaches of this Agreement or to enforce specifically the terms and provisions hereof shall not be required to provide, furnish or post any bond or other security in connection with or as a condition to obtaining any such order or injunction, and each Party hereby irrevocably waives any right it may have to require the provision, furnishing or posting of any such bond or other security. In the event that any Proceeding should be brought in equity to enforce the provisions of this Agreement, each Party agrees that it shall not allege, and each Party hereby waives the defense, that there is an adequate remedy available at law.

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Section 8.10 <u>Governing Law; Exclusive Jurisdiction</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement and all matters, claims, controversies, disputes, suits, actions or Proceedings arising out of or relating to this Agreement and the negotiation, execution or performance of this Agreement or any of the transactions contemplated hereby, including all rights of the Parties (whether sounding in contract, tort, common or statutory law, equity or otherwise) in connection therewith, shall be interpreted, construed and governed by and in accordance with, and enforced pursuant to, the internal Laws of the State of Delaware without giving effect to any choice or conflict of law provision or rule (whether of the State of Delaware or any other jurisdiction) that would cause the application of the Law of any jurisdiction other than those of the State of Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each of the Parties hereby (i) agrees and irrevocably consents to submit itself to the exclusive jurisdiction of the Court of Chancery in the State of Delaware (or if such court finds it lacks subject matter jurisdiction, the federal or other state courts in the State of Delaware) (the "<u>Chosen Courts</u>") in any Proceeding arising out of or relating to this Agreement or the negotiation, execution or performance of this Agreement or any of the transactions contemplated hereby, (ii) agrees that all claims in respect of any such Proceeding will be heard and determined in any Chosen Court, (iii) agrees that it shall not attempt to deny or defeat such jurisdiction by motion or other request for leave from any Chosen Court, (iv) agrees not to bring or support any Proceeding arising out of or relating to this Agreement or any of the transactions contemplated by this Agreement (whether in contract, tort, common or statutory law, equity or otherwise) anywhere other than any Chosen Court and (v) agrees that a final and non-appealable judgment in any such Proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by applicable Law. Each of the Parties waives any defense of inconvenient forum to the maintenance of any Proceeding brought in any Chosen Court in accordance with this <u>Section 8.10</u>. Each of the Parties agrees that the service of any process, summons, notice or document in connection with any such Proceeding may be served upon them in any manner authorized by the laws of the State of Delaware.

Section 8.11 <u>Waiver of Jury Trial</u>. EACH PARTY (I) ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY OR PROCEEDING THAT MAY ARISE UNDER OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND (II) HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY CONTROVERSY OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH PARTY (A) CERTIFIES AND ACKNOWLEDGES THAT NO REPRESENTATIVE OF THE OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF ANY PROCEEDING, SEEK TO ENFORCE THE FOREGOING WAIVER, (B) CERTIFIES AND ACKNOWLEDGES THAT IT AND THE OTHER PARTY HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION OF THIS AGREEMENT, (C) UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER AND (D) MAKES THIS WAIVER VOLUNTARILY.

Section 8.12 <u>Counterparts and Electronic Signatures.</u> This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original and all of which, when taken together, shall be deemed to be one and the same agreement or document. Delivery of an executed signature page to this Agreement by electronic transmission (including in pdf, DocuSign, email or other means of electronic transmission) shall be deemed to have the same legal effect as delivery of an original executed copy of this Agreement for all purposes.

Section 8.13 <u>Non-Recourse.</u> Except as otherwise expressly provided in this Agreement, (a) this Agreement may only be enforced against, and any claims or causes of action that may be based upon, arise out of or relate to

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this Agreement, or the negotiation, execution or performance of this Agreement or the transactions contemplated hereby, may only be made against the Persons that are expressly identified as Parties herein in their capacities as such, (b) no former, current or future stockholders, equity holders, Controlling persons, directors, officers, employees, general or limited partners, members, managers, agents or Affiliates of any Party hereto, or any former, current or future direct or indirect stockholder, equity holder, Controlling person, director, officer, employee, general or limited partner, member, manager, agent or Affiliate of any of the foregoing (each, a "<u>Non-Recourse Party</u>") shall have any liability for any obligations or liabilities of the Parties or for any claim (whether in tort, contract or otherwise) based on, in respect of or by reason of the transactions contemplated hereby or in respect of any representations made or alleged to be made in connection herewith; <u>provided</u>, <u>however</u>, that the foregoing shall not limit the obligations or liabilities of any Non-Recourse Party under any Ancillary Agreement or other agreement to which such Non-Recourse Party is a party, and (c) without limiting the rights of any Party against the other Party, in no event shall any Party or any of its Affiliates seek to enforce this Agreement against or make any claims for breach of this Agreement against any Non-Recourse Party. The covenants contained in this <u>Section</u> <u>8.13</u> are intended to be for the benefit of, and shall be enforceable by, each of the Non-Recourse Parties and their respective heirs and assigns and shall not be deemed exclusive of any other rights to which any such Person may be entitled, whether pursuant to Law, Contract or otherwise.

Section 8.14 <u>Mesa Representative</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) By virtue of the approval of this Agreement and the Plan of Conversion and the approval of the Conversion and the Merger by the holders of a majority of the outstanding shares of Parent Common Stock entitled to vote thereon at the Parent Stockholder Meeting, each of the holders of issued and outstanding shares of Parent Stock shall be deemed to have irrevocably authorized and appointed Mesa Shareholder Representative, LLC, a Nevada limited liability company (the "<u>Mesa Representative</u>") as its lawful and exclusive representative, agent, proxy, and attorney-in-fact (with full power of substitution) for and on behalf of such holder of issued and outstanding shares of Parent Stock, with full power and authority to represent such holder and such holder's successors and assigns, with full power of substitution in the premises, with respect to all matters arising under the Escrow Agreement and the Three Party Agreement, and such matters herein relating to the Escrow Agreement, the Three Party Agreement, the Escrow Asset and the distribution thereof (including pursuant to Section 2.6 hereof), in accordance with the terms of this <u>Section</u> <u>8.14</u> and the terms of such agreements, including all such actions that are either necessary or appropriate in the judgment of the Mesa Representative for the accomplishment of the foregoing or specifically mandated by the terms of this Agreement, the Three Party Agreement or the Escrow Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Mesa Representative shall not be liable for any act done or omitted, as Mesa Representative, pursuant to this <u>Section</u> <u>8.14</u>, this Agreement, the Escrow Agreement or the Three Party Agreement, except to the extent that any such act done or omitted that constitutes fraud, gross negligence, bad faith or willful misconduct by or on behalf of the Mesa Representative. The Mesa Representative shall only have the duties expressly stated in this Agreement, the Three Party Agreement and the Escrow Agreement and shall have no other duty, express or implied. The Mesa Representative shall be entitled to recover any expenses incurred by the Mesa Representative arising out of or in connection with this Agreement, the Escrow Agreement or the Three Party Agreement, or the acceptance or administration of the Mesa Representative's duties hereunder or thereunder, including the reasonable fees and expenses of any legal counsel retained by the Mesa Representative, from amounts available in the Mesa Representative Expense Fund. A decision, act, consent or instruction of the Mesa Representative in accordance with its authorities granted under this Agreement, the Escrow Agreement or the Three Party Agreement shall constitute a decision of the holders of issued and outstanding shares of Parent Stock as of immediately prior to the Effective Time and shall be final, binding and conclusive upon such holders.

*[Signature pages follow]* 

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IN WITNESS WHEREOF, Parent and the Company have caused this Agreement to be executed as of the date first written above by their respective officers thereunto duly authorized.

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| | |
|:---|:---|
| **MESA AIR GROUP, INC.** | **MESA AIR GROUP, INC.** |
| By: | /s/ Michael Lotz |
| Name: | Michael Lotz |
| Title: | President |
| **REPUBLIC AIRWAYS HOLDINGS INC.** | **REPUBLIC AIRWAYS HOLDINGS INC.** |
| By: | /s/ Joseph P. Allman |
| Name: | Joseph P. Allman |
| Title: | Senior Vice President and Chief Financial Officer |

---

*[Signature Page to Agreement and Plan of Merger]* 

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#### APPENDIX A

#### DEFINITIONS
As used in this Agreement, the following terms shall have the following meanings:

"<u>Acceptable Confidentiality Agreement</u>" means an executed customary confidentiality agreement between Parent or the Company (as applicable) and a third Person that (i) does not include any provision for any exclusive right of such third Person or any of its Affiliates to negotiate with Parent or any of its Affiliates or the Company of any of its Affiliates (as applicable) or having the effect of restricting Parent or the Company (as applicable) from fulfilling any of its obligations under this Agreement, including under <u>Section</u> <u>5.4</u> or <u>Section</u> <u>5.6</u> (as applicable); (ii) contains provisions that are no more favorable in the aggregate to the third Person than those contained in the Confidentiality Agreement; and (iii) does not require any member of the Parent Group or the Company Group (as applicable) to reimburse the costs or expenses of any Person.

"<u>Affiliate"</u> means, with respect to any Person, any other Person that directly, or indirectly through one or more intermediaries, Controls, is Controlled by or is under common Control with, the first Person specified.

"<u>Ancillary Agreements</u><u>"</u> means the Three Party Agreement, the Escrow Agreement, the Company Written Consents and each other agreement, certificate, instrument or similar Contract delivered, or to be delivered pursuant to this Agreement.

"<u>Archer Agreements</u>" means, (a) the Aircraft Purchase Agreement, dated as of January 29, 2021, between Archer Aviation Inc., as seller, and United Airlines, Inc., as buyer., (b) the Collaboration Agreement, dated as of January 29, 2021, between Archer Aviation Inc. and United Airlines, Inc., (c) Assignment and Assumption Agreement, dated as of February 26, 2021, among Mesa Airlines, Inc., United Airlines, Inc., Mesa Air Group, Inc., and Archer Aviation Inc., (d) the Aircraft Purchase Agreement, dated as of April 29, 2021, among Archer Aviation Inc., as seller, Mesa Airlines, Inc., as buyer, and Mesa Air Group, Inc., as buyer parent, (e) Warrant to Purchase Shares of Archer Aviation Inc., issued January 29, 2021 by Archer Aviation Inc. and acknowledged and agreed by United Airlines, Inc., as holder, (f) Subscription Agreement, entered into as of February 10, 2021, between Atlas Crest Investment Corp. and United Airlines, Inc., as investor, (g) Transaction Support Agreement, entered into as of February 26, 2021, among Atlas Crest Investment Corp. and Mesa Air Group, Inc., as stockholder, (h) Warrant to Purchase Shares of Archer Aviation Inc., issued February 26, 2021 by Archer Aviation Inc. and acknowledged and agreed by Mesa Air Group, Inc., as holder, and any amendments or documents related to the foregoing.

"<u>beneficial ownership</u>" (and related terms such as "beneficially owned" or "beneficial owner") has the meaning set forth in Rule 13d-3 under the Exchange Act.

"<u>Blue Sky Laws</u>" means any state securities, "blue sky" or takeover law.

"<u>Business Day</u><u>"</u> <u>means</u> any day other than a Saturday, Sunday or a day on which all banking institutions in New York, New York, are authorized or obligated by Law or executive order to close.

"<u>CARES Act</u>" means the Coronavirus Aid, Relief, and Economic Security Act, Pub. L. 116-136 (Mar. 27, 2020), as the same may be amended from time to time.

"<u>Code</u><u>"</u> <u>means</u> the Internal Revenue Code of 1986, as amended, and the rules and regulations promulgated thereunder.

"<u>Company Acquisition Proposal</u>" means, with respect to the Company, any offer or proposal from any Person or group (other than Parent) concerning any, in a single transaction or series of related transactions, direct

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or indirect (a) merger, consolidation, business combination, share exchange, recapitalization, liquidation, dissolution, conversion, transfer, domestication or continuance or other transaction involving the Company which would result in any Person or group (or the shareholders of any Person or group) beneficially owning, directly or indirectly, more than 20% or more of the voting power of the Company or 20% or more of the voting power of the successor to the Company in such transaction or the resulting direct or indirect parent of the Company or such successor (or any securities convertible into, or exchangeable for, securities representing such voting power), (b) sale, lease, exchange, transfer, license or other disposition of assets of the Company representing 20% or more of the consolidated assets of the Company (whether based on the fair market value, revenue generation or net income), (c) issuance or sale by the Company of Equity Interests representing, convertible into or exchangeable for 20% or more of the voting power of the Company, (d) transaction in which any Person will acquire beneficial ownership, or the right to acquire beneficial ownership of shares of capital stock representing 20% or more of the voting power of the Company, or (e) any combination of the foregoing (in each case, other than the Merger). Notwithstanding the foregoing, none of the following shall constitute a Company Acquisition Proposal: (A) any transfer of Equity Interests of any stockholder of the Company or of any direct or indirect member, stockholder, partner or other equity holder of such stockholder (an "<u>Upper-Tier Transfer</u>"), including to the extent such Upper-Tier Transfer triggers a change of control of such stockholder, and (B) any transfer of Equity Interests of the Company held by any stockholder of the Company.

"<u>Company Benefit Plan</u>" means, all "employee benefit plans" as defined in Section 3(3) of ERISA and all bonus, stock option, stock purchase, stock appreciation rights, restricted stock, stock-based or other equity-based, incentive, profit-sharing, deferred compensation, vacation, insurance, medical, welfare, fringe, retirement, retiree medical or life insurance, supplemental retirement, severance, termination or change in control or other benefit plans, programs or arrangements, and all employment, consulting, termination, severance or other contracts or agreements, whether or not in writing and whether or not funded, with respect to which any member of the Company Group has or may have any obligation or which are maintained, contributed to or sponsored by any member of the Company Group for the benefit of any current or former employee, officer, director or consultant of any member of the Company Group.

"<u>Company Board</u>" means the board of directors of the Company.

"<u>Company Common Stock</u>" means the common stock, par value $0.001, of the Company.

"<u>Company Equity Award</u>" means a Company RSU Award or any other equity award granted under the Company Equity Award Plan.

"<u>Company Equity Award Plan</u>" means the Company's 2020 Omnibus Incentive Plan.

"<u>Company Group</u>" means the Company and each Subsidiary of the Company.

"<u>Company Intervening Event</u>" means any material event, circumstance, change, effect, development or condition with respect to the Company Group or its business that (i) was not known or reasonably foreseeable by the Company Board as of execution and delivery of this Agreement and (ii) first becomes known to the Company Board after the execution and delivery of this Agreement and at any time prior to the time the Company Stockholder Approval is obtained; <u>provided</u>, <u>however</u>, that in no event shall any event, circumstance, change, effect, development or condition resulting from or relating to any of the following give rise to a Company Intervening Event: (a) the receipt, existence, or terms of a Company Acquisition Proposal or Company Superior Proposal (which, for purposes of this definition, shall be read without reference to any percentages set forth in the definitions of "Company Acquisition Proposal" and "Company Superior Proposal") or any matter relating thereto or consequence thereof; (b) the announcement or pendency of the transactions contemplated by this Agreement, including the Merger; (c) any breach of this Agreement by the Company; (d) the fact that the Company has exceeded or met any internal or published (including analyst) projections, expectations, forecasts or predictions in respect of the Company's revenue, earnings or other financial performance or results of operations; or (e) any changes in the market price or trading volume of the shares of Company Common Stock.

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"<u>Company Material Adverse Effect</u>" means any change, event, circumstance, development, condition, occurrence or effect (each, an "<u>Effect</u>") that, individually or in the aggregate, (a) would, or would reasonably be expected to, prevent, materially impair or materially delay the ability of the Company to, by the Outside Date, consummate the transactions contemplated by this Agreement that are to occur at or prior to the Closing, or (b) has had, or would reasonably be expected to have, a material adverse effect on the business, condition (financial or otherwise), assets or results of operations of the Company Group, taken as a whole; <u>provided</u>, <u>however</u>, that in the case of this clause (b) only, the determination of the existence of any "Company Material Adverse Effect" shall not take into account any of the following: (i) any changes after the date hereof in general economic conditions, or in securities, credit or financial markets, including changes in interest rates and changes in exchange rates, in the United States or any other country or region in the world, or any industry-wide development after the date hereof generally affecting airline companies; (ii) any change after the date hereof in GAAP or any applicable Laws affecting the operation of the business of the Company Group; (iii) any change resulting from the announcement or pendency of the transactions contemplated by this Agreement, including the Merger, including the impact thereof on the relationships, contractual or otherwise, of the Company Group with employees (including any employee attrition), suppliers, customers, partners, lenders, lessors, vendors, Governmental Entities or any other third Person (it being understood that this <u>clause (iii)</u> shall not apply to any representation, warranty, covenant or agreement of the Company herein that is expressly intended to address the consequences of the execution, delivery or performance of this Agreement or the consummation of the transactions contemplated hereby); (iv) any change after the date hereof in regulatory, legislative or political conditions in the United States or any other country or region in the world; (v) acts of war, outbreak or escalation of hostilities, terrorism, sabotage, or other changes in geopolitical conditions, earthquakes, volcanic eruptions, hurricanes, tsunamis, tornados, floods, mudslides, wild fires or other natural disasters, any epidemic, pandemic, outbreak of illness or other public health event (including, for the avoidance of doubt, COVID-19 and the impact of COVID-19 or any COVID-19 Measures on the Company Group) and other similar events in the United States or any other country or region in the world, in each case arising after the date hereof; (vi) any failure by the Company to meet any internal or published (including analyst) budgets, projections, expectations, forecasts or predictions in respect of the Company Group's revenue, earnings or other financial performance or results of operations (it being understood that the underlying facts and circumstances giving rise to such event may be deemed to constitute, and may be taken into consideration in determining whether there has been, a Company Material Adverse Effect); (vii) any action required to be taken or omitted by the Company or any member of the Company Group pursuant to this Agreement or taken or omitted at the express written request of Parent; (viii) any change after the date hereof in the market price or trading volume, or the downgrade in rating, of the Company's securities (it being understood that the underlying facts and circumstances giving rise to such event may be deemed to constitute, and may be taken into consideration into determining whether there has been, a Company Material Adverse Effect); (ix) any change after the date hereof in the conditions in the industries in which the Company Group conducts business (including as the result of fuel or other commodity price changes); (x) the development, continuation or worsening, in each case after the date hereof, of supply chain or service disruptions affecting the Company Group; or (xi) any breach by Parent of this Agreement; <u>provided</u>, <u>further</u>, that the Effects set forth in the foregoing <u>clauses (i)</u>, <u>(ii)</u>, <u>(iv)</u>, <u>(v)</u>, <u>(ix)</u> and <u>(x)</u> shall be taken into account in determining whether there has occurred a Company Material Adverse Effect only to the extent such Effects have, individually or in the aggregate, a disproportionate adverse impact on the Company Group relative to other companies in the airline industry, in which case only the incremental disproportionate adverse impact may be taken into account in determining whether a Company Material Adverse Effect has occurred.

"<u>Company RSU</u>" means each award of restricted stock units (whether subject to time- or performance-based vesting conditions) granted pursuant to the Company Equity Award Plan.

"<u>Company Stockholder</u>" shall mean any Person who is a holder of Company Common Stock.

"<u>Company Superior Proposal</u>" means a *bona fide* written Company Acquisition Proposal (except the references therein to "20%" will be replaced by "50%") made by any Person or group (other than Parent) after the date of this Agreement that the Company Board has determined in its good faith judgment, after consultation

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with its outside legal counsel and with its financial advisors, (a) would result in a transaction that is more favorable to the Company's stockholders, from a financial point of view, than the Merger (after giving effect to all adjustments to the terms thereof which may be offered by Parent pursuant to <u>Section</u> <u>5.6(g)</u>) and after taking into account the identity of the Person or group making the proposal, likelihood of consummation of such transaction in accordance with the terms of such Company Acquisition Proposal and legal, financial, regulatory, timing and other applicable aspects of such Company Acquisition Proposal; and (b) is reasonably capable of being consummated in accordance with the material terms thereof substantially within the timeframe contemplated by such Company Acquisition Proposal.

<u>"Company Warrants" means the warrants issued by the Company to Treasury prior to the date hereof.</u>

"<u>Company Written Consent</u>" means the written consent of a Company Stockholder, in a form to be selected by the Company following the date hereof.

"<u>Competition Law</u>" means any domestic or foreign antitrust, competition and merger control law or regulation that is applicable to the transactions contemplated by this Agreement.

"<u>Contract</u>" shall mean any legally binding contract, subcontract, lease, sublease, conditional sales contract, resolution, settlement, purchase order, sales order, license, indenture, note, bond, loan, commitment, instrument or other agreement.

"<u>control</u>" means the possession, directly or indirectly, including through one or more intermediaries, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities or partnership or other interests, by Contract or otherwise. The terms "controlling" and "controlled by" shall have correlative meanings.

"<u>COVID-19</u>" means the emergence or spread of SARS-CoV-2 or COVID-19 (including any evolutions, mutations or variations thereof) and any other epidemics, pandemics or disease outbreaks.

"<u>COVID-19 Measures</u>" means any quarantine, "shelter in place," "stay at home," workforce reduction, social distancing, shut down, closure, sequester, safety or similar Law, directive, guideline, response or recommendation of or promulgated by any Governmental Entity, including the Centers for Disease Control and Prevention and the World Health Organization, or other reasonable actions taken, in each case, in connection with or in response to COVID-19 and including, in each case, any changes in any such Law, directive, guidance, response or recommendation.

"<u>DGCL</u>" means the General Corporation Law of the State of Delaware, as amended from time to time.

"<u>DOJ</u>" shall mean the United States Department of Justice or any successor thereto.

"<u>DOT</u>" means the United States Department of Transportation or any successor thereto.

"<u>Environmental Laws</u>" means any and all international, federal, state, local or foreign Laws, statutes, ordinances, regulations, treaties, policies, rules, judgments, orders, writs, court decisions or rule of common law, stipulations, injunctions, consent decrees, permits, restrictions and licenses, which (a) regulate or relate to pollution or the protection or clean-up of the environment; the use, treatment, storage, transportation, handling, or Release of Hazardous Substances, the preservation or protection of waterways, groundwater, drinking water, air, wildlife, plants or other natural resources, or the health and safety of Persons or property, including protection of the health and safety of employees; or (b) impose liability or responsibility with respect to any of the foregoing, including the Comprehensive Environmental Response, Compensation and Liability Act (42 U.S.C. § 9601 et seq.), or any other law of similar effect.

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"<u>Environmental Permits</u>" means any permit, approval, identification number, license and other authorization required under any applicable Environmental Law.

"<u>Equity Interest</u>" means any share, capital stock, partnership, phantom equity, member or similar interest in any Person, and any option, warrant, right or security (including debt securities) convertible, exchangeable or exercisable thereto or therefor.

"<u>ERISA</u>" means the Employee Retirement Income Security Act of 1974, as amended, and the rules and regulations promulgated thereunder.

"<u>ERISA Affiliate</u>" of any entity means any other entity which, together with such entity, would be treated as a single employer under Section 414 of the Code.

"<u>Escrow Asset</u>" has the meaning ascribed to such term in the Escrow Agreement; provided, however, that the Escrow Asset and any amounts payable therefrom to holders of Parent Common Stock immediately prior to the Effective Time in accordance with <u>Section</u> <u>2.6</u> hereof shall consist solely of shares of Parent Common Stock (or cash in lieu of fractional shares thereof) and rights in respect of such shares.

"<u>Exchange Act</u>" means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

"<u>FAA</u>" means the United States Federal Aviation Administration or any successor thereto.

"<u>Federal Aviation Act</u>" means Subtitle VII of Title 49 of the U.S. Code.

"<u>Federal Aviation Regulations</u>" means Title 14 of the Code of Federal Regulations.

"<u>Foreign Benefit Plans</u>" means Parent Benefit Plans that are maintained for the benefit of any current or former employee, officer or director of Parent or any of its Subsidiaries who is located primarily in a country other than the United States and/or their dependents or that are subject to the laws of any jurisdictions other than the United States, excluding any benefit plan mandated or pursuant to which Parent or its Subsidiaries is required to contribute, in either case, under applicable Law.

"<u>FTC</u>" shall mean the United States Federal Trade Commission or any successor thereto.

"<u>GAAP</u>" shall mean the U.S. generally accepted accounting principles, in effect from time to time.

"<u>Governmental Entity</u>" means (a) any national, federal, state, county municipal, local or foreign government, or other political subdivision thereof; (b) any public international or multinational organization or authority; (c) any authority, agency, commission, or any entity exercising executive, legislative, judicial, regulatory, police, taxing or administrative functions, power or authority of or pertaining to government; or (d) any state-owned or controlled enterprise.

"<u>Government Official</u>" means: (a) any director, officer, employee, or representative of any Governmental Entity; (b) any Person acting in an official capacity for any Governmental Entity; or (c) any political party, party official, or candidate for political office.

"<u>group</u>" has the meaning ascribed to in the Exchange Act, except where the context otherwise requires.

"<u>Hazardous Substances</u>" means any pollutant, chemical, substance, and any toxic, infectious, carcinogenic, reactive, corrosive, ignitable or flammable chemical, or chemical compound, or hazardous substance, material or waste, or any infectious agent or biological material, whether solid, liquid or gas, that is subject to regulation,

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control or remediation under any Environmental Laws, including any quantity of asbestos in any form, urea formaldehyde, PCBs, radon gas, mold, crude oil or any fraction thereof, all forms of natural gas, petroleum products or by-products or derivatives, and per- and polyfluoroalkyl substances.

"<u>HSR Act</u>" shall mean the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the rules and regulations thereunder.

"<u>Indebtedness</u>" means, with respect to any Person, (a) indebtedness for borrowed money, whether current or funded, secured or unsecured, (b) debt securities (including notes, bonds, debentures or other similar instruments), (c) obligations with respect to leases required to be accounted for as capital or finance leases in accordance with GAAP or recorded as capital or finance leases in the consolidated financial statements of such Person, (d) for letters of credit, bank guarantees, and other similar Contracts entered into by or on behalf of such Person, (e) all obligations of such Person issued or assumed as the deferred purchase price of property (including any potential future earn-out, purchase price adjustment, release of "holdback" or similar payment), (f) pursuant to guarantees and arrangements having the economic effect of a guarantee of any obligation, liability or undertaking of any other Person contemplated by the foregoing clauses (a) through (e) of this definition, and (g) all obligations of the type referred to in clauses (a) through (f) of this definition of any Person other than the Company or any of its Subsidiaries or Parent or any of its Subsidiaries (as applicable, depending on the context), the payment of which the Company or any of its Subsidiaries or Parent or any of its Subsidiaries (as applicable) is liable, directly or indirectly, as obligor, guarantor, surety, or otherwise.

"<u>Intellectual Property Rights</u>" means, in any and all jurisdictions, (a) patents and patent applications and disclosures relating thereto (and any patents that issue as a result of those patent applications), and any renewals, reissues, reexaminations, extensions, continuations, continuations-in-part, divisionals and substitutions relating to any of the patents and patent applications, as well as all related foreign patent and patent applications that are counterparts to such patents and patent applications, (b) trademarks, service marks, trade dress, livery, logos, trade names, social media identifiers, and corporate names, whether registered or unregistered, and the goodwill associated therewith, together with any registrations and applications for registration thereof (collectively, "<u>Trademarks</u>"), (c) copyrights and rights under copyrights, whether registered or unregistered, including moral rights, and any registrations and applications for registration thereof, (d) rights in databases and data collections (including knowledge databases and customer lists), (e) trade secrets, know-how, methods and processes, (f) Internet domain name registrations and (g) any and all other intellectual property or proprietary rights whether now known or hereafter recognized, in each case of (a) – (g) whether registered or unregistered, and any applications for registration therefor.

"<u>IRS</u>" means the U.S. Internal Revenue Service.

"<u>Knowledge</u>" means the actual knowledge, after due inquiry of direct reports, of (i) the Persons set forth on <u>Appendix A</u> of the Company Disclosure Schedule (in reference to the "Knowledge of the Company") or (ii) the Persons set forth on <u>Appendix A</u> of the Parent Disclosure Schedule (in reference to the "Knowledge of Parent").

"<u>Law</u>" means any domestic, federal, state, municipal, local, national, supranational or foreign statute or law (whether statutory or common law), constitution, code, ordinance, rule, convention, regulation, Order, writ, judgment, decree, binding directive (including those of any applicable self-regulatory organization), arbitration award, agency determination, agency requirement or any other requirement adopted, promulgated or applied by any Governmental Entity, each as amended and now and hereafter in effect.

"<u>Lien</u>" means any lien, mortgage, pledge, conditional or installment sale agreement, encumbrance, charge, right of first refusal, easement, security interest, deed of trust, right-of-way, encroachment, community property interest or other claim in the nature of a security interest, whether voluntarily incurred or arising by operation of Law.

"<u>NASDAQ</u>" means the NASDAQ Stock Market LLC.

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"<u>NRS</u>" means the Nevada Revised Statutes.

"<u>Originally Scheduled Date</u>" means the date of the Parent Stockholder Meeting set forth in the Proxy Statement mailed by Parent to its stockholders for the Parent Stockholder Meeting.

"<u>Parent Acquisition Proposal</u>" means, with respect to Parent, any offer or proposal from any Person or group (other than the Company) concerning any, in a single transaction or series of related transactions, direct or indirect (a) merger, consolidation, business combination, share exchange, recapitalization, liquidation, dissolution, conversion, transfer, domestication or continuance or other transaction involving Parent which would result in any Person or group (or the shareholders of any Person or group) beneficially owning, directly or indirectly, more than 20% or more of the voting power of Parent or 20% or more of the voting power of the successor to Parent in such transaction or the resulting direct or indirect parent of Parent or such successor (or any securities convertible into, or exchangeable for, securities representing such voting power), (b) sale, lease, exchange, transfer, license or other disposition of assets of Parent representing 20% or more of the consolidated assets of Parent (whether based on the fair market value, revenue generation or net income), (c) issuance or sale by Parent of Equity Interests representing, convertible into or exchangeable for 20% or more of the voting power of Parent, (d) transaction in which any Person will acquire beneficial ownership, or the right to acquire beneficial ownership of shares of capital stock representing 20% or more of the voting power of Parent, (e) any tender offer or exchange offer, as defined pursuant to the Exchange Act, that if consummated would result, directly or indirectly, in any Person or group (or the shareholders of any Person or group) beneficially owning 20% or more of the voting power of Parent or (f) any combination of the foregoing (in each case, other than the Merger).

"<u>Parent Benefit Plans</u>" means, all "employee benefit plans" as defined in Section 3(3) of ERISA and all bonus, stock option, stock purchase, stock appreciation rights, restricted stock, stock-based or other equity-based, incentive, profit-sharing, deferred compensation, vacation, insurance, medical, welfare, fringe, retirement, retiree medical or life insurance, supplemental retirement, severance, termination or change in control or other benefit plans, programs or arrangements, and all employment, consulting, termination, severance or other contracts or agreements, whether or not in writing and whether or not funded, with respect to which any member of the Parent Group has or may have any obligation or which are maintained, contributed to or sponsored by any member of the Parent Group for the benefit of any current or former employee, officer, director or consultant of any member of the Parent Group.

"<u>Parent Board</u>" means the board of directors of Parent.

"<u>Parent Common Stock</u>" shall mean the common stock, no par value, of Parent.

"<u>Parent Equity Award</u>" means an award of Parent RSUs, a Parent Restricted Stock Award or any other equity award granted under the Parent Equity Award Plan.

"<u>Parent Equity Award Plan</u>" means Parent's 2018 Equity Incentive Plan.

"<u>Parent Group</u>" means Parent and each Subsidiary of Parent.

"<u>Parent Intervening Event</u>" means any material event, circumstance, change, effect, development or condition with respect to the Parent Group or its business that (i) was not known or reasonably foreseeable by the Parent Board as of execution and delivery of this Agreement and (ii) first becomes known to the Parent Board after the execution and delivery of this Agreement and at any time prior to the time the Parent Stockholder Approval is obtained; <u>provided</u>, <u>however</u>, that in no event shall any event, circumstance, change, effect, development or condition resulting from or relating to any of the following give rise to a Parent Intervening Event: (a) the receipt, existence, or terms of a Parent Acquisition Proposal or Parent Superior Proposal (which, for purposes of this definition, shall be read without reference to any percentages set forth in the definitions of "Parent Acquisition Proposal" and "Parent Superior Proposal") or any matter relating thereto or consequence

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thereof; (b) the announcement or pendency of the transactions contemplated by this Agreement, including the Merger; (c) any breach of this Agreement by Parent; (d) the fact that Parent has exceeded or met any internal or published (including analyst) projections, expectations, forecasts or predictions in respect of Parent's revenue, earnings or other financial performance or results of operations; or (e) any changes in the market price or trading volume of the shares of Parent Common Stock.

"<u>Parent IT Assets</u>" means any and all computers, computer software, applications (including but not limited to web and mobile applications), firmware, middleware, servers, workstations, devices, digital storage media, routers, hubs, switches, networks, data communications lines and all other information technology equipment and hardware, and all associated documentation, in each case, owned by, or licensed or leased to, the Parent Group.

"<u>Parent Material Adverse Effect</u>" means any Effect that, individually or in the aggregate, (a) would, or would reasonably be expected to, prevent, materially impair or materially delay the ability of Parent to, by the Outside Date, consummate the transactions contemplated by this Agreement that are to occur at or prior to the Closing, (b) would, or would reasonably be expected to, result in any material change in the Parent Group's ability to (i) conduct normal flying operations for its anticipated fleet as of the Closing or (ii) achieve the performance obligations required by any Parent Material Contracts, or (c) has had, or would reasonably be expected to have, a material adverse effect on the business, condition (financial or otherwise), assets or results of operations of the Parent Group, taken as a whole; provided, however, that in the case of this clause (c) only, the determination of the existence of any "Parent Material Adverse Effect" shall not take into account any of the following: (i) any changes after the date hereof in general economic conditions, or in securities, credit or financial markets, including changes in interest rates and changes in exchange rates, in the United States or any other country or region in the world, or any industry-wide development after the date hereof generally affecting airline companies; (ii) any change after the date hereof in GAAP or any applicable Laws affecting the operation of the business of the Parent Group; (iii) any change resulting from the announcement or pendency of the transactions contemplated by this Agreement, including the Merger, including the impact thereof on the relationships, contractual or otherwise, of the Parent Group with employees (including any employee attrition), suppliers, customers, partners, lenders, lessors, vendors, Governmental Entities or any other third Person (it being understood that this <u>clause (iii)</u> shall not apply to any representation, warranty, covenant or agreement of Parent herein that is expressly intended to address the consequences of the execution, delivery or performance of this Agreement or the consummation of the transactions contemplated hereby); (iv) any change after the date hereof in regulatory, legislative or political conditions in the United States or any other country or region in the world; (v) acts of war, outbreak or escalation of hostilities, terrorism, sabotage, or other changes in geopolitical conditions, earthquakes, volcanic eruptions, hurricanes, tsunamis, tornados, floods, mudslides, wild fires or other natural disasters, any epidemic, pandemic, outbreak of illness or other public health event (including, for the avoidance of doubt, COVID-19 and the impact of COVID-19 or any COVID-19 Measures on the Parent Group) and other similar events in the United States or any other country or region in the world, in each case arising after the date hereof; (vi) any failure by Parent to meet any internal or published (including analyst) budgets, projections, expectations, forecasts or predictions in respect of the Parent Group's revenue, earnings or other financial performance or results of operations (it being understood that the underlying facts and circumstances giving rise to such event may be deemed to constitute, and may be taken into consideration in determining whether there has been, a Parent Material Adverse Effect); (vii) any action required to be taken or omitted by Parent or any member of the Parent Group pursuant to this Agreement or taken or omitted at the express written request of the Company; (viii) any change after the date hereof in the market price or trading volume, or the downgrade in rating, of Parent's securities (it being understood that the underlying facts and circumstances giving rise to such event may be deemed to constitute, and may be taken into consideration into determining whether there has been, a Parent Material Adverse Effect); (ix) any change after the date hereof in the conditions in the industries in which the Parent Group conducts business (including as the result of fuel or other commodity price changes); (x) the development, continuation or worsening, in each case after the date hereof, of supply chain or service disruptions affecting the Parent Group; or (xi) any breach by the Company of this Agreement; <u>provided</u>, <u>further</u>, that the Effects set forth in the foregoing <u>clauses (i)</u>, <u>(ii)</u>, <u>(iv)</u>, <u>(v)</u>, <u>(ix)</u> and <u>(x)</u> shall be taken

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into account in determining whether there has occurred a Parent Material Adverse Effect only to the extent such Effects have, individually or in the aggregate, a disproportionate adverse impact on the Parent Group relative to other companies in the airline industry, in which case only the incremental disproportionate adverse impact may be taken into account in determining whether a Parent Material Adverse Effect has occurred.

"<u>Parent Registered IP</u>" means all Intellectual Property Rights included in the Parent Owned Intellectual Property that are registered, filed, or issued under the authority of any Governmental Entity or domain name registrar, including all patents, registered copyrights, registered Trademarks and domain names and all applications for any of the foregoing.

"<u>Parent Restricted Stock Award</u>" means each award of restricted stock subject to time- or performance-based vesting conditions granted pursuant to the Parent Equity Award Plan.

"<u>Parent RSU</u>" means each award of restricted stock units (whether subject to time- or performance-based vesting conditions) granted pursuant to the Parent Equity Award Plan.

"<u>Parent Stock Value</u>" means the average of the volume weighted average price per share of Parent Common Stock on NASDAQ (as reported by Bloomberg L.P. or, if not reported therein, in another authoritative source mutually selected by Parent and the Company) on each of the 5 consecutive trading days ending with the last complete trading day 3 days immediately prior to the Closing Date.

"<u>Parent Superior Proposal</u>" means a *bona fide* written Parent Acquisition Proposal (except the references therein to "20%" will be replaced by "50%") made by any Person or group (other than the Company) after the date of this Agreement that the Parent Board has determined in its good faith judgment, after consultation with its outside legal counsel and with its financial advisors, (a) would result in a transaction that is more favorable to Parent's stockholders, from a financial point of view, than the Merger (after giving effect to all adjustments to the terms thereof which may be offered by the Company pursuant to <u>Section</u> <u>5.4(g)</u>) and after taking into account the identity of the Person or group making the proposal, likelihood of consummation of such transaction in accordance with the terms of such Parent Acquisition Proposal and legal, financial, regulatory, timing and other applicable aspects of such Parent Acquisition Proposal; and (b) is reasonably capable of being consummated in accordance with the material terms thereof substantially within the timeframe contemplated by such Parent Acquisition Proposal.

"<u>Parent Treasury Documents</u>" means, collectively, (i) the Warrant Agreement, dated as of October 30, 2020, between Parent and the Treasury, (ii) the warrants issued to the Treasury to purchase up to an aggregate of 4,899,497 shares of Parent Common Stock and (iii) any other Contracts entered into between any member of the Parent Group and the Treasury.

"<u>Parent Treasury Restrictions</u>" means the restrictions and limitations that Parent has been, and will continue to be, subject to as a result of Parent's participation in the PSP, PSP2 and PSP3, including, but not limited to, the: (i) requirement that funding received under the PSP, PSP2 and PSP3 be used exclusively for the payment of wages, salaries and benefits to employees, (ii) prohibition on the payment of dividends until September 30, 2022, (iii) prohibition on the repurchase of any of Parent's equity securities that are listed on a national securities exchange until September 30, 2022, (iv) restrictions on the involuntary termination or furlough of certain employees until the later of September 30, 2021, and the date on which all of the funding received under the PSP, PSP2 and PSP3 has been expended, (v) restrictions on the reduction of the salary, pay rate and benefits of certain employees until the later of September 30, 2021, and the date on which all of the funding received under the PSP, PSP2 and PSP3 has been expended, (vi) limitations on certain executive compensation including, but not limited to, pay increases and severance pay or other benefits upon terminations, until April 1, 2023, (vii) requirements to maintain certain levels of scheduled air transportation services through March 1, 2022, and (viii) additional reporting and recordkeeping requirements.

<u>"Parent Warrants" means the warrants issued by Parent to Treasury prior to the date hereof.</u>

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"<u>PCI DSS</u>" shall mean the Payment Card Industry Data Security Standard, issued by the Payment Card Industry Security Standards Council, as may be revised from time to time.

"<u>Permitted Liens</u>" means (a) Liens for Taxes not yet delinquent or that are being contested in good faith by appropriate Proceedings and for which adequate reserves have been established in accordance with GAAP, (b) Liens in favor of vendors, carriers, warehousemen, repairmen, mechanics, workmen, materialmen, construction or similar liens or other encumbrances arising by operation of Law, (c) zoning, entitlement, building codes and other land use regulations, ordinances or legal requirements imposed by any Governmental Entity having jurisdiction over real property, (d) all rights relating to the construction and maintenance in connection with any public utility of wires, poles, pipes, conduits and appurtenances thereto, on, under or above real property, (e) Liens in favor of lessors arising in connection with any Company Leased Real Property or Parent Leased Real Property (as applicable), (f) Liens pursuant to the Company's or Parent's, or their respective Subsidiaries', existing Indebtedness, (g) any pledge, deposit or other lien securing the performance of bids, trade contracts, leases, surety and appeal bonds, performance bonds, letters of credit and other obligations of a similar nature, in each case, incurred in the ordinary course of business, (h) pledges or deposits arising in the ordinary course of business to secure obligations under workers' compensation laws or similar legislation or to secure public or statutory obligations, (i) non-exclusive licenses of Intellectual Property Rights in the ordinary course of business, and (j) Liens that do not materially detract from the value or materially interfere with any present or intended use of such property or assets.

"<u>Person</u>" means any individual, general or limited partnership, corporation, limited liability company, business trust, joint stock company, trust, unincorporated organization, joint venture, firm, association or other entity or organization (whether or not a legal entity), including any Governmental Entity (or any department, agency, or political subdivision thereof).

"<u>Personal Information</u>" means all information that identifies or could reasonably be used to identify an individual, a household or an individual's or household's device (*e.g.*, device identifiers, IP address, MAC address, or other device identifier), and any information that constitutes "personal information," "personal data," "protected health information," or a similar term under applicable Laws. Personal Information includes such information in any form, including paper, electronic, and other forms.

"<u>Privacy Laws</u>" means all applicable Laws in any country, jurisdiction or territory of the world as amended, consolidated, re-enacted or replaced from time to time, in each case, regarding privacy, or data security, or data protection or that are applicable to the Processing of Personal Information, including such Laws relating to cross-border transfers of Personal Information, data breach notification, website and mobile application privacy policies and practices, use of cookies, pixels and tracking technologies, use of geolocation technologies, and email, text message or telephone communications, which may include to the extent applicable, the Federal Trade Commission Act; the Telemarketing Sales Rule; the Children's Online Privacy Protection Act; the Telemarketing Consumer Protection Act; the CAN-SPAM Act; the Health Insurance Portability and Accountability Act; the Gramm-Leach-Bliley Act; the Fair Credit Reporting Act; the California Consumer Privacy Act of 2018, as amended by the California Privacy Rights Act, and all implementing regulations thereto; the California Invasion of Privacy Act; the Colorado Privacy Act; the Connecticut Data Privacy Act; the Illinois Biometric Information Privacy Act; the Virginia Consumer Data Protection Act; the Utah Consumer Privacy Act; Regulation (EU) 2016/679 (GDPR); the UK Data Protection Act and its implementation of GDPR; Canada's Personal Information Protection and Electronic Documents Act; the Japan Act on the Protection of Personal Information Act No. 57 of 2003; the Hong Kong Personal Data (Privacy) Ordinance; the South Korea Personal Information Protection Act (PIPA); and the Australia Privacy Act 1988.

"<u>Pro Rata Share</u>" means the percentage equal to a quotient, (a) the numerator of which is one (1), and (b) the denominator of which is the sum, without duplication, of (i) the total number of shares of Parent Common Stock issued and outstanding as of immediately prior to the Effective Time, excluding, for the avoidance of doubt, the number of shares issued in the Primary Issuance, plus (ii) the total number of shares of Parent Common Stock

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issuable upon the acceleration and settlement of the Parent RSUs and Parent Restricted Stock Awards outstanding as of immediately prior to the Effective Time in accordance with <u>Section</u> <u>2.4(a)</u>.

"<u>Proceeding</u>" shall mean any legal, administrative, arbitral or other proceeding, complaint, suit, claim, action, charge, hearing, litigation (whether civil, criminal, administrative, judicial or investigative), arbitration, mediation, audit, demand review, examination inquiry or investigation by or before any Governmental Entity, arbitrator, or mediator.

"<u>Process</u>" (or "<u>Processing</u>") means to perform any operation or set of operations upon data, whether manually or by automatic means, including blocking, erasing, destroying, collecting, compiling, combining, analyzing, enhancing, enriching, recording, sorting, organizing, structuring, accessing, storing, processing, adapting, retaining, retrieving, consulting, using, transferring, aligning, cleaning, transmitting, disclosing, altering, distributing, disseminating, or otherwise making available data.

"<u>PSP</u>" means the Payroll Support Program established under Division A, Title IV, Subtitle B of the CARES Act.

"<u>PSP2</u>" means the Payroll Support Program Extension established under Subtitle A of Title IV of Division N of the Consolidated Appropriations Act, 2021 (December 27, 2020), as the same may be amended from time to time.

"<u>PSP3</u>" means the Payroll Support Program established under Section 7301 of the American Rescue Plan Act of 2021 (March 11, 2021), as the same may be amended from time to time.

"<u>Representative</u>" means, with respect to any Person, any director, principal, partner, manager, member (if such Person is a member-managed limited liability company or similar entity), employee (including any officer), consultant, investment banker, financial advisor, legal counsel, attorney-in-fact, accountant or other advisor, agent or other representative of such Person, in each case acting in their capacity as such.

"<u>Release</u>" means any release, spill, emission, leaking, pumping, pouring, emptying, leaching, escaping, dumping, injection, deposit, discharge or disposing of any Hazardous Substances in, onto or through the outdoor or indoor environment.

"<u>Restricted Share</u>" means each outstanding and issued share of capital stock of the Company or Parent, as applicable, that is subject to one or more vesting conditions.

"<u>SEC</u>" shall mean the U.S. Securities and Exchange Commission.

"<u>Securities Act</u>" shall mean the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

"<u>Stockholder Litigation</u>" means any Proceeding commenced by an actual or purported holder of shares of capital stock of Parent against a Party or any of its Subsidiaries, Affiliates, directors, or employees relating to, involving or affecting such Party or any of its Subsidiaries, Affiliates, directors or employees, in each case, in connection with, arising from or otherwise relating to the transactions contemplated by this Agreement, including any Proceeding alleging or asserting any misrepresentation or omission in the Form S-4 or the Proxy Statement or any other communications to the holders of such shares, in each case other than any Proceedings solely among the Parties or their respective Affiliates related to this Agreement or the transactions contemplated hereby, including the Merger.

"<u>Subsidiary</u>" of a Person means any other Person with respect to which the first Person (a) has the right to elect a majority of the board of directors or other Persons performing similar functions or (b) beneficially owns more than 50% of the voting stock (or of any other form of voting or controlling equity interest in the case of a Person that is not a corporation), in each case, directly or indirectly through one or more other Persons.

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"<u>Tax</u>" or "<u>Taxes</u>" shall mean any and all U.S. federal, state, local or non-U.S. taxes, withholdings, charges, fees, levies or other assessments or other similar charges in the nature of a tax imposed by any Governmental Entity, including any income, excise, property, sales, use, occupation, transfer, conveyance, payroll or other employment-related tax, workers' compensation, unemployment compensation, recapture, escheat, duties, license, registration, ad valorem, value-added, social charges, social security, national insurance (or other similar contributions or payments), franchise, estimated severance, stamp taxes, windfall or other profits, taxes based upon or measured by capital stock, capital gains, net worth or gross receipts, custom duties and other taxes together with all interest, fines, penalties and additions attributable to or imposed with respect to such amounts.

"<u>Tax Return</u>" shall mean any report, return, information return, form, declaration, statement, or other information (including any amendments thereto and including any schedule or statement thereto) filed or required to be filed by applicable law in connection with the determination, assessment or collection of any Tax.

"<u>Treasury</u>" means the United States Department of the Treasury.

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#### APPENDIX B

#### INDEX OF DEFINED TERMS

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| | |
|:---|:---|
| **Term** | **Section** |
| 10 BD Solicitation Period | Section 5.5(a) |
| AFAC | Section 6.1(g) |
| Agreement | Preamble |
| Antitrust Proceeding | Section 5.8(b) |
| Applicable Requirement | Section 4.6(b) |
| Articles of Conversion | Section 1.2(c) |
| Aviation Approvals | Section 6.1(g) |
| CAA | Section 3.5 |
| Cancelled Shares | Section 2.1(b) |
| Certificate of Conversion | Section 1.2(c) |
| Certificate of Merger | Section 1.3(b) |
| Change of Company Recommendation | Section 5.6(f) |
| Change of Parent Recommendation | Section 5.4(f) |
| Chosen Courts | Section 8.10(b) |
| Closing | Section 1.1 |
| Closing Date | Section 1.1 |
| Company | Preamble |
| Company Alternative Acquisition Agreement | Section 5.6(b) |
| Company Bylaws | Section 3.1(c) |
| Company Charter | Section 3.1(c) |
| Company D&O Insurance | Section 5.13(c) |
| Company Data Privacy Requirements | Section 3.16(a) |
| Company Disclosure Schedule | Article III |
| Company Financial Statements | Section 3.7(a) |
| Company Insurance Policies | Section 3.17 |
| Company Intervening Event Notice Period | Section 5.6(h)(i) |
| Company Notice Period | Section 5.6(g)(i) |
| Company Permits | Section 3.6(a) |
| Company PII Security Incident | Section 3.16(c) |
| Company Recommendation | Section 3.3(b) |
| Company Stockholder Approval | Section 3.3(c) |
| Company Union Employees | Section 5.11(e) |
| Competition Authorities | Section 5.8(d) |
| Confidentiality Agreement | Section 5.3 |
| Constituent Entity | Section 1.2(a) |
| Continuing Company Employees | Section 5.11(a) |
| Continuing Parent Employee | Section 5.11(a) |
| Conversion | Recitals |
| Conversion Effective Time | Section 1.2(c) |
| Conversion Filings | Section 1.2(c) |
| CPA Side Letter | Recitals |
| DHS | Section 3.5 |
| Dissenting Shares | Section 2.1(d)(i) |
| DOT | Section 3.5 |
| Draft 2024 Audit Opinion | Section 4.7(g) |
| Draft 2024 Financial Statements | Section 4.7(g) |
| Draft 2025 Q1 Financial Statements | Section 4.7(h) |
| EDGAR | Article IV |
| Effective Time | Section 1.3(b) |

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| | |
|:---|:---|
| **Term** | **Section** |
| Enforceability Exceptions | Section 3.3(a) |
| Escrow Agreement | Recitals |
| Escrow Shares | Section 1.2(f) |
| Exchange Agent | Section 2.2(a) |
| Exchange Fund | Section 2.2(a) |
| Exchange Ratio | Section 2.1(a) |
| FAA | Section 3.5 |
| Fairness Opinion | Section 4.28 |
| FCC | Section 3.5 |
| Final 2024 Audit Opinion | Section 6.3(h) |
| Final 2024 Financial Statements | Section 6.3(h) |
| Final 2025 Q1 Financial Statements | Section 6.3(i) |
| Form S-4 | Section 4.5 |
| FTI | Section 4.28 |
| Go-Forward CPA | Recitals |
| Intended Tax Treatment | Section 5.17(a) |
| Interim Period | Section 5.1 |
| Letter of Transmittal | Section 2.2(b) |
| Marcum | Section 4.7(c) |
| Merger | Section 1.3(a) |
| Merger Consideration | Section 2.1(a) |
| Mesa Representatives | Section 8.14(a) |
| Non-Recourse Party | Section 8.13 |
| OFAC | Section 4.30 |
| Order | Section 3.10(b) |
| Other Consents | Section 4.5 |
| Outside Date | Section 7.1(b)(ii) |
| Parent | Preamble |
| Parent Aircraft | Section 4.24(a) |
| Parent Aircraft Finance Contract | Section 4.24(e) |
| Parent Aircraft Purchase Contract | Section 4.24(d) |
| Parent Airport | Section 4.26 |
| Parent Alternative Acquisition Agreement | Section 5.4(b) |
| Parent Anti-Corruption Laws | Section 4.6(c) |
| Parent Bylaws | Section 4.1(c) |
| Parent CBAs | Section 4.13(b) |
| Parent Charter | Section 4.1(c) |
| Parent D&O Insurance | Section 5.12(c) |
| Parent Data Privacy Requirements | Section 4.18(a) |
| Parent Disclosure Schedule | Article IV |
| Parent Financial Statements | Section 4.7(a) |
| Parent Insurance Policies | Section 4.20 |
| Parent Intervening Event Notice Period | Section 5.4(h)(i) |
| Parent Leased Real Property | Section 4.22(a) |
| Parent Licensed Intellectual Property | Section 4.17(a) |
| Parent Malicious Code | Section 4.17(f) |
| Parent Material Contract | Section 4.14(a) |
| Parent Notice Period | Section 5.4(g)(i) |
| Parent Owned Aircraft | Section 4.24(f) |
| Parent Owned Intellectual Property | Section 4.17(a) |
| Parent Permits | Section 4.6(a) |
| Parent PII Security Incident | Section 4.18(c) |
| Parent Recommendation | Section 4.3(b) |

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| | |
|:---|:---|
| **Term** | **Section** |
| Parent Related Party Transaction | Section 4.23 |
| Parent Restricted Stock Award | Section 2.5(a) |
| Parent SEC Documents | Section 4.7(a) |
| Parent Service Providers | Section 4.12(g) |
| Parent Slots | Section 4.25(a) |
| Parent Stockholder Approval | Section 4.3(c) |
| Parent Stockholder Meeting | Section 5.5(c) |
| Parent Union Employees | Section 5.11(e) |
| Parties | Preamble |
| Plan of Conversion | Recitals |
| Post-Conversion Parent Bylaws | Section 1.2(d) |
| Post-Conversion Parent Charter | Section 1.2(c) |
| Potential Purchasers | Section 5.8(j) |
| Potential Sale Transaction | Section 5.8(j) |
| Primary Issuance | Recitals |
| Proxy Statement | Section 4.5 |
| R&W Policy | Section 5.18 |
| Resulting Entity | Section 1.2(a) |
| S-4/Proxy Permitted Filing Date | Section 5.5(a) |
| Sanctions | Section 4.30 |
| Security Events | Section 4.17(g) |
| Separation and Consulting Agreement | Recitals |
| Specified Regulations | Section 3.5 |
| Surviving Corporation | Section 1.3(a) |
| Surviving Corporation Board | Section 1.4(a) |
| Takeover Law | Section 3.8 |
| Termination Fee | Section 7.3(a) |
| Three Party Agreement | Recitals |
| Trade Compliance Laws | Section 4.30 |
| Transaction Agreements | Recitals |
| TSA | Section 3.5 |
| United | Recitals |
| Unvested Company RSU | Section 2.5(a) |
| Vested Company RSU | Section 2.5(a) |
| Vote-Taking Parent Stockholder Meeting | Section 7.1(b)(iii) |

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#### Exhibit 1
<u>Form of Post-Conversion Parent Charter</u> 

*See attached* 

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#### CERTIFICATE OF INCORPORATION

#### OF

#### MESA AIR GROUP INC.<sup></sup>

#### ARTICLE I
Section 1.1. <u>Name</u>. The name of the Corporation is Mesa Air Group, Inc. (the "<u>Corporation</u>").

#### ARTICLE II
Section 2.1. <u>Address</u>. The address of the registered office of the Corporation in the State of Delaware is 251 Little Falls Drive, City of Wilmington, County of New Castle, Delaware 19808; the name of the Corporation's registered agent at such address is Corporation Service Company.

#### ARTICLE III
Section 3.1. <u>Purpose</u>. The purpose of the Corporation is to engage in any lawful act or activity for which corporations may now or hereafter be organized under the General Corporation Law of the State of Delaware (as the same exists or may hereafter be amended from time to time, the "<u>DGCL</u>").

#### ARTICLE IV
Section 4.1. <u>Capitalization</u>. The total number of shares of all classes of stock that the Corporation is authorized to issue is [●] shares, which shall be divided into two classes as follows: (i) [●] shares of Common Stock, par value $0.001 per share ("<u>Common Stock</u>") and (ii) [●] shares of Preferred Stock, par value $0.001 per share ("<u>Preferred Stock</u>"). The number of authorized shares of any of the Common Stock or Preferred Stock may be increased or decreased (but not below the number of shares thereof then outstanding) by the requisite vote of the stockholders entitled to vote thereon irrespective of the provisions of Section 242(b)(2) of the DGCL (or any successor provision thereto), and no vote of the holders of any of the Common Stock or Preferred Stock voting separately as a class shall be required therefor, unless a vote of any such holder is expressly required pursuant to this Certificate of Incorporation (including any certificate of designation relating to any series of Preferred Stock).

Section 4.2. <u>Preferred Stock</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) The Board of Directors of the Corporation (the "<u>Board</u>") is hereby expressly authorized, by resolution or resolutions, at any time and from time to time, to provide, out of the authorized but unissued shares of Preferred Stock, for one or more series of Preferred Stock and, with respect to each such series, to fix the number of shares constituting such series and the designation of such series, the voting powers (full or limited or no voting powers) of the shares of such series, and the powers, preferences and relative, participating, optional or other special rights, if any, and any qualifications, limitations or restrictions thereof, of the shares of such series and to cause to be filed with the Secretary of State of the State of Delaware a certificate of designation with respect thereto. The powers, preferences and relative, participating, optional and other special rights of each series of Preferred Stock, and the qualifications, limitations or restrictions thereof, if any, may differ from those of any and all other series at any time outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Except as otherwise required by law, holders of a series of Preferred Stock, as such, shall be entitled only to such voting rights, if any, as shall expressly be granted thereto by this Certificate of Incorporation (including any certificate of designations relating to such series of Preferred Stock).

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Section 4.3. <u>Common Stock</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) <u>Voting Rights</u>. Each holder of Common Stock, as such, shall be entitled to one vote for each share of Common Stock held of record by such holder on all matters on which stockholders generally are entitled to vote; provided, however, that to the fullest extent permitted by law, holders of Common Stock, as such, shall have no voting power with respect to, and shall not be entitled to vote on, any amendment to this Certificate of Incorporation (including any certificate of designations relating to any series of Preferred Stock) that relates solely to the terms, number of shares, powers, designations, preferences or relative, participating, optional or other special rights (including, without limitation, voting rights, whether full or limited or no voting powers), or to qualifications, limitations or restrictions thereof, of one or more outstanding series of Preferred Stock if the holders of such affected series are entitled, either separately or together with the holders of one or more other such series, to vote thereon pursuant to this Certificate of Incorporation (including any certificate of designations relating to any series of Preferred Stock) or pursuant to the DGCL.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) <u>Dividends and Distributions</u>. Subject to applicable law and the rights, if any, of the holders of any outstanding series of Preferred Stock or any class or series of stock having a preference over or the right to participate with the Common Stock with respect to the payment of dividends and other distributions in cash, property or shares of capital stock of the Corporation, such dividends and other distributions may be declared and paid ratably on the Common Stock, ratably in proportion to the number of shares held by each such stockholder, out of the assets of the Corporation that are legally available for this purpose at such times and in such amounts as the Board in its discretion shall determine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) <u>Liquidation, Dissolution or Winding Up</u>. Subject to applicable law, in the event of any voluntary or involuntary liquidation, dissolution or winding up of the affairs of the Corporation, after payment or provision for payment of the debts and other liabilities of the Corporation, and subject to the right, if any, of the holders of any outstanding series of Preferred Stock or any class or series of stock having a preference over or the right to participate with the Common Stock as to distributions upon dissolution, liquidation or winding up of the Corporation, the holders of all outstanding shares of Common Stock shall be entitled to receive the remaining assets of the Corporation available for distribution to its stockholders ratably in proportion to the number of shares held by each such stockholder.

#### ARTICLE V
Section 5.1. <u>Bylaws</u>. In furtherance and not in limitation of the powers conferred by the DGCL, the Board is expressly authorized to make, alter, amend, change, add to, rescind or repeal, in whole or in part, the bylaws of the Corporation (as the same may be amended and/or restated from time to time, the "<u>Bylaws</u>") without the assent or vote of the stockholders in any manner not inconsistent with the laws of the State of Delaware or this Certificate of Incorporation. In addition to any vote of the holders of any class or series of capital stock of the Corporation required by this Certificate of Incorporation (including any certificate of designation relating to any series of Preferred Stock), by the Bylaws or applicable law, the affirmative vote of the holders of at least 66<sup>2</sup>/<sub>3</sub>% of the voting power of all the then-outstanding shares of stock of the Corporation entitled to vote thereon, voting together as a single class, shall be required in order for the stockholders of the Corporation to alter, amend, change, add to, repeal or rescind, in whole or in part, any provision of the Bylaws or to adopt any provision inconsistent therewith.

Section 5.2. <u>Certificate of Incorporation</u>. In addition to any vote required by applicable law or this Certificate of Incorporation (including any certificate of designation relating to any series of Preferred Stock), the amendment, alteration, repeal or rescission of, in whole or in part, or the adoption of any provision inconsistent with, the following provisions in this Certificate of Incorporation shall require the affirmative vote of the holders of at least 66<sup>2</sup>/<sub>3</sub>% of the voting power of all the then-outstanding shares of stock of the Corporation entitled to vote thereon, voting together as a single class: Article V, Article VI, Article VII, Article VIII and Article XII.

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#### ARTICLE VI
Section 6.1. <u>Board of Directors</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Except as otherwise provided in this Certificate of Incorporation or the DGCL, the business and affairs of the Corporation shall be managed by or under the direction of the Board. Except as otherwise provided for or fixed pursuant to the provisions of Article IV (including any certificate of designation with respect to any series of Preferred Stock) and this Article VI relating to the rights of the holders of any series of Preferred Stock to elect additional directors, the total number of directors constituting the whole Board shall be determined from time to time exclusively by resolution adopted by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Subject to the rights granted to the holders of any one or more series of Preferred Stock then outstanding, any newly-created directorship on the Board that results from an increase in the total number of directors and any vacancy occurring in the Board (whether by death, resignation, retirement, disqualification, removal or other cause) shall be filled only by the affirmative vote of a majority of the directors then in office (other than directors elected exclusively by the holders of any series of Preferred Stock, voting separately as a series or together with one or more such series, as the case may be), although less than a quorum, or by the sole remaining director (other than directors elected exclusively by the holders of any series of Preferred Stock, by voting separately as a series or together with one or more series, as the case may be) (and not by stockholders). Any director elected to fill a vacancy or newly created directorship shall hold office until the next annual meeting for the election of directors and until his or her successor shall be elected and qualified, or until his or her earlier death, resignation, retirement, disqualification or removal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) Any or all of the directors (other than the directors elected exclusively by the holders of any series of Preferred Stock, voting separately as a series or together with one or more other such series, as the case may be) may be removed at any time either with or without cause by the affirmative vote of a majority in voting power of all outstanding shares of stock of the Corporation entitled to vote thereon, voting together as a single class.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) During any period when the holders of any series of Preferred Stock, voting separately as a series or together with one or more series, have the right to elect additional directors, then upon commencement and for the duration of the period during which such right continues, and notwithstanding Section 6.1(A) hereof: (i) the then otherwise total authorized number of directors of the Corporation fixed pursuant to Section 6.1(A) hereof shall automatically be increased by such specified number of directors, and the holders of such Preferred Stock shall be entitled to elect the additional directors so provided for or fixed pursuant to said provisions, and (ii) each such additional director shall serve until such director's successor shall have been duly elected and qualified, or until such director's right to hold such directorship terminates pursuant to said provisions , whichever occurs earlier, subject to his or her earlier death, resignation, retirement, disqualification or removal. Notwithstanding any other provision of this Certificate of Incorporation, except as otherwise provided by the Board in the resolution or resolutions establishing such series, whenever the holders of any series of Preferred Stock having such right to elect additional directors are divested of such right pursuant to the provisions of such stock, the terms of office of all such additional directors elected by the holders of such stock, or elected to fill any vacancies resulting from the death, resignation, disqualification or removal of such additional directors, shall forthwith terminate (in which case each, such director shall cease to be qualified, and shall cease to be, a director), and the total authorized number of directors of the Corporation shall automatically be reduced accordingly, but in all events not less than the number of directors fixed pursuant to Section 6.1(A) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) Directors of the Corporation need not be elected by written ballot unless the Bylaws shall so provide.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) Notwithstanding anything to the contrary in this Certificate of Incorporation or the Bylaws, at least two-thirds of the members of the Board shall be "citizens of the United States" as provided under Applicable

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Transportation Law (as defined in Section 10.1 below), and the Chairman of the Board shall be a "citizen of the United States" as provided under Applicable Transportation Law (as defined in Section 10.1 below) for so long as required by Applicable Transportation Law. If the number of Non-Citizens (as defined in Section 10.1 below) serving on the Board at any time exceeds the limitations provided under Applicable Transportation Law, one or more directors who are Non-Citizens shall, in reverse chronological order based on their tenure of service on the Board, cease to be qualified as directors and shall automatically cease to be directors.

Section 6.2. <u>Officers</u>. Notwithstanding anything to the contrary in this Certificate of Incorporation or the Bylaws, the Chief Executive Officer and President and at least two-thirds of the other officers of the Corporation shall be "citizens of the United States" as provided under Applicable Transportation Law (as defined in Section 10.1 below) for so long as required by Applicable Transportation Law.

#### ARTICLE VII
Section 7.1. <u>Meetings of Stockholders</u>. Any action required or permitted to be taken by the holders of stock of the Corporation must be effected at a duly called annual or special meeting of such holders and may not be effected by any consent in lieu of a meeting by such holders unless such action is recommended by all directors of the Corporation then in office; *provided, however,* that notwithstanding the foregoing, to the extent expressly permitted by the certificate of designation relating to one or more series of Preferred Stock, by the holders of such series of Preferred Stock, voting or consenting separately as a series or separately as a class with one or more other such series, may be taken by consent in lieu of a meeting, without prior notice and without a vote, if a consent or consents in writing, setting forth the action so taken, shall be signed by the holders of outstanding shares of the relevant class or series having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares entitled to vote thereon were present and voted and shall be delivered to the Corporation in accordance with applicable law. Subject to the rights of the holders of any series of Preferred Stock, special meetings of the stockholders of the Corporation may be called only by or at the direction of the Board, the Chair of the Board or the Chief Executive Officer of the Corporation or, subject to compliance with the procedures and restrictions and limitations set forth in the Bylaws, by the Secretary upon the request of holders of stock of the Corporation entitling the holders thereof to not less than 20% of the total voting power of all the then outstanding shares of stock of the Corporation entitled to vote generally in the election of directors.

#### ARTICLE VIII
Section 8.1. <u>Limited Liability of Directors</u> <u>and Officers</u>. No director or officer of the Corporation will have any personal liability to the Corporation or its stockholders for monetary damages for any breach of fiduciary duty as a director or officer, except to the extent such exemption from liability or limitation thereof is not permitted under the DGCL as the same exists or hereafter may be amended. Neither the amendment nor the repeal of this Article VIII shall eliminate or reduce the effect thereof in respect of any state of facts existing or act or omission occurring, or any cause of action, suit or claim that, but for this Article VIII, would accrue or arise, prior to such amendment or repeal.

#### ARTICLE IX
Section 9.1. <u>Waiver of Corporate Opportunity Doctrine</u>. The Corporation renounces, in accordance with Section 122(17) of the DGCL, any application of the corporate opportunity doctrine in respect of the stockholders of the Corporation in their capacity as such.

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#### ARTICLE X
Section 10.1. <u>Non-Citizen Voting and Ownership Limitations</u>. All shares of Common Stock and Preferred Stock of the Corporation (collectively, "<u>Equity Securities</u>") shall be subject to the following limitations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) <u>Non-Citizen Voting and Ownership Limitations</u>. In no event shall persons or entities who fail to qualify as a "citizen of the United States," as the term is defined in Section 40102(a)(15) of Subtitle VII of Title 49 of the United States Code, as amended, in any similar legislation of the United States enacted in substitution or replacement therefor, and as interpreted by the U.S. Department of Transportation, its predecessors and successors, from time to time ("<u>Applicable Transportation Law</u>"), including any agent, trustee, or representative of such persons or entities ("<u>Non-Citizens</u>") collectively, be entitled to own (beneficially or of record) and/or control more than (x) 24.9% of the aggregate voting power of all outstanding Equity Securities of the Corporation (the "<u>Voting Cap Amount</u>") or (y) 49% of the total number of all outstanding shares of Equity Securities of the Corporation ("<u>the Absolute Cap Amount</u>", and together with the Voting Cap Amount, the "<u>Cap Amounts</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) <u>Enforcement of Cap Amounts</u>. The restrictions imposed by the Cap Amounts shall be applied to each Non-Citizen in reverse chronological order based upon the date of registration (or attempted registration in the case of the Absolute Cap Amount) on the separate stock record maintained by the Corporation or any transfer agent for the registration of Equity Securities held by Non-Citizens (the "<u>Foreign Stock Registry</u>") or the stock transfer records of the Corporation. At no time shall the shares of Equity Securities held by Non-Citizens be voted, unless such shares are registered on the Foreign Stock Registry. In the event that Non-Citizens shall own (beneficially or of record) and/or have voting control over any Equity Securities, the voting rights of such persons shall be subject to automatic suspension to the extent required to ensure that the Corporation is in compliance with applicable provisions of law and regulations relating to ownership and/or control of a United States air carrier, including Applicable Transportation Law. If Non-Citizens at any time collectively own (beneficially or of record) and/or control more than the Voting Cap Amount, the voting rights of the Equity Securities in excess of the Voting Cap Amount shall be automatically suspended in accordance with this Section 10.1(B) and Section 10.2 below. In the event that any transfer of Equity Securities to a Non-Citizen would result in Non-Citizens owning (beneficially or of record) and/or controlling more than the Absolute Cap Amount, such transfer shall be null and void ab initio and of no force and effect and shall not be recorded in the books and records of the Corporation, including the Foreign Stock Registry. Any determination as to ownership, control or citizenship made by the Board shall be conclusive and binding as between the Corporation and any stockholder.

Section 10.2. <u>Foreign Stock Registry</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) The Corporation or any transfer agent shall maintain a separate stock record, designated the "Foreign Stock Registry," for the registration of Equity Securities owned (beneficially or of record) and/or controlled by Non-Citizens. It is the duty of each stockholder who is a Non-Citizen to register his, her or its Equity Securities in the Foreign Stock Registry. The beneficial ownership or control of Equity Securities by Non-Citizens shall be determined in conformity with regulations prescribed from time to time by the Board, and a copy of such regulations shall be maintained by the Secretary of the Corporation and shall be furnished by the Corporation to any stockholder of the Corporation upon request therefor, without cost. Only Equity Securities that have been issued and are outstanding may be registered in the Foreign Stock Registry. The Foreign Stock Registry shall include (i) the name and nationality of each Non-Citizen owning (beneficially or of record) or controlling Equity Securities, (ii) the number of Equity Securities owned (beneficially or of record) or controlled by each such Non-Citizen and (iii) the date of registration of such Equity Securities in the Foreign Stock Registry.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) In no event shall Equity Securities owned (beneficially or of record) and/or controlled by Non-Citizens representing more than the Voting Cap Amount be voted. In the event that Non-Citizens shall

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collectively own (beneficially or of record) and/or have voting control over any Equity Securities, the voting rights of such persons shall be subject to automatic suspension to the extent required to ensure that the Corporation is in compliance with applicable provisions of law and regulations relating to ownership and/or control of a United States air carrier including Applicable Transportation Law. Voting rights of Equity Securities owned (beneficially or of record) and/or controlled by Non-Citizens shall be suspended in reverse chronological order based upon the date of registration (or attempted registration) in the Foreign Stock Registry. Such suspension of the voting rights shall automatically terminate upon the earlier of the (i) transfer of such Equity Securities to a person or entity who is a "citizen of the United States" (as such term is defined in the Applicable Transportation Law, or (ii) registration of such shares of Equity Securities on the Foreign Stock Registry, subject to the second sentence of Section 10.2(C).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) In the event that any transfer or issuance of Equity Securities to a Non-Citizen would result in Non-Citizens owning (beneficially or of record) and/or controlling more than the Absolute Cap Amount, such transfer or issuance shall be null and void ab initio and of no force or effect, and shall not be recorded in the Foreign Stock Registry or the stock records of the Corporation. In the event that the Corporation shall determine that the Equity Securities registered on the Foreign Stock Registry or otherwise registered on the stock records of the Corporation and owned (beneficially or of record) and/or controlled by Non-Citizens, taken together (without duplication), exceed the Absolute Cap Amount, such number of shares shall be removed from the Foreign Stock Registry and the stock records of the Corporation, as applicable, in reverse chronological order based on the date of registration (or attempted registration) in the Foreign Stock Registry and the stock records of the Corporation, as applicable, and any transfer or issuance that resulted in such event shall be deemed null and void ab initio and of no force or effect, such that the Foreign Stock Registry and the stock records of the Corporation, as applicable, reflect the ownership of shares without giving effect to any transfer or issuance that caused the Corporation to exceed the Absolute Cap Amount until the aggregate number of shares registered in the Foreign Stock Registry or otherwise registered to Non-Citizens is equal to the Absolute Cap Amount.

Section 10.3. <u>Registration of Shares</u>. Subject to any limitations or exceptions set forth in this Article X, registration of the ownership of Equity Securities by Non-Citizens shall be effected by written notice to, and in the form specified from time to time by, the Secretary of the Corporation. The order in which such shares shall be registered on the Foreign Stock Registry shall be chronological, based on the date the Corporation received a written notice to so register such shares; provided, that any Non-Citizen who purchases or otherwise acquires shares that are registered on the Foreign Stock Registry shall register such shares in its own name within 30 days of such acquisition, in which event such person or entity will assume the position of the seller of such shares in the chronological order of shares registered on the Foreign Stock Registry.

Section 10.4. <u>Certification of Equity Securities</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) The Corporation may by notice in writing (which may be included in the form of proxy or ballot distributed to stockholders in connection with the annual meeting or any special meeting of the stockholders of the Corporation, or otherwise) require a person or entity that is a holder of record of Equity Securities or that the Corporation knows to have, or has reasonable cause to believe has, beneficial ownership or control of Equity Securities to certify in such manner as the Corporation shall deem appropriate (including by way of execution of any form of proxy or ballot of such person) that, to the knowledge of such person or entity:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) all Equity Securities as to which such person or entity has record ownership or beneficial ownership are owned and controlled only by "citizens of the United States" (as defined above in Section 10.1); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the number of Equity Securities of record or beneficially owned by such person or entity that are owned and/or controlled by Non-Citizens is as set forth in such certificate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) With respect to any Equity Securities identified in response to clause (A)(2) above, the Corporation may require such person or entity to provide such further information as the Corporation may reasonably require in order to implement the provisions of this Article X.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) For purposes of applying the provisions of this Article X with respect to any Equity Securities, in the event of the failure of any person or entity to provide the certificate or other information to which the Corporation is entitled pursuant to this Section 10.4, the Corporation shall be entitled to presume that the Equity Securities in question are owned and/or controlled by Non-Citizens.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) Each certificate or other representative document for Equity Securities (including each such certificate or representative document for Equity Securities issued upon any permitted transfer of Equity Securities, securities convertible into or exchangeable for Equity Securities) shall contain a legend in substantially the following form:

THE [TYPE OF EQUITY SECURITIES] OF MESA AIR GROUP INC. REPRESENTED BY THIS CERTIFICATE OR REPRESENTATIVE DOCUMENT ARE SUBJECT TO OWNERSHIP, CONTROL, AND VOTING RESTRICTIONS WITH RESPECT TO CERTAIN SECURITIES HELD BY PERSONS OR ENTITIES THAT FAIL TO QUALIFY AS "CITIZENS OF THE UNITED STATES" AS THE TERM IS DEFINED IN SECTION 40102(a)(15) OF SUBTITLE VII OF TITLE 49 OF THE UNITED STATES CODE, AS AMENDED, IN ANY SIMILAR LEGISLATION OF THE UNITED STATES ENACTED IN SUBSTITUTION OR REPLACEMENT THEREFORE, AND AS INTERPRETED BY THE UNITED STATES DEPARTMENT OF TRANSPORTATION, ITS PREDECESSORS AND SUCCESSORS, FROM TIME TO TIME. SUCH OWNERSHIP, CONTROL, AND VOTING RESTRICTIONS ARE CONTAINED IN THE CERTIFICATE OF INCORPORATION AND THE BYLAWS OF MESA AIR GROUP INC., AS THE SAME MAY BE AMENDED OR RESTATED FROM TIME TO TIME. A COMPLETE AND CORRECT COPY OF SUCH CERTIFICATE OF INCORPORATION AND BYLAWS SHALL BE FURNISHED FREE OF CHARGE TO THE HOLDER OF THE SECURITIES REPRESENTED HEREBY UPON WRITTEN REQUEST TO THE SECRETARY OF MESA AIR GROUP INC.

#### ARTICLE XI
Section 11.1. <u>Severability</u>. If any provision or provisions of this Certificate of Incorporation shall be held to be invalid, illegal or unenforceable as applied to any circumstance for any reason whatsoever, (i) the validity, legality and enforceability of such provisions in any other circumstance and of the remaining provisions of this Certificate of Incorporation (including, without limitation, each portion of any paragraph of this Certificate of Incorporation containing any such provision held to be invalid, illegal or unenforceable that is not itself held to be invalid, illegal or unenforceable) shall not, to the fullest extent permitted by applicable law, in any way be affected or impaired thereby and (ii) to the fullest extent permitted by applicable law, the provisions of this Certificate of Incorporation (including, without limitation, each such portion of any paragraph of this Certificate of Incorporation containing any such provision held to be invalid, illegal or unenforceable) shall be construed so as to permit the Corporation to protect its directors, officers, employees and agents from personal liability in respect of their good faith service or for the benefit of the Corporation to the fullest extent permitted by law.

#### ARTICLE XII
Section 12.1. <u>Derivative Actions</u>. The Corporation shall at all times have, and there is hereby established, a Litigation Demand Committee (as defined below) of the Board, which shall have the sole and exclusive power and authority of the Board, to the fullest extent permitted by law, to consider the merits of, investigate, review, consider and evaluate, and take and cause to be implemented all actions and make all such decisions and determinations with respect to, any litigation demands on the Board made by a stockholder in accordance with Delaware law to investigate or take any action with respect to any allegation or claim of any breach of fiduciary duty owed by any current or former director, officer, stockholder or other fiduciary of the Corporation or any affiliate thereof, as well as any other allegation or claim that may give rise to a derivative

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claim that may be brought by or on behalf of the Corporation or any affiliate thereof, and to make decisions and take actions with respect to any such demands, including, without limitation, with respect to whether to initiate or decline to initiate any action, suit or proceeding, or to pursue, continue, move to dismiss, settle, compromise, resolve or take other action with respect to, any such demand or threatened or pending derivative action. For purposes of this Article XII, "Litigation Demand Committee" means a committee of the Board composed entirely solely of one or more disinterested directors in office at any time and from time to time who are determined by the Board to meet the independence standards (but need not meet the financial literacy or financial expert qualifications) required to serve on an audit committee of a board of directors established by the Exchange Act and the rules and regulations of the U.S. Securities and Exchange Commission thereunder and by the national securities exchange on which the Common Stock is listed for trading. The Litigation Demand Committee may (and, if the Litigation Demand Committee deems warranted by the facts and circumstances in respect of any demand or threatened or pending derivative action for which a demand has been made to, or that is otherwise before, the Litigation Demand Committee, the Litigation Demand Committee shall) establish a subcommittee of the Litigation Demand Committee, which subcommittee shall have any or all of the powers and authority of the Litigation Demand Committee.

Section 12.2. <u>Forum</u>. Unless the Corporation consents in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware (or if such court does not have subject matter jurisdiction, another state or federal court (as appropriate) located within the State of Delaware) shall, to the fullest extent permitted by law, be the sole and exclusive forum for (i) any derivative action or proceeding brought on behalf of the Corporation, (ii) any action asserting a claim of breach of a fiduciary duty owed by any current or former director, officer, or stockholder of the Corporation to the Corporation or the Corporation's stockholders, creditors or other constituents (iii) any action asserting a claim arising pursuant to any provision of the DGCL or this Certificate of Incorporation or the Bylaws (as either may be amended and/or restated from time to time) or as to which the DGCL confers jurisdiction on the Court of Chancery of the State of Delaware, (iv) any action to interpret, apply, enforce or determine the validity of this Certificate of Incorporation or the Bylaws (as either may be amended and/or restated from time to time), (v) any action asserting a claim governed by the internal affairs doctrine of the law of the State of Delaware, or (vi) any action asserting an "internal corporate claim" as defined in Section 115 of the DGCL, in each case, subject to said court having personal jurisdiction over the indispensable parties named as defendants therein. Unless the Corporation consents in writing to the selection of an alternative forum, the federal district courts of the United States of America shall, to the fullest extent permitted by applicable law, be the exclusive forum for the resolution of any complaint asserting a cause of action arising under the federal securities laws of the United States of America, including, in each case, the applicable rules and regulations promulgated thereunder. To the fullest extent permitted by law, any person or entity purchasing or otherwise acquiring or holding any interest in shares of capital stock of the Corporation shall be deemed to have notice of and consented to the provisions of this Article XII.

#### ARTICLE XIII
Section 13.1 The name and mailing address of the sole incorporator of the Corporation is [●]. 

\* \* \*

[This Certificate of Incorporation shall become effective at [●] a.m./p.m. (Eastern Time) on [●].

[Signature Page Follows]

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IN WITNESS WHEREOF, being the incorporator hereinabove named, makes and files this Certificate of Incorporation and does hereby declare and certify that said instrument is [his/her] act and deed and that the facts stated herein are true, and accordingly has executed this Certificate of Incorporation this [●] day of [●], 2025.

 Name: [●]

 Title: Sole Incorporator

[*Signature page–Certificate of Incorporation*]

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#### Exhibit 2
<u>Form of Post-Conversion Parent Bylaws</u> 

*See attached* 

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#### BYLAWS

#### OF

#### MESA AIR GROUP INC.

#### ARTICLE I.

#### OFFICES
Section 1. The registered office and registered agent of Mesa Air Group, Inc. (the "<u>Corporation</u>") in the State of Delaware shall be as set forth in the Certificate of Incorporation (as defined below). The Corporation may also have offices in such other places in the United States or elsewhere as the Board of Directors of the Corporation (the "<u>Board</u>") may, from time to time, determine or as the business of the Corporation may require as determined by an officer of the Corporation.

#### ARTICLE II.

#### STOCKHOLDERS
Section 1. The annual meeting of the stockholders of the Corporation for the purpose of electing directors and for the transaction of such other business as may properly be brought before the meeting may be held on such date, and at such time and place, if any, within or without the State of Delaware as may be designated from time to time by the Board. The Board may, in its sole discretion, determine that annual meetings of the stockholders shall not be held at any place, but may instead be held solely by means of remote communication as described in Article II, Section 13 of these Bylaws (as the same may be amended and/or restated from time to time, the "<u>Bylaws</u>") in accordance with Section 211(a)(2) of the General Corporation Law of the State of Delaware (the "<u>DGCL</u>"). To the fullest extent permitted by law, the Board may postpone, reschedule or cancel any annual meeting of stockholders previously scheduled.

Section 2. (A) Except as otherwise required by the DGCL or the certificate of incorporation of the Corporation (as the same may be amended and/or restated from time to time, the "<u>Certificate of Incorporation</u>"), and subject to the rights of the holders of one or more series of Preferred Stock (as defined in the Certificate of Incorporation), special meetings of the stockholders of the Corporation may be called only by or at the direction of the Board, the Chair of the Board (the "<u>Chair</u>") or the Chief Executive Officer of the Corporation (the "<u>Chief</u> <u>Executive Officer</u>") or, subject to the restrictions and limitations and compliance with the procedures set forth in this Section 2, by the Secretary upon the request of holders of stock of the Corporation entitling the holders thereof to not less than 10% of the total voting power of all the then outstanding shares of stock of the Corporation entitled to vote generally in the election of directors (a "<u>Stockholder Requested Special Meeting</u>"). The Board may, in its sole discretion, determine that special meetings of the stockholders shall not be held at any place, but may instead be held solely by means of remote communication as described in Article II, Section 13 of these Bylaws in accordance with Section 211(a)(2) of the DGCL. To the fullest extent permitted by law, the Board may postpone, reschedule or cancel any special meeting of stockholders previously scheduled by the Board, the Chair, or the Chief Executive Officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) A special meeting of stockholders may be held at such date, time and place, if any, within or without the State of Delaware as may be designated by the Board; *provided, however*, that the date of any Stockholder Requested Special Meeting shall be not more than 120 days after the date that the Secretary has received one or more valid requests from stockholders for the calling of a special meeting ("<u>Stockholder Meeting Requests</u>"), which requests satisfy the requirements set forth in these Bylaws for the calling of a Stockholder Requested Special Meeting. For the avoidance of doubt, if any documentary evidence required by these Bylaws is not simultaneously delivered with one or more Stockholder Meeting Request(s) under the circumstances expressly permitted by these Bylaws, then the date of the Stockholder Requested Special Meeting shall not be more than

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120 days after the date that all such documentary evidence is received by the Secretary in compliance with these Bylaws. In fixing a date, time and place, if any, for any special meeting of stockholders, the Board may consider such factors as it deems relevant, including without limitation, the nature of the matters to be considered, the facts and circumstances related to any request for a meeting and any plan of the Board to call an annual meeting or special meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) In order for a Stockholder Requested Special Meeting to be called, one or more Special Meeting Requests must be signed and dated by the record holders of shares representing in the aggregate at least 10% of the total voting power of all the then outstanding shares of stock of the Corporation entitled to vote generally in the election of directors (the "Requisite Percentage"), which Requisite Percentage must be owned by the stockholder(s) making the request on the date of such request and continuously through the date of the special meeting. Each Special Meeting Request shall be delivered to the Secretary at the Corporation's principal executive offices and shall be accompanied by a written notice setting forth the information required by clauses (b) and (c) of Section 12(A)(2) of this Article II. In addition to the foregoing, a Special Meeting Request must include: (x) documentary evidence of the number and class or series of shares of capital stock of the Corporation owned by each stockholder submitting a Special Meeting Request as of the date on which the Special Meeting Request is delivered to the Secretary, *provided* that, if the stockholder submitting the Special Meeting Request (each, a "<u>Requesting Stockholder</u>") is not the beneficial owner of such shares, then to be valid, the Special Meeting Request must also include documentary evidence (or, if not simultaneously provided with the Special Meeting Request, such documentary evidence must be delivered to the Secretary within 10 days after the date on which the Special Meeting Request is delivered to the Secretary) of the number and class or series of shares owned by the beneficial owner(s) as of the date on which the Special Meeting Request is delivered to the Secretary; (y) a representation that the Requesting Stockholder or Requesting Stockholders intend to continue to satisfy the Requisite Percentage through the date of the Stockholder Requested Special Meeting and an agreement by the Requesting Stockholder(s) to promptly notify the Corporation upon any decrease occurring between the date on which the Special Meeting Request is delivered to the Secretary and the date of the Stockholder Requested Special Meeting in the number of shares owned by such stockholder; and (z) an acknowledgment of the Requesting Stockholder(s) that any decrease after the date on which the Special Meeting Request is delivered to the Secretary in the number of shares held by such stockholder shall be deemed a revocation of the Special Meeting Request with respect to such shares and that such shares will no longer be included in determining whether the Requisite Percentage has been satisfied.

Each Requesting Stockholder is required to update and supplement the Special Meeting Request delivered pursuant to this Section 2, if necessary, so that the information provided or required to be provided in such notice, including the information specified in clauses (b) and (c) of Section 12(A)(2) of this Article II shall be true and correct as of the record date for determining the stockholders entitled to receive notice of the Stockholder Requested Special Meeting, and such update and supplement shall be received by the Secretary at the principal executive offices of the Corporation not later than five business days after the record date for determining the stockholders entitled to receive notice of such meeting. In addition to the foregoing, the Requesting Stockholder(s) shall promptly provide any other information reasonably requested by the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) In determining whether a special meeting of stockholders has been requested by Requesting Stockholder(s) holding shares representing in the aggregate at least the Requisite Percentage, multiple Special Meeting Requests delivered to the Secretary will be considered together only if (i) each Special Meeting Request identifies substantially the same purpose or purposes of the special meeting and substantially the same matters proposed to be acted on at the special meeting, in each case as determined by the Board (which, if such purpose is the removal of directors and/or the filling of vacancies and/or newly created directorships resulting from any increase in the authorized number of directors, will mean that the exact same person or persons are proposed for election or removal in each relevant Stockholder Meeting Request), and (ii) such Special Meeting Requests have been dated and delivered to the Secretary within sixty (60) days of the earliest dated Special Meeting Request. A stockholder may revoke a Special Meeting Request at any time by written revocation delivered to the Secretary.

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If, following such revocation (or any deemed revocation hereunder), at any time before the time of the Stockholder Requested Special Meeting, there are unrevoked requests from stockholders representing in the aggregate less than the Requisite Percentage, the Board, in its discretion, may cancel the special meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) At any Stockholder Requested Special Meeting, the business transacted shall be limited to the purpose(s) stated in the Special Meeting Request; *provided, however*, that the Board shall have the authority in its discretion to submit additional matters to the stockholders and to cause other business to be transacted. Notwithstanding the foregoing provisions of this Section 2, a Special Meeting Request shall not be valid and a Stockholder Requested Special Meeting shall not be called or held if: (i) the Special Meeting Request does not comply with these Bylaws; (ii) the business specified in the Special Meeting Request is not a proper subject for stockholder action under applicable law; (iii) the Board has called or calls for an annual or special meeting of stockholders to be held within one hundred twenty (120) days after the Secretary receives the Special Meeting Request and the Board determines that the business of such meeting includes (among any other matters properly brought before the annual or special meeting) the business specified in the Special Meeting Request; (iv) the Special Meeting Request is received by the Secretary during the period commencing ninety (90) days prior to the anniversary date of the prior year's annual meeting of stockholders and ending on the date of the final adjournment of the next annual meeting of stockholders; (v) an identical or substantially similar item (a "Similar Item") was presented at any meeting of stockholders held within ninety (90) days prior to receipt by the Secretary of the Special Meeting Request (and, for purposes of this clause (v), the removal of directors and any nomination of directors for election, whether to fill vacancies, newly created directorships or otherwise, shall be deemed a "Similar Item" with respect to all items of business involving the removal of directors, the changing of the size of the Board and the election of directors, whether to fill vacancies and/or newly created directorships or otherwise); (vi) a Similar Item, other than the nomination, election or removal of directors, was presented at an annual or special meeting of stockholders held not more than twelve (12) months prior to receipt by the Secretary of the Special Meeting Request; or (vii) the Special Meeting Request was made in a manner that involved a violation of Regulation 14A under the Exchange Act (as defined below), or other applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) Except to the extent previously determined by the Board in connection with a Stockholder Requested Special Meeting or any related Special Meeting Request, the chairperson of the Stockholder Requested Special Meeting shall determine at such meeting whether any proposed business or other matter to be transacted by the stockholders has not been properly brought before the special meeting and, if he or she should so determine, the chairperson shall declare that such proposed business or other matter was not properly brought before the meeting and such business or other matter shall not be presented for stockholder action at the meeting. In addition, notwithstanding the foregoing provisions of this Section 2, unless otherwise required by law, if the Requesting Stockholder(s) (or a qualified representative of the stockholder (as defined below)) does not appear at the special meeting to present a nomination or other proposed business, such nomination shall be disregarded and such proposed business shall not be transacted, notwithstanding that proxies in respect of such vote may have been received by the Corporation.

Section 3. Except as otherwise provided by the DGCL, the Certificate of Incorporation or these Bylaws, notice of the date, time, place (if any), the means of remote communications, if any, by which stockholders and proxy holders may be deemed to be present in person and vote at such meeting, the record date for determining the stockholders entitled to vote at the meeting (if such date is different from the record date for stockholders entitled to notice of the meeting) and, in the case of a special meeting, the purpose or purposes of the meeting of stockholders shall be given not more than sixty (60), nor less than ten (10), days before the date of the meeting, to each stockholder entitled to vote at the meeting as of the record date for determining stockholders entitled to notice of the meeting at such address as appears on the records of the Corporation.

Section 4. The holders of a majority in voting power of the issued and outstanding shares of stock of the Corporation entitled to vote thereat, present in person or represented by proxy, shall constitute a quorum at all meetings of the stockholders for the transaction of business, except as otherwise provided herein, by statute or by the Certificate of Incorporation. Any meeting of stockholders may be adjourned from time to time by the chair of

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the meeting or, by the holders of a majority in voting power of the stockholders present at such meeting, in person or represented by proxy, if there shall be less than a quorum present or for any other reason (including to address technical failures to convene or continue a meeting using remote communication) and to reconvene at the same time or some other time, date and place, if any. Notwithstanding the foregoing, except as otherwise provided by the Certificate of Incorporation, where a separate vote by a class or series or classes or series is required, a majority in voting power of the outstanding shares of such class or series or classes or series, present in person or represented by proxy, shall constitute a quorum entitled to take action with respect to that vote on that matter. At any adjourned meeting at which a quorum shall be present or represented, any business may be transacted which might have been transacted at the original meeting. Notice need not be given of any adjourned meeting if the time and place thereof are announced at the meeting at which the adjournment is taken, displayed, during the time scheduled for the meeting, on the same electronic network used to enable stockholders and proxyholders are to participate in the meeting by means of remote communication or set forth in the notice of the meeting and, in any such case, the adjournment is for less than thirty (30) days; *provided*, that if the adjournment is for more than thirty (30) days, a notice of the adjourned meeting shall be given to each stockholder of record entitled to vote at the meeting; *provided, further,* that if after the adjournment a new record date for stockholders entitled to vote is fixed for the adjourned meeting, the Board shall fix a new record date for notice of such adjourned meeting, and shall give notice of the adjourned meeting to each stockholder of record entitled to vote at such adjourned meeting as of the record date for notice of such adjourned meeting.

Section 5. The Chair, or in the Chair's absence or at the Chair's direction, the Chief Executive Officer, or in the Chief Executive Officer's absence or at the Chief Executive Officer's direction, any officer of the Corporation or other person designated by the Board shall call all meetings of the stockholders to order and shall act as chair of any such meetings. The Secretary of the Corporation or, in such officer's absence, an Assistant Secretary shall act as secretary of the meeting. If neither the Secretary nor an Assistant Secretary is present, the chair of the meeting shall appoint a secretary of the meeting. The Board may adopt such rules and regulations for the conduct of the meeting of stockholders as it shall deem appropriate. Unless otherwise determined by the Board prior to the meeting, the chair of the meeting shall determine the order of business and shall have the authority in their discretion to regulate the conduct of any such meeting, including, without limitation, convening the meeting and, for any or no reason, recessing or adjourning the meeting (whether or not a quorum is present), announcing the date and time of the opening and the closing of the polls for each matter upon which the stockholders will vote, imposing restrictions on the persons (other than stockholders of record of the Corporation or their duly appointed proxies) who may attend any such meeting, establishing procedures for the transaction of business at the meeting, maintaining order at the meeting and safety of those present, limiting the time allotted to questions or comments by participants, restricting entry to the meeting after the time fixed for commencement thereof and limiting the circumstances in which any person may make a statement or ask questions at any meeting of stockholders. The chair of the meeting of stockholders, in addition to making any other determinations that may be appropriate to the conduct of the meeting, shall, if the facts warrant, determine and declare to the meeting that a matter or business was not properly brought before the meeting and if the chair should so determine, the chair shall so declare to the meeting and any such matter or business not properly brought before the meeting shall not be transacted or considered.

Section 6. At all meetings of stockholders, any stockholder entitled to vote thereat shall be entitled to vote in person or by proxy, but no proxy shall be voted after three years from its date, unless such proxy provides for a longer period. Without limiting the manner in which a stockholder may authorize another person or persons to act for the stockholder as proxy pursuant to the DGCL, the following shall constitute a valid means by which a stockholder may grant such authority: (1) a stockholder, or such stockholder's authorized officer, director, employee or agent, may execute a document authorizing another person or persons to act for such stockholder as proxy; or (2) a stockholder may authorize another person or persons to act for the stockholder as proxy by transmitting or authorizing by means of electronic transmission to the person who will be the holder of the proxy or to a proxy solicitation firm, proxy support service organization or like agent duly authorized by the person who will be the holder of the proxy to receive such transmission, provided that any such means of electronic transmission must either set forth or be submitted with information from which it can be determined that the

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electronic transmission was authorized by the stockholder. If it is determined that such electronic transmissions are valid, the inspectors or, if there are no such inspectors, such other persons making that determination shall specify the information upon which they relied. The authorization of a person to act as proxy may be documented, signed and delivered in accordance with Section 116 of the DGCL, provided that such authorization shall set forth or be delivered with information enabling the corporation to determine the identity of the stockholder granting such authorization.

A proxy shall be irrevocable if it states that it is irrevocable and if, and only as long as, it is coupled with an interest sufficient in law to support an irrevocable power. A stockholder may revoke any proxy which is not irrevocable by attending the meeting and voting in person or by delivering to the Secretary of the Corporation a revocation of the proxy or a new proxy bearing a later date.

Any copy, facsimile telecommunication or other reliable reproduction of the document (including any election transmission) created pursuant to the preceding paragraph of this Section 6 may be substituted or used in lieu of the original document for any and all purposes for which the original document could be used, provided that such copy, facsimile telecommunication or other reproduction shall be a complete reproduction of the entire original document.

Proxies shall be filed with the secretary of the meeting prior to or at the commencement of the meeting to which they relate.

Section 7. When a quorum is present at any meeting, the vote of the holders of a majority of the votes cast shall decide any question brought before such meeting, unless the question is one upon which by express provision of the Certificate of Incorporation, these Bylaws or the DGCL a different or minimum vote is required, in which case such express provision shall govern and control the decision of such question. Notwithstanding the foregoing, where a separate vote by a class or series or classes or series is required and a quorum is present, the affirmative vote of a majority of the votes cast by shares of such class or series or classes or series shall be the act of such class or series or classes or series, unless the question is one upon which by express provision of the Certificate of Incorporation, these Bylaws or the DGCL a different or minimum vote is required, in which case such express provision shall govern and control the decision of such question.

Section 8. (A) In order that the Corporation may determine the stockholders entitled to notice of any meeting of stockholders or any adjournment thereof, the Board may fix a record date, which record date shall not precede the date upon which the resolution fixing the record date is adopted by the Board, and which record date shall, unless otherwise required by law, not be more than sixty (60) nor less than ten (10) days before the date of such meeting. If the Board so fixes a date, such date shall also be the record date for determining the stockholders entitled to vote at such meeting unless the Board determines, at the time it fixes such record date, that a later date on or before the date of the meeting shall be the date for making such determination. If no record date is fixed by the Board, the record date for determining stockholders entitled to notice of or to vote at a meeting of stockholders shall be at the close of business on the day next preceding the day on which notice is given, or, if notice is waived, at the close of business on the day next preceding the day on which the meeting is held. A determination of stockholders of record entitled to notice of or to vote at a meeting of stockholders shall apply to any adjournment of the meeting; *provided, however*, that the Board may fix a new record date for determination of stockholders entitled to vote at the adjourned meeting, and in such case shall also fix as the record date for stockholders entitled to notice of such adjourned meeting the same or an earlier date as that fixed for determination of stockholders entitled to vote in accordance herewith at the adjourned meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) In order that the Corporation may determine the stockholders entitled to receive payment of any dividend or other distribution or allotment of any rights, or entitled to exercise any rights in respect of any change, conversion or exchange of stock or for the purpose of any other lawful action, the Board may fix a record date, which record date shall not precede the date on which the resolution fixing the record date is adopted and which record date shall not be more than sixty (60) days prior to such other action. If no such record date is fixed,

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the record date for determining stockholders for any such purpose shall be at the close of business on the day on which the Board adopts the resolution relating thereto.

Section 9. (A) To the extent that the Certificate of Incorporation does not prohibit action by one or more classes or series of stockholders of the Corporation to be taken by consent in lieu of meeting, the provisions of this section shall apply. All consents properly delivered in accordance with the Certificate of Incorporation and the DGCL shall be deemed to be recorded when so delivered. No consent shall be effective to take the corporate action referred to therein unless, within sixty (60) days of the first date on which a consent is delivered to the Corporation as required by the DGCL, consents signed by the holders of a sufficient number of shares to take such corporate action are so delivered to the Corporation in accordance with the applicable provisions of the DGCL. Prompt notice of the taking of the corporate action by consent without a meeting by less than unanimous consent shall be given to those stockholders as of the record date for the action by consent who have not consented and who would have been entitled to notice of the meeting if the action had been taken at a meeting and the record date for the notice of the meeting were the record date for the action by consent. Any action taken pursuant to such consent or consents of the stockholders shall have the same force and effect as if taken by the stockholders at a meeting thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) In order that the Corporation may determine the stockholders entitled to consent to corporate action in writing without a meeting, the Board may fix a record date, which record date shall not precede the date upon which the resolution fixing the record date is adopted by the Board, and which date shall not be more than ten (10) days after the date upon which the resolution fixing the record date is adopted by the Board. Any stockholder of record seeking to have the stockholders authorize or take corporate action by consent shall, by written notice to the Secretary, request that the Board fix a record date. The Board shall promptly, but in all events within ten (10) days after the date on which such written notice is received, adopt a resolution fixing the record date (unless a record date has previously been fixed by the Board pursuant to the first sentence of this Section 9(B)). If no record date has been fixed by the Board pursuant to the first sentence of this Section 9(B) or otherwise within ten (10) days after the date on which such written notice is received, the record date for determining stockholders entitled to consent to corporate action without a meeting, when no prior action by the Board is required by applicable law, shall be the first date on which a signed written consent setting forth the action taken or proposed to be taken is delivered to the Corporation in accordance with the DGCL. If no record date has been fixed by the Board pursuant to the first sentence of this Section 9(B), the record date for determining stockholders entitled to consent to corporate action in writing without a meeting if prior action by the Board is required by applicable law shall be at the close of business on the date on which the Board adopts the resolution taking such prior action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) In the event of the delivery, in the manner provided by this Section 9 and the DGCL, to the Corporation of consent or consents to take corporate action and/or any related revocation or revocations, the Corporation shall engage independent inspectors of elections for the purpose of performing promptly a ministerial review of the validity of the consents and revocations. For the purpose of permitting the inspectors to perform such review, no action by consent and without a meeting shall be effective until such inspectors have completed their review, determined that the requisite number of valid and unrevoked consents delivered to the Corporation in accordance with this Section 9 and applicable law have been obtained to authorize or take the action specified in the consents, and certified such determination for entry in the records of the Corporation kept for the purpose of recording the proceedings of meetings of stockholders. Nothing contained in this Section 9(C) shall in any way be construed to suggest or imply that the Board or any stockholder shall not be entitled to contest the validity of any consent or revocation thereof, whether before or after such certification by the independent inspectors, or to take any other action (including, without limitation, the commencement, prosecution or defense of any litigation with respect thereto, and the seeking of injunctive relief in such litigation).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) No consent shall be effective to take the corporate action referred to therein unless, within sixty (60) days after the first date on which a consent is delivered in accordance with this Section 9, a valid consent or valid consents signed by a sufficient number of stockholders to take such action are delivered to the Corporation in the manner prescribed in this Section 9 and the DGCL, and not theretofore revoked.

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Section 10. The Corporation shall prepare, no later than the tenth (10<sup>th</sup>) day before each meeting of stockholders, a complete list of the stockholders entitled to vote at the meeting (*provided, however*, if the record date for determining the stockholders entitled to vote is less than ten days before the date of the meeting, the list shall reflect the stockholders entitled to vote as of the tenth day before the meeting date), arranged in alphabetical order, and showing the address of each stockholder and the number of shares registered in the name of each stockholder. Such list shall be open to the examination of any stockholder for any purpose germane to the meeting for a period of ten (10) days ending on the day before the meeting date: (i) on a reasonably accessible electronic network, provided that the information required to gain access to such list is provided with the notice of the meeting, or (ii) during ordinary business hours, at the principal place of business of the Corporation. In the event that the Corporation determines to make the list available on an electronic network, the Corporation may take reasonable steps to ensure that such information is available only to stockholders of the Corporation.

Section 11. The Board, in advance of all meetings of the stockholders, may (and, if required by law, shall) appoint one or more inspectors to act at the meeting and make a written report thereof, who may be employees or agents of the Corporation or stockholders or their proxies, but who shall not be directors of the Corporation or candidates for election as directors. In the event that the Board fails to so appoint one or more inspectors or, in the event that one or more inspectors previously designated by the Board fails to appear or act at the meeting of stockholders, the chair of the meeting may appoint one or more inspectors to act at the meeting of stockholders. Inspectors appointed to act at any meeting of the stockholders, before entering upon the discharge of their duties, shall take and sign an oath to faithfully execute the duties of inspector with strict impartiality and according to the best of their ability and the oath so taken shall be subscribed by them. Inspectors shall take all actions required under the applicable provisions of the DGCL and any other applicable law, rule or regulation.

Section 12. (A) Annual Meetings of Stockholders. (1) Nominations of persons for election to the Board and the proposal of other business to be considered by the stockholders may be made at an annual meeting of stockholders only (a) pursuant to the Corporation's notice of meeting (or any supplement thereto) delivered pursuant to Article I, Section 3 of these Bylaws, (b) by or at the direction of the Board or any authorized committee thereof or (c) by any stockholder of the Corporation who is entitled to vote on such election or such other business at the meeting, who complied with the notice procedures set forth in subparagraphs (2) and (3) of this paragraph (A) of this Bylaw and who was a stockholder of record at the time such notice is delivered to the Secretary of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) For nominations or other business to be properly brought before an annual meeting by a stockholder, the stockholder must have given timely notice thereof in writing to the Secretary of the Corporation, and, in the case of business other than nominations of persons for election to the Board, such other business must constitute a proper matter for stockholder action. To be timely, a stockholder's notice shall be delivered to the Secretary of the Corporation at the principal executive offices of the Corporation not less than ninety (90) days nor more than one hundred and twenty (120) days prior to the first anniversary of the date of the preceding year's annual meeting; provided, however, that in the event that the date of the annual meeting is advanced by more than thirty (30) days, or delayed by more than seventy (70) days, from the anniversary date of the previous year's meeting, or if no annual meeting required to be held was held in the preceding year, notice by the stockholder to be timely must be so delivered not earlier than the close of business on the one hundred and twentieth (120<sup>th</sup>) day prior to such annual meeting and not later than the close of business on the later of the ninetieth (90<sup>th</sup>) day prior to such annual meeting or the tenth (10<sup>th</sup>) day following the day on which public announcement of the date of such meeting is first made by the Corporation. For purposes of the application of Rule 14a-4(c) of the Securities Exchange Act of 1934, as amended (the "<u>Exchange Act</u>") (or any successor provision), the date for notice specified in this paragraph (A)(2) shall be the earlier of the date calculated as hereinbefore provided or the date specified in paragraph (c)(1) of Rule 14a-4. For purposes of the first annual meeting following the adoption of these Bylaws, the date of the first anniversary of the preceding year's annual meeting shall be deemed to be [●], 2025.

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Such stockholder's notice delivered pursuant to this Section 12 shall set forth: (a) as to each person whom the stockholder proposes to nominate for election or re-election as a director, (i) the name, age, business and residence address, and principal occupation or employment of the nominee, (ii) all information relating to such person that is required to be disclosed in solicitations of proxies for election of directors in an election contest, or is otherwise required, in each case pursuant to Section 14(a) of the Exchange Act and the rules and regulations promulgated thereunder, (iii) such person's written consent to being named in the proxy statement and accompanying proxy card and to serving as a director if elected, (iiv) a questionnaire completed and signed by such person (in the form to be provided by the Secretary upon written request of any stockholder of record within ten (10) days of such request) with respect to the background and qualification of such proposed nominee and (v) a written representation and agreement (in the form to be provided by the Secretary upon written request of any stockholder of record within ten (10) days of such request) that such proposed nominee (A) is not and will not become a party to any agreement, arrangement or understanding with, and has not given any commitment or assurance to, any person or entity as to how such proposed nominee, if elected as a director of the Corporation, will act or vote on any issue or question that has not been disclosed to the Corporation or that could limit or interfere with such proposed nominee's fiduciary duties under applicable law, (B) is not and will not become a party to any agreement, arrangement or understanding with any person or entity other than the Corporation with respect to any direct or indirect compensation, reimbursement or indemnification in connection with service or action as a director of the Corporation that has not been disclosed to the Corporation, and (C) would be in compliance, if elected as a director of the Corporation, and will comply with, all applicable publicly disclosed corporate governance, code of conduct and ethics, conflict of interest, confidentiality, corporate opportunities, trading and any other policies and guidelines of the Corporation applicable to directors; (b) as to any other business that the stockholder proposes to bring before the meeting, a brief description of the business desired to be brought before the meeting, the text of the proposal or business (including the text of any resolutions proposed for consideration and, in the event that such business includes a proposal to amend these Bylaws, the language of the proposed amendment), the reasons for conducting such business at the meeting and any material interest in such business of such stockholder and the beneficial owner, if any, on whose behalf the proposal is made; (c) as to the stockholder giving the notice and the beneficial owner, if any, on whose behalf the nomination or proposal is made (i) the name and address of such stockholder, as they appear on the Corporation's books and records, and of such beneficial owner, (ii) the class or series and number of shares of capital stock of the Corporation that are owned, directly or indirectly, beneficially and of record by such stockholder and such beneficial owner, including any shares of any class or series of capital stock of the Corporation as to which such stockholder and such beneficial owner or any of its affiliates or associates has a right to acquire beneficial ownership at any time in the future, (iii) a representation that the stockholder is a holder of record of the stock of the Corporation at the time of the giving of the notice, will be entitled to vote at such meeting and will appear in person (which, for the avoidance of doubt, includes appearance by means of remote communication at any virtual meeting) or by proxy at the meeting to propose such business or nomination, (iv) a representation whether the stockholder or the beneficial owner, if any, will be or is part of a group that will (A) deliver a proxy statement and/or form of proxy to holders of at least the percentage of the voting power of the Corporation's outstanding capital stock required to approve or adopt the proposal or elect the nominee, (B) otherwise solicit proxies or votes from stockholders in support of such proposal or nomination, and/or (C) solicit proxies or votes in support of any proposed nominee in accordance with Rule 14a-19 promulgated under the Exchange Act, (v) a certification regarding whether such stockholder and beneficial owner, if any, have complied with all applicable federal, state and other legal requirements in connection with (A) the stockholder's and/or beneficial owner's acquisition of shares of capital stock or other securities of the Corporation and/or (B) the stockholder's and/or (C) the beneficial owner's acts or omissions as a stockholder of the Corporation and (vi) any other information relating to such stockholder and beneficial owner, if any, required to be disclosed in a proxy statement or other filings required to be made in connection with solicitations of proxies for, as applicable, the proposal and/or for the election of directors in an election contest pursuant to and in accordance with Section 14(a) of the Exchange Act and the rules and regulations promulgated thereunder; (d) a description of any agreement, arrangement or understanding with respect to the nomination or proposal and/or the voting of shares of any class or series of stock of the Corporation between or among the stockholder giving the notice, the beneficial owner, if any, on whose behalf the nomination or proposal is made, any of their respective affiliates or associates and/or any others acting in concert

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with any person (collectively, "<u>proponent persons</u>"), including, in the case of a nomination, the nominee, including any agreements, arrangements or understandings relating to any compensation or payments to be paid to any such proposed nominee(s), pertaining to the nomination(s) or other business proposed to be brought before the meeting of stockholders (which description shall identify the name of each other person who is party to such an agreement, arrangement or understanding); and (e) a description of any agreement, arrangement or understanding (including without limitation any contract to purchase or sell, acquisition or grant of any option, right or warrant to purchase or sell, swap or other instrument) to which any proponent person is a party, the intent or effect of which may be (i) to transfer to or from any proponent person, in whole or in part, any of the economic consequences of ownership of any security of the Corporation, (ii) to increase or decrease the voting power of any proponent person with respect to shares of any class or series of stock of the Corporation and/or (iii) to provide any proponent person, directly or indirectly, with the opportunity to profit or share in any profit derived from, or to otherwise benefit economically from, any increase or decrease in the value of any security of the Corporation; (f) a description of any proxy (other than a revocable proxy given in response to a public proxy solicitation made pursuant to, and in accordance with, the Exchange Act), agreement, arrangement, or understanding pursuant to which such stockholder or beneficial owner has or shares a right, directly or indirectly, to vote any shares of any class or series of capital stock of the Corporation; (g) a description of any agreement, arrangement or understanding with respect to any rights to dividends or other distributions on the shares of any class or series of capital stock of the Corporation, directly or indirectly, owned beneficially by such stockholder or beneficial owner that are separated or separable pursuant to such agreement, arraignment or understanding from the underlying shares of the Corporation; (h) a description of any performance-related fees (other than an asset-based fee) that such stockholder or beneficial owner, directly or indirectly, is entitled to receive based on any increase or decrease in the value of shares of any class or series of capital stock of the Corporation or any interests described in clause (c)(iv) of this Section 12(A)(2); and (i) the names and addresses of other stockholders and beneficial owners actually known (without any obligation of inquiry) by any stockholder giving the notice (and/or beneficial owner, if any, on whose behalf the nomination or proposal is made) to financially support such nomination or proposal, and to the extent known, the class and number of all shares of the Corporation's capital stock owned beneficially and/or of record by such other stockholder(s) and beneficial owner(s). A stockholder providing notice of a proposed nomination for election to the Board or other business proposed to be brought before a meeting (whether given pursuant to this paragraph (A)(2) or paragraph (B) of this Bylaw) shall update and supplement such notice from time to time to the extent necessary so that the information provided or required to be provided in such notice shall be true and correct as of the record date for determining the stockholders entitled to notice of the meeting and as of the date that is fifteen (15) days prior to the meeting or any adjournment or postponement thereof. For the avoidance of doubt, the obligation to update and supplement as set forth in this Section 12(A)(2) or any other section of these Bylaws shall not limit the Corporation's rights with respect to any deficiencies in any stockholder's notice, including, without limitation, any representation required herein, extend any applicable deadlines under these Bylaws or enable or be deemed to permit a stockholder who has previously submitted a stockholder's notice under these Bylaws to amend or update any proposal or to submit any new proposal, including by changing or adding nominees, matters, business and/or resolutions proposed to be brought before a meeting of stockholders. Any such update and supplement shall be delivered in writing to the Secretary at the principal executive offices of the Corporation (i) in the case of any update and supplement required to be made as of the record date for notice of the meeting, not later than five (5) days after the later of such record date and the public announcement of such record date and (ii) in the case of any update or supplement required to be made as of fifteen (15) days prior to the meeting or adjournment or postponement thereof, not later than ten (10) days prior to the date of the meeting or any adjournment or postponement thereof. The Corporation may require any proposed nominee to furnish, within ten (10) days of a request therefor, such other information as it may reasonably require to determine whether such proposed nominee is qualified under the Certificate of Incorporation, these Bylaws, the rules and regulations of any stock exchange applicable to the Corporation, or any law or regulation application to the Corporation to serve as a director of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Notwithstanding anything in the second sentence of paragraph (A)(2) of this Bylaw Section 12 to the contrary, in the event that the number of directors to be elected to the Board is increased, effective after the time

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Special Meetings of Stockholders. Only such business shall be conducted at a special meeting of stockholders as shall have been brought before the meeting pursuant to the Corporation's notice of meeting pursuant to Article II, Section 3 of these Bylaws. Nominations of persons for election to the Board may be made at a special meeting of stockholders at which directors are to be elected (1) pursuant to the Corporation's notice of meeting or (2)(a) by or at the direction of the Board or any authorized committee thereof or (b) provided that the Board has determined that directors shall be elected at such meeting, by any stockholder of the Corporation who is entitled to vote at the meeting on such matters, who complies with the notice procedures set forth in this Bylaw and who is a stockholder of record at the time such notice is delivered to the Secretary of the Corporation. The number of nominees a stockholder may nominate for election at the special meeting on such stockholder's own behalf (or in the case of a stockholder giving the notice on behalf of a beneficial owner, the number of nominees a stockholder may nominate for election at the special meeting on behalf of such beneficial owner) shall not exceed the number of directors to be elected at such special meeting. In the event a special meeting of stockholders is called for the purpose of electing one or more directors fill any vacancy or newly created directorship on the Board, any such stockholder entitled to vote in such election of directors may nominate a person or persons (as the case may be) for election to such position(s) as specified in the Corporation's notice of meeting if the stockholder's notice as required by paragraph (A)(2) of this Bylaw shall be delivered to the Secretary at the principal executive offices of the Corporation not earlier than the close of business on the one hundred and twentieth (120<sup>th</sup>) day prior to such special meeting and not later than the close of business on the later of the ninetieth (90<sup>th</sup>) day prior to such special meeting or the tenth (10<sup>th</sup>) day following the day on which the Corporation first makes a public announcement of the date of the special meeting at which directors are to be elected. In no event shall the public announcement of an adjournment or postponement of a special meeting commence a new time period (or extend any time period) for the giving of a stockholder's notice as described above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) General. (1) Only persons who are nominated in accordance with the procedures set forth in this Bylaw shall be eligible to serve as directors and only such business shall be conducted at a meeting of stockholders as shall have been brought before the meeting in accordance with the procedures set forth in this Bylaw. Except as otherwise provided by law, the Certificate of Incorporation or these Bylaws, the chair of the meeting (and in advance of the meeting of the stockholders, the Board or authorized committee thereof) shall, in addition to making any other determination that may be appropriate for the the conduct of the meeting, have the power and duty to determine whether a nomination or any business proposed to be brought before the meeting was made or proposed, as the case may be, in accordance with the procedures set forth in these Bylaws and, if any proposed nomination or business is not in compliance with these Bylaws, to declare that such defective nomination shall be disregarded or that such proposed business shall not be transacted.

Notwithstanding the foregoing provisions of this Section 12, if the stockholder (or a qualified representative of the stockholder) does not appear at the annual or special meeting of stockholders of the Corporation to present a nomination or business, such nomination shall be disregarded and such proposed business shall not be transacted, notwithstanding that proxies in respect of such vote may have been received by the Corporation. For purposes of this Section 12, to be considered a "qualified representative of the stockholder," a person must be a duly authorized officer, manager or partner of such stockholder or must be authorized by a writing executed by such stockholder or an electronic transmission delivered by such stockholder to act for such stockholder as proxy

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at the meeting of stockholders and such person must produce such writing or electronic transmission, or a reliable reproduction of the writing or electronic transmission, at the meeting of stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) For purposes of these Bylaws, "<u>public announcement</u>" shall mean disclosure (a) in a press release released by the Corporation, *provided* such press release is released by the Corporation following its customary procedures, is reported by the Dow Jones News Service, Associated Press, Business Wire or PR Newswire or comparable national news service, or is generally available on internet news sites, or (b) in a document publicly filed by the Corporation with the Securities and Exchange Commission pursuant to Sections 13, 14 or 15(d) of the Exchange Act and the rules and regulators thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) For purposes of this Bylaw, no adjournment or postponement or notice of adjournment or postponement of any meeting shall be deemed to constitute a new notice of such meeting for purposes of this Section 12, and in order for any notification required to be delivered by a stockholder pursuant to this Section 12 to be timely, such notification must be delivered within the periods set forth above with respect to the originally scheduled meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Notwithstanding the foregoing provisions of this Bylaw, a stockholder shall also comply with all applicable requirements of the Exchange Act and the rules and regulations promulgated thereunder with respect to the matters set forth in these Bylaws; provided however, that, to the fullest extent permitted by law, any references in these Bylaws to the Exchange Act or the rules and regulations promulgated thereunder are not intended to and shall not limit any requirements applicable to nominations or proposals as to any other business to be considered pursuant to this Bylaw (including paragraphs (A)(1)(c) and (B) hereof), and compliance with paragraphs (A)(1)(c) and (B) of this Bylaw shall be the exclusive means for a stockholder to make nominations or submit other business. Nothing in these Bylaws shall be deemed to affect any rights of the holders of any series of Preferred Stock to elect directors under specified circumstances pursuant to any applicable provision of the Certificate of Incorporation.

Section 13. Remote Communication. If authorized by the Board in its sole discretion, and subject to such guidelines and procedures as the Board may adopt, stockholders and proxyholders not physically present at a meeting of stockholders may, by means of remote communication:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) participate in a meeting of stockholders; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) be deemed present in person and vote at a meeting of stockholders whether such meeting is to be held at a designated place or solely by means of remote communication;

*provided*, that

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Corporation shall implement reasonable measures to verify that each person deemed present and permitted to vote at the meeting by means of remote communication is a stockholder or proxyholder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Corporation shall implement reasonable measures to provide such stockholders and proxyholders a reasonable opportunity to participate in the meeting and to vote on matters submitted to the stockholders, including an opportunity to read or hear the proceedings of the meeting substantially concurrently with such proceedings; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if any stockholder or proxyholder votes or takes other action at the meeting by means of remote communication, a record of such vote or other action shall be maintained by the Corporation.

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#### ARTICLE III.

#### BOARD OF DIRECTORS
Section 1. Subject to the Certificate of Incorporation, the exact number of directors shall be fixed from time to time exclusively by resolution adopted by the Board. The Board shall elect from its ranks a Chair, who shall have the powers and perform such duties as provided in these Bylaws and as the Board may from time to time prescribe. The Chair shall preside at all meetings of the Board at which the Chair is present. If the Chair is not present at a meeting of the Board, the Chief Executive Officer (if the Chief Executive Officer is a director and is not also the Chair) shall preside at such meeting, and, if the Chief Executive Officer is not present at such meeting or is not a director, a majority of the directors present at such meeting shall elect one (1) of their members to preside. The Board may elect or appoint co-Chair and, in such case, references in these Bylaws to the Chair shall refer to such co-Chair, each acting alone. Except as otherwise provided by the Certificate of Incorporation or these Bylaws, each director shall be elected by the vote of the majority of the votes cast with respect to that director's election at any meeting for the election of directors at which a quorum is present, provided that if, as of the tenth (10<sup>th</sup>) day preceding the date the Corporation first mails its notice of meeting for such meeting to the stockholders of the Corporation, the number of nominees exceeds the number of directors to be elected (a "Contested Election"), the directors shall be elected by the vote of a plurality of the votes cast. For purposes of this Article III, Section 1 of these Bylaws, a "majority of the votes cast" shall mean that the number of votes cast "for" a director's election exceeds the number of votes cast "against" that director's election (with "abstentions" and "broker nonvotes" not counted as a vote cast either "for" or "against" that director's election).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) <u>Limitations on Non-Citizens as Directors</u>. Notwithstanding anything to the contrary in these Bylaws, at least two-thirds of the members of the Board shall be "citizens of the United States" as provided under Section 40102(a)(15) of Subtitle VII of Title 49 of the United States Code, as amended, in any similar legislation of the United States enacted in substitution or replacement therefor, and as interpreted by the U.S. Department of Transportation, its predecessors and successors, from time to time ("<u>Applicable Transportation Law</u>"), and the Chair shall be a "citizen of the United States" as provided under Applicable Transportation Law for so long as required by Applicable Transportation Law. If the number of Non-Citizens serving on the Board at any time exceeds the limitations provided under Applicable Transportation Law, one or more directors who are Non-Citizens shall, in reverse chronological order based on their tenure of service on the Board, cease to be qualified as directors and shall automatically cease to be directors.

Section 2. In order for any incumbent director to become a nominee of the Board for further service on the Board, such person must submit an irrevocable resignation, contingent on (i) that person not receiving a majority of the votes cast in an election that is not a Contested Election, and (ii) acceptance of that resignation by the Board in accordance with the policies and procedures adopted by the Board for such purpose. In the event an incumbent director fails to receive a majority of the votes cast in an election that is not a Contested Election, the nominating and governance committee, or such other committee designated by the Board pursuant to these Bylaws, shall make a recommendation to the Board as to whether to accept or reject the resignation of such incumbent director, or whether other action should be taken. The Board shall act on the resignation, taking into account the committee's recommendation, and publicly disclose (by a press release and filing an appropriate disclosure with the Securities and Exchange Commission) its decision regarding the resignation and, if such resignation is rejected, the rationale behind the decision within ninety (90) days following certification of the election results. The committee in making its recommendation and the Board in making its decision each may consider any factors and other information that they consider appropriate and relevant.

If the Board accepts a director's resignation pursuant to this Article III, Section 2, or if a nominee for director is not elected and the nominee is not an incumbent director, then the Board may fill the resulting vacancy pursuant to Article III, Section 3 of these Bylaws.

Section 3. Except as may otherwise be provided in the Certificate of Incorporation, unless otherwise required by the DGCL or Article III, Section 6 of these Bylaws, any newly created directorship on the Board that

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results from an increase in the number of directors and any vacancy occurring in the Board (whether by death, resignation, removal, retirement, disqualification or otherwise) shall be filled only by the affirmative vote of a majority of the directors then in office, although less than a quorum, or by the sole remaining director.

Section 4. Meetings of the Board shall be held at such place, if any, within or without the State of Delaware as may from time to time be fixed by resolution of the Board or as may be specified in the notice of any meeting. Regular meetings of the Board shall be held at such times as may from time to time be fixed by resolution of the Board and special meetings may be held at any time upon the call of the Chair or the Chief Executive Officer or the Secretary of the Corporation if directed by a majority of the members of the Board then in office, by oral or written notice, including fax, e-mail or other means of electronic transmission, duly served on or sent and delivered to each director to such director's address, e-mail address or telephone number as shown on the books of the Corporation not less than twenty-four (24) hours before the meeting. Unless otherwise indicated in the notice thereof, any and all business may be transacted at a special meeting. A meeting of the Board may be held without notice immediately after the annual meeting of stockholders at the same place, if any, at which such meeting is held. Notice need not be given of regular meetings of the Board held at times fixed by resolution of the Board.

Section 5. A majority of the total number of directors shall constitute a quorum for the transaction of business. Except as otherwise provided by the DGCL, the Certificate of Incorporation or these Bylaws, the act of a majority of the directors present at a meeting at which a quorum is present shall be the act of the Board. In the absence of a quorum, a majority of the directors present thereat may adjourn such meeting to another time and place. Notice of such adjourned meeting need not be given if the time and place of such adjourned meeting are announced at the meeting so adjourned.

Section 6. Notwithstanding the foregoing, during any period when the holders of any series of Preferred Stock, voting separately as a series or together with one or more series, have the right to elect additional directors, then upon commencement and for the duration of the period during which such right continues: (i) the then otherwise total authorized number of directors of the Corporation shall automatically be increased by such specified number of directors, and the holders of such Preferred Stock shall be entitled to elect the additional directors so provided for or fixed pursuant to said provisions, and (ii) each such additional director shall serve until such director's successor shall have been duly elected and qualified, or until such director's right to hold such office terminates pursuant to said provisions, whichever occurs earlier, subject to their earlier death, resignation, retirement, disqualification or removal. Except as otherwise provided by the Board in the resolution or resolutions establishing such series, whenever the holders of any series of Preferred Stock having such right to elect additional directors are divested of such right pursuant to the provisions of such stock, the terms of office of all such additional directors elected by the holders of such stock, or elected to fill any vacancies resulting from the death, resignation, disqualification or removal of such additional directors, shall forthwith terminate, such directors shall cease to qualify as directors and shall cease to be directors and the total authorized number of directors of the Corporation shall automatically be reduced accordingly, but in all events not less than the total number of directors fixed pursuant to the Certificate of Incorporation. 

Section 7. If at any meeting for the election of directors, the Corporation has outstanding more than one class of stock, and one or more such classes or series thereof are entitled to vote separately as a class to elect directors, and there shall be a quorum of only one such class or series of stock, that class or series of stock shall be entitled to elect its quota of directors notwithstanding the absence of a quorum of the other class or series of stock.

Section 8. The Board may from time to time establish one or more committees of the Board to serve at the pleasure of the Board, which shall be composed of one or more members of the Board and have such duties as the Board shall from time to time determine. Any director may belong to any number of committees of the Board. Any such committee, to the extent provided in the resolution of the Board establishing such committee and subject to applicable law, shall have and may exercise all the powers and authority of the Board in the

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management of the business and affairs of the Corporation, and may authorize the seal of the Corporation to be affixed to all papers which may require it. The Board may designate one or more directors as alternate members of any committee, who may replace any absent or disqualified member at any meeting of the committee. In the absence or disqualification of a member of a committee, the member or members present at any meeting and not disqualified from voting, whether or not such member or members constitute a quorum, may unanimously appoint another member of the Board to act at the meeting in the place of any such absent or disqualified member. Unless otherwise provided in the Certificate of Incorporation, these Bylaws or the resolution of the Board designating the committee, a committee may create one or more subcommittees, each subcommittee to consist of one or more members of the committee, and may delegate to a subcommittee any or all of the powers and authority of the committee. Unless otherwise specified in the resolution of the Board designating the committee, at all meetings of such committee a majority of the total number of members of the committee shall constitute a quorum for the transaction of business, and the vote of a majority of the members of the committee present at any meeting at which there is a quorum shall be the act of the committee. Each committee shall keep regular minutes of its meetings. Unless the Board otherwise provides, each committee designated by the Board may make, alter and repeal rules for the conduct of its business. In the absence of such rules each committee shall conduct its business in the same manner as the Board conducts its business pursuant to Article III of these Bylaws.

The Board may also establish such other committees of the Corporation with such members (whether or not directors) and with such duties as the Board may from time to time determine; provided that no such committee shall be delegated or shall exercise any power of the Board delegable to a committee of the Board that is reserved to the Board under the Certificate of Incorporation or applicable law.

At least two-thirds of the members of each committee or subcommittee of the Board shall be comprised of individuals who are "citizens of the United States" as provided under Applicable Transportation Law.

The Corporation has opted into DGCL 141(c)(2) pursuant to resolutions adopted by the Board.

Section 9. Unless otherwise restricted by the Certificate of Incorporation or these Bylaws, any action required or permitted to be taken at any meeting of the Board or of any committee thereof may be taken without a meeting if all members of the Board or committee, as the case may be, consent thereto in writing or by electronic transmission, and any consent may be documented, signed and delivered in any manner permitted by Section 116 of the DGCL. After an action is taken, the consent or consents, or electronic transmission or transmissions, shall be filed in the minutes of proceedings of the Board in accordance with applicable law. Such filing shall be in paper form if the minutes are maintained in paper form or shall be in electronic form if the minutes are maintained in electronic form.

Section 10. The members of the Board or any committee thereof may participate in a meeting of the Board or committee, as the case may be, by means of conference telephone or other communications equipment by means of which all persons participating in the meeting can hear each other, and participation in a meeting pursuant to this subsection shall constitute presence in person at such a meeting.

Section 11. The Board may establish policies for the compensation of directors and for the reimbursement of the expenses of directors, in each case, in connection with services provided by directors to the Corporation.

Section 12. Any director may resign at any time upon notice given in writing or by electronic transmission to the Board, the Chair, the Chief Executive Officer or the Secretary of the Corporation. The resignation shall take effect at the time specified therein, and if no such time is specified, at the time of its receipt. The acceptance of a resignation shall not be necessary to make it effective unless otherwise expressly provided in the resignation.

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#### ARTICLE IV.

#### OFFICERS
Section 1. The Board shall elect officers of the Corporation as required by the DGCL. The Board may also from time to time elect such other officers (including, without limitation, a Chief Executive Officer, a President, a Chief Financial Officer, a Chief Operating Officer, a Chief Administrative Officer, a General Counsel, one or more Vice Presidents, a Treasurer, one or more Assistant Vice Presidents, a Secretary, one or more Assistant Secretaries and one or more Assistant Treasurers) as it may deem proper or may delegate to any elected officer of the Corporation the power to appoint and remove any such other officers and to prescribe their respective terms of office, authorities and duties. Any Vice President may be designated Executive, Senior or Corporate, or may be given such other designation or combination of designations as the Board or the Chief Executive Officer may determine. Any two or more offices may be held by the same person. The Board may elect or appoint co-Presidents or co-Chief Executive Officers and, in such case, references in these Bylaws to the President or the Chief Executive Officer shall refer to either such co-President or co-Chief Executive Officer, as the case may be, each such person acting alone. Neither the Chair nor Vice Chair shall be an officer unless expressly so designated by the Board.

Section 2. All officers of the Corporation elected by the Board shall hold office for such terms as may be determined by the Board or, except with respect to their own office, the Chief Executive Officer, or until their respective successors are chosen and qualified or until their earlier resignation or removal. Any officer may be removed from office at any time either with or without cause by affirmative vote of a majority of the members of the Board then in office, or, in the case of appointed officers, by any elected officer upon whom such power of removal shall have been conferred by the Board.

Section 3. Each of the officers of the Corporation elected by the Board or appointed by an officer in accordance with these Bylaws shall have the powers and duties prescribed by law, by these Bylaws or by the Board and, in the case of appointed officers, the powers and duties prescribed by the appointing officer, and, unless otherwise prescribed by these Bylaws or by the Board or such appointing officer, shall have such further powers and duties as ordinarily pertain to that office.

Section 4. Unless otherwise provided in these Bylaws, in the absence or disability of any officer of the Corporation, the Board or the Chief Executive Officer may, during such period, delegate such officer's powers and duties to any other officer or to any director and the person to whom such powers and duties are delegated shall, for the time being, hold such office.

Section 5. Limitations on Non-Citizens as Officers. Notwithstanding anything to the contrary in these Bylaws, the Chief Executive Officer and President and at least two-thirds of the other officers of the Corporation shall be "citizens of the United States" as provided under Applicable Transportation Law for so long as required by Applicable Transportation Law.

#### ARTICLE V.

#### INDEMNIFICATION AND ADVANCEMENT OF EXPENSES
Section 1. Each person who was or is made a party or is threatened to be made a party to or is otherwise involved in any action, suit or proceeding, whether civil, criminal, administrative or investigative (hereinafter a "<u>proceeding</u>"), by reason of the fact that such person is or was a director or an officer of the Corporation or, while serving as a director or officer of the Corporation, is or was serving at the request of the Corporation as a director, officer, employee, agent or trustee of another corporation or of a partnership, joint venture, trust or other enterprise, including service with respect to an employee benefit plan (hereinafter an "<u>indemnitee</u>"), whether the

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basis of such proceeding is alleged action in an official capacity as a director, officer, employee, agent or trustee or in any other capacity while serving as a director, officer, employee, agent or trustee, shall be indemnified and held harmless by the Corporation to the fullest extent permitted by Delaware law, as the same exists or may hereafter be amended (but, in the case of any such amendment, if permitted, only to the extent that such amendment permits the Corporation to provide broader indemnification rights than such law permitted the Corporation to provide prior to such amendment), against all expense, liability and loss (including attorneys' fees, judgments, fines, ERISA excise taxes or penalties and amounts paid in settlement) actually and reasonably incurred or suffered by such indemnitee in connection therewith; provided, however, that, except as provided in Section 3 of this Article V with respect to proceedings to enforce rights to indemnification or advancement of expenses or with respect to any compulsory counterclaim brought by such indemnitee, the Corporation shall indemnify any such indemnitee in connection with a proceeding (or part thereof) initiated by such indemnitee only if such proceeding (or part thereof) was authorized by the Board.

Any reference to an officer of the Corporation in this Article V shall be deemed to refer exclusively to the Chief Executive Officer, President, Chief Financial Officer, Chief Operating Officer and General Counsel of the Corporation appointed pursuant to Article IV of these Bylaws, and to any Vice President, Assistant Secretary, Assistant Treasurer or other officer of the Corporation appointed by the Board pursuant to Article IV of these Bylaws, including, without limitation, any "executive officer" or "Section 16 officer," and any reference to an officer of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise shall be deemed to refer exclusively to an officer appointed by the board of directors or equivalent governing body of such other entity pursuant to the certificate of incorporation and bylaws or equivalent organizational documents of such other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise. The fact that any person who is or was an employee of the Corporation or an employee of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise, but not an officer thereof as described in the preceding sentence, has been given or has used the title of "Vice President" or any other title that could be construed to suggest or imply that such person is or may be such an officer of the Corporation or of such other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise shall not result in such person being constituted as, or being deemed to be, such an officer of the Corporation or of such other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise shall not result in such person being constituted as, or being deemed to be, such an officer of the Corporation or of such other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise for purposes of this Article V.

Section 2. In addition to the right to indemnification conferred in Section 1 of this Article V, an indemnitee shall also have the right to be paid by the Corporation the expenses (including attorney's fees) incurred by the indemnitee in appearing at, participating in or defending any such proceeding in advance of its final disposition or in connection with a proceeding brought to establish or enforce a right to indemnification or advancement of expenses under this Article V (which shall be governed by Section 3 of this Article V) (hereinafter an "<u>advancement of expenses</u>"); provided, however, that, if (x) the DGCL requires or (y) in the case of an advancement of expenses made in a proceeding brought to establish or enforce a right to indemnification or advancement, an advancement of expenses incurred by an indemnitee in their capacity as a director or officer (and not in any other capacity in which service was or is rendered by such indemnitee, including, without limitation, service to an employee benefit plan) shall be made solely upon delivery to the Corporation of an undertaking (hereinafter an "undertaking"), by or on behalf of such indemnitee, to repay all amounts so advanced if it shall ultimately be determined after final judicial decision from which there is no further right to appeal (hereinafter a "final adjudication") that such indemnitee is not entitled to be indemnified or entitled to advancement of expenses under this Article V or otherwise; provided, further, that, except as provided in Section 3 of this Article V with respect to proceedings to enforce rights to indemnification or advancement of expenses or with respect to any compulsory counterclaim brought by such indemnitee, the Corporation shall make an advancement of expenses to any such indemnitee in connection with a proceeding (or part thereof) initiated by such indemnitee only if such proceeding (or part thereof) was authorized by the Board.

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Section 3. If a claim under Section 1 or 2 of this Article V is not paid in full by the Corporation within (i) sixty (60) days after a written claim for indemnification has been received by the Corporation or (ii) thirty (30) days after a claim for an advancement of expenses has been received by the Corporation, the indemnitee may at any time thereafter bring suit against the Corporation to recover the unpaid amount of the claim or to obtain advancement of expenses, as applicable. To the fullest extent permitted by law, if successful in whole or in part in any such suit, or in a suit brought by the Corporation to recover an advancement of expenses pursuant to the terms of an undertaking, the indemnitee shall be entitled to be paid also the expense of prosecuting or defending such suit. In any suit brought by the indemnitee to enforce a right to indemnification hereunder (but not in a suit brought by the indemnitee to enforce a right to an advancement of expenses) it shall be a defense that the indemnitee has not met any applicable standard for indemnification set forth in the DGCL, and in any suit brought by the Corporation to recover an advancement of expenses pursuant to the terms of an undertaking, the Corporation shall be entitled to recover such expenses upon a final adjudication that, the indemnitee has not met any applicable standard for indemnification set forth in the DGCL. Neither the failure of the Corporation (including by its directors who are not parties to such action, a committee of such directors, independent legal counsel, or its stockholders) to have made a determination prior to the commencement of such suit that indemnification of the indemnitee is proper in the circumstances because the indemnitee has met the applicable standard of conduct set forth in the DGCL, nor an actual determination by the Corporation (including by its directors who are not parties to such action, a committee of such directors, independent legal counsel, or its stockholders) that the indemnitee has not met such applicable standard of conduct, shall create a presumption that the indemnitee has not met the applicable standard of conduct. In any suit brought by the indemnitee to enforce a right to indemnification or to an advancement of expenses hereunder, or brought by the Corporation to recover an advancement of expenses pursuant to the terms of an undertaking, the burden of proving that the indemnitee is not entitled to be indemnified, or to such advancement of expenses, under this Article V or otherwise shall be on the Corporation.

Section 4. (A) The provision of indemnification to or the advancement of expenses to any indemnitee under this Article V, or the entitlement of any indemnitee to indemnification or advancement of expenses under this Article V, shall not limit or restrict in any way the power of the Corporation to indemnify or advance expenses to such indemnitee in any other way permitted by law or be deemed exclusive of, or invalidate, any right to which any indemnitee seeking indemnification or advancement of expenses may be entitled under any law, agreement, vote of stockholders or disinterested directors or otherwise, both as to action in such indemnitee's capacity as an officer, director, employee or agent of the Corporation and as to action in any other capacity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Given that certain jointly indemnifiable claims (as defined below) may arise due to the service of the indemnitee as a director and/or officer of the Corporation at the request of the indemnitee-related entities (as defined below), to the fullest extent permitted by law, the Corporation shall be fully and primarily responsible for the payment to the indemnitee in respect of indemnification or advancement of all expenses, judgments, penalties, fines and amounts paid in settlement to the extent legally permitted and as required by the terms of the Certificate of Incorporation or these Bylaws of the Corporation (or any other agreement between the Corporation and such persons, as applicable) in connection with any such jointly indemnifiable claims, pursuant to and in accordance with the terms of this Article V, irrespective of any right of recovery the indemnitee may have from the indemnitee-related entities. Any obligation on the part of any indemnitee-related entities to indemnify or advance expenses to any indemnitee shall be secondary to the Corporation's obligation and shall be reduced by any amount that the indemnitee may collect as indemnification or advancement from the Corporation. The Corporation irrevocably waives, relinquishes and releases the indemnitee-related entities from any and all claims it may have against the indemnitee-related entities for contribution, subrogation or any other recovery of any kind in respect thereof. Under no circumstance shall the Corporation be entitled to any right of subrogation or contribution by the indemnitee-related entities and no right of advancement or recovery the indemnitee may have from the indemnitee-related entities shall reduce or otherwise alter the rights of the indemnitee or the obligations of the Corporation hereunder. In the event that any of the indemnitee-related entities shall make any payment to the indemnitee in respect of indemnification or advancement of expenses with respect to any jointly indemnifiable claim, the indemnitee-related entity making such payment shall be subrogated to the extent of such

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payment to all of the rights of recovery of the indemnitee against the Corporation, and the indemnitee shall execute all papers reasonably required and shall do all things that may be reasonably necessary to secure such rights, including the execution of such documents as may be necessary to enable the indemnitee-related entities effectively to bring suit to enforce such rights. Each of the indemnitee-related entities shall be third-party beneficiaries with respect to this Section 4(B) of Article V, entitled to enforce this Section 4(B) of Article V.

For purposes of this Section 4(B) of Article V, the following terms shall have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The term "<u>indemnitee-related entities</u>" means any corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other enterprise (other than the Corporation or any other corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other enterprise for which the indemnitee has agreed, on behalf of the Corporation or at the Corporation's request, to serve as a director, officer, employee or agent and which service is covered by the indemnity described herein) from whom an indemnitee may be entitled to indemnification or advancement of expenses with respect to which, in whole or in part, the Corporation may also have an indemnification or advancement obligation (other than as a result of obligations under an insurance policy).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The term "<u>jointly indemnifiable claims</u>" shall be broadly construed and shall include, without limitation, any action, suit or proceeding for which the indemnitee shall be entitled to indemnification or advancement of expenses from both the indemnitee-related entities and the Corporation pursuant to Delaware law, any agreement or certificate of incorporation, bylaws, partnership agreement, operating agreement, certificate of formation, certificate of limited partnership or comparable organizational documents of the Corporation or the indemnitee-related entities, as applicable.

Section 5. The rights granted pursuant to the provisions of this Article V shall vest at the time a person becomes a director or officer of the Corporation entitled to such rights and shall be deemed to create a binding contractual obligation on the part of the Corporation to the persons who from time to time are elected as officers or directors of the Corporation entitled to such rights, and such persons in acting in their capacities as officers or directors of the Corporation or any subsidiary shall be entitled to rely on such provisions of this Article V without giving notice thereof to the Corporation. Such rights shall continue as to an indemnitee who has ceased to be a director or officer and shall inure to the benefit of the indemnitee's heirs, executors and administrators. Any amendment, alteration or repeal of this Article V that adversely affects any right of an indemnitee or its successors shall be prospective only and shall not limit, eliminate, or impair any such right with respect to any proceeding involving any occurrence or alleged occurrence of any action or omission to act that took place prior to such amendment or repeal.

Section 6. The Corporation may purchase and maintain insurance, at its expense, to protect itself and any director, officer, employee or agent of the Corporation or another corporation, partnership, joint venture, trust or other enterprise against any expense, liability or loss, whether or not the Corporation would have the power to indemnify such person against such expense, liability or loss under the DGCL.

Section 7. The Corporation may, to the extent authorized from time to time by the Board and to the fullest extent permitted by law, grant rights to indemnification and to the advancement of expenses to any employee or agent of the Corporation and to any person (in addition to an indemnitee) serving at the request of the Corporation as an officer, director, employee or agent of any other enterprise to the fullest extent of the provisions of this Article V with respect to the indemnification and advancement of expenses of indemnitees hereunder.

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#### ARTICLE VI.

#### CORPORATE BOOKS
The books of the Corporation may be kept inside or outside of the State of Delaware at such place or places as the Board may from time to time determine.

#### ARTICLE VII.

#### CHECKS, NOTES, PROXIES, ETC.
All checks and drafts on the Corporation's bank accounts and all bills of exchange and promissory notes, and all acceptances, obligations and other instruments for the payment of money, shall be signed by such officer or officers or agent or agents as shall be authorized from time to time by the Board or such officer or officers who may be delegated such authority. Proxies to vote and consents with respect to securities of other corporations or other entities owned by or standing in the name of the Corporation may be executed and delivered from time to time on behalf of the Corporation by the Chief Executive Officer, or by such officers as the Chief Executive Officer or the Board may from time to time determine.

Unless otherwise directed by the Board, the Chief Executive Officer, a Vice President, the Treasurer or the Secretary, or such other officer or agent as shall be authorized by the Board, shall have the power and authority, on behalf of the Corporation, to attend and to vote at any meeting of securityholders of any entity in which the Corporation holds securities or equity interests and may exercise, on behalf of the Corporation, any and all of the rights and powers incident to the ownership of such securities or equity interests at any such meeting, including the authority to execute and deliver proxies and consents on behalf of the Corporation.

#### ARTICLE VIII.

#### FISCAL YEAR
The fiscal year of the Corporation shall be, unless otherwise determined by resolution of the Board, the calendar year ending on December 31.

#### ARTICLE IX.

#### CORPORATE SEAL
The corporate seal shall have inscribed thereon the name of the Corporation. In lieu of the corporate seal, when so authorized by the Board or a duly empowered committee thereof, a facsimile thereof may be impressed or affixed or reproduced.

#### ARTICLE X.

#### GENERAL PROVISIONS
Section 1. Whenever notice is required to be given by law or under any provision of the Certificate of Incorporation or these Bylaws, notice of any meeting need not be given to any person who shall attend such meeting (except when the person attends a meeting for the express purpose of objecting, at the beginning of the

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meeting, to the transaction of any business because the meeting is not lawfully called or convened), or who shall waive notice thereof, before or after such meeting, in writing (including by electronic transmission). For purposes of these Bylaws, "electronic transmission" means any form of communication, not directly involving the physical transmission of paper, including the use of, or participation in, one or more electronic networks or databases (including one or more distributed electronic networks or databases), that creates a record that may be retained, retrieved, and reviewed by a recipient thereof, and that may be directly reproduced in paper form by such a recipient through an automated process.

Section 2. Section headings in these Bylaws are for convenience of reference only and shall not be given any substantive effect in limiting or otherwise construing any provision herein.

Section 3. In the event that any provision of these Bylaws is or becomes inconsistent with any provision of the Certificate of Incorporation, the DGCL, or any other applicable law, such provision of these Bylaws shall not be given any effect to the extent of such inconsistency but shall otherwise be given full force and effect.

#### ARTICLE XI.

#### AMENDMENTS
Section 1. The Board is expressly authorized to make, alter, amend, change, add to, rescind or repeal, in whole or in part, these Bylaws without the assent or vote of the stockholders in any manner not inconsistent with the laws of the State of Delaware or the Certificate of Incorporation.

#### ARTICLE XII.

#### SHARES
Section 1. Unless the Board shall otherwise provide by resolution or resolutions that the shares of stock of the Corporation shall be represented by certificates, the Corporation's stock shall be uncertificated shares. Every holder of stock in the Corporation represented by certificates shall be entitled to have a certificate signed by, or in the name of the Corporation by any two authorized officers of the Corporation (it being understood that each of the Chair, the Vice Chair, Chief Executive Officer, President, Chief Financial Officer, a Vice President, the Treasurer, any Assistant Treasurer, the Secretary and any Assistant Secretary of the Corporation shall be an authorized officer for such purpose), certifying the number and class of shares of stock of the Corporation owned by such holder. Any or all of the signatures on any such certificate may be a facsimile. The Board shall have the power to appoint one or more transfer agents and/or registrars for the transfer or registration of certificates of stock of any class, and may require stock certificates to be countersigned or registered by one or more of such transfer agents and/or registrars.

Section 2. Within a reasonable time after the issue or transfer of any uncertificated shares, a statement of the information required by the DGCL shall be sent in writing or by electronic transmission by or on behalf of the Corporation to stockholders entitled to such uncertificated shares. The Corporation may adopt a system of issuance, recordation and transfer of its shares of stock by electronic or other means not involving the issuance of certificates.

Section 3. Shares of stock of the Corporation represented by certificates shall be transferable upon its books by the holders thereof, in person or by their duly authorized attorneys or legal representatives, in the manner prescribed by law, the Certificate of Incorporation and in these Bylaws, upon surrender to the Corporation by delivery of the certificates representing such shares (to the extent such shares are evidenced by a physical stock certificate) or by due delivery of transfer instructions (in the case of uncertificated shares) and any documents

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required therefor to the person in charge of the stock and transfer books and ledgers and compliance with any procedures adopted by the Corporation or its agents and applicable law. Certificates representing such shares, if any, shall be cancelled and new certificates (if the shares are to be certificated) or uncertificated shares (if the shares are to be uncertificated) shall thereupon be issued. A record shall be made of each transfer. Whenever any transfer of shares shall be made for collateral security, and not absolutely, it shall be so expressed in the entry of the transfer if, when the certificates (if any) are presented to the Corporation for transfer or when any uncertificated shares are requested to be transferred, both the transferor and transferee request the Corporation to do so. The Corporation shall, subject to applicable law, have power and authority to make such rules and regulations as it may deem necessary or proper concerning the issue, transfer and registration of certificates for shares of stock of the Corporation or uncertificated shares.

Section 4. A new certificate of stock or uncertificated shares may be issued in the place of any certificate previously issued by the Corporation alleged to have been lost, stolen or destroyed, and the Corporation may, in its discretion, require the owner of such lost, stolen or destroyed certificate, or such owner's legal representative, to give the Corporation a bond, in such sum as the Corporation may direct, in order to indemnify the Corporation against any claims that may be made against it in connection therewith. A new certificate or uncertificated shares of stock may be issued in the place of any certificate previously issued by the Corporation that has become mutilated upon the surrender by such owner of such mutilated certificate and, if required by the Corporation, the posting of a bond by such owner in an amount sufficient to indemnify the Corporation against any claim that may be made against it in connection therewith.

Section 5. Non-Citizen Voting and Ownership Limitations. All Common Stock and Preferred Stock of the Corporation shall be subject to certain limitations as set forth in the Certificate of Incorporation.

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#### Exhibit 3
<u>Three Party Agreement</u> 

*See attached* 

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##### [**Table of Contents**](#toc)

#### Execution Version
THREE PARTY AGREEMENT

among

MESA AIR GROUP, INC.,

MESA AIRLINES, INC.,

UNITED AIRLINES, INC.,

REPUBLIC AIRWAYS HOLDINGS INC.

and

MESA REPRESENTATIVE

Dated as of April 4, 2025

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#### **TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
|  |  | **Page** |
| **ARTICLE I** | **ARTICLE I** | **ARTICLE I** |
| CERTAIN PRE-CLOSING AND CLOSING TRANSACTIONS | CERTAIN PRE-CLOSING AND CLOSING TRANSACTIONS | CERTAIN PRE-CLOSING AND CLOSING TRANSACTIONS |
|  [Section 1.1](#anxa944307_1) | [CRJ Asset Impairment Losses](#anxa944307_1) | A-125 |
|  [Section 1.2](#anxa944307_2) | [Inspections](#anxa944307_2) | A-125 |
|  [Section 1.3](#anxa944307_3) | [FTI Fees and Legal Fees](#anxa944307_3) | A-126 |
|  [Section 1.4](#anxa944307_4) | [Closing Date Extinguishment and/or Assumption of Mesa Obligations; Payment of United Closing Payment Amount](#anxa944307_4) | A-126 |
|  [Section 1.5](#anxa944307_5) | [Primary Issuance](#anxa944307_5) | A-127 |
|  [Section 1.6](#anxa944307_6) | [Termination of Mesa CPA](#anxa944307_6) | A-127 |
|  [Section 1.7](#anxa944307_7) | [Mesa's Delivery of Proposed Final Closing Statement and United's and NewCo's Responses Thereto](#anxa944307_7) | A-128 |
|  [Section 1.8](#anxa944307_8) | [UST Loan](#anxa944307_8) | A-133 |
|  [Section 1.9](#anxa944307_9) | [Archer Agreements](#anxa944307_9) | A-134 |
|  [Section 1.10](#anxa944307_10) | [Malta](#anxa944307_10) | A-136 |
| **ARTICLE II** | **ARTICLE II** | **ARTICLE II** |
| POST-CLOSING TRANSACTIONS RELATED TO MESA OBLIGATIONS; ASSET SALES | POST-CLOSING TRANSACTIONS RELATED TO MESA OBLIGATIONS; ASSET SALES | POST-CLOSING TRANSACTIONS RELATED TO MESA OBLIGATIONS; ASSET SALES |
|  [Section 2.1](#anxa944307_11) | [Disposition of the Shares](#anxa944307_11) | A-136 |
|  [Section 2.2](#anxa944307_12) | [United Debt Forgiveness; No Further Recourse for United Beyond the United Shares; Indemnification](#anxa944307_12) | A-138 |
|  [Section 2.3](#anxa944307_13) | [Asset Sales](#anxa944307_13) | A-138 |
| **ARTICLE III** | **ARTICLE III** | **ARTICLE III** |
| CERTAIN REIMBURSEMENTS FOR PILOT TRAINING. | CERTAIN REIMBURSEMENTS FOR PILOT TRAINING. | CERTAIN REIMBURSEMENTS FOR PILOT TRAINING. |
|  [Section 3.1](#anxa944307_14) | [Subject CRJ Pilots](#anxa944307_14) | A-141 |
|  [Section 3.2](#anxa944307_15) | [Certified E175 Pilot Payments](#anxa944307_15) | A-141 |
| **ARTICLE IV** | **ARTICLE IV** | **ARTICLE IV** |
| REPRESENTATIONS AND WARRANTIES OF THE PARTIES | REPRESENTATIONS AND WARRANTIES OF THE PARTIES | REPRESENTATIONS AND WARRANTIES OF THE PARTIES |
|  [Section 4.1](#anxa944307_16) | [Organization and Qualification](#anxa944307_16) | A-141 |
|  [Section 4.2](#anxa944307_17) | [Authority](#anxa944307_17) | A-142 |
|  [Section 4.3](#anxa944307_18) | [No Conflict](#anxa944307_18) | A-142 |
|  [Section 4.4](#anxa944307_19) | [Required Filings and Consents](#anxa944307_19) | A-142 |
|  [Section 4.5](#anxa944307_20) | [Pre-Close Assets Sales Documentation](#anxa944307_20) | A-142 |
|  [Section 4.6](#anxa944307_21) | [No United Triggering Events. United represents and warrants to Republic and Mesa that there are no, and have been no, United Triggering Events, and that there are no currently contemplated United Triggering Events](#anxa944307_21) | A-142 |
|  [Section 4.7](#anxa944307_22) | [Merger Agreement Representations and Warranties](#anxa944307_22) | A-142 |
|  [Section 4.8](#anxa944307_23) | [Pilots](#anxa944307_23) | A-143 |
|  [Section 4.9](#anxa944307_24) | [Consulting Services](#anxa944307_24) | A-143 |
| **ARTICLE V** | **ARTICLE V** | **ARTICLE V** |
| TERMINATION; AMENDMENT; WAIVER | TERMINATION; AMENDMENT; WAIVER | TERMINATION; AMENDMENT; WAIVER |
|  [Section 5.1](#anxa944307_25) | [Termination](#anxa944307_25) | A-143 |
|  [Section 5.2](#anxa944307_26) | [Effect of Termination](#anxa944307_26) | A-144 |
|  [Section 5.3](#anxa944307_27) | [Amendment](#anxa944307_27) | A-145 |
|  [Section 5.4](#anxa944307_28) | [Waiver](#anxa944307_28) | A-145 |

---

A-i

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---

| | | |
|:---|:---|:---|
|  |  | **Page** |
| **ARTICLE VI** | **ARTICLE VI** | **ARTICLE VI** |
| GENERAL PROVISIONS | GENERAL PROVISIONS | GENERAL PROVISIONS |
|  [Section 6.1](#anxa944307_29) | [Non-Survival of Representations, Warranties and Pre-Closing Covenants](#anxa944307_29) | A-145 |
|  [Section 6.2](#anxa944307_30) | [Fees and Expenses](#anxa944307_30) | A-145 |
|  [Section 6.3](#anxa944307_31) | [Notices](#anxa944307_31) | A-145 |
|  [Section 6.4](#anxa944307_32) | [Interpretation; Certain Definitions; Exhibits and Schedules](#anxa944307_32) | A-146 |
|  [Section 6.5](#anxa944307_33) | [Severability](#anxa944307_33) | A-147 |
|  [Section 6.6](#anxa944307_34) | [Assignment](#anxa944307_34) | A-147 |
|  [Section 6.7](#anxa944307_35) | [Entire Agreement](#anxa944307_35) | A-147 |
|  [Section 6.8](#anxa944307_36) | [No Third-Party Beneficiaries](#anxa944307_36) | A-147 |
|  [Section 6.9](#anxa944307_37) | [Remedies](#anxa944307_37) | A-147 |
|  [Section 6.10](#anxa944307_38) | [Governing Law; Exclusive Jurisdiction](#anxa944307_38) | A-148 |
|  [Section 6.11](#anxa944307_39) | [Waiver of Jury Trial; Limitation on Damages](#anxa944307_39) | A-148 |
|  [Section 6.12](#anxa944307_40) | [Counterparts and Electronic Signatures](#anxa944307_40) | A-149 |
|  [Section 6.13](#anxa944307_41) | [Non-Recourse](#anxa944307_41) | A-149 |
|  [Section 6.14](#anxa944307_42) | [Joint and Several Obligations](#anxa944307_42) | A-149 |
|  [Section 6.15](#anxa944307_43) | [Tax Indemnification](#anxa944307_43) | A-149 |
|  [Section 6.16](#anxa944307_44) | [Intended Tax Treatment](#anxa944307_44) | A-150 |
|  [Section 6.17](#anxa944307_45) | [Lock-Up; Registration Rights](#anxa944307_45) | A-150 |
|  [Section 6.18](#anxa944307_46) | [Public Announcements](#anxa944307_46) | A-151 |
|  [Section 6.19](#anxa944307_47) | [Indemnity Procedures](#anxa944307_47) | A-152 |

---

---

| | |
|:---|:---|
| APPENDICES | APPENDICES |
| **Appendix A** | **[Intentionally Omitted]** |
| **Appendix B** | **[Intentionally Omitted]** |
| **Appendix C** | **[Intentionally Omitted]** |
| **Appendix D** | **[Intentionally Omitted]** |
| **Appendix E** | **[Intentionally Omitted]** |
| **Appendix F** | **[Intentionally Omitted]** |
| **Appendix G** | **[Intentionally Omitted]** |
| **Appendix H** | **[Intentionally Omitted]** |
| **Appendix I** | **[Intentionally Omitted]** |
| **Appendix J** | **[Intentionally Omitted]** |
| **Appendix K** | **Rate Escalation Credit** |
| **Appendix L** | **Sample Mesa Trial Balance** |
| **EXHIBITS** | **EXHIBITS** |
| **Exhibit 1** | **[Intentionally Omitted]** |
| **Exhibit 2** | **[Intentionally Omitted]** |
| **Exhibit 3** | **Form of United Assignment & Assumption Agreement (Mesa Obligations)** |
| **Exhibit 4** | **Form of Escrow Agreement** |
| **Exhibit 5** | **Releases** |
| **SCHEDULES** | **SCHEDULES** |
| **Schedule 1.7(o)** | **Illustrative Examples** |
| **Schedule 4.8** | **Mesa Pilots** |
| **Schedule 6.16** | **Intended Tax Treatment** |
| **Schedule 6.17** | **Lock-Up** |

---

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THIS THREE PARTY AGREEMENT (together with the appendices, exhibits and schedules attached hereto, this "<u>Agreement</u>"), dated as of April 4, 2025 is made by and among Mesa Air Group, Inc., a Nevada corporation ("<u>Mesa</u>"), Mesa Airlines, Inc., a Nevada corporation ("<u>Mesa Airlines</u>"), United Airlines, Inc., a Delaware corporation ("<u>United</u>"), Republic Airways Holdings, Inc., a Delaware corporation ("<u>Republic</u>"), and Mesa Shareholder Representative, LLC, a Nevada limited liability company (the "<u>Mesa Representative</u>" and together, with Mesa, Mesa Airlines, United and Republic, the "<u>Parties</u>").

<u>RECITALS</u> 

WHEREAS, concurrently with the Parties' entry into this Agreement, Mesa and Republic are entering into that certain Agreement and Plan of Merger (the "<u>Merger Agreement</u>"), pursuant to which Republic will be merged with and into Mesa, with Mesa continuing as the surviving corporation in such merger (the "<u>Merger</u>", and Mesa as the surviving corporation, "<u>NewCo</u>");

WHEREAS, in connection with the closing of the Merger (the "<u>Closing</u>") and the post-Closing operation of NewCo, the Parties desire to enter into this Agreement pursuant to which, among other things (and all as set forth in further detail herein), and subject to and in accordance with the terms and conditions contained in this Agreement: (i) Mesa will take certain actions at or prior to the Closing to dispose of certain assets, extinguish certain liabilities and effectuate certain related transactions; (ii) Mesa at the Closing will conduct a primary issuance of a number of shares (the "<u>Shares</u>") of its common stock, no par value (the "<u>Mesa Common Stock</u>") in an amount equal to 6% of the issued and outstanding shares of Mesa Common Stock after giving effect to the issuance of Mesa Common Stock in the Merger (such issuance, the "<u>Primary Issuance</u>"), which Shares will subsequently become available to United to satisfy certain liabilities, with any remainder to then become available to NewCo to satisfy certain liabilities, and with any remainder to finally be transferred on a pro rata basis to the Persons who, as of immediately prior to the Effective Time, held shares of Mesa Common Stock (the "<u>Pre-Merger Mesa Shareholders</u>") as determined pursuant to <u>Section</u> <u>2.1</u>; and (iii) United will reimburse NewCo for certain costs and expenses; and

WHEREAS, the Parties desire to make certain representations, warranties, covenants and agreements in connection with the transactions contemplated hereby.

NOW, THEREFORE, in consideration of the foregoing and the representations and warranties on which each Party has relied as a material inducement for such Party's execution and delivery of this Agreement, and also in consideration of the covenants and agreements set forth herein, and subject to the conditions herein contained, and for other good and valuable consideration, the receipt, validity and sufficiency of which are acknowledged, and intending to be legally bound hereby, the Parties hereby agree as follows:

#### ARTICLE I
<u>CERTAIN PRE-CLOSING AND CLOSING TRANSACTIONS</u>

Section 1.1 <u>CRJ Asset Impairment Losses</u>. Prior to the Closing, Mesa shall recognize all impairment losses in respect of the CRJ Assets.

Section 1.2 <u>Inspections</u>. Prior to the Closing, reasonably promptly following written request from time to time from either United or Republic, Mesa shall (a) make all of the applicable assets (determined in relation to any such written request) referenced in <u>Appendix D</u> (including any and all records relating thereto) reasonably available to United, Republic and their respective Representatives in each case as reasonably necessary to confirm the existence of such assets and/or to allow United, Republic or their Representatives to inspect the condition of such assets and (b) shall cause Mesa's applicable personnel and Representatives to be reasonably

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available in furtherance of the same; *provided* that (i) each such written request from United or Republic (as the case may be) shall include reasonable detail as to the assets being requested for inspection (and, if applicable, the records relating thereto), (ii) all inspections pursuant to this <u>Section 1.2</u> shall be performed in a manner that minimizes unreasonable disruption to Mesa's personnel, business and revenue service operations (the existence of any such disruption to be determined reasonably by United or Republic, as applicable) and during normal business hours.

Section 1.3 <u>FTI Fees and Legal Fees</u>. At the Closing, Mesa shall pay to (i) FTI any and all remaining FTI Fees in full and final satisfaction of all amounts due or reimbursable to FTI or any of its Affiliates by Mesa or any of its Affiliates in connection with the FTI Fee Letter and any other engagement letter or similar Contract between FTI or any of its Affiliates, on the one hand, and Mesa or any of its Affiliates, on the other hand (in each case, other than customary indemnification obligations that survive the termination of the FTI Fee Letter) and (ii) its legal counsels any and all remaining Legal Fees in full and final satisfaction of all amounts due or reimbursable to such legal counsels by Mesa or any of its Affiliates in connection with the preparation, negotiation and performance of this Agreement and the consummation of the transactions contemplated by this Agreement.

Section 1.4 <u>Closing Date Extinguishment and/or Assumption of Mesa Obligations; Payment of United Closing Payment Amount</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) At the Closing, if the Mesa Working Capital Surplus is an amount greater than $0, then Mesa shall use all of its cash and cash equivalents (other than the Mesa Representative Expense Fund) to pay off, retire and otherwise extinguish all of the Mesa Obligations until such time as the earlier to occur of (x) the Mesa Working Capital Surplus, after giving effect to the foregoing, is an amount equal to $0 and (y) the extinguishment of all cash and cash equivalents (other than the Mesa Representative Expense Fund). Any remaining cash and cash equivalents will then be applied against any United Debt. At the Closing, Mesa shall pay to the Mesa Representative an amount in cash equal to $\*\*\* (the "<u>Mesa Representative Expense Fund</u>") and the Mesa Representative shall utilize the Mesa Representative Expense Fund solely to perform its obligations hereunder, with the Mesa Representative Expense Fund Remainder (as defined below) to be remitted to United as provided in <u>Section</u> <u>2.1(b)</u>. If, prior to the filing of the Form S-4, there is any circumstance in which the Net Debt Amount is reasonably likely to be less than zero, then the Parties shall discuss in good faith any reasonable and appropriate revisions to the terms and conditions of this <u>Section</u> <u>1.4(a)</u> to address the treatment of any excess cash or cash equivalents on Mesa's balance sheet, but, notwithstanding the foregoing, no Party shall have any obligation under this sentence to agree to any such revisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) [Reserved].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Subject to <u>Section</u> <u>1.7</u>, at the Closing, and following the completion of the transactions contemplated by <u>Section</u> <u>1.4(a)</u>, United shall, at its option, as to each remaining Mesa Obligation as of the Closing (each amount, a "<u>Pre-Closing Mesa Obligation</u>"), and in each case, subject to the receipt of the applicable Mesa Payoff Letters, (i) on behalf of Mesa, directly repay, or cause the repayment of, in each case, in full such Pre-Closing Mesa Obligation (other than in respect of any indemnification obligations that survive termination and/or any intercompany loans by and among Mesa and its subsidiaries); (ii) if permitted by the terms of the applicable Pre-Closing Mesa Obligation, assume in full from Mesa (pursuant to the form of assignment and assumption agreement set forth on <u>Exhibit 3</u>) such Pre-Closing Mesa Obligation; or (iii) pay to NewCo cash in an amount sufficient for NewCo to fully extinguish such Pre-Closing Mesa Obligation (other than in respect of any indemnification obligations that survive termination and/or any intercompany loans by and among Mesa and its subsidiaries); *provided*, that (a) with respect to Mesa Obligations within clause (a), (c) or (d) of the definition thereof, United shall satisfy its obligations under this <u>Section</u> <u>1.4(c)</u> by acting pursuant to <u>clause (iii)</u> of this <u>Section</u> <u>1.4(c)</u>, and (b) United's obligations under this <u>Section</u> <u>1.4(c)</u> shall be reduced on a dollar for dollar basis by (without duplication) both (x) the aggregate Non-Eligible Asset Credit and (y) the Working Capital Surplus; *provided*, *further*, that (a) United shall be permitted to elect, at its sole discretion,

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which portion of Mesa Obligations will be reduced on a dollar for dollar basis pursuant to the foregoing proviso and (b) for the avoidance of doubt, with respect to Mesa Obligations within clause (a) of the definition thereof, United shall be deemed to have satisfied its obligations under this <u>Section</u> <u>1.4(c)</u> by paying to NewCo an amount of cash pursuant to <u>clause (iii)</u> of this <u>Section</u> <u>1.4(c)</u> equal to the Mesa Working Capital Shortfall.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) At the Closing, Mesa shall provide United with any and all books and records relevant to the Mesa Obligations, United Debt or any applicable assets in connection with this Agreement, including the Supporting Documentation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) No later than five (5) Business Days prior to the Closing, Mesa shall provide United with payoff letters (to the extent reasonably available following Mesa's use of reasonable best efforts to obtain the same) from the applicable lenders with respect to all Pre-Closing Mesa Obligations that are the subject of <u>Section</u> <u>1.4(c)</u> together with all termination statements, lien releases, mortgage releases, re-assignments of trademarks, discharges of security interests and other similar discharge or release documents (in recordable form, if applicable) as are reasonably necessary to release as of record all Liens securing any Pre-Closing Mesa Obligation (collectively, the "<u>Mesa Payoff Letters</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) From the date of this Agreement until the Closing or the earlier termination of this Agreement pursuant to <u>Section</u> <u>5.1</u>, Mesa shall, and shall cause each of its Subsidiaries and each of their respective management to use reasonable best efforts to provide cooperation to United as reasonably requested by United in connection with United's obligations hereunder; *provided*, that other than the following clauses (i) through (iii), nothing herein shall require such cooperation to the extent it would interfere unreasonably with the business or operations of Mesa or any of its Subsidiaries, in each case, in Mesa's reasonable judgment. Such cooperation will include (i) assisting in the execution and delivery of, and preparation of, any definitive financing documents (including schedules thereto and the payoff of any existing indebtedness) as may be reasonably requested by United, (ii) furnishing, at least three (3) Business Days in advance of the Closing Date, all documentation and other information required by Governmental Entities under applicable "know your customer" and anti-money laundering rules and regulations, including the U.S.A. Patriot Act of 2001 and/or (iii) providing or obtaining customary evidence of authority, customary officer's certificates, legal opinions and solvency certificates in the form required by United, in each case, as reasonably requested by United.

Section 1.5 <u>Primary Issuance</u>. At the Closing, Mesa shall issue the Shares, in book-entry form, to the Exchange Agent, pursuant to the Escrow Agreement in substantially the form attached hereto as <u>Exhibit 4</u> (the "<u>Escrow Agreement</u>"), which Escrow Agreement the Parties shall execute and deliver to each other at the Closing.

Section 1.6 <u>Termination of Mesa CPA</u>. The Parties acknowledge and agree that Mesa and United have delivered the releases effective as of the Closing in connection with the termination, effective as of the Closing, of the Existing Mesa CPA in that certain Mutual Release executed concurrently with this Agreement and attached to this Agreement as <u>Exhibit 5</u>, and that, at the Closing, Mesa and United will deliver to Republic reasonable evidence of the termination of the Existing Mesa CPA. NewCo shall use good faith efforts to perform or cooperate (as applicable) with respect to any Mesa or Mesa Airlines obligations under the Existing Mesa CPA, in each case to the extent (a) such obligations arise in the normal course of business following such termination due to the actions or inactions of Mesa or Mesa Airlines prior to such termination (including processing insurance claims and cooperating in any litigation or passenger claims but excluding, for the avoidance of doubt, any final reconciliations of pre-Closing underpayments or overpayments, as each of Mesa and United will have waived, pursuant to the releases in the form attached hereto as <u>Exhibit 5</u>, its rights to recoup pre-Closing underpayments or overpayments) and (b) such performance or cooperation would not require NewCo to incur more than *de minimis* out-of-pocket costs. Following the termination of the Existing Mesa CPA at the Closing and until the date that is 180 days following the Closing, and notwithstanding such termination, United shall continue to reimburse to NewCo any and all Pass-Through Costs (as defined in the Existing Mesa CPA) incurred by Mesa and its Affiliates prior to such termination to the extent United would otherwise be obligated to

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reimburse such costs had the Existing Mesa CPA not terminated (but subject in all events to applicable dispute resolution and audit provisions set forth in the Existing Mesa CPA, which provisions shall survive for the purpose of this sentence); *provided, however,* that, notwithstanding the foregoing, this sentence shall not apply as to any costs that have been paid off, released or extinguished by operation of <u>Section</u> <u>1.4(c)</u> of this Agreement.

Section 1.7 <u>Mesa</u><u>'</u><u>s Delivery of Proposed Final Closing Statement and United</u><u>'</u><u>s and</u> <u>NewCo</u><u>'</u><u>s</u> <u>Responses Thereto</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Notice of Merger Closing</u>. Prior to the Closing, Mesa and Republic shall keep United reasonably apprised of the anticipated timeline to the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Pre-Closing Delivery of Appendix C</u>. No later than 21 days following the end of the first completed calendar month following the date of this Agreement and each month thereafter, Mesa shall deliver to United and Republic a draft of <u>Appendix C</u>, calculated as of the end of such calendar month. Without limiting the foregoing, Mesa shall at all times cooperate reasonably and in good faith with United and Republic (including making personnel, records and Supporting Documentation reasonably available) to answer any questions and to provide additional information as to its financial reports, Supporting Documentation and any and all assumptions and components relevant to the foregoing in this <u>Section</u> <u>1.7(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Proposed Final Closing Statement</u>. By no later than 10 Business Days prior to the Closing Date (the "<u>Proposed Final Closing Statement Deadline</u>"), Mesa shall deliver to United and Republic a statement (the "<u>Proposed Final Closing Statement</u>") setting forth, in reasonable detail, Mesa's good faith calculation, as of the end of the Closing Date, of the estimated Net Debt Amount (such calculation, the "<u>Proposed</u> <u>Estimated</u> <u>Net Debt</u> <u>Amount</u>"), together with Supporting Documentation (including the updated Mesa trial balance contemplated by such defined term) relating thereto, including any assumptions made with respect to valuations of assets and resulting proceeds from the sale of such assets; *provided* that the Proposed Estimated Net Debt Amount shall be determined in the format of, and in accordance with the methodology set forth in, <u>Appendix C</u> and the Asset Valuation Methodology. Mesa shall at all times cooperate reasonably and in good faith with United and Republic (including making personnel, records and Supporting Documentation reasonably available) to answer any questions and to provide additional information to United as to any and all assumptions and components relevant to the Proposed Final Closing Statement, including as needed to update or adjust the Proposed Final Closing Statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>United and Republic Response to Proposed Final Closing Statement</u>. By no later than five (5) days following the date on which United and Republic have received the Proposed Final Closing Statement and all additional documentation relating thereto required by <u>Section</u> <u>1.7(c)</u> (such period, the "<u>Pre-Closing Dispute Period</u>"), each of United and Republic shall have the independent right to notify the other Parties in writing as to any objections to Mesa's calculation of any of the amounts reflected on the line items of the Proposed Final Closing Statement that would result in the Net Debt Amount being incorrect either upwards or downwards in an amount that is equal to at least $\*\*\* in the aggregate (such written notice, the "<u>Pre-Closing Dispute Notice</u>" and each such item, a "<u>Pre-Closing Disputed Item</u>"); *provided*, *however*, that in each case United and/or Republic shall notify the other two Parties in writing of each Pre-Closing Disputed Item and specify in reasonable detail the amount in dispute and the basis therefor, together with reasonable supporting materials. During the Pre-Closing Dispute Period, Mesa shall make available or cause to be made available to United and Republic and their respective Representatives (during regular business hours and upon reasonable prior notice), at Mesa's sole cost and expense, (x) the books and records relating to the preparation of the Proposed Final Closing Statement and (y) Mesa's accounting personnel and advisors, in each case, as reasonably requested by United. If each of United and Republic does not deliver a Pre-Closing Dispute Notice prior to the expiration of the Pre-Closing Dispute Period, then (i) the Proposed Final Closing Statement shall be deemed accepted and agreed to by United and Republic (the "<u>Final Closing Statement</u>") and (ii) Mesa's calculation of the Proposed Estimated Net Debt Amount shall be deemed to be the Net Debt Amount for all purposes of this <u>Section</u> <u>1.7</u> and <u>Section</u> <u>5.1(b)(i)</u>, and shall be final and binding upon the Parties for all such purposes, subject to <u>Sections 1.7(g)</u>, <u>(h)</u>, <u>(i)</u> and <u>(j)</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Efforts to Resolve Pre-Closing Disputes Among the Parties</u>. If either United or Republic timely delivers a Pre-Closing Dispute Notice, then for a period of 14 days following such delivery date (or, if each of United and Republic timely delivers a Pre-Closing Dispute Notice, then for a period of 14 days following the later of the two delivery dates) (such period, as applicable, the "<u>Pre-Closing Resolution Period</u>"), the Parties shall use commercially reasonable efforts (including Mesa making its personnel and records reasonably available to United and Republic) to amicably resolve the Pre-Closing Disputed Items and determine the Final Closing Statement and the Net Debt Amount. Any Pre-Closing Disputed Items so resolved by the Parties shall be deemed to be final and correct as so resolved and shall be binding upon the Parties for all purposes of this <u>Section</u> <u>1.7</u> and <u>Section</u> <u>5.1(b)(i)</u>, subject to <u>Sections 1.7(g)</u>, <u>(h)</u>, <u>(i)</u> and <u>(j)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Resolution of Pre-Closing Disputes by Independent Valuation Firm</u>. If the Parties are unable to resolve all of the Pre-Closing Disputed Items during the Pre-Closing Resolution Period, then the Parties shall refer the remaining Pre-Closing Disputed Items (the "<u>Pre-Closing</u> <u>Remaining Items</u>") to an independent valuation firm (an "<u>Independent Valuation Firm</u>") mutually agreed by them. The Parties shall furnish the Independent Valuation Firm, on the date of its engagement by them (the "<u>Pre-Closing</u><u>Engagement Date</u>"), with the Proposed Final Closing Statement, the Pre-Closing Dispute Notice and any Pre-Closing Disputed Items previously resolved by the Parties pursuant to <u>Section</u> <u>1.7(e)</u>. The Parties shall also furnish the Independent Valuation Firm with such other information and documents as the Independent Valuation Firm may reasonably request for purposes of resolving the Pre-Closing Remaining Items and determining the Net Debt Amount. Additionally, within five days after the Pre-Closing Engagement Date, each Party shall provide the Independent Valuation Firm with a written position statement describing in reasonable detail such Party's position regarding the Pre-Closing Remaining Items and such Party's resulting calculation of the Net Debt Amount (copies of which shall concurrently be delivered to the other two Parties). If a Party fails to timely deliver such position statement to the Independent Valuation Firm, the Independent Valuation Firm shall resolve the Pre-Closing Remaining Items solely upon the basis of the information otherwise timely provided to the Independent Valuation Firm in accordance with this <u>Section</u> <u>1.7(f)</u>. Within 15 days after the Pre-Closing Engagement Date, the Independent Valuation Firm shall deliver to the Parties a report specifying its final determination of the Net Debt Amount (which shall be either Mesa's calculation of the Net Debt Amount, or United's calculation of the Net Debt Amount, or Republic's calculation of the Net Debt Amount, but not, under any circumstances, any other calculation of the Net Debt Amount), along with reasonable supporting detail therefor. Such report shall be final, conclusive and binding on the Parties for all purposes of this <u>Section</u> <u>1.7</u> and <u>Section</u> <u>5.1(b)(</u><u>i</u><u>)</u>, subject to <u>Sections 1.7(g)</u>, <u>(h)</u>, <u>(</u><u>i</u><u>)</u> and <u>(j)</u>, and shall not be subject to judicial review. Any delay in delivering such report shall not invalidate such determination or deprive the Independent Valuation Firm of jurisdiction to resolve the Pre-Closing Remaining Items. The costs, fees and expenses of the Independent Valuation Firm shall be shared equally between the two Parties whose proposals were not selected by the Independent Valuation Firm (or, if two Parties submit the same proposal and such proposal is selected by Independent Valuation Firm, then such costs, fees and expenses shall be borne solely by the Party whose proposal was not selected).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Pre-Closing Updates to Net Debt Amount</u>. If, prior to the Closing, Mesa becomes aware at any time following the date on which the Net Debt Amount has been finally determined pursuant to <u>Section</u> <u>1.7(d)</u>, <u>Section</u> <u>1.7(e)</u> or <u>Section</u> <u>1.7(f)</u>, as applicable (such date, the "<u>Net Debt Amount Final Determination Date</u>"), that the finally determined Net Debt Amount is incorrect in an amount in excess of $\*\*\* (either upwards or downwards) due to issues first discovered following the Net Debt Amount Final Determination Date, then Mesa shall be obligated to send the other Parties prompt written notice of the required adjustment to the finally determined Net Debt Amount, together with reasonable detail about such issues and Supporting Documentation relating thereto, including any assumptions made with respect to valuations of assets and resulting proceeds from the sale of such assets, certified by an appropriate officer of such Party. If, prior to the Closing, United or Republic determines in its reasonable discretion that the finally determined Net Debt Amount is incorrect in an amount in excess of $\*\*\* (either upwards or downwards) due to issues first discovered following the Net Debt Amount Final Determination Date, then United or Republic, as applicable, may (but shall not be obligated to) send to the other Parties written notice of the required adjustment to the finally determined Net Debt Amount, together with reasonable detail about such issues and Supporting Documentation relating thereto, including any

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assumptions made with respect to valuations of assets and resulting proceeds from the sale of such assets, certified by an appropriate officer of such Party. Any such notice submitted by a Party pursuant to the prior two sentences shall be referred to herein as a "<u>Net Debt Amount Adjustment Notice</u>." Each Party that receives a Net Debt Amount Adjustment Notice shall have a period of five (5) days to respond with its agreement with such Net Debt Amount Adjustment Notice or with a good faith written notice including any objections to such Net Debt Amount Adjustment Notice, together with reasonable supporting detail and backup; *provided, however,* that, if any such receiving Party does not respond with such written notice by such timeframe, then such receiving Party shall be deemed to have accepted all items in such Net Debt Amount Adjustment Notice and all such items shall be deemed to be incorporated into the finally determined Net Debt Amount. In the case that any Party timely submits any such objection to a Net Debt Amount Adjustment Notice, then, until the date that is 14 days following the date on which all such other Parties have received the Net Debt Amount Adjustment Notice and all additional documentation relating thereto required by this <u>clause (g)</u> (such period, the "<u>Net Debt Amount Adjustment Resolution Period</u>"), the Parties shall use commercially reasonable efforts to cooperate reasonably to resolve the issues raised in the Net Debt Amount Adjustment Notice amicably. Upon any written agreement executed by all Parties as to a Net Debt Amount Adjustment Notice, the agreed items in such Net Debt Amount Adjustment Notice shall be deemed incorporated into the finally determined Net Debt Amount for all purposes of this Agreement. For the avoidance of doubt, this <u>Section</u> <u>1.7(g)</u> (and, if applicable as to any Net Debt Amount adjustment, <u>Section</u> <u>1.7(h)</u>) shall remain available to the Parties until the Closing as to issues first discovered following the Net Debt Amount Final Determination Date, it being understood that this <u>Section</u> <u>1.7(g)</u> may be invoked more than once (but may not be invoked as to any item previously agreed among the Parties).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Resolution of Pre-Closing Updates to Net Debt Amount by Independent Valuation Firm</u>. If the Parties are unable to agree on the updates set forth in the Net Debt Amount Adjustment Notice during the Net Debt Amount Adjustment Resolution Period, then the Parties shall refer the applicable disputed items (the "<u>Net Debt Amount Adjustment Disputed Items</u>") to an Independent Valuation Firm mutually agreed by them. Each Party shall furnish the Independent Valuation Firm, on the date of its engagement by them (the "<u>Second Pre-Closing Engagement Date</u>"), with the Proposed Final Closing Statement, the Pre-Closing Dispute Notice, any Pre-Closing Disputed Items, and any items previously resolved pursuant to <u>Section</u> <u>1.7(g)</u>, as well as the Net Debt Amount Adjustment Notice, and any Net Debt Amount Adjustment Disputed Item. Each applicable Party shall also furnish the Independent Valuation Firm with such other information and documents as the Independent Valuation Firm may reasonably request for purposes of resolving the Net Debt Amount Adjustment Disputed Items and determining the Net Debt Amount. Additionally, within five days after the Second Pre-Closing Engagement Date, each of the Parties shall provide the Independent Valuation Firm with a written position statement describing in reasonable detail such Party's position regarding the Net Debt Amount Adjustment Disputed Item and such Party's resulting calculation of the Net Debt Amount (copies of which shall concurrently be delivered to the other Parties). If a Party fails to timely deliver such position statement to the Independent Valuation Firm, the Independent Valuation Firm shall resolve the Net Debt Amount Adjustment Disputed Item solely upon the basis of the information otherwise timely provided to the Independent Valuation Firm in accordance with this <u>Section</u> <u>1.7(h)</u>. Within 15 days after the Second Pre-Closing Engagement Date, the Independent Valuation Firm shall deliver to the Parties a report specifying its final determination of the Net Debt Amount (which shall be either Mesa's calculation of the Net Debt Amount, or United's calculation of the Net Debt Amount, or Republic's calculation of the Net Debt Amount, but not, under any circumstances, any other calculation of the Net Debt Amount), along with reasonable supporting detail therefor. Such report shall be final, conclusive and binding on the Parties for all purposes of this <u>Section</u> <u>1.7</u> and <u>Section</u> <u>5.1(b)(ii)</u> and shall not be subject to judicial review or (subject to <u>Section</u> <u>1.7(j)</u>) any other form of review. Any delay in delivering such report shall not invalidate such determination or deprive the Independent Valuation Firm of jurisdiction to resolve the Net Debt Amount Adjustment Disputed Items. The costs, fees and expenses of the Independent Valuation Firm shall be shared equally between the two Parties whose proposals were not selected by the Independent Valuation Firm (or, if two Parties submit the same proposal and such proposal is selected by Independent Valuation Firm, then such costs, fees and expenses shall be borne solely by the Party whose proposal was not selected).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Closing Conditional Upon Net Debt Amount Determination and Registration Rights Agreement and Other Shareholder Rights</u>. The Parties acknowledge and agree that the Closing shall be conditioned upon, among other things, (i) the final determination of the Net Debt Amount pursuant to <u>Sections 1.7(c)</u> through <u>(f)</u>, (ii) the agreement by all Parties (or final resolution pursuant to <u>Sections 1.7(g)</u> and <u>(h)</u>) as to any adjustment to the Net Debt Amount submitted pursuant to a Net Debt Amount Adjustment Notice, except that, solely in the case of this <u>clause (ii)</u>, the Closing may occur without the prior agreement by United as to any Net Debt Amount Adjustment Notice submitted by Mesa or Republic to which United timely objects pursuant to <u>Section</u> <u>1.7(g)</u> so long as the Net Debt Amount is not adjusted in any manner by such Net Debt Amount Adjustment Notice, and (iii) NewCo entering into the Registration Rights Agreement with United and granting United the other shareholder rights, if any, required to be granted by <u>Section</u> <u>6.17(b)</u>. If the Closing occurs without each of such conditions being satisfied or without United's express written waiver as to any of such conditions that have not been satisfied, then, notwithstanding anything to the contrary in this Agreement, United shall not be obligated to consummate its obligations arising under this Agreement (including, for the avoidance of doubt, under <u>Section</u> <u>1.4(c)</u>) until, as to each such condition, either such condition is satisfied in full or United's express written waiver is obtained; *provided however* that if, within 30 days following the Closing, each such condition has not either been satisfied or expressly waived by United in writing (such circumstance, the "<u>United Conditions Precedent Failure</u>"), then United's obligations arising under this Agreement shall be deemed null and void.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Post-Closing Settlement of CPA Reconciliation Amount and Mesa Performance Credit Amount</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) By no later than 60 days following the Closing Date (such period, the "<u>Post-Closing</u> <u>Reconciliation</u> <u>and Credit</u> <u>Dispute Period</u>"), United shall have the right to notify the other Parties in writing that it objects to the calculation of the CPA Reconciliation Amount or the Mesa Performance Credit Amount (in each case, as determined pursuant to <u>Sections 1.7(c)</u> through <u>(</u><u>i</u><u>)</u>), as applicable (such written notice, the "<u>Post-Closing Reconciliation and Credit</u> <u>Dispute Notice</u>" and each such item, a "<u>Post-Closing Reconciliation and Credit</u> <u>Disputed Item</u>"); *provided*, *however*, that in each case United shall specify in reasonable detail the amount in dispute and the basis therefor, together with reasonable supporting materials. During the Post-Closing Reconciliation and Credit Dispute Period, NewCo shall make available or cause to be made available to United and its Representatives (during regular business hours and upon reasonable prior notice), at NewCo's sole cost and expense, (x) the books and records relating to the preparation of the CPA Reconciliation Amount and Mesa Performance Credit Amount, as applicable, and (y) NewCo's accounting personnel and advisors, in each case, as reasonably requested by United. If United does not deliver a Post-Closing Reconciliation and Credit Dispute Notice to the Mesa Representative and the other Parties prior to the expiration of the Post-Closing Reconciliation and Credit Dispute Period, then the CPA Reconciliation Amount and the Mesa Performance Credit Amount (in each case, as determined pursuant to <u>Sections 1.7(c)</u> through <u>(</u><u>i</u><u>)</u>) shall be deemed to be the CPA Reconciliation Amount or the Mesa Performance Credit Amount, as applicable, for all purposes of this Agreement (including, <u>Section</u> <u>2.1(b)</u>), and shall be final and binding upon the Parties for all such purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If United timely delivers a Post-Closing Reconciliation and Credit Dispute Notice, then United and the Mesa Representative shall, for a period of 10 days following the date United delivers the Post-Closing Reconciliation and Credit Dispute Notice to the Mesa Representative and the other Parties (such period, the "<u>Post-Closing Resolution Period</u>"), use commercially reasonable efforts to amicably resolve the Post-Closing Reconciliation and Credit Disputed Items and determine the CPA Reconciliation Amount or the Mesa Performance Credit Amount, as applicable. Any Post-Closing Reconciliation and Credit Disputed Items so resolved by United and the Mesa Representative shall be deemed to be final and correct as so resolved and shall be binding upon the Parties for all purposes of this Agreement (including, <u>Section</u> <u>2.1(b)</u>), and the Net Debt Amount shall be adjusted accordingly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) If United and the Mesa Representative are unable to resolve all of the Post-Closing Reconciliation and Credit Disputed Items during the Post-Closing Resolution Period, then such Parties shall refer the remaining Post-Closing Reconciliation and Credit Disputed Items (the "<u>Post-Closing Reconciliation and Credit Remaining Items</u>") to an Independent Valuation Firm mutually agreed by them

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and shall furnish the Independent Valuation Firm, on the date of its engagement by them (the "<u>Post-Closing Reconciliation and Credit Engagement Date</u>"), with the proposed calculations of the CPA Reconciliation Amount or the Mesa Performance Credit Amount, as applicable, the Post-Closing Reconciliation and Credit Dispute Notice and any Post-Closing Reconciliation and Credit Disputed Items previously resolved by such Parties pursuant to <u>Section</u> <u>1.7(j)(ii)</u>. Such Parties shall also furnish the Independent Valuation Firm with such other information and documents as the Independent Valuation Firm may reasonably request for purposes of resolving the Post-Closing Reconciliation and Credit Remaining Items and determining the CPA Reconciliation Amount or the Mesa Performance Credit Amount, as applicable. Additionally, within five days after the Post-Closing NewCo Engagement Date, each of United and the Mesa Representative shall provide the Independent Valuation Firm with a written position statement describing in reasonable detail such Party's position regarding the Post-Closing Reconciliation and Credit Remaining Items and such Party's resulting calculation of the CPA Reconciliation Amount or the Mesa Performance Credit Amount, as applicable (copies of which shall concurrently be delivered to the other Parties). If a Party fails to timely deliver such position statement to the Independent Valuation Firm, the Independent Valuation Firm shall resolve the Post-Closing Reconciliation and Credit Remaining Items solely upon the basis of the information otherwise timely provided to the Independent Valuation Firm in accordance with this <u>Section</u> <u>1.7(j)(iii)</u>. Within 15 days after the Post-Closing Reconciliation and Credit Engagement Date, the Independent Valuation Firm shall deliver to the Parties a report specifying its final determination of the Net Debt Amount (which shall be one of United's calculation of the CPA Reconciliation Amount or the Mesa Performance Credit Amount, as applicable, or the Mesa Representative's calculation of the CPA Reconciliation Amount or the Mesa Performance Credit Amount, as applicable, but not, under any circumstances, any other calculation of the CPA Reconciliation Amount or the Mesa Performance Credit Amount, as applicable), along with reasonable supporting detail therefor. Such report shall be final, conclusive and binding on the Parties for all purposes of this Agreement (including this <u>Section</u> <u>1.7(j)(iii)</u> and <u>Section</u> <u>2.1(b)</u>) and shall not be subject to judicial review. Any delay in delivering such report shall not invalidate such determination or deprive the Independent Valuation Firm of jurisdiction to resolve the Post-Closing Reconciliation and Credit Remaining Items. The costs, fees and expenses of the Independent Valuation Firm be borne solely by the Party whose proposal was not selected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Post-Closing Review of Net Debt Amount as to NewCo</u>. By no later than 60 days following the Closing Date (such period, the "<u>Post-Closing NewCo Dispute Period</u>"), NewCo shall have the right to notify the Mesa Representative in writing that it disagrees with the Net Debt Amount (as adjusted pursuant to any finally determined adjustments pursuant to all applicable provisions in this <u>Section</u> <u>1.7</u>, but excluding from the calculation of Net Debt Amount the NewCo Excluded Items) as to applicable liabilities that are or would be considered Mesa Obligations as of the Closing as to issues that were both (x) first discovered following the Closing and (y) not addressed in the Net Debt Amount (as adjusted pursuant to any finally determined adjustments pursuant to all applicable provisions in this <u>Section</u> <u>1.7</u>, but excluding from the calculation of Net Debt Amount the NewCo Excluded Items) (such written notice, the "<u>Post-Closing NewCo Dispute Notice</u>" and each such item, a "<u>Post-Closing NewCo Disputed Item</u>"); *provided*, *however*, that NewCo shall specify in reasonable detail the amount in dispute and the basis therefor, together with reasonable supporting materials. If NewCo does not deliver a Post-Closing NewCo Dispute Notice to the Mesa Representative prior to the expiration of the Post-Closing NewCo Dispute Period, then the Net Debt Amount (as adjusted pursuant to any finally agreed adjustments pursuant to all applicable provisions in this <u>Section</u> <u>1.7</u>, but excluding from the calculation of Net Debt Amount the NewCo Excluded Items) shall be deemed to be the Net Debt Amount for all purposes of <u>Section</u> <u>2.1(c)</u>, and shall be final and binding upon the Parties for all such purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Efforts to Resolve Post-Closing Disputes Among NewCo and Mesa Representative</u>. If NewCo timely delivers a Post-Closing NewCo Dispute Notice, then the Mesa Representative and NewCo shall, for a period of 10 days following the date NewCo delivers the Post-Closing NewCo Dispute Notice to the Mesa Representative (such period, the "<u>Post-Closing NewCo Resolution Period</u>"), use commercially reasonable efforts to amicably resolve the Post-Closing NewCo Disputed Items and determine the Net Debt Amount (but excluding from the calculation of Net Debt Amount the NewCo Excluded Items). Any Post-Closing NewCo Disputed Items

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so resolved by the Mesa Representative and NewCo shall be deemed to be final and correct as so resolved and shall be binding upon the Parties for all purposes of this <u>Section</u> <u>1.7(l)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Resolution of Post-Closing Disputes by Independent Valuation Firm</u>. If the Mesa Representative and NewCo are unable to resolve all of the Post-Closing NewCo Disputed Items during the Post-Closing NewCo Resolution Period, then such Parties shall refer the remaining Post-Closing NewCo Disputed Items (the "<u>Post-Closing NewCo Remaining Items</u>") to an Independent Valuation Firm mutually agreed by them and shall furnish the Independent Valuation Firm, on the date of its engagement by them (the "<u>Post-Closing NewCo Engagement Date</u>"), with the Proposed Final Closing Statement, the Post-Closing NewCo Dispute Notice and any Post-Closing NewCo Disputed Items previously resolved by such Parties pursuant to <u>Section</u> <u>1.7(l)</u>. Such Parties shall also furnish the Independent Valuation Firm with such other information and documents as the Independent Valuation Firm may reasonably request for purposes of resolving the Post-Closing NewCo Remaining Items and determining the Net Debt Amount (but excluding from the calculation of Net Debt Amount the NewCo Excluded Items). Additionally, within five days after the Post-Closing NewCo Engagement Date, each of the Mesa Representative and NewCo shall provide the Independent Valuation Firm with a written position statement describing in reasonable detail such Party's position regarding the Post-Closing NewCo Remaining Items and such Party's resulting calculation of the Net Debt Amount (but excluding from the calculation of Net Debt Amount the NewCo Excluded Items) (copies of which shall concurrently be delivered to the other Parties). If a Party fails to timely deliver such position statement to the Independent Valuation Firm, the Independent Valuation Firm shall resolve the Post-Closing NewCo Remaining Items solely upon the basis of the information otherwise timely provided to the Independent Valuation Firm in accordance with this <u>Section</u> <u>1.7(m)</u>. Within 15 days after the Post-Closing NewCo Engagement Date, the Independent Valuation Firm shall deliver to NewCo and the Mesa Representative a report specifying its final determination of the Net Debt Amount (but excluding from the calculation of Net Debt Amount the NewCo Excluded Items) (which shall be one of the Mesa Representative's calculation of the Net Debt Amount (but excluding from the calculation of Net Debt Amount the NewCo Excluded Items) or NewCo's calculation of the Net Debt Amount (but excluding from the calculation of Net Debt Amount the NewCo Excluded Items), but not, under any circumstances, any other calculation of the Net Debt Amount (but excluding from the calculation of Net Debt Amount the NewCo Excluded Items)), along with reasonable supporting detail therefor. Such report shall be final, conclusive and binding on the Parties for all purposes of this <u>Section</u> <u>1.7(m)</u> and shall not be subject to judicial review. Any delay in delivering such report shall not invalidate such determination or deprive the Independent Valuation Firm of jurisdiction to resolve the Post-Closing NewCo Remaining Items. The costs, fees and expenses of the Independent Valuation Firm shall be borne solely by the Party whose proposal was not selected by the Independent Valuation Firm.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Certain Material Breaches</u>. Without limitation of any other material obligation set forth in this Agreement, the Parties acknowledge and agree that any failure by Mesa to provide any of the material books and records referenced in <u>Section</u> <u>1.7(a)</u> through <u>(j)</u> or to timely deliver the Proposed Final Closing Statement, in each case to the extent not cured within 10 days following written notice from United of such failure, shall be considered a material breach giving United a right to terminate this Agreement pursuant to <u>Section</u> <u>5.1(b)(iii)</u>, and, in the case of any such material breach where United does not elect to terminate this Agreement pursuant to <u>Section</u> <u>5.1(b)(iii)</u> as to such material breach, United's obligations under <u>Section</u> <u>1.4</u> shall be delayed on a day-for-day basis until the date on which both of the following conditions have been satisfied: (x) such material breach has been cured and (y) the provisions in <u>Section</u> <u>1.7(a)</u> through <u>(j)</u> (including associated time periods, including as needed to resolve any disputes) have been complied with *mutatis mutandis* following the date of such material breach.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Illustrative Examples</u>. Attached hereto as <u>Schedule 1.7(o)</u>, for illustrative purposes only, are two example calculations illustrating the operation of <u>Sections 1.7</u> and <u>2.1</u>. In the event of any conflict between such schedule and the other terms and conditions of this Agreement, the other terms and conditions of this Agreement shall control.

Section 1.8 <u>UST Loan</u>. From the date hereof to the Proposed Final Closing Statement Deadline, Mesa shall be permitted to engage in negotiations with Treasury regarding, and to enter into (or cause its applicable

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Affiliates to enter into), a binding definitive agreement with Treasury providing for a reduction in the amounts due under the UST Loan; *provided,* that (i) Mesa shall keep United and Republic reasonably informed of the status of such negotiations and (ii) the consent of each of United and Republic shall be required as to amendments, modifications, waivers or other changes to the UST Loan other than those that solely provide for a reduction in the amounts due under the UST Loan. Notwithstanding anything to the contrary in this Agreement, nothing in this <u>Section</u> <u>1.8</u> shall delay the Closing.

Section 1.9 <u>Archer Agreements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Mesa shall, and shall cause its Affiliates to, use reasonable best efforts to sell, assign or otherwise transfer (whether or not for consideration) all of the obligations, liabilities, duties, rights and similar undertakings of Mesa and its Affiliates under the Archer Agreements (collectively, the "<u>Archer Rights and Obligations</u>", which, for the avoidance of doubt, include without limitation any and all equity interests issued upon exercise of warrants or issuable upon the vesting of one or more tranches of warrants) to one or more third Persons (other than any "related person" (as such term is used under Item 404 of Regulation S-K) of Mesa or any of its Affiliates, except that none of United or United's Affiliates shall be excluded pursuant to this parenthetical) (each, a "<u>Buyer</u>") as promptly as reasonably practicable following the date of this Agreement (and in any event prior to the Archer Deadline (as defined below)) in a manner that causes all of the Archer Rights and Obligations to be assumed by one or more Buyers and for there to be no further obligations, duties, liabilities or similar undertakings of Mesa or any of its Affiliates (including, after the Closing, NewCo and its Affiliates) thereunder, pursuant to definitive transaction documentation that Mesa has presented to Republic in final form prior to the execution thereof and which has been approved by Republic in its reasonable discretion (such approval not to be unreasonably withheld, conditioned or delayed); *provided, however*, that, notwithstanding the foregoing, Mesa shall in all events be entitled to retain the Warrants exercisable pursuant to Mesa Condition III (as defined in the Archer Assignment and Assumption Agreement) in respect of the Mesa Condition III Shares (as defined in the Archer Assignment and Assumption Agreement) (the "<u>Certification Archer Warrants</u>") beyond the Archer Deadline and sell such Certification Archer Warrants prior to the Proposed Final Closing Statement Deadline, provided there are no further obligations, duties, liabilities or similar undertakings of Mesa or any of its Affiliates (including, after the Closing, NewCo and its Affiliates) thereunder, pursuant to definitive transaction documentation that Mesa has presented to Republic in final form prior to the execution thereof and which has been approved by Republic in its reasonable discretion (such approval not to be unreasonably withheld, conditioned or delayed). For the avoidance of doubt (and without limiting the foregoing), except as to the Certification Archer Warrants as referenced in the proviso in the immediately preceding sentence, Mesa's obligations under this <u>Section</u> <u>1.9(a)</u> require that all, but not less than all, of the Archer Rights and Obligations are sold, assigned or otherwise transferred to one or more Buyers by the Archer Deadline, it being understood, for example, that Mesa shall be prohibited from disposing aircraft purchase obligations while retaining rights as to any warrant to purchase shares of Archer (or vice versa), and any Archer Rights and Obligations that are not sold shall be subject to the disposition set forth in <u>Section</u> <u>1.9(b)</u>. In furtherance of the foregoing, United shall use commercially reasonable efforts to facilitate the disposition of the Archer Rights and Obligations as described above, but United shall not be required to incur any out-of-pocket expenditures pursuant to this sentence. Without limiting any of United's or Republic's rights or remedies in respect of any breach by Mesa caused by Mesa selling, assigning or otherwise transferring some, but not all, of the Archer Rights and Obligations, in the case of any such breach, Mesa shall be obligated to remit to United any and all proceeds from each such disposition (except as to the Certification Archer Warrants, which may be sold as referenced above and for which the proceeds of sales may be used by Mesa to satisfy Mesa Obligations prior to the Closing) as promptly as practicable (all such proceeds, the "<u>Archer Proceeds</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If, as of the day that is sixty (60) days following the date hereof (the "<u>Archer Deadline</u>"), Mesa has not consummated the disposition of all of the Archer Rights and Obligations as described in <u>Section</u> <u>1.9(a)</u> (other than the Certification Archer Warrants, which are governed by the second proviso in this sentence), then Mesa and United will use commercially reasonable efforts to cause all of the remaining Archer Rights and Obligations (other than the Certification Archer Warrants, which are governed by the second proviso in this sentence) to be

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terminated or, alternatively, to consummate the assumption by United of all, but not less than all, of the remaining Archer Rights and Obligations (other than the Certification Archer Warrants) as of the Archer Deadline as promptly as reasonably practicable following such Archer Deadline (and, in any event, by no later than 30 days after the Archer Deadline), in either such case such that there are no further obligations, duties, liabilities or similar undertakings of Mesa or any of its Affiliates (including, after the Closing, NewCo and its Affiliates) thereunder, and in either such case pursuant to definitive transaction documentation that Mesa and United have presented to Republic in final form prior to the execution thereof and which has been approved by Republic in its reasonable discretion (such approval not to be unreasonably withheld, conditioned or delayed) (the terminations or assumptions (as applicable) contemplated by this sentence (including as such sentence is read to encompass the Certification Archer Warrants as provided in the second proviso in this sentence) being the "<u>Archer Condition</u>"); *provided* that neither Mesa nor United shall be required to deliver any additional consideration to each other for such assumption (it being understood for the avoidance of doubt that the overall consideration delivered in this Agreement is good, valid and sufficient for the covenants set forth in this <u>Section</u> <u>1.9(b)</u>); *provided, further*, that, solely as to the Certification Archer Warrants, all of the terms and conditions of this sentence shall apply except that: (i) the words "If, as of the day that is sixty (60) days following the date hereof (the "<u>Archer Deadline</u>")" in this sentence shall be replaced with the words "If, as of the Proposed Final Closing Statement Deadline"; (ii) the second, third and fourth references to "Archer Deadline" in this sentence shall be replaced with references to "Proposed Final Closing Statement Deadline"; and (iii) the reference to "30 days" in this sentence shall be replaced with a reference to "5 days". For the avoidance of doubt, if Mesa sells the Certification Archer Warrants to a Buyer (other than United) prior to the Proposed Final Closing Statement Deadline, then United's assumption of the remaining Archer Rights and Obligations will exclude the Certification Archer Warrants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Mesa shall not, and shall cause its Affiliates not to, enter into or otherwise become bound by (i) any Contracts with Archer or any of Archer's Affiliates (whether or not constituting Archer Agreements) or (ii) enter into any amendments, modifications or supplements to any of the Archer Agreements in effect as of the date of this Agreement, in each case of the preceding clauses (i) and (ii), without United's and Republic's prior written consent; *provided, however*, such consent shall not be required in the event Mesa enters into an agreement with Archer that amends the Certification Archer Warrants for which both of the following conditions have been satisfied: (a) the sole purpose and effect is accelerating the vesting of such Warrants and (b) Mesa provides advance notice of the execution and delivery of such agreement to United and Republic, together with a true, correct and complete copy of such agreement (or, if such advance notice is not reasonably practicable, Mesa provides such notice and copy to United and Republic as promptly as practicable following the execution and delivery of such agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) From and after the Closing, and subject to <u>Section</u> <u>6.19</u>, United shall indemnify, defend and hold harmless the NewCo Indemnitees (as defined in <u>Section</u> <u>2.2(c)</u>) from and against all Losses (as defined in <u>Section</u> <u>2.2(c)</u>) to the extent arising out of, relating to or resulting from the failure of the Archer Condition to have become satisfied as of the Closing or any United Triggering Event (whether such United Triggering Event occurred before the date hereof, between the date hereof and the Closing Date, or from and after the Closing Date), including all Losses to the extent arising out of, relating to or resulting from any remaining Archer Rights and Obligations, including any obligation of NewCo or any of its Affiliates to purchase or otherwise acquire any aircraft (whether or not the subject of a United Triggering Event, and treating as "Losses" the gross purchase price paid for such aircraft, without any offset or netting on account of the value of the aircraft being purchased, along with all costs incurred by NewCo in connection with the purchase of the aircraft, spare parts, equipment and the like and all maintenance, storage and similar costs) or to otherwise make any expenditures in connection therewith (any claim subject to indemnification as set forth in this <u>Section</u> <u>1.9(d)</u>, an "<u>Archer Indemnified Claim</u>"). In such instance, (x) from and after the Closing, NewCo and United shall use commercially reasonable efforts to cause the Archer Condition to become satisfied following the Closing, (y) as to any aircraft that NewCo purchases under the Archer Rights and Obligations, NewCo shall use commercially reasonable efforts to cause such aircraft to be transferred to United for no additional consideration as promptly as reasonably practicable (or, if such transfer cannot be practically effected promptly, then NewCo shall use best efforts to provide United with

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the exclusive use and enjoyment of such aircraft at United's sole cost and expense until such transfer can be effected), and (z) any reasonable and documented costs that NewCo incurs in connection therewith (including any such costs that NewCo incurs in transferring to United aircraft that NewCo was required to purchase under the Archer Rights and Obligations) will be treated as indemnifiable Losses under this <u>Section</u> <u>1.9(d)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) For the avoidance of doubt, none of the terms or conditions of this <u>Section</u> <u>1.9</u> shall delay the Closing and the Archer Condition shall not constitute a condition to the Closing.

Section 1.10 <u>Malta</u>. Promptly following the date hereof, Mesa shall use commercially reasonable efforts to ensure that, as of the Proposed Final Closing Statement Deadline, (i) neither Mesa nor any of its Affiliates is any longer an equityholder in Flite Holdings Limited, a company incorporated in the Republic of Malta ("<u>Flite</u>"), or any of its Affiliates, and (ii) Mesa and its Affiliates have terminated its and their participation in the Malta JV Shareholders' Agreement and all related agreements (including, but not limited to, the Malta Agreements) and commercial or other arrangements with Flite, its Affiliates and its and their respective direct or indirect equityholders (and prior to execution of any such agreements, Mesa shall present to Republic the final forms of such agreements for Republic's review and approval), in each case of clauses (i) through (ii), in full and without any further obligations, duties, liabilities or similar undertakings of Mesa or any of its Affiliates (clauses (i) through (ii) together, the "<u>Malta Condition</u>") and, in taking action to fulfill the Malta Condition, neither Mesa nor any of its Affiliates shall make any payments of any fees, expenses, "profit or revenue sharing" payments or other consideration (including increased or accelerated payments) or concede anything of monetary or non-monetary value to any Person, including Flite, its Affiliates or its and their respective direct or indirect equityholders; <u>provided</u>, <u>however</u>, that nothing in this sentence shall preclude Mesa from agreeing to forgive indebtedness owing to Mesa pursuant to prior loans from Mesa to Flite or any of its Affiliates or agreeing to sell its equity interest in Flite for an amount less than the amount invested in Flite by Mesa.

#### ARTICLE II
<u>POST-CLOSING TRANSACTIONS RELATED TO MESA OBLIGATIONS; ASSET SALES</u>

Section 2.1 <u>Disposition of the Shares</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Mesa Representative Expense Fund Remainder</u>. By no later than five Business Days prior to the Share Settlement Date (as defined below), the Mesa Representative shall deliver to United and NewCo a good faith written estimate of the amount of cash, if any, that will be remaining in the Mesa Representative Expense Fund following the completion of the Mesa Representative's responsibilities under this Agreement (any such remainder, the "<u>Mesa Representative Expense Fund Remainder</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Disposition of Shares to United</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If the Net Debt Amount as finally determined pursuant to <u>Sections 1.7(c)</u> through <u>(j)</u> is a positive number (such positive number, the "<u>United Entitlement</u>"), then, no later than two Business Days following the later of (x) the date that is the 60th calendar day following the Closing and (y) the date that the Net Debt Amount is finally determined pursuant to <u>Sections 1.7(c)</u> through <u>(j)</u> (such later date, the "<u>Share Settlement Date</u>"), United shall deliver to the Mesa Representative and NewCo a statement (the "<u>United Notice</u>") setting forth the number of Shares (the "<u>United Shares</u>") whose aggregate dollar value (based on the NewCo Stock Value), when combined with the aggregate dollar value of the dividends to date on the United Shares (whether accrued and paid or accrued but unpaid), is equal to the United Entitlement; *provided*, that if the aggregate dollar value (based on the NewCo Stock Value) of all of the Shares, when combined with the aggregate dollar value of the dividends to date on all of the Shares (whether accrued and paid or accrued but unpaid), is less than the United Entitlement, then all of the Shares will constitute United Shares.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Mesa Representative and NewCo shall have two Business Days to review and comment on the United Notice. Absent an error in the calculation of the number of United Shares, the United Notice shall become final and binding on the Parties following the end of such two Business Day period, and at the conclusion of such two Business Day period, (1) United and the Mesa Representative shall deliver a joint written instruction to the Exchange Agent (in its capacity as the escrow agent under the Escrow Agreement) to transfer the United Shares (along with all associated dividends) to United and (2) the Mesa Representative shall remit to United, by wire transfer of immediately available funds, cash in an amount equal to the Mesa Representative Expense Fund Remainder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Mesa Representative, United and the Exchange Agent shall reasonably cooperate with each other to consummate such transfers referenced in this <u>Section</u> <u>2.1(b)</u>, including by developing reasonable procedures with respect thereto and completing all required documentation with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Disposition of Shares to NewCo</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If (A) there are any remaining Shares following the completion of the transactions contemplated by <u>Section</u> <u>2.1(b)</u> and (B) the sum of (x) the Malta Amount *plus* (y) the Net Debt Amount as finally determined pursuant to <u>Sections 1.7(k)</u> through <u>(m)</u> (but excluding from the calculation of Net Debt Amount the NewCo Excluded Items) is greater than the Net Debt Amount determined in accordance with <u>Sections 1.7(c)</u> through <u>(</u><u>i</u><u>)</u> (but excluding from the calculation of Net Debt Amount the NewCo Excluded Items) (such excess, the "<u>NewCo</u> <u>Entitlement</u>"), then, by no later than two Business Days following the later of (A) the disbursement of United Shares pursuant to <u>Section</u> <u>2.1(b)(ii)</u> and (B) the finalization of the Net Debt Amount pursuant to <u>Section</u> <u>1.7(j)</u> through <u>(m)</u>, NewCo shall deliver to the Mesa Representative a statement (the "<u>NewCo</u> <u>Notice</u>") setting forth the number of Shares (the "<u>NewCo</u> <u>Shares</u>") whose aggregate dollar value (based on the NewCo Stock Value), when combined with the aggregate dollar value of the dividends to date on the NewCo Shares (whether accrued and paid or accrued but unpaid), is equal to the NewCo Entitlement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Mesa Representative shall have two Business Days to review and comment on the NewCo Notice. Absent an error in the calculation of the number of NewCo Shares, the NewCo Notice shall become final and binding on the Parties following the end of such two Business Day period, and at the conclusion of such two Business Day period, NewCo and the Mesa Representative shall deliver a joint written instruction to the Exchange Agent (in its capacity as the escrow agent under the Escrow Agreement) to transfer the NewCo Shares (along with all associated dividends) to NewCo. The Mesa Representative, NewCo and the Exchange Agent shall reasonably cooperate with each other to consummate such transfer referenced in the immediately preceding sentence, including by developing reasonable procedures with respect thereto and completing all required documentation with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Disposition of Shares to Pre-Merger Mesa Shareholders</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If there are any remaining Shares following the completion of the transactions contemplated by <u>Sections 2.1(b)</u> and <u>2.1(c)</u> (any such remaining Shares, the "<u>Remaining Shares</u>"), then NewCo shall promptly deliver a written instruction to the Exchange Agent (in its capacity as the escrow agent under the Escrow Agreement) to transfer the Remaining Shares (along with all associated dividends) to the Pre-Merger Mesa Shareholders, on a pro rata basis in accordance with their respective holdings of shares of Mesa Common Stock as of immediately prior to the Effective Time. NewCo, the Mesa Representative and the Exchange Agent shall reasonably cooperate with each other to consummate such transfer, including by developing reasonable procedures with respect thereto and completing all required documentation with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) No certificate or scrip representing fractional shares of Mesa Common Stock shall be issued to any Pre-Merger Mesa Shareholder in accordance with this <u>Section</u> <u>2.1(d)</u>. All fractional shares that a Pre-Merger Mesa Shareholder would be otherwise entitled to receive under this <u>Section</u> <u>2.1(d)</u> shall be aggregated and in lieu of any such fractional shares, each Pre-Merger Mesa Shareholder shall be entitled to

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receive an amount in cash, without interest, rounded down to the nearest cent, equal to the product of such fractional amount otherwise payable to such Pre-Merger Mesa Shareholder and the NewCo Stock Value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Determination of Pre-Merger Mesa Shareholders</u>. The Mesa Representative shall work in good faith to identify those Persons who, as of immediately prior to the Effective Time, held shares of Mesa Common Stock, and the Mesa Representative shall as promptly as practicable after the Effective Time deliver to United and NewCo a final list of all such Persons (all such Persons on such final list, the "<u>Pre-Merger Mesa Shareholders</u>") that shall include, as to each such Person, their respective holdings of shares of Mesa Common Stock, together with a written notice signed by a duly authorized representative of the Mesa Representative stating that such list of Pre-Merger Mesa Shareholders constitutes, to the best of such representative's knowledge, a true and correct list of all such Persons and their respective holdings of Mesa Common Stock as of immediately prior to the Effective Time. United and NewCo shall have the right to rely conclusively on such list of Pre-Merger Mesa Shareholders provided to them for all purposes of this Agreement, without any obligation of independent review or confirmation.

Section 2.2 <u>United Debt Forgiveness; No Further Recourse for United Beyond the United Shares; Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Upon the later to occur of (x) the Closing and (y) the finalization of the Net Debt Amount pursuant to <u>Sections 1.7(c)</u> through <u>(j)</u>, United shall forgive, extinguish and otherwise release all of the United Debt and all obligations thereunder of United, Mesa and their respective Affiliates (including, from and after the Closing, NewCo and its Affiliates) shall be permanently terminated and released.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except to the extent provided otherwise in <u>Section</u> <u>2.3</u>, United hereby acknowledges and agrees that (x) its entitlement to receive the United Shares, as and to the extent provided under <u>Section</u> <u>2.1(b)</u>, shall be United's and its Affiliates' sole and exclusive source of recovery for any and all claims that it has or may have in respect of the Mesa Obligations or any liabilities or obligations that constitute United Debt, and (y) neither it nor any of its Affiliates shall have any entitlement to receive cash in order to satisfy any Mesa Obligations or any liabilities or obligations that constitute United Debt, including any cash proceeds from Pre-Closing Assets Sales (as defined below).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Subject to <u>Section</u> <u>6.19</u>, from and after the Closing, United shall indemnify, defend and hold harmless NewCo, its Affiliates and its and their respective directors, officers, employees, agents, successors and assigns (collectively, "<u>NewCo</u> <u>Indemnitees</u>") from and against any and all losses, damages, liabilities, deficiencies, claims, interest, awards, judgments, penalties, costs and expenses (including attorneys' fees, costs and other out-of-pocket expenses incurred in investigating, preparing or defending the foregoing) (collectively, "<u>Losses</u>") to the extent arising out of, relating to or resulting from any claim or cause of action (whether direct, class, derivative or otherwise) by or on behalf of any Pre-Merger Mesa Shareholder with respect to <u>Section</u> <u>2.1</u> or <u>Section</u> <u>2.2</u>, in each case except to the extent any such claim or cause of action arises from (i) the issuance and disbursement of the NewCo Shares pursuant to <u>Section</u> <u>2.1(c)</u> or (ii) NewCo's breach of this Agreement, bad faith or fraud (any claim subject to indemnification as set forth in this <u>Section</u> <u>2.2(c)</u>, a "<u>Shareholder Indemnified Claim</u>"). The Parties agree that the immediately preceding indemnity is not intended to, and shall not be construed to, indemnify NewCo Indemnitees for any claim or cause of action arising with respect to (x) the Merger (including but not limited to any claim or cause of action arising from disclosures relating to the Merger or the exercise of fiduciary duties relating to the Merger) or (y) other than in respect of <u>Section</u> <u>2.1</u> or <u>Section</u> <u>2.2</u>, the terms of this Agreement or the consideration received in connection therewith by any person.

Section 2.3 <u>Asset Sales</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) \*\*\* Mesa shall use its reasonable best efforts to sell to, or to cause one of its Affiliates to sell to, one or more third Persons (other than any "related person" (as such term is used under Item 404 of Regulation S-K) of Mesa or any of its Affiliates) all of (i) the Eligible Assets, pursuant to one or more binding definitive

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purchase agreements (whether entered into prior to the execution of this Agreement or entered into following the execution of this Agreement), <u>provided</u>, that each such binding definitive purchase agreement that (A) was entered into prior to the execution of this Agreement and was not made available to Republic at least ten Business Days prior to the execution of this Agreement or (B) is entered into following the execution of this Agreement, in each such case, shall be in form and substance customary for transactions of that nature and shall otherwise satisfy all of the Asset Sale Conditions, and (ii) subject to <u>Section 1.9</u>, all of the Equity Interests, pursuant to one or more binding definitive purchase agreements (whether entered into prior to the execution of this Agreement or entered into following the execution of this Agreement), <u>provided</u>, that (A) each such binding purchase agreement shall impose no post-closing obligations whatsoever on United, Mesa, Republic, NewCo or any of their respective Affiliates and shall otherwise be subject to the prior written consent of Republic (not to be unreasonably withheld, conditioned or delayed), (B) \*\*\* (C) any sales of the Archer Rights and Obligations must be completed in compliance with <u>Section 1.9</u> and (D) any sales of the Flite Holding Shares must be completed in compliance with <u>Section 1.10</u> (any such sales, collectively, the "<u>Pre-Closing Assets Sales</u>"). For purposes of clarity, the Parties acknowledge and agree that Republic shall have no consent rights with respect to the purchase prices for the Eligible Assets. Mesa shall apply all proceeds from any and all Pre-Closing Assets Sales to the repayment of outstanding debt balance related to such Eligible Assets and any and all costs, obligations, losses, premiums, penalties or expenses required to be incurred or suffered in connection with terminating, unwinding, or reducing obligations thereunder, and, to the extent there are any surplus proceeds, to satisfy any remaining Mesa Obligations. Mesa shall promptly provide reasonable updates and documentation to each of United and Republic upon the achievement of any material milestones as to the progress on the Pre-Closing Assets Sales (such as, without limitation, initial agreements with third Persons, executed letters of intent and other preliminary agreements, agreement on final terms of binding definitive purchase agreements, executed binding definitive purchase agreements, material developments in negotiations, and any exercises by any party of material rights under any of the foregoing agreements), and, in any event, shall provide prompt written notice to each of United and Republic following the execution and delivery of binding definitive purchase agreements with respect to Pre-Closing Assets Sales and both prior to and following the consummation of each Pre-Close Assets Sale, in each case together with any and all documentation and instruments executed and delivered in connection therewith. In furtherance of the foregoing, Mesa shall use reasonable best efforts to seek, from any and all third parties bound or contemplated to be bound by preliminary or definitive documentation for Pre-Closing Assets Sales, consents to disclose all information as to Pre-Closing Assets Sales and the terms and conditions thereof to United and Republic. Notwithstanding anything to the contrary in this Agreement, during the period from the Proposed Final Closing Statement Deadline through the Closing, Mesa shall not, and shall cause its Affiliates not to, sell, pledge, convey, abandon, allow to lapse or expire, fail to renew or maintain, dispose of (by merger, consolidation, division, operation of Law or otherwise), transfer, lease, license or subject to any Lien, other than any Permitted Lien within the scope of clause (a) or (b) of the definition thereof, any Eligible Assets that are not, as of the Proposed Final Closing Statement Deadline, subject to a binding definitive purchase agreement providing for the sale thereof, nor agree, resolve, authorize or enter into any Contract or otherwise make any commitment, in each case to do any of the foregoing; *provided*, that Mesa and its Affiliates may consummate sales of Eligible Assets that are, as of the Proposed Final Closing Statement Deadline, subject to a binding definitive purchase agreement providing for the sale thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding anything to the contrary in this Agreement, prior to the Closing, Mesa shall not, and shall cause its Affiliates not to, sell, pledge, convey, abandon, allow to lapse or expire, fail to renew or maintain, dispose of (by merger, consolidation, division, operation of Law or otherwise), transfer, lease, license or subject to any Lien, other than any Permitted Lien within the scope of clause (a) or (b) of the definition thereof, any Non-Eligible Assets, nor agree, resolve, authorize or enter into any Contract or otherwise make any commitment, in each case to do any of the foregoing; *provided*, that the foregoing restriction shall not apply to Equity Interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Mesa shall use its reasonable best efforts to ensure that, as of the Proposed Final Closing Statement Deadline, there is a Qualifying Appraisal with respect to each of the following: (i) Class A Eligible Assets, and (ii) Appraisal ERJ Part Assets.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No later than five (5) days following the final determination of the Net Debt Amount pursuant to <u>clauses (c)</u> through <u>(</u><u>i</u><u>)</u> of <u>Section</u> <u>1.7</u> (the "<u>Election Deadline</u>"), as to each Eligible Asset that is not, as of the Proposed Final Closing Statement Deadline, subject to a binding definitive purchase agreement providing for the sale therefor (each, a "<u>Transferable Asset</u>"), United shall elect at its sole and exclusive discretion by written notice delivered to Mesa and Republic either to (i) engage the Liquidator, pursuant to customary documentation and other customary terms and conditions (including the satisfaction of each of the Asset Sale Conditions (other than clause (e) therein), applying such definition to this <u>Section</u> <u>2.3(d)</u> *mutatis mutandis* and treating the "buyer" as the Liquidator), which documentation shall be provided to Republic within a reasonable time after the execution thereof (and in any event by no later than two Business Days prior to the Closing Date), for the purpose of acquiring title from Mesa or NewCo (as applicable) of, at or promptly after the Closing, such Transferable Assets, or (ii) acquire title from Mesa or NewCo (as applicable) at or promptly after the Closing to such Transferable Assets. For the avoidance of doubt, (a) all Transferable Assets must, at United's direction, either be transferred to United pursuant to <u>Section</u> <u>2.3(e)</u> or be transferred to the Liquidator pursuant to <u>Section</u> <u>2.3(e)</u>; and (b) with respect to any Transferable Assets for which United has failed to make an affirmative election by the Election Deadline, United shall be deemed to have elected to acquire title from Mesa or NewCo (as applicable) of such Transferable Assets, as contemplated by clause (ii) immediately above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Promptly following receipt of the notice specified in <u>Section</u> <u>2.3(d)</u>, Mesa or NewCo, as applicable, shall promptly thereafter effectuate the transfer of such Transferable Assets to United or the Liquidator, as applicable. The Liquidator shall cause any and all proceeds received by the Liquidator resulting from any and all subsequent transfers of such Transferable Assets to be paid to or at the direction of United. From time to time following the Closing, the parties shall execute, acknowledge and deliver all reasonable further conveyances, notices or similar instruments, and shall take such reasonable actions as may be necessary or appropriate, to make effective the foregoing transactions as reasonably requested by United or the Liquidator, and United shall promptly reimburse NewCo for all of its reasonable and documented out-of-pocket costs and expenses incurred in connection with NewCo's actions under <u>Section</u> <u>2.3(d)</u> and this <u>Section</u> <u>2.3(e)</u> and all transfer taxes to be borne by NewCo resulting from the sale of assets to United or the Liquidator, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Except as otherwise provided in <u>Section 2.3(g)</u> below, from and after the Closing, NewCo shall use commercially reasonable efforts to sell or to cause to be sold, to one or more third Persons, all of the Eligible Assets that are subject to binding agreements for sale (whether or not constituting Qualifying Agreements); *provided* that NewCo shall promptly (and in no event later than seven days after the closing of each such sale) remit to United any and all proceeds that it receives from such sales, in each case net of NewCo's reasonable and documented out-of-pocket costs and expenses incurred in connection with NewCo's actions under this <u>Section</u> <u>2.3(f)</u> and all transfer taxes to be borne by NewCo resulting from such sales (such net sales proceeds, solely in the case of sales of Class B Eligible Assets, the "<u>Post-Closing Class</u> <u>B Eligible Assets Sales Proceeds</u>"); *provided*, *further*, that notwithstanding the immediately preceding proviso, with respect to any binding agreement providing for the sale of an Eligible Asset, NewCo shall not be required to remit to United any proceeds that it receives from such sale unless and until any and all purchase price reconciliation or refund of purchase price provisions (or other similar provisions) contained in such binding agreement, if applicable, have been fully and finally resolved in accordance with the terms of such binding agreement. NewCo shall promptly provide reasonable updates and documentation to United upon the achievement of any and all material milestones as to the progress on such sales (such as, without limitation, any exercises by any party of material rights under any applicable sale agreements), and, in any event, shall provide prompt written notice to United following the consummation of each sale, in each case together with any and all documentation and instruments executed and delivered in connection therewith. In furtherance of the foregoing, NewCo shall use commercially reasonable efforts to seek, from any and all third parties bound by sale agreements, consents to disclose all information as to such sales and the terms and conditions thereof to United; *provided*, that NewCo shall not be required to pay any fee, concession or similar payment to any such Person not expressly contemplated by the applicable sale agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) As to any Eligible Asset that is subject to a binding agreement for the sale therefor as of the Closing but subsequently ceases to be subject to a binding agreement for the sale therefor after Closing for any reason, excluding due to the consummation of the sale contemplated thereby, then NewCo shall promptly thereafter effectuate the transfer of each such asset to United, provided that United shall reimburse NewCo for any and all reasonable and documented out-of-pocket costs that NewCo incurs in connection with such transfers.

#### ARTICLE III
<u>CERTAIN REIMBURSEMENTS FOR PILOT TRAINING.</u>

Section 3.1 <u>Subject CRJ Pilots</u>. No later than five Business Days following the Closing, NewCo shall provide to United a complete and accurate list, together with reasonable supporting documentation and a certificate of accuracy signed by the chief financial officer of NewCo, of every pilot who meets all of the following conditions (all such pilots, collectively, the "<u>Subject CRJ Pilots</u>"): (i) such pilot is, as of the moment immediately following the Closing, employed by NewCo or any of its Affiliates, (ii) such pilot is qualified to operate CRJ-900 aircraft, is in training to operate CRJ-900 aircraft or most recently operated a CRJ-900 aircraft if currently not an active pilot and (iii) such pilot is not qualified to operate E175 aircraft.

Section 3.2 <u>Certified E175 Pilot Payments.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any Subject CRJ Pilot who commences training to become qualified to operate E175 aircraft during the period commencing on the Closing Date and ceasing on the 180th day thereafter and becomes qualified to operate E175 aircraft on or prior to the first anniversary of the Closing Date is referred to herein as a "<u>Subject E175 Certified Pilo</u>t". For each Subject E175 Certified Pilot for whom NewCo provides reasonable supporting documentation confirming such pilot meets the criteria set forth in the immediately preceding sentence, United shall pay to NewCo an amount in immediately available funds equal to $\*\*\* (each a "<u>Pilot Training Payment</u>") no later than the seventh Business Day following the date on which NewCo provides such reasonable supporting documentation; *provided, however*, that notwithstanding the foregoing, with respect to any Subject E175 Certified Pilot who begins training to operate E175 aircraft prior to the Closing Date, the Pilot Training Payment shall be multiplied by a fraction, (x) the numerator of which is the number of days elapsing from the Closing Date through and including the date in which such Subject E175 Certified Pilot becomes qualified to operate E175 aircraft, and (y) the denominator of which is the number of days elapsing from the date such Subject E175 Certified Pilot begins training to operate E175 aircraft through and including the date in which such Subject E175 Certified Pilot becomes qualified to operate E175 aircraft.

#### ARTICLE IV
<u>REPRESENTATIONS AND WARRANTIES OF THE PARTIES</u>

Each Party hereby represents and warrants to each other Party as follows as to the representations and warranties set forth in <u>Sections 4.1</u> through <u>4.4</u>; *provided, however* that (i) the representations and warranties set forth in <u>Section</u> <u>4.5</u>, <u>4.7</u> and <u>4.8</u> are provided solely by Mesa to the applicable Parties referenced therein and (ii) the representations and warranties set forth in <u>Section</u> <u>4.9</u> are provided solely by Mesa and Republic to United:

Section 4.1 <u>Organization and Qualification</u>. It is a corporation duly organized, validly existing and in good standing under the Laws of the state of its jurisdiction and has all requisite corporate power and corporate authority to own, lease and operate its properties and assets and to carry on its business as it is now being conducted.

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Section 4.2 <u>Authority</u>. It has all necessary corporate power and authority to execute and deliver this Agreement, to perform its obligations hereunder and to consummate the transactions contemplated hereby. The execution and delivery of this Agreement by it and its consummation of the transactions contemplated hereby have been duly authorized by all necessary corporate action, and no other corporate proceedings on the part of it and no stockholder votes or written consents in lieu thereof are necessary to authorize this Agreement or to consummate the transactions contemplated hereby. This Agreement has been duly and validly executed and delivered by it and, assuming due authorization, execution and delivery by the other Parties, constitutes the valid and binding obligation of it, enforceable against it in accordance with its terms, except that (i) such enforcement may be subject to applicable bankruptcy, insolvency or other similar Laws, now or hereafter in effect, affecting creditors' rights generally and (ii) the remedy of specific performance and injunctive and other forms of equitable relief may be subject to equitable defenses and to the discretion of the court before which any Proceeding therefor may be brought.

Section 4.3 <u>No Conflict</u>. None of the execution, delivery or performance of this Agreement by it, the consummation by it of the transactions contemplated by this Agreement, or its compliance with any of the provisions of this Agreement will (with or without notice or lapse of time, or both): (a) conflict with or violate any provision of its charter, bylaws or other organizational documents; (b) conflict with or violate any Law applicable to it or any of its Subsidiaries or any of their respective properties or assets; or (c) require any consent or approval under, violate, conflict with, result in any breach of or any loss of any benefit under, or constitute a default under, or result in termination or give to others any right of termination, amendment, acceleration or cancellation of, or result in the creation of a Lien (other than a Permitted Lien) upon any of the respective properties or assets of the Parent Group pursuant to, any material contract, except, with respect to clauses (b) and (c), for any such conflicts, violations, consents, breaches, losses, defaults, terminations, other occurrences or Liens which would not reasonably be expected to prevent, materially impair or materially delay its ability to perform its obligations hereunder.

Section 4.4 <u>Required Filings and Consents</u>. None of the execution, delivery or performance of this Agreement by it, the consummation by it of any of the transactions contemplated by this Agreement, or its compliance with any of the provisions of this Agreement will require (with or without notice or lapse of time, or both) any consent, approval, authorization or permit of, or filing or registration with or notification to, any Governmental Entity.

Section 4.5 <u>Pre-Close Assets Sales Documentation</u>. Mesa represents and warrants to United and Republic as of the date of this Agreement and as of the Closing that it has provided or furnished any and all material documents and instruments, including preliminary and definitive documentation, together with ancillary documents and due diligence information, relating in any material respect to any Pre-Close Assets Sale contemplated to be consummated pursuant to documents and instruments in effect as of the date of this Agreement, and that there are no material documents or instruments other than those provided or furnished to United as of the date of this Agreement, and that there are no ongoing material discussions or negotiations as to any Pre-Closing Assets Sale other than with respect to those for which documents and instruments have been provided or furnished to United as of the date of this Agreement. Mesa further represents and warrants to United that it does not have actual knowledge of any material impediments to the consummation of such Pre-Closing Assets Sale prior to the Closing.

Section 4.6 <u>No United Triggering Events</u>. United represents and warrants to Republic and Mesa that there are no, and have been no, United Triggering Events, and that there are no currently contemplated United Triggering Events.

Section 4.7 <u>Merger Agreement Representations and Warranties</u>. Mesa represents and warrants to United that all representations and warranties delivered to Republic in Article IV of the Merger Agreement are true and correct as if delivered to United hereunder as of the date of this Agreement.

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Section 4.8 <u>Pilots</u>. Mesa represents and warrants to United and Republic that as of March 18, 2025, <u>Schedule 4.8</u> sets forth a true, complete and correct list in all material respects of each pilot employed by Mesa or any of its Affiliates who meets any of the following criteria, including a notation, as to each listed pilot, as to the criteria that apply: (i) such pilot is qualified to operate CRJ-900 aircraft, (ii) such pilot is not qualified to operate E175 aircraft, (iii) such pilot is in training to operate E175 aircraft.

Section 4.9 <u>Consulting Services</u>. Each of Republic and Mesa represent that (a) the consulting services to be provided by Mesa's departing executive officers as contemplated by clause (2) of the definition of "Executive Compensation Amount" herein, including compliance with restrictive covenants and other terms and conditions set forth in any agreement contemplated by such clause (2), are, in such Party's reasonable belief and estimation, necessary to the success of the Merger, and the fees to be paid, as earned, for such services and the compliance with the other terms and conditions of any such agreements are reasonable in the context of NewCo's business, the value ascribed to the consulting services to be provided by such Party, and all other relevant factors and (b) such Party intends that NewCo will pay any such fees only as, and to the extent that, such services are delivered and the other terms and conditions of any such agreements are complied with.

#### ARTICLE V
<u>TERMINATION; AMENDMENT; WAIVER</u>

Section 5.1 <u>Termination</u>. This Agreement may be terminated and the transactions contemplated hereby abandoned only in accordance with this Section 5.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement shall automatically be terminated upon the termination of the Merger Agreement prior to the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Prior to the Closing in the cases of the following clauses (i), (ii) and (iii), and at any time following a United Conditions Precedent Failure in the case of the following clause (iv), as applicable, United shall have the right (but not the obligation) to terminate this Agreement, exercisable by delivery of written notice of termination to the other Parties, following the occurrence of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Net Debt Amount in the Final Closing Statement as finally determined pursuant to <u>clauses (c)</u> through <u>(f)</u> of <u>Section 1.7</u> is greater than $\*\*\*, upon delivery of written notice to Mesa and Republic no later than five Business Days following the date that the Proposed Estimated Net Debt Amount becomes the Net Debt Amount pursuant to such provisions (the "<u>Post-Net Debt Amount Determination Period</u>"); *provided*, *however*, that if United does not terminate this Agreement pursuant to this <u>Section 5.1(b)(i)</u> within the Post-Net Debt Amount Determination Period, then United shall not have the right to terminate this Agreement pursuant to this <u>Section 5.1(b)(i)</u><u>; or</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Net Debt Amount as revised pursuant to <u>clauses (f)</u> through <u>(h)</u> of <u>Section 1.7</u> is greater than $\*\*\*, upon delivery of written notice to Mesa and Republic no later than five Business Days following the date that any adjustments to the Net Debt Amount pursuant to <u>clauses (f)</u> through <u>(h)</u> of <u>Section 1.7</u> have been finalized (the "<u>Post-Net Debt Amount Adjustment Period</u>"); provided, however, that if United does not terminate this Agreement pursuant to this <u>Section 5.1(b)(ii)</u> within the Post-Net Debt Amount Adjustment Period, then United shall not have the right to terminate this Agreement pursuant to this <u>Section 5.1(b)(ii)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) (A) any material breach of any representation or warranty delivered to United in <u>Article IV</u> (other than <u>Section 4.9</u>); *provided* that, with respect to a breach of the representations and warranties in <u>Section 4.7</u>, termination of this Agreement pursuant to this <u>clause (iii)</u> shall not be permitted unless breach of the applicable representations and warranties in Article IV of the Merger Agreement would cause a failure of the condition set forth in Section 6.3(a) of the Merger Agreement, or (B) any material breach of any covenant or agreement of Mesa, Mesa Airlines or Republic contained in this Agreement (other than the

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covenants and agreements contained in <u>Sections 1.9</u> and <u>1.10</u>); provided, however, that, as to any such breach that is curable, United shall not be entitled to terminate this Agreement pursuant to this <u>clause (iii)</u> unless and until United has first provided Mesa and Republic with written notice of the applicable breach and such breach has not been cured in full by Mesa, Mesa Airlines or Republic (as applicable) within 30 days following receipt by such Party of such notice; *provided*, *further*, that in the case of any breach of <u>Section 4.8</u>, such breach shall be deemed cured in full if Mesa delivers to United and Republic, within 30 days following receipt by Mesa of notice that the prior version of <u>Schedule 4.8</u> was inaccurate, an updated version of <u>Schedule 4.8</u> that is true, complete and correct list in all material respects; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) a United Conditions Precedent Failure.

Section 5.2 <u>Effect of Termination</u><u>.</u> In the event of the termination of this Agreement in accordance with <u>Section</u> <u>5.1</u>, this Agreement shall forthwith become void and have no further force or effect, and there shall be no further liability or obligation on the part of any Party with respect to any pre-termination facts or circumstances, including any pre-termination breach of this Agreement; *provided*, that: (i) this <u>Section</u> <u>5.2</u>, <u>Section</u> <u>5.3</u>, <u>Section</u> <u>5.4</u> and <u>Article VI</u> (other than <u>Sections 6.15</u>, <u>6.16</u>, <u>6.17</u> and <u>6.19</u>) shall survive the termination of this Agreement and remain in full force and effect in accordance with their respective terms; (ii) if this Agreement is terminated pursuant to <u>Section</u> <u>5.1(b)(</u><u>i</u><u>)</u> or <u>Section</u> <u>5.1(b)(ii)</u>, then (A) United shall reimburse Republic for all of its documented out-of-pocket costs and expenses (including attorneys', bankers', consultants' and other third party advisors' fees and expenses) incurred by it in connection with its evaluation, negotiation or consummation of the transactions contemplated by the Merger Agreement, this Agreement or any Ancillary Agreement (whether incurred before or after the date hereof), up to a maximum reimbursement amount of $\*\*\* (in the case of a termination by United pursuant to <u>Section</u> <u>5.1(b)(</u><u>i</u><u>)</u>) or $\*\*\* (in the case of a termination by United pursuant to <u>Section</u> <u>5.1(b)(ii)</u>), as applicable, by wire transfer of immediately available funds to accounts designated in writing by Republic, no later than three Business Days following such designation, and (B) if the Utilization Condition is satisfied as of the time of such termination, Mesa shall reimburse United for all amounts paid by United to Republic pursuant to the foregoing clause (ii)(A), by wire transfer of immediately available funds to accounts designated in writing by United, no later than three Business Days following the date upon which United provides notice to Mesa of such payment to Republic (together with reasonable evidence of the same, it being understood that Republic's confirmation of receipt of such payment shall for all purposes be deemed sufficient evidence); *provided* that, solely for the purpose of this clause (ii)(B), (x) the reference to "$\*\*\*" in each of <u>Sections 5.1(b)(</u><u>i</u><u>)</u> and <u>5.1(b)(ii)</u> shall be deemed to be "$\*\*\*" and (y) the calculation of the Net Debt Amount as finally determined pursuant to clauses (c) through (f) of <u>Section</u> <u>1.7</u> (in the case of <u>Section</u> <u>5.1(b)(</u><u>i</u><u>)</u>) or as finally determined pursuant to clauses (g) through (i) of <u>Section</u> <u>1.7</u> (in the case of <u>Section</u> <u>5.1(b)(ii)</u>) shall, in each case, be deemed to disregard the Lost Qualifying Agreement Value (if any); and (iii) if this Agreement is terminated pursuant to <u>Section</u> <u>5.1(b)(</u><u>i</u><u>)</u> or <u>Section</u> <u>5.1(b)(ii)</u> and in each case all of the Utilization Conditions are not satisfied as of the time of such termination, then United shall reimburse Mesa for all of its documented out-of-pocket costs and expenses (including attorneys', bankers', consultants' and other third party advisors' fees and expenses) incurred by it in connection with its evaluation, negotiation or consummation of the transactions contemplated by the Merger Agreement, this Agreement or any Ancillary Agreement (whether incurred before or after the date hereof), up to a maximum reimbursement amount of $\*\*\* (in the case of a termination by United pursuant to <u>Section</u> <u>5.1(b)(</u><u>i</u><u>)</u>) or $\*\*\* (in the case of a termination by United pursuant to <u>Section</u> <u>5.1(b)(ii)</u>), as applicable, by wire transfer of immediately available funds to accounts designated in writing by Mesa, no later than three Business Days following such designation. Notwithstanding anything to the contrary set forth in this Agreement, each Party expressly acknowledges and agrees that, in the event this Agreement is validly terminated pursuant to <u>Section</u> <u>5.1</u>, the remedies set forth in this <u>Section</u> <u>5.2</u> shall be the sole and exclusive remedy (whether in contract or in tort, in law or in equity, or granted by statute or otherwise) of Mesa against United and Republic for any and all Losses arising out of this Agreement or the transactions contemplated hereby and of Republic against United and Mesa for any and all Losses arising out of this Agreement or the transactions contemplated hereby. For the avoidance of doubt, Republic's entitlement to expense reimbursement as contemplated by clause (ii)(A) of this <u>Section 5.2</u> shall in no way be impacted by the operation of clause (ii)(B) of this <u>Section 5.2</u>

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(including whether or not Mesa actually reimburses United for amounts that United has reimbursed Republic) or clause (iii) of this <u>Section 5.2</u>.

Section 5.3 <u>Amendment</u>. This Agreement may not be amended except by an instrument in writing signed by each Party<u>.</u>

Section 5.4 <u>Waiver</u>. As to any provision set out in this Agreement, any Party may (a) extend the time for the performance of any of the obligations or other acts of the other Parties, (b) waive any breaches in the representations and warranties of the other Parties contained herein or in any document delivered pursuant hereto and (c) waive compliance by the other Parties with any of the agreements or conditions contained herein; *provided, however,* that any such extension or waiver will be valid (i) only with effect against the Party granting such extension or waiver (and shall not be effective against any other Party that has not granted the same extension or waiver; *provided, however*, if the extension granted by a Party to another Party affects the ability of a third Party's performance then such third Party three shall automatically benefit from the extension or waiver as applicable), and (ii) only if set forth in an instrument in writing signed by the Party to be bound thereby, but such extension or waiver or failure to insist on strict compliance with an obligation, covenant, agreement or condition will not operate as a waiver of, or estoppel with respect to, any subsequent or other failure.

#### ARTICLE VI
<u>GENERAL PROVISIONS</u>

Section 6.1 <u>Non-Survival of Representations, Warranties and Pre-Closing Covenants</u><u>.</u> <u>Other than in the case of fraud</u><u>, n</u>one of the representations and warranties in this Agreement or in any instrument delivered pursuant to this Agreement, nor any of the covenants or agreements in this Agreement that contemplate performance in whole at or prior to the Closing, will survive the Closing. This <u>Section</u> <u>6.1</u> will not limit any covenant or agreement in this Agreement which by its terms contemplates performance in whole or in part after the Closing.

Section 6.2 <u>Fees and Expenses</u>. Except as provided in <u>Section</u> <u>5.2</u>, all fees and expenses incurred in connection with the preparation, negotiation and performance of this Agreement and the consummation of the transactions contemplated by this Agreement shall be paid by the Party incurring such expenses.

Section 6.3 <u>Notices</u>. All notices, consents, waivers and other communications hereunder shall be in writing and shall be deemed to have been given and received (a) when delivered in person (with written confirmation of receipt), (b) on the date received by electronic mail (with confirmation of transmission) if sent during normal business hours of the recipient, and on the next Business Day if received after normal business hours of the recipient, or (c) when received by the addressee if sent by certified or registered mail (return receipt requested) or nationally recognized express courier (with written confirmation of delivery). Such communications must be sent to the respective Parties at the following addresses (or to such other address as such Party may have specified in a written notice given to the other Parties in accordance with this Section 6.3).

if to Mesa or Mesa Airlines, to:

Mesa Air Group, Inc.

410 N. 44th Street, Suite 700

Phoenix, AZ 85008

Email: \*\*\*

Attention: Brian Gillman

with a copy (which shall not constitute notice) to:

Pachulski Stang Ziehl & Jones LLP

10100 Santa Monica Blvd., 13th Floor

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Los Angeles, CA 90067

Email: rpachulski@pszjlaw.com; jlucas@pszjlaw.com

Attention: Richard M. Pachulski; John W. Lucas

if to Republic, to:

Republic Airways Holdings Inc.

8909 Purdue Road, Suite 300

Indianapolis, IN 46268

Email: \*\*\*

Attention: Chad Pulley

with a copy (which shall not constitute notice) to:

Simpson Thacher & Bartlett LLP

900 G Street NW, Suite 900

Washington, DC 20001

Email: jonathan.corsico@stblaw.com;

benjamin.bodurian@stblaw.com

Attention: Jonathan Corsico; Benjamin Bodurian

if to United, to:

United Airlines, Inc.

Willis Tower

233 S. Wacker Drive

Chicago, IL 60606

Email: \*\*\*

Attention: \*\*\*

with a copy (which shall not constitute notice) to:

Sidley Austin LLP

1000 Louisiana St., St. 5900

Houston, TX 77002

Email: klewis@sidley.com; ashukla@sidley.com

Attention: Kevin Lewis; Atman Shukla

Section 6.4 <u>Interpretation; Certain Definitions; Exhibits and Schedules</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Parties have participated collectively in the negotiation and drafting of this Agreement with the benefit of competent legal representation, and the language used in this Agreement shall be deemed to be the language chosen by the Parties to express their mutual intent. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted collectively by the Parties, and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The words "hereof," "herein," "hereby," "hereunder" and "herewith" and words of similar import shall refer to this Agreement as a whole and not to any particular provision of this Agreement. References to articles, sections, paragraphs, exhibits, annexes and schedules are to the articles, sections and paragraphs of, and exhibits, annexes and schedules to, this Agreement, unless otherwise specified. The table of contents and headings in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. Whenever the words "include," "includes" or "including" are used in this Agreement, they shall be deemed to be followed by the phrase "without limitation." Words describing the singular number shall be deemed to include the plural and vice versa, words denoting any gender shall be deemed to include all genders and references to a Person are also to its permitted successors and assigns. The term "or" is

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used in the inclusive sense of "and/or". The word "extent" in the phrase "to the extent" shall mean the degree to which a subject or other thing extends, and such phrase shall not mean simply "if." Any agreement, document or instrument referred to herein shall mean such agreement, document or instrument as amended or modified and in effect from time to time in accordance with the terms thereof, including by way of any associated side letters or similar agreements (*provided* that for purposes of any representations and warranties contained in this Agreement that are made as of a specific date or dates, references to any agreement, document or instrument shall be deemed to refer to such agreement, document or instrument, as amended, in each case, as of such date). Reference to any Law means such Law as amended from time to time and includes any successor legislation thereto and any rules and regulations promulgated thereunder (*provided* that for purposes of any representations and warranties contained in this Agreement that are made as of a specific date or dates, references to any statute shall be deemed to refer to such statute, as amended, and to any rules or regulations promulgated thereunder, in each case, as of such date). References to "$" or "dollars" means U.S. dollars. Unless the context requires otherwise, any reference to the right of consent or approval of a Party shall be deemed to be a consent or approval that may be withheld, conditioned or delayed in such Party's sole and absolute discretion.

Section 6.5 <u>Severability</u>. If any term or provision of this Agreement or the application thereof, becomes or is declared by a court of competent jurisdiction or other competent authority to be invalid, illegal or unenforceable, the remainder of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated. Upon any such determination that any term or other provision is invalid, illegal or unenforceable, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the fullest extent possible.

Section 6.6 <u>Assignment</u>. This Agreement shall be binding upon and shall inure to the benefit of the Parties and their respective successors and permitted assigns. Neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned by any of the Parties (whether by operation of Law or otherwise) without the prior written consent of the other Parties. No assignment of this Agreement shall relieve the assigning Party of any of its liabilities or obligations hereunder. Any attempted assignment in violation of this <u>Section 6.6</u> shall be null and void.

Section 6.7 <u>Entire Agreement</u>. This Agreement, together with the Merger Agreement, (including the exhibits, annexes, schedules and appendices hereto and thereto), constitutes the sole and entire agreement of the Parties with respect to the subject matter contained herein and therein, and they supersede all other prior agreements and understandings among the Parties with respect to the subject matter hereof and thereof.

Section 6.8 <u>No Third-Party Beneficiaries</u>. This Agreement is for the sole benefit of the Parties and their respective successors and permitted assigns, and nothing herein, express or implied, is intended to or shall confer upon any Person other than the Parties or their respective successors and permitted assigns any legal or equitable rights, remedies or benefits of any nature whatsoever under or by reason of this Agreement, except for the rights of the Non-Recourse Parties as and to the extent provided in <u>Section</u> <u>6.13</u>.

Section 6.9 <u>Remedies</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any and all remedies herein expressly conferred upon a Party will be deemed cumulative with and not exclusive of any other remedy expressly conferred hereby, and the exercise by a Party of any one such remedy will not preclude the exercise of any other such remedy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Parties agree that irreparable damage and harm would occur in the event that any provision of this Agreement were not performed in accordance with its terms and that, although monetary damages may be available for such a breach, monetary damages would be an inadequate remedy therefor. Accordingly, each of the Parties agrees that, in the event of any breach or threatened breach of any provision of this Agreement by such Party, the other Party shall be entitled to an injunction or injunctions, specific performance and other equitable

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relief to prevent or restrain breaches or threatened breaches hereof and to specifically enforce the terms and provisions hereof. A Party seeking an order or injunction to prevent breaches of this Agreement or to enforce specifically the terms and provisions hereof shall not be required to provide, furnish or post any bond or other security in connection with or as a condition to obtaining any such order or injunction, and each Party hereby irrevocably waives any right it may have to require the provision, furnishing or posting of any such bond or other security. In the event that any Proceeding should be brought in equity to enforce the provisions of this Agreement, each Party agrees that it shall not allege, and each Party hereby waives the defense, that there is an adequate remedy available at law.

Section 6.10 <u>Governing Law; Exclusive Jurisdiction</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement and all matters, claims, controversies, disputes, suits, actions or Proceedings arising out of or relating to this Agreement and the negotiation, execution or performance of this Agreement or any of the transactions contemplated hereby, including all rights of the Parties (whether sounding in contract, tort, common or statutory law, equity or otherwise) in connection therewith, shall be interpreted, construed and governed by and in accordance with, and enforced pursuant to, the internal Laws of the State of Delaware without giving effect to any choice or conflict of law provision or rule (whether of the State of Delaware or any other jurisdiction) that would cause the application of the Law of any jurisdiction other than those of the State of Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each of the Parties hereby (i) agrees and irrevocably consents to submit itself to the exclusive jurisdiction of the Court of Chancery in the State of Delaware (or if such court finds it lacks subject matter jurisdiction, the federal or other state courts in the State of Delaware) (the "<u>Chosen Courts</u>") in any Proceeding arising out of or relating to this Agreement or the negotiation, execution or performance of this Agreement or any of the transactions contemplated hereby, (ii) agrees that all claims in respect of any such Proceeding will be heard and determined in any Chosen Court, (iii) agrees that it shall not attempt to deny or defeat such jurisdiction by motion or other request for leave from any Chosen Court, (iv) agrees not to bring or support any Proceeding arising out of or relating to this Agreement or any of the transactions contemplated by this Agreement (whether in contract, tort, common or statutory law, equity or otherwise) anywhere other than any Chosen Court and (v) agrees that a final and non-appealable judgment in any such Proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by applicable Law. Each of the Parties waives any defense of inconvenient forum to the maintenance of any Proceeding brought in any Chosen Court in accordance with this <u>Section 6.10</u>. Each of the Parties agrees that the service of any process, summons, notice or document in connection with any such Proceeding may be served upon them in any manner authorized by the laws of the State of Delaware.

Section 6.11 <u>Waiver of Jury Trial</u><u>; Limitation on Damages</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) EACH PARTY (I) ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY OR PROCEEDING THAT MAY ARISE UNDER OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND (II) HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY CONTROVERSY OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH PARTY (A) CERTIFIES AND ACKNOWLEDGES THAT NO REPRESENTATIVE OF THE OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF ANY PROCEEDING, SEEK TO ENFORCE THE FOREGOING WAIVER, (B) CERTIFIES AND ACKNOWLEDGES THAT IT AND THE OTHER PARTY HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION OF THIS AGREEMENT, (C) UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER AND (D) MAKES THIS WAIVER VOLUNTARILY.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) NOTWITHSTANDING ANYTHING IN THIS AGREEMENT TO THE CONTRARY, EACH PARTY WAIVES ANY AND ALL RIGHTS WITH RESPECT TO CLAIMS UNDER OR IN CONNECTION WITH THIS AGREEMENT AS TO CONSEQUENTIAL, SPECIAL, PUNITIVE OR EXEMPLARY DAMAGES, IN EACH CASE WHETHER BASED ON CONTRACT, TORT, STRICT LIABILITY, OTHER LAW OR OTHERWISE AND WHETHER OR NOT ARISING FROM THE OTHER PARTY'S OR ANY OF ITS AFFILIATES' NOR ANY OF THEIR RESPECTIVE REPRESENTATIVES' SOLE, JOINT OR CONCURRENT NEGLIGENCE, STRICT LIABILITY OR OTHER FAULT, AND EACH PARTY RELEASES THE OTHER PARTIES AND THEIR RESPECTIVE AFFILIATES FROM LIABILITY FOR ANY SUCH DAMAGES; *PROVIDED* THAT THE FOREGOING LIMITATION SHALL NOT APPLY TO LIMIT THE LIABILITY OF ANY PARTY FOR THE CONSEQUENTIAL DAMAGES SUFFERED BY ANY OTHER PARTY IF THE FIRST PARTY ACTED IN BAD FAITH; AND PROVIDED FURTHER, THAT NOTWITHSTANDING THE FOREGOING AND FOR THE AVOIDANCE OF DOUBT, NO PARTY WAIVES ANY RIGHTS WITH RESPECT TO CLAIMS AS TO DIRECT DAMAGES.

Section 6.12 <u>Counterparts and Electronic Signatures</u>. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original and all of which, when taken together, shall be deemed to be one and the same agreement or document. Delivery of an executed signature page to this Agreement by electronic transmission (including in pdf, DocuSign, email or other means of electronic transmission) shall be deemed to have the same legal effect as delivery of an original executed copy of this Agreement for all purposes.

Section 6.13 <u>Non-Recourse</u><u>.</u> Except as otherwise expressly provided in this Agreement, (a) this Agreement may only be enforced against, and any claims or causes of action that may be based upon, arise out of or relate to this Agreement, or the negotiation, execution or performance of this Agreement or the transactions contemplated hereby, may only be made against the Persons that are expressly identified as Parties herein in their capacities as such, (b) no former, current or future stockholders, equity holders, controlling persons, directors, officers, employees, general or limited partners, members, managers, agents or Affiliates of any Party hereto, or any former, current or future direct or indirect stockholder, equity holder, controlling person, director, officer, employee, general or limited partner, member, manager, agent or Affiliate of any of the foregoing (each, a "<u>Non-Recourse Party</u>") shall have any liability for any obligations or liabilities of the Parties or for any claim (whether in tort, contract or otherwise) based on, in respect of, or by reason of, the transactions contemplated hereby or in respect of any representations made or alleged to be made in connection herewith; *provided*, *however*, that the foregoing shall not limit the obligations or liabilities of any Non-Recourse Party under any other agreement to which such Non-Recourse Party is party, (c) without limiting the rights of any Party against the other Parties, in no event shall any Party or any of its Affiliates seek to enforce this Agreement against or make any claims for breach of this Agreement against any Non-Recourse Party. The covenants contained in this <u>Section</u> <u>6.13</u> are intended to be for the benefit of, and shall be enforceable by, each of the Non-Recourse Parties and their respective heirs and assigns and shall not be deemed exclusive of any other rights to which any such Person may be entitled, whether pursuant to Law, Contract or otherwise.

Section 6.14 <u>Joint and Several Obligations</u>. Each of Mesa Airlines and Mesa shall be jointly and severally liable for all of the obligations of one or both of such Parties contained in this Agreement.

Section 6.15 <u>Tax Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to <u>Section</u> <u>6.19(e)</u>, <u>6.19(f)</u> and <u>6.19(h)</u>, from the Closing until the date that is the sixth anniversary of the Closing Date, United shall indemnify, defend, save and hold harmless NewCo and its Subsidiaries from and against all liabilities for Indemnified Taxes. "<u>Indemnified Taxes</u>" means any and all out-of-pocket Taxes that Mesa, its Subsidiaries or NewCo are required to pay that are solely attributable to the transactions contemplated by this Agreement; *provided* that in no event will Indemnified Taxes include any Taxes with respect to a subsequent taxable year that arise from the use of a tax asset or tax attribute in the taxable year of such transaction or transactions and; *provided further* that, Indemnified Taxes shall include any Tax liability arising out of United's payment or reimbursement of an Indemnified Tax.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) NewCo or its Subsidiaries, as applicable, shall notify United of any claim for Indemnified Taxes as set forth on an applicable Tax Return at least 30 days prior to the due date for the filing of such Tax Return (including any applicable extensions). NewCo shall provide United with information reasonably sufficient to identify and support such claim, provided that, NewCo may provide redacted information. If United has no objection to the claim for Indemnified Taxes, United shall pay NewCo or its Subsidiaries, as applicable, the amount of any such Indemnified Tax within 10 days of receipt of notice of such claim, but in no event earlier than the date the applicable Tax Return is filed. If United objects to a claim for Indemnified Taxes, the Parties shall use commercially reasonable efforts to amicably resolve the disputed items. If any disputed item cannot be resolved prior to the due date for filing the applicable Tax Return, (i) the Parties shall refer the disputed items to an independent accounting firm (an "<u>Independent Accounting Firm</u>") mutually agreed by them to resolve the disputed items in accordance with procedures similar to those set forth in Section 1.7 for the Independent Valuation Firm, *mutatis mutandis*; *provided* that the Independent Accounting Firm shall in all events make its determination in accordance with the Intended Tax Treatment, (ii) NewCo shall be entitled to file the Tax Return adopting its position pending resolution of the dispute and (iii) the Tax Return shall be amended as necessary following the determination of the Independent Accounting Firm. United shall pay NewCo or its Subsidiaries, as applicable, any resulting Indemnified Taxes within 5 days following the determination of the Independent Accounting Firm. Neither NewCo nor any of its Subsidiaries shall amend, refile or otherwise modify any Tax Return if the effect of such action would reasonably be expected to increase the amount of Indemnified Taxes; *provided* that to the extent Newco or any of its Subsidiaries determines that it is necessary or appropriate to refile or file an amended Tax Return or otherwise modify any such Tax Return, the provisions of this Section 6.15(b) shall apply in full to such amendment, refiling or modification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To the extent a claim for Indemnified Taxes arises in connection with an audit, investigation or other proceeding by a Governmental Entity (a "<u>Tax Audit</u>"), NewCo or its Subsidiaries, as applicable shall provide notice of such claim to United as soon as reasonably practicable following the identification of such claim or potential claim for Indemnified Taxes in connection with such Tax Audit. NewCo and its Subsidiaries, as applicable, shall control the conduct of any Tax Audit in respect of an Indemnified Tax; *provided* that United may employ counsel of its choice and, at its own expense, review and comment on any written submission and NewCo or its Subsidiaries shall keep United reasonably informed on a timely basis of the progress and substantive aspects of such Tax Audit. Subject to this <u>Section</u> <u>6.15</u>, NewCo or its Subsidiaries shall be entitled to prosecute, control, settle or resolve any Tax Audit in its reasonable discretion; *provided* that neither NewCo nor its Subsidiaries shall enter into any settlement or resolution that would result in a payment by United hereunder without first notifying United and taking into account any reasonable requests of United with respect to such settlement or resolution.

Section 6.16 <u>Intended Tax Treatment</u>. The Parties intend and agree that the transactions set forth in <u>Section</u> <u>1.4(c)</u>, <u>Section</u> <u>1.5</u>, <u>Section</u> <u>1.6</u>, <u>Section</u> <u>1.7</u>, <u>Section</u> <u>2.1</u> (other <u>than Sections 2.1(d)</u> and <u>(e)</u>), <u>Section</u> <u>2.2</u>, <u>Section</u> <u>2.3</u> and <u>Section</u> <u>3.2</u>, to the extent that such transactions are between any of Republic, Mesa, NewCo or their respective Subsidiaries on the one hand and United on the other, are to be accounted for in the manner set forth on <u>Schedule 6.16</u> (the "<u>Intended Tax Treatment</u>"). The Parties shall file all Tax Returns in accordance with, and not take any position on any Tax Return that is inconsistent with, the Intended Tax Treatment unless required by a final determination as such term is defined in Section 1313(a) of the Code.

Section 6.17 <u>Lock-Up; Registration Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Following the date hereof, the Mesa and Republic shall use their respective commercially reasonable efforts to negotiate with each of the stockholders of Republic set forth on <u>Schedule 6.17</u> to provide that, effective as of the Closing, there will be a customary lock-up agreement (not to exceed \*\*\* days in duration) in place between NewCo, on the one hand, and each such stockholder, on the other hand; *provided, however*, that, notwithstanding anything to the contrary in this Agreement, United shall in no event be required to enter into a lock-up arrangement that either (x) exceeds \*\*\* days in duration or (y) is more restrictive to United than to any other stockholder of NewCo. For the avoidance of doubt, the actual entry into such lock-up

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agreements shall not serve as a condition to the Closing. If no such lock-up agreement has been entered into as of the date that is 10 Business Days prior to the Form S-4 being filed, then the Parties shall discuss in good faith reasonable appropriate revisions to the time periods referenced in <u>Section</u> <u>2.1(b)(i)</u>, <u>Section</u> <u>2.1(c)(i)</u> and to the time period referenced in the definition of NewCo Stock Value, but no Party shall have any obligation under this sentence to agree to any such revisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As promptly as reasonably practicable following the execution of this Agreement, the Parties (other than the Mesa Representative) shall use reasonable best efforts to draft a customary registration rights agreement providing United with registration rights no less favorable to United than the registration rights contained in the Stockholders Agreement, and to cause NewCo to (and United shall cause itself or its applicable Affiliate to) enter into such agreement effective as of the Closing (the "<u>Registration Rights Agreement</u>"). Prior to and at the Closing, none of NewCo, Mesa and Republic shall grant any shareholder rights with regard to NewCo (including without limitation as to board representation, board observers, information rights, consent rights, advance notice rights, or registration rights, etc.) to any person other than United, in each case unless prior to or at the Closing NewCo grants to United equivalent (or superior) rights (including, if applicable, in the Registration Rights Agreement or in an amendment thereto (which United shall promptly execute or cause its applicable Affiliate to execute) reflecting the grant of such additional rights to United).

Section 6.18 <u>Public Announcements</u>. Each Party agrees that no press release or other public announcement, or public statement or comment concerning this Agreement or the transactions contemplated hereby or by the other Transaction Agreements, shall be issued or made by any Party, or any of their Affiliates or Representatives, without the consent of each other Party (other than the Mesa Representative), such consent not to be unreasonably withheld, conditioned or delayed; *provided, however*, that, subject to the immediately following proviso, the issuance or making of a press release or other public announcement, regulatory filing, statement or comment without such consent shall not be in violation of this <u>Section</u> <u>6.18</u> if both of the following conditions have been satisfied in full: (i) such public announcement, regulatory filing, statement or comment is made in order to comply with applicable Laws or stock exchange rules and (ii) following commercially reasonable efforts to obtain consent from the other Parties (other than the Mesa Representative), in the reasonable judgment of the Party or Affiliate making such announcement, regulatory filing, statement or comment (based upon advice of counsel), prior review and joint approval would prevent dissemination of such release or announcement in a sufficiently timely fashion to comply with such applicable Laws or rules; *provided, further*, that in all instances, each Party shall provide prompt prior notice of any such release, announcement, statement or comment to the other Parties and a reasonable opportunity to review and comment as to any such release, announcement, statement or comment prior to the publicity of or making of the same, except in the case of an announcement, regulatory filing, statement or comment made under and in compliance with the immediately preceding proviso in which case concurrent notice rather than prior notice will be sufficient for the purpose of this proviso. Notwithstanding the foregoing, this <u>Section</u> <u>6.18</u> shall not prohibit releases or announcements regarding the transactions contemplated by this Agreement in response to questions from the press, analysts, investors or those attending industry conferences, and internal announcements to employees, in each case, to the extent that such releases or announcements are not inconsistent with previous public releases or announcements made jointly by the Parties or approved by the Parties, and otherwise in compliance with this <u>Section</u> <u>6.18</u>, and provided that such public releases or announcements do not reveal material nonpublic information regarding this Agreement or the transactions contemplated hereby. Notwithstanding anything to the contrary contained in this <u>Section</u> <u>6.18</u>, (i) this <u>Section</u> <u>6.18</u> shall not apply to any public announcements concerning solely Mesa or any of its Affiliates, on the one hand, and Republic or any of its Affiliates, on the other hand (the intention of such Persons being that Section 5.10 of the Merger Agreement shall solely govern the obligations of such Persons with respect to any such public announcements) and (ii) United shall not have any rights or remedies under this <u>Section</u> <u>6.18</u> to the extent any public announcements do not disclose any details related to United, its status as a party to this Agreement or its involvement in the transactions contemplated hereby. The covenants and agreements contained in this <u>Section</u> <u>6.18</u> shall survive from the date hereof through the Closing; *provided, however*, that upon the termination of this Agreement in accordance with its terms, the covenants and agreements contained in this <u>Section</u> <u>6.18</u> shall continue to apply until the date that is 18 months following such termination (such date, the

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"<u>End Date</u>") solely with respect to public announcements, press releases, public statements and other public comments that address such termination and the circumstances surrounding it, and following such End Date the covenants and agreements contained in this <u>Section</u> <u>6.18</u> shall otherwise be deemed to be null and void and of no further force or effect (but without limitation to any rights or remedies as to any breach of such covenants and agreements prior to the End Date).

Section 6.19 <u>Indemnity Procedures</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In order for a NewCo Indemnitee to be entitled to any indemnification provided for under <u>Section</u> <u>1.9(d)</u> for an Archer Indemnified Claim or under <u>Section</u> <u>2.2(c)</u> for a Shareholder Indemnified Claim (the beneficiaries of the indemnification obligations contemplated by <u>Section</u> <u>1.9(d)</u> or <u>Section</u> <u>2.2(c)</u> (as applicable) are referred to herein as "<u>Indemnitees</u>" and each an "<u>Indemnitee</u>" and any Archer Indemnified Claim or Shareholder Indemnified Claim (as applicable) is referred to herein as a "<u>Claim</u>"), such Indemnitee must notify United in writing of such Claim (setting forth in reasonable detail the facts giving rise to such Claim (to the extent known by such Indemnitee) and the amount or estimated amount (to the extent reasonably estimable) of Losses arising out of such Claim) promptly (and in any event within 30 days) after receipt by such Indemnitee of notice of such Claim; *provided, however*, that any failure or delay by such Indemnitee to notify United will not relieve United from its obligations hereunder, except to the extent United has been prejudiced by such failure or delay. Thereafter, the applicable Indemnitee shall deliver to United, promptly (and in any event within 30 days) after such Indemnitee's receipt thereof, copies of all notices and documents (including court papers) received by such Indemnitee relating to the Claim; *provided, however*, that any failure or delay by such Indemnitee to deliver such notices and documents to United will not relieve United from its obligations hereunder, except to the extent United has been prejudiced by such failure or delay.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If a Claim is made against any Indemnitee, United shall be entitled to participate in the defense thereof and (unless United is also a party to such Claim and Indemnitee provides United with written advice of outside counsel to the effect that there are legal defenses available to Indemnitee that are different from or additional to those available to United that, if Indemnitee and United were to be represented by the same counsel, would constitute a conflict of interest for such counsel or prejudice the prosecution of the defenses available to such Indemnitee), if it so chooses upon written notice delivered to the Indemnitee not more than 30 days following the date on which the Indemnitee first notifies United of the Claim, to assume the defense thereof with counsel selected by United. The assumption of the defense of any Claim shall not require United to agree to be liable for any Losses in respect of such Claim and shall be without prejudice to any rights or defenses of United in respect of whether any Indemnitee is entitled to indemnification for any particular Loss. If United assumes the defense of a Claim in accordance with this <u>Section</u> <u>6.19(b)</u>, United shall not be liable to Indemnitees for any legal expenses incurred by Indemnitees in connection with the defense thereof. If United assumes the defense of a Claim in accordance with this <u>Section</u> <u>6.19(b)</u>, Indemnitees shall have the right to participate in the defense thereof and to employ counsel, at their own expense, separate from the counsel employed by United, it being understood that United shall control such defense. If United chooses to defend or prosecute a Claim, all Indemnitees shall cooperate in the defense or prosecution thereof. Such cooperation shall include the retention and (upon United's request) the provision to United of records and information that are reasonably relevant to such Claim, and making employees available at such times and places as may be reasonably necessary to defend against such Claim for the purpose of providing additional information, explanation or testimony in connection with such Claim. Whether or not United assumes the defense of a Claim, Indemnitees shall not admit any liability with respect to, or settle, compromise or discharge, such Claim without United's prior written consent (not to be unreasonably withheld, conditioned or delayed). If United assumes the defense of a Claim, United shall not settle such Claim without the consent of the Indemnitee to which the Claim relates, except that United shall have the right to settle such Claim without the consent of such Indemnitee if such settlement (i) provides as its sole relief the payment of monetary damages as to which such Indemnitee will be indemnified in full, (ii) includes an unconditional release of each applicable Indemnitee from all liability arising out of such Claim and (iii) does not include a statement as to, or an admission of, fault, culpability or a failure to act, by or on behalf of any Indemnitee, and (iv) does not otherwise materially and adversely affect the applicable Indemnitee

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other than as a result of money damages as to which such Indemnitee will be indemnified in full. Any participation or assumption by United or Indemnitees shall not constitute a waiver by such party of any attorney-client privilege in connection with any Claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If United chooses to defend any Claim, Indemnitees (A) shall not, without the prior written consent of United (which consent shall not be unreasonably withheld, conditioned or delayed), cause, or agree to, the waiver of the attorney-client privilege, attorney work-product immunity or any other privilege or protection in respect of confidential legal memoranda and other privileged materials drafted by, or otherwise reflecting the legal advice of, internal or outside counsel of Indemnitees (the "<u>Subject Materials</u>") relating to such Claim and (B) shall, upon the reasonable request of United, make reasonably available to United such books, records or other documents and employees and representatives reasonably related to such Claim or any related claim or counterclaim that are within Indemnitees' possession, custody or control that are necessary or appropriate for such litigation or other legal proceeding or for any internal or external audit work in respect of such Claim conducted by United. Each Indemnitee hereto acknowledges and agrees, on behalf of itself and its Affiliates, that (i) it shares a common legal interest with United in preparing for the defense of legal proceedings, or potential legal proceedings, arising out of, relating to or in respect of any actual or threatened Claim or any related claim or counterclaim, (ii) the sharing of Subject Materials or any other communications, documents or materials in connection with any actual or threatened Claim will further such common legal interest and (iii) by disclosing any Subject Materials or any other communications, documents or materials in connection with any actual or threatened Claim to United, Indemnitees shall not waive the attorney-client privilege, attorney work-product immunity or any other privilege or protection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Indemnitees and United shall cooperate with each other with respect to resolving any claim or liability with respect to which United is obligated to indemnify Indemnitees hereunder, including by making all reasonable efforts to mitigate or resolve any such claim or liability after Indemnitees gain actual knowledge of such claim or liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) In the event of any claim or dispute among any Indemnitee and United as to whether such Indemnitee is entitled to indemnification under this Agreement for any particular Loss or Losses, the non-prevailing party in such claim or dispute shall reimburse the prevailing party for the reasonable and documented attorneys' fees incurred by the prevailing party solely in connection with such claim or dispute. In connection with any particular claim or dispute, (i) the applicable Indemnitee will be deemed the "non-prevailing party" if a court of competent jurisdiction, in a final and non-appealable order, has determined that such Indemnitee is entitled to less than 50% (measured by dollar value) of the aggregate amount of Losses sought to be recovered from United (and, in such instance, United will be deemed the "prevailing party") and (ii) United will be deemed the "non-prevailing party" if a court of competent jurisdiction, in a final and non-appealable order, has determined that such Indemnitee is entitled to 50% or more (measured by dollar value) of the aggregate amount of Losses sought to be recovered from United (and, in such instance, such Indemnitee will be deemed the "prevailing party"). For the avoidance of doubt, this <u>Section</u> <u>6.19(e)</u> shall not apply to any given claim or dispute unless a court of competent jurisdiction has issued a final and non-appealable order regarding such Indemnitee's entitlement to indemnification for the applicable amount of Losses sought to be recovered from United and, more particularly, this <u>Section</u> <u>6.19(e)</u> shall not apply in the case of any settlement or other similar non-judicial resolution between such Indemnitee and United.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Notwithstanding anything to the contrary contained in this Agreement, United's indemnity obligations pursuant to <u>Section</u> <u>2.2(c)</u> and <u>Section</u> <u>6.15</u>, taken together, shall not exceed, in the aggregate, $\*\*\*. For the avoidance of doubt, United's indemnity obligations pursuant to <u>Section</u> <u>1.9(d)</u> shall not be subject to any monetary limitations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The amount of any claim for indemnification pursuant to <u>Section</u> <u>1.9(d)</u> or <u>Section</u> <u>2.2(c)</u> (as applicable) will be reduced by the amount of any insurance proceeds actually recovered (less the cost to collect the proceeds of such insurance and the amount, if any, of any retroactive or other premium adjustments reasonably attributable thereto) by Indemnitees.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Each Indemnitee acknowledges that its sole and exclusive remedy with respect to any and all claims in connection with any Claim shall be pursuant to the indemnification provisions set forth in <u>Section</u> <u>1.9(d)</u> or <u>Section</u> <u>2.2(c)</u> (as applicable) and this <u>Section</u> <u>6.19</u>. In furtherance of the foregoing, each Indemnitee hereby waives, to the fullest extent permitted under Law, any and all rights, claims and causes of action for damages it may have against United arising out of <u>Section</u> <u>1.9(d)</u> or <u>Section</u> <u>2.2(c)</u> (as applicable) except pursuant to the indemnification provisions set forth in <u>Section</u> <u>1.9(d)</u> or <u>Section</u> <u>2.2(c)</u> (as applicable) and this <u>Section</u> <u>6.19</u>.

*[Signature pages follow]* 

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IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed as of the date first written above by their respective officers thereunto duly authorized.

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| |
|:---|
| **MESA AIR GROUP, INC.** |
| By: |
| Name: |
| Title: |
| **MESA AIRLINES, INC.** |
| By: |
| Name: |
| **REPUBLIC AIRWAYS HOLDINGS INC.** |
| By: |
| Name: |
| Title: |
| **UNITED AIRLINES, INC.** |
| By: |
| Name: |
| **MESA REPRESENTATIVE** |
| By: |
| Name: |

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#### Exhibit 4
<u>Escrow Agreement</u> 

*See attached* 

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#### ESCROW AGREEMENT
**THIS ESCROW AGREEMENT** (this "**Agreement**") is made and entered into as of [•], 2025, by and between: Mesa Air Group, Inc., a Delaware corporation (together with its successor after the Closing, as defined herein, the "**Mesa**"); Mesa Representative (the "**Mesa Representative**"), as representative, United Airlines, Inc., a Delaware corporation ("**United**" and together with Mesa and the Mesa Representative, the "**Escrow Parties**"), and Computershare Trust Company, National Association, a national banking association organized under the laws of the United States, as escrow agent (the "**Escrow Agent**").

**WHEREAS,** on April 4, 2025, (i) Mesa, (ii) Mesa Representative, (iii) United, (iv) Mesa Airlines, Inc., a Nevada corporation ("**Mesa Airlines**"), and (v) Republic Airways Holdings Inc. a Delaware corporation ("**Republic**"), entered into the Three Party Agreement (as amended from time to time in accordance with the terms thereof, the "**Three Party Agreement**");

**WHEREAS,** concurrently with the execution of the Three Party Agreement, Mesa, and Republic entered into that certain Agreement, Plan of Conversion and Plan of Merger (the "**Merger Agreement**");

**WHEREAS,** pursuant to the Merger Agreement, among other things, upon the terms and subject to the conditions set forth in the Merger Agreement, on the date hereof, Republic is merging with and into Mesa (the "**Merger**"), with Mesa continuing as the surviving corporation, and Mesa shall convert from a Nevada corporation to a Delaware corporation and amend its name to [Republic Airways Holdings Inc.];

**WHEREAS,** in accordance with the Three Party Agreement, at the closing of the Merger (the "**Closing**"), Mesa will conduct a primary issuance of [•]unrestricted shares (the "**Escrowed Shares**") of its common stock, no par value (which shall be in a non-certificated book-entry form), to be held via the Direct Registration System ("DRS") of The Depository Trust Company at the Transfer Agent (as defined below, which it will then deposit with the Escrow Agent to be held by the Escrow Agent in a segregated escrow account (the "**Escrow Account**") and disbursed therefrom in accordance with the terms of this Agreement;

**WHEREAS,** Computershare Inc. (the "**Transfer Agent**") (having a registered office and mailing address at 150 Royall St., Canton, MA 02021, Attention: Jennifer Lippoldt telephone: (303) 802-7906 and email: jennifer.lippoldt@computershare.com) is the Transfer Agent for Mesa, and Mesa will direct the Transfer Agent to issue the Shares in the name of "Computershare Trust Company, National Association, as Escrow Agent under this Agreement;

**WHEREAS,** in accordance with the Three Party Agreement and this Agreement, if any portion of the Shares becomes eligible for release in accordance with the terms of the Three Party Agreement, the Escrow Agent will release the applicable portion of the Shares from the Escrow Account in accordance with the terms of <u>Section III</u> hereof and disburse to the applicable recipient the applicable portion of Shares therefrom in accordance with the terms of this Agreement; and

**WHEREAS,** the Escrow Agent is willing to administer the Escrow Account under the terms and conditions of this Agreement.

**NOW THEREFORE**, in consideration of the foregoing and of the mutual covenants hereinafter set forth, the parties hereto agree as follows:

**I.** **Appointment** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Mesa hereby appoints the Escrow Agent as its escrow agent for the purposes set forth herein, and the Escrow Agent hereby accepts such appointment under the terms and conditions set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All capitalized terms with respect to the Escrow Agent shall be defined herein. The Escrow Agent shall act only in accordance with the terms and conditions contained in this Agreement and shall have no duties or obligations with respect to the Three Party Agreement or the Merger Agreement.

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**II.** **Escrow Shares** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Following the Closing, the Transfer Agent, shall deliver the Escrowed Shares in book-entry form (to the extent applicable, together with all interest, gains, dividends, or other income earned with respect thereto, and as reduced by any distribution therefrom pursuant hereto) to the Escrow Agent. [Mesa] shall instruct or direct the Transfer Agent to register the Escrowed Shares in the name of the Escrow Agent, and the Transfer Agent shall deliver a statement to the Escrow Agent reflecting the account information, number of shares, and other pertinent information. The Transfer Agent shall hold the Escrowed Shares for the benefit of the Escrow Agent through the DRS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) [Mesa] shall instruct or direct the Transfer Agent to deliver to the Escrow Agent a written confirmation of the book-entry transfer of the Escrowed Shares registered in the name of the Escrow Agent in the escrow account. [Mesa] shall simultaneously deliver to the Escrow Agent a copy of such instruction or direction letter to the Transfer Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For so long as the Escrowed Shares are held by the Escrow Agent hereunder or are otherwise registered in the name of the Escrow Agent, as escrow agent, Mesa shall be deemed to be the beneficial owner of any and all Escrowed Shares held in the escrow account unless and until such shares are disbursed to third parties in accordance with this Agreement and shall possess all rights with respect to such Escrowed Shares, except the right of possession thereof. To the extent permitted by law, in the event any matter is submitted to Mesa's stockholders in which such stockholders are required or permitted to vote, the Escrow Agent shall vote (or cause to be voted) the Escrowed Shares as directed in writing by Mesa. Mesa shall instruct the Transfer Agent to send all proxy materials to the Escrow Agent with respect to any matter submitted on which Mesa's stockholders are required or permitted to vote. The Escrow Agent shall deliver any proxy materials relating to the Escrowed Shares to Mesa upon receipt of such proxy materials from the Transfer Agent.

(i) Any dividends made in respect of any Escrowed Shares held in the Escrow Account (together with the Escrowed Shares and any other benefits or interests arising from the Escrowed Shares, the "**Escrow Asset**") shall be deemed part of the escrow and shall be held together with such Escrowed Shares until the time any Escrowed Share is disbursed pursuant to Section III of this Agreement, at which time such dividends will be paid together with such Escrowed Shares.

(ii) Escrow Agent shall hold the Escrowed Asset in a separate non-interest-bearing demand deposit account as set forth in Schedule 4. No investment of Escrowed Asset will be permitted during the term of this Agreement.

(iii) In the event of any stock split, reverse stock split, stock dividend, recapitalization, reorganization, merger, consolidation, combination, exchange of shares, liquidation, spin-off or other similar change in capitalization or event, or any distribution to holders of shares of Mesa common stock other than a regular cash dividend, the Shares shall be appropriately adjusted on a pro rata basis and consistent with the terms of the Three Party Agreement and this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) During the term of this Agreement, the Escrow Agent shall hold the Escrowed Shares in the Escrow Account and shall not sell, transfer, dispose of, lend or otherwise subject to a lien any of the Escrowed Shares except until and to the extent that they are disbursed in accordance with <u>Section III</u> hereof. Except as the Escrow Parties may otherwise agree in joint written instructions as provided in <u>Section III</u> hereof, no Escrowed Shares may be withdrawn except as expressly provided in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Escrowed Shares shall be registered under the Securities Act of 1933, as amended (the "Securities Act") as of the date hereof (the "Closing") and, other than for the release and distribution of such shares by the Escrow Agent in accordance herewith, may not be transferred, sold or otherwise disposed of by any holder thereof except pursuant to an effective registration statement under the Securities Act or in accordance with an exemption from the registration requirements of the Securities Act.

(f) The Parties agree that, for tax reporting purposes, all interest and other income from investment of the Escrow Property shall, as of the end of each calendar year and to the extent required by the Internal Revenue Service, be reported as having been earned by Mesa, whether or not such income was disbursed during such calendar year

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Notwithstanding the preceding, in the event any cash or stock dividend is declared and paid in respect of the Escrowed Shares during the term of the Escrow, the parties hereto agree that any such dividend shall be treated as a contribution of such cash or stock by Mesa to the Escrow Account and shall not be treated as a dividend for U.S. federal income tax purposes.

(i) For certain payments made pursuant to this Escrow Agreement, the Escrow Agent may be required to make a "reportable payment" or "withholdable payment" and in such cases the Escrow Agent shall have the duty to act as a payor or withholding agent, respectively, that is responsible for any tax withholding and reporting required under Chapters 3, 4, and 61 of the United States Internal Revenue Code of 1986, as amended (the "Code"). The Escrow Agent shall have the sole right to make the determination as to which payments are "reportable payments" or "withholdable payments." All parties to this Escrow Agreement shall provide an executed IRS Form W-9 or appropriate IRS Form W-8 (or, in each case, any successor form) to the Escrow Agent prior to the date hereof, and shall promptly update any such form to the extent such form becomes obsolete or inaccurate in any respect. The Escrow Agent shall have the right to request from any party to this Escrow Agreement, or any other person or entity entitled to payment hereunder, any additional forms, documentation or other information as may be reasonably necessary for the Escrow Agent to satisfy its reporting and withholding obligations under the Code. To the extent any such forms to be delivered under this Section II(f)(i) are not provided prior to the date hereof or by the time the related payment is required to be made or are determined by the Escrow Agent to be incomplete and/or inaccurate in any respect, the Escrow Agent shall be entitled to withhold (without liability) a portion of any interest or other income earned on the investment of the Escrow Asset or on any such payments hereunder to the extent withholding is required under Chapters 3, 4, or 61 of the Code, and shall have no obligation to gross up any such payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To the extent that the Escrow Agent becomes liable for the payment of any taxes in respect of income derived from the investment of the Escrow Asset, the Escrow Agent shall satisfy such liability to the extent possible from the Escrow Asset. The Parties, jointly and severally, shall indemnify, defend and hold the Escrow Agent harmless from and against any tax, late payment, interest, penalty or other cost or expense that may be assessed against the Escrow Agent on or with respect to the Escrow Asset and the investment thereof unless such tax, late payment, interest, penalty or other expense was directly caused by the gross negligence or willful misconduct of the Escrow Agent. The indemnification provided by this Section II(f)(ii) is in addition to the indemnification provided in Section VII and shall survive the resignation or removal of the Escrow Agent and the termination of this Escrow Agreement.

**III.** **Disposition and Termination** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Promptly (but in no event more than five (5) Business Days) following the determination that all or any portion of the Escrowed Shares is issuable pursuant to Section 2.1(b) of the Three Party Agreement, United and Mesa Representative will jointly instruct the Escrow Agent (the "**United Issuance Joint Instruction**") to release the applicable Escrowed Shares, together with the amount of dividends which have accrued (if any) with respect to such Escrowed Shares (the "**Share Release Amount**"), from the Escrow Account to United. Upon receipt of the United Issuance Joint Instruction, the Escrow Agent shall, no later than the fifth (5<sup>th</sup>) Business Day thereafter and without further instruction, deliver written instructions in the form of Schedule 5 to the Transfer Agent requesting Transfer Agent to disburse the Share Release Amount (including any applicable dividends) as specified in the United Issuance Joint Instruction. The Escrow Agent shall not be responsible for Transfer Agent's processing time to release of Escrowed Shares by the Transfer Agent to any party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If there are still Escrowed Shares remaining in the Escrow Account following any issuance of Escrowed Shares to United pursuant to the United Issuance Joint Instruction, then promptly (but in no event more than five (5) Business Days) following the determination that all or any portion of the Escrowed Shares are then issuable pursuant to Section 2.1(c) of the Three Party Agreement, Mesa and Mesa Representative will jointly instruct the Escrow Agent (the "**Mesa Issuance Joint Instruction**") to release the Share Release Amount from the Escrow Account to Mesa. Upon receipt of the Mesa Issuance Joint Instruction, the Escrow Agent shall, no later than the fifth (5<sup>th</sup>) Business Day thereafter and without further instruction, deliver written instructions in the form of Schedule 5 to the Transfer Agent requesting Transfer Agent to disburse the Share Release Amount (including any

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applicable dividends) as specified in the Mesa Issuance Joint Instruction. The Escrow Agent shall not be responsible for Transfer Agent's processing time to release of Escrowed Shares by the Transfer Agent to any party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If there are still Escrowed Shares remaining in the Escrow Account following any issuance of Escrowed Shares to Mesa pursuant to the Mesa Issuance Joint Instruction, then promptly following the determination that all or any portion of the Escrowed Shares are then issuable pursuant to Section 2.1(d) of the Three Party Agreement, Mesa will instruct the Escrow Agent (the "**Pre-Merger Mesa Shareholder Instruction**" and together with the United Issuance Joint Instruction and the Mesa Issuance Joint Instruction, the "**Issuance Instructions**") to release the Share Release Amount from the Escrow Account to the Pre-Merger Mesa Shareholders (with such holders identified in <u>Schedule 3</u> attached hereto, the "**Pre-Merger Mesa Shareholders**"). Upon receipt of the Pre-Merger Mesa Shareholder Instruction, the Escrow Agent shall, no later than the fifth (5<sup>th</sup>) Business Day thereafter and without further instruction, deliver written instructions in the form of Schedule 5 to the Transfer Agent requesting Transfer Agent to disburse the Share Release Amount (including any applicable dividends) as specified in the Pre-Merger Shareholder Instruction. The Escrow Agent shall not be responsible for Transfer Agent's processing time to release of Escrowed Shares by the Transfer Agent to any party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Any Issuance Instructions delivered pursuant to this Agreement shall specify the number of Escrowed Shares to be released and such other information as may be required to permit the Escrow Agent to release such Escrowed Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Upon the delivery of all of the Escrowed Shares by the Escrow Agent in accordance with the terms of this Agreement (including this <u>Section III</u>), this Agreement shall terminate, subject to the provisions of <u>Sections II(f)(ii), VI</u> and <u>VII hereof</u>.

**IV.** **Escrow Agent** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Escrow Agent shall have only those duties as are specifically and expressly provided herein, which shall be deemed purely ministerial in nature, and no other duties shall be implied. Under no circumstance will the Escrow Agent be deemed to be a fiduciary to any Party or any other person under this Escrow Agreement. The Escrow Agent will not be responsible or liable for the failure of any Party to perform in accordance with this Escrow Agreement. The Escrow Agent shall neither be responsible for, nor chargeable with, knowledge of, nor have any requirements to comply with, the terms and conditions of any other agreement, instrument or document between the Escrow Parties and any other person or entity, in connection herewith, if any, including without limitation the Three Party Agreement or the Merger Agreement, whether or not an original or a copy of such agreement has been provided to the Escrow Agent. The Escrow Agent shall have no duty to know or inquire if any person or entity has complied with any such agreements, nor shall any additional obligations of the Escrow Agent be inferred from the terms of such agreements, even though reference thereto may be made in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event of any conflict between the terms and provisions of this Agreement, those of the Three Party Agreement or the Merger Agreement, any schedule or exhibit attached to this Agreement, or any other agreement between the Escrow Parties and any other person or entity, the terms and conditions of this Agreement shall control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Escrow Agent may rely upon and shall not be liable for acting or refraining from acting upon any written notice, document, instruction or request furnished to it hereunder and believed by it to be genuine and to have been signed or presented by the Escrow Parties without inquiry and without requiring substantiating evidence of any kind. The Escrow Agent shall not be liable to any beneficiary or other person for refraining from acting upon any instruction setting forth, claiming, containing, objecting to, or related to the transfer or distribution of the Shares, or any portion thereof, unless such instruction shall have been delivered to the Escrow Agent in accordance with <u>Section X</u> hereof and the Escrow Agent has been able to satisfy any applicable security procedures as may be required hereunder and as set forth in <u>Section X</u> hereof. The Escrow Agent shall be under no duty to inquire into or investigate the validity, accuracy or content of any such document, notice, instruction or request. The Escrow Agent shall have no duty to solicit any payments which may be due nor shall the Escrow Agent have any duty or obligation to confirm or verify the accuracy or correctness of any amounts deposited with it hereunder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Escrow Agent shall not be liable for any action taken, suffered or omitted to be taken by it in good faith except to the extent that a final adjudication of a court of competent jurisdiction determines that the Escrow Agent's gross negligence or willful misconduct was the primary cause of any loss to the Escrow Parties or the Pre-Merger Mesa Shareholders. The Escrow Agent may execute any of its powers and perform any of its duties hereunder directly or through affiliates or agents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Escrow Agent may consult with counsel, accountants and other skilled persons to be selected and retained by it. The Escrow Agent shall not be liable for any action taken, suffered or omitted to be taken by it in accordance with, or in reliance upon, the advice or opinion of any such counsel, accountants or other skilled persons except to the extent that a final adjudication of a court of competent jurisdiction determines that the Escrow Agent's gross negligence or willful misconduct was the primary cause of any loss to the Escrow Parties or the Pre-Merger Mesa Shareholders. In the event that the Escrow Agent shall be uncertain or believe there is some ambiguity as to its duties or rights hereunder or shall receive instructions, claims or demands from the Escrow Parties hereto which, in its opinion, conflict with any of the provisions of this Agreement, it shall be entitled to refrain from taking any action and its sole obligation shall be to keep safely all property held in escrow until it shall be given a direction in writing which eliminates such ambiguity or uncertainty to the satisfaction of the Escrow Agent or by a final and non-appealable order or judgment of a court of competent jurisdiction that agrees to pursue any redress or recourse in connection with any dispute without making the Escrow Agent a party to the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Escrow Agent shall not be responsible or liable for any failure or delay in the performance of its obligation under this Escrow Agreement arising out of or caused, directly or indirectly, by circumstances beyond its reasonable control, including, without limitation, acts of God; earthquakes; fire; flood; wars; acts of terrorism; civil or military disturbances; sabotage; epidemic; riots; interruptions, loss or malfunctions of utilities, computer (hardware or software) or communications services; accidents; labor disputes; acts of civil or military authority or governmental action; it being understood that the Escrow Agent shall use commercially reasonable efforts which are consistent with accepted practices in the banking industry to resume performance as soon as reasonably practicable under the circumstances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) No provision of this Escrow Agreement shall require the Escrow Agent to risk or advance its own funds or otherwise incur any financial liability or potential financial liability in the performance of its duties or the exercise of its rights under this Escrow Agreement.

**V.** **Succession** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Escrow Agent may resign and be discharged from its duties or obligations hereunder by giving thirty (30) days' advance notice in writing of such resignation to the Escrow Parties specifying a date when such resignation shall take effect, provided that such resignation shall not take effect until a successor escrow agent has been appointed in accordance with this <u>Section V</u>. If the Escrow Parties have failed to appoint a successor escrow agent prior to the expiration of thirty (30) days following receipt of the notice of resignation, the Escrow Agent may petition any court of competent jurisdiction for the appointment of a successor escrow agent or for other appropriate relief, and any such resulting appointment shall be binding upon all of the parties hereto. The Escrow Agent's sole responsibility after such thirty (30) day notice period expires shall be to hold the Escrow Asset (without any obligation to reinvest the same) and to deliver the same to a designated substitute escrow agent, if any, or in accordance with the directions of a final order or judgment of a court of competent jurisdiction, at which time of delivery the Escrow Agent's obligations hereunder shall cease and terminate, subject to the provisions of <u>Section VII</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any entity into which the Escrow Agent may be merged or converted or with which it may be consolidated, or any entity to which all or substantially all the corporate trust business and assets as whole or substantially as a whole may be transferred, shall be the Escrow Agent under this Agreement and shall have and succeed to the rights, powers, duties, immunities and privileges as its predecessor, without the execution or filing of any instrument or paper or the performance of any further act.

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**VI.** **Compensation and Reimbursement** 

The Escrow Agent shall be entitled to compensation for its services under this Agreement as Escrow Agent and for reimbursement for its reasonable out-of-pocket costs and expenses, in the amounts and payable as set forth on <u>Schedule 2</u> attached hereto, which compensation shall be paid by Mesa. The fee agreed upon for the services rendered hereunder is intended as full compensation for the Escrow Agent's services as contemplated by this Escrow Agreement; provided, however, that in the event that the conditions for the release of shares under this Escrow Agreement are not fulfilled, or the Escrow Agent renders any service not contemplated in this Escrow Agreement, or there is any assignment of interest in the subject matter of this Escrow Agreement, or any material modification hereof, or if any material controversy arises hereunder, or the Escrow Agent is made a party to any litigation pertaining to this Escrow Agreement or the subject matter hereof, then the Escrow Agent shall be compensated for such extraordinary services and reimbursed for all costs and expenses, including reasonable attorneys' fees and expenses, occasioned by any such delay, controversy, litigation or event. If any amount due to the Escrow Agent hereunder is not paid within thirty (30) calendar days of the date due, the Escrow Agent in its sole discretion may charge interest on such amount up to the highest rate permitted by applicable law. The Escrow Agent shall have, and is hereby granted, a prior lien upon the Escrow Account with respect to its unpaid fees, non-reimbursed expenses and unsatisfied indemnification rights, superior to the interests of any other persons or entities and is hereby granted the right to set off and deduct any unpaid fees, non-reimbursed expenses and unsatisfied indemnification rights from the Escrow Account. The Escrow Agent shall also be entitled to payment of any amounts to which the Escrow Agent is entitled under the indemnification provisions contained herein as set forth in <u>Section VII</u> hereof. The obligations of Escrow Parties set forth in this <u>Section VI</u> shall survive the resignation, replacement or removal of the Escrow Agent or the termination of this Agreement.

**VII.** **Indemnity** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Escrow Agent shall be indemnified and held harmless by the Escrow Parties from and against any expenses, including counsel fees and disbursements, or loss suffered by the Escrow Agent in connection with any action, suit or other proceeding involving any claim which in any way, directly or indirectly, arises out of or relates to this Agreement, the services of the Escrow Agent hereunder, other than expenses or losses arising from the gross negligence or willful misconduct of the Escrow Agent. Promptly after the receipt by the Escrow Agent of notice of any demand or claim or the commencement of any action, suit or proceeding, the Escrow Agent shall notify the other parties hereto in writing. In the event of the receipt of such notice, the Escrow Agent, in its sole discretion, may commence an action in the nature of interpleader in the any state or federal court located in the state of Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Escrow Agent shall not be liable for any action taken or omitted by it in good faith and in the exercise of its own best judgment, and may rely conclusively and shall be protected in acting upon any order, notice, demand, certificate, opinion or advice of counsel (including counsel chosen by the Escrow Agent), statement, instrument, report or other paper or document (not only as to its due execution and the validity and effectiveness of its provisions, but also as to the truth and acceptability of any information therein contained) which is believed by the Escrow Agent to be genuine and to be signed or presented by the proper person or persons. The Escrow Agent shall not be bound by any notice or demand, or any waiver, modification, termination or rescission of this Agreement unless evidenced by a writing delivered to the Escrow Agent signed by the proper party or parties and, if the duties or rights of the Escrow Agent are affected, unless it shall have given its prior written consent thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Escrow Agent shall not be liable for any action taken by it in good faith and believed by it to be authorized or within the rights or powers conferred upon it by this Agreement, and may consult with counsel of its own choice and shall have full and complete authorization and indemnification, for any action taken or suffered by it hereunder in good faith and in accordance with the opinion of such counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Escrow Agent shall not be liable, directly or indirectly, for any (i) damages, losses or expenses arising out of the services provided hereunder, other than damages, losses or expenses which have been finally adjudicated to have directly resulted from the Escrow Agent's gross negligence or willful misconduct, or

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(ii) special, indirect, punitive, or consequential damages or losses of any kind whatsoever (including without limitation lost profits), even if the Escrow Agent has been advised of the possibility of such losses or damages and regardless of the form of action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) This <u>Section VII</u> shall survive termination of this Agreement or the resignation, replacement or removal of the Escrow Agent for any reason.

**VIII.** **Patriot Act Disclosure/Taxpayer Identification Numbers/Tax Reporting** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Patriot Act Disclosure. Section 326 of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 ("**USA PATRIOT Act**") requires the Escrow Agent to implement reasonable procedures to verify the identity of any person that opens a new account with it. Accordingly, the Escrow Parties acknowledge that Section 326 of the USA PATRIOT Act and the Escrow Agent's identity verification procedures require the Escrow Agent to obtain information which may be used to confirm identities including without limitation name, address and organizational documents ("**identifying information**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Escrow Parties agree to provide the Escrow Agent with and consent to the Escrow Agent obtaining from third parties any such identifying information required as a condition of opening an account with or using any service provided by the Escrow Agent and that any such underlying transaction does not constitute an installment sale requiring any tax reporting or withholding of imputed interest or original issue discount to the IRS or other taxing authority.

**IX.** **Notices** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All communications hereunder shall be in writing and except for any Issuance Instruction or any communications from the Escrow Parties setting forth, claiming, containing, objecting to, or in any way related to the full or partial transfer or distribution of the Escrow Asset, all notices and communications hereunder shall be deemed to have been duly given and made if in writing and if (i) served by personal delivery upon the party for whom it is intended, (ii) delivered by registered or certified mail, return receipt requested, or by Federal Express or similar overnight courier, or (iii) sent by email, provided that the receipt of such email is promptly confirmed, by telephone, electronically or otherwise, to the party at the address set forth below, or such other address as may be designated in writing hereafter, in the same manner, by such party:

Notices to Mesa:

Mesa Air Group, Inc.

410 N. 44<sup>th</sup> Street, Suite 700

Phoenix, Arizona 85008

Attention: Brian Gillman

Email: \*\*\*

with a copy to (which will not constitute notice):

Pachulski Stang Ziehl & Jones LLP

10100 Santa Monica Blvd., 13<sup>th</sup> Floor

Los Angeles, California 90067

Attention: Richard M. Pachulski; John W. Lucas

Email: rpachulski@pszjlaw.com; jlucas@pszjlaw.com

Notices to Mesa Representative:

Mesa Air Group, Inc.

410 N. 44<sup>th</sup> Street, Suite 700

Phoenix, Arizona 85008

Attention: Brian Gillman

Email: \*\*\*

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with a copy to (which will not constitute notice):

Pachulski Stang Ziehl & Jones LLP

10100 Santa Monica Blvd., 13<sup>th</sup> Floor

Los Angeles, California 90067

Attention: Richard M. Pachulski; John W. Lucas

Email: rpachulski@pszjlaw.com; jlucas@pszjlaw.com

Notices to United:

United Airlines, Inc.

233 S. Wacker Drive

Chicago, Illinois 60606

Attention:

Email:

with a copy to (which will not constitute notice):

Sidley Austin LLP

1000 Louisiana St., Suite 5900

Houston, Texas 77002

Attention: Kevin Lewis; Atman Shukla

Email: klewis@sidley.com; ashukla@sidley.com

Notices to the Escrow Agent:

Computershare Trust Company, N.A.

1505 Energy Park Drive

St. Paul, MN 55108

Attention:

Email:

Telephone:

Notwithstanding the above, in the case of communications delivered to the Escrow Agent, such communications shall be deemed to have been given on the date received by an officer of the Escrow Agent or any employee of the Escrow Agent who reports directly to any such officer at the above-referenced office. In the event that the Escrow Agent, in its sole discretion, shall determine that an emergency exists, the Escrow Agent may use such other means of communication as the Escrow Agent deems appropriate. For purposes of this Agreement, "Business Day" shall mean any day other than a Saturday, Sunday or any other day on which the Escrow Agent located at the notice address set forth above is authorized or required by law or executive order to remain closed.

**X.** **Security Procedures** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding anything to the contrary as set forth in <u>Section IX</u> hereof, any instructions setting forth, claiming, containing, objecting to, or in any way related to the transfer or distribution, including but not limited to any transfer instructions that may otherwise be set forth in a written instruction permitted pursuant to <u>Section III</u> hereof, may be given to the Escrow Agent only by confirmed electronic transmission (including e-mail) and no instruction for or related to the transfer or distribution of the Escrow Asset, or any portion thereof, shall be deemed delivered and effective unless the Escrow Agent actually shall have received such instruction by electronic transmission (including e-mail) at the number or e-mail address provided to the Escrow Parties by the Escrow Agent in accordance with <u>Section IX</u> hereof and as further evidenced by a confirmed transmittal to that number.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event transfer instructions are so received by the Escrow Agent by electronic transmission (including e-mail), the Escrow Agent is authorized to seek confirmation of such instructions by telephone call-back to the person or persons designated on <u>Schedule 1</u> hereof, and the Escrow Agent may rely upon the confirmation of anyone purporting to be the person or persons so designated. The persons and telephone numbers

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for call-backs may be changed only in a writing actually received and acknowledged by the Escrow Agent. If the Escrow Agent is unable to contact any of the authorized representatives identified in <u>Schedule 1</u> hereof, the Escrow Agent is hereby authorized both to receive written instructions from and seek confirmation of such instructions by officers of the Escrow Parties (collectively, the "**Senior Officers**"), as the case may be, which shall be designated in <u>Schedule 1</u> hereof. Such Senior Officer shall deliver to the Escrow Agent a fully executed incumbency certificate, and the Escrow Agent may rely upon the confirmation of anyone purporting to be any such officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Escrow Parties acknowledges that the Escrow Agent is authorized to deliver the Escrowed Shares to the custodian account or recipient designated by any recipient in writing, provided that such delivery shall be endorsed in writing by Mesa.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Parties understand that the Escrow Agent's inability to receive or confirm funds transfer instructions may result in a delay in accomplishing such funds transfer, and agree that the Escrow Agent shall not be liable for any loss caused by any such delay.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Parties certify that the names, titles, telephone numbers, email addresses and specimen signatures set forth in Schedule 1 are persons authorized to provide direction and initiate or confirm transactions.

**XI.** **Court Orders** 

In the event that any escrow property shall be attached, garnished or levied upon by any court order, or the delivery thereof shall be stayed or enjoined by an order of a court, or any order, judgment or decree shall be made or entered by any court order affecting the property deposited under this Agreement, the Escrow Agent is hereby expressly authorized, in its sole discretion, to obey and comply with all writs, orders or decrees so entered or issued, which it is advised by opinion of legal counsel of its own choosing is binding upon it, whether with or without jurisdiction, and in the event that the Escrow Agent reasonably obeys or complies with any such writ, order or decree it shall not be liable to any of the parties hereto or to any other person, entity, firm or corporation, by reason of such compliance notwithstanding such writ, order or decree be subsequently reversed, modified, annulled, set aside or vacated. The Escrow Agent shall further have no obligation to pursue any action that is not in accordance with applicable law.

**XII.** **Miscellaneous** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except for changes to transfer instructions as provided in <u>Section X</u> hereof, the provisions of this Agreement may be waived, altered, amended or supplemented, in whole or in part, only by a writing signed by the Escrow Agent and the Escrow Parties. Neither this Agreement nor any right or interest hereunder may be assigned in whole or in part by the Escrow Agent or the Escrow Parties except as provided in <u>Section V</u> hereof, without the prior consent of the Escrow Agent and the Escrow Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This Agreement shall be governed by and construed under the laws of the State of Delaware, without giving effect to the conflict of laws principles thereof. Each of the Escrow Parties and the Escrow Agent irrevocably waives any objection on the grounds of venue, forum non-convenience or any similar grounds and irrevocably consents to service of process by mail or in any other manner permitted by applicable law and consents to the jurisdiction of any court of the State of Delaware or United States federal court, in each case, sitting in the State of Delaware. To the extent that in any jurisdiction any party may now or hereafter be entitled to claim for itself or its assets, immunity from suit, execution attachment (before or after judgment), or other legal process, such party shall not claim, and it hereby irrevocably waives, such immunity. The parties further hereby waive any right to a trial by jury with respect to any lawsuit or judicial proceeding arising or relating to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No party to this Agreement is liable to any other party for losses due to, or if it is unable to perform its obligations under the terms of this Agreement because of, acts of God, fire, war, terrorism, floods, strikes, electrical outages, equipment or transmission failure, or other causes reasonably beyond its control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. All signatures of the parties to

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this Agreement may be transmitted by means of (i) an original manual signature; (ii) a faxed, scanned, or photocopied manual signature, or (iii) any other electronic signature permitted by the federal Electronic Signatures in Global and National Commerce Act, state enactments of the Uniform Electronic Transactions Act, and/or any other relevant electronic signatures law, including any relevant provisions of the Uniform Commercial Code (collectively, "Signature Law"), in each case to the extent applicable. Each faxed, scanned, or photocopied manual signature, or other electronic signature, shall for all purposes have the same validity, legal effect, and admissibility in evidence as an original manual signature. Each party hereto shall be entitled to conclusively rely upon, and shall have no liability with respect to, any faxed, scanned, or photocopied manual signature, or other electronic signature, of any other party and shall have no duty to investigate, confirm or otherwise verify the validity or authenticity thereof. Notwithstanding the foregoing, with respect to any notice provided for in this Agreement or any instrument required or permitted to be delivered hereunder, any party hereto receiving or relying upon such notice or instrument shall be entitled to request execution thereof by original manual signature as a condition to the effectiveness thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If any provision of this Agreement is determined to be prohibited or unenforceable by reason of any applicable law of a jurisdiction, then such provision shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions thereof, and any such prohibition or unenforceability in such jurisdiction shall not invalidate or render unenforceable such provisions in any other jurisdiction. A person who is not a party to this Agreement shall have no right to enforce any term of this Agreement. The parties represent, warrant and covenant that each document, notice, instruction or request provided by such party to the other party shall comply with applicable laws and regulations. Where, however, the conflicting provisions of any such applicable law may be waived, they are hereby irrevocably waived by the parties hereto to the fullest extent permitted by law, to the end that this Agreement shall be enforced as written. Except as expressly provided in <u>Section VII</u> hereof above, nothing in this Agreement, whether express or implied, shall be construed to give to any person or entity other than the Escrow Agent and the Escrow Parties any legal or equitable right, remedy, interest or claim under or in respect of this Agreement or the Escrow Asset escrowed hereunder.

*[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]* 

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date set forth above.

---

| |
|:---|
| MESA AIR GROUP, INC. |
| By: |
| Name: |
| Title: |
| [MESA REPRESENTATIVE] |
| By: |
| Name: |
| Title: |
| UNITED AIRLINES, INC. |
| By: |
| Name: |
| Title: |
| [ESCROW AGENT] |
| By: |
| Name: |
| Title: |

---

[Signature Page to Escrow Agreement]

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#### Schedule 1

#### AUTHORIZED OFFICER OF MESA, MESA REPRESENTATIVE AND UNITED

#### Mesa:
Individuals authorized by Mesa:

---

| | | | |
|:---|:---|:---|:---|
| Name and Title | Name and Title | Telephone Number<br> E-mail Address | Specimen Signature |
| 1. | [XXXXXX] |  |  |
| 2. |  |  |  |
| 3. |  |  |  |

---

#### Mesa Representative:
Individuals authorized by Mesa Representative:

---

| | | | |
|:---|:---|:---|:---|
| Name and Title | Name and Title | Telephone Number<br> E-mail Address | Specimen Signature |
| 1. | [XXXXXX] |  |  |
| 2. |  |  |  |
| 3. |  |  |  |

---

#### United:
Individuals authorized by United:

---

| | | | |
|:---|:---|:---|:---|
| Name and Title | Name and Title | Telephone Number<br> E-Mail Address | Specimen Signature |
| 1. | [XXXXXX] |  |  |
| 2. |  |  |  |
| 3. |  |  |  |

---

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#### Schedule 2

#### FEE INFO

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#### Schedule 3

#### PRE-MERGER MESA SHAREHOLDERS
(Attached)

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#### Schedule 4

#### Non-Interest Bearing Cash Direction Form
Direction to use the following Computershare Trust Company, N.A. (Computershare) Deposit Option for cash balances for the following account(s) and all subaccounts thereof:

Account name: <br> Account number(s):

You are hereby directed to deposit, as indicated below, or as I shall direct further in writing from time to time, all cash in the account(s) in the following bank deposit option:

**Computershare Essential Non Interest Bearing Deposit Option (ENIB)**<br> **(SEI CUSIP = VP7000384)**<br>

I acknowledge that I have full power and authority to direct investments of the account(s).

I acknowledge that funds are deposited with investment grade financial institutions as rated by S&P, Moody's or Fitch.

I understand that Computershare shall not be obligated to pay any interest to the account(s).

I understand that I may change this direction at any time and that it shall continue in effect until revoked or modified by me by written notice to you.

I understand that Computershare may from time to time receive compensation in connection with such deposits or investments.

I understand that Computershare shall have no responsibility or liability for any diminution of the funds that may result from any deposit or investment made by Computershare in accordance with this direction, including any losses resulting from a default by any bank, financial institution or other third party.

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#### Schedule 5

#### ESCROW AGENT INSTRUCTION TO TRANSFER AGENT
[Date]

Computershare Inc.

Attention:

email: [●]

RE: Release / Re-register of Escrowed Shares pursuant to that certain Escrow Agreement dated MONTH, DD, YYYY by and among [ ], [ ], and Computershare Trust Company, National Association ("Escrow Agent").

Dear [●]:

Pursuant to Section [ ] of the above referenced Escrow Agreement and the attached letter of direction executed by [ ] and [ ], Computershare Trust Company, National Association, as Escrow Agent and the registered owner of [●] shares of the [ ]stock of [ ] ("Escrowed Shares") hereby authorizes the release, transfer and re-registration of the following Escrowed Shares r/n/o Computershare Trust Company, National Association, as Escrow Agent under an Escrow Agreement dated _____, 2022 by and among [ ], [ ], and Computershare Trust Company, National Association, a national banking association organized under the laws of the United States, as escrow agent to:

[●] Common Shares

CUSIP [●]

COY [●] / Class [●]

r/n/o [●]

Effective Date:[●]

Upon release and re-registration, Computershare's position will be [●] Escrowed Shares. Please provide an updated Book Entry Advice for the account number [●] reflecting Computershare Trust Company, National Association, as Escrow Agent to the Escrow Agreement.

If you have any questions, please feel free to contact the Relationship Manager for the above issue, [ ], at () - or [ ]@computershare.com.

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#### Annex B
![LOGO](g944307g01g01.jpg)

March 17, 2025

#### STRICTLY CONFIDENTIAL
Mesa Air Group, Inc.

410 North 44th Street

Suite 700

Phoenix, AZ 85008

Attn: The Board of Directors of Mesa Air Group, Inc.

Subject: **Opinion of FTI Capital Advisors, LLC**

Ladies and Gentlemen:

We understand that Mesa Air Group, Inc. (including its subsidiaries, affiliates and assigns, the "<u>Company</u>", "<u>Mesa</u>" or "<u>you</u>") proposes to enter into a "<u>Proposed Transaction</u>" pursuant to an Agreement and Plan of Conversion and Merger (the "<u>Agreement</u>"), whereby the Company will merge with Republic Airways Holdings, Inc. (together with its affiliates, "<u>Republic</u>"). Pursuant to the Proposed Transaction, the Company will be the surviving corporation, and each outstanding share of common stock, par value of zero per share, of Republic will be converted (the "Conversion") into the right to receive the number of shares of Mesa common stock, par value of zero per share in accordance with the "Exchange Ratio" (as that term is defined below).

<u>Exchange Ratio</u>

We understand that:

i. the Exchange Ratio will be 636 shares of Mesa common stock of mesa received for each share of common stock of Republic; and

ii. after giving effect to certain post-closing true-ups and adjustments, as set forth in the Agreement, in no event will such true-ups and adjustments result in the Company's <u>Legacy Shareholders</u> <sup>1</sup> holding less than 6% of the Company's common stock on a fully diluted basis as a consequence of the Conversion; and

iii. as of the Closing, and after giving effect to the Conversion, except for the Company's common stock, there will be no other class or series of shares issued and outstanding, nor will there exist any rights to acquire any shares of any other class or series of stock.

FTI Capital Advisors, LLC ("<u>FTICA</u>" "<u>we</u>" or "<u>our</u>") has been requested by the Company to render our opinion to and for the sole benefit of the Company's board of directors (the "<u>Board</u>"), as to the fairness, from a financial

<sup>1</sup> For purposes of this letter, the Company's "Legacy Shareholders" refers to those persons and entities who constitute the holders of the Company's common stock and warrants immediately prior to the consummation of the Proposed Transaction and prior to the Conversion. The common stock that the Company's Legacy Shareholders will own in the Company pursuant to the Exchange Ratio and the consummation of the Proposed Transaction is referred to herein as the "Merger Consideration." 

www.fticapitaladvisors.com

1166 Avenue of the Americas, 15th Floor

New York, New York 10036

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point of view, to the Company's Legacy Shareholders, of the Exchange Ratio (and hence, the Merger Consideration) in the Proposed Transaction. Our opinion does not address any other aspect of the Proposed Transaction.

In arriving at our opinion, among other things, we have:

i. Discussed the Proposed Transaction with Mesa's management (" <u>Mesa</u> <u>Management</u> "), who provided FTICA the basic elements of, and their rationale for pursuing, the Proposed Transaction;

ii. Discussed the Proposed Transaction with Republic's management (" <u>Republic</u> <u>Management</u> "), who provided FTICA the basic elements of, and their rationale for pursuing, the Proposed Transaction;

iii. Reviewed and analyzed financial statements for the years ended September 30, 2022 through September 30, 2024 and the three months ended December 31, 2023 and December 31, 2024, and other historical and forecasted financial information, business plans and operating information with respect to the Company furnished to or discussed with us by Company Management, including certain financial forecasts relating to the Company, covering the period from October 1, 2024 through September 30, 2029, prepared by Company Management (such forecasts, the " <u>Mesa Forecasts</u> ");

iv. Reviewed and analyzed financial statements for the years ended December 31, 2021 through December 31, 2024 and other historical and forecasted financial information, business plans and operating information with respect to Republic furnished to or discussed with us by Republic Management, including certain financial forecasts relating to Republic, covering the period from January 1, 2025 through December 31, 2027, prepared by Republic Management (such forecasts, the " <u>Republic Forecasts</u> ");

v. Reviewed and analyzed including certain financial forecasts relating to the newly combined entity (" <u>MergerCo</u> "), covering the period from January 1, 2025 through December 31, 2027, prepared by Republic Management (such forecasts, the " <u>MergerCo</u> <u>Forecasts</u> ");

vi. Reviewed and analyzed the pro forma cap table (prepared by Mesa Management) of MergerCo effective as of the date immediately following the closing of the Proposed Transaction and the issuance of Company common shares to Republic or its shareholders pursuant to the Conversion of Republic common stock to Mesa common stock as contemplated pursuant to the Agreement;

vii. Reviewed the letter, dated as of the date hereof, from Mesa Management to FTICA containing certain representations as to historical financial statements, financial projections and their underlying assumptions of the Mesa, Republic, and MergerCo (the " <u>Management Representation Letter</u> ");

viii. Discussed, reviewed and analyzed the past and current business, operations, financial condition and prospects of Mesa, Republic, and MergerCo with Company Management and Republic Management;

ix. Compared certain financial information of Mesa, Republic, and MergerCo with similar information of other companies FTICA deemed relevant;

x. Reviewed historical stock price information of the Company;

xi. Reviewed a draft, dated January 22, 2025, of the Agreement (the " <u>Draft Agreement</u> ");

and

xii. Considered such other information and performed such other analyses as FTICA deemed appropriate for this engagement.

In arriving at our opinion, we have relied upon and assumed, with your consent and without independent verification, the accuracy and completeness of the financial and all other information, analysis and data furnished to or disclosed to us by, or on behalf of, Mesa Management and Republic Management (including any materials prepared by third parties and provided to FTICA by, or on behalf of, Mesa Management and Republic Management) or that were reviewed by us, and we have not assumed, and we do not assume any responsibility or liability for independently verifying such information. We have further relied, with your consent, upon the

FTI Capital Advisors, LLC is a wholly owned subsidiary of FTI Consulting, Inc. B-2

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assurances of Mesa Management that they are not aware of any facts or circumstances that would make such information incomplete, inaccurate or misleading. We have assumed, with your consent, that the Mesa Forecasts, Republic Forecasts, and MergerCo Forecasts have been reasonably prepared on a basis reflecting the best currently available estimates and judgments of Mesa Management and Republic Management. We assume no responsibility for, and we express no view or opinion with respect to, the Mesa Forecasts, Republic Forecasts, and MergerCo Forecasts or the estimates and assumptions on which they are based. In arriving at our opinion, we have not conducted a legal, accounting or physical inspection of Mesa or Republic and have not performed or obtained any valuations or appraisals of the assets or liabilities of Mesa or Republic. Our opinion is necessarily based upon financial, market, economic and other conditions as they exist on, and reasonably can be evaluated by us as of, the date of this opinion. We assume no responsibility for updating or revising our opinion based on events or circumstances that may occur after the date of this opinion. Furthermore, we have not evaluated, and express no view or opinion with respect to, the solvency of Mesa or Republic under any laws relating to bankruptcy, insolvency or similar matters, whether prior to or following the Closing of the Proposed Transaction.

We have assumed, with your consent, that the Exchange Ratio in the Proposed Transaction will be as set forth herein and in the information provided to us by Mesa Management.

We have further assumed, with your consent, the accuracy of the representations and warranties contained in the draft Agreement, that any covenants contained in the draft Agreement are reasonably likely to be performed by the parties thereto, and that the Proposed Transaction will be timely consummated without waiver, modification or amendment of any of the material terms or conditions set forth in the draft Agreement. We have also assumed, with your consent, that all material governmental, regulatory and third-party approvals, consents and authorizations and releases necessary for the consummation of the Proposed Transaction will be obtained prior to the closing of the Proposed Transaction and within the time frames reasonably contemplated by the parties to the Proposed Transaction.

We express no view as to, and our opinion does not address, any terms or other aspects or implications of the Proposed Transaction (other than the fairness, from a financial point of view, to the Company's Legacy Shareholders of the Exchange Ratio in the Proposed Transaction) or any aspect or implication of any other agreement, compensation, arrangement or understanding entered into or to be entered into in connection with the Proposed Transaction.

In addition, we express no view as to, and our opinion does not consider or address, (i) the future price or value of any class of securities or other equity interests of Republic or the Company or MergerCo, or any assets of Republic or the Company or MergerCo, (ii) the underlying business decision of the Company to proceed with or effect the Proposed Transaction, or (iii) the relative merits of the Proposed Transaction as compared to any alternative business plans, opportunities or strategies that might exist for the Company, or the effect of any other transaction in which the Company may engage. In arriving at our opinion, we were not asked to solicit, and did not solicit, interest from any party with respect to any sale, acquisition, business combination or other extraordinary transaction involving the Company or its assets. We have not considered and our opinion does not address the underlying decision by the Company to engage in the Transaction.

Based upon and subject to the foregoing and as presented to the Board of Directors of Mesa Air Group, Inc. on February 13, 2025, we are of the opinion that the Exchange Ratio in the Proposed Transaction is fair, from a financial point of view, to the Company's Legacy Shareholders. This opinion addresses only the fairness from a financial point of view, as of the date hereof, to the Legacy Shareholders of the Exchange Ratio. FTICA has not been asked to offer, nor does FTICA offer, any opinion as to any other term of the Agreement, any other document or transaction contemplated by or entered into in connection with the Agreement, the form or structure of the Proposed Transaction, the likely timeframe in which the Proposed Transaction will be consummated, or whether the Proposed Transaction in fact can and will be consummated.

FTICA expresses no opinion as to the fairness of the amount or nature of any compensation or payment to be received by any individual securityholder of any entity or any officers, directors, agents or employees of any

FTI Capital Advisors, LLC is a wholly owned subsidiary of FTI Consulting, Inc. B-3

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parties to the Proposed Transaction. Our opinion does not address any other aspect or implication of the Proposed Transaction, the Agreement, or any other agreement or understanding entered into in connection with the Proposed Transaction or otherwise. We express no opinion or view as to the fairness of the Proposed Transaction to the holders of any other class of securities (including any preferred stock of the Company), creditors or other constituencies of the Company or as to the underlying decision by the Company to engage in the Transaction. Our opinion is based on the draft Agreement and certain terms of the Proposed Transaction, including the Exchange Ratio, described to us by Mesa Management. We have not been provided, and have not reviewed, the final Agreement or any exhibits thereto, or any other definitive or draft agreements or documents relating to the Proposed Transaction, and we express no view or opinion with respect to such agreements, arrangements and documents.

FTICA does not express any opinion as to any tax or other consequences that may result from the transactions contemplated by the Merger Agreement or any other related document, nor does our opinion address any legal, tax, regulatory or accounting matters, as to which we understand the Company has received such advice as it deems necessary from qualified professionals. We are not legal, tax or regulatory advisors and have relied upon without independent verification the assessment of the Company and its legal, tax and regulatory advisors with respect to such matters.

We also have assumed, with your consent, that the final executed form of the Agreement will not differ in any material respects from the draft reviewed by us and that the consummation of the Proposed Transaction will be effected in accordance with the terms and conditions of the Agreement, without waiver, modification or amendment of any material term, condition or agreement, and that, in the course of obtaining the necessary regulatory or third party consents and approvals (contractual or otherwise) for the Proposed Transaction, no delay, limitation, restriction or condition will be imposed that would have an adverse effect on the parties to the Proposed Transaction or the contemplated benefits of the Proposed Transaction. We have also assumed that the representations and warranties made by the parties in the Agreement and the related agreements are and will be true and correct in all respects material to our analysis.

We will receive a fee for our services in connection with this opinion, a portion of which is payable upon rendering this opinion. The Company has agreed to reimburse certain of our expenses and indemnify us for certain liabilities that may arise out of our engagement pursuant to that certain Engagement Agreement, dated January 23, 2025, between the Company and FTICA (the "Engagement Agreement"). FTICA is a wholly-owned subsidiary of FTI Consulting, Inc. ("FTI").

We are also acting as financial advisor to the Company with respect to the Proposed Transaction and will receive a fee from the Company for our services, which is contingent upon the consummation of the Proposed Transaction. In addition, the Company has agreed to reimburse us for out-of-pocket expenses and to indemnify us for certain liabilities arising out of the performance of such services (including the rendering of this opinion).

In the ordinary course of our and our affiliates' businesses, we and our affiliates may provide investment banking and other financial services to the Company, Republic or their respective affiliates and may receive compensation for the rendering of these services. During the two years preceding the date of this opinion, we have provided general Investment Banking Services to Mesa including but not limited to General Corporate Finance advice related to the Company's indebtedness including Aircraft Indebtedness and Asset Sales Transactions. The Company and its Board of Directors acknowledges the disclosure of all of these facts and circumstances and relationships, has conducted its own inquiry as to the services performed in the past by FTI and its affiliates on behalf of the Company and has waived all actual and potential conflicts of interest and claims that may arise from FTICA's services hereunder or in connection with any prior or future engagements of FTI or FTICA and its affiliates, subject to the applicable provisions of the Engagement Agreement as set forth therein.

FTI Capital Advisors, LLC is a wholly owned subsidiary of FTI Consulting, Inc. B-4

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FTI, its subsidiaries and its affiliates engage in a wide range of businesses including, without limitation, investment banking, asset management and other financial and non-financial advisory services. In the ordinary course of our business, we and our affiliates may actively advise our customers with respect to trades or other transactions in equity, debt and/or other securities (and any derivatives thereof) and financial instruments (including loans and other obligations) of or relating directly or indirectly to the Company, Republic and their respective affiliates.

This opinion, the issuance of which has been approved by FTICA's Fairness Committee, is strictly for the use and benefit of the Board and is rendered to the Board in connection with its consideration of the Proposed Transaction. This opinion is not intended to be and does not constitute a recommendation to any securityholder of the Company or Republic or any other person as to how such person should proceed with respect to the Proposed Transaction.

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| |
|:---|
|  Very truly yours, |
| ![LOGO](g944307g06g06.jpg)  |
|  FTI Capital Advisors, LLC |

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FTI Capital Advisors, LLC is a wholly owned subsidiary of FTI Consulting, Inc. B-5

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![LOGO](g944307g01g01.jpg)

July 9, 2025

#### STRICTLY CONFIDENTIAL
Mesa Air Group, Inc.

410 North 44th Street

Suite 700

Phoenix, AZ 85008

Attn: The Board of Directors of Mesa Air Group, Inc.

Subject: **<u>Update to the March</u> 17, 2025 Opinion of FTI Capital Advisors, LLC (the "OL")**

Ladies and Gentlemen:

Reference is made to the OL set forth above. Defined terms used in this Update Letter OL shall have the same meaning and definition as set forth in the OL.

You have informed us that Mesa Air Group, Inc. (including its subsidiaries, affiliates and assigns, the "<u>Company</u>", "<u>Mesa</u>" or "<u>you</u>") have entered into a "<u>Proposed Transaction</u>" pursuant to an Agreement, Plan of Conversion and Plan of Merger (the "<u>Agreement</u>"), whereby the Company will merge with Republic Airways Holdings, Inc. (together with its affiliates, "<u>Republic</u>"). Pursuant to the Proposed Transaction, the Company will be the surviving corporation, and each outstanding share of common stock, par value of $0.001 per share, of Republic will be converted (the "Conversion") into the right to receive 584.9 shares of Mesa common stock, par value of zero per share.

Our March 17 OL relied upon an Exchange Ratio whereby each outstanding share of common stock, par value of $0.001 per share, of Republic will be converted (the "Conversion") into the right to receive 636 shares of Mesa common stock, par value of zero per share.

Our March 17 OL stated, among other things, as follows:

"Based upon and subject to the foregoing and as presented to the Board of Directors of Mesa Air Group, Inc. on February 13, 2025, we are of the opinion that the Exchange Ratio of 636 in the Proposed Transaction is fair, from a financial point of view, to the Company's Legacy Shareholders. This opinion addresses only the fairness from a financial point of view, as of the date hereof, to the Legacy Shareholders of the Exchange Ratio."

The foregoing conclusion in our March 17 OL assumed that Mesa's Legacy Shareholders will not own less than 6% of the combined company's common stock on a fully diluted basis as a consequence of the Merger.

You have advised us that:

1. subsequent to March 17, 2025, the Exchange Ratio was adjusted to an Exchange Ratio of 584.90 shares of Mesa common stock to be exchanged for each share of Republic stock; and

www.fticapitaladvisors.com

1166 Avenue of the Americas, 15th Floor

New York, New York 10036

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2. the foregoing adjustment occurred solely because of a mathematical correction to the number of shares of each Company that would be issued and outstanding at the closing.

You have asked us whether, on March 17, 2025, if we had relied on the 584.90 Exchange Ratio (rather than the 636 Exchange Ratio), would that revision to the Exchange Ratio, by itself, have changed our March 17 Opinion?

1. We hereby confirm that (provided there were no other changes or revisions to the Management Representation Letter dated March 17, 2025), on March 17 (and subject to the same provisions and terms set forth in our March 17 Opinion), the FTICA conclusion presented in the March 17 Opinion would not change as a result of the foregoing update to the Exchange Ratio, **assuming that** Mesa's Legacy Shareholders will not hold less than 6% of the combined company's common stock on a fully diluted basis as a consequence of the Merger.

2. We have neither received nor analyzed any updated information or undertaken to do so, nor have we updated or brought current our March 17 Opinion, except as expressly set forth in paragraph 1 immediately above.

3. This letter is provided for the sole benefit to and use by Mesa's board of directors in its consideration of the Merger. It is not intended to be and does not constitute a recommendation to any securityholder of the Company or Republic or any other person as to how such person should proceed with respect to the Proposed Transaction.

Very truly yours,

FTI Capital Advisors, LLC

FTI Capital Advisors, LLC is a wholly owned subsidiary of FTI Consulting, Inc. B-7

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#### PART II

#### INFORMATION NOT REQUIRED IN PROXY STATEMENT/PROSPECTUS

#### Item 20 (Form S-4) / Item 14 (Form S-1). Indemnification of Directors and Officers
Nevada law provides that Mesa's directors and officers will not be individually liable to Mesa, Mesa shareholders or Mesa creditors for any damages as a result of any act or omission as a director or officer other than in circumstances where the presumption that the director or officer acted in good faith, on an informed basis and with a view to the interests of Mesa has been rebutted, and it is proven that the director or officer breaches his or her fiduciary duty to Mesa and such breach involves intentional misconduct, fraud or a knowing violation of law.

Nevada law also allows a corporation to indemnify officers and directors for actions for which a director or officer either would not be liable pursuant to the limitation of liability provisions of Nevada law or where he or she acted in good faith and in a manner which he or she reasonably believed to be in or not opposed to Mesa's best interests, and, in the case of an action not by or in the right of Mesa and with respect to any criminal action or proceeding, had no reasonable cause to believe the conduct was unlawful. Mesa's Charter and second amended and restated bylaws, as amended, provide indemnification for Mesa's directors and officers to the fullest extent permitted by Nevada law. Mesa has entered into, and expect to continue to enter into, agreements to indemnify Mesa's directors as determined by Mesa's board of directors. Mesa has entered into, and in the future may enter into, indemnification agreements with each of Mesa's directors that may, in some cases, be broader than the specific indemnification provisions under Nevada law. In addition, Mesa's Charter includes provisions that eliminate the personal liability of Mesa's directors and officers for monetary damages resulting from certain breaches of fiduciary duties as a director or officer to the fullest extent permitted by Nevada law. The effect of these provisions is to restrict Mesa's rights and the rights of Mesa's shareholders in derivative suits to recover monetary damages against a director for breach of fiduciary duties as a director, except that a director will be personally liable for acts or omissions not in good faith or in a manner which he or she did not reasonably believe to be in or not opposed to Mesa's best interest if, subject to certain exceptions, the act or failure to act constituted a breach of fiduciary duty and such breach involved intentional misconduct, fraud or knowing violations of law. Mesa is also authorized to carry directors' and officers' insurance to protect Mesa's directors, officers, employees and agents against certain liabilities.

The limitation of liability and indemnification provisions in Mesa's Charter, second amended and restated bylaws, as amended, and indemnification agreements may discourage shareholders from bringing a lawsuit against directors or officers for breach of their fiduciary duties. These provisions may also reduce the likelihood of derivative litigation against directors and officers, even though an action, if successful, might benefit Mesa and its shareholders. A shareholder's investment may be harmed to the extent Mesa pays the costs of settlement and damage awards against directors and officers pursuant to these indemnification provisions. However, these provisions do not limit or eliminate Mesa's rights, or those of any shareholder, to seek non-monetary relief such as an injunction or rescission in the event of a breach of a director's or officer's fiduciary duties. Moreover, the provisions do not alter the liability of directors under federal securities laws. At present, there is no pending litigation or proceeding involving any of Mesa's directors or officers as to which indemnification is required or permitted, and Mesa is not aware of any threatened litigation or proceeding that may result in a claim for indemnification.

#### Item 21 (Form S-4) / Item 16 (Form S-1). Exhibits and Financial Statement Schedules
(a) *Exhibit Index* 

A list of exhibits filed with this registration statement on Form S-4/S-1 is set forth on the Exhibit Index and is incorporated herein by reference.

(b) *Financial Statements* 

The financial statements filed with this registration statement on Form S-4/S-1 are set forth on the Financial Statement Index and is incorporated herein by reference.

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#### Item 22 (Form S-4). Undertakings
(a) The registrant hereby undertakes:

(1) To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:

(i) To include any prospectus required by Section 10(a)(3) of the Securities Act;

(ii) To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20% change in the maximum aggregate offering price set forth in the "Filing Fee Table" table in the effective registration statement; and

(iii) To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement.

*Provided, however*, that paragraphs (a)(1)(i) and (a)(1)(ii) herein do not apply if the information required to be included in a post-effective amendment by those paragraphs is contained in reports filed with or furnished to the Commission by the registrant pursuant to Section 13 or Section 15(d) of the Exchange Act (15 U.S.C. 78m or 78o(d)) that are incorporated by reference in the registration statement.

(2) That, for the purpose of determining any liability under the Securities Act, each such post- effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

(3) To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.

(4) That prior to any public reoffering of the securities registered hereunder through use of a prospectus which is a part of this registration statement, by any person or party who is deemed to be an underwriter within the meaning of Rule 145(c), the issuer undertakes that such reoffering prospectus will contain the information called for by the applicable registration form with respect to reofferings by persons who may be deemed underwriters, in addition to the information called for by the other items of the applicable form.

(5) That every prospectus (i) that is filed pursuant to paragraph (a)(4) immediately preceding, or (ii) that purports to meet the requirements of Section 10(a)(3) of the Securities Act and is used in connection with an offering of securities subject to Rule 415, will be filed as a part of an amendment to the registration statement and will not be used until such amendment is effective, and that, for purposes of determining any liability under the Securities Act, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

(b) The undersigned registrant hereby undertakes that, for purposes of determining any liability under the Securities Act, each filing of the registrant's annual report pursuant to Section 13(a) or Section 15(d) of the Exchange Act (and, where applicable, each filing of an employee benefit plan's annual report pursuant to Section 15(d) of the Exchange Act) that is incorporated by reference in the registration statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

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(c) Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Commission such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Incorporated by Reference** | **Incorporated by Reference** | **Incorporated by Reference** | |
| **Exhibit**<br> **Number** | **Exhibit Description** | **Form** | **Date** | **Number** | <br>**Filed**<br>**Herewith** |
| &nbsp;&nbsp;&nbsp;&nbsp;2.1 | [Merger Agreement, dated April 4, 2025, between Mesa Air Group, Inc. and Republic Airway Holdings, Inc.](http://www.sec.gov/Archives/edgar/data/810332/000119312525075908/d944548dex21.htm) | 8-K | April 8, 2025 | 2.1 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;3.1 | [Second Amended and Restated Articles of Incorporation of the Registrant](http://www.sec.gov/Archives/edgar/data/0000810332/000119312518248663/d569448dex31.htm) | 8-K | August 14, 2018 | 3.1 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;3.2 | [Second Amended and Restated Bylaws of the Registrant](http://www.sec.gov/Archives/edgar/data/810332/000156459020056772/mesa-ex31_53.htm) | 8-K | December 10, 2020 | 3.1 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;3.3 | [Amendment to Second Amended and Restated Bylaws of Mesa Air Group, Inc., effective as of January 13, 2023](http://www.sec.gov/Archives/edgar/data/810332/000119312523012060/d278115dex32.htm) | 8-K | January 13, 2023 | 3.2 |  |
|  &nbsp;&nbsp;&nbsp;&nbsp;3.4^^ | [Form of Certificate of Incorporation of Mesa Air Group, Inc., to be renamed Republic Airways Holdings Inc.](http://www.sec.gov/Archives/edgar/data/0000810332/000119312525157722/d944307dex34.htm) |  |  |  |  |
|  &nbsp;&nbsp;&nbsp;&nbsp;3.5^^ | [Form of Bylaws of Mesa Air Group, Inc., to be renamed Republic Airways Holdings Inc.](http://www.sec.gov/Archives/edgar/data/0000810332/000119312525157722/d944307dex35.htm) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;4.1 | [Form of Common Stock Certificate](http://www.sec.gov/Archives/edgar/data/0000810332/000119312518238900/d573709dex41.htm) | S-1/A | August 6, 2018 | 4.1 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;4.2 | [Description of Capital Stock](http://www.sec.gov/Archives/edgar/data/810332/000095017025070705/mesa-ex4_2.htm) | 10-K | May 14, 2025 | 4.2 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;4.3 | [Warrant Agreement, dated October 30, 2020, between Mesa Air Group, Inc. and the United States Department of the Treasury](http://www.sec.gov/Archives/edgar/data/0000810332/000156459020057000/mesa-ex43_245.htm) | 10-K | December 14, 2020 | 4.3 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;4.4 | [Form of Warrant (incorporated by reference to Annex B to Exhibit 4.3)](http://www.sec.gov/Archives/edgar/data/0000810332/000156459020057000/mesa-ex43_245.htm) | 10-K | December 14, 2020 | 4.4 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;5.1 | [Opinion of Potter Anderson & Corroon LLP](d944307dex51.htm) |  |  |  | X |
| &nbsp;&nbsp;&nbsp;&nbsp;8.1 | [Form of Tax Opinion of DLA Piper LLP (US)](d944307dex81.htm) |  |  |  | X |
| &nbsp;&nbsp;&nbsp;&nbsp;8.2 | [Form of Tax Opinion of Simpson Thacher & Bartlett LLP](d944307dex82.htm) |  |  |  | X |
|  10.1# | [Mesa Air Group, Inc. 2018 Equity Incentive Plan and related forms of agreement](http://www.sec.gov/Archives/edgar/data/0000810332/000156459019032370/mesa-ex991_8.htm) | S-8 | August 16, 2019 | 99.1 |  |
|  10.2# | [Form of Indemnification Agreement between the Registrant and each of its directors and executive officers](http://www.sec.gov/Archives/edgar/data/810332/000119312518217950/d573709dex105.htm) | S-1 | July 13, 2018 | 10.5 |  |

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|:---|:---|:---|:---|:---|:---|
| | | **Incorporated by Reference** | **Incorporated by Reference** | **Incorporated by Reference** | |
| **Exhibit**<br> **Number** | **Exhibit Description** | **Form** | **Date** | **Number** | <br>**Filed**<br>**Herewith** |
|  10.3# | [Amended and Restated Employment Agreement between the Registrant and Jonathan G. Ornstein, dated July 26, 2018](http://www.sec.gov/Archives/edgar/data/810332/000119312518230309/d573709dex107.htm) | S-1/A | July 30, 2018 | 10.7 |  |
|  10.4# | [Amended and Restated Employment Agreement between the Registrant and Michael J. Lotz, dated July 26, 2018](http://www.sec.gov/Archives/edgar/data/810332/000119312518230309/d573709dex108.htm) | S-1/A | July 30, 2018 | 10.8 |  |
|  10.5# | [Amended and Restated Employment Agreement between the Registrant and Brian S. Gillman, dated December 2, 2024](http://www.sec.gov/Archives/edgar/data/810332/000095017025070705/mesa-ex10_5.htm) | 10-K | May 14, 2025 | 10.5 |  |
|  10.6.1†† | [Second Amended and Restated United Capacity Purchase Agreement between United Airlines, Inc. and Mesa Airlines, Inc. dated November 4, 2020](http://www.sec.gov/Archives/edgar/data/0000810332/000156459020057000/mesa-ex101015_201.htm) | 10-K | December 14, 2020 | 10.10.15 |  |
|  10.6.2†† | [First Amendment to the Second Amended and Restated United Capacity Purchase Agreement between United Airlines, Inc. and Mesa Airlines, Inc. dated September 22, 2021](http://www.sec.gov/Archives/edgar/data/810332/000156459021060016/mesa-ex10114_269.htm) | 10-K | December 10, 2021 | 10.11.4 |  |
|  10.6.3†† | [Second Amendment to the Second Amended and Restated United Capacity Purchase Agreement between United Airlines, Inc. and Mesa Airlines, Inc. dated February 4, 2022](http://www.sec.gov/Archives/edgar/data/810332/000156459022018911/mesa-ex101_148.htm) | 10-Q | May 9, 2022 | 10.1 |  |
|  10.6.4†† | [Third Amendment to the Second Amended and Restated United Capacity Purchase Agreement between United Airlines, Inc. and Mesa Airlines, Inc. dated July 11, 2022](http://www.sec.gov/Archives/edgar/data/810332/000156459022028498/mesa-ex103_811.htm) | 10-Q | August 8, 2022 | 10.3 |  |
|  10.6.5†† | [Fourth Amendment to the Second Amended and Restated United Capacity Purchase Agreement between United Airlines, Inc. and Mesa Airlines, Inc. dated August 8, 2022](http://www.sec.gov/Archives/edgar/data/810332/000156459022039954/mesa-ex107_47.htm) | 10-K | December 29, 2022 | 10.7.5 |  |
|  10.6.6†† | [Third Amended and Restated Capacity Purchase Agreement among United Airlines, Inc., Mesa Airlines, Inc., and Mesa Air Group, Inc., dated December 27, 2022](http://www.sec.gov/Archives/edgar/data/810332/000095017023002364/mesa-ex10_2.htm) | 10-Q | February 9, 2023 | 10.2 |  |
|  10.6.7†† | [First Amendment to the Third Amended and Restated Capacity Purchase Agreement among United Airlines, Inc., and Mesa Airlines, Inc., dated January 11, 2023](http://www.sec.gov/Archives/edgar/data/810332/000095017024064406/mesa-ex10_10.htm) | 10-Q | May 24, 2024 | 10.10.10 |  |
|  10.6.8†† | [Second Amendment to the Third Amended and Restated Capacity Purchase Agreement among United Airlines, Inc., and Mesa Airlines, Inc., dated January 19, 2024](http://www.sec.gov/Archives/edgar/data/810332/000095017025070705/mesa-ex10_7-8.htm) | 10-K | May 14, 2025 | 10.7.8 |  |
|  10.6.9†† | [Third Amendment to the Third Amended and Restated Capacity Purchase Agreement among United Airlines, Inc., and Mesa Airlines, Inc., dated May 8, 2024](http://www.sec.gov/Archives/edgar/data/810332/000095017025070705/mesa-ex10_7-9.htm) | 10-K | May 14, 2025 | 10.7.9 |  |

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|:---|:---|:---|:---|:---|:---|
| | | **Incorporated by Reference** | **Incorporated by Reference** | **Incorporated by Reference** | |
| **Exhibit**<br> **Number** | **Exhibit Description** | **Form** | **Date** | **Number** | <br>**Filed**<br>**Herewith** |
|  10.6.10†† | [Fourth Amendment to the Third Amended and Restated Capacity Purchase Agreement among United Airlines, Inc., and Mesa Airlines, Inc., dated December 23, 2024](http://www.sec.gov/Archives/edgar/data/810332/000095017025070705/mesa-ex10_7-10.htm) | 10-K | May 14, 2025 | 10.7.10 |  |
|  10.7†† | [Aircraft Purchase Agreement between Mesa Airlines, Inc. and United Airlines, Inc. dated September 27, 2022](http://www.sec.gov/Archives/edgar/data/810332/000156459022039954/mesa-ex108_474.htm) | 10-K | December 29, 2022 | 10.8 |  |
|  10.8.1†† | [Amended and Restated Capacity Purchase Agreement among the Registrant, Mesa Airlines, Inc. and American Airlines, Inc. dated November 19, 2020, effective as of January 1, 2021](http://www.sec.gov/Archives/edgar/data/0000810332/000156459021005051/mesa-ex1011_7.htm) | 10-Q | February 9, 2021 | 10.1.1 |  |
|  10.8.2†† | [First Amendment to the Amended and Restated Capacity Purchase Agreement among the Registrant, Mesa Airlines, Inc. and American Airlines, Inc. dated November 19, 2020, effective January 1, 2021](http://www.sec.gov/Archives/edgar/data/0000810332/000156459021005051/mesa-ex1012_6.htm) | 10-Q | February 9, 2021 | 10.1.2 |  |
|  10.8.3†† | [Amendment No. 2 to the Amended and Restated Capacity Purchase Agreement among the Registrant, Mesa Airlines, Inc. and American Airlines, Inc. dated April 9, 2021](http://www.sec.gov/Archives/edgar/data/0000810332/000156459021042720/mesa-ex1021_307.htm) | 10-Q | August 9, 2021 | 10.2.1 |  |
|  10.8.4†† | [Amendment No. 3 to the Amended and Restated Capacity Purchase Agreement among the Registrant, Mesa Airlines, Inc. and American Airlines, Inc. dated April 19, 2021](http://www.sec.gov/Archives/edgar/data/0000810332/000156459021042720/mesa-ex1022_260.htm) | 10-Q | August 9, 2021 | 10.2.2 |  |
|  10.8.5†† | [Amendment No. 4 to the Amended and Restated Capacity Purchase Agreement among the Registrant, Mesa Airlines, Inc. and American Airlines, Inc. dated June 9, 2021](http://www.sec.gov/Archives/edgar/data/0000810332/000156459021042720/mesa-ex1023_259.htm) | 10-Q | August 9, 2021 | 10.2.3 |  |
|  10.8.6†† | [Amendment No. 5 to the Amended and Restated Capacity Purchase Agreement among the Registrant, Mesa Airlines, Inc. and American Airlines, Inc. dated August 9, 2021](http://www.sec.gov/Archives/edgar/data/810332/000156459021060016/mesa-ex10126_143.htm) | 10-K | December 10, 2021 | 10.12.6 |  |
|  10.8.7†† | [Amendment No.7 to the Amended and Restated Capacity Purchase Agreement among the Registrant, Mesa Airlines, Inc. and American Airlines, Inc. dated March 31, 2022](http://www.sec.gov/Archives/edgar/data/810332/000156459022018911/mesa-ex102_147.htm) | 10-Q | May 9, 2022 | 10.2 |  |
|  10.8.8†† | [Amendment No.8 to the Amended and Restated Capacity Purchase Agreement among the Registrant, Mesa Airlines, Inc. and American Airlines, Inc. dated June 10, 2022](http://www.sec.gov/Archives/edgar/data/810332/000156459022028498/mesa-ex101_812.htm) | 10-Q | August 8, 2022 | 10.1 |  |
|  10.8.9†† | [Amendment No.9 to the Amended and Restated Capacity Purchase Agreement among the Registrant, Mesa Airlines, Inc. and American Airlines, Inc. dated June 20, 2022](http://www.sec.gov/Archives/edgar/data/810332/000156459022028498/mesa-ex102_810.htm) | 10-Q | August 8, 2022 | 10.2 |  |

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|:---|:---|:---|:---|:---|:---|
| | | **Incorporated by Reference** | **Incorporated by Reference** | **Incorporated by Reference** | |
| **Exhibit**<br> **Number** | **Exhibit Description** | **Form** | **Date** | **Number** | <br>**Filed**<br>**Herewith** |
|  10.8.10†† | [Amendment No.10 to the Amended and Restated Capacity Purchase Agreement among the Registrant, Mesa Airlines, Inc. and American Airlines, Inc. dated July 28, 2022](http://www.sec.gov/Archives/edgar/data/810332/000156459022039954/mesa-ex109_162.htm) | 10-K | December 29, 2022 | 10.9.10 |  |
| 10.8.11 | [Amendment No.11 to the Amended and Restated Capacity Purchase Agreement among the Registrant, Mesa Airlines, Inc. and American Airlines, Inc. dated December 16, 2022](http://www.sec.gov/Archives/edgar/data/810332/000095017023002364/mesa-ex10_1.htm) | 10-Q | February 9, 2023 | 10.1 |  |
| 10.9.1 | [Credit and Guaranty Agreement among the Registrant, Mesa Airlines, Inc., Mesa Air Group Airline Inventory Management, L.L.C., the other guarantors party thereto from time to time, CIT Bank, N.A. and the other lenders party thereto, dated August 12, 2016](http://www.sec.gov/Archives/edgar/data/810332/000119312518230309/d573709dex10121.htm) | S-1/A | July 30, 2018 | 10.12.1 |  |
| 10.9.2 | [Amendment No. 1 to Credit Agreement among the Registrant, Mesa Airlines, Inc., Mesa Air Group Airline Inventory Management, L.L.C. and CIT Bank, N.A., dated June 5, 2017](http://www.sec.gov/Archives/edgar/data/810332/000119312518230309/d573709dex10122.htm) | S-1/A | July 30, 2018 | 10.12.2 |  |
| 10.9.3 | [Amendment No. 2 to Credit Agreement among the Registrant, Mesa Airlines, Inc., Mesa Air Group Airline Inventory Management, L.L.C. and CIT Bank, N.A., dated June 27, 2017](http://www.sec.gov/Archives/edgar/data/810332/000119312518230309/d573709dex10123.htm) | S-1/A | July 30, 2018 | 10.12.3 |  |
| 10.9.4 | [Amendment No. 3 to Credit Agreement among the Registrant, Mesa Airlines, Inc., Mesa Air Group Airline Inventory Management, L.L.C. and CIT Bank, N.A., dated September 19, 2017](http://www.sec.gov/Archives/edgar/data/810332/000119312518230309/d573709dex10124.htm) | S-1/A | July 30, 2018 | 10.12.4 |  |
| 10.9.5 | [Amendment No. 4 to Credit Agreement among the Registrant, Mesa Airlines, Inc., Mesa Air Group Airline Inventory Management, L.L.C. and CIT Bank, N.A., dated April 27, 2018](http://www.sec.gov/Archives/edgar/data/810332/000119312518230309/d573709dex10125.htm) | S-1/A | July 30, 2018 | 10.12.5 |  |
|  10.9.6†† | [Second Amended and Restated Credit and Guaranty Agreement, among the Registrant, Mesa Airlines, Inc., Mesa Air Group Airline Inventory Management, L.L.C. and CIT Bank, NA, dated as of June 30, 2022](http://www.sec.gov/Archives/edgar/data/810332/000095017023002364/mesa-ex10_6.htm) | 10-Q | February 9, 2023 | 10.6 |  |
|  10.9.7†† | [Amendment No. 1 to Second Amended and Restated Credit and Guaranty Agreement, dated December 27, 2022](http://www.sec.gov/Archives/edgar/data/810332/000095017023002364/mesa-ex10_4.htm) | 10-Q | February 9, 2023 | 10.4 |  |
|  10.9.8†† | [Amendment No. 2 to Second Amended and Restated Credit and Guaranty Agreement, dated January 27, 2023](http://www.sec.gov/Archives/edgar/data/810332/000095017023002364/mesa-ex10_5.htm) | 10-Q | February 9, 2023 | 10.5 |  |
|  10.9.9†† | [Amendment No. 3 to Second Amended and Restated Credit and Guaranty Agreement, dated September 6, 2023](http://www.sec.gov/Archives/edgar/data/810332/000095017024007799/mesa-ex10_11.htm) | 10-K | January 26, 2024 | 10.11 |  |

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##### [**Table of Contents**](#toc)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Incorporated by Reference** | **Incorporated by Reference** | **Incorporated by Reference** | |
| **Exhibit**<br> **Number** | **Exhibit Description** | **Form** | **Date** | **Number** | <br>**Filed**<br>**Herewith** |
|  10.9.10†† | [Waiver to Second Amended and Restated Credit and Guaranty Agreement, dated December 23, 2024](http://www.sec.gov/Archives/edgar/data/810332/000095017025070705/mesa-ex10_10-10.htm) | 10-K | May 14, 2025 | 10.10.10 |  |
| 10.10 | [Mortgage and Security Agreement among Mesa Airlines, Inc., Mesa Air Group Airline Inventory Management, L.L.C., the other grantors referred to therein and CIT Bank, N.A., dated August 12, 2016](http://www.sec.gov/Archives/edgar/data/810332/000119312518230309/d573709dex10131.htm) | S-1/A | July 30, 2018 | 10.13.1 |  |
| 10.11.1 | [Office Lease Agreement between the Registrant and DMB Property Ventures Limited Partnership, dated October 16, 1998](http://www.sec.gov/Archives/edgar/data/810332/000095012318004227/filename26.htm) | DRS | May 7, 2018 | 10.20.1 |  |
| 10.11.2 | [First Amendment to Lease between the Registrant and DMB Property Ventures Limited Partnership, dated March 9, 1999](http://www.sec.gov/Archives/edgar/data/810332/000095012318004227/filename27.htm) | DRS | May 7, 2018 | 10.20.2 |  |
| 10.11.3 | [Second Amendment to Lease between the Registrant and DMB Property Ventures Limited Partnership, dated November 8, 1999](http://www.sec.gov/Archives/edgar/data/810332/000095012318004227/filename28.htm) | DRS | May 7, 2018 | 10.20.3 |  |
| 10.11.4 | [Lease Amendment Three between the Registrant and CMD Realty Investment Fund IV, L.P., dated November 7, 2000](http://www.sec.gov/Archives/edgar/data/810332/000095012318004227/filename29.htm) | DRS | May 7, 2018 | 10.20.4 |  |
| 10.11.5 | [Lease Amendment Four between the Registrant and CMD Realty Investment Fund IV, L.P., dated May 15, 2001](http://www.sec.gov/Archives/edgar/data/810332/000095012318004227/filename30.htm) | DRS | May 7, 2018 | 10.20.5 |  |
| 10.11.6 | [Lease Amendment Five between the Registrant and CMD Realty Investment Fund IV, L.P., dated October 11, 2002](http://www.sec.gov/Archives/edgar/data/810332/000095012318004227/filename31.htm) | DRS | May 7, 2018 | 10.20.6 |  |
| 10.11.7 | [Lease Amendment Six between the Registrant and CMD Realty Investment Fund IV, L.P., dated April 1, 2003](http://www.sec.gov/Archives/edgar/data/810332/000095012318004227/filename32.htm) | DRS | May 7, 2018 | 10.20.7 |  |
| 10.11.8 | [Amended and Restated Lease Amendment Seven between the Registrant and CMD Realty Investment Fund IV, L.P., dated April 15, 2005](http://www.sec.gov/Archives/edgar/data/810332/000095012318004227/filename33.htm) | DRS | May 7, 2018 | 10.20.8 |  |
| 10.11.9 | [Lease Amendment Eight between the Registrant and CMD Realty Investment Fund IV, L.P., dated October 12, 2005](http://www.sec.gov/Archives/edgar/data/810332/000095012318004227/filename34.htm) | DRS | May 7, 2018 | 10.20.9 |  |
| 10.11.10 | [Lease Amendment Nine between the Registrant and Transwestern Phoenix Gateway, L.L.C., dated November 4, 2010](http://www.sec.gov/Archives/edgar/data/810332/000095012318004227/filename35.htm) | DRS | May 7, 2018 | 10.20.10 |  |
| 10.11.11 | [Lease Amendment Eleven between the Registrant and Phoenix Office Grand Avenue Partners, LLC, dated July 31, 2014](http://www.sec.gov/Archives/edgar/data/810332/000095012318004227/filename36.htm) | DRS | May 7, 2018 | 10.20.11 |  |
| 10.11.12 | [Lease Amendment Twelve between the Registrant and Phoenix Office Grand Avenue Partners, LLC, dated November 20, 2014](http://www.sec.gov/Archives/edgar/data/810332/000095012318004227/filename37.htm) | DRS | May 7, 2018 | 10.20.12 |  |

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##### [**Table of Contents**](#toc)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Incorporated by Reference** | **Incorporated by Reference** | **Incorporated by Reference** | |
| **Exhibit**<br> **Number** | **Exhibit Description** | **Form** | **Date** | **Number** | <br>**Filed**<br>**Herewith** |
| 10.12.1 | [Loan and Guarantee Agreement, dated as of October 30, 2020, among Mesa Airlines, Inc., as Borrower, the Guarantors party thereto from time to time, the United States Department of the Treasury, and The Bank of New York Mellon, as Administrative Agent and Collateral Agent](http://www.sec.gov/Archives/edgar/data/0000810332/000156459020057000/mesa-ex10221_1054.htm) | 10-K | December 14, 2020 | 10.22.1 |  |
| 10.12.2 | [Modification and Waiver Agreement, dated December 22, 2022, among Mesa Airlines, Inc., as Borrower, the Guarantor parties thereto from time to time, the United States Department of the Treasury, and the Bank of New York Mellon, as Administrative Agent and Collateral Agent](http://www.sec.gov/Archives/edgar/data/810332/000095017023002364/mesa-ex10_3.htm) | 10-Q | February 9, 2023 | 10.3 |  |
| 10.12.3 | [CCR Modification Agreement dated December 23, 2024, among Mesa Airlines, Inc., as Borrower, the Guarantor parties thereto from time to time, the United States Department of the Treasury, and the Bank of New York Mellon, as Administrative Agent and Collateral Agent](http://www.sec.gov/Archives/edgar/data/810332/000095017025070705/mesa-ex10_18-3.htm) | 10-Q | May 14, 2025 | 10.18.3 |  |
| 10.13 | [Fourteenth Amendment to Lease between the Registrant and BOF AZ Phoenix Gateway Center LLC, dated December 15, 2021](http://www.sec.gov/Archives/edgar/data/810332/000156459022004400/mesa-ex101_54.htm) | 10-Q | February 9, 2022 | 10.1 |  |
|  10.14†† | [Engine Sale and Purchase Agreement, dated December 27, 2022](http://www.sec.gov/Archives/edgar/data/810332/000095017023002364/mesa-ex10_7.htm) | 10-Q | February 9, 2023 | 10.7 |  |
| 10.15 | [Three Party Agreement, dated April 4, 2025, among Mesa Air Group, Inc., Mesa Airlines, Inc., Republic Airway Holdings, Inc., United Airlines, Inc. and Mesa Representative.](http://www.sec.gov/Archives/edgar/data/810332/000119312525075908/d944548dex101.htm) | 8-K | April 8, 2025 | 10.1 |  |
| 10.16 | [Registration Rights Agreement, dated July 10, 2025 between Republic Airways Holdings Inc. and each holder of shares of common stock listed on Schedule 1 thereto](d944307dex1016.htm) |  |  |  | X |
| 10.17 | [Form of Indemnification Agreement of the Surviving Corporation](d944307dex1017.htm) |  |  |  | X |
|  10.18# | [Republic Airways Holdings Inc. 2020 Omnibus Incentive Plan](d944307dex1018.htm) |  |  |  | X |
|  10.19# | [Republic Airways Holdings Inc. Long-Term Incentive Plan](d944307dex1019.htm) |  |  |  | X |
|  10.20# | [Form of Republic Airways Holdings Inc. Incentive Interest Award Agreement](d944307dex1020.htm) |  |  |  | X |
|  10.21# | [Form of Republic Airways Inc. Restricted Stock Unit Grant Notice and Agreement](d944307dex1021.htm) |  |  |  | X |
|  10.22.1# | [Second Amended and Restated Employment Agreement between Republic Airways Holdings Inc. and Joseph P. Allman, dated February 8, 2017](d944307dex10221.htm) |  |  |  | X |

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##### [**Table of Contents**](#toc)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Incorporated by Reference** | **Incorporated by Reference** | **Incorporated by Reference** | |
| **Exhibit**<br> **Number** | **Exhibit Description** | **Form** | **Date** | **Number** | <br>**Filed**<br>**Herewith** |
| 10.22.2 # | [First Amendment to Second Amended and Restated Employment Agreement between Republic Airways Holdings Inc. and Joseph P. Allman, dated November 14, 2017](d944307dex10222.htm) |  |  |  | X |
|  10.22.3# | [Second Amendment to Second Amended and Restated Employment Agreement between Republic Airways Holdings Inc. and Joseph P. Allman, dated November 27, 2017](d944307dex10223.htm) |  |  |  | X |
|  10.23.1# | [Amended and Restated Employment Agreement between Republic Airways Holdings Inc. and Paul K. Kinstedt, dated February 8, 2017](d944307dex10231.htm) |  |  |  | X |
|  10.23.2# | [First Amendment to Amended and Restated Employment Agreement between Republic Airways Holdings Inc. and Paul K. Kinstedt, dated November 14, 2017](d944307dex10232.htm) |  |  |  | X |
|  10.23.3# | [Second Amendment to Amended and Restated Employment Agreement between Republic Airways Holdings Inc. and Paul K. Kinstedt, dated November 27, 2017](d944307dex10233.htm) |  |  |  | X |
|  10.24.1# | [Amended and Restated Employment Agreement between Republic Airways Holdings Inc. and Matthew J. Koscal, dated February 8, 2017](d944307dex10241.htm) |  |  |  | X |
|  10.24.2# | [First Amendment to Amended and Restated Employment Agreement between Republic Airways Holdings Inc. and Matthew J. Koscal, dated November 14, 2017](d944307dex10242.htm) |  |  |  | X |
|  10.24.3# | [Second Amendment to Amended and Restated Employment Agreement between Republic Airways Holdings Inc. and Matthew J. Koscal, dated November 27, 2017](d944307dex10243.htm) |  |  |  | X |
|  10.25.1†† | [Capacity Purchase Agreement between American Airlines, Inc. and Republic Airline Inc., dated January 23, 2013](d944307dex10251.htm) |  |  |  | X |
|  10.25.2†† | [First Amendment to the Capacity Purchase Agreement between American Airlines, Inc. and Republic Airline Inc., dated February 28, 2013](d944307dex10252.htm) |  |  |  | X |
|  10.25.3†† | [Second Amendment to the Capacity Purchase Agreement between American Airlines, Inc. and Republic Airline Inc., dated September 2, 2016](d944307dex10253.htm) |  |  |  | X |
|  10.25.4†† | [Third Amendment to the Capacity Purchase Agreement between American Airlines, Inc. and Republic Airline Inc., dated October 12, 2017](d944307dex10254.htm) |  |  |  | X |

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##### [**Table of Contents**](#toc)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Incorporated by Reference** | **Incorporated by Reference** | **Incorporated by Reference** | |
| **Exhibit**<br> **Number** | **Exhibit Description** | **Form** | **Date** | **Number** | <br>**Filed**<br>**Herewith** |
|  10.25.5†† | [Fourth Amendment to the Capacity Purchase Agreement between American Airlines, Inc. and Republic Airline Inc., dated November 3, 2017](d944307dex10255.htm) |  |  |  | X |
|  10.25.6†† | [Fifth Amendment to the Capacity Purchase Agreement between American Airlines, Inc. and Republic Airline Inc., dated December 15, 2017](d944307dex10256.htm) |  |  |  | X |
|  10.25.7†† | [Sixth Amendment to the Capacity Purchase Agreement between American Airlines, Inc. and Republic Airline Inc., dated February 23, 2018](d944307dex10257.htm) |  |  |  | X |
|  10.25.8†† | [Seventh Amendment to the Capacity Purchase Agreement between American Airlines, Inc. and Republic Airline, Inc., dated September 28, 2018](d944307dex10258.htm) |  |  |  | X |
|  10.25.8.1†† | [Letter Agreement between American Airlines, Inc. and Republic Airline Inc., dated September 21, 2018](d944307dex102581.htm) |  |  |  | X |
|  10.25.9†† | [Eighth Amendment to the Capacity Purchase Agreement between American Airlines, Inc. and Republic Airline, Inc., dated April 23, 2019](d944307dex10259.htm) |  |  |  | X |
|  10.25.10†† | [Ninth Amendment to the Capacity Purchase Agreement between American Airlines, Inc. and Republic Airline, Inc., dated December 16, 2019](d944307dex102510.htm) |  |  |  | X |
|  10.25.11†† | [Tenth Amendment to the Capacity Purchase Agreement between American Airlines, Inc. and Republic Airline, Inc., dated April 8, 2020](d944307dex102511.htm) |  |  |  | X |
|  10.25.12†† | [Eleventh Amendment to the Capacity Purchase Agreement between American Airlines, Inc. and Republic Airline, Inc., dated June 22, 2020](d944307dex102512.htm) |  |  |  | X |
|  10.25.13†† | [Twelfth Amendment to the Capacity Purchase Agreement between American Airlines, Inc. and Republic Airline, Inc., dated December 17, 2020](d944307dex102513.htm) |  |  |  | X |
|  10.25.14†† | [Thirteenth Amendment to the Capacity Purchase Agreement between American Airlines, Inc. and Republic Airline, Inc., dated May 26, 2021](d944307dex102514.htm) |  |  |  | X |
|  10.25.15†† | [Fourteenth Amendment to the Capacity Purchase Agreement between American Airlines, Inc. and Republic Airline, Inc., dated May 28, 2021](d944307dex102515.htm) |  |  |  | X |
|  10.25.16†† | [Fifteenth Amendment to the Capacity Purchase Agreement between American Airlines, Inc. and Republic Airline, Inc., dated July 26, 2022](d944307dex102516.htm) |  |  |  | X |
|  10.25.17†† | [Sixteenth Amendment to the Capacity Purchase Agreement between American Airlines, Inc. and Republic Airline, Inc., dated February 24, 2023](d944307dex102517.htm) |  |  |  | X |

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##### [**Table of Contents**](#toc)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Incorporated by Reference** | **Incorporated by Reference** | **Incorporated by Reference** | |
| **Exhibit**<br> **Number** | **Exhibit Description** | **Form** | **Date** | **Number** | <br>**Filed**<br>**Herewith** |
|  10.25.18†† | [Seventeenth Amendment to the Capacity Purchase Agreement between American Airlines, Inc. and Republic Airline, Inc., dated April 12, 2023](d944307dex102518.htm) |  |  |  | X |
|  10.25.19†† | [Eighteenth Amendment to the Capacity Purchase Agreement between American Airlines, Inc. and Republic Airline, Inc., dated December 22, 2023](d944307dex102519.htm) |  |  |  | X |
|  10.25.20†† | [Nineteenth Amendment to the Capacity Purchase Agreement between American Airlines, Inc. and Republic Airline, Inc., dated July 27, 2025](d944307dex102520.htm) |  |  |  | X |
|  10.26.1†† | [Delta Connection Agreement among Delta Air Lines, Inc., Republic Airways Holdings, Inc. and Republic Airline, Inc., dated January 13, 2005](d944307dex10261.htm) |  |  |  | X |
|  10.26.2†† | [First Amendment to the Delta Connection Agreement among Delta Air Lines, Inc., Republic Airways Holdings, Inc. and Shuttle America Corp., dated March 12, 2007](d944307dex10262.htm) |  |  |  | X |
|  10.26.3†† | [Second Amendment to the Delta Connection Agreement among Delta Air Lines, Inc., Republic Airways Holdings, Inc. and Shuttle America Corp., dated August 21, 2007](d944307dex10263.htm) |  |  |  | X |
|  10.26.4†† | [Third Amendment to the Delta Connection Agreement among Delta Air Lines, Inc., Republic Airways Holdings, Inc. and Shuttle America Corp., dated January 31, 2011](d944307dex10264.htm) |  |  |  | X |
|  10.26.5†† | [Fourth Amendment to the Delta Connection Agreement among Delta Air Lines, Inc., Republic Airways Holdings, Inc. and Shuttle America Corp., dated April 26, 2011](d944307dex10265.htm) |  |  |  | X |
|  10.26.6†† | [Fifth Amendment to the Delta Connection Agreement among Delta Air Lines, Inc., Republic Airways Holdings Inc. and Shuttle America Corp., dated May 1, 2012](d944307dex10266.htm) |  |  |  | X |
|  10.26.7†† | [Sixth Amendment to the Delta Connection Agreement among Delta Air Lines, Inc., Republic Airways Holdings, Inc. and Shuttle America Corp., dated December 18, 2014](d944307dex10267.htm) |  |  |  | X |
|  10.26.8†† | [Seventh Amendment to the Delta Connection Agreement among Delta Air Lines, Inc., Republic Airways Holdings Inc. and Shuttle America Corp., dated December 11, 2014](d944307dex10268.htm) |  |  |  | X |

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##### [**Table of Contents**](#toc)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Incorporated by Reference** | **Incorporated by Reference** | **Incorporated by Reference** | |
| **Exhibit**<br> **Number** | **Exhibit Description** | **Form** | **Date** | **Number** | <br>**Filed**<br>**Herewith** |
|  10.26.9†† | [Eighth Amendment to the Delta Connection Agreement among Delta Air Lines, Inc., Republic Airways Holdings Inc. and Shuttle America Corp., dated March 23, 2016](d944307dex10269.htm) |  |  |  | X |
|  10.26.10†† | [Ninth Amendment to the Delta Connection Agreement among Delta Air Lines, Inc., Republic Airways Holdings Inc. and Shuttle America Corp., dated December 9, 2016](d944307dex102610.htm) |  |  |  | X |
|  10.26.11†† | [Tenth Amendment to the Delta Connection Agreement among Delta Air Lines, Inc., Republic Airways Holdings Inc. and Shuttle America Corp., dated March 10, 2017](d944307dex102611.htm) |  |  |  | X |
|  10.26.12†† | [Eleventh Amendment to the Delta Connection Agreement among Delta Air Lines, Inc., Republic Airways Holdings Inc. and Shuttle America Corp., dated May 15, 2018](d944307dex102612.htm) |  |  |  | X |
|  10.26.13†† | [Twelfth Amendment to the Delta Connection Agreement among Delta Air Lines, Inc., Republic Airways Holdings Inc. and Shuttle America Corp., dated May 9, 2019](d944307dex102613.htm) |  |  |  | X |
|  10.26.14†† | [Thirteenth Amendment to the Delta Connection Agreement among Delta Air Lines, Inc., Republic Airways Holdings Inc. and Shuttle America Corp., dated May 31, 2019](d944307dex102614.htm) |  |  |  | X |
|  10.26.15†† | [Fourteenth Amendment to the Delta Connection Agreement among Delta Air Lines, Inc., Republic Airways Holdings Inc. and Shuttle America Corp., dated July 30, 2019](d944307dex102615.htm) |  |  |  | X |
|  10.26.16†† | [Fifteenth Amendment to the Delta Connection Agreement among Delta Air Lines, Inc., Republic Airways Holdings Inc. and Shuttle America Corp., dated July 22, 2020](d944307dex102616.htm) |  |  |  | X |
|  10.26.17†† | [Sixteenth Amendment to the Delta Connection Agreement among Delta Air Lines, Inc., Republic Airways Holdings Inc. and Shuttle America Corp., dated October 21, 2020](d944307dex102617.htm) |  |  |  | X |
|  10.26.18†† | [Seventeenth Amendment to the Delta Connection Agreement among Delta Air Lines, Inc., Republic Airways Holdings Inc. and Shuttle America Corp., dated January 12, 2021](d944307dex102618.htm) |  |  |  | X |
|  10.26.19†† | [Eighteenth Amendment to the Delta Connection Agreement among Delta Air Lines, Inc., Republic Airways Holdings Inc. and Shuttle America Corp., dated April 30, 2021](d944307dex102619.htm) |  |  |  | X |

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##### [**Table of Contents**](#toc)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Incorporated by Reference** | **Incorporated by Reference** | **Incorporated by Reference** | |
| **Exhibit**<br> **Number** | **Exhibit Description** | **Form** | **Date** | **Number** | <br>**Filed**<br>**Herewith** |
|  10.26.20†† | [Nineteenth Amendment to the Delta Connection Agreement among Delta Air Lines, Inc., Republic Airways Holdings Inc. and Shuttle America Corp., dated June 29, 2021](d944307dex102620.htm) |  |  |  | X |
|  10.26.21†† | [Twentieth Amendment to the Delta Connection Agreement among Delta Air Lines, Inc., Republic Airways Holdings Inc. and Shuttle America Corp., dated September 2, 2021](d944307dex102621.htm) |  |  |  | X |
|  10.26.22†† | [Twenty-first Amendment to the Delta Connection Agreement among Delta Air Lines, Inc., Republic Airways Holdings Inc. and Shuttle America Corp., dated September 30, 2021](d944307dex102622.htm) |  |  |  | X |
|  10.26.23†† | [Twenty-second Amendment to the Delta Connection Agreement among Delta Air Lines, Inc., Republic Airways Holdings Inc. and Shuttle America Corp., dated March 31, 2022](d944307dex102623.htm) |  |  |  | X |
|  10.26.24†† | [Twenty-third Amendment to the Delta Connection Agreement among Delta Air Lines, Inc., Republic Airways Holdings Inc. and Shuttle America Corp., dated January 18, 2023](d944307dex102624.htm) |  |  |  | X |
|  10.26.25†† | [Twenty-fourth Amendment to the Delta Connection Agreement among Delta Air Lines, Inc., Republic Airways Holdings Inc. and Shuttle America Corp., dated July 23, 2024](d944307dex102625.htm) |  |  |  | X |
|  10.27.1†† | [United Express Agreement between United Air Lines, Inc. and Shuttle America Corp., dated December 28, 2006](d944307dex10271.htm) |  |  |  | X |
|  10.27.2†† | [First Amendment to the United Express Agreement between United Air Lines, Inc. and Shuttle America Corp., dated August 21, 2007](d944307dex10272.htm) |  |  |  | X |
|  10.27.3†† | [Fourth Amendment to the United Express Agreement between United Air Lines, Inc. and Shuttle America Corp., dated March 15, 2010](d944307dex10273.htm) |  |  |  | X |
|  10.27.4†† | [Fifth Amendment to the United Express Agreement between United Air Lines, Inc. and Shuttle America Corp., dated January 4, 2011](d944307dex10274.htm) |  |  |  | X |
|  10.27.5†† | [Sixth Amendment to the United Express Agreement between United Air Lines, Inc. and Shuttle America Corp., dated June 20, 2011](d944307dex10275.htm) |  |  |  | X |
|  10.27.6†† | [Seventh Amendment to the United Express Agreement between United Air Lines, Inc. and Shuttle America Corporation, dated September 16, 2014](d944307dex10276.htm) |  |  |  | X |

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##### [**Table of Contents**](#toc)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Incorporated by Reference** | **Incorporated by Reference** | **Incorporated by Reference** | |
| **Exhibit**<br> **Number** | **Exhibit Description** | **Form** | **Date** | **Number** | <br>**Filed**<br>**Herewith** |
|  10.27.7†† | [Eighth Amendment to the United Express Agreement between United Air Lines, Inc. and Shuttle America Corporation, dated August 24, 2015](d944307dex10277.htm) |  |  |  | X |
|  10.27.8†† | [Tenth Amendment to the United Express Agreement between United Air Lines, Inc. and Shuttle America Corporation, dated October 13, 2015](d944307dex10278.htm) |  |  |  | X |
|  10.27.9†† | [Eleventh Amendment to the United Express Agreement between United Air Lines, Inc. and Shuttle America Corporation, dated December 10, 2015](d944307dex10279.htm) |  |  |  | X |
|  10.27.10†† | [Twelfth Amendment to the United Express Agreement between United Air Lines, Inc. and Shuttle America Corporation, dated May 1, 2015](d944307dex102710.htm) |  |  |  | X |
|  10.27.11†† | [Thirteenth Amendment to the United Express Agreement between United Air Lines, Inc. and Shuttle America Corporation, dated February 5, 2016](d944307dex102711.htm) |  |  |  | X |
|  10.27.12†† | [Fourteenth Amendment to the United Express Agreement between United Air Lines, Inc., Republic Airline Inc. and Shuttle America Corporation, dated May 27, 2016](d944307dex102712.htm) |  |  |  | X |
|  10.27.13†† | [Fifteenth Amendment to the United Express Agreement between United Air Lines, Inc., Republic Airline Inc. and Shuttle America Corporation, dated November 15, 2016](d944307dex102713.htm) |  |  |  | X |
|  10.27.14†† | [Sixteenth Amendment to the United Express Agreement between United Air Lines, Inc., Republic Airline Inc. and Shuttle America Corporation, dated August 19, 2020](d944307dex102714.htm) |  |  |  | X |
|  10.27.15†† | [Seventeenth Amendment to the United Express Agreement between United Air Lines, Inc., Republic Airline Inc. and Shuttle America Corporation, dated December 30, 2020](d944307dex102715.htm) |  |  |  | X |
|  10.27.16†† | [Eighteenth Amendment to the United Express Agreement between United Air Lines, Inc., Republic Airline Inc. and Shuttle America Corporation, dated September 29, 2021](d944307dex102716.htm) |  |  |  | X |
|  10.27.17†† | [Nineteenth Amendment to the United Express Agreement between United Air Lines, Inc., Republic Airline Inc. and Shuttle America Corporation, dated September 30, 2021](d944307dex102717.htm) |  |  |  | X |

---

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##### [**Table of Contents**](#toc)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Incorporated by Reference** | **Incorporated by Reference** | **Incorporated by Reference** | |
| **Exhibit**<br> **Number** | **Exhibit Description** | **Form** | **Date** | **Number** | <br>**Filed**<br>**Herewith** |
|  10.27.18†† | [Twentieth Amendment to the United Express Agreement between United Air Lines, Inc., Republic Airline Inc. and Shuttle America Corporation, dated January 25, 2023](d944307dex102718.htm) |  |  |  | X |
|  10.27.19†† | [Twenty-first Amendment to the United Express Agreement between United Air Lines, Inc., Republic Airline Inc. and Shuttle America Corporation, dated May 31, 2024](d944307dex102719.htm) |  |  |  | X |
|  10.27.20†† | [Amended & Restated United Express Agreement between United Air Lines, Inc. and Shuttle America Corp., dated January 25, 2023](d944307dex102720.htm) |  |  |  | X |
|  10.27.21†† | [Amendment No. 1 to the Amended and Restated United Express Agreement between United Air Lines, Inc. and Shuttle America Corp., dated April 4, 2025](d944307dex102721.htm) |  |  |  | X |
|  10.27.22†† | [Letter Agreement, between United Air Lines, Inc. and Republic Airways Holdings Inc., dated April 4, 2025](d944307dex102722.htm) |  |  |  | X |
|  10.27.23†† | [Form of Capacity Purchase Agreement among United Airlines, Inc. and the parties named therein (incorporated by reference to Exhibit 1 to Exhibit 10.27.22)](d944307dex102722.htm#ii944307_225) |  |  |  | X |
|  10.28.1†† | [Purchase Agreement COM0448-18 between Embraer S.A. and Republic Airline Inc., dated December 15, 2018](d944307dex10281.htm) |  |  |  | X |
|  10.28.2†† | [Letter Agreement between Embraer S.A. and Republic Airline Inc., dated December 15, 2018](d944307dex10282.htm) |  |  |  | X |
|  10.28.3†† | [Amendment No. 1 to Purchase Agreement COM0448-18 between Embraer S.A. and Republic Airways Inc., dated as of May 29, 2019](d944307dex10283.htm) |  |  |  | X |
|  10.28.4†† | [Amendment No. 2 to Purchase Agreement COM0448-18 between Embraer S.A. and Republic Airways Inc., dated as of August 26, 2019](d944307dex10284.htm) |  |  |  | X |
|  10.28.5†† | [Amendment No. 3 to Purchase Agreement COM0448-18 between Embraer S.A. and Republic Airways Inc., dated as of November 29, 2019](d944307dex10285.htm) |  |  |  | X |
|  10.28.6†† | [Amendment No. 4 to Purchase Agreement COM0448-18 between Yaborã Indústria Aeronáutica S.A. and Republic Airways Inc., dated as of April 6, 2020](d944307dex10286.htm) |  |  |  | X |

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##### [**Table of Contents**](#toc)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Incorporated by Reference** | **Incorporated by Reference** | **Incorporated by Reference** | |
| **Exhibit**<br> **Number** | **Exhibit Description** | **Form** | **Date** | **Number** | <br>**Filed**<br>**Herewith** |
|  10.28.7†† | [Amendment No. 5 to Purchase Agreement COM0448-18 between Yaborã Indústria Aeronáutica S.A. and Republic Airways Inc., dated as of December 17, 2020](d944307dex10287.htm) |  |  |  | X |
|  10.28.8†† | [Amendment No. 1 to Letter Agreement COM0449-18 between Yaborã Indústria Aeronáutica S.A. and Republic Airways Inc., dated as of December 17, 2020](d944307dex10288.htm) |  |  |  | X |
|  10.28.9†† | [Amendment No. 6 to Purchase Agreement COM0448-18 between Yaborã Indústria Aeronáutica S.A. and Republic Airways Inc., dated as of April 30, 2021](d944307dex10289.htm) |  |  |  | X |
|  10.28.10†† | [Amendment No. 7 to Purchase Agreement COM0448-18 between Embraer S.A., Yaborã Indústria Aeronáutica S.A., and Republic Airways Inc., dated as of November 19, 2021](d944307dex102810.htm) |  |  |  | X |
|  10.28.11†† | [Amendment No. 8 to Purchase Agreement COM0448-18 between Embraer S.A. and Republic Airways Inc., dated as of February 8, 2022](d944307dex102811.htm) |  |  |  | X |
|  10.28.12†† | [Amendment No. 9 to Purchase Agreement COM0448-18 between Embraer S.A. and Republic Airways Inc., dated as of September 27, 2022](d944307dex102812.htm) |  |  |  | X |
|  10.28.13†† | [Amendment No. 10 to Purchase Agreement COM0448-18 between Embraer S.A. and Republic Airways Inc., dated as of September 21, 2023](d944307dex102813.htm) |  |  |  | X |
|  10.28.14†† | [Amendment No. 2 to Letter Agreement COM0449-18 between Embraer S.A. and Republic Airways Inc., dated as of September 21, 2023](d944307dex102814.htm) |  |  |  | X |
|  10.28.15†† | [Amendment No. 11 to Purchase Agreement COM0448-18 between Embraer S.A. and Republic Airways Inc., dated as of March 27, 2024](d944307dex102815.htm) |  |  |  | X |
|  10.28.16†† | [Amendment No. 12 to Purchase Agreement COM0448-18 between Embraer S.A. and Republic Airways Inc., dated as of June 18, 2024](d944307dex102816.htm) |  |  |  | X |
|  10.28.17†† | [Amendment No. 13 to Purchase Agreement COM0448-18 between Embraer S.A. and Republic Airways Inc., dated as of April 30, 2025](d944307dex102817.htm) |  |  |  | X |

---

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##### [**Table of Contents**](#toc)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Incorporated by Reference** | **Incorporated by Reference** | **Incorporated by Reference** | |
| **Exhibit**<br> **Number** | **Exhibit Description** | **Form** | **Date** | **Number** | <br>**Filed**<br>**Herewith** |
| 10.29 | [Loan and Guarantee Agreement, dated as of November 6, 2020, among Republic Airways Inc., Republic Airways Holdings Inc., and the U.S. Department of the Treasury](d944307dex1029.htm) |  |  |  | X |
| 10.30.1 | [Amended and Restated Warrant Agreement, dated as of November 18, 2020, between Republic Airways Holdings Inc. and the U.S. Department of the Treasury](d944307dex10301.htm) |  |  |  | X |
| 10.30.2 | [Form of Warrant (incorporated by reference to Annex B to Exhibit 10.30.1)](d944307dex10301.htm) |  |  |  | X |
| 10.31.1 | [Warrant Agreement, dated as of January 15, 2021, between Republic Airways Holdings Inc. and the U.S. Department of the Treasury](d944307dex10311.htm) |  |  |  | X |
| 10.31.2 | [Form of Warrant (incorporated by reference to Annex B to Exhibit 10.31.1)](d944307dex10311.htm) |  |  |  | X |
| 10.32.1 | [Payroll Support Agreement Extension Agreement, dated as of January 15, 2021, between Republic Airways, Inc. and the U.S. Department of the Treasury](d944307dex10321.htm) |  |  |  | X |
| 10.32.2 | [Promissory Note, dated as of January 15, 2021, issued by Republic Airways, Inc. and guaranteed by Republic Airways Holdings Inc. to the U.S. Department of the Treasury](d944307dex10322.htm) |  |  |  | X |
| 10.33.1 | [Warrant Agreement, dated as of June 10, 2021, between Republic Airways Holdings Inc. and the U.S. Department of the Treasury](d944307dex10331.htm) |  |  |  | X |
| 10.33.2 | [Form of Warrant (incorporated by reference to Annex B to Exhibit 10.33.1)](d944307dex10331.htm) |  |  |  | X |
| 10.34 | [Payroll Support Agreement, dated as of June 10, 2021, between Republic Airways, Inc. and the U.S. Department of the Treasury](d944307dex1034.htm) |  |  |  | X |
| 10.35 | [Promissory Note, dated as of June 10, 2021, issued by Republic Airways, Inc. and guaranteed by Republic Airways Holdings Inc. to the U.S. Department of the Treasury](d944307dex1035.htm) |  |  |  | X |
|  10.36^^ | [Form of Escrow Agreement by and between Mesa Air Group, Inc., Mesa Shareholder Representative LLC, United Airlines, Inc. and Computershare Trust Company](http://www.sec.gov/Archives/edgar/data/0000810332/000119312525157722/d944307dex1036.htm) |  |  |  |  |
|  10.37# | [Republic Airways Holdings Inc. 2025 Equity Incentive Plan](d944307dex1037.htm) |  |  |  | X |
|  10.38# | [Separation and Consulting Agreement, General Release of Claims and Covenant Not to Sue between Mesa Air Group, Inc. and Jonathan G. Ornstein, dated April 4, 2025](d944307dex1038.htm) |  |  |  | X |

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##### [**Table of Contents**](#toc)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Incorporated by Reference** | **Incorporated by Reference** | **Incorporated by Reference** | |
| **Exhibit**<br> **Number** | **Exhibit Description** | **Form** | **Date** | **Number** | <br>**Filed**<br>**Herewith** |
|  10.39# | [Separation and Consulting Agreement, General Release of Claims and Covenant Not to Sue between Mesa Air Group, Inc. and Michael J. Lotz, dated April 4, 2025](d944307dex1039.htm) |  |  |  | X |
|  10.40# | [Separation and Consulting Agreement, General Release of Claims and Covenant Not to Sue between Mesa Air Group, Inc. and Brian S. Gillman, dated April 4, 2025](d944307dex1040.htm) |  |  |  | X |
|  21.1^^ | [List of subsidiaries of the Registrant](http://www.sec.gov/Archives/edgar/data/0000810332/000119312525157722/d944307dex211.htm) |  |  |  |  |
| 23.1 | [Consent of Marcum LLP, independent registered public accounting firm of Mesa Air Group, Inc.](d944307dex231.htm) |  |  |  | X |
| 23.2 | [Consent of RSM US LLP, former independent registered public accounting firm of Mesa Air Group, Inc.](d944307dex232.htm) |  |  |  | X |
| 23.3 | [Consent of Ernst & Young LLP, former independent registered public accounting firm of Mesa Air Group, Inc.](d944307dex233.htm) |  |  |  | X |
| 23.4 | [Consent of Deloitte & Touche LLP, independent auditors of Republic Airways Holdings Inc.](d944307dex234.htm) |  |  |  | X |
| 23.5 | [Consent of FTI Capital Advisors, LLC](d944307dex235.htm) |  |  |  | X |
| 23.6 | [Consent of Potter Anderson & Corroon LLP (included in Exhibit 5.1)](d944307dex51.htm) |  |  |  | X |
|  24.1^^ | [Power of Attorney (included on the signature page of this Registration Statement on Form S-4/S-1)](http://www.sec.gov/Archives/edgar/data/../../../ix?doc=/Archives/edgar/data/810332/000119312525157722/d944307ds4.htm#ii944307_sig) |  |  |  |  |
|  99.1^^ | [Consent of David Grizzle to serve as a director of Mesa Air Group, Inc., to be renamed Republic Airways Holdings Inc.](http://www.sec.gov/Archives/edgar/data/0000810332/000119312525157722/d944307dex991.htm) |  |  |  |  |
|  99.2^^ | [Consent of Glenn S. Johnson to serve as a director of Mesa Air Group, Inc., to be renamed Republic Airways Holdings Inc.](http://www.sec.gov/Archives/edgar/data/0000810332/000119312525157722/d944307dex992.htm) |  |  |  |  |
|  99.3^^ | [Consent of Michael C. Lenz to serve as a director of Mesa Air Group, Inc., to be renamed Republic Airways Holdings Inc.](http://www.sec.gov/Archives/edgar/data/0000810332/000119312525157722/d944307dex993.htm) |  |  |  |  |
|  99.4^^ | [Consent of Ruth Okediji to serve as a director of Mesa Air Group, Inc., to be renamed Republic Airways Holdings Inc.](http://www.sec.gov/Archives/edgar/data/0000810332/000119312525157722/d944307dex994.htm) |  |  |  |  |
|  99.5^^ | [Consent of Barry W. Ridings to serve as a director of Mesa Air Group, Inc., to be renamed Republic Airways Holdings Inc.](http://www.sec.gov/Archives/edgar/data/0000810332/000119312525157722/d944307dex995.htm) |  |  |  |  |
|  99.6^^ | [Consent of James E. Sweetnam to serve as a director of Mesa Air Group, Inc., to be renamed Republic Airways Holdings Inc.](http://www.sec.gov/Archives/edgar/data/0000810332/000119312525157722/d944307dex996.htm) |  |  |  |  |

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##### [**Table of Contents**](#toc)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Incorporated by Reference** | **Incorporated by Reference** | **Incorporated by Reference** | |
| **Exhibit**<br> **Number** | **Exhibit Description** | **Form** | **Date** | **Number** | <br>**Filed**<br>**Herewith** |
|  101.INS | Inline XBRL Instance Document |  |  |  | X |
|  101.SCH | Inline XBRL Taxonomy Extension Schema Document |  |  |  | X |
|  101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document |  |  |  | X |
|  101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document |  |  |  | X |
|  101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document |  |  |  | X |
|  101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document |  |  |  | X |
| 104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |  |  |  | X |
|  107^^ | [Filing Fee Table](http://www.sec.gov/Archives/edgar/data/0000810332/000119312525157722/d944307dexfilingfees.htm) |  |  |  |  |

---

\* This certification will not be deemed "filed" for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act, except to the extent specifically incorporated by reference into such filing.

\*\* The exhibits and schedules to this Exhibit have been omitted in accordance with Regulation S-K Item 601(b)(2). The Registrant agrees to furnish supplementally a copy of any omitted exhibit or schedule to the SEC upon its request.

^^ Previously filed.

# Management contract or compensatory plan.

†† Certain confidential information contained in this agreement has been omitted because it (i) is not material and (ii) would be competitively harmful if publicly disclosed.

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##### [**Table of Contents**](#toc)

#### SIGNATURES
Pursuant to the requirements of the Securities Act, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized on this 14th day of August, 2025.

---

| | |
|:---|:---|
| **MESA AIR GROUP, INC.** | **MESA AIR GROUP, INC.** |
| By: | /s/ Michael J. Lotz |
|  | Name: Michael J. Lotz |
|  | Title: Chief Financial Officer |

---

KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints Michael J. Lotz and Brian S. Gillman, and each or any one of them, as his or her true and lawful attorney-in-fact and agent, each with full power of substitution and resubstitution, for him or her and in his or her name, place and stead, in any and all capacities, to sign any and all amendments (including post-effective amendments) to this Registration Statement, and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done in connection therewith, as fully to all intents and purposes as he or she might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or their or his substitutes or substitute, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act, this report has been signed by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

---

| | | |
|:---|:---|:---|
| **Signature** | **Title** | **Date** |
| \*<br> Jonathan G. Ornstein | Chairman, Chief Executive Officer and Director<br> (*Principal Executive Officer*) | August 14, 2025 |
| /s/ Michael J. Lotz<br> Michael J. Lotz | Chief Financial Officer<br> (*Principal Financial Officer and Principal Accounting Officer*) | August 14, 2025 |
| \*<br> Ellen N. Artist | Director | August 14, 2025 |
|  \*<br> Mitchell Gordon | Director | August 14, 2025 |
|  \*<br> Dana J. Lockhart | Director | August 14, 2025 |
|  \*<br> Harvey W. Schiller | Director | August 14, 2025 |
|  \*<br> Spyridon Skiados | Director | August 14, 2025 |

---

---

| | |
|:---|:---|
| \*By: | /s/ Michael J. Lotz |
|  | Name: Michael J. Lotz |
|  | Title: Attorney-in-Fact |

---

## Exhibit 5.1

**Exhibit 5.1** 

---

| | |
|:---|:---|
| ![LOGO](g944307g0805210149775.jpg) | 1313 North Market Street<br> P.O. Box 951<br> Wilmington, DE 19899-0951<br> 302 984 6000<br> www.potteranderson.com |

---

August 14, 2025

Republic Airways Holdings, Inc.

8900 Purdue Road, Suite 300

Indianapolis, IN 46268

Re: <u>Registration Statement on Form S-4 / Form S-1 (File No.</u> <u>333-288622)</u>

Ladies and Gentlemen:

We have acted as special Delaware counsel to Republic Airways Holdings, Inc., a Delaware corporation (the "Corporation"), in connection with the proposed merger (the "Merger") of the Corporation with and into Mesa Air Group, Inc., a corporation presently organized under the laws of the State of Nevada ("Mesa"). Pursuant to and in accordance with the terms and conditions of the Agreement, Plan of Conversion and Plan of Merger dated as of April 4, 2025, by and between the Corporation and Mesa (as amended pursuant to that certain Amendment No. 1 to Agreement, Plan of Conversion and Plan of Merger dated as of July 10, 2025, by and between the Corporation and Mesa, the "Merger Agreement"), prior to the consummation of the Merger, pursuant to the Plan of Conversion set forth therein, Mesa will convert into a Delaware corporation pursuant to Section 265 of the General Corporation Law of the State of Delaware (the "DGCL") and Sections 92A.105 and 92A.205 of the Nevada Revised Statutes. The Merger Agreement also provides that, pursuant to the terms and conditions therein, at the effective time of the Merger, each share of common stock, par value $0.001 of the Corporation, issued and outstanding prior to the effective time of the Merger (other than Cancelled Shares and Dissenting Shares, as such terms are defined in the Merger Agreement), will be converted into the right to receive a number of validly issued, fully paid and nonassessable shares of common stock, $0.001 par value per share, of Mesa ("Mesa Common Stock") equal to the Exchange Ratio (as such term is defined in the Merger Agreement and as may be adjusted from time to time pursuant to the terms of the Merger Agreement) (such shares of Mesa, the "Merger Consideration Shares"). In addition, the Merger Agreement also contemplates that, upon the terms and conditions of the Merger Agreement and pursuant to the terms of the Three Party Agreement dated as of April 4, 2025, by and between Mesa, Mesa Shareholder Representative LLC, United Airlines, Inc., Mesa Airlines, Inc., and the Corporation (the "Three Party Agreement"), and the Escrow Agreement dated as of April 4, 2025, by and between Mesa, Mesa Shareholder Representative LLC, United Airlines, Inc., and Computershare Trust Company, National Association (the "Escrow Agreement"), immediately following the effective time of the Merger, Mesa will issue and deliver a number of validly issued, fully paid and nonassessable shares of Mesa Common Stock equal to six percent (6%) of the total number of shares of Mesa Common Stock issued and outstanding immediately following the effective time of the Merger (such shares, the "Escrow Shares" and together with the Merger Consideration Shares, the "Shares") to the Escrow Agent (as such term is defined in the Escrow Agreement). We are attorneys duly qualified to practice law in the State of Delaware. We have been asked by the Corporation to provide you with our opinion with respect to certain matters of Delaware law.

------

Mesa proposes to change its jurisdiction of incorporation by converting into a corporation incorporated under the laws of the State of Delaware pursuant to Section 265 of the DGCL and Sections 92A.105 and 92A.205 of the Nevada Revised Statutes (the "Conversion"). We understand that the Conversion is subject, among other things, to approval by the Mesa shareholders. The converted entity following the Conversion will be named "Mesa Air Group, Inc." immediately upon the effective time of the Conversion, and effective upon the effective time of the Merger, the certificate of incorporation of Mesa will be amended to change the name of such corporation to "Republic Airways Holdings Inc."

This opinion is being rendered at the request of the Corporation in connection with the above-referenced Registration Statement (together with all amendments thereto as of the date hereof, the "Registration Statement") filed by Mesa with the United States Securities and Exchange Commission (the "Commission") under the Securities Act of 1933, as amended (the "Securities Act"), and no opinion is expressed herein as to any matter pertaining to the contents of the Registration Statement, other than as to the validity of the Shares, as and to the extent expressly set forth herein.

In connection with the opinions set forth herein, we have reviewed the following documents:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Registration Statement and the exhibits thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. An unexecuted copy of the certificate of conversion proposed for filing with the Secretary of State of the State of Delaware pursuant to Section 265 of the DGCL (the "Certificate of Conversion");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. An unexecuted copy of the certificate of incorporation of Mesa, as the converted corporation, proposed for filing with the Secretary of State of the State of Delaware in accordance with Sections 103 and 265 of the DGCL (the "Delaware Certificate of Incorporation");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. An unexecuted copy of the bylaws of Mesa, as the converted corporation (the "Bylaws");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The Merger Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. The Three Party Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. The Escrow Agreement.

For purposes of the opinions set forth herein, we have not reviewed any documents other than the documents listed in (1) through (7) above. In particular, we have not reviewed, and express no opinion on, any document (other than the documents listed in (1) through (7) above) that is referred to or incorporated by reference into the documents reviewed by us. We have assumed that there exists no provision in any document that we have not reviewed that is inconsistent with the opinions set forth herein.

------

In addition, we have conducted no independent factual investigation of our own but rather have relied solely on the foregoing documents, the statements and information set forth therein, and the additional matters related or assumed therein, all of which we have assumed to be true, complete, and accurate.

Based upon the foregoing and subject to the assumptions, qualifications, exceptions, and limitations set forth herein, we are of the opinion that, upon the filing and effectiveness of the Certificate of Conversion and the Delaware Certificate of Incorporation and the filing and effectiveness of the Merger pursuant to a certificate of merger, in each case duly executed and filed with the Secretary of State of the State of Delaware, the Shares will be duly authorized, and when the Shares have been issued and delivered in accordance with the terms of the Merger Agreement, and upon either (i) the countersigning of the certificates representing the Shares by a duly authorized signatory of the registrar for the Shares or (ii) the book entry of the Shares by the transfer agent for the Shares, the Shares will be validly issued, fully paid and nonassessable. We express no opinion as to any matter other than as expressly set in the immediately preceding sentence, and no opinion, other than the opinions set forth in the immediately preceding sentence, may be inferred or implied herefrom.

The foregoing opinions are subject to the following assumptions, qualifications, exceptions, and limitations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. We have assumed that all parties to all of the documents reviewed by us are, and at all times relevant for purposes of rendering this opinion were, duly organized, validly existing, and in good standing under the laws of their respective jurisdiction of incorporation or formation and have, and at all times relevant for purposes of rendering this opinion had, the full power, authority, and legal right to effect the transactions contemplated by the documents reviewed by us, including the Conversion, the Merger and the issuance of the Escrow Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. We have assumed that, at all times relevant for purposes of rendering this opinion, the laws of the State of Nevada authorize and permit the Conversion and that the Conversion has been duly effected in accordance with the laws of the States of Nevada and Delaware. Likewise, we have assumed that the transactions contemplated by the Merger Agreement, including the Conversion, the Merger and the issuance of the Escrow Shares, will be consummated in accordance with the terms of the Merger Agreement pertaining thereto, without any waiver or breach of any material terms or provisions thereof, and that such transactions will be effective under applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. We have assumed that, prior to the effective time of the Conversion, (i) the shareholders of Mesa will have duly approved the Conversion and the Merger in compliance with the applicable laws of the State of Nevada and Mesa's organizational documents, (ii) the Conversion, the Merger and the issuance of the Escrow Shares will be duly authorized by Mesa, (iii) that all other necessary action will have been taken under the applicable laws of the State of Nevada to authorize and permit the Conversion, the Merger and the issuance of the Escrow Shares, (iv) authorizations from applicable Nevada governmental and regulatory authorities required to authorize and permit the Conversion will have been obtained (if any), and (v) the shareholders of Republic will have duly approved the adoption of the Merger Agreement in compliance with Delaware law.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. We have assumed that, prior to the effective time of the Conversion, the Registration Statement, as finally amended, will have become effective under the Securities Act, and no stop order suspending the effectiveness of the Registration Statement has or will have been issued and no proceedings with respect thereto have been commenced or threatened.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. We have assumed that (i) the current drafts of the Certificate of Conversion and the Delaware Certificate of Incorporation, in the forms thereof submitted for our review, without alteration or amendment (other than filling in the appropriate date(s) and the insertion of the complete and accurate name and mailing address of the sole incorporator of the Corporation in Article XIII of the Delaware Certificate of Incorporation, which we have assumed will be completed prior to the filing of such documents with the Secretary of State of the State of Delaware) will be duly authorized and executed and thereafter be duly filed with the Secretary of State of the State of Delaware in accordance with Sections 103 and 265 of the DGCL, (ii) a certificate of merger to effect the Merger will be duly authorized and executed and thereafter will be duly filed with the Secretary of State of the State of Delaware in accordance with Sections 103 and 251 of the DGCL, (iii) no other certificate or document has been, or prior to the filing of the Certificate of Conversion and the Delaware Certificate of Incorporation will be, filed by or in respect of Mesa with the Secretary of State of the State of Delaware, (iv) no other certificate or document (including any certificate of amendment to, or amendment and restatement of, the Delaware Certificate of Incorporation), will be, prior to the issuance of the Escrow Shares, filed by or in respect of Mesa with the Secretary of State of the State of Delaware, other than the certificate of merger described in (ii) above, and (v) Mesa will pay all fees or other charges required to be paid in connection with the filing of the Certificate of Conversion, the Delaware Certificate of Incorporation and the above described certificate of merger.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. We have assumed that the officer and/or incorporator, as applicable, who will execute and deliver the Certificate of Conversion, the Delaware Certificate of Incorporation and the certificate of merger to effect the Merger on behalf of Mesa will have been duly authorized to execute and deliver such documents and cause the same to be filed with the Secretary of State of the State of Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. With respect to the issuance of the Escrow Shares, this Opinion is limited to the issuance and delivery of the Escrow Shares to the Escrow Agent pursuant to the terms of the Merger Agreement, the Three Party Agreement and the Escrow Agreement, and we express no opinion with respect to the Escrow Shares from and after their delivery to the Escrow Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. With respect to the foregoing documents, we have assumed (i) the genuineness of all signatures on documents examined by us, (ii) the authenticity of all documents submitted to us as originals, (iii) the conformity to authentic originals of all documents submitted to us as certified, conformed, or other copies, and (iv) that the documents, in the forms submitted to us for review, have not been and will not be altered or amended in any respect, except for, only with respect to the Certificate of Conversion and the Delaware Certificate of Incorporation, as provided above.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. This opinion is limited to the DGCL presently in effect. We have not considered, and we express no opinion on, any other law, including the laws of any other jurisdiction, federal laws of the United States (including, without limitation, federal laws and rules and regulations relating to securities, including any such laws, rules or regulations relating to the sale of the Shares) or the laws of the State of Nevada. In addition, we express no opinion as to the antitrust or securities laws of the State of Delaware and the rules and regulations relating to either thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j. This opinion is limited to (i) the present laws of the State of Delaware, (ii) present judicial interpretations of the present laws of the State of Delaware, and (iii) the facts as they currently exist. We assume no obligation to revise or supplement this opinion if any applicable laws change after the date of this opinion by legislative action, judicial decision, or otherwise, or if we become aware of any facts that might change the opinions expressed above after the date of this opinion.

We consent to the filing of this opinion with the Commission as an exhibit to the Registration Statement and to the reference to our firm in the Registration Statement and the related prospectus included in the Registration Statement. In giving the foregoing consent, we do not thereby admit that we come within the category of persons whose consent is required under Section 7 of the Securities Act, or the rules and regulations of the Commission thereunder. This opinion is limited to the specific matters set forth herein and is rendered solely for your benefit. Except as stated above, this opinion may not be relied upon by any other person or entity, or be furnished or quoted to any person or entity, without our prior written consent.

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| |
|:---|
| Very truly yours, |
| /s/ Potter Anderson & Corroon LLP |

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## Exhibit 8.1

**Exhibit 8.1** 

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| | |
|:---|:---|
| ![LOGO](g944307g0807011254188.jpg) | **DLA Piper LLP (US)**<br> 4365 Executive Drive, Suite 1100<br> San Diego, California 92121-2133<br> www.dlapiper.com |

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August 14, 2025

Mesa Air Group, Inc.

410 N. 44<sup>th</sup> Street, Suite 700

Phoenix, AZ 85008

Ladies and Gentlemen:

We have acted as counsel to Mesa Air Group, Inc., a Nevada Corporation ("<u>Parent"</u>), in connection with the Agreement, Plan of Conversion and Plan of Merger, dated April 4, 2025 (the "<u>Agreement"</u>), by and between Parent and Republic Airways Holdings Inc., a Delaware corporation (the "<u>Company</u>"), pursuant to which the Company shall merge with and into Parent which shall continue as the surviving corporation (the "<u>Merger</u>").

The Merger and certain other matters contemplated by the Agreement are described in the Registration Statement on Form S-4/S-1 (the "<u>Registration Statement</u>"), including the joint proxy statement/prospectus forming a part thereof, filed by Parent on July 10, 2025, as amended. This opinion is being rendered pursuant to the requirements of Item 601(b)(8) of Regulation S-K under the Securities Act of 1933, as amended. Unless otherwise indicated, any capitalized terms used herein and not otherwise defined have the meanings ascribed to them in the Agreement or the Registration Statement.

In connection with this opinion, we have examined and are familiar with the Agreement, the Registration Statement, and such other presently existing documents, records and matters of law as we have deemed necessary or appropriate for purposes of our opinion. In addition, we have assumed, without any independent investigation or examination thereof, (i) that the Merger and all related transactions will be consummated in accordance with the provisions of the Agreement and as described in the Registration Statement and will be effective under applicable state law, and that the parties have complied with and, if applicable, will continue to comply with, the covenants, conditions and other provisions contained in the Agreement without any waiver, breach or amendment thereof; (ii) the continuing truth and accuracy at all times through the Effective Time of the statements, representations and warranties made by Parent and the Company in the Agreement and the Registration Statement; (iii) the continuing truth and accuracy at all times through the Effective Time of the certificates of representations provided to us by Parent and the Company on the date hereof; and (iv) that any such statements, representations or warranties made "to the knowledge," or based on belief or intention, or similarly qualified, are true and accurate, and will continue to be true and accurate at all times through the Effective Time, without such qualification.

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![LOGO](g944307g0807011254188.jpg)

Mesa Air Group, Inc.

Based upon and subject to the foregoing, subject to the qualifications and limitations described herein and therein, it is our opinion that (i) the Merger will be treated for United States federal income tax purposes as a "reorganization" within the meaning of Section 368(a) of the Code, and (ii) the disclosure contained in the Registration Statement under the caption "Material U.S. Federal Income Tax Consequences of the Merger," insofar as it addresses the material U.S. federal income tax consequences of the Merger and discusses matters of U.S. federal income tax law and regulations or legal conclusions with respect thereto, except as otherwise indicated, constitutes an accurate summary of the material U.S. federal income tax consequences of the Merger.

We express our opinion herein only as to those matters specifically set forth above and no opinion should be inferred as to the tax consequences of the Merger under any state, local or non-U.S. law, or with respect to other areas of U.S. federal taxation. There can be no assurance that changes in the law will not take place that could affect the U.S. federal income tax consequences of the Merger, or that contrary positions may not be taken by the Internal Revenue Service. In the event any of the facts, statements, descriptions, covenants, representations, warranties, or assumptions upon which we have relied is incorrect, our opinion might be adversely affected and may not be relied upon.

We hereby consent to the filing of this opinion as Exhibit 8.1 to the Registration Statement. We also consent to the reference to our firm name wherever appearing in the Registration Statement with respect to the discussion of the material U.S. federal income tax consequences of the Merger, including any amendment thereto. In giving this consent, we do not thereby admit that we are in the category of persons whose consent is required under Section 7 of the Securities Act of 1933, as amended, or the rules and regulations of the Securities and Exchange Commission thereunder, nor do we thereby admit that we are experts with respect to any part of such Registration Statement within the meaning of the term "experts" as used in the Securities Act of 1933, as amended, or the rules and regulations of the Securities and Exchange Commission thereunder.

Very truly yours,

/s/ DLA Piper LLP (US)

**DLA Piper LLP (US)**

## Exhibit 8.2

**Exhibit 8.2** 

**Simpson Thacher & Bartlett LLP** 

425 LEXINGTON AVENUE

NEW YORK, NY 10017-3954

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

TELEPHONE: +1-212-455-2000

FACSIMILE: +1-212-455-2502

Direct Dial Number E-mail Address

August 14, 2025

Republic Airways Holdings Inc.

8909 Purdue Road, Suite 300

Indianapolis, IN 46268

Ladies and Gentlemen:

We have acted as counsel to Republic Airways Holdings Inc., a Delaware corporation (the "<u>Company</u>"), in connection with (i) the Agreement, Plan of Conversion and Plan of Merger, dated April 4, 2025 (the "<u>Agreement</u>"), by and between Mesa Air Group, Inc., a Nevada corporation ("<u>Parent</u>"), and the Company, pursuant to which the Company shall merge with and into Parent, with Parent continuing as the surviving corporation (the "<u>Merger</u>") and (ii) the preparation of the related registration statement on Form S-4/S-1 (as amended, the "<u>Registration Statement</u>"). For purposes of this opinion, capitalized terms used and not otherwise defined herein shall have the meaning ascribed thereto in the Agreement. This opinion is being delivered in connection with the Registration Statement.

We have examined (i) the Agreement, (ii) the Registration Statement, including the joint proxy statement/prospectus constituting a part thereof, filed by Parent with the Securities and Exchange Commission under the Securities Act of 1933, as amended, relating to the Merger pursuant to the Agreement, and (iii) the representation letters of Parent and the Company delivered to us in connection with this opinion (the "<u>Representation Letters</u>"). In addition, we have examined, and have relied as to matters of fact upon, originals, or duplicates or certified or conformed copies,

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of such records, agreements, documents and other instruments and such certificates or comparable documents of public officials and of officers and representatives of Parent and the Company and have made such other and further investigations as we have deemed necessary or appropriate as a basis for the opinion hereinafter set forth. In such examination, we have assumed the accuracy of the factual matters described in the Registration Statement.

In rendering the opinion set forth below, we have assumed the genuineness of all signatures, the legal capacity of natural persons, the authenticity of all documents submitted to us as originals, the conformity to original documents of all documents submitted to us as duplicates or certified or conformed copies, and the authenticity of the originals of such latter documents.

In rendering the opinion set forth below, we have also assumed that (i) the Merger will be effected in accordance with the Agreement, (ii) the statements concerning the Merger set forth in the Agreement and the Registration Statement are true, complete and correct and will remain true, complete and correct at all times up to and including the Effective Time, (iii) the representations made by Parent and the Company in their respective Representation Letters are true, complete and correct and will remain true, complete and correct at all times up to and including the Effective Time, and (iv) any representations made in the Agreement or the Representation Letters "to the knowledge of", or based on the belief of, Parent and the Company are true, complete and correct and will remain true, complete and correct at all times up to and including the Effective Time, in each case without such qualification. We have also assumed that each of Parent and the Company has complied with and, if applicable, will continue to comply with, their respective covenants contained in the Agreement.

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Based upon the foregoing, and subject to the assumptions, exceptions, limitations and qualifications set forth herein, it is our opinion that under U.S. federal income tax law, the Merger will be treated as a reorganization within the meaning of Section 368(a) of the Internal Revenue Code of 1986, as amended (the "<u>Code</u>") and that the disclosures contained in the Registration Statement under the caption "Material U.S. Federal Income Tax Consequences of the Merger", insofar as they purport to constitute summaries of certain provisions of U.S. federal income tax law and regulations or legal conclusions with respect thereto, constitute accurate summaries of such matters in all material respects.

We express our opinion herein only as to those matters specifically set forth above and no opinion should be inferred as to the tax consequences of the Merger under any state, local or non-U.S. law, or with respect to other areas of U.S. federal taxation. We do not express any opinion herein concerning any law other than U.S. federal income tax law.

Our opinion is based on the Code, United States Treasury regulations, administrative interpretations and judicial precedents as of the date hereof. If there is any subsequent change in the applicable law or regulations, or if there are subsequently any new applicable administrative or judicial interpretations of the law or regulations, or if there are any changes in the facts or circumstances surrounding the Merger, the opinion expressed herein may become inapplicable.

We hereby consent to the filing of this opinion letter as Exhibit 8.2 to the Registration Statement and to the references to our name therein with respect to the discussion of the material U.S. federal income tax consequences of the Merger.

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| |
|:---|
| Very truly yours, |
| /s/ Simpson Thacher & Bartlett LLP |
| SIMPSON THACHER & BARTLETT LLP |

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## Exhibit 10.16

**Exhibit 10.16** 

**<u>REGISTRATION RIGHTS AGREEMENT</u>**

This Registration Rights Agreement (this "<u>Agreement</u>") is dated as of July 10, 2025 by and among Republic Airways Holdings Inc., a Delaware corporation (the "<u>Company</u>"), and each holder of shares of Common Stock listed on <u>Schedule 1</u> hereto.

<u>BACKGROUND</u> 

WHEREAS, the Company desires to grant registration rights to the parties to this Agreement on the terms and conditions as set forth herein.

NOW, THEREFORE, in consideration of the mutual covenants contained herein, and for other valuable consideration, receipt of which is hereby acknowledged, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Definitions and Interpretation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Definitions</u>*.* The following terms have the following respective meanings.

"<u>5% Stockholder</u>" shall mean on any date of determination any Stockholder that on such date beneficially owns directly or indirectly at least 5% of the Common Stock issued and outstanding as of such date of determination; provided that any Stockholder and its Affiliates shall together be considered one Stockholder for purposes of this determination.

"<u>6% Bucket</u>" shall mean the six percent (6%) of the Company's Common Stock to be issued into escrow in connection with the closing of the Merger, pursuant to that certain Three Party Agreement, dated April 4, 2025 by and between the Company, Mesa and United Airlines, Inc.

"<u>10% Stockholder</u>" shall mean on any date of determination any Stockholder that on such date beneficially owns directly or indirectly at least 10% of the Common Stock issued and outstanding as of such date of determination; provided that any Stockholder and its Affiliates shall together be considered one Stockholder for purposes of this determination.

"<u>Affiliate</u>" means, with respect to any Person, (i) any Person directly or indirectly Controlling, Controlled by or under common Control with such Person, (ii) any Person directly or indirectly owning or Controlling 50% or more of any class of outstanding voting securities of such Person or (iii) any officer, director, general partner or trustee of any such Person described in clause (i) or (ii).

"<u>Airline Stockholders</u>" shall mean American Airlines, Inc., Delta Air Lines, Inc. and United Airlines, Inc. (together with, solely for the purpose of this definition, its parent, if any), including their respective successor entities, collectively; <u>provided</u> that any of the three aforementioned shall not be deemed an Airline Stockholder unless it remains both (i) a 5% Stockholder and (ii) (directly or indirectly through an Affiliate) a party to a then effective Capacity Purchase Agreement.

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"<u>beneficial ownership</u>", "<u>beneficially own</u>" or any other similar expression, and "<u>group</u>", when each concept is used in the context of discussing beneficial ownership, shall have the meaning determined by application of the definitions and concepts applicable under Section 13(d) of the Exchange Act.

"<u>Board</u>" means the Board of Directors of the Company as shall be composed from time to time.

"<u>Business Day</u>" means a day other than Saturday, Sunday or any other day which commercial banks in New York, New York are authorized or required by law to close.

"<u>Capacity Purchase Agreements</u>" means, collectively, any current or future effective capacity purchase agreement, codeshare agreement, or any other similar agreements to which the Company or any of its subsidiaries, on the one hand, and any Airline Stockholder or any of its subsidiaries, on the other hand, is a party, in each case, as amended, restated, supplemented or otherwise modified or replaced from time to time.

"<u>Commission</u>" means the U.S. Securities and Exchange Commission or any other federal agency at the time administering the Securities Act.

"<u>Common Stock</u>" means the Company's common stock, par value $0.001.

"<u>Company</u>" shall have the meaning set forth in the preamble of this Agreement.

"<u>Control</u>", including the terms "<u>controlled by</u>" and "<u>under common control with</u>", means the power to direct the affairs of a Person by reason of ownership of voting securities, by contract or otherwise.

"<u>Demand Registration</u>" shall have the meaning set forth in <u>Section</u> <u>2(a)(ii)</u>.

"<u>Exchange Act</u>" means the Securities Exchange Act of 1934, as amended, and the rules, regulations and staff interpretations promulgated thereunder.

"<u>Government Authority</u>" means any federal, state, local or foreign government or political subdivision thereof, or any agency or instrumentality of such government or political subdivision, or any self-regulated organization or other non-governmental regulatory authority or quasi-governmental authority (to the extent that the rules, regulations or orders of such organization or authority have the force of law), or any arbitrator, court or tribunal of competent jurisdiction.

"<u>Indemnified Party</u>" shall have the meaning set forth in <u>Section</u> <u>2(e)(iii)</u>.

"<u>Indemnifying Party</u>" shall have the meaning set forth in <u>Section</u> <u>2(e)(iii)</u>.

"<u>Joinder</u>" means a joinder in the form of <u>Exhibit A</u>.

"<u>Lock-Up Period</u>" shall have the meaning set forth in <u>Section</u> <u>6(a)</u>.

"<u>Long-Form Registration</u>" shall have the meaning set forth in <u>Section</u> <u>2(a)(i)</u>.

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"<u>Merger</u>" means the merger of Republic Airways Holdings, Inc. with and into Mesa Air Group, Inc. ("<u>Mesa</u>"), with Mesa as the surviving corporation in the merger pursuant to the Agreement, Plan of Conversion and Plan of Merger, dated as of April 4, 2025, between Mesa and Republic Airways Holdings Inc.

"<u>Merger Lock-Up Period</u>" means the period beginning on the date of the consummation of the Merger and continuing to and including the date that is one hundred eighty (180) days after the date of the consummation of the Merger.

"<u>Other Shares</u>" shall have the meaning set forth in <u>Section</u> <u>2(a)(v)</u>.

"<u>Permitted Transferee</u>" means, with respect to any Stockholder any Affiliate of such Stockholder.

"<u>Person</u>" or "<u>person</u>" means any individual, sole proprietorship, partnership, corporation, limited liability company, joint venture, unincorporated society or association, trust or other legal entity or any Government Authority.

"<u>Piggyback Registration</u>" shall have the meaning set forth in <u>Section</u> <u>2(b)(i)</u>.

"<u>Piggyback Registration Statement</u>" shall have the meaning set forth in <u>Section</u> <u>2(b)(i)</u>.

"<u>Piggyback Shelf Registration Statement</u>" shall have the meaning set forth in <u>Section</u> <u>2(b)(ii)</u>.

"<u>Piggyback Shelf Takedown</u>" shall have the meaning set forth in <u>Section</u> <u>2(b)(ii)</u>.

"<u>Qualification Date</u>" shall have the meaning set forth in <u>Section</u> <u>2(a)(ii)</u>.

"<u>register</u>", including the terms "<u>registered</u>" and "<u>registration</u>", refer to a registration effected by preparing and filing a registration statement in compliance with the Securities Act, and the declaration or ordering of the effectiveness of such registration statement by the Commission.

"<u>Registrable Securities</u>" means (i) any shares of Common Stock held by the Stockholders on the date of this Agreement or otherwise issued to the Stockholders in connection with the Merger, including, for the avoidance of doubt, the 6% Bucket, and (ii) any other securities of the Company issued as a dividend or other distribution with respect to or in exchange for or in replacement of the shares of Common Stock referred to in clause (i) of this definition; <u>provided</u> that such shares of Common Stock or other securities shall no longer be Registrable Securities if the holder or beneficial owner thereof is no longer a 5% Stockholder and, as of such date, is entitled to have any legends affixed to such securities removed unconditionally pursuant to <u>Section</u> <u>2(i)</u> hereof.

"<u>Registration Expenses</u>" means all expenses incurred by the Company in complying with <u>Section</u> <u>2(a)</u> or <u>Section</u> <u>2(b)</u>, including, without limitation, all registration, qualification, listing and filing fees, printing expenses, escrow fees, fees and disbursements of counsel for the Company, blue sky fees and expenses, and the expense of any special audits incident to or required by any such registration (but excluding the compensation of regular employees of the Company, which shall be paid in any event by the Company), but shall not include Selling Expenses.

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"<u>Rule 144</u>" means Rule 144 as promulgated by the Commission under the Securities Act, as such Rule may be amended from time to time, or any similar successor rule that may be promulgated by the Commission.

"<u>Rule 145</u>" means Rule 145 as promulgated by the Commission under the Securities Act, as such Rule may be amended from time to time, or any similar successor rule that may be promulgated by the Commission.

"<u>Securities Act</u>" means the Securities Act of 1933, as amended, and the rules, regulations and staff interpretations promulgated thereunder.

"<u>Selling Expenses</u>" means all underwriting discounts, selling commissions and stock transfer taxes applicable to the sale of Registrable Securities by the Stockholders, and fees and disbursements of counsel for any Stockholder.

"<u>Shelf Registration Statement</u>" shall have the meaning set forth in <u>Section</u> <u>2(a)(ii)</u>.

"<u>Shelf Requesting Holder</u>" shall have the meaning set forth in <u>Section</u> <u>2(a)(ii)</u>.

"<u>Shelf Takedown</u>" shall have the meaning set forth in <u>Section</u> <u>2(a)(ii)</u>.

"<u>Shelf Takedown Request</u>" shall have the meaning set forth in <u>Section</u> <u>2(a)(ii)</u>.

"<u>Short-Form Registration</u>" shall have the meaning set forth in <u>Section</u> <u>2(a)(ii)</u>.

"<u>Stockholder</u>" means each holder of shares of Common Stock listed in <u>Schedule</u> <u>1</u> hereto and any Permitted Transferee who becomes a party hereto as a Stockholder pursuant to the terms hereof; <u>provided</u> that none of the aforementioned Stockholders shall be considered a Stockholder once it (together with its Affiliates) no longer holds Registrable Securities.

"<u>Transaction Documents</u>" shall have the meaning set forth in <u>Section</u> <u>3(b)</u>.

"<u>Transfer</u>" means any direct or indirect sale, transfer, assignment, conveyance or other disposition.

"<u>Treasury Warrant Agreements</u>" means the Warrant Agreement, dated as of January 15, 2021, between the Company and the United States Department of the Treasury ("<u>Treasury</u>") and the Warrant Agreement, dated as of June 10, 2021, between the Company and Treasury and any other similar warrant agreement entered into between the Company and Treasury.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Other Definitional Provisions; Interpretation</u>*.* The words "hereof," "herein," and "hereunder" and words of similar import when used in this Agreement refer to this Agreement as a whole and not to any particular provisions of this Agreement, and references in this Agreement to a designated "Section" refer to a Section of this Agreement unless otherwise specified. The headings in this Agreement are included for convenience of reference only and do not limit or otherwise affect the meaning or interpretation of this Agreement. The meanings given to terms defined herein are equally applicable to both the singular and plural forms of such terms.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Registration Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Demand Registration</u>*.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) At any time after the date that is thirty (30) days prior to the expiration of the Merger Lock-Up Period, any 5% Stockholder may request registration under the Securities Act of all or any portion of their Registrable Securities pursuant to a registration statement on Form S-1 or any successor form thereto (each, a "<u>Long-Form Registration</u>"). Each request for a Long-Form Registration shall specify the number of Registrable Securities requested to be included in the Long-Form Registration. Upon receipt of any such request, the Company shall promptly (but in no event later than ten (10) Business Days following receipt thereof) deliver written notice of such request to all other Stockholders who shall then have ten (10) Business Days from the date such notice is given to notify the Company in writing of their desire to be included in such registration. The Company shall prepare and file with (or confidentially submit to) the Commission a registration statement on Form S-1 or any successor form thereto covering all of the Registrable Securities that the Stockholders thereof have requested to be included in such Long-Form Registration within thirty (30) days after the date on which the initial request is given and shall use its commercially reasonable efforts to cause such registration statement to be declared effective by the Commission as soon as practicable thereafter, provided that such effectiveness and any sales under such Long-Form Registration shall not occur prior to the expiration of the Merger Lock-Up Period. The Company shall not be required to effect a Long-Form Registration more than three (3) times for the Stockholders as a group; <u>provided</u> that a registration shall not be counted as "effected" for purposes of this <u>Section</u> <u>2(a)(i)</u> until such time as the applicable registration statement has been declared effective by the Commission, unless the Stockholders initiating the applicable Long-Form Registration withdraw their request for such registration and forfeit their right to one Long-Form Registration, in which case such withdrawn registration statement shall be counted as "effected" for purposes of this <u>Section</u> <u>2(a)(i)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Company shall use its commercially reasonable efforts to qualify and remain qualified to register the offer and sale of securities under the Securities Act pursuant to a registration statement on Form S-3 or any successor form thereto. Subject to <u>Section</u> <u>2(a)(iii)</u> hereof, within fifteen (15) Business Days of the later of the end of the Merger Lock-Up Period and the Company becoming eligible to utilize Form S-3 or any successor form thereto (the "<u>Qualification Date</u>"), the Company shall use its commercially reasonable efforts to prepare and file with (or confidentially submit to) the Commission a registration statement on Form S-3 or the then appropriate form for an offering to be made on a delayed or continuous basis pursuant to Rule 415 under the Securities Act or any successor rule thereto (a "<u>Shelf Registration Statement</u>") providing for the registration of, and the sale on a continuous or delayed basis of, all of the Common Stock that constitute Registrable Securities at such time (a "<u>Short-Form Registration"</u>, and together with each Long-Form Registration, a "<u>Demand Registration</u>") and, if such Shelf Registration Statement is not automatically effective pursuant to Commission rules, shall use its

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commercially reasonable efforts to cause such Shelf Registration Statement to be declared effective by the Commission as soon as practicable thereafter and maintain the effectiveness of such registration statement, and to be supplemented and amended as promptly as practicable to the extent necessary to ensure that the registration statement is available (which shall be on Form S-3, or if Form S-3 is not then available to the Company, on Form S-1 or such other appropriate form for an offering to be made on a delayed or continuous basis pursuant to Rule 415 under the Securities Act or any successor rule thereto (which registration statement shall also be referred to herein as a Shelf Registration Statement)) until all Registrable Securities are sold thereunder or the Stockholders no longer hold any Registrable Securities. Notwithstanding the foregoing, a Stockholder may elect not to have all or any portion of its Registrable Securities included in a Short-Form Registration by delivering a written notice to that effect to the Company prior to the Qualification Date. The Company shall not be required to include a Stockholder's Registrable Securities in a Short-Form Registration if such Stockholder does not comply with <u>Section</u> <u>2(d)</u> hereof. Subject to <u>Section</u> <u>2(a)(iii)</u> hereof, each 5% Stockholder that owns Registrable Securities included on a Shelf Registration Statement (each, a "<u>Shelf Requesting Holder</u>") shall be entitled, at any time and from time to time when a Shelf Registration Statement is effective, to sell any of the Registrable Securities held by such Stockholder as are then registered pursuant to a Shelf Registration Statement in an underwritten offering (each, a "<u>Shelf Takedown</u>"). The Shelf Requesting Holder(s) shall make such election to conduct such an underwritten offering by delivering to the Company a written request (a "<u>Shelf Takedown Request</u>") for such offering specifying the number of Registrable Securities that such Shelf Requesting Holder(s) desire to sell pursuant to such Shelf Takedown. Within five (5) Business Days after receipt of any such request for a Shelf Takedown, the Company shall give written notice of such request to all Stockholders that own Registrable Securities included on such Shelf Registration Statement that are not Shelf Requesting Holders, if any, and the Company shall include in such Shelf Takedown the number of Registrable Securities of the Shelf Requesting Holder(s) and any such other Stockholders that shall have made a written request to the Company for inclusion of their Registrable Securities in the Shelf Takedown (which request shall specify the maximum number of Registrable Securities intended to be sold by such Stockholder) and with respect to which the Company has received written requests for inclusion therein within ten (10) Business Days after the date the Company's notice was delivered. The Company shall, as expeditiously as possible (and in any event within fifteen (15) Business Days after the receipt of a Shelf Takedown Request, unless a longer period is agreed to by the Shelf Requesting Holder(s)), facilitate such Shelf Takedown. The Company shall not be required to effect a Shelf Takedown more than two (2) times for the Stockholders as a group during any calendar year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Company shall not be obligated to effect any Long-Form Registration within ninety (90) days after the effective date of a previous Long-Form Registration or a previous Piggyback Registration in which the Stockholders were permitted to register the offer and sale under the Securities Act, and actually sold, at least 50% collectively of the Registrable Securities requested to be included therein. The Company shall not be obligated to take any action to effect any such registration, qualification or compliance pursuant to this <u>Section</u> <u>2(a)</u>: (1) in any particular jurisdiction in which the Company would be required to execute a general consent to service of process

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in effecting such registration, qualification, or compliance, unless the Company is already subject to service in such jurisdiction and except as may be required by the Securities Act; or (2) if in the good faith judgment of the Board, such registration, qualification or compliance would be materially detrimental to the Company and the Board concludes, as a result, that it is essential to defer the filing of such registration statement or the consummation of such Shelf Takedown at such time, and the Company thereafter delivers to each of the Stockholders initiating applicable Demand Registration, to each of the Stockholders that would be covered by a Short-Form Registration or to each of the Stockholders initiating a Shelf Takedown Request, as the case may be, a certificate, signed by the chief executive officer of the Company, stating that in the good faith judgment of the Board it would be seriously detrimental to the Company or its stockholders for a registration statement to be filed or a Shelf Takedown to be effectuated in the near future, then the Company's obligation to use its commercially reasonable efforts to register, qualify, or comply under this <u>Section</u> <u>2(a)</u> shall be deferred for a period not to exceed ninety (90) days from (A) the date of delivery of the written request from the Stockholder(s) initiating applicable Demand Registration or Shelf Takedown or (B) the Qualification Date, as the case may be; <u>provided</u>, <u>however</u>, that the Company may not invoke this right more than once in any twelve-month period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) To the extent any Demand Registration or Shelf Takedown is for a registered public offering involving an underwriting, the Company shall so advise the Stockholders as a part of the written notice given pursuant to <u>Section</u> <u>2(a)(i)</u> or <u>Section</u> <u>2(a)(ii)</u> (as applicable). The managing underwriter(s) for any such offering will be selected by a majority-in-interest of the Stockholders requesting such Demand Registration or Shelf Takedown provided that such managing underwriter(s) shall either (a) be selected from those listed on Schedule 2 or (b) be approved by the Company (with such approval not to be unreasonably withheld). In the event any Demand Registration or Shelf Takedown is for a registered public offering involving an underwriting, the right of any Stockholder to registration or to participate in a Shelf Takedown pursuant to this <u>Section</u> <u>2(a)</u> shall be conditioned upon such Stockholder's participation in such underwriting and the inclusion of Registrable Securities in the underwriting to the extent provided herein. All Stockholders proposing to distribute their securities through such underwriting shall (together with the Company and the other Stockholders distributing their securities through such underwriting) enter into and perform their obligations under an underwriting agreement in the form agreed to between the Company and the managing underwriter(s) selected for such underwriting by the Company and in customary form. Notwithstanding any other provision of this <u>Section</u> <u>2(a)</u>, if the managing underwriter(s) determines in good faith that marketing factors require a limitation of the number of shares of Common Stock to be underwritten, the managing underwriter(s) may limit the number of Registrable Securities to be included in the registration and underwriting. The Company shall so advise all Stockholders requesting registration or Shelf Takedown, and the number of shares of Common Stock that are entitled to be included in the registration and underwriting for the Stockholders shall be allocated on a pro rata basis according to the number of shares of Common Stock requested by each Stockholder to be included therein. If any Person who has requested inclusion in such registration or Shelf Takedown as provided above disapproves of the terms of the underwriting, such Person shall be excluded therefrom by written notice delivered by the Company or the managing underwriter(s). Any Registrable Securities and/or other securities so excluded or withdrawn shall also be withdrawn from such registration or the Shelf Takedown, as the case may be.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Subject to the rights granted pursuant to the Treasury Warrant Agreements, the Company shall not include in any Demand Registration any securities which are not Registrable Securities without the prior written consent of the Stockholders who hold at least 25% of Registrable Securities initially requesting such Demand Registration, which consent shall not be unreasonably withheld or delayed. If a Demand Registration involves an underwritten offering and the managing underwriter(s) of the requested Demand Registration advises the Company and the applicable Stockholders in writing that in its reasonable and good faith opinion the number of shares of Common Stock proposed to be included in the Demand Registration, including all Registrable Securities and all other shares of Common Stock of the Company with registration rights (the "<u>Other Shares</u>") proposed to be included in such underwritten offering, exceeds the number of shares of Common Stock which can be sold in such underwritten offering and/or the number of shares of Common Stock proposed to be included in such Demand Registration would adversely affect the price per share of Common Stock proposed to be sold in such underwritten offering, the Company shall include in such Demand Registration (1) first, the shares of Common Stock that the Stockholders propose to sell, and (2) second, the Other Shares of Common Stock proposed to be included therein by any other Persons (and shares of Common Stock to be sold for the account of the Company and/or other Stockholders) allocated among such Persons in such manner as they may agree; <u>provided</u>*,* <u>however</u>, that in the event of any conflict between this <u>Section</u> <u>2(a)(5)</u> and the order of priority contemplated in Section 4.5(b)(vi) of the Treasury Warrant Agreements, then the Company shall apply the order of priority in the Treasury Warrant Agreements to the extent that this Agreement would otherwise result in a breach under the Treasury Warrant Agreements. If the managing underwriter(s) determines that less than all of the Registrable Securities proposed to be sold can be included in such offering, then Registrable Securities that are included in such offering shall be allocated pro rata among the respective Stockholders thereof on the basis of the number of Registrable Securities owned by each such Stockholder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Piggyback Registration</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Following the Merger Lock-Up Period, whenever (1) the Company proposes to register the offer and sale of any shares of its Common Stock under the Securities Act (other than pursuant to a Demand Registration (which shall be subject to the provisions set forth in <u>Section</u> <u>2(a)</u>) or a registration (v) pursuant to a registration statement on Form S-8 (or other registration solely relating to an offering or sale to employees or directors of the Company pursuant to any employee stock plan or other employee benefit arrangement), (w) pursuant to a registration statement on Form S-4 (or similar form that relates to a transaction subject to Rule 145 under the Securities Act or any successor rule thereto), (x) in connection with any dividend or distribution reinvestment or similar plan, (y) in connection with a registration on any registration form that does not permit secondary sales, or (z) in connection with a registration in which the only shares of Common Stock being registered are shares of Common Stock issuable upon conversion of debt securities that is also being registered), whether for its own account or for the account of one or more of the Stockholders, and (2) the form of registration statement (a "<u>Piggyback Registration Statement</u>") to be used may be used for any registration of Registrable Securities (a "<u>Piggyback Registration</u>"), the Company shall:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) promptly (but in any event at least ten (10) days prior to the filing of any Piggyback Registration Statement) deliver to each Stockholder written notice thereof in accordance with <u>Section</u> <u>8(i)</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) use its commercially reasonable efforts to include in such Piggyback Registration (and any related qualification under blue sky laws or other compliance), except as set forth in <u>Section</u> <u>2(b)(iii)</u>, and in any underwriting involved therein, all Registrable Securities specified in a written request or requests made by any Stockholder and delivered to the Company within ten (10) days after the written notice is delivered by the Company. Such written request may include all or a portion of a Stockholder's Registrable Securities;

<u>provided</u>, <u>however</u>, that the Company shall have no obligations and the Stockholders shall have no rights under this <u>Section</u> <u>2(b)</u> with respect to any registration by the Company of the 6% Bucket; <u>provided</u>, <u>further</u>, notwithstanding the foregoing, if the Registrable Securities of any Stockholder are included in any registration statement filed by the Company during the Merger Lock-Up Period (excluding with respect to the 6% Bucket), such registration shall be deemed a Piggyback Registration and all other Stockholders will be permitted to include their Registrable Securities on a pro rata basis in such Piggyback Registration in accordance with the provisions of this <u>Section</u> <u>2(b)</u> notwithstanding that the Merger Lock-Up Period has not expired.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Company may postpone or withdraw the filing or the effectiveness of a Piggyback Registration at any time in its sole discretion, whether or not any Stockholder has elected to include securities in such registration, and shall promptly notify any Stockholder that has elected to include shares of Common Stock in such registration of such termination or withdrawal. A Piggyback Registration shall not be considered a Demand Registration for purposes of <u>Section</u> <u>2(a)</u>. If any Piggyback Registration Statement pursuant to which Stockholders have registered the offer and sale of Registrable Securities is a registration statement on Form S-3 or the then appropriate form for an offering to be made on a delayed or continuous basis pursuant to Rule 415 under the Securities Act or any successor rule thereto (a "<u>Piggyback Shelf Registration Statement</u>"), such Stockholder(s) shall have the right, but not the obligation, to be notified of and to participate in any offering under such Piggyback Shelf Registration Statement (a "<u>Piggyback Shelf Takedown</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) If a Piggyback Registration or Piggyback Shelf Takedown is initiated as a primary underwritten offering on behalf of the Company and the managing underwriter(s) advises the Company and the Stockholders (if any Stockholders have elected to include Registrable Securities in such Piggyback Registration or Piggyback Shelf Takedown) in writing that in its reasonable and good faith opinion the number of shares of Common Stock proposed to be included in such registration or takedown, including all Registrable Securities and all Other Shares proposed to be included in such underwritten

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offering, exceeds the number of shares of Common Stock which can be sold in such offering and/or that the number of shares of Common Stock proposed to be included in any such registration or takedown would adversely affect the price per share of Common Stock to be sold in such offering, the Company shall include in such registration or takedown: (1) first, the shares of Common Stock that the Company proposes to sell; (2) second, the shares of Common Stock requested to be included therein by the Stockholders, allocated pro rata among all such Stockholders on the basis of the number of Registrable Securities owned by each such Stockholder or in such manner as they may otherwise agree; and (3) third, the shares of Common Stock requested to be included therein by stockholders holding no Registrable Securities, allocated among such stockholders in such manner as they may agree; <u>provided</u>*,* <u>however</u>, that in the event of any conflict between this <u>Section</u> <u>2(b)(iii)</u> and the order of priority contemplated in Section 4.5(b)(vi) of the Treasury Warrant Agreements, then the Company shall apply the order of priority in the Treasury Warrant Agreements to the extent that this Agreement would otherwise result in a breach under the Treasury Warrant Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) If a Piggyback Registration or Piggyback Shelf Takedown is initiated as an underwritten offering on behalf of stockholders other than Registrable Securities, and the managing underwriter(s) advises the Company in writing that in its reasonable and good faith opinion the number of shares of Common Stock proposed to be included in such registration or takedown, including all Registrable Securities and all Other Shares proposed to be included in such underwritten offering, exceeds the number of shares of Common Stock which can be sold in such offering and/or that the number of shares of Common Stock proposed to be included in any such registration or takedown would adversely affect the price per share of Common Stock to be sold in such offering, the Company shall include in such registration or takedown: (1) first, on the basis of the shares of Common Stock requested to be included therein by the stockholder(s) requesting inclusion allocated pro rata among them based on the number of shares of Common Stock other than Registrable Securities (on a fully diluted, as converted basis) and the number of Registrable Securities, as applicable, beneficially owned by all such stockholders or in such other manner as they may otherwise agree; and (2) second, the shares of Common Stock requested to be included therein by stockholders holding no Registrable Securities, allocated among such stockholders in such manner as they may agree.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) In any Piggyback Registration or Piggyback Shelf Takedown, the Company shall select the investment banking firm or firms to act as the managing underwriter or underwriters in connection with such offering. All Stockholders proposing to distribute their securities through such underwriting shall (together with the Company and the other Stockholders distributing their securities through such underwriting) enter into and perform their obligations under an underwriting agreement in the form agreed to between the Company and the managing underwriter(s) selected for such underwriting by the Company and in customary form.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) The Company shall have the right to terminate or withdraw any registration initiated by it under this <u>Section</u> <u>2(b)</u> prior to the effectiveness of such registration, whether or not any Stockholder has elected to include securities in such registration, and shall promptly notify any Stockholder that has elected to include shares of Common Stock in such registration of such termination or withdrawal.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Registration Procedures</u>. In the case of each registration, qualification, or compliance effected by the Company pursuant to <u>Section</u> <u>2(a)</u> and to the extent applicable with respect to a Piggyback Registration or Piggyback Shelf Registration, the Company will keep each Stockholder advised in writing as to the initiation of each registration, qualification, and compliance and as to the completion thereof and, at its expense, the Company will use its commercially reasonable efforts to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) prepare and file with the Commission a registration statement with respect to such securities and use its commercially reasonable efforts to cause such registration statement to become and remain effective for a period of at least one hundred twenty (120) days or until the distribution described in the registration statement has been completed, whichever occurs first; <u>provided</u>, <u>however</u>, that (1) such 120-day period shall be extended for a period of time equal to the period the Stockholder refrains from selling any securities included in such registration at the request of an underwriter of shares of Common Stock, and (2) in the case of any Shelf Registration Statement, such 120-day period shall be extended until all Registrable Securities are sold thereunder or the Stockholders no longer hold any Registrable Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) furnish to the Stockholders participating in such registration and to the underwriters of the securities being registered such reasonable number of copies of the registration statement, preliminary prospectus, final prospectus, and such other documents as such Stockholders or such underwriters may reasonably request in order to facilitate the public offering of such securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) prepare and file with the Commission such amendments and supplements to such registration statement and the prospectus used in connection with such registration statements as may be necessary to comply with the provisions of the Securities Act with respect to the disposition of all securities covered by such registration statement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) notify each seller of Registrable Securities covered by such registration statement at any time when a prospectus relating thereto is required to be delivered under the Securities Act of the happening of any event as a result of which the prospectus included in such registration statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading or incomplete in the light of the circumstances then existing, and at the request of any such seller, prepare and furnish to such seller a reasonable number of copies of a supplement to or an amendment of such prospectus as may be necessary so that, as thereafter delivered to the purchaser of such shares of Common Stock, such prospectus shall not include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading or incomplete in the light of the circumstances then existing;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) use its commercially reasonable efforts to register and qualify the securities covered by such registration statement under such other securities or blue sky laws of such jurisdictions as shall be reasonably requested by the Stockholders; <u>provided</u>, that the Company shall not be required in connection therewith or as a condition thereto to qualify to do business or to file a general consent to service of process in any such states or jurisdictions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) cause all such Registrable Securities to be listed, not later than the effectiveness of such registration, on each securities exchange on which similar securities issued by the Company are then listed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) provide a transfer agent and registrar for all Registrable Securities and a CUSIP number for all such Registrable Securities, in each case not later than the effective date of such registration;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) in the event of any underwritten public offering, enter into and perform its obligations under an underwriting agreement, in usual and customary form, with the managing underwriter(s) of such offering and cooperate with each participating Stockholder and the underwriters to facilitate customary due diligence and marketing support, including by providing access to the Company's officers; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) furnish, at the request of any Stockholder requesting registration of Registrable Securities pursuant to <u>Section</u> <u>2(a)</u>, on the date that such Registrable Securities are delivered to the underwriters for sale in connection with a registration pursuant to <u>Section</u> <u>2(a)</u>, if such securities are being sold through underwriters, or, if such securities are not being sold through underwriters, on the date that the registration statement with respect to such securities becomes effective, (1) an opinion, dated such date, of the counsel representing the Company for the purposes of such registration, in form and substance as is customarily given to underwriters in an underwritten public offering, addressed to the underwriters, if any, and (2) to the extent such a letter may be delivered in accordance with then-applicable professional standards, a "comfort" letter, dated such date, from the independent certified public accountants of the Company, in form and substance as is customarily given by independent certified public accountants to underwriters in an underwritten public offering, addressed to the underwriters, if any; <u>provided</u>, <u>however,</u> that only the Stockholders, and not any assignee of the Stockholders, shall be entitled to receive the opinion provided for in clause (1).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Information from Stockholder</u>. It shall be a condition precedent to the obligations of the Company to take any action pursuant to <u>Section</u> <u>2(a)</u> or <u>Section</u> <u>2(b)</u> with respect to Registrable Securities of any selling Stockholder that such Stockholder(s) furnish to the Company such information regarding such Stockholder(s), Registrable Securities held by them, and the distribution proposed by such Stockholder(s) as the Company may reasonably request in writing for purposes of complying with the Securities Act and as shall be reasonably required in connection with any registration, qualification or compliance referred to in <u>Section</u> <u>2(a)</u> or <u>Section</u> <u>2(b)</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) To the extent permitted by law, the Company will indemnify and hold harmless each Stockholder, each of its officers, directors, partners, members, officers, stockholders, legal counsel, accountants, and each Person controlling such Stockholder within the meaning of Section 15 of the Securities Act, with respect to which registration, qualification, or compliance has been effected pursuant to <u>Section</u> <u>2</u>, and each underwriter (as defined in the Securities Act), if any, and each Person who controls any underwriter within the meaning of Section 15 of the Securities Act, against all expenses, claims, losses, damages or liabilities (joint or several) (or actions, proceedings or settlements in respect thereof) arising out of or based on any untrue statement (or alleged untrue statement) of a material fact contained in any registration statement, prospectus, offering circular, or other document (including any related registration statement, notification, or the like), or any amendment or supplement thereto, incident to any such registration, qualification, or compliance, or based on any omission (or alleged omission) to state therein a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances in which they were made, not misleading, or any violation by the Company of the Securities Act or any rule or regulation promulgated under the Securities Act, the Exchange Act or state securities laws applicable to the Company in connection with any such registration, qualification or compliance, and the Company will reimburse each such Stockholder, each of its officers, directors, partners, members, officers, stockholders, legal counsel and accountants, and each Person controlling such Stockholder, each such underwriter and each Person who controls any such underwriter, for any legal and any other expenses reasonably incurred in connection with investigating, preparing, defending or settling any such claim, loss, damage, liability or action, as such expenses are incurred; <u>provided</u>, <u>however</u>, that the Company will not be liable in any such case to the extent that any such claim, loss, damage, liability or expense arises out of or is based on any untrue statement or omission or alleged untrue statement or omission, made in reliance upon and in conformity with written information furnished to the Company by such Stockholder, controlling Person, underwriter, or other aforementioned Person and stated to be specifically for use therein. It is agreed that the indemnity agreement contained in this <u>Section</u> <u>2(e)</u> shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Each Stockholder will (severally and not jointly), if Registrable Securities held by such Stockholder are included in the securities as to which such registration, qualification, or compliance is being effected, indemnify and hold harmless the Company, each of its directors, officers, partners, legal counsel and accountants, and each underwriter, if any, of the Company's securities covered by such a registration statement, each Person who controls the Company or such underwriter within the meaning of Section 15 of the Securities Act, and each other such Stockholder, each of their officers, directors, and partners and each Person controlling such Stockholder within the meaning of Section 15 of the Securities Act, against all claims, losses, damages and liabilities (or actions in respect thereof) arising out of or based on any untrue statement (or alleged untrue statement) of a material fact contained in any such registration statement, prospectus, offering circular, or other document, or any omission (or alleged omission) to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, and will reimburse the Company and such Stockholders, directors, officers,

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partners, legal counsel and accountants, underwriters or control Persons for any legal or any other expenses reasonably incurred in connection with investigating or defending any such claim, loss, damage, liability or action, as such expenses are incurred, in each case to the extent, but only to the extent, that such untrue statement (or alleged untrue statement) or omission (or alleged omission) is made in such registration statement, prospectus, offering circular or other document in reliance upon and in conformity with written information furnished to the Company by such Stockholder and stated to be specifically for use therein; <u>provided</u>, <u>however</u>, that the obligations of such Stockholder hereunder shall not apply to amounts paid in settlement of any such claims, losses, damages or liabilities (or actions in respect thereof) if such settlement is effected without the consent of such Stockholder (which consent shall not be unreasonably withheld); and <u>provided</u>, <u>further</u>,<u> </u>that that in no event shall any indemnity from a Stockholder under this <u>Section</u> <u>2(e)</u> exceed the net proceeds received by such Stockholder in such offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Each party entitled to indemnification under this <u>Section</u> <u>2(e)</u> (the "<u>Indemnified Party</u>") shall give written notice to the party required to provide indemnification (the "<u>Indemnifying Party</u>") promptly after such Indemnified Party has actual knowledge of any claim as to which indemnity may be sought, and shall permit the Indemnifying Party to assume the defense of any such claim or any litigation resulting therefrom; <u>provided</u>, <u>however</u>, that counsel for the Indemnifying Party, who shall conduct the defense of such claim or litigation, shall be approved by the Indemnified Party (whose approval shall not unreasonably be withheld), and the Indemnified Party may participate in such defense at such party's expense; and <u>provided</u>, <u>further</u>, that the failure of any Indemnified Party to give notice as provided herein shall not relieve the Indemnifying Party of its obligations under this <u>Section</u> <u>2(e)</u> unless the failure to give such notice is materially prejudicial to an Indemnifying Party's ability to defend such action. No Indemnifying Party, in the defense of any such claim or litigation, shall, except with the consent of each Indemnified Party, consent to entry of any judgment or enter into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party of a release from all liability in respect to such claim or litigation. Each Indemnified Party shall furnish such information regarding itself or the claim in question as an Indemnifying Party may reasonably request in writing and as shall be reasonably required in connection with the defense of such claim and litigation resulting therefrom.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) If the indemnification provided for in this <u>Section</u> <u>2(e)</u> is held by a court of competent jurisdiction to be unavailable to or insufficient to hold harmless an Indemnified Party with respect to any claim, loss, damage, liability or expense referred to therein, then the Indemnifying Party, in lieu of indemnifying such Indemnified Party hereunder, shall contribute to the amount paid or payable by such Indemnified Party as a result of such claim, loss, damage, liability or expense in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party, on the one hand, and the Indemnified Party, on the other hand, in connection with the statements or omissions that resulted in such claim, loss, damage, liability, or expense, as well as any other relevant equitable considerations. The relative fault of the Indemnifying Party and of the Indemnified Party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a material fact related to

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information supplied by the Indemnifying Party or by the Indemnified Party and the parties' relative intent, knowledge, access to information, and opportunity to correct or prevent such statement or omission. The Company and the Stockholders agree that it would not be just and equitable if contribution pursuant to this <u>Section</u> <u>2(e)</u> were based solely upon the number of entities from whom contribution was requested or by any other method of allocation which does not take account of the equitable considerations referred to above. In no event shall any contribution by a Stockholder under this <u>Section</u> <u>2(e)</u> exceed the net proceeds received by such Stockholder in such offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages, and liabilities referred to above in this <u>Section</u> <u>2(e)</u> shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim, subject to the provisions of <u>Section</u> <u>2(e)(iii)</u>. No Person guilty of fraudulent misrepresentation (within the meaning of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) The obligations of the Company and the Stockholders under this <u>Section</u> <u>2(e)</u> shall survive the completion of any offering of Registrable Securities in a registration statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Expenses of Registration</u>. All Registration Expenses incurred in connection with any registration effected pursuant to <u>Section</u> <u>2(a)</u> and <u>Section</u> <u>2(b)</u> shall be borne by the Company. All Selling Expenses relating to securities registered on behalf of the Stockholders shall be borne by the holders of the registered securities included in such registration, pro rata on the basis of the number of shares of Common Stock so registered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Rule 144 Reporting</u>. With a view to making available to the Stockholders the benefits of Rule 144 and any other rule or regulation of the Commission that may permit such Stockholders to sell securities of the Company to the public without registration, the Company agrees to use its commercially reasonable efforts to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) make and keep current public information available, as those terms are understood and defined in Rule 144;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) file with the Commission in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act (at any time after the Company has become subject to such reporting requirements); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) so long as a Stockholder owns any Registrable Securities, to furnish to the Stockholder forthwith upon request, to the extent accurate, a written statement by the Company as to its compliance with the reporting requirements of Rule 144 and of any other reporting requirements of the Securities Act and the Exchange Act, a copy of the most recent annual or quarterly report of the Company so filed by the Company, and such other reports and documents of the Company so filed by the Company and such other information in the possession of or reasonably obtainable by the Company as a Stockholder may reasonably request in availing itself of Rule 144 or any other rule or regulation of the Commission allowing a Stockholder to sell any such securities without registration (at any time after the Company has become subject to the reporting requirements under the Exchange Act).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Limitations on Subsequent Registration Rights</u>. Other than the Treasury Warrant Agreements, from and after the date of this Agreement, the Company shall not, without the prior written consent of the Stockholders holding a majority of the aggregate Registrable Securities at such time, enter into any agreement with any holder or prospective holder of any securities of the Company which would allow such holder or prospective holder to include such securities in any registration statement filed by the Company, unless under the terms of such agreement, such holder or prospective holder may include such securities in any such registration only to the extent that the inclusion of his, her or its securities will not reduce the amount of Registrable Securities of the Stockholders which is included.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Removal of Restricted Legends</u>. Upon the request of a Stockholder, the Company shall, in good faith and at the sole expense of the Company, use commercially reasonable efforts to assist such Stockholder in the removal of any restrictive legends on the Common Stock owned by such Stockholder, at the earliest date permissible by applicable law, rule or regulation, including by (i) issuing such directions to any transfer agent, registrar or depositary, as applicable, and (ii) delivering such opinions to the transfer agent, registrar or depositary as are customary and reasonably requested by the same; <u>provided</u>, <u>however</u>, that (i) on the date that is 90 calendar days following the date upon which an Airline Stockholder ceases to be a 10% Stockholder (assuming that the facts and circumstances and applicable laws, rules and regulations present on the date hereof have not changed in a manner that changes the related legal conclusion) the Company shall use its commercially reasonable efforts to cause the Company's transfer agent to remove any restrictive legends on the Common Stock owned by such Airline Stockholder, and (ii) at such time as any shares of Common Stock cease to be Registrable Securities by operation of the proviso to the definition of "Registrable Securities," the Company shall use commercially reasonable efforts to cause the Company's transfer agent to remove any restrictive legends on such Common Stock owned by such Stockholder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Representations and Warranties of Stockholders</u>. Each Stockholder hereby represents and warrants to the Company and the other Stockholders as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Such Stockholder is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization and has all requisite power and authority required, to own, lease and operate its assets and properties and to carry on its business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) It has all requisite power and authority to execute, deliver and perform its obligations under this Agreement and the other agreements, instruments and documents contemplated by, or delivered in connection with, this Agreement (collectively, with this Agreement, the "<u>Transaction Documents</u>") to which it is or will be a party and to consummate the transactions contemplated hereby and thereby. The execution and delivery by such Stockholder of, and the performance by it of its obligations under, the Transaction Documents to which it is or will be a party have been duly and validly authorized by all requisite action on the part of the Stockholder and its owners. The Transaction Documents to which it is a party have been duly executed and delivered by the Stockholder and constitute a valid and binding obligation of the Stockholder, enforceable against the Stockholder in accordance with its terms.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The execution and delivery by the Stockholder of the Transaction Documents to which the Stockholder is or will be a party, the performance by the Stockholder of the obligations of the Stockholder hereunder and thereunder and the consummation by the Stockholder of the transactions contemplated hereby and thereby do not and will not: (i) violate any provision of the certificate of incorporation or the bylaws (or comparable organizational documents with different names) of the Stockholder; (ii) require on the part of the Stockholder any notice, registration or filing with, or any permit, or other authorization of, or any exemption by, any governmental authority or other Person not obtained prior to the date of this Agreement; (iii) result in a violation or breach of, constitute a default under, result in the acceleration of, give rise to any right to accelerate, terminate, modify or cancel, or require any notice, consent, authorization, approval or waiver under, or result in any other adverse consequence under, any contract to which the Stockholder is a party or by which the Stockholder or any of the assets or properties of the Stockholder is bound; (iv) violate or breach the terms of or cause any default under any law applicable to the Stockholder or any of the properties or assets of the Stockholder; or (v) with the passage of time, the giving of notice or both, have any of the effects described in clauses (i) through (iv) of this <u>Section</u> <u>3(c)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Stockholder has not entered into any voting agreement (other than this Agreement) with any Person with respect to any of the shares of Common Stock, granted any Person any proxy (revocable or irrevocable) or power of attorney with respect to any of the shares of Common Stock, deposited any of the shares of Common Stock in a voting trust or entered into any arrangement or agreement with any Person limiting or affecting the Stockholder's legal power, authority or right to vote the shares of Common Stock on any matter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Information Cooperation</u>. In the event an Airline Stockholder has continuing reporting obligations with respect to the shares of Common Stock held by it for financial reporting purposes, the Company agrees that it will, upon request, use commercially reasonable efforts to assist such Airline Stockholder in satisfying such reporting obligations; <u>provided</u> that any information provided pursuant to this <u>Section</u> <u>4</u> shall be kept confidential and not disclosed by such Airline Stockholder to any other Person (other than its Affiliates and its respective directors, officers, employees and other representatives, so long as such Airline Stockholder is responsible for any disclosure by such Affiliate, director, officer, employee or other representative of information in breach of this proviso), unless and to the extent disclosure is required by applicable law, rule or regulation, including the rules of any applicable securities exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Termination</u>. Other than <u>Section</u> <u>2(e)</u> and <u>Section</u> <u>2(i)</u>, this Agreement shall terminate immediately as to any Stockholder that no longer holds any Registrable Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Lock-Up</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If the Company at any time shall register the sale of Common Stock in an underwritten offering, no Stockholder shall, directly or indirectly, without the prior written consent of the managing underwriter(s) of such offering for a period (the "<u>Lock-Up Period</u>") as shall be determined by the managing underwriter(s), which period cannot begin more than seven (7) days

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prior to the effectiveness of such registration and cannot last more than (x) ninety (90) days (in the case of a lock-up entered into in connection with the consummation of the Merger or the first underwritten offering completed following the consummation of the Merger) or (y) sixty (60) days (in the case of all other underwritten offerings) after the closing of such underwritten offering, (i) offer, pledge, assign, encumber, announce the intention to sell, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend, or otherwise Transfer or dispose of, any shares of Common Stock or any securities directly or indirectly convertible into or exercisable or exchangeable for Common Stock ("<u>Stockholder Securities</u>") owned either of record or beneficially (as defined in the Exchange Act) by such Stockholder on the date of this Agreement or hereafter acquired, or (ii) enter into any swap or other agreement or arrangement that Transfers, in whole or in part, any of the economic consequences of ownership of Common Stock, whether any such transaction described in clause (i) or (ii) is to be settled by delivery of Common Stock or such other securities, in cash or otherwise, or publicly announce an intention to do any of the foregoing. The foregoing provisions of this <u>Section</u> <u>6</u> (i) shall not apply to (A) Transfers to Permitted Transferees or to the Company, (B) sales of Registrable Securities to be included in such offering pursuant to <u>Section</u> <u>2(a)(i)</u>, <u>Section</u> <u>2(a)(ii)</u> or <u>Section</u> <u>2(b)(i)</u> or (C) security interests in the nature of a blanket lien that is not specific to the Common Stock granted by such Stockholder under its secured credit facility or other corporate borrowing arrangement, and (ii) shall be applicable to the Stockholders only if all officers and directors of the Company and all other Stockholders are subject to the same restrictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The foregoing paragraph shall not apply to: (i) transactions relating to shares of Common Stock acquired in open market transactions after consummation of the Merger, or the exercise of any stock option to purchase shares of Common Stock pursuant to any benefit plan of the Company; (ii) Transfers of shares of Common Stock or any security directly or indirectly convertible into or exercisable or exchangeable for Common Stock as a bona fide gift or in connection with estate planning, or by will or intestacy, (iii) Transfers of shares of Common Stock or any security directly or indirectly convertible into or exercisable or exchangeable for Common Stock to Permitted Transferees of the Stockholder or to the Company; or (iv) the establishment of a trading plan pursuant to Rule 10b 5-1 under the Exchange Act for the Transfer of shares of Common Stock. In addition, each Stockholder agrees that, other than a request made no more than thirty (30) days prior to the expiration of a relevant Lock-Up Period, without the prior written consent of the Company (not to be unreasonably withheld), it will not, during the Lock-Up Period, make any demand for or exercise any right with respect to, the registration of any shares of Common Stock or any security directly or indirectly convertible into or exercisable or exchangeable for Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In furtherance of the foregoing, (i) each Stockholder also agrees and consents to the entry of stop Transfer instructions with any duly appointed transfer agent for the registration or Transfer of the securities described herein against the Transfer of any such securities except in compliance with the foregoing restrictions, and (ii) the Company, and any duly appointed transfer agent for the registration or Transfer of the securities described herein, are hereby authorized to decline to make any Transfer of securities if such Transfer would constitute a violation or breach of this <u>Section</u> <u>6</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding anything to the contrary contained in this <u>Section</u> <u>6</u>, each Stockholder shall be released, pro rata, from any lock-up agreement entered into pursuant to this <u>Section</u> <u>6</u> in the event and to the extent that the managing underwriter(s) or the Company permit any discretionary waiver or termination of the restrictions of any lock-up agreement pertaining to any officer, director or other Stockholder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Merger Lock-Up</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Stockholder agrees that it shall not Transfer any Stockholder Securities owned either of record or beneficially (as defined in the Exchange Act) by such Stockholder on the date of this Agreement or hereafter acquired, except in compliance with the terms and conditions set forth in this <u>Section</u> <u>7</u>. Any attempt by any Stockholder to Transfer any Stockholder Securities not in compliance with this <u>Section</u> <u>7</u> shall be null and void, and the Company shall not, and shall cause any transfer agent not to, give any effect in the Company's share register to such attempted Transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) During the Merger Lock-Up Period, the Stockholders shall not Transfer any Stockholder Securities without the prior written consent of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any Stockholder Securities held by the Stockholders after the Merger Lock-Up Period shall cease to be subject to any restrictions on Transfer set forth in this <u>Section</u> <u>7</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding the foregoing, any Stockholder may at any time Transfer, without the prior written consent of the Company, its Stockholder Securities (i) to one or more of its Permitted Transferees, (ii) as a bona fide gift or gifts to charitable organization transferees or recipients in an aggregate amount, together with any Affiliate of such Stockholder not to exceed 1% of the total number of shares of Common Stock then outstanding or (iii) by pledging, hypothecating or otherwise granting a security interest in Stockholder Securities to one or more lending institutions as collateral or security for any loan, advance or extension of credit and any transfer upon foreclosure upon such Stockholder Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If any Securityholder of Registrable Securities is granted an early release from the restrictions described herein during the Merger Lock-Up Period with respect to any Registrable Securities, then immediately upon such early release each other Stockholder shall also be deemed to have been granted an early release from its obligations hereunder with respect to a pro rata amount of Registrable Securities; <u>provided</u>, <u>however</u>, that the Company shall not be required to provide such pro rata early release with respect to any early release granted to the 6% Bucket.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Affiliate Status</u>. Nothing in this Agreement shall be construed as an acknowledgment or admission with respect to any Stockholder's status as an Affiliate of the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>All Shares of Common Stock Held by Stockholders</u>. The terms and conditions of this Agreement govern all shares of Common Stock currently held by any Stockholder or acquired or received by any Stockholder or transferee subsequent to the date of this Agreement. In the event of a conflict between the terms of this Agreement and similar terms in an option agreement or other agreement governing shares of Common Stock held by a Stockholder, the terms of this Agreement shall govern. A Permitted Transferee that acquires shares of Common Stock in accordance and pursuant to the terms set forth herein from a Stockholder shall be required to execute a Joinder and become a Stockholder with respect to such shares of Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Reclassification</u>. In the event that any shares of Common Stock should, as a result of a stock split or stock dividend or combination of shares of Common Stock or any other change or exchange for other securities by re-classification, re-organization, re-designation, redenomination, sub-division, redemption, purchase by the Company of shares of Common Stock, merger, consolidation, re-capitalization, split-up, spinoff, partial or complete liquidation, sale of assets, distribution to stockholders, combination of shares of Common Stock or otherwise, be increased or decreased or changed into or exchanged for a different number or kind of shares of Common Stock or of another entity the number of shares of Common Stock held by the Stockholders shall be appropriately and proportionately adjusted to reflect such action and the terms and provisions of this Agreement shall apply to all of the share capital of any class of the Company now owned or that may be issued hereafter to the Stockholders in consequence of any such event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Severability</u>. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Specific Performance</u>. It is specifically understood and agreed that any breach of the provisions of this Agreement by any Person subject hereto will result in irreparable injury to the other parties hereto, that the remedy at law alone will be an inadequate remedy for such breach, that, in addition to any other remedies which they may have, such other parties may enforce their respective rights by actions for specific performance in federal or state courts in the State of Delaware (to the extent permitted by law).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Governing Law</u>. This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of Delaware, other than conflict of laws principles thereof directing the application of any law other than that of the State of Delaware. Courts within the State of Delaware will have jurisdiction over all disputes between the parties hereto arising out of or relating to this Agreement, the other Transaction Documents, and the agreements, instruments and documents contemplated hereby. The parties hereby consent to and agree to submit to the jurisdiction of such courts. Each of the parties hereto waives, and agrees not to assert in any such dispute, to the fullest extent permitted by applicable law, (i) any claim that such party is not personally subject to the jurisdiction of such courts, (ii) any claim that such party and such party's property is immune from any legal process issued by such courts, or (iii) any litigation commenced in such courts is brought in an inconvenient forum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Waiver of Jury Trial</u>. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY PROCEEDING (WHETHER BASED IN CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY TRANSACTION OR AGREEMENT CONTEMPLATED HEREBY OR THE ACTIONS OF ANY PARTY HERETO IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE OR ENFORCEMENT HEREOF.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Attorneys' Fees</u>. If any action that law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party will be entitled to recover reasonable attorneys' fees and other costs incurred in such proceeding, in addition to any relief which such party may be entitled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Notices</u>. All notices, requests, claims, demands or other communications that are required or may be given pursuant to the terms of this Agreement shall be in writing and shall be deemed to have been duly given (i) when delivered, if delivered by hand, (ii) one (1) Business Day after transmitted, if transmitted by a nationally recognized overnight courier service, (iii) when emailed, if transmitted by email (provided no "bounce back," out of office replay, or notice of non-delivery is received), or (iv) three (3) Business Days after mailing, if mailed by registered or certified mail (return receipt requested), to the parties at the following addresses (or at such other address for a party as shall be specified in a notice given in accordance with this <u>Section</u> <u>8(i)</u>):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If to Company:

8909 Purdue Road, Suite 300

Indianapolis, IN 46268

Attention: Chad Pulley

Email: [email address]

With a copy to (which shall not constitute notice):

Simpson Thacher & Bartlett LLP

425 Lexington Avenue

New York, NY 10017

Attention: Joshua Ford Bonnie and Jonathan Ozner

Email: [email address]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[email address]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If to the Stockholders: to the address specified on the signature page hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Complete Agreement</u>. This Agreement constitutes the entire agreement and understanding of the parties hereto with respect to the subject matter hereof, and supersedes all prior agreements and understandings relating to such subject matter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Amendments and Waivers</u>. This Agreement may be amended, modified or waived solely by an instrument in writing executed by the Company and the Stockholders beneficially owning at least two-thirds of the then issued and outstanding shares of Common Stock owned by all Stockholders; <u>provided</u>, that any amendment, modification or waiver modifying the rights or obligations of any Stockholder in a manner that disproportionately affects the rights or obligations of such Stockholder relative to the rights of other Stockholders, shall, in each case, only be effective with that Stockholder's prior written consent.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Pronouns</u>. Whenever the context may require, any pronouns used in this Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns and pronouns shall include the plural, and vice versa.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Counterparts; Electronic Signatures</u>. This Agreement may be executed in any number of counterparts (including counterparts transmitted electronically in portable document format (pdf) or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com), with the same effect as if the signatures to each counterpart were upon a single instrument, each of which shall be deemed to be an original, and all of which together shall constitute one and the same document. The parties hereto irrevocably and unreservedly agree that this Agreement may be executed by way of electronic signatures and the parties agree that this Agreement, or any part thereof, shall not be challenged or denied any legal effect, validity and/or enforceability solely on the ground that it is in the form of an electronic record.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Effectiveness</u>. This Agreement shall become effective upon the consummation of the Merger.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Section</u> <u>Headings and References</u>. The section headings are for the convenience of the parties and in no way alter, modify, amend, limit or restrict the contractual obligations of the parties. Any reference in this Agreement to a particular section or subsection shall refer to a section or subsection of this Agreement, unless specified otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Successors and Assigns</u>. This Agreement shall inure to the benefit of, and be binding upon, the parties hereto and their respective successors, permitted assigns, heirs, executors and administrators. The Stockholders may not Transfer or otherwise assign any of their rights or obligations under this Agreement unless in connection with the Transfer of shares of Common Stock the Permitted Transferee executes a Joinder in accordance with the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Third Parties</u>. Nothing in this Agreement, express or implied, is intended to confer upon any Person, other than the parties to this Agreement and their respective successors and permitted assigns, any rights, remedies, obligations, or liabilities under or by reason of this Agreement except as expressly set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>Representation on Governance Rights</u>. Except as set forth in this Agreement, as of the date of the consummation of the Merger, the Company has not granted any shareholder rights with respect to the Company or any of its subsidiaries (including, without limitation, as to board representation, board observers, information rights, consent rights, or advance notice rights) to any Stockholder.

[*Remainder of Page Intentionally Left Blank*]

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IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto as of the date first written above.

---

| | |
|:---|:---|
| **COMPANY:** | **COMPANY:** |
| **REPUBLIC AIRWAYS HOLDINGS INC.** | **REPUBLIC AIRWAYS HOLDINGS INC.** |
| **By:** | /s/ Joseph P. Allman |
| **Name:** | Joseph P. Allman |
| **Title:** | Senior Vice President and Chief Financial Officer |

---

[*Signature Page to Registration Rights Agreement*]

------

---

| | |
|:---|:---|
| **AMERICAN AIRLINES, INC.** | **AMERICAN AIRLINES, INC.** |
| **By:** | /s/ Nathan Gatten |
| **Name:** | Nathan Gatten |
| **Title:** | EVP, American Eagle, CRE & Gov. Affairs |
| **Address:** | [address] |

---

[*Signature Page to Registration Rights Agreement*]

------

---

| | |
|:---|:---|
| **CONTRARIAN FUNDS, LLC** | **CONTRARIAN FUNDS, LLC** |
| **By:** | /s/ Michael Ring |
| **Name:** | Michael Ring |
| **Title:** | Chief Operating Officer |
| **Address:** | [address] |
| **CONTRARIAN OPPORTUNITY FUND III, L.P.** | **CONTRARIAN OPPORTUNITY FUND III, L.P.** |
| **By:** | /s/ Michael Ring |
| **Name:** | Michael Ring |
| **Title:** | Chief Operating Officer |
| **Address:** | [address] |
| **CONTRARIAN CAPITAL FUND I, LP** | **CONTRARIAN CAPITAL FUND I, LP** |
| **By:** | /s/ Michael Ring |
| **Name:** | Michael Ring |
| **Title:** | Chief Operating Officer |
| **Address:** | [address] |

---

[*Signature Page to Registration Rights Agreement*]

------

---

| | |
|:---|:---|
| **DELTA AIR LINES, INC.** | **DELTA AIR LINES, INC.** |
| **By:** | /s/ Dani Janki |
| **Name:** | Dani Janki |
| **Title:** | Executive Vice President & CFO |
| **Address:** | [address] |

---

[*Signature Page to Registration Rights Agreement*]

------

---

| | |
|:---|:---|
| **EMBRAER AIRCRAFT CUSTOMER SERVICES, INC.** | **EMBRAER AIRCRAFT CUSTOMER SERVICES, INC.** |
| **By:** | /s/ Fábio Motta Silva |
| **Name:** | Fábio Motta Silva |
| **Title:** | Financial Manager |
| **Address:** | [address] |
| **By:** | /s/ Michael Klevens |
| **Name:** | Michael Klevens |
| **Title:** | Corporate Secretary |
| **Address:** | [address] |
| **EMBRAER FINANCE LTD.** | **EMBRAER FINANCE LTD.** |
| **By:** | /s/ Felipe Santana Santiago de Lima |
| **Name:** | Felipe Santana Santiago de Lima |
| **Title:** | President and Treasurer |
| **Address:** | [address] |
| **By:** | /s/ Daniel Vieira de Biasi Cordeiro |
| **Name:** | Daniel Vieira de Biasi Cordeiro |
| **Title:** | Vice President |
| **Address:** | [address] |
| **EMBRAER NETHERLANDS B.V.** | **EMBRAER NETHERLANDS B.V.** |
| **By:** | /s/ Andreia Pereira de Jesus |
| **Name:** | Andreia Pereira de Jesus |
| **Title:** | Management board member |
| **Address:** | [address] |
| **By:** | /s/ Ricardo Carneiro Bechara |
| **Name:** | Ricardo Carneiro Bechara |
| **Title:** | Management board member |
| **Address:** | [address] |

---

[*Signature Page to Registration Rights Agreement*]

------

---

| | |
|:---|:---|
| **OWL CREEK INVESTMENTS II, LLC** | **OWL CREEK INVESTMENTS II, LLC** |
| **By:** | /s/ Kevin Dibble |
| **Name:** | Kevin Dibble |
| **Title:** | General Counsel & Co-COO |
| **Address:** | [address] |
| **OWL CREEK INVESTMENTS III, LLC** | **OWL CREEK INVESTMENTS III, LLC** |
| **By:** | /s/ Kevin Dibble |
| **Name:** | Kevin Dibble |
| **Title:** | General Counsel & Co-COO |
| **Address:** | [address] |
| **OWL CREEK SPECIAL SITUATIONS FUND, L.P.** | **OWL CREEK SPECIAL SITUATIONS FUND, L.P.** |
| **By:** | /s/ Kevin Dibble |
| **Name:** | Kevin Dibble |
| **Title:** | General Counsel & Co-COO |
| **Address:** | [address] |

---

[*Signature Page to Registration Rights Agreement*]

------

---

| | |
|:---|:---|
| **UNITED AIRLINES, INC.** | **UNITED AIRLINES, INC.** |
| **By:** | /s/ Michael Leskinen |
| **Name:** | Michael Leskinen |
| **Title:** | Executive Vice President and Chief Financial Officer |
| **Address:** | United Airlines, Inc.<br> [address] |
| **Email:** | [email address]<br> Attention: UAX Notices |
| with a copy (which shall not constitute notice) to:<br>Sidley Austin LLP<br> 1000 Louisiana St., St. 5900<br> Houston, TX 77002 | with a copy (which shall not constitute notice) to:<br>Sidley Austin LLP<br> 1000 Louisiana St., St. 5900<br> Houston, TX 77002 |
| **Email:** | [email address]; [email address]<br> Attention: Kevin Lewis; Atman Shukla |

---

[*Signature Page to Registration Rights Agreement*]

------

**<u>Schedule 1</u>**

**<u>THE STOCKHOLDERS</u>**

---

| | |
|:---|:---|
| **Name of Stockholder** | **Address** |
| **American Airlines, Inc.** | [address] |
| **Contrarian Funds, LLC** | [address] |
| **Contrarian Opportunity Fund III, L.P.** | [address] |
| **Contrarian Capital Fund I, LP** | [address] |
| **Delta Air Lines, Inc.** | [address] |
| **Embraer Aircraft Customer Services** | [address] |
| **Embraer Finance Ltd.** | [address] |
| **Embraer Netherlands B.V.** | [address] |
| **Owl Creek Investments II, LLC** | [address] |
| **Owl Creek Investments III, LLC** | [address] |
| **Owl Creek Special Situations Fund, L.P.** | [address] |
| **United Airlines, Inc.** | [address] |

---

------

**<u>Schedule 2</u>**

**<u>ACCEPTABLE UNDERWRITERS</u>**

---

| | |
|:---|:---|
| Banco Santander, S.A. | MUFG Securities Americas Inc. |
| Barclays Capital Inc. | Natixis Securities Americas LLC |
| BMO Capital Markets Corp. | NatWest Markets Securities Inc. |
| BNP Paribas Securities Corp. | Piper Sandler & Co. |
| BNY Mellon Capital Markets, LLC | PNC Bank National Association |
| BofA Securities, Inc. | Raymond James & Associates, Inc. |
| BTIG, LLC | RBC Capital Markets, LLC |
| Canadian Imperial Bank of Commerce | RBS Securities Inc. |
| Citigroup Global Markets Inc. | Regions Securities LLC |
| Cowen and Company, LLC | Robert W. Baird & Co. Incorporated |
| Credit Agricole Securities (USA) Inc. | Rothschild & Co US Inc. |
| Deutsche Bank Securities Inc. | Santander US Capital Markets LLC |
| Evercore Group L.L.C. | SMBC Nikko Securities America, Inc. |
| Fifth Third Securities, Inc. | Standard Chartered Bank |
| Goldman Sachs & Co. LLC | Stifel, Nicolaus & Company, Incorporated |
| J.P. Morgan Securities LLC | TD Securities (USA) LLC |
| Jefferies LLC | Truist Securities, Inc. |
| KeyBanc Capital Markets, Inc. | U.S. Bancorp Investments, Inc. |
| Macquarie Capital (USA) Inc. | UBS Securities LLC |
| Moelis & Company LLC | Wells Fargo Securities, LLC |
| Morgan Stanley & Co. LLC |  |

---

------

**<u>Exhibit A</u>**

**FORM OF JOINDER** 

This JOINDER TO THE REGISTRATION RIGHTS AGREEMENT (this "<u>Joinder</u>") is dated as of _______________, 20____ and is made by _____________________, a ___________________, in connection with that certain Registration Rights Agreement dated [•], 2025 between Republic Airways Holdings Inc. and certain stockholders named therein (the "<u>Registration Rights Agreement</u>"). Capitalized terms used but not defined herein shall have the meanings set forth in the Registration Rights Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. By executing and delivering this Joinder, the undersigned hereby becomes a party to the Registration Rights Agreement as a Stockholder thereunder and agrees to be bound by all of the terms, covenants and conditions set forth therein and in any other Transaction Document with the same force and effect as if originally named therein as a Stockholder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. As of the date of this Joinder, the undersigned represents and warrants to Company and the other Stockholders all of the representations and warranties contained in Section 3 of the Registration Rights Agreement, which shall apply in respect to this Joinder *mutatis mutandis*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The address to which notices may be sent to the undersigned is set forth below the signature of the undersigned.

---

| | |
|:---|:---|
| **Date:____________** | **Name of New Stockholder** |
|  | **By:** |
|  | **Name:** |
|  | **Title:** |
|  | **Address:** |

---

------

**Acknowledgement by Assigning Stockholder:** 

---

| | |
|:---|:---|
| Date: ____________ | **Name of Assigning Stockholder** |
|  | **By:** |
|  | **Name:** |
|  | **Title:** |
|  | **Address:** |

---

## Exhibit 10.17

**Exhibit 10.17** 

**INDEMNIFICATION AGREEMENT** 

This Indemnification Agreement is dated as of _________, 202_ (this "**<u>Agreement</u>**") and is between Republic Airways Holdings Inc., a Delaware corporation (the "**<u>Company</u>**"), and the undersigned director/officer of the Company (the "**<u>Indemnitee</u>**").

**<u>Background</u>**

The Company believes that, in order to attract and retain highly competent persons to serve as directors or in other capacities, including as officers, it must provide such persons with adequate protection through indemnification against the risks of claims and actions against them arising out of their services to and activities on behalf of the Company.

The Company desires and has requested the Indemnitee to serve, or to continue to serve, as a director and/or officer of the Company and, in order to induce the Indemnitee to serve, or to continue to serve, in such capacity, the Company is willing to grant the Indemnitee the indemnification provided for herein. The Indemnitee is willing to so serve, or to continue to serve, on the basis that such indemnification be provided.

The parties by this Agreement desire to set forth their agreement regarding indemnification and the advancement of expenses.

In consideration of the Indemnitee's service to the Company and the covenants and agreements set forth below, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:

**Section 1. <u>Indemnification</u>.** To the fullest extent permitted by applicable law:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company shall indemnify the Indemnitee if the Indemnitee was or is made or is threatened to be made a party to, or is otherwise involved in, as a witness or otherwise, any threatened, pending or completed action, suit or proceeding (brought in the right of the Company or otherwise), whether civil, criminal, administrative or investigative and whether formal or informal, including any and all appeals, by reason of the fact that the Indemnitee is or was or has agreed to serve as a director or officer of the Company, or while serving as a director or officer of the Company, is or was serving or has agreed to serve at the request of the Company as a director, officer, employee or agent (which, for purposes hereof, shall include a trustee, fiduciary, partner or manager or similar capacity) of another corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other enterprise, or by reason of any action alleged to have been taken or omitted by the Indemnitee in any such capacity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to <u>Section</u> <u>6</u>, the indemnification provided by this <u>Section</u> <u>1</u> shall be from and against all loss and liability suffered and expenses (including attorneys' fees and expenses), judgments, fines and amounts paid in settlement actually and reasonably incurred by or on behalf of the Indemnitee in connection with such action, suit or proceeding, including any appeals (collectively, "**<u>Losses</u>**").

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**Section 2. <u>Advancement of Expenses</u>.** To the fullest extent permitted by applicable law, but subject to the terms of this Agreement and following notice pursuant to <u>Section</u> <u>3(a)</u> below, expenses (including attorneys' fees and expenses) incurred by the Indemnitee in appearing at, participating in or defending, or otherwise arising out of or related to, any action, suit or proceeding described in <u>Section</u> <u>1(a)</u> shall be paid by the Company in advance of the final disposition of such action, suit or proceeding, or in connection with any action, suit or proceeding brought to establish or enforce a right to indemnification or advancement of expenses pursuant to <u>Section</u> <u>3</u> (an "**<u>advancement of expenses</u>**"), within 30 days after receipt by the Company of a statement or statements from the Indemnitee requesting such advancement of expenses from time to time; *provided* that such 30-day period may be extended for a reasonable time, not to exceed an additional 30 days, if the person or entity making the determination with respect to entitlement to indemnification in good faith requires such additional time for the obtaining or evaluating of documentation or information relating thereto. The Indemnitee hereby undertakes to repay any amounts so advanced (without interest) to the extent that it is ultimately determined by final judicial decision from which there is no further right to appeal (a "**<u>final adjudication</u>**") that the Indemnitee is not entitled to be indemnified or entitled to advancement of expenses under this Agreement. No other form of undertaking shall be required of the Indemnitee other than the execution of this Agreement. This <u>Section</u> <u>2</u> shall be subject to <u>Section</u> <u>3(b)</u> and shall not apply to any claim made by the Indemnitee for which indemnity is excluded pursuant to <u>Section</u> <u>6</u>.

**Section 3. <u>Procedure for Indemnification; Notification and Defense of Claim</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Promptly after receipt by the Indemnitee of notice of the commencement of any action, suit or proceeding, the Indemnitee shall, if any indemnification, advancement or other claim in respect thereof is to be sought from or made against the Company hereunder, notify the Company in writing of the commencement thereof. The failure to promptly notify the Company of the commencement of any action, suit or proceeding, or of the Indemnitee's request for indemnification, advancement or other claims shall not relieve the Company from any liability that it may have to the Indemnitee hereunder and shall not constitute a waiver or release by the Indemnitee of any rights hereunder or otherwise, except to the extent the Company is actually and materially prejudiced in its defense of such action, suit or proceeding as a result of such failure. To submit a request for indemnification under <u>Section</u> <u>1</u>, the Indemnitee shall submit to the Company a written request therefor. Any notice by the Indemnitee under this <u>Section</u> <u>3</u> should include such documentation and information as is reasonably available to the Indemnitee and is reasonably necessary to enable the Company to determine whether and to what extent the Indemnitee is entitled to indemnification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) With respect to any action, suit or proceeding of which the Company is so notified as provided in this Agreement, the Company shall, subject to the last two sentences of this <u>Section</u> <u>3(b)</u>, be entitled to assume the defense of such action, suit or proceeding, with counsel reasonably acceptable to the Indemnitee, upon the delivery to the Indemnitee of written notice of its election to do so. After delivery of such notice, approval of such counsel by the Indemnitee and the retention of such counsel by the Company, the Company will not be liable to the Indemnitee under this Agreement for any subsequently incurred fees of separate counsel engaged by the Indemnitee with respect to the same action, suit or proceeding unless the employment of separate counsel by the Indemnitee has been previously authorized in writing by

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the Company. Notwithstanding the foregoing, if the Indemnitee, based on the advice of his or her counsel, shall have reasonably concluded (with written notice being given to the Company setting forth the basis for such conclusion) that, in the conduct of any such defense, there is or is reasonably likely to be a conflict of interest or position between the Company and the Indemnitee with respect to a significant issue, then the Company will not be entitled, without the written consent of the Indemnitee, to assume such defense. In addition, the Company will not be entitled, without the written consent of the Indemnitee, to assume the defense of any claim brought by or in the right of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The determination whether to grant the Indemnitee's indemnification request shall be made promptly and in any event within 30 days following the Company's receipt of a request for indemnification in accordance with <u>Section</u> <u>3(a)</u>. If the determination of whether to grant the Indemnitee's indemnification request shall not have been made within such 30-day period, the requisite determination of entitlement to indemnification shall, subject to <u>Section</u> <u>6</u>, to the fullest extent not prohibited by law, nonetheless be deemed to have been made and the Indemnitee shall be entitled to such indemnification, absent (i) an intentional misstatement by the Indemnitee of a material fact, or an intentional omission of a material fact necessary to make the Indemnitee's statement not misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification under applicable law; *provided*, *however*, that such 30-day period may be extended for a reasonable time, not to exceed an additional 30 days, if the person or entity making the determination with respect to entitlement to indemnification in good faith requires such additional time for the obtaining or evaluating of documentation or information relating thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In the event that (i) the Company determines in accordance with this <u>Section</u> <u>3</u> that the Indemnitee is not entitled to indemnification under this Agreement, (ii) the Company denies a request for indemnification, in whole or in part, or fails to respond or make a determination of entitlement to indemnification within 30 days following receipt of a request for indemnification as described above, (iii) payment of indemnification is not made within such 30-day period (as it may be extended), (iv) advancement of expenses is not timely made in accordance with <u>Section</u> <u>2</u> or (v) the Company or any other person takes or threatens to take any action to declare this Agreement void or unenforceable, or institutes any litigation or other action or proceeding designed to deny, or to recover from, the Indemnitee the benefits provided or intended to be provided to the Indemnitee hereunder, the Indemnitee shall be entitled to an adjudication in any court of competent jurisdiction of his or her entitlement to such indemnification or advancement of expenses, as applicable. The Indemnitee's expenses (including attorneys' fees and expenses) incurred in connection with successfully establishing the Indemnitee's right to indemnification or advancement of expenses, in whole or in part, in any such proceeding or otherwise shall also be indemnified by the Company to the fullest extent permitted by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Indemnitee shall be presumed to be entitled to indemnification and advancement of expenses under this Agreement upon submission of a request therefor in accordance with <u>Section</u> <u>2</u> or <u>Section</u> <u>3</u>, as the case may be. The Company shall have the burden of proof in overcoming such presumption, and such presumption shall be used as a basis for a determination of entitlement to indemnification and advancement of expenses unless the Company overcomes such presumption by clear and convincing evidence. For purposes of this

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Agreement, to the fullest extent permitted by applicable law, the Indemnitee shall be deemed to have acted in good faith if the Indemnitee's action is based on the records or books of account of the Company, including financial statements, or on information supplied to the Indemnitee by the officers, employees or committees of the Board of Directors of the Company (the "**<u>Board of Directors</u>**"), or on the advice of legal counsel or other advisors (including financial advisors and accountants) for the Company or on information or records given in reports made to the Company by an independent certified public accountant or by an appraiser or other expert or advisor selected by the Company, and the knowledge and/or actions, or failure to act, of any director, officer, agent or employee of the Company or relevant enterprises will not be imputed to the Indemnitee in a manner that limits or otherwise adversely affects the Indemnitee's rights hereunder.

**Section 4. <u>Insurance and Subrogation</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company shall use its reasonable best efforts to purchase and maintain a policy or policies of directors' and officers' liability insurance ("**<u>D&O Insurance</u>**") with reputable insurance companies with A.M. Best ratings of "A-" or better (or, if A.M. Best does not rate the insurance company, an equivalent rating by an equivalent licensed insurance rating organization or agency), providing the Indemnitee with coverage for any liability asserted against, and incurred by, the Indemnitee or on the Indemnitee's behalf by reason of the fact that the Indemnitee is or was or has agreed to serve as a director or officer of the Company, or while serving as a director or officer of the Company, is or was serving or has agreed to serve at the request of the Company as a director, officer, employee or agent (which, for purposes hereof, shall include a trustee, fiduciary, partner or manager or similar capacity) of another corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other enterprise, or arising out of the Indemnitee's status as such, whether or not the Company would have the power to indemnify the Indemnitee against such liability under the provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding any other provisions of this Agreement to the contrary, the Company shall have no obligation to obtain or maintain D&O Insurance if the Company determines in good faith that: (i) such insurance is not reasonably available; (ii) the premium costs for such insurance are disproportionate to the amount of coverage provided; (iii) the coverage provided by such insurance is limited by exclusions so as to provide an insufficient benefit; (iv) the Company is to be acquired and a tail policy of reasonable terms and duration is purchased for pre-closing acts or omissions by the Indemnitee; or (v) the Company is to be acquired and D&O Insurance, with substantially the same terms and conditions as the D&O Insurance in place prior to such acquisition, will be maintained by the acquirer that covers pre-closing acts and omissions by the Indemnitee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In all policies of D&O Insurance, the Indemnitee shall qualify as an insured in such a manner as to provide the Indemnitee the same rights and benefits as are accorded to the most favorably insured (i) of the Company's independent directors (as defined by the insurer) if the Indemnitee is such an independent director; (ii) of the Company's non-independent directors if the Indemnitee is not an independent director; or (iii) of the Company's officers if the Indemnitee is an officer of the Company. If the Company has D&O Insurance in effect at the time the Company receives from the Indemnitee any notice of the

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commencement of an action, suit or proceeding, the Company shall give prompt notice of the commencement of such action, suit or proceeding to the insurers in accordance with the procedures set forth in the policy. The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as a result of such proceeding in accordance with the terms of such policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Subject to <u>Section</u> <u>15</u>, in the event of any payment by the Company under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of the Indemnitee with respect to any D&O Insurance maintained by the Company. The Indemnitee shall execute all papers required and take all reasonable action necessary to secure such rights, including execution of such documents as are necessary to enable the Company to bring suit to enforce such rights in accordance with the terms of such D&O Insurance. The Company shall pay or reimburse all expenses actually and reasonably incurred by the Indemnitee in connection with such subrogation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Subject to <u>Section</u> <u>15</u>, the Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable hereunder (including, but not limited to, judgments, fines and amounts paid in settlement, and excise taxes or penalties relating to the Employee Retirement Income Security Act of 1974, as amended ("**<u>ERISA</u>**")) if and to the extent that the Indemnitee has otherwise actually received such payment under this Agreement or any insurance policy, contract, agreement or otherwise.

**Section 5. <u>Certain Definitions</u>.** For purposes of this Agreement, the following definitions shall apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The term "**<u>action, suit or proceeding</u>**" shall be broadly construed and shall include, without limitation, the investigation, preparation, prosecution, defense, settlement, arbitration and appeal of, and the giving of testimony in, any threatened, pending or completed claim, counterclaim, cross claim, action, suit, arbitration, alternative dispute mechanism or proceeding, whether civil, criminal, administrative or investigative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The term "**<u>by reason of the fact that the Indemnitee is or was or has agreed to serve as a director or officer of the Company, or while serving as a director or officer of the Company, is or was serving or has agreed to serve at the request of the Company as a director, officer, employee or agent (which, for purposes hereof, shall</u> <u>include a trustee, fiduciary, partner or manager or similar capacity) of another corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other enterprise</u>**" shall be broadly construed and shall include, without limitation, any actual or alleged act or omission to act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The term "**<u>expenses</u>**" shall be broadly construed and shall include, without limitation, all direct and indirect costs of any type or nature whatsoever (including, without limitation, all attorneys' fees and expenses and related disbursements, appeal bonds, other out-of-pocket costs, retainers, court costs, transcript costs, fees of experts and other professionals, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, any federal, state, local or foreign taxes imposed on the Indemnitee as a result of the actual or deemed receipt of any payments under this

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Agreement, ERISA excise taxes and penalties and reasonable compensation for time spent by the Indemnitee for which the Indemnitee is not otherwise compensated by the Company or any third party), actually and reasonably incurred by the Indemnitee in connection with either the investigation, defense or appeal of an action, suit or proceeding or establishing or enforcing a right to indemnification under this Agreement or otherwise incurred in connection with a claim that is indemnifiable hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The term "**<u>judgments, fines and amounts paid in settlement</u>**" shall be broadly construed and shall include, without limitation, all direct and indirect payments of any type or nature whatsoever, as well as any penalties or excise taxes assessed on a person with respect to an employee benefit plan.

**Section 6. <u>Limitation on Indemnification</u>.** Notwithstanding any provision of this Agreement to the contrary, the Company shall not be obligated pursuant to this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Proceedings Initiated by the Indemnitee</u>. To indemnify or advance expenses to the Indemnitee with respect to an action, suit or proceeding (or part thereof) initiated voluntarily by the Indemnitee, except with respect to any compulsory counterclaim brought by the Indemnitee, unless (i) such indemnification is expressly required to be made by law, (ii) such action, suit or proceeding (or part thereof) was authorized or consented to by the Board of Directors, (iii) such indemnification is provided by the Company, in its sole discretion, pursuant to the powers vested in the Company under applicable law or (iv) such action, suit or proceeding is brought to establish or enforce a right to indemnification or advancement of expenses under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Action for Indemnification</u>. To indemnify the Indemnitee for any expenses incurred by the Indemnitee with respect to any action, suit or proceeding instituted by the Indemnitee to enforce or interpret this Agreement, unless the Indemnitee is successful in such action, suit or proceeding in establishing the Indemnitee's right, in whole or in part, to indemnification or advancement of expenses hereunder (in which case such indemnification or advancement shall be to the fullest extent permitted by applicable law), or unless and to the extent that the court in such action, suit or proceeding shall determine that, despite the Indemnitee's failure to establish his or her right to indemnification, the Indemnitee is entitled to indemnification for such expenses; *provided*, *however*, that nothing in this Section 6(b) is intended to limit the Company's obligations with respect to the advancement of expenses to the Indemnitee in connection with any such action, suit or proceeding instituted by the Indemnitee to enforce or interpret this Agreement, as provided in Section 2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Actions Based on Federal Statutes Regarding Profit Recovery, Return of Bonus Payments, and Reimbursement Under Clawback Policies</u>. To indemnify the Indemnitee on account of (i) any suit in which judgment is rendered against the Indemnitee for disgorgement of profits made from the purchase or sale by the Indemnitee of securities of the Company pursuant to the provisions of Section 16(b) of the Securities Exchange Act of 1934, as amended (the "**<u>Exchange Act</u>**"), (ii) any reimbursement of the Company by the Indemnitee of any bonus or other incentive-based or equity-based compensation or of any profits realized by the Indemnitee from the sale of securities of the Company, as required in each case under the Exchange Act (including any such reimbursements that arise from an accounting restatement of

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the Company pursuant to Section 304 of the Sarbanes-Oxley Act of 2002 (the "**<u>Sarbanes-Oxley Act</u>**"), or the payment to the Company of profits arising from the purchase and sale by the Indemnitee of securities in violation of Section 306 of the Sarbanes-Oxley Act), or (iii) any reimbursement of the Company by the Indemnitee of any compensation pursuant to any compensation recoupment or clawback policy adopted by the Board of Directors or the compensation committee of the Board of Directors, including but not limited to, any such policy adopted to comply with stock exchange listing requirements implementing Section 10D of the Exchange Act (any such policy, a "**<u>Clawback Policy</u>**"). In furtherance of this Section 6(c), the Indemnitee hereby agrees to abide by the terms of any Clawback Policy, including, without limitation, by returning any compensation to the Company to the extent required by, and in a manner permitted by, such Clawback Policy, and hereby understands and agrees that the Indemnitee shall not be entitled to any (x) indemnification for any liability (including any amounts owed by the Indemnitee in a judgment or settlement of any proceeding relating to such Clawback Policy (a "**<u>Clawback Proceeding</u>**")) or loss (including judgments, fines, taxes, penalties or amounts paid in settlement by or on behalf of the Indemnitee) incurred by the Indemnitee in connection with any Clawback Proceeding or (y) indemnification or advancement of expenses (including attorneys' fees and expenses) from the Company and or any subsidiary of the Company incurred by the Indemnitee in connection with any Clawback Proceeding; *provided*, *however*, if the Indemnitee is successful on the merits in the defense of any claim asserted against the Indemnitee in a Clawback Proceeding, the Indemnitee shall be indemnified for the expenses (including attorneys' fees and expenses) the Indemnitee reasonably incurred to defend such claim. The Indemnitee hereby knowingly, voluntarily and intentionally waives, and agrees not to assert any claim regarding, all indemnification, advancement of expenses and other rights to which the Indemnitee is now or becomes entitled to under this Agreement, the Company's certificate of incorporation and bylaws, the governing documents of each subsidiary of the Company, and the General Corporation Law of the State of Delaware (the "**<u>DGCL</u>**"), in each case to the extent such waiver and agreement is necessary to give effect to the preceding sentence of this paragraph. The Indemnitee agrees and acknowledges that the compensation the Indemnitee has or will receive from the Company or any of its subsidiaries constitutes fair and adequate consideration in exchange for the waiver and agreement provided by the Indemnitee in this paragraph.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Fraud or Willful Misconduct</u>. To indemnify the Indemnitee on account of conduct by the Indemnitee where such conduct has been determined by a final (not interlocutory) judgment or other adjudication of a court or arbitration or administrative body of competent jurisdiction as to which there is no further right or option of appeal, or the time within which an appeal must be filed has expired without such filing, to have been knowingly fraudulent or to constitute willful misconduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Prohibited by Law</u>. To indemnify or advance expenses to the Indemnitee in any circumstance where such indemnification or advancement has been determined by a final (not interlocutory) judgment or other adjudication of a court or arbitration or administrative body of competent jurisdiction as to which there is no further right or option of appeal, or the time within which an appeal must be filed has expired without such filing having been made, to be prohibited by law.

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**Section 7. <u>Change in Control</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company agrees that if there is a change in control of the Company, then with respect to all matters thereafter arising concerning the rights of the Indemnitee to indemnification and advancement of expenses under this Agreement, any other agreement or the Company's certificate of incorporation or bylaws now or hereafter in effect, the Company shall seek legal advice only from independent counsel selected by the Indemnitee and approved by the Company (which approval shall not be unreasonably withheld). In addition, upon written request by the Indemnitee for indemnification pursuant to <u>Section</u> <u>1</u> or <u>Section</u> <u>3(a)</u>, a determination, if required by applicable law, with respect to the Indemnitee's entitlement thereto shall be made by such independent counsel in a written opinion to the Board of Directors, a copy of which shall be delivered to the Indemnitee. The Company agrees to pay the reasonable fees of the independent counsel referred to above and to indemnify fully such counsel against any and all expenses (including attorneys' fees and expenses), claims, liabilities and damages arising out of or relating to this Agreement or its engagement pursuant hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For purposes of this <u>Section</u> <u>7</u>, the following definitions shall apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) A "**<u>change in control</u>**" shall be deemed to occur upon the earliest to occur after the date of this Agreement of any of the following: (A) any person or group, within the meaning of Section 13(d)(3) of the Exchange Act, obtains ownership, directly or indirectly, of (x) more than 50% of the total voting power of the outstanding capital stock of the Company or applicable successor entity (including any securities convertible into, or exercisable or exchangeable for such capital stock) or (y) all or substantially all of the assets of the Company and its Subsidiaries on a consolidated basis; (B) during any period of two consecutive years (not including any period prior to the execution of this Agreement), individuals who at the beginning of such period constitute the Board of Directors, and any new director (other than a director designated by a person who has entered into an agreement with the Company to effect a transaction described in <u>Sections</u> <u>7(b)(i)(A)</u>, <u>7(b)(i)(C)</u> or <u>7(b)(i)(D)</u> or a director whose initial nomination for, or assumption of office as, a member of the Board of Directors occurs as a result of an actual or threatened solicitation of proxies or consents for election or removal of one or more directors by any person or group other than a solicitation for the election of one or more directors by or on behalf of the Board of Directors) whose election by the Board of the Directors or nomination for election by the Company's stockholders was approved by a vote of at least two-thirds of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute at least a majority of the members of the Board of Directors; (C) the effective date of a merger or consolidation of the Company with any other entity, other than a merger or consolidation that would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) at least 50% of the combined voting power of the voting securities of the surviving entity outstanding immediately after such merger or consolidation and with the power to elect at least a majority of the board of directors or other governing body of such surviving entity; and (D) the approval by the stockholders of the Company of a complete liquidation of the Company or an agreement for the sale or disposition by the Company of all or substantially all of the Company's assets. For purposes of this <u>Section</u> <u>7(b)(i)</u> only, "**<u>person</u>**" shall have the meaning as set forth in Sections 13(d) and 14(d) of the Exchange Act; *provided*, *however*, that "person" shall exclude (a) the Company, (b) any trustee or other fiduciary holding securities under an employee benefit plan of the Company and (c) any corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The term "**<u>independent counsel</u>**" means a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither presently is, nor in the past five years has been, retained to represent: (A) the Company or the Indemnitee in any matter material to either such party or (B) any other party to the action, suit or proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term "independent counsel" shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or the Indemnitee in an action to determine the Indemnitee's rights under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The term "**<u>Subsidiary</u>**" means, with respect to the Company (or an applicable successor entity), any corporation, partnership, limited liability company, association or other business entity of which (i) if a corporation, a majority of the total voting power of shares of stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors or other governing persons or bodies thereof is at the time owned or controlled, directly or indirectly, by the Company or one or more of the other Subsidiaries of the Company or a combination thereof, or (ii) if a partnership, limited liability company, trust, association or other business entity, a majority of the partnership, limited liability company or other similar ownership interest thereof is at the time owned or controlled, directly or indirectly, by the Company or one or more of the other Subsidiaries of the Company or a combination thereof. For purposes hereof, the Company or its applicable Subsidiary shall be deemed to have a majority ownership interest in a partnership, limited liability company, association or other business entity if the Company or such applicable Subsidiary shall be allocated a majority of partnership, limited liability company, association or other business entity gains or losses or shall be or control the managing director, managing member, manager or general partner of such partnership, limited liability company, association or other business entity.

**Section 8. <u>Certain Settlement Provisions</u>.** The Company shall have no obligation to indemnify the Indemnitee under this Agreement for any amounts paid in settlement of any action, suit or proceeding without the Company's prior written consent. The Company shall not settle any action, suit or proceeding in any manner that would attribute to the Indemnitee any admission of wrongdoing or liability or that would impose any fine or other obligation or restriction on the Indemnitee without the Indemnitee's prior written consent. Neither the Company nor the Indemnitee will unreasonably withhold his, her or its consent to any proposed settlement.

**Section 9. <u>Savings Clause</u>.** If any provision or provisions (or portion thereof) of this Agreement shall be invalidated on any ground by any court of competent jurisdiction, then the Company shall nevertheless indemnify the Indemnitee if the Indemnitee was or is made or is threatened to be made a party or is otherwise involved in (including as a witness) any threatened, pending or completed action, suit or proceeding (brought in the right of the Company or otherwise), whether civil, criminal, administrative or investigative and whether formal or informal, including any and all appeals, by reason of the fact that the Indemnitee is or was or has agreed to serve as a director or officer of the Company, or while serving as a director or officer of the Company, is or was serving or has agreed to serve at the request

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of the Company as a director, officer, employee or agent (which, for purposes hereof, shall include a trustee, fiduciary, partner or manager or similar capacity) of another corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other enterprise, or by reason of any action alleged to have been taken or omitted by the Indemnitee in any such capacity, from and against all Losses suffered by, or incurred by or on behalf of, the Indemnitee in connection with such action, suit or proceeding, including any appeals, to the fullest extent permitted by any applicable portion of this Agreement that shall not have been invalidated.

**Section 10. <u>Contribution</u>.** In order to provide for just and equitable contribution in circumstances in which the indemnification provided for herein is held by a court of competent jurisdiction to be unavailable to the Indemnitee in whole or in part, it is agreed that, in such event, the Company shall, to the fullest extent permitted by law, contribute to the payment of all Losses suffered by, or incurred by or on behalf of, the Indemnitee in connection with any action, suit or proceeding, including any appeals, in an amount that is just and equitable in the circumstances in order to reflect (i) the relative benefits received by the Company and the Indemnitee as a result of the event(s) and/or transaction(s) giving cause to such actions, suit or proceeding; and/or (ii) the relative fault of the Company (and its directors, officers, employees and agents) and the Indemnitee in connection with such event(s) and/or transaction(s); *provided* that, without limiting the generality of the foregoing, such contribution shall not be required where such holding by the court is due to any limitation on indemnification set forth in <u>Section</u> <u>4(d)</u>, <u>Section</u> <u>6</u> or <u>Section</u> <u>8</u>.

**Section 11. <u>Form</u> <u>and Delivery of Communications</u>.** All notices, requests, demands and other communications under this Agreement shall be in writing and shall be deemed to have been duly given if (a) delivered by hand, upon receipt by the party to whom said notice or other communication shall have been directed, (b) mailed by certified or registered mail with postage prepaid, on the third business day after the date on which it is so mailed, (c) mailed by reputable overnight courier, one day after deposit with such courier and with written verification of receipt, or (d) sent by email or facsimile transmission, with receipt of oral confirmation that such transmission has been received. Notice to the Company shall be directed to [name], email: [email], telephone: [telephone number]. Notice to the Indemnitee shall be directed to the Indemnitee's contact information on file with the Company's Secretary or its Human Resources Department.

**Section 12. <u>Nonexclusivity</u>.** The provisions for indemnification to or the advancement of expenses and costs to the Indemnitee under this Agreement shall not limit or restrict in any way the power of the Company to indemnify or advance expenses to the Indemnitee in any other way permitted by law or be deemed exclusive of, or invalidate, any right to which any indemnitee seeking indemnification or advancement of expenses may be entitled under any law, the Company's certificate of incorporation or bylaws, other agreements or arrangements, vote of stockholders or disinterested directors or otherwise, both as to action in the Indemnitee's capacity as an officer, director, employee or agent of the Company and as to action in any other capacity. The Indemnitee's rights hereunder shall inure to the benefit of the heirs, executors and administrators of the Indemnitee.

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**Section 13. <u>Defenses</u>.** In (i) any action, suit or proceeding brought by the Indemnitee to enforce a right to indemnification hereunder (but not in an action, suit or proceeding brought by the Indemnitee to enforce a right to an advancement of expenses) it shall be a defense that, and (ii) any action, suit or proceeding brought by the Company to recover an advancement of expenses pursuant to the terms of an undertaking by the Indemnitee pursuant to <u>Section</u> <u>2</u>, the Company shall be entitled to recover such expenses upon a final adjudication that, the Indemnitee has not met any applicable standard for indemnification set forth in applicable law. Neither the failure of the Company (including its directors who are not parties to such action, a committee of such directors, independent legal counsel or the Company's stockholders) to have made a determination prior to the commencement of such suit that indemnification of the Indemnitee is proper in the circumstances because the Indemnitee has met the applicable standard of conduct set forth in applicable law, nor an actual determination by the Company (including its directors who are not parties to such action, a committee of such directors, independent legal counsel or the Company's stockholders) that the Indemnitee has not met such applicable standard of conduct, shall create a presumption that the Indemnitee has not met the applicable standard of conduct or, in the case of such a suit brought by the Indemnitee, be a defense to such suit.

**Section 14. <u>No Construction as Employment Agreement</u>.** Nothing contained herein shall be construed as giving the Indemnitee any right to be retained as a director or officer of the Company or in the employ of the Company or any other entity. For the avoidance of doubt, the indemnification and advancement of expenses provided under this Agreement shall continue as to the Indemnitee even though he or she may have ceased to be a director, officer, employee or agent of the Company.

**Section 15. <u>Jointly Indemnifiable Claims</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Given that certain jointly indemnifiable claims may arise due to the service of the Indemnitee as a director and/or officer of the Company at the request of Indemnitee-related entities (as defined below), the Company acknowledges and agrees that the Company shall be fully and primarily responsible for payments to the Indemnitee in respect of indemnification or advancement of expenses in connection with any such jointly indemnifiable claims pursuant to and in accordance with the terms of this Agreement, irrespective of any right of recovery the Indemnitee may have from Indemnitee-related entities. Under no circumstance shall the Company be entitled to any right of subrogation or contribution by Indemnitee-related entities, and no right of advancement or recovery the Indemnitee may have from Indemnitee-related entities shall reduce or otherwise alter the rights of the Indemnitee or the obligations of the Company hereunder. In the event that any of Indemnitee-related entities shall make any payment to the Indemnitee in respect of indemnification or advancement of expenses with respect to any jointly indemnifiable claim, Indemnitee-related entity making such payment shall be subrogated to the extent of such payment to all of the rights of recovery of the Indemnitee against the Company, and the Indemnitee shall execute all papers reasonably required and shall do all things that may be reasonably necessary to secure such rights, including the execution of such documents as may be necessary to enable Indemnitee-related entities effectively to bring suit to enforce such rights. The Company and the Indemnitee agree that each of Indemnitee-related entities shall be third-party beneficiaries with respect to this <u>Section</u> <u>15(a)</u> and entitled to enforce this <u>Section</u> <u>15(a)</u> as though each such Indemnitee-related entity were a party to this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For purposes of this <u>Section</u> <u>15</u>, the following terms shall have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The term "**<u>Indemnitee</u><u>-related entities</u>**" means any corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other enterprise (other than the Company or any other corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other enterprise the Indemnitee has agreed, on behalf of the Company or at the Company's request, to serve as a director, officer, employee or agent and which service is covered by the indemnity described in this Agreement) from whom the Indemnitee may be entitled to indemnification or advancement of expenses with respect to which, in whole or in part, the Company may also have an indemnification or advancement obligation (other than as a result of obligations under an insurance policy).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The term "**<u>jointly indemnifiable claims</u>**" shall be broadly construed and shall include, without limitation, any action, suit or proceeding for which the Indemnitee shall be entitled to indemnification or advancement of expenses from both the Company and any Indemnitee-related entity pursuant to the DGCL, any agreement or the certificate of incorporation, bylaws, partnership agreement, operating agreement, certificate of formation, certificate of limited partnership or comparable organizational documents of the Company or Indemnitee-related entities, as applicable.

**Section 16. <u>Interpretation of Agreement</u>.** It is understood that the parties hereto intend this Agreement to be interpreted and enforced so as to provide, in each instance, indemnification and advancement of expenses to the Indemnitee to the fullest extent permitted by law, as the same exists or may hereafter be amended (but, in the case of any such amendment, only to the extent that such amendment permits the Company to provide broader indemnification rights than applicable law permitted the Company to provide prior to such amendment). Whenever the words "include", "includes" or "including" are used in this Agreement, they shall be deemed to be followed by the words "without limitation", whether or not they are in fact followed by those words or words of like import.

**Section 17. <u>Entire Agreement</u>.** This Agreement and the documents expressly referred to herein constitute the entire agreement between the parties hereto with respect to the matters covered hereby, and any other prior or contemporaneous oral or written understandings or agreements with respect to the matters covered hereby are expressly superseded by this Agreement.

**Section 18. <u>Modification and Waiver</u>.** No supplement, modification, waiver or amendment of this Agreement shall be binding unless executed in writing by the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provision hereof (whether or not similar) nor shall such waiver constitute a continuing waiver. For the avoidance of doubt, (a) this Agreement may not be modified or terminated by the Company without the Indemnitee's prior written consent; (b) no amendment, alteration or interpretation of the Company's certificate of incorporation or bylaws or any other

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agreement or arrangement shall limit or otherwise adversely affect the rights provided to the Indemnitee under this Agreement and (c) a right to indemnification or to advancement of expenses arising under a provision of the Company's certificate of incorporation or bylaws or this Agreement shall not be eliminated or impaired by an amendment to such provision after the occurrence of the act or omission that is the subject of the action, suit or proceeding for which indemnification or advancement of expenses is sought.

**Section 19. <u>Successor and Assigns</u>.** All of the terms and provisions of this Agreement shall be binding upon, shall inure to the benefit of and shall be enforceable by the parties hereto and their respective successors, assigns, heirs, executors, administrators and legal representatives. The Company shall require and cause any direct or indirect successor (whether by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Company, by written agreement in form and substance reasonably satisfactory to the Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place.

**Section 20. <u>Service of Process and Venue</u>.** The Company and the Indemnitee hereby irrevocably and unconditionally (a) agree that any action or proceeding arising out of or in connection with this Agreement shall be brought in the Chancery Court of the State of Delaware (the "**<u>Delaware Court</u>**"), (b) consent to submit to the exclusive jurisdiction of the Delaware Court for purposes of any action or proceeding arising out of or in connection with this Agreement, (c) appoint, to the extent such party is not otherwise subject to service of process in the State of Delaware, Corporation Service Company, 251 Little Falls Drive, Wilmington, DE 19808 as its agent in the State of Delaware for acceptance of legal process in connection with any such action or proceeding against such party with the same legal force and validity as if served upon such party personally within the State of Delaware, (d) waive any objection to the laying of venue of any such action or proceeding in the Delaware Court and (e) waive, and agree not to plead or to make, any claim that any such action or proceeding brought in the Delaware Court has been brought in an improper or inconvenient forum.

**Section 21. <u>Governing Law</u>.** This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware. If, notwithstanding the foregoing, a court of competent jurisdiction shall make a final determination that the provisions of the law of any state other than Delaware govern indemnification by the Company of the Indemnitee, then the indemnification provided under this Agreement shall in all instances be enforceable to the fullest extent permitted under such law, notwithstanding any provision of this Agreement to the contrary.

**Section 22. <u>Counterparts</u>.** This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original and all of which together shall be deemed to be one and the same instrument, notwithstanding that both parties are not signatories to the original or same counterpart.

**Section 23. <u>Headings and Section References</u>.** The section and subsection headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. Unless the context otherwise requires, any reference to a "Section" or "paragraph" refers to a Section or paragraph, as the case may be, of this Agreement.

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**Section 24. <u>Electronic Signatures.</u>** This Agreement may be signed by electronic signature and electronic transmission, including via DocuSign or other similar method, and this method of signature is as conclusive of an intention to be bound by this Agreement as if signed by a party's manuscript signature.

[Signature Page Follows]

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This Agreement has been duly executed and delivered to be effective as of the date first written above.

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| | |
|:---|:---|
| **REPUBLIC AIRWAYS HOLDINGS INC.** | **REPUBLIC AIRWAYS HOLDINGS INC.** |
| By: |  |
|  | Name: |
|  | Title: |
| **INDEMNITEE** | **INDEMNITEE** |
| Name: | Name: |

---

[Signature Page to Indemnification Agreement]

## Exhibit 10.18

**Exhibit 10.18** 

**REPUBLIC AIRWAYS HOLDINGS INC.** 

**2020 OMNIBUS INCENTIVE PLAN** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. Purpose**. The purpose of the Republic Airways Holdings Inc. 2020 Omnibus Incentive Plan is to provide a means through which the Company and the other members of the Company Group may attract and retain key personnel, and to provide a means whereby directors, officers, and employees of the Company and the other members of the Company Group can acquire and maintain an equity interest in the Company, or be paid incentive compensation, including incentive compensation measured by reference to the value of Common Stock, thereby strengthening their commitment to the welfare of the Company Group and aligning their interests with those of the Company's stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. Definitions**. The following definitions shall be applicable throughout the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "**<u>Absolute Share Limit</u>**" has the meaning given to such term in Section 5(b) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "**<u>Adjustment Event</u>**" has the meaning given to such term in Section 11(a) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "**<u>Affiliate</u>**" means any Person that directly or indirectly controls, is controlled by, or is under common control with the Company. The term "control" (including, with correlative meaning, the terms "controlled by" and "under common control with"), as applied to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting or other securities, by contract, or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "**<u>Award</u>**" means, individually or collectively, any Incentive Stock Option, Nonqualified Stock Option, Stock Appreciation Right, Restricted Stock, Restricted Stock Unit, Other Equity-Based Award, and Other Cash-Based Award granted under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "**<u>Award Agreement</u>**" means the document or documents by which each Award (other than an Other Cash-Based Award) is evidenced, which may be in written or electronic form.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "**<u>Board</u>**" means the Board of Directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "**<u>Cause</u>**" means, as to any Participant, unless the applicable Award Agreement states otherwise, (i) "Cause", as defined in any employment, severance or consulting agreement between the Participant and the Service Recipient or any severance plan established by the Company for the Participant, each as in effect at the time of such Termination, or (ii) in the absence of any such employment, severance or consulting agreement or severance plan (or the absence of any definition of "Cause" contained therein), then as determined by the Committee or the appropriate supervising officer, the Participant's (A) willful neglect in the performance of the Participant's duties for the Service Recipient or willful or repeated failure or refusal to perform such duties; (B) willful failure to follow the directions of Participant's supervisor; (C) material breach of any applicable restrictive covenants concerning confidentiality, non-competition or non-solicitation; (D) engagement in fraudulent or dishonest actions in Participant's relations with

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the Service Recipient; (E) engagement in conduct in connection with the Participant's employment or service with the Service Recipient, which results in, or could reasonably be expected to result in, material harm to the business or reputation of the Service Recipient or any other member of the Company Group; (F) indictment for, conviction of, or plea of guilty or no contest to (I) any felony or other crime involving an act of moral turpitude or (II) any other crime that results in, or could reasonably be expected to result in, significant harm to the business or reputation of the Service Recipient or any other member of the Company Group; (G) willful violation of the policies or procedures of the Service Recipient, including, but not limited to, those relating to sexual harassment or the disclosure or misuse of confidential information, or those set forth in the manuals or statements of policy of the Service Recipient; (H) larceny, conversion, fraud or misappropriation, embezzlement, or misuse of funds or property belonging to the Service Recipient or any other member of the Company Group; or (I) act of personal dishonesty that involves personal profit in connection with the Participant's employment or service to the Service Recipient; *provided*, in any case, that a Participant's resignation after an event that would be grounds for a Termination for Cause will be treated as a Termination for Cause hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "**<u>Change in Control</u>**" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the acquisition (whether by purchase, merger, consolidation, combination, or other similar transaction) by any Person of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of more than 50% (on a fully diluted basis) of either (A) the then-outstanding shares of Common Stock, taking into account as outstanding for this purpose such Common Stock issuable upon the exercise of options or warrants, the conversion of convertible stock or debt, and the exercise of any similar right to acquire such Common Stock; or (B) the combined voting power of the then-outstanding voting securities of the Company entitled to vote generally in the election of directors; *provided*, *however*, that for purposes of the Plan, the following acquisitions shall not constitute a Change in Control: (I) any acquisition by the Company or any Affiliate; (II) any acquisition by any employee benefit plan sponsored or maintained by the Company or any Affiliate; or (III) in respect of an Award held by a particular Participant, any acquisition by the Participant or any group of Persons including the Participant (or any entity controlled by the Participant or any group of Persons including the Participant);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) during any period of 12 months, individuals who, at the beginning of such period, constitute the Board (the "**<u>Incumbent Directors</u>**") cease for any reason to constitute at least a majority of the Board; *provided*, that any Person becoming a director subsequent to the Effective Date, whose election or nomination for election was approved by a vote of at least two-thirds of the Incumbent Directors then on the Board (either by a specific vote or by approval of the proxy statement of the Company in which such Person is named as a nominee for director, without written objection to such nomination) shall be an Incumbent Director; *provided*, *however*, that no individual initially elected or nominated as a director of the Company as a result of an actual or threatened election contest, as such terms are used in Rule 14a-12 of Regulation 14A promulgated under the Exchange Act, with respect to directors or as a result of any other actual or threatened solicitation of proxies or consents by or on behalf of any Person other than the Board shall be deemed to be an Incumbent Director;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a merger or consolidation of the Company with any other company, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than 50% of the combined voting power of the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the sale, transfer, or other disposition of all or substantially all of the assets of the Company Group (taken as a whole) to any Person that is not an Affiliate of the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) a complete liquidation or dissolution of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "**<u>Code</u>**" means the Internal Revenue Code of 1986, as amended, and any successor thereto. Reference in the Plan to any section of the Code shall be deemed to include any regulations or other interpretative guidance under such section, and any amendments or successor provisions to such section, regulations, or guidance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "**<u>Committee</u>**" means the Compensation Committee of the Board or any properly delegated subcommittee thereof or, if no such Compensation Committee or subcommittee thereof exists, the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "**<u>Common Stock</u>**" means the common stock of the Company, par value $0.001 per share (and any stock or other securities into which such Common Stock may be converted or into which it may be exchanged).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "**<u>Company</u>**" means Republic Airways Holdings Inc., a Delaware corporation, and any successor thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "**<u>Company Group</u>**" means, collectively, the Company and its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "**<u>Date of Grant</u>**" means the date on which the granting of an Award is authorized, or such later date as may be specified in such authorization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "**<u>Designated Foreign Subsidiaries</u>**" means all members of the Company Group that are organized under the laws of any jurisdiction other than the United States of America that may be designated by the Board or the Committee from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "**<u>Detrimental Activity</u>**" means any of the following: (i) unauthorized disclosure of any confidential or proprietary information of any member of the Company Group; (ii) any activity that would be grounds to terminate the Participant's employment or service with the Service Recipient for Cause; (iii) a breach by the Participant of any restrictive covenant by which such Participant is bound, including, without limitation, any covenant not to compete or not to solicit, in any agreement with any member of the Company Group; or (iv) fraud or conduct contributing to any financial restatements or irregularities, as determined by the Committee in its sole discretion.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "**<u>Disability</u>**" means, as to any Participant, unless the applicable Award Agreement states otherwise, (i) "Disability", as defined in any employment, severance or consulting agreement between the Participant and the Service Recipient in effect at the time of such Termination; or (ii) in the absence of any such employment or consulting agreement (or the absence of any definition of "Disability" contained therein), a condition entitling the Participant to receive benefits under a long-term disability plan of the Service Recipient or other member of the Company Group in which such Participant is eligible to participate, or, in the absence of such a plan, the complete and permanent inability of the Participant by reason of illness or accident to perform the duties of the position at which the Participant was employed or served when such disability commenced. Any determination of whether Disability exists in the absence of a long-term disability plan shall be made by the Company (or its designee) in its sole and absolute discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) "**<u>Effective Date</u>**" means August 25, 2020.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) "**<u>Eligible Person</u>**" means any: (i) individual employed by any member of the Company Group; *provided*, *however*, that no such employee covered by a collective bargaining agreement shall be an Eligible Person unless and to the extent that such eligibility is set forth in such collective bargaining agreement or in an agreement or instrument relating thereto; or (ii) director or officer of any member of the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) "**<u>Exchange Act</u>**" means the Securities Exchange Act of 1934, as amended, and any successor thereto. Reference in the Plan to any section of (or rule promulgated under) the Exchange Act shall be deemed to include any rules, regulations, or other interpretative guidance under such section or rule, and any amendments or successor provisions to such section, rules, regulations, or guidance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) "**<u>Exercise Price</u>**" has the meaning given to such term in Section 7(b) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "**<u>Fair Market Value</u>**" means, on a given date: (i) if the Common Stock is listed on a national securities exchange, the closing sales price of the Common Stock reported on the primary exchange on which the Common Stock is listed and traded on such date, or, if there are no such sales on that date, then on the last preceding date on which such sales were reported; (ii) if the Common Stock is not listed on any national securities exchange but is quoted in an inter-dealer quotation system on a last-sale basis, the average between the closing bid price and ask price reported on such date, or, if there is no such sale on that date, then on the last preceding date on which a sale was reported; or (iii) if the Common Stock is not listed on a national securities exchange or quoted in an inter-dealer quotation system on a last-sale basis, the amount determined by the Committee in good faith to be the fair market value of the Common Stock; *provided*, *however*, as to any Awards granted on or with a Date of Grant of the date of the pricing of the Company's initial public offering, "Fair Market Value" shall be equal to the per share price at which the Common Stock is offered to the public in connection with such initial public offering.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) "**<u>GAAP</u>**" has the meaning given to such term in Section 7(d) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) "**<u>Immediate Family Members</u>**" has the meaning given to such term in Section 13(b) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) "**<u>Incentive Stock Option</u>**" means an Option which is designated by the Committee as an incentive stock option as described in Section 422 of the Code and otherwise meets the requirements set forth in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) "**<u>Indemnifiable Person</u>**" has the meaning given to such term in Section 4(e) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) "**<u>Non-Employee Director</u>**" means a member of the Board who is not an employee of any member of the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) "**<u>Nonqualified Stock Option</u>**" means an Option which is not designated by the Committee as an Incentive Stock Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) "**<u>Option</u>**" means an Award granted under Section 7 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) "**<u>Option Period</u>**" has the meaning given to such term in Section 7(c) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) "**<u>Other Cash-Based Award</u>**" means an Award that is granted under Section 10 of the Plan that is denominated and/or payable in cash.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) "**<u>Other Equity-Based Award</u>**" means an Award that is not an Option, Stock Appreciation Right, Restricted Stock, or Restricted Stock Unit that is granted under Section 10 of the Plan and is (i) payable by delivery of Common Stock and/or (ii) measured by reference to the value of Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) "**<u>Participant</u>**" means an Eligible Person who has been selected by the Committee to participate in the Plan and to receive an Award pursuant to the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) "**<u>Performance Conditions</u>**" means specific levels of performance established by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "**<u>Permitted Transferee</u>**" has the meaning given to such term in Section 13(b) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) "**<u>Person</u>**" means any individual, entity, or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk) "**<u>Plan</u>**" means this Republic Airways Holdings Inc. 2020 Omnibus Incentive Plan, as it may be amended and/or restated from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll) "**<u>Qualifying Director</u>**" means a Person who is, with respect to actions intended to obtain an exemption from Section 16(b) of the Exchange Act pursuant to Rule 16b-3 under the Exchange Act, a "non-employee director" within the meaning of Rule 16b-3 under the Exchange Act.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm) "**<u>Restricted Period</u>**" means the period of time determined by the Committee during which an Award is subject to restrictions, including vesting conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn) "**<u>Restricted Stock</u>**" means Common Stock, subject to certain specified restrictions (which may include, without limitation, a requirement that the Participant remain continuously employed or provide continuous services for a specified period of time), granted under Section 9 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(oo) "**<u>Restricted Stock Unit</u>**" means an unfunded and unsecured promise to deliver shares of Common Stock, cash, other securities, or other property, subject to certain restrictions (which may include, without limitation, a requirement that the Participant remain continuously employed or provide continuous services for a specified period of time), granted under Section 9 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(pp) "**<u>SAR Period</u>**" has the meaning given to such term in Section 8(c) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(qq) "**<u>Securities Act</u>**" means the Securities Act of 1933, as amended, and any successor thereto. Reference in the Plan to any section of (or rule promulgated under) the Securities Act shall be deemed to include any rules, regulations, or other interpretative guidance under such section or rule, and any amendments or successor provisions to such section, rules, regulations, or guidance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(rr) "**<u>Service Recipient</u>**" means, with respect to a Participant holding a given Award, the member of the Company Group by which the original recipient of such Award is, or following a Termination was most recently, principally employed or to which such original recipient provides, or following a Termination was most recently providing, services, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ss) "**<u>Stock Appreciation Right</u>**" or "**<u>SAR</u>**" means an Award granted under Section 8 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(tt) "**<u>Strike Price</u>**" has the meaning given to such term in Section 8(b) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(uu) "**<u>Subsidiary</u>**" means, with respect to any specified Person:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any corporation, association, or other business entity of which more than 50% of the total voting power of shares of such entity's voting securities (without regard to the occurrence of any contingency and after giving effect to any voting agreement or stockholders' agreement that effectively transfers voting power) is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person (or a combination thereof); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any partnership (or any comparable foreign entity) (A) the sole general partner (or functional equivalent thereof) or the managing general partner of which is such Person or Subsidiary of such Person or (B) the only general partners (or functional equivalents thereof) of which are that Person or one or more Subsidiaries of that Person (or any combination thereof).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vv) "**<u>Substitute Awards</u>**" has the meaning given to such term in Section 5(f) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ww) "**<u>Termination</u>**" means the termination of a Participant's employment or service, as applicable, with the Service Recipient for any reason (including death or Disability).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xx) "**<u>Treasury Warrant Shares</u>**" means the number of shares of Common Stock issuable upon exercise of the warrants issued to the U.S. Department of the Treasury in connection with loans granted to the Company or its subsidiaries pursuant to the Coronavirus Aid, Relief, and Economic Security Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. Effective Date; Duration**. The Plan shall be effective as of the Effective Date. The expiration date of the Plan, on and after which date no Awards may be granted hereunder, shall be the tenth anniversary of the Effective Date; *provided*, *however*, that such expiration shall not affect Awards then outstanding, and the terms and conditions of the Plan shall continue to apply to such Awards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. Administration**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>General</u>. The Committee shall administer the Plan. To the extent required to comply with the provisions of Rule 16b-3 promulgated under the Exchange Act (if the Board is not acting as the Committee under the Plan), it is intended that each member of the Committee shall, at the time such member takes any action with respect to an Award under the Plan that is intended to qualify for the exemptions provided by Rule 16b-3 promulgated under the Exchange Act, be a Qualifying Director. However, the fact that a Committee member shall fail to qualify as a Qualifying Director shall not invalidate any Award granted by the Committee that is otherwise validly granted under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Committee Authority</u>. Subject to the provisions of the Plan and applicable law, the Committee shall have the sole and plenary authority, in addition to other express powers and authorizations conferred on the Committee by the Plan, to: (i) designate Participants; (ii) determine the type or types of Awards to be granted to a Participant; (iii) determine the number of shares of Common Stock or amount of cash to be covered by, or with respect to which payments, rights, or other matters are to be calculated in connection with, Awards; (iv) determine the terms and conditions of any Award; (v) determine whether, to what extent, and under what circumstances Awards may be settled in, or exercised for, cash, shares of Common Stock, other securities, other Awards, or other property, or canceled, forfeited, or suspended and the method or methods by which Awards may be settled, exercised, canceled, forfeited, or suspended; (vi) determine whether, to what extent, and under what circumstances the delivery of cash, shares of Common Stock, other securities, other Awards, or other property and other amounts payable with respect to an Award shall be deferred either automatically or at the election of the Participant or of the Committee; (vii) interpret, administer, reconcile any inconsistency in, correct any defect in, and/or supply any omission in the Plan and any instrument or agreement relating to, or Award granted under, the Plan; (viii) establish, amend, suspend, or waive any rules and regulations and appoint such agents as the Committee shall deem appropriate for the proper administration of the Plan; and (ix) make any other determination and take any other action that the Committee deems necessary or desirable for the administration of the Plan.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Delegation</u>. Except to the extent prohibited by applicable law or the applicable rules and regulations of any securities exchange or inter-dealer quotation system on which the securities of the Company are listed or traded, the Committee may allocate all or any portion of its responsibilities and powers to any one or more of its members and may delegate all or any part of its responsibilities and powers to any Person or Persons selected by it. Any such allocation or delegation may be revoked by the Committee at any time. Without limiting the generality of the foregoing, the Committee may delegate to one or more officers of any member of the Company Group the authority to act on behalf of the Committee with respect to any matter, right, obligation, or election which is the responsibility of, or which is allocated to, the Committee herein, and which may be so delegated as a matter of law, except for grants of Awards to Non-Employee Directors and any Person that is subject to Section 16 of the Exchange Act. Notwithstanding the foregoing in this Section 4(c), it is intended that any action under the Plan intended to qualify for an exemption provided by Rule 16b-3 promulgated under the Exchange Act related to Persons who are subject to Section 16 of the Exchange Act will be taken only by the Board or by a committee or subcommittee of two or more Qualifying Directors. However, the fact that any member of such committee or subcommittee shall fail to qualify as a Qualifying Director shall not invalidate any action that is otherwise valid under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Finality of Decisions</u>. Unless otherwise expressly provided in the Plan, all designations, determinations, interpretations, and other decisions under or with respect to the Plan, any Award or any Award Agreement shall be within the sole discretion of the Committee, may be made at any time, and shall be final, conclusive, and binding upon all Persons, including, without limitation, any member of the Company Group, any Participant, any holder or beneficiary of any Award, and any stockholder of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Indemnification</u>. No member of the Board, the Committee, or any employee or agent of any member of the Company Group (each such Person, an "**<u>Indemnifiable Person</u>**") shall be liable for any action taken or omitted to be taken or any determination made with respect to the Plan or any Award hereunder (unless constituting fraud or a willful criminal act or omission). Each Indemnifiable Person shall be indemnified and held harmless by the Company against and from any loss, cost, liability, or expense (including attorneys' fees) that may be imposed upon or incurred by such Indemnifiable Person in connection with or resulting from any action, suit, or proceeding to which such Indemnifiable Person may be a party or in which such Indemnifiable Person may be involved by reason of any action taken or omitted to be taken or determination made with respect to the Plan or any Award hereunder and against and from any and all amounts paid by such Indemnifiable Person with the Company's approval, in settlement thereof, or paid by such Indemnifiable Person in satisfaction of any judgment in any such action, suit, or proceeding against such Indemnifiable Person, and the Company shall advance to such Indemnifiable Person any such expenses promptly upon written request (which request shall include an undertaking by the Indemnifiable Person to repay the amount of such advance if it shall ultimately be determined, as provided below, that the Indemnifiable Person is not entitled to be indemnified); *provided*, that the Company shall have the right, at its own expense, to assume and defend any such action, suit, or proceeding and once the Company gives notice of its intent

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to assume the defense, the Company shall have sole control over such defense with counsel of the Company's choice. The foregoing right of indemnification shall not be available to an Indemnifiable Person to the extent that a final judgment or other final adjudication (in either case not subject to further appeal) binding upon such Indemnifiable Person determines that the acts, omissions, or determinations of such Indemnifiable Person giving rise to the indemnification claim resulted from such Indemnifiable Person's fraud or willful criminal act or omission or that such right of indemnification by a member of the Company Group is otherwise prohibited by law or by the organizational documents of such member of the Company Group. The foregoing right of indemnification shall not be exclusive of or otherwise supersede any other rights of indemnification to which such Indemnifiable Persons may be entitled under the organizational documents of any member of the Company Group, as a matter of law, under an individual indemnification agreement or contract, or otherwise, or any other power that the Company may have to indemnify such Indemnifiable Persons or hold such Indemnifiable Persons harmless.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Board Authority</u>. Notwithstanding anything to the contrary contained in the Plan, the Board may, in its sole discretion, at any time and from time to time, grant Awards and administer the Plan with respect to such Awards. Any such actions by the Board shall be subject to the applicable rules of the securities exchange or inter-dealer quotation system on which the Common Stock is listed or quoted. In any such case, the Board shall have all the authority granted to the Committee under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5. Grant of Awards; Shares Subject to the Plan; Limitations.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Grants</u>. The Committee may, from time to time, grant Awards to one or more Eligible Persons. All Awards granted under the Plan shall vest and become exercisable in such manner and on such date or dates or upon such event or events as determined by the Committee, including, without limitation, attainment of Performance Conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Share Reserve and Limits</u>. Awards granted under the Plan shall be subject to the following limitations: (i) subject to Section 11 of the Plan, no more than a number of shares of Common Stock equal to the excess, if any, of (x) 100,000 minus (y) the number of Treasury Warrant Shares (the "**<u>Absolute Share Limit</u>**") shall be available for Awards under the Plan; (ii) subject to Section 11 of the Plan, no more than the number of shares of Common Stock equal to the Absolute Share Limit may be issued in the aggregate pursuant to the exercise of Incentive Stock Options granted under the Plan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Awards to Non-Employee Directors</u>. During a single fiscal year, no Non-Employee Director may be granted a number of shares of Common Stock subject to Awards, taken together with any cash fees paid to such Non-Employee Director during such fiscal year, in excess of (i) for the lead director or non-executive chairman, a total value of $400,000 and (ii) for other Non-Employee Directors, a total value of $300,000 (calculating the value of any such Awards based on the grant date fair value of such Awards for financial reporting purposes); *provided*, that these limits shall not prevent the Committee from granting Awards in excess of such limitations in the event that a Non-Employee Director's obligations exceed such Non-Employee Director's regular and customary commitments or calendar of service or are otherwise out of the ordinary course.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Share Counting</u>. Other than with respect to Substitute Awards, to the extent that an Award expires or is canceled, forfeited, terminated, or otherwise is settled without issuance to the Participant of the full number of shares of Common Stock to which the Award related, the unissued shares of Common Stock will again be available for grant under the Plan; *provided*, *however*, that if any consideration is paid in connection with such cancellation, forfeiture, termination or settlement, such Awards shall not again become available for issuance hereunder. Shares of Common Stock withheld in payment of the Exercise Price and shares equal to the number of shares surrendered in payment of any Exercise Price shall be deemed to constitute shares not issued to the Participant and shall be deemed to again be available for Awards under the Plan; *provided*, *however*, that such shares shall not become available for issuance hereunder if either: (i) the applicable shares are withheld or surrendered following the termination of the Plan; or (ii) at the time the applicable shares are withheld or surrendered, it would constitute a material revision of the Plan subject to stockholder approval under any then-applicable rules of the national securities exchange on which the Common Stock is listed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Source of Shares</u>. Shares of Common Stock issued by the Company in settlement of Awards may be authorized and unissued shares, shares of Common Stock held in the treasury of the Company, shares of Common Stock purchased on the open market or by private purchase, or a combination of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Substitute Awards</u>. Awards may, in the sole discretion of the Committee, be granted under the Plan in assumption of, or in substitution for, outstanding Awards previously granted by an entity directly or indirectly acquired by the Company or with which the Company combines ("**<u>Substitute Awards</u>**"). Substitute Awards shall not be counted against the Absolute Share Limit; *provided*, that Substitute Awards issued in connection with the assumption of, or in substitution for, outstanding Options intended to qualify as "incentive stock options" within the meaning of Section 422 of the Code shall be counted against the aggregate number of shares of Common Stock available for Awards of Incentive Stock Options under the Plan. Subject to applicable stock exchange requirements, available shares of Common Stock under a stockholder-approved plan of an entity directly or indirectly acquired by the Company or with which the Company combines (as appropriately adjusted to reflect the acquisition or combination transaction) may be used for Awards under the Plan and shall not reduce the number of shares of Common Stock available for issuance under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6. Eligibility**. Participation in the Plan shall be limited to Eligible Persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7. Options**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>General</u>. Each Option granted under the Plan shall be evidenced by an Award Agreement, which agreement need not be the same for each Participant. Each Option so granted shall be subject to the conditions set forth in this Section 7, and to such other conditions not inconsistent with the Plan as may be reflected in the applicable Award Agreement. All Options granted under the Plan shall be Nonqualified Stock Options unless the applicable Award Agreement expressly states that the Option is intended to be an Incentive Stock Option. Incentive Stock Options shall be granted only to Eligible Persons who are employees of a member of the Company Group, and no Incentive Stock Option shall be granted to any Eligible Person who is ineligible to receive an Incentive Stock Option under the Code. No Option shall be treated as an

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Incentive Stock Option unless the Plan has been approved by the stockholders of the Company in a manner intended to comply with the stockholder approval requirements of Section 422(b)(1) of the Code; *provided*, that any Option intended to be an Incentive Stock Option shall not fail to be effective solely on account of a failure to obtain such approval, but rather such Option shall be treated as a Nonqualified Stock Option unless and until such approval is obtained. In the case of an Incentive Stock Option, the terms and conditions of such grant shall be subject to, and comply with, such rules as may be prescribed by Section 422 of the Code. If for any reason an Option intended to be an Incentive Stock Option (or any portion thereof) shall not qualify as an Incentive Stock Option, then, to the extent of such nonqualification, such Option or portion thereof shall be regarded as a Nonqualified Stock Option appropriately granted under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Exercise Price</u>. Except as otherwise provided by the Committee in the case of Substitute Awards, the exercise price ("**<u>Exercise Price</u>**") per share of Common Stock for each Option shall not be less than 100% of the Fair Market Value of such share (determined as of the Date of Grant); *provided*, *however*, that in the case of an Incentive Stock Option granted to an employee who, at the time of the grant of such Option, owns stock representing more than 10% of the voting power of all classes of stock of any member of the Company Group, the Exercise Price per share shall be no less than 110% of the Fair Market Value per share on the Date of Grant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Vesting and Expiration; Termination</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Options shall vest and become exercisable in such manner and on such date or dates or upon such event or events as determined by the Committee including, without limitation, those set forth in Section 5(a) of the Plan; *provided*, *however*, that notwithstanding any such vesting dates or events, the Committee may in its sole discretion accelerate the vesting of any Options. Options shall expire at 11:59 pm upon a date determined by the Committee, not to exceed ten years from the Date of Grant (the "**<u>Option Period</u>**"); *provided*, that if the Option Period (other than in the case of an Incentive Stock Option) would expire at a time when trading in the shares of Common Stock is prohibited by the Company's insider trading policy (or Company-imposed "blackout period"), then the Option Period shall be automatically extended until the 30<sup>th</sup> day following the expiration of such prohibition. If the Option Period would expire on a non-trading day, the Option Period shall automatically be extended to the next trading day. Notwithstanding the foregoing, in no event shall the Option Period exceed five years from the Date of Grant in the case of an Incentive Stock Option granted to a Participant who on the Date of Grant owns stock representing more than 10% of the voting power of all classes of stock of any member of the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Unless otherwise provided by the Committee, whether in an Award Agreement or otherwise, in the event of: (A) a Participant's Termination by the Service Recipient for Cause, all outstanding Options granted to such Participant shall immediately terminate and expire; (B) a Participant's Termination due to death or Disability, each outstanding unvested Option granted to such Participant shall immediately terminate and expire, and each outstanding vested Option shall remain exercisable for one year thereafter (but in no event beyond the expiration of the Option Period); and (C) a Participant's Termination for any other reason, each outstanding unvested Option granted to such Participant shall immediately terminate and expire, and each outstanding vested Option shall remain exercisable for 90 days thereafter (but in no event beyond the expiration of the Option Period).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Method of Exercise and Form of Payment</u>. No shares of Common Stock shall be issued pursuant to any exercise of an Option until payment in full of the Exercise Price therefor is received by the Company and the Participant has paid to the Company an amount equal to any Federal, state, local, and non-U.S. income, employment, and any other applicable taxes required to be withheld. Options which have become exercisable may be exercised by delivery of written or electronic notice of exercise to the Company (or telephonic instructions to the extent provided by the Committee) in accordance with the terms of the Option accompanied by payment of the Exercise Price. The Exercise Price shall be payable: (i) in cash, check, cash equivalent, and/or shares of Common Stock valued at the Fair Market Value at the time the Option is exercised (including, pursuant to procedures approved by the Committee, by means of attestation of ownership of a sufficient number of shares of Common Stock in lieu of actual issuance of such shares to the Company); *provided*, that such shares of Common Stock are not subject to any pledge or other security interest and have been held by the Participant for at least six months (or such other period as established from time to time by the Committee in order to avoid adverse accounting treatment applying generally accepted accounting principles ("**<u>GAAP</u>**")); or (ii) by such other method as the Committee may permit in its sole discretion, including, without limitation (A) in other property having a fair market value on the date of exercise equal to the Exercise Price; (B) if there is a public market for the shares of Common Stock at such time, by means of a broker-assisted "cashless exercise" pursuant to which the Company is delivered (including telephonically to the extent permitted by the Committee) a copy of irrevocable instructions to a stockbroker to sell a portion of the shares of Common Stock otherwise issuable upon the exercise of the Option and to deliver promptly to the Company an amount equal to the Exercise Price; or (C) a "net exercise" procedure effected by withholding the minimum number of shares of Common Stock otherwise issuable in respect of an Option that is needed to pay the Exercise Price. Any fractional shares of Common Stock shall be settled in cash.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Notification upon Disqualifying Disposition of an Incentive Stock Option</u>. Each Participant awarded an Incentive Stock Option under the Plan shall notify the Company in writing immediately after the date the Participant makes a disqualifying disposition of any share of Common Stock acquired pursuant to the exercise of such Incentive Stock Option. A disqualifying disposition is any disposition (including, without limitation, any sale) of such share of Common Stock before the later of (i) the date that is two years after the Date of Grant of the Incentive Stock Option, or (ii) the date that is one year after the date of exercise of the Incentive Stock Option. The Company may, if determined by the Committee and in accordance with procedures established by the Committee, retain possession, as agent for the applicable Participant, of any share of Common Stock acquired pursuant to the exercise of an Incentive Stock Option until the end of the period described in the preceding sentence, subject to complying with any instructions from such Participant as to the sale of such share of Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Compliance With Laws, etc</u>. Notwithstanding the foregoing, in no event shall a Participant be permitted to exercise an Option in a manner which the Committee determines would violate the Sarbanes-Oxley Act of 2002, as it may be amended from time to time, or any other applicable law or the applicable rules and regulations of the Securities and Exchange Commission or the applicable rules and regulations of any securities exchange or inter-dealer quotation system on which the securities of the Company are listed or traded.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8. Stock Appreciation Rights.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>General</u>. Each SAR granted under the Plan shall be evidenced by an Award Agreement. Each SAR so granted shall be subject to the conditions set forth in this Section 8, and to such other conditions not inconsistent with the Plan as may be reflected in the applicable Award Agreement. Any Option granted under the Plan may include tandem SARs. The Committee also may award SARs to Eligible Persons independent of any Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Strike Price</u>. Except as otherwise provided by the Committee in the case of Substitute Awards, the strike price ("**<u>Strike Price</u>**") per share of Common Stock for each SAR shall not be less than 100% of the Fair Market Value of such share (determined as of the Date of Grant). Notwithstanding the foregoing, a SAR granted in tandem with (or in substitution for) an Option previously granted shall have a Strike Price equal to the Exercise Price of the corresponding Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Vesting and Expiration; Termination</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) A SAR granted in connection with an Option shall become exercisable and shall expire according to the same vesting schedule and expiration provisions as the corresponding Option. A SAR granted independent of an Option shall vest and become exercisable in such manner and on such date or dates or upon such event or events as determined by the Committee including, without limitation, those set forth in Section 5(a) of the Plan; *provided*, *however*, that notwithstanding any such vesting dates or events, the Committee may, in its sole discretion, accelerate the vesting of any SAR. SARs shall expire upon a date determined by the Committee, not to exceed ten years from the Date of Grant (the "**<u>SAR Period</u>**"); *provided*, that if the SAR Period would expire at a time when trading in the shares of Common Stock is prohibited by the Company's insider trading policy (or Company-imposed "blackout period"), then the SAR Period shall be automatically extended until the 30<sup>th</sup> day following the expiration of such prohibition. If the SAR Period would expire on a non-trading day, the SAR Period shall automatically be extended to the next trading day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Unless otherwise provided by the Committee, whether in an Award Agreement or otherwise, in the event of: (A) a Participant's Termination by the Service Recipient for Cause, all outstanding SARs granted to such Participant shall immediately terminate and expire; (B) a Participant's Termination due to death or Disability, each outstanding unvested SAR granted to such Participant shall immediately terminate and expire, and each outstanding vested SAR shall remain exercisable for one year thereafter (but in no event beyond the expiration of the SAR Period); and (C) a Participant's Termination for any other reason, each outstanding unvested SAR granted to such Participant shall immediately terminate and expire, and each outstanding vested SAR shall remain exercisable for 90 days thereafter (but in no event beyond the expiration of the SAR Period).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Method of Exercise</u>. SARs which have become exercisable may be exercised by delivery of written or electronic notice of exercise to the Company in accordance with the terms of the Award, specifying the number of SARs to be exercised and the date on which such SARs were awarded. An Option shall be cancelled at the same time and to the same extent that a related tandem SAR is exercised. A tandem SAR shall be cancelled at the same time and to the same extent that a related Option is exercised.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Payment</u>. Upon the exercise of a SAR, the Company shall pay to the Participant an amount equal to the number of shares subject to the SAR that is being exercised multiplied by the excess of the Fair Market Value of one share of Common Stock on the exercise date over the Strike Price, less an amount equal to any Federal, state, local, and non-U.S. income, employment, and any other applicable taxes required to be withheld. The Company shall pay such amount in cash, in shares of Common Stock valued at Fair Market Value, or any combination thereof, as determined by the Committee. Any fractional shares of Common Stock shall be settled in cash.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9. Restricted Stock and Restricted Stock Units.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>General</u>. Each grant of Restricted Stock and Restricted Stock Units shall be evidenced by an Award Agreement. Each Restricted Stock and Restricted Stock Unit so granted shall be subject to the conditions set forth in this Section 9, and to such other conditions not inconsistent with the Plan as may be reflected in the applicable Award Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Stock Certificates and Book-Entry Notation; Escrow or Similar Arrangement</u>.<u> </u>Upon the grant of Restricted Stock, the Committee shall cause a stock certificate registered in the name of the Participant to be issued or shall cause share(s) of Common Stock to be registered in the name of the Participant and held in book-entry form subject to the Company's directions and, if the Committee determines that the Restricted Stock shall be held by the Company or in escrow rather than issued to the Participant pending the release of the applicable restrictions, the Committee may require the Participant to additionally execute and deliver to the Company (i) an escrow agreement satisfactory to the Committee, if applicable, and (ii) the appropriate stock power (endorsed in blank) with respect to the Restricted Stock covered by such agreement. If a Participant shall fail to execute and deliver (in a manner permitted under Section 13(a) of the Plan or as otherwise determined by the Committee) an agreement evidencing an Award of Restricted Stock and, if applicable, an escrow agreement and blank stock power within the amount of time specified by the Committee, the Award shall be null and void. Subject to the restrictions set forth in this Section 9 and the applicable Award Agreement, a Participant generally shall have the rights and privileges of a stockholder as to shares of Restricted Stock, including, without limitation, the right to vote such Restricted Stock. To the extent shares of Restricted Stock are forfeited, any stock certificates issued to the Participant evidencing such shares shall be returned to the Company, and all rights of the Participant to such shares and as a stockholder with respect thereto shall terminate without further obligation on the part of the Company. A Participant shall have no rights or privileges as a stockholder as to Restricted Stock Units.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Vesting; Termination</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Restricted Stock and Restricted Stock Units shall vest, and any applicable Restricted Period shall lapse, in such manner and on such date or dates or upon such event or events as determined by the Committee including, without limitation, those set forth in Section 5(a) of the Plan; *provided*, *however*, that notwithstanding any such dates or events, the Committee may, in its sole discretion, accelerate the vesting of any Restricted Stock or Restricted Stock Unit or the lapsing of any applicable Restricted Period (i) upon a Participant's death, Disability, retirement, any other specified Termination or the consummation of a Change in Control; or (ii) such other circumstances as determined in good faith by the Committee with respect to Awards equal to an aggregate of up to ten percent (10%) of the Absolute Share Limit (subject to Section 11 of the Plan).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Unless otherwise provided by the Committee, whether in an Award Agreement or otherwise, in the event of a Participant's Termination for any reason prior to the time that such Participant's Restricted Stock or Restricted Stock Units, as applicable, have vested, (A) all vesting with respect to such Participant's Restricted Stock or Restricted Stock Units, as applicable, shall cease and (B) unvested shares of Restricted Stock and unvested Restricted Stock Units, as applicable, shall be forfeited to the Company by the Participant for no consideration as of the date of such Termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Issuance of Restricted Stock and Settlement of Restricted Stock Units</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Upon the expiration of the Restricted Period with respect to any shares of Restricted Stock, the restrictions set forth in the applicable Award Agreement shall be of no further force or effect with respect to such shares, except as set forth in the applicable Award Agreement. If an escrow arrangement is used, upon such expiration the Company shall issue to the Participant or the Participant's beneficiary, without charge, the stock certificate (or, if applicable, a notice evidencing a book-entry notation) evidencing the shares of Restricted Stock which have not then been forfeited and with respect to which the Restricted Period has expired (rounded down to the nearest full share).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Unless otherwise provided by the Committee in an Award Agreement or otherwise, upon the expiration of the Restricted Period with respect to any outstanding Restricted Stock Units, the Company shall issue to the Participant or the Participant's beneficiary, without charge, one share of Common Stock (or other securities or other property, as applicable) for each such outstanding Restricted Stock Unit; *provided*, *however*, that the Committee may, in its sole discretion, elect to pay cash or part cash and part shares of Common Stock in lieu of issuing only shares of Common Stock in respect of such Restricted Stock Units. If a cash payment is made in lieu of issuing shares of Common Stock in respect of such Restricted Stock Units, the amount of such payment shall be equal to the Fair Market Value per share of the Common Stock as of the date on which the Restricted Period lapsed with respect to such Restricted Stock Units.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Legends on Restricted Stock</u>. Each certificate, if any, or book entry representing Restricted Stock awarded under the Plan, if any, shall bear a legend or book entry notation substantially in the form of the following, in addition to any other information the Company deems appropriate, until the lapse of all restrictions with respect to such shares of Common Stock:

TRANSFER OF THIS CERTIFICATE AND THE SHARES REPRESENTED HEREBY IS RESTRICTED PURSUANT TO THE TERMS OF THE REPUBLIC AIRWAYS HOLDINGS INC. 2020 OMNIBUS INCENTIVE PLAN AND A RESTRICTED STOCK AWARD AGREEMENT BETWEEN REPUBLIC AIRWAYS HOLDINGS INC. AND THE PARTICIPANT. A COPY OF SUCH PLAN AND AWARD AGREEMENT IS ON FILE AT THE PRINCIPAL EXECUTIVE OFFICES OF REPUBLIC AIRWAYS HOLDINGS INC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10. Other Equity-Based Awards and Other Cash-Based Awards**. The Committee may grant Other Equity-Based Awards and Other Cash-Based Awards under the Plan to Eligible Persons, alone or in tandem with other Awards, in such amounts and dependent on such conditions as the Committee shall from time to time in its sole discretion determine including, without limitation, those set forth in Section 5(a) of the Plan. Each Other Equity-Based Award granted under the Plan shall be evidenced by an Award Agreement and each Other Cash-Based Award granted under the Plan shall be evidenced in such form as the Committee may determine from time to time. Each Other Equity-Based Award or Other Cash-Based Award, as applicable, so granted shall be subject to such conditions not inconsistent with the Plan as may be reflected in the applicable Award Agreement or other form evidencing such Award, including, without limitation, those set forth in Section 13(c) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11. Changes in Capital Structure and Similar Events**. Notwithstanding any other provision in this Plan to the contrary, the following provisions shall apply to all Awards granted hereunder (other than Other Cash-Based Awards):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>General</u>. In the event of (i) any dividend (other than regular cash dividends) or other distribution (whether in the form of cash, shares of Common Stock, other securities, or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, split-off, spin-off, combination, repurchase, or exchange of shares of Common Stock or other securities of the Company, issuance of warrants or other rights to acquire shares of Common Stock or other securities of the Company, or other similar corporate transaction or event that affects the shares of Common Stock (including a Change in Control), or (ii) unusual or nonrecurring events affecting the Company, including changes in applicable rules, rulings, regulations, or other requirements, that the Committee determines, in its sole discretion, could result in substantial dilution or enlargement of the rights intended to be granted to, or available for, Participants (any event in (i) or (ii), an "**<u>Adjustment Event</u>**"), the Committee shall, in respect of any such Adjustment Event, make such proportionate substitution or adjustment, if any, as it deems equitable, to any or all of: (A) the Absolute Share Limit, or any other limit applicable under the Plan with respect to the number of Awards which may be granted hereunder; (B) the number of shares of Common Stock or other securities of the Company (or number and kind of other securities or other property) which may be issued in respect of Awards or with respect to which Awards may be granted under the Plan; and (C) the terms of any outstanding Award, including, without limitation, (I) the number of shares of Common Stock or other securities of the Company (or number and kind of other securities or other property)

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subject to outstanding Awards or to which outstanding Awards relate; (II) the Exercise Price or Strike Price with respect to any Award; or (III) any applicable Performance Conditions; *provided*, that in the case of any "equity restructuring" (within the meaning of the Financial Accounting Standards Board Accounting Standards Codification Topic 718 (or any successor pronouncement thereto)), the Committee shall make an equitable or proportionate adjustment to outstanding Awards to reflect such equity restructuring. Any adjustment under this Section 11 shall be conclusive and binding for all purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Adjustment Events</u>. Without limiting the foregoing, except as may otherwise be provided in an Award Agreement, in connection with any Adjustment Event, the Committee may, in its sole discretion, provide for any one or more of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) substitution or assumption of Awards (or awards of an acquiring company), acceleration of the exercisability of, lapse of restrictions on, or termination of Awards, or a period of time (which shall not be required to be more than ten days) for Participants to exercise outstanding Awards prior to the occurrence of such event (and any such Award not so exercised shall terminate upon the occurrence of such event); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) subject to any limitations or reductions as may be necessary to comply with Section 409A of the Code, cancellation of any one or more outstanding Awards and payment to the holders of such Awards that are vested as of such cancellation (including, without limitation, any Awards that would vest as a result of the occurrence of such event but for such cancellation or for which vesting is accelerated by the Committee in connection with such event) the value of such Awards, if any, as determined by the Committee (which value, if applicable, may be based upon the price per share of Common Stock received or to be received by other stockholders of the Company in such event), including, without limitation, in the case of an outstanding Option or SAR, a cash payment in an amount equal to the excess, if any, of the Fair Market Value (as of a date specified by the Committee) of the shares of Common Stock subject to such Option or SAR over the aggregate Exercise Price or Strike Price of such Option or SAR (it being understood that, in such event, any Option or SAR having a per share Exercise Price or Strike Price equal to, or in excess of, the Fair Market Value of a share of Common Stock subject thereto may be canceled and terminated without any payment or consideration therefor), or, in the case of Restricted Stock, Restricted Stock Units, or Other Equity-Based Awards that are not vested as of such cancellation, a cash payment or equity subject to deferred vesting and delivery consistent with the vesting restrictions applicable to such Restricted Stock, Restricted Stock Units, or Other Equity-Based Awards prior to cancellation, or the underlying shares in respect thereof.

Payments to holders pursuant to clause (ii) above shall be made in cash or, in the sole discretion of the Committee, in the form of such other consideration necessary for a Participant to receive property, cash, or securities (or combination thereof) as such Participant would have been entitled to receive upon the occurrence of the transaction if the Participant had been, immediately prior to such transaction, the holder of the number of shares of Common Stock covered by the Award at such time (less any applicable Exercise Price or Strike Price).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Other Requirements</u>. Prior to any payment or adjustment contemplated under this Section 11, the Committee may require a Participant to (i) represent and warrant as to the unencumbered title to the Participant's Awards; (ii) bear such Participant's pro rata share of any post-closing indemnity obligations, and be subject to the same post-closing purchase price adjustments, escrow terms, offset rights, holdback terms, and similar conditions as the other holders of Common Stock, subject to any limitations or reductions as may be necessary to comply with Section 409A of the Code; and (iii) deliver customary transfer documentation as reasonably determined by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Fractional Shares</u>. Any adjustment provided under this Section 11 may provide for the elimination of any fractional share that might otherwise become subject to an Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Binding Effect</u>. Any adjustment, substitution, determination of value or other action taken by the Committee under this Section 11 shall be conclusive and binding for all purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12. Amendments and Termination.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Amendment and Termination of the Plan</u>. The Board may amend, alter, suspend, discontinue, or terminate the Plan or any portion thereof at any time; *provided*, that no such amendment, alteration, suspension, discontinuance, or termination shall be made without stockholder approval if: (i) such approval is necessary to comply with any regulatory requirement applicable to the Plan (including, without limitation, as necessary to comply with any rules or regulations of any securities exchange or inter-dealer quotation system on which the securities of the Company may be listed or quoted) or for changes in GAAP to new accounting standards; (ii) it would materially increase the number of securities which may be issued under the Plan (except for increases pursuant to Section 5 or 11 of the Plan); or (iii) it would materially modify the requirements for participation in the Plan; *provided*, *further*, that any such amendment, alteration, suspension, discontinuance, or termination that would materially and adversely affect the rights of any Participant or any holder or beneficiary of any Award theretofore granted shall not to that extent be effective without the consent of the affected Participant, holder, or beneficiary. Notwithstanding the foregoing, no amendment shall be made to the last proviso of Section 12(b) of the Plan without stockholder approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Amendment of Award Agreements</u>. The Committee may, to the extent consistent with the terms of the Plan and any applicable Award Agreement, waive any conditions or rights under, amend any terms of, or alter, suspend, discontinue, cancel, or terminate, any Award theretofore granted or the associated Award Agreement, prospectively or retroactively (including after a Participant's Termination); *provided*, that, other than pursuant to Section 11, any such waiver, amendment, alteration, suspension, discontinuance, cancellation, or termination that would materially and adversely affect the rights of any Participant with respect to any Award theretofore granted shall not to that extent be effective without the consent of the affected Participant; *provided*, *further*, that without stockholder approval, except as otherwise permitted under Section 11 of the Plan, (i) no amendment or modification may reduce the Exercise Price of any Option or the Strike Price of any SAR; (ii) the Committee may not cancel any outstanding Option or SAR and replace it with a new Option or SAR (with a lower Exercise Price or Strike Price, as the case may be) or other Award or cash payment that is greater than the intrinsic value (if any) of the canceled Option or SAR; and (iii) the Committee may not take any other action which is considered a "repricing" for purposes of the stockholder approval rules of any securities exchange or inter-dealer quotation system on which the securities of the Company are listed or quoted.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13. General.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Award Agreements</u>. Each Award (other than an Other Cash-Based Award) under the Plan shall be evidenced by an Award Agreement, which shall be delivered to the Participant to whom such Award was granted and shall specify the terms and conditions of the Award and any rules applicable thereto, including, without limitation, the effect on such Award of the death, Disability, or Termination of a Participant, or of such other events as may be determined by the Committee. For purposes of the Plan, an Award Agreement may be in any such form (written or electronic) as determined by the Committee (including, without limitation, a Board or Committee resolution, an employment agreement, a notice, a certificate, or a letter) evidencing the Award. The Committee need not but may require an Award Agreement to be signed by the Participant and/or a duly authorized representative of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Nontransferability</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Each Award shall be exercisable only by such Participant to whom such Award was granted during the Participant's lifetime, or, if permissible under applicable law, by the Participant's legal guardian or representative. No Award may be assigned, alienated, pledged, attached, sold, or otherwise transferred or encumbered by a Participant (unless such transfer is specifically required pursuant to a domestic relations order or by applicable law) other than by will or by the laws of descent and distribution and any such purported assignment, alienation, pledge, attachment, sale, transfer, or encumbrance shall be void and unenforceable against any member of the Company Group; *provided*, that the designation of a beneficiary shall not constitute an assignment, alienation, pledge, attachment, sale, transfer, or encumbrance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Notwithstanding the foregoing, the Committee may, in its sole discretion, permit Awards (other than Incentive Stock Options) to be transferred by a Participant, without consideration, subject to such rules as the Committee may adopt consistent with any applicable Award Agreement to preserve the purposes of the Plan, to: (A) any Person who is a "family member" of the Participant, as such term is used in the instructions to Form S-8 under the Securities Act or any successor form of registration statement promulgated by the Securities and Exchange Commission (collectively, the "**<u>Immediate</u> <u>Family Members</u>**"); (B) a trust solely for the benefit of the Participant and the Participant's Immediate Family Members; (C) a partnership or limited liability company whose only partners or stockholders are the Participant and the Participant's Immediate Family Members; or (D) a beneficiary to whom donations are eligible to be treated as "charitable contributions" for federal income tax purposes (each transferee described in clauses (A), (B), (C), and (D) above is hereinafter referred to as a "**<u>Permitted</u> <u>Transferee</u>**"); *provided*, that the Participant gives the Committee advance written notice describing the terms and conditions of the proposed transfer and the Committee notifies the Participant in writing that such a transfer would comply with the requirements of the Plan.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The terms of any Award transferred in accordance with clause (ii) above shall apply to the Permitted Transferee and any reference in the Plan or in any applicable Award Agreement to a Participant shall be deemed to refer to the Permitted Transferee, except that: (A) Permitted Transferees shall not be entitled to transfer any Award, other than by will or the laws of descent and distribution; (B) Permitted Transferees shall not be entitled to exercise any transferred Option unless there shall be in effect a registration statement on an appropriate form covering the shares of Common Stock to be acquired pursuant to the exercise of such Option if the Committee determines, consistent with any applicable Award Agreement, that such a registration statement is necessary or appropriate; (C) neither the Committee nor the Company shall be required to provide any notice to a Permitted Transferee, whether or not such notice is or would otherwise have been required to be given to the Participant under the Plan or otherwise; and (D) the consequences of a Participant's Termination under the terms of the Plan and the applicable Award Agreement shall continue to be applied with respect to the Participant, including, without limitation, that an Option shall be exercisable by the Permitted Transferee only to the extent, and for the periods, specified in the Plan and the applicable Award Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Dividends and Dividend Equivalents</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Committee may, in its sole discretion, provide a Participant as part of an Award with dividends, dividend equivalents, or similar payments in respect of Awards, payable in cash, shares of Common Stock, other securities, other Awards or other property, on a current or deferred basis, on such terms and conditions as may be determined by the Committee in its sole discretion, including, without limitation, payment directly to the Participant, withholding of such amounts by the Company subject to vesting of the Award or reinvestment in additional shares of Common Stock, Restricted Stock or other Awards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Without limiting the foregoing, unless otherwise provided in the Award Agreement, any dividend otherwise payable in respect of any share of Restricted Stock that remains subject to vesting conditions at the time of payment of such dividend shall be retained by the Company, remain subject to the same vesting conditions as the share of Restricted Stock to which the dividend relates and shall be delivered (without interest) to the Participant within 15 days following the date on which such restrictions on such Restricted Stock lapse (and the right to any such accumulated dividends shall be forfeited upon the forfeiture of the Restricted Stock to which such dividends relate).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) To the extent provided in an Award Agreement, the holder of outstanding Restricted Stock Units shall be entitled to be credited with dividend equivalent payments (upon the payment by the Company of dividends on shares of Common Stock) either in cash or, in the sole discretion of the Committee, in shares of Common Stock having a Fair Market Value equal to the amount of such dividends (and interest may, in the sole discretion of the Committee, be credited on the amount of cash dividend equivalents at a

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rate and subject to such terms as determined by the Committee), which accumulated dividend equivalents (and interest thereon, if applicable) shall be payable at the same time as the underlying Restricted Stock Units are settled following the date on which the Restricted Period lapses with respect to such Restricted Stock Units, and if such Restricted Stock Units are forfeited, the Participant shall have no right to such dividend equivalent payments (or interest thereon, if applicable).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Tax Withholding</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) A Participant shall be required to pay to the Company or one or more of its Subsidiaries, as applicable, an amount in cash (by check or wire transfer) equal to the aggregate amount of any income, employment, and/or other applicable taxes that are statutorily required to be withheld in respect of an Award. Alternatively, the Company or any of its Subsidiaries may elect, in its sole discretion, to satisfy this requirement by withholding such amount from any cash compensation or other cash amounts owing to a Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Without limiting the foregoing, the Committee may (but is not obligated to), in its sole discretion, permit or require a Participant to satisfy all or any portion of the minimum income, employment, and/or other applicable taxes that are statutorily required to be withheld with respect to an Award by: (A) the delivery of shares of Common Stock (which are not subject to any pledge or other security interest) that have been both held by the Participant and vested for at least six months (or such other period as established from time to time by the Committee in order to avoid adverse accounting treatment under applicable accounting standards) having an aggregate Fair Market Value equal to such minimum statutorily required withholding liability (or portion thereof); or (B) having the Company withhold from the shares of Common Stock otherwise issuable or deliverable to, or that would otherwise be retained by, the Participant upon the grant, exercise, vesting, or settlement of the Award, as applicable, a number of shares of Common Stock with an aggregate Fair Market Value equal to an amount, subject to clause (iii) below, not in excess of such minimum statutorily required withholding liability (or portion thereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Committee, subject to its having considered the applicable accounting impact of any such determination, has full discretion to allow Participants to satisfy, in whole or in part, any additional income, employment, and/or other applicable taxes payable by them with respect to an Award by electing to have the Company withhold from the shares of Common Stock otherwise issuable or deliverable to, or that would otherwise be retained by, a Participant upon the grant, exercise, vesting, or settlement of the Award, as applicable, shares of Common Stock having an aggregate Fair Market Value that is greater than the applicable minimum required statutory withholding liability (but such withholding may in no event be in excess of the maximum statutory withholding amount(s) in a Participant's relevant tax jurisdictions).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Data Protection</u>. By participating in the Plan or accepting any rights granted under it, each Participant consents to the collection and processing of personal data relating to the Participant so that the Company and its Affiliates can fulfill their obligations and exercise their rights under the Plan and generally administer and manage the Plan. This data will include, but may not be limited to, data about participation in the Plan and shares offered or received, purchased, or sold under the Plan from time to time and other appropriate financial and other data (such as the date on which the Awards were granted) about the Participant and the Participant's participation in the Plan.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>No Claim to Awards; No Rights to Continued Employment; Waiver</u>. No employee of any member of the Company Group, or other Person, shall have any claim or right to be granted an Award under the Plan or, having been selected for the grant of an Award, to be selected for a grant of any other Award. There is no obligation for uniformity of treatment of Participants or holders or beneficiaries of Awards. The terms and conditions of Awards and the Committee's determinations and interpretations with respect thereto need not be the same with respect to each Participant and may be made selectively among Participants, whether or not such Participants are similarly situated. Neither the Plan nor any action taken hereunder shall be construed as giving any Participant any right to be retained in the employ or service of the Service Recipient or any other member of the Company Group, nor shall it be construed as giving any Participant any rights to continued service on the Board. The Service Recipient or any other member of the Company Group may at any time dismiss a Participant from employment or discontinue any consulting relationship, free from any liability or any claim under the Plan, unless otherwise expressly provided in the Plan or any Award Agreement. By accepting an Award under the Plan, a Participant shall thereby be deemed to have waived any claim to continued exercise or vesting of an Award or to damages or severance entitlement related to non-continuation of the Award beyond the period provided under the Plan or any Award Agreement, except to the extent of any provision to the contrary in any written employment contract or other agreement between the Service Recipient and/or any member of the Company Group and the Participant, whether any such agreement is executed before, on, or after the Date of Grant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Designation and Change of Beneficiary</u>. Each Participant may file with the Committee, on a form accepted or approved by the Committee, a written designation of one or more Persons as the beneficiary or beneficiaries, as applicable, who shall be entitled to receive the amounts payable with respect to an Award, if any, due under the Plan upon the Participant's death. A Participant may, from time to time, revoke or change the Participant's beneficiary designation without the consent of any prior beneficiary by filing a new designation with the Committee. The last such designation received by the Committee shall be controlling; *provided*, *however*, that no designation, or change or revocation thereof, shall be effective unless received by the Committee prior to the Participant's death, and in no event shall it be effective as of a date prior to such receipt. If no beneficiary designation is filed by a Participant, the beneficiary shall be deemed to be the Participant's spouse or, if the Participant is unmarried at the time of death, the Participant's estate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Termination</u>. Except as otherwise provided in an Award Agreement, unless determined otherwise by the Committee at any point following such event: (i) neither a temporary absence from employment or service due to illness, vacation, or leave of absence (including, without limitation, a call to active duty for military service through a Reserve or National Guard unit) nor a transfer from employment or service with one Service Recipient to employment or service with another Service Recipient (or vice-versa) shall be considered a Termination; and (ii) if a Participant undergoes a Termination, but such Participant continues to provide services to the Company Group in a non-employee capacity, such change in status shall

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not be considered a Termination for purposes of the Plan. Further, unless otherwise determined by the Committee, in the event that any Service Recipient ceases to be a member of the Company Group (by reason of sale, divestiture, spin-off, or other similar transaction), unless a Participant's employment or service is transferred to another entity that would constitute a Service Recipient immediately following such transaction, such Participant shall be deemed to have suffered a Termination hereunder as of the date of the consummation of such transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>No Rights as a Stockholder</u>. Except as otherwise specifically provided in the Plan or any Award Agreement, no Person shall be entitled to the privileges of ownership in respect of shares of Common Stock which are subject to Awards hereunder until such shares have been issued or delivered to such Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Government and Other Regulations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The obligation of the Company to settle Awards in shares of Common Stock or other consideration shall be subject to all applicable laws, rules, and regulations, and to such approvals by governmental agencies as may be required. Notwithstanding any terms or conditions of any Award to the contrary, to the extent applicable the Company shall be under no obligation to offer to sell or to sell, and shall be prohibited from offering to sell or selling, any shares of Common Stock pursuant to an Award unless such shares have been properly registered for sale pursuant to the Securities Act with the Securities and Exchange Commission or unless the Company has received an opinion of counsel (if the Company has requested such an opinion), satisfactory to the Company, that such shares may be offered or sold without such registration pursuant to an available exemption therefrom and the terms and conditions of such exemption have been fully complied with. The Company shall be under no obligation to register for sale under the Securities Act any of the shares of Common Stock to be offered or sold under the Plan. The Committee shall have the authority to provide that all shares of Common Stock or other securities of any member of the Company Group issued under the Plan shall be subject to such stop-transfer orders and other restrictions as the Committee may deem advisable under the Plan, the applicable Award Agreement, the Federal securities laws, or the rules, regulations, and other applicable requirements of the Securities and Exchange Commission and any securities exchange or inter-dealer quotation system on which the securities of the Company are listed or quoted, and any other applicable Federal, state, local, or non-U.S. laws, rules, regulations, and other requirements, and, without limiting the generality of Section 9 of the Plan, the Committee may cause a legend or legends to be put on certificates representing shares of Common Stock or other securities of any member of the Company Group issued under the Plan to make appropriate reference to such restrictions or may cause such Common Stock or other securities of any member of the Company Group issued under the Plan in book-entry form to be held subject to the Company's instructions or subject to appropriate stop-transfer orders. Notwithstanding any provision in the Plan to the contrary, the Committee reserves the right to add, at any time, any additional terms or provisions to any Award granted under the Plan that the Committee, in its sole discretion, deems necessary or advisable in order that such Award complies with the legal requirements of any governmental entity to whose jurisdiction the Award is subject.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Committee may cancel an Award or any portion thereof if it determines, in its sole discretion, that legal or contractual restrictions and/or blockage and/or other market considerations would make the Company's acquisition of shares of Common Stock from the public markets, the Company's issuance of Common Stock to the Participant, the Participant's acquisition of Common Stock from the Company, and/or the Participant's sale of Common Stock to the public markets, illegal, impracticable, or inadvisable. If the Committee determines to cancel all or any portion of an Award in accordance with the foregoing, the Company shall, subject to any limitations or reductions as may be necessary to comply with Section 409A of the Code: (A) pay to the Participant an amount equal to the excess of (I) the aggregate Fair Market Value of the shares of Common Stock subject to such Award or portion thereof canceled (determined as of the applicable exercise date, or the date that the shares would have been vested or issued, as applicable), over (II) the aggregate Exercise Price or Strike Price (in the case of an Option or SAR, respectively) or any amount payable as a condition of issuance of shares of Common Stock (in the case of any other Award), with such amount being delivered to the Participant as soon as practicable following the cancellation of such Award or portion thereof or (B) in the case of Restricted Stock, Restricted Stock Units, or Other Equity-Based Awards, provide the Participant with a cash payment or equity subject to deferred vesting and delivery consistent with the vesting restrictions applicable to such Restricted Stock, Restricted Stock Units, or Other Equity-Based Awards, or the underlying shares in respect thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>No Section</u> <u>83(b) Elections Without Consent of Company</u>. No election under Section 83(b) of the Code or under a similar provision of law may be made unless expressly permitted by the terms of the applicable Award Agreement or by action of the Committee (or its designee in accordance with Section 4(c) of the Plan) in writing prior to the making of such election. If a Participant, in connection with the acquisition of shares of Common Stock under the Plan or otherwise, is expressly permitted to make such election and the Participant makes the election, the Participant shall notify the Company of such election within ten days of filing notice of the election with the Internal Revenue Service or other governmental authority, in addition to any filing and notification required pursuant to Section 83(b) of the Code or other applicable provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Payments to Persons Other Than Participants</u>. Any amount payable to or for the benefit of a minor, an incompetent Person or other Person incapable of receipt thereof shall be deemed paid when paid to such Person's guardian or to the party having custody or providing for the care of such Person, and such payment shall fully discharge the Committee, the Board, the Company, its Affiliates and their officers, directors, managers, employees, agents and representatives with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Nonexclusivity of the Plan</u>. Neither the adoption of the Plan by the Board nor the submission of the Plan to the stockholders of the Company for approval shall be construed as creating any limitations on the power of the Board to adopt such other incentive arrangements as it may deem desirable, including, without limitation, the granting of equity-based awards otherwise than under the Plan, and such arrangements may be either applicable generally or only in specific cases.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>No Trust or Fund Created</u>. Neither the Plan nor any Award shall create or be construed to create a trust or separate fund of any kind or a fiduciary relationship between any member of the Company Group, on the one hand, and a Participant or other Person, on the other hand. No provision of the Plan or any Award shall require the Company, for the purpose of satisfying any obligations under the Plan, to purchase assets or place any assets in a trust or other entity to which contributions are made or otherwise to segregate any assets, nor shall the Company be obligated to maintain separate bank accounts, books, records, or other evidence of the existence of a segregated or separately maintained or administered fund for such purposes. Participants shall have no rights under the Plan other than as unsecured general creditors of the Company, except that insofar as they may have become entitled to payment of additional compensation by performance of services, they shall have the same rights as other service providers under general law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Reliance on Reports</u>. Each member of the Committee and each member of the Board shall be fully justified in acting or failing to act, as the case may be, and shall not be liable for having so acted or failed to act in good faith, in reliance upon any report made by the independent public accountant of any member of the Company Group and/or any other information furnished in connection with the Plan by any agent of the Company or the Committee or the Board, other than himself or herself.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Relationship to Other Benefits</u>. No payment under the Plan shall be taken into account in determining any benefits under any pension, retirement, profit sharing, group insurance, or other benefit plan of the Company except as otherwise specifically provided in such other plan or as required by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Governing Law</u>. The Plan shall be governed by and construed in accordance with the internal laws of the State of Delaware applicable to contracts made and performed wholly within the State of Delaware, without giving effect to the conflict of laws' provisions thereof. EACH PARTICIPANT WHO ACCEPTS AN AWARD IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY SUIT, ACTION, OR OTHER PROCEEDING INSTITUTED BY OR AGAINST SUCH PARTICIPANT IN RESPECT OF THE PARTICIPANT'S RIGHTS OR OBLIGATIONS HEREUNDER.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>Severability</u>. If any provision of the Plan or any Award or Award Agreement is or becomes or is deemed to be invalid, illegal, or unenforceable in any jurisdiction or as to any Person or Award, or would disqualify the Plan or any Award under any law deemed applicable by the Committee, such provision shall be construed or deemed amended to conform to the applicable laws, or if it cannot be construed or deemed amended without, in the determination of the Committee, materially altering the intent of the Plan or the Award, such provision shall be construed or deemed stricken as to such jurisdiction, Person, or Award and the remainder of the Plan and any such Award shall remain in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) <u>Obligations Binding on Successors</u>. The obligations of the Company under the Plan shall be binding upon any successor corporation or organization resulting from the merger, consolidation, or other reorganization of the Company, or upon any successor corporation or organization succeeding to substantially all of the assets and business of the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) <u>Section 409A of the Code</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Notwithstanding any provision of the Plan to the contrary, it is intended that the provisions of the Plan, including but not limited to the effect of any Adjustment Event pursuant to Section 11, comply with Section 409A of the Code, and all provisions of the Plan shall be construed and interpreted in a manner consistent with the requirements for avoiding taxes or penalties under Section 409A of the Code. Each Participant is solely responsible and liable for the satisfaction of all taxes and penalties that may be imposed on or in respect of such Participant in connection with the Plan (including any taxes and penalties under Section 409A of the Code), and neither the Service Recipient nor any other member of the Company Group shall have any obligation to indemnify or otherwise hold such Participant (or any beneficiary) harmless from any or all of such taxes or penalties. With respect to any Award that is considered "deferred compensation" subject to Section 409A of the Code, references in the Plan to "termination of employment" (and substantially similar phrases) shall mean "separation from service" within the meaning of Section 409A of the Code. For purposes of Section 409A of the Code, each of the payments that may be made in respect of any Award granted under the Plan is designated as a separate payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Notwithstanding anything in the Plan to the contrary, if a Participant is a "specified employee" within the meaning of Section 409A(a)(2)(B)(i) of the Code, no payments in respect of any Awards that are "deferred compensation" subject to Section 409A of the Code and which would otherwise be payable upon the Participant's "separation from service" (as defined in Section 409A of the Code) shall be made to such Participant prior to the date that is six months after the date of such Participant's "separation from service" or, if earlier, the date of the Participant's death. Following any applicable six-month delay, all such delayed payments will be paid in a single lump sum on the earliest date permitted under Section 409A of the Code that is also a business day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Unless otherwise provided by the Committee in an Award Agreement or otherwise, in the event that the timing of payments in respect of any Award (that would otherwise be considered "deferred compensation" subject to Section 409A of the Code) are accelerated upon the occurrence of (A) a Change in Control, no such acceleration shall be permitted unless the event giving rise to the Change in Control satisfies the definition of a change in the ownership or effective control of a corporation, or a change in the ownership of a substantial portion of the assets of a corporation pursuant to Section 409A of the Code or (B) a Disability, no such acceleration shall be permitted unless the Disability also satisfies the definition of "Disability" pursuant to Section 409A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) <u>Clawback/Repayment</u>. All Awards shall be subject to reduction, cancellation, forfeiture or recoupment to the extent necessary to comply with (i) any clawback, forfeiture or other similar policy adopted by the Board or the Committee and as in effect from time to time; and (ii) applicable law. Further, unless otherwise determined by the Committee, to the extent that the Participant receives any amount in excess of the amount that the Participant should otherwise have received under the terms of the Award for any reason (including, without limitation, by reason of a financial restatement, mistake in calculations or other administrative error), the Participant shall be required to repay any such excess amount to the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>Detrimental Activity</u>. Notwithstanding anything to the contrary contained herein, if a Participant has engaged in any Detrimental Activity, as determined by the Committee, the Committee may, in its sole discretion, provide for one or more of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) cancellation of any or all of such Participant's outstanding Awards; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) forfeiture by the Participant of any gain realized on the vesting or exercise of Awards, and repayment of any such gain promptly to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) <u>Right of Offset</u>. The Company will have the right to offset against its obligation to deliver shares of Common Stock (or other property or cash) under the Plan or any Award Agreement any outstanding amounts (including, without limitation, travel and entertainment or advance account balances, loans, repayment obligations under any Awards, or amounts repayable to the Company pursuant to tax equalization, housing, automobile, or other employee programs) that the Participant then owes to any member of the Company Group and any amounts the Committee otherwise deems appropriate pursuant to any tax equalization policy or agreement. Notwithstanding the foregoing, if an Award is "deferred compensation" subject to Section 409A of the Code, the Committee will have no right to offset against its obligation to deliver shares of Common Stock (or other property or cash) under the Plan or any Award Agreement if such offset could subject the Participant to the additional tax imposed under Section 409A of the Code in respect of an outstanding Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) <u>Expenses; Titles and Headings</u>. The expenses of administering the Plan shall be borne by the Company Group. The titles and headings of the sections in the Plan are for convenience of reference only, and in the event of any conflict, the text of the Plan, rather than such titles or headings, shall control.

## Exhibit 10.19

**Exhibit 10.19** 

REPUBLIC AIRWAYS HOLDINGS INC.

LONG-TERM INCENTIVE PLAN

1. **Purpose** 

The purpose of the Republic Airways Holdings Inc. Long-Term Incentive Plan (this "***Plan***") is to promote the interests of Republic Airways Holdings Inc. (the "***Company***") and its subsidiaries and affiliates through grants of cash-based incentive interests ("***Incentive Interests***") to eligible employees of the Company in order to (i) provide such employees with a long-term interest in the economic success of the entities they support, (ii) drive performance related to the strategic initiatives of the Company and (iii) provide continuity in a rapidly changing environment.

2. **Administration** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. The Plan shall be administered by the Compensation Committee (the "  ***Committee***") of the
Company's Board of Directors (the "  ***Board*** "). Subject to the terms of the Plan, the Committee shall have full authority and discretion to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) select the employees who will participate in the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) grant Incentive Interests to participants and establish time-based and/or performance-based vesting
requirements ("  ***Vesting Requirements***") applicable to such Incentive Interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) compute the amount payable ("  ***Award***") to any participant in accordance with the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) adopt, alter and repeal such administrative rules, guidelines and practices governing the Plan as it shall deem
advisable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) interpret conclusively the provisions of the Plan established under the Plan, and remedy any possible
ambiguities, inconsistencies or omissions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) decide conclusively all questions of fact arising under the Plan, including the circumstances under which a
participant's employment with the Company terminated; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) make all other determinations necessary or advisable for the administration of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. The Committee shall have authority to delegate such administrative duties as it may deem advisable to one or
more of its members or to one or more employees or agents of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. All determinations and interpretations made by the Committee pursuant to the provisions of the Plan shall be
final and binding on all persons, including the Company and the affected participants. Determinations by the Committee under the Plan relating to the form, amount, and terms and conditions of Awards need not be uniform, and may be made selectively
among persons who are selected to participate in the Plan, whether or not such persons are similarly situated.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. No member of the Board or the Committee, nor any officer or employee of the Company or its subsidiaries acting
on behalf of the Board or the Committee, shall be personally liable for any action, determination or interpretation taken or made with respect to the Plan or any Award hereunder. The Company shall indemnify all members of the Board and the Committee
and all such officers and employees acting on their behalf, to the extent permitted by law, from and against any and all liabilities, costs and expenses incurred by such persons as a result of any act, or omission to act, in connection with the
performance of their duties, responsibilities and obligations under the Plan.

3. **Eligibility and Participation** 

Participation in this Plan for any fiscal year is limited to officers at the level of senior vice president and above and such other key employees of the Company or any of its subsidiaries or affiliates who are selected by the Committee (or its delegate) to participate for that fiscal year. With the exception of officers at the level of senior vice president and above, selection to participate in one year does not guarantee participation in any subsequent year.

4. **Establishment of Incentive Interest and Vesting Requirements** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. With respect to each fiscal year of the Company commencing on or after the Effective Date (as defined below),
the Committee shall select the Plan participants for such fiscal year and establish in a written award agreement (the "  ***Award Agreement"***) the Incentive Interest and Vesting Requirements for each participant chosen to
participate for such fiscal year. Payment of an Award under the Plan shall be contingent upon achievement of the Vesting Requirements established by the Committee. The Vesting Requirements may differ for different participants, whether or not they
are similarly situated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. The Incentive Interest shall be expressed as either a dollar amount or a percentage of the participant's
base salary in effect on the date the Committee establishes the Incentive Interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. The Vesting Requirements shall consist of time-based vesting conditions (the "  ***Time-Vesting Portion***") and/or performance-based vesting conditions (the "  ***Performance-Vesting Portion***") based on the achievement of Performance Goals (as defined below), as determined by the Committee and set forth in the
applicable Award Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. The "  ***Performance Goals"*** applicable to the Performance-Vesting Portion of a
participant's Incentive Interest will be based on one or more financial or strategic objectives determined by the Committee at the time the Incentive Interest is established and a targeted level of performance with respect to each such
objective, as specified by the Committee in the applicable Award Agreement. The

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financial and/or strategic objectives and targeted levels may be established for the Company on a consolidated basis, and/or for specified subsidiaries or affiliates or other business units of the Company, as specified by the Committee. The Committee may condition payment of an Award on achievement of any single Performance Goal, or any one of several Performance Goals, or may require that two or more of the Performance Goals must be achieved as a condition to payment of an Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. The Committee may, in its discretion exercised in good faith and after reasonable consultation with senior
management, make adjustments to the Performance Goals applicable to outstanding Incentive Interests to take account of extraordinary circumstances materially affecting the Company, which adjustments may apply to all participants or only designated
participants whether or not similarly situated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. The Committee, in its sole discretion, may waive the Vesting Requirements applicable to outstanding Incentive
Interests in whole or in part, which waiver may apply to all participants or only designated participants whether or not similarly situated.

5. **Determination and Payment of an Award** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Promptly after the date on which the necessary information for a particular fiscal year becomes available, the
Committee shall determine the extent to which the Incentive Interest of each participant has been earned, through the achievement of the relevant Vesting Requirements, during that fiscal year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Promptly after the Committee has determined the amount of an Award earned during a fiscal year (but in no event
later than the March 15 following the end of such fiscal year), such Award shall be paid in cash in a lump sum. In the event of a participant's death, amounts payable under the Plan shall be paid to the participant's estate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Except as otherwise specifically set forth in any employment agreement between the participant and the Company
or a subsidiary or affiliate thereof and notwithstanding the achievement of any Performance Goals established under the Plan, the Committee retains the right, in its discretion exercised in good faith and after reasonable consultation with senior
management, to reduce some or all of the Performance-Vesting Portion of any Award that would otherwise be paid to a participant based on such factors as it deems appropriate, which reductions may apply to all participants or only designated
participants whether or not similarly situated.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Notwithstanding any other provisions in this Plan or an Award Agreement to the contrary, in the event that
(a) the Company issues a restatement of financial results to correct a material error or misrepresentation, (b) the Committee determines, in good faith, that fraud or willful misconduct or negligence on behalf of a participant was a
significant contributing factor to the need to issue such restatement, and (c) some or all of the Award paid prior to such restatement would not have been awarded or paid, as applicable, based upon the restated financial results, the Company
shall be entitled to clawback such affected payments pursuant to applicable law and/or government regulation; provided, however, that Awards paid more than 2 years prior to such restatement shall not be subject to clawback unless fraud or willful
misconduct or negligence on behalf of the participant was a significant contributing factor to the need to issue such restatement.

6. **Effect of Termination of Employment** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Except as otherwise provided in an applicable Award Agreement or employment agreement, upon a
participant's termination of employment with the Company (or subsidiary or affiliate) other than for Cause, the participant will be entitled to receive payment of his or her outstanding Awards, to the extent vested, at the same time that Awards
for such fiscal year are paid to other participants in the Plan, and the unvested portion of all other outstanding Awards will be immediately forfeited upon termination of employment for no consideration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Upon a participant's termination of employment with the Company (or subsidiary or affiliate) for Cause,
all of the participant's outstanding Awards will be immediately forfeited for no consideration, whether vested or unvested.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. For purposes of this Plan, "  ***Cause"*** shall, with respect to a particular participant,
have the definition provided in an employment agreement between the participant and the Company or a subsidiary or affiliate thereof, or in the absence of such definition, shall mean that the participant has (i) willfully refused to perform a
material part of his or her duties, (ii) willfully failed to follow the direction of his or her supervisor, (iii) materially breached any applicable restrictive covenants concerning confidentiality, non-competition or non-solicitation, (iv) acted fraudulently or dishonestly in his or her relations with the Company, (v) committed larceny, embezzlement,
conversion or any other act involving the misappropriation of Company funds or assets in the course of the participant's employment, (vi) been indicted or convicted of any felony or other crime involving an act of moral turpitude or
(vii) willful violation of any of the Company's policies or procedures.

7. **Miscellaneous Provisions** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. **Right to Benefits**. The sole interest of each participant under the Plan will be to receive the benefits
provided herein as and when the same become due and payable in accordance with the terms hereof, and no participant will have any right, title, or interest in or to any of the specific assets of the Company. All benefits hereunder will be paid
solely from the general assets of the Company, and the Company will not be required to maintain any separate fund or other segregated assets to provide any benefits hereunder. The rights of any participant hereunder will be solely those of a general
unsecured creditor of the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. **Nonalienation of Benefits**. Except as otherwise provided by law, no benefit, payment, or distribution
under the Plan will be subject either to the claim of any creditor of a participant, or to attachment, garnishment, levy, execution or other legal or equitable process by any creditor of such person. Also, no participant will have any right to
alienate, anticipate, or assign (either at law or in equity) all or any portion of any benefit, payment or distribution under the Plan, except pursuant to the laws of descent and distribution. In the event that any participant's benefits are
garnished or attached by order of any court, the Company may elect to bring an action for a declaratory judgment in a court of competent jurisdiction to determine the proper recipient of the benefits to be paid by the Plan. During the pendency of
said action, any benefits that become payable may be paid into the court as they become payable, to be distributed by the court to the recipient as it deems proper at the close of said action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. **No Employment Rights**. Neither participation in the Plan nor the grant of any Award under the Plan shall
confer on any participant any right to continued employment for any period nor affect the Company's right to terminate a participant's employment at any time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. **Offset to Benefits**. Any other provision of the Plan to the contrary notwithstanding, the Company may, if
the Company in its sole and absolute discretion shall determine, offset any amounts to be paid to a participant under the Plan against any amounts which such participant may owe to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. **Withholding**. Payments under the Plan shall be net of an amount sufficient to satisfy any federal, state
or local withholding tax liability. Determinations by the Company as to the amount of such withholding shall be conclusive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. **Other Compensation Programs**. Nothing in this Plan shall limit the authority of the Board to compensate
employees of the Company and its subsidiaries, whether under plans currently in effect or by adopting additional compensation plans or arrangements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. **Section 409A**. All Awards granted under the Plan are intended to satisfy the
requirements of (or be exempt from) Section 409A of the Internal Revenue Code of 1986 (as amended) ("  ***Section 409A*** "), and the provisions of the Plan and of any Incentive Interest granted
under the Plan shall be construed in a manner consistent therewith. Specifically, any taxable benefits or payments provided under this Plan are deemed to be separate payments that qualify for the "short-term deferral" exclusion from
Section 409A to the maximum extent possible, and to the extent they do not so qualify, are intended to qualify for the "involuntary separation pay" exclusion from Section 409A, to the maximum extent possible. To the extent that
none of these exceptions (or any other available exception) applies, then notwithstanding anything contained herein to the contrary, and to the extent

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required to comply with Section 409A, if a participant is a "specified employee," as determined by the Company within the meaning of Section 409A, as of the date his employment terminates, then all amounts due under this Agreement that constitute a "deferral of compensation" within the meaning of Section 409A, that are provided as a result of a "separation from service" within the meaning of Section 409A, and that would otherwise be paid or provided during the first six months following the date the participant's employment terminates, shall be instead paid or provided on the first normal payroll day that is more than six months after the date the participant's employment terminates Notwithstanding anything to the contrary contained in the Plan, in no event shall the Company or any of its subsidiaries or affiliates (or any agent thereof) have any liability to the participant or any other person due to the failure of an Award to satisfy the requirements of, or be exempt from, Section 409A. Each payment to be made with respect to an Award shall constitute a separate payment for purposes of Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. **Amendment and Termination**. The Plan may be amended, suspended or terminated at any time by the
Committee; provided, however, that no amendment may materially adversely affect the rights of a participant with respect to an outstanding Incentive Interest without such participant's written consent. For the avoidance of doubt, the exercise
of discretion by the Committee in accordance with the provisions of the Plan shall not constitute an amendment of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. **Controlling Law**. The Plan shall be governed by the laws of the State of Indiana, without regard to its
conflicts of laws principles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j. **Effective Date**. The Plan shall be effective as of January 1, 2017 (the "  ***Effective Date*** ").

IN WITNESS WHEREOF, the Company has executed this Plan effective as of the Effective Date.

 Name: [●]

 Title: [●]

## Exhibit 10.20

**Exhibit 10.20** 

**REPUBLIC AIRWAYS HOLDINGS INC** 

**AGREEMENT FOR GRANT OF INCENTIVE INTEREST** 

[Date]

[Name]

[Title]

[Employee ID]

Dear [Name]:

The purpose of this agreement (the "***Award Agreement***") is to set forth the terms and conditions of the grant of a long-term cash-based incentive interest (the "***Incentive Interest***") made to you by Republic Airways Holdings Inc. (the "***Company***") under the Republic Airways Holdings Inc. Long Term Incentive Plan (the "***Plan***"). Any capitalized term used in this Award Agreement and not defined will have the meaning set forth in the Plan.

The Incentive Interest is subject to the terms and conditions set forth in this Award Agreement and the Plan, as well as any rules and regulations adopted by the Compensation Committee of the Board of Directors of the Company (the "***Committee***") which administers this Award Agreement and the Plan.

In general, the amount of your potential Award is expressed as a ***Target Award,*** which is the amount of your Incentive Interest that you will earn if the vesting requirements, as specified in this Award Agreement, are fully satisfied and the Performance Cycle, as defined below, is achieved at the 100% level. The Award payable under your Incentive Interest may be more or less than your Target Award, depending on the level of vesting achieved.

**1. Target Award.** 

Your Target Award for this Incentive Interest is [_]. [_]% of this Incentive Interest, XXX, shall be subject to time-based vesting (the "***Time-Vesting Portion***") and [_]% percent of this Incentive Interest, [_], shall be subject to performance-based vesting (the "***Performance-Vesting Portion***").

**2. Vesting Requirements.** 

(a) Except as otherwise provided in paragraph (4) below, the Time-Vesting Portion of your Incentive Interest will vest in three equal installments on [_], as to 33-1/3%, [_], as to 33-1/3%, and [_], as to the remaining 33-1/3%, subject to your remaining in active employment with the Company (or a subsidiary or affiliate of the Company) through the applicable vesting date. Notwithstanding the foregoing, if the Company's pre-tax income for the fiscal year ending on any such date is not a positive amount, the vesting of the installment scheduled to vest on such date shall be postponed until the Company's pre-tax income for two consecutive fiscal quarters is a positive amount, whereupon such installment shall vest, subject to your remaining in active employment with the Company (or a subsidiary or affiliate of the Company) through the end of such consecutive fiscal quarters.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as otherwise provided in paragraph (4) below, the Performance-Vesting Portion of your Incentive Interest will vest on [_], subject to, and to the extent of, achievement of the Performance Goals set forth in Exhibit 1 attached hereto for the period [_], through [_] (the "**Performance Cycle**") and subject to your remaining in active employment with the Company (or a subsidiary or affiliate of the Company) through [_].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Following the conclusion of the Performance Cycle, the Committee shall make a good faith determination of the level of achievement of the Performance Goals, based on such factors as it deems appropriate for such determination. The Committee's determination of the level of achievement of the Performance Goals, and the actual amount of the Performance-Vesting Portion of your Incentive Interest (if any) that is earned, shall be final and binding on you.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Upon a Change of Control, the outstanding Performance-Vesting Portion of your Incentive Interest will be treated as earned at Target and, except as otherwise provided in paragraph (4) below, will vest on [_], subject only to your remaining in active employment with the Company (or a subsidiary or affiliate of the Company) through [_].

**3. Payment of Award.** 

Except as otherwise provided in paragraph (4) below, each installment of the Time- Vesting Portion of your Incentive Interest and the earned amount of the Performance-Vesting Portion of your Incentive Interest will be paid in a lump sum in cash as soon as practicable after the applicable conditions to the vesting of such amount are determined by the Committee to have been satisfied, but in no event later than the 15<sup>th</sup> of March following satisfaction of the vesting requirements.

**4. Termination of Employment.** 

The following provisions shall govern the treatment of your Incentive Interest upon a termination of your employment with the Company (or subsidiary or affiliate); provided, however, that if you have an employment agreement with the Company, the treatment of your Incentive Interest upon a termination of your employment will be governed by the applicable provision in this paragraph (4) or the applicable provision in your employment agreement, whichever is more favorable to you.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Retirement.** If your employment with the Company (or subsidiary or affiliate) terminates due to a Qualified Retirement, a pro-rated portion (based on the number of days worked over 365 days) of the outstanding Time-Vesting Portion of your Incentive Interest that would have vested at the end of the fiscal year in which the termination occurs shall immediately vest and be paid within 30 days following such termination date; and a pro-rated portion (based on the number of days worked over the total number of days in the Performance Cycle) of the outstanding Performance-Vesting Portion of your Incentive Interest that you would have been entitled to receive had your employment continued through the end of the performance cycle shall be deemed vested and shall be paid at the same time that Awards for such Performance Cycle are paid to other participants in the Plan but in no event later than the 15<sup>th</sup> of March following the end of the Performance Cycle. **"*Qualified Retirement*"** shall have the meaning determined by the Committee from time to time at its discretion.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Death or Disability.** If your employment with the Company (or subsidiary or affiliate) terminates due to death or Disability, any portion of your outstanding Incentive Interest (including any Performance-Vesting Portion of your Incentive Interest) that has not fully vested shall immediately vest (vesting shall be at Target in the case of any such Performance-Vesting Portion of such Incentive Interest) and shall be paid within 30 days following such termination. In the event of your death, any portion of an Incentive Interest payable to you shall be paid to your legal spouse or, if you have no living legal spouse at the time the Incentive Interest is payable, to your designated primary beneficiary under the Company's group life insurance policy or, if you have no such designated beneficiary, your estate. "Disability" means that you become eligible for long-term disability benefits under the Company's group disability program or, if you are not a participant under the Company's group disability program, shall mean disability as determined by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Resignation.** If you voluntarily resign your employment with the Company (or subsidiary or affiliate), any unvested portion of your outstanding Incentive Interest shall be immediately forfeited for no consideration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Termination for Cause.** If your employment with the Company (or subsidiary or affiliate) is terminated by the Company for Cause, all of your outstanding Incentive Interest will be immediately forfeited for no consideration, whether vested or unvested.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Involuntary Termination of Employment without Cause (other than in connection with a Change of Control).** If your employment with the Company (or subsidiary or affiliate) is terminated by the Company without Cause (other than in connection with a Change of Control pursuant to paragraph 4(f) below), any portion of the outstanding Time-Vesting Portion of your Incentive Interest that would have vested on or before the 1-year anniversary of the termination date (1 year acceleration) shall immediately vest and be paid within 30 days following such termination; and a pro-rated portion (based on the number of days worked as if you remained employed through the 1-year anniversary of the termination date (1 year acceleration) over the total number of days in the Performance Cycle) of the outstanding Performance-Vesting Portion of your Incentive Interest that you would have been entitled to receive had your employment continued through the end of the Performance Cycle shall be deemed vested and, to the extent earned as determined by the Committee, shall be paid at the same time that Awards for such Performance Cycle are paid to other participants in the Plan, but in no event later than the 15<sup>th</sup> of March following the end of the Performance Cycle.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Involuntary Termination of Employment without Cause within 18 Months following a Change of Control.** If your employment with the Company (or subsidiary or affiliate) is terminated by the Company without Cause within 18 months following a Change of Control, any portion of your outstanding Incentive Interest (including any Performance-Vesting Portion of your Incentive Interest treated as earned under paragraph 2(d)) that has not fully vested shall immediately vest, and shall be paid within 30 days following such termination.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **Termination of Employment for Good Reason.** If you terminate employment with the Company for "Good Reason" as permitted in an employment agreement with the Company to which you are a party, your termination of employment shall be treated as an involuntary termination by the Company without Cause for purposes of paragraphs 4(e) and 4(f), as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) **Definitions of Certain Terms.** For purposes of this Award Agreement, the term "Cause" shall have the meaning set forth in the Plan. The term "Change of Control" shall mean the occurrence, after the date hereof of any of the following: (1) the acquisition by any person or group of affiliated or associated persons of a majority or more of the voting power of the Company; (2) the consummation of a sale of all or substantially all of the assets of the Company; (3) the dissolution of the Company or (4) the consummation of any merger, consolidation, or reorganization involving the Company in which, immediately after giving effect to such merger, consolidation, or reorganization, less than a majority of the total voting power of the outstanding stock of the surviving or resulting entity is then "beneficially owned" (within the meaning of Rule 13d- 3 under the Securities Exchange Act of 1934, as amended) in the aggregate by the stockholders of the Company immediately prior to such merger, consolidation or reorganization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **Release Requirement**. Notwithstanding any provision in this Agreement, any obligations of the Company under this Section 4 are conditioned on the participant's execution (without revocation during any applicable statutory revocation period) of a waiver and release of any and all claims against the Company and its affiliates in the form acceptable to the Committee.

**5. Withholding.** 

Payments under the Award Agreement shall be net of an amount sufficient to satisfy any federal, state or local withholding tax liability. Determinations by the Company as to the amount of such withholding shall be conclusive.

**6. Administration.** 

This Award Agreement is administered by the Committee (or its delegate). The Committee has the authority to interpret this Award Agreement, to adopt rules for administering this Award Agreement, to decide all questions of fact arising under this Award Agreement, and generally to make all other determinations necessary or advisable for the administration of this Award Agreement, including the determination of the circumstances of your termination of employment with the Company. All decisions and acts of the Committee are final and binding. Amendment and Adjustments to your Incentive Interest.

The Committee reserves the right to amend the terms of this Award Agreement and the Incentive Interest to the extent permitted by, and in accordance with, the terms of the Plan.

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**7. No Right to Continued Employment.** 

Nothing in this Award Agreement shall confer upon you any right with respect to the continuation of your employment with the Company and/or any of its subsidiaries or affiliates or interfere in any way with the rights of any such company to terminate your employment.

**8. Transferability.** 

You will not have any right to alienate, anticipate, or assign (either at law or in equity) all or any portion of any benefit, payment, or distribution under the Plan or this Award Agreement, except pursuant to the laws of descent and distribution.

**9. Unsecured Obligation.** 

Payments under this Award Agreement will be made solely from the general assets of the Company, and the Company will not be required to maintain any separate fund or other segregated assets to provide any benefits hereunder. Your rights under this Award Agreement will be solely those of a general unsecured creditor of the Company.

**10. Delivery of Documents and Notices.** 

Any documents relating to participating in the Plan and/or notices shall be given in writing and shall be deemed effectively given upon personal delivery, electronic delivery, or upon deposit in the U.S. Post Office or foreign equivalent, by registered or certified mail.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Electronic Delivery</u>. The Plan documents, which may, but not necessarily, include the Plan, the Award Agreement, or other reports on the Company, may be delivered to you electronically. Such means of delivery may, but do not necessarily, include the delivery of a link to a company intranet or the internet site of a third party involved in the administration of the Plan, the delivery of the document via e-mail, or such other delivery determined at the Committee's discretion.

**11. Governing Law.** 

Your Incentive Interest and this Award Agreement are governed by the laws of the State of Indiana without regard to any conflict of law rules.

**12. Miscellaneous** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) You should review your Award Agreement in its entirety and obtain the advice of your professional advisor(s) as you deem necessary. You should contact the Vice President. Human Resources if you have any questions regarding this award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Your Award is subject to all the provisions of the Plan, the provisions of which are hereby made part of your Award Agreement, and is further subject to all interpretations and amendments, which may from time to time be promulgated and adopted pursuant to the Plan. In the event of any conflict between the provisions of this Award Agreement and those of the Plan, the provisions of the Plan shall control. In the event of any conflict between the provisions of this Award Agreement and any employment agreement between you and the Company, whichever provision in the Award Agreement or the employment agreement is more favorable to you shall control.

------

**13. Changes in Tax Law** 

Notwithstanding paragraphs (3) and (4), if, as a result of changes in federal or applicable state income tax laws, your Award is subject to income tax in a year prior to the year in which such Award would otherwise be paid, the Committee shall take appropriate action to accelerate the payment of an amount sufficient to cover your tax liability on the Award to the extent permitted by applicable law.

[The remainder of this page was intentionally left blank]

------

**Exhibit 1** 

**Performance Objectives** 

The achievement results for all performance objectives shall be determined in good faith by the Committee, based on such factors as it deems appropriate for such determination.

[ ]

------

This Award Agreement contains the terms and conditions of your award and accordingly should be retained in your files for future reference.

---

| |
|:---|
|  Very truly yours, |
|  REPUBLIC AIRWAYS HOLDINGS INC. |

---

## Exhibit 10.21

**Exhibit 10.21** 

**RESTRICTED STOCK UNIT GRANT NOTICE** 

**UNDER THE** 

**REPUBLIC AIRWAYS HOLDINGS INC.** 

**2020 OMNIBUS INCENTIVE PLAN** 

Republic Airways Holdings Inc. (the "<u>Company</u>"), pursuant to its Republic Airways Holdings Inc. 2020 Omnibus Incentive Plan, as it may be amended and restated from time to time (the "<u>Plan</u>"), hereby grants to the Participant set forth below the target number of Restricted Stock Units set forth below. The Restricted Stock Units are subject to all of the terms and conditions as set forth herein, in the Restricted Stock Unit Agreement (attached hereto or previously provided to the Participant in connection with a prior grant), and in the Plan, all of which are incorporated herein in their entirety. Capitalized terms not otherwise defined herein shall have the meaning set forth in the Plan.

---

| | |
|:---|:---|
| **Participant**: | [*Insert Participant Name*] |
| **Date of Grant**: | [_], 20[_] |
| **Target Number of** |  |
| **Restricted Stock Units**: | [*Insert No. of Restricted Stock Units Granted*] |
| **Share Price at Issuance**: | $[_]/share |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.** **Issuance of Restricted Stock Units.** The number of Restricted Stock Units that are earned and eligible to
vest (" <u>Earned RSUs</u> ") shall be determined, subject to Section 2, Section 3 and Section 4 below, based on the product of (x) the target number of Restricted Stock Units multiplied by all applicable multipliers as
set forth below (rounded down to the nearest whole Restricted Stock Unit). To the extent earned and payable in accordance with this Grant Notice, the Earned RSUs will be subject to the additional vesting terms set forth herein. All determinations
with respect to the achievement of the Performance Conditions shall be made by the Committee in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.** **Performance Conditions:** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Timing Multiplier</u>. The Timing Multiplier shall be determined based on the timing of a Liquidity Event
using the "Percentage of Award Earned" determined as follows:

---

| | |
|:---|:---|
| **Date of Liquidity Event** | **Percentage of Award<br>Earned** |
|  On or before December 31, 2021 | 200% |
|  On December 31, 2025 | 100% |

---

------

In the event of a Liquidity Event occurring between January 1, 2022 and December 31, 2025, the "Percentage of Award Earned" shall be determined using linear interpolation between the levels set forth above as illustrated by the graph below.

![LOGO](g944307g0724103257904.jpg)

Note: For the avoidance of doubt, as of January 1, 2026, the Timing Multiplier will be inapplicable and the number of Earned RSUs will be determined in accordance with Section 2(d).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Value Multiplier</u>. In the event of a Liquidity Event, the Value Multiplier shall be an independent
multiplier between 100% - 150% which will be applied if the applicable "value change target" set forth below is achieved, recognizing that the "value change target" increases ratably over time. The "value change target"
is the change in stock value of the Company from the Date of Grant ($[_] per share) required to achieve the maximum Value Multiplier of 150%.

---

| | |
|:---|:---|
| **Date of Liquidity Event** | **Value Change Target** |
|  On or before December 31, 2021 | 10% |
|  On December 31, 2022 | 15% |
|  On December 31, 2023 | 20% |
|  On December 31, 2024 | 25% |
|  On December 31, 2025 | 30% |

---

The applicable "value change target" will be determined applying linear interpolation based on the timing of Liquidity Event as illustrated by the graph below.

![LOGO](g944307g0724103258177.jpg)

------

Once the applicable "value change target" has been calculated, the performance Value Multiplier will be calculated applying linear interpolation of the actual change in stock value (calculated as the Liquidity Event stock price less the issuance price of $[_] per share) vs. the stated "value change target", each being calculated as illustrated by the example below.

**Illustrative Example of Value Multiplier Calculation:** 

---

| | | |
|:---|:---|:---|
| **Value Multiplier Assumptions (Illustrative Purposes Only)** | **Value Multiplier Assumptions (Illustrative Purposes Only)** |  |
|  Liquidity Event Date | 12/31/2022 |  |
|  Share Price at Issuance | $[_ | ]/share |
|  Applicable "Value Change Target" on 12/31/2022 (%) | 15 | % |
|  Applicable "Value Change Target" on 12/31/2022 ($$) | $[_ | ] |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Share Price at**<br> **Liquidity Event** | **Actual Value<br>Change** | **Actual Value<br>Change** | **Target Value<br>Change ($$)** | **Target Value<br>Change ($$)** | **% Change<br>Achieved** | **Final Value<br>Multiplier** |
|  $[_]/share | $| [_] | $| [_] | 120% | 150% |
|  $[_]/share | $| [_] | $| [_] | 56% | 128% |
|  $[_]/share | $| [_] | $| [_] | 0% | 100% |
| Note: Under no circumstances would the Value Multiplier be more than 150% or less than 100% in the event of an approved Liquidity Event. | Note: Under no circumstances would the Value Multiplier be more than 150% or less than 100% in the event of an approved Liquidity Event. | Note: Under no circumstances would the Value Multiplier be more than 150% or less than 100% in the event of an approved Liquidity Event. | Note: Under no circumstances would the Value Multiplier be more than 150% or less than 100% in the event of an approved Liquidity Event. | Note: Under no circumstances would the Value Multiplier be more than 150% or less than 100% in the event of an approved Liquidity Event. | Note: Under no circumstances would the Value Multiplier be more than 150% or less than 100% in the event of an approved Liquidity Event. | Note: Under no circumstances would the Value Multiplier be more than 150% or less than 100% in the event of an approved Liquidity Event. |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Illustrative Liquidity Event Multiplier Calculation.</u> In the event there is a Liquidity Event on or
before December 31, 2025, the number of Earned RSUs shall be determined by applying the effects of both the Timing Multiplier and the Value Multiplier independently. The below example illustrates the application of the interpolated formulas for
a Liquidity Event under the following assumptions:

---

| | | |
|:---|:---|:---|
| **Liquidity Event Multiplier Assumptions (Illustrative Purposes Only)** | **Liquidity Event Multiplier Assumptions (Illustrative Purposes Only)** |  |
|  Liquidity Event Date | 12/31/2022 |  |
|  Share Price at Issuance | $[_ | ]/share |
|  Share Price at Liquidity Event | $[_ | ]/share |
|  Applicable "Value Change Target" on 12/31/2022 (%) | 15 | % |
|  Applicable "Value Change Target" on 12/31/2022 ($$) | $[_ | ] |
|  Actual "Value Change" achieved on 12/31/2022 ($$) | $[_ | ] |

---

---

| | |
|:---|:---|
| **Liquidity Event Multiplier Example (Illustrative Purposes Only)** | **Liquidity Event Multiplier Example (Illustrative Purposes Only)** |
|  Target Number of RSUs | [_] |
|  Timing Multiplier as applicable for 12/31/2022 | 175% |
|  Value Multiplier as applicable for a $[_] price improvement on 12/31/2022 | 128% |
|  Final Weighted Performance Multiplier | 224% |
|  Final Earned RSUs | [_] |

---

------

For the avoidance of doubt, the Timing Multiplier and the Value Multiplier are independent of each other.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>No Liquidity Event</u>. In the event that there is no Liquidity Event on or before December 31, 2025,
the number of Earned RSUs shall be determined by multiplying (x) the target number of Restricted Stock Units by (y) the "Percentage of Target Award Earned" determined as follows (rounded down to the nearest whole Restricted Stock
Unit):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Value Change of the**<br> **Company as of**<br> **January 1, 2026** | **<0.0%** | **0% - 10%** | **10%** | **20%** | **30%** |
|  **Percentage of Target Award Earned** | 0% | 25% | 50% | 75% | 100% |

---

Note: The Value Change as of January 1, 2026 will be determined by a third-party valuation, to be ordered and completed by February 28, 2026 and any such Earned RSUs will be settled in accordance with Section 3 of the Restricted Stock Unit Agreement no later than March 15, 2026. If a third-party valuation had been completed within the 120-day period preceding January 1, 2026, then the Board may elect to rely on such valuation, if in good faith it is determined that no material changes have occurred that would reasonably alter such valuation. The date the Value Change as of January 1, 2026 is determined by the Committee in accordance with this Section 2(d) is the "<u>Determination Date</u>".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Any Restricted Stock Units that do not become Earned RSUs pursuant to this Section 2 shall be forfeited
for no consideration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.** **Vesting of Earned RSUs:** Provided the Participant has not undergone a Termination at the time of each
applicable vesting date (or event) (each, a " <u>Vesting Date</u> "), the Earned RSUs shall vest as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Vesting by Year** | **Vesting by Year** | **Vesting by Year** | **Vesting by Year** | **Vesting by Year** |
| **Liquidity Event Date** | **2021** | **2022** | **2023** | **2024** | **2025** |
|  **On or before 12/31/2021** | 30.0% | 30.0% | 30.0% | 10.0% |  |
|  **Between 1/1/2022 and 12/31/2022** |  | 30.0% | 30.0% | 30.0% | 10.0% |
|  **Between 1/1/2023 and 12/31/2023** |  |  | 30.0% | 30.0% | 40.0% |
|  **Between 1/1/2024 and 12/31/2024** |  |  |  | 30.0% | 70% |
|  **Between 1/1/2025 and 12/31/2025** |  |  |  |  | 100% |

---

------

The first Vesting Date in the applicable year set forth above will be the closing of the Liquidity Event (the "<u>Initial Vesting Date</u>"). Each subsequent Vesting Date, as applicable, shall occur on the anniversary of the Initial Vesting Date**.** If the number of Earned RSUs is not evenly divisible, then no fractional units shall vest and the installments shall be as equal as possible with the smaller installments vesting first.

If no Liquidity Event occurs on or before December 31, 2025, 100% of the Earned RSUs determined in accordance with Section 2(d) hereof shall vest on the Determination Date.

**4.** **Treatment on Termination.** The following provisions shall govern the treatment of Restricted Stock Units
upon a termination of a Participant's employment with the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to Section 4(b), Section 4(c) and Section 4(d) below, in the event that the
Participant's employment with the Company Group terminates for any reason, (x) any Restricted Stock Units that have not become Earned RSUs and (y) any Earned RSUs that have not vested, in each case, will be forfeited and all of the
Participant's rights under the Restricted Stock Unit Agreement will cease as of the effective date of Termination (the " <u>Termination Date</u> ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Retirement</u>. In the event the Participant's employment with the Company Group is terminated by the
Participant due to Retirement on or prior to December 31, 2025 and a Liquidity Event has not occurred, the Restricted Stock Units shall remain outstanding and eligible to vest on the earlier of (x) a Liquidity Event and (y) the
Determination Date. In the event of a Liquidity Event following such a Retirement, a pro-rated number of Restricted Stock Units equal to (x) the target number of Restricted Stock Units multiplied by
(y) a fraction, the numerator of which is the number of months the Participant is employed prior to Retirement from the Date of Grant and the denominator of which is 60, shall become Earned RSUs and vest on the date of the Liquidity Event. In
the event that no Liquidity Event occurs on or prior to December 31, 2025, a pro-rated number of Restricted Stock Units equal to (x) the number of Restricted Stock Units that would have become Earned
RSUs as calculated pursuant to Section 2(d) had the Participant continued to be employed on such date multiplied by (y) a fraction, the numerator of which is the number of months the Participant is employed prior to Retirement from the
Date of Grant and the denominator of which is 60, shall become Earned RSUs and vest on the Determination Date, which shall be settled at the same time as other Participants but no later than March 15, 2026. In the event the Participant's
employment with the Company Group is terminated by the Participant due to Retirement following a Liquidity Event or December 31, 2025, any then-unvested Earned RSUs, as calculated in connection with the Liquidity Event or Section 2(d)
hereof, as applicable, that otherwise would have vested in

------

the 12 month period following the date of Retirement shall immediately vest upon Retirement and any remaining unvested Earned RSUs shall be forfeited. However, if the Participant serves as a member of the Company's Board of Directors following his or her retirement then such vesting shall continue as if the Participant continues to be employed by the Company Group until the conclusion of such service on the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Without Cause or for Good Reason</u>. In the event the Participant's employment with the Company Group
is terminated (x) by the Company Group without Cause or (y) by the Participant for Good Reason, in each case on or prior to December 31, 2025 and a Liquidity Event has not occurred, a number of Restricted Stock Units equal a pro-rated number of Restricted Stock Units equal to (x) the target number of Restricted Stock Units multiplied by (y) a fraction, the numerator of which is the number of months the Participant is employed
prior to Termination from the Date of Grant plus an additional 12 months (but no greater than 60 months in total) and the denominator of which is 60 shall become Earned RSUs and vest immediately upon such Termination; provided that if a Liquidity
Event occurs within the six month period following such Termination, an additional number of Restricted Stock Units shall become Earned RSUs and vest equal to the number of Restricted Stock Units that would have vested in connection with such
Liquidity Event had the Participant continued to be employed on such date less the number of Restricted Stock Units that vested upon such Termination. In the event the Participant's employment with the Company Group is terminated (x) by
the Company Group without Cause or (y) by the Participant for Good Reason, in each case following a Liquidity Event or December 31, 2025, any then-unvested Earned RSUs, as calculated in connection with the Liquidity Event or
Section 2(d) hereof, as applicable, shall immediately vest upon such Termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Death or Disability</u>. In the event the Participant's employment with the Company Group is terminated
due to the Participant's death or Disability on or prior to December 31, 2025 and a Liquidity Event has not occurred, the target number of Restricted Stock Units shall become Earned RSUs and immediately vest upon such Termination. In the
event the Participant's employment with the Company Group is terminated due to the Participant's death or Disability following a Liquidity Event or December 31, 2025, any then-unvested Earned RSUs, as calculated in connection with the
Liquidity Event or Section 2(d) hereof, as applicable, shall immediately vest upon such Termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>With Cause</u>. In the event the Participant's employment with the Company Group is terminated by the
Company Group with Cause all Restricted Stock Units (whether or not Earned RSUs and whether vested or unvested) shall be immediately forfeited.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>[By the Company at the End of Term of a Participant's Employment Agreement</u>. If the Company Group
elects not to auto-renew the Participant's employment agreement, by providing the 90-day notice of non-renewal as set forth in the applicable employment agreement,
such non-renewal shall be considered termination by the Company at the end of the term of the employment agreement (an " <u>End of Term Termination</u> "). In the event of an End of Term Termination on
or prior to December 31, 2025 and a Liquidity Event has not occurred, a number of Restricted Stock Units equal to the target number of Restricted Stock Units shall become Earned RSUs and vest immediately upon such Termination. In the event of
an End of Term Termination following a Liquidity Event on or prior to December 31, 2025, any then-unvested Earned RSUs, as calculated in connection with the Liquidity Event, shall immediately vest upon such Termination.]<sup>1</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.** **Tax Withholding.** Unless the Participant otherwise notifies the Company, the tax withholding requirements
of Section 13(d) of the Plan shall be satisfied by having the Company withhold from the shares of Common Stock otherwise issuable to the Participant upon the settlement of the Restricted Stock Units, a number of shares of Common Stock with an
aggregate Fair Market Value equal to an amount not in excess of such minimum statutorily required withholding liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.** **Put Right.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event the Participant's employment is terminated by the Company without Cause, [by the Company by
an End of Term Termination, ]<sup>2</sup>by the Participant for Good Reason or due to the Participant's death or Disability, the Participant shall have the right, for 90 days following the later of
(x) the Termination Date or (y) the date that is six months following settlement of the Restricted Stock Units, to sell to the Company, and the Company shall be required to purchase, on one occasion from the Participant, all (but not less
than all) of the shares of Common Stock acquired upon settlement of the Restricted Stock Units granted hereunder held by the Participant by delivering written notice to the Company within such 90 day period (such notice, the " <u>Put Notice</u> ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event of the Participant's qualifying Retirement, the Participant shall have the right, for 90 days
following the later of (x) the six month anniversary of the retirement date or (y) the date that is six months following settlement of the Restricted Stock Units, to sell to the Company, and the Company shall be required to purchase, on
one occasion from the Participant, all (but not less than all) of the shares of Common Stock acquired upon settlement of the Restricted Stock Units granted hereunder held by the Participant by delivering a Put Notice to the Company within such 90
day period. However, if the Participant serves as a member of the Company's Board of Directors following his or her retirement then such period to exercise the put right shall not commence until the later of (x) the six month anniversary
of the conclusion of such service on the Board of Directors or (y) the date that is six months following settlement of the Restricted Stock Units.

<sup>1</sup> To be included for Participants with Employment Agreements only.

<sup>2</sup> To be included for Participants with Employment Agreements only.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Upon the exercise of the put right pursuant to Section 6(a) or 6(b), the closing of the purchase shall
take place at the principal office of the Company on a date specified by the Company no later than the 30th day after the giving of the Put Notice (the " <u>Repurchase Date</u> "). The purchase price per share of Common Stock shall be equal
to Fair Market Value on the Repurchase Date, as determined by the Board relying on a third-party valuation completed no more than 120 days before the Repurchase Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding anything to the contrary contained herein, the Company shall not be obligated to purchase any
shares at any time pursuant to this Section 6, regardless of whether it has received a Put Notice, (i) to the extent that the purchase of such shares or the payment to the Company of a cash dividend or distribution by a Subsidiary of the
Company to fund such purchase (together with any other purchases of shares pursuant to this Section 6 or pursuant to similar provisions in agreements with other employees, service providers or equityholders, as applicable, of the Company and
its Subsidiaries of which the Company has at such time been given notice and together with cash dividends and distributions to fund such other purchases) would result in (A) a violation of any law, statute, rule, regulation, policy, order,
writ, injunction, decree or judgment promulgated or entered by any federal, state, local or foreign court or governmental authority applicable to the Company or any of its Subsidiaries or any of its or their property or (B) after giving effect
thereto, a Financing Default, (ii) if immediately prior to such purchase there exists a Financing Default which prohibits such purchase, or (iii) to the extent that, in the judgment of the Board, there is a lack of available cash on hand
of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding anything to the contrary contained herein, any shares which the Company is required to
purchase, but which in accordance with Section 6(d) is not purchased at the applicable time provided in this Section 6, shall be purchased by the Company (x) by delivery of a promissory note (which shall be subordinated and subject in
right of payment to the prior payment of any debt outstanding under the senior financing agreements and any modifications, renewals, extensions, replacements and refunding of all such indebtedness) for the applicable purchase price payable within 30
days following such time as would not result in a Financing Default, bearing interest at the prime lending rate in effect as of the date of the exercise of the call right or at the Applicable Federal Rate at such time, if greater; or (y) if
purchase by delivery of a promissory note as described in clause (x) is not permitted due to the terms of any outstanding Company indebtedness, or otherwise, then, for the applicable purchase price (measured as of the actual purchase date) on
or prior to the fifteenth (15th) day after such date or dates that the purchase of such shares are no longer prohibited under Section 6(d) and the Company shall give Participant five (5) days' prior notice of any such purchase.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If at any time the Company is required to purchase shares pursuant to this Section 6, unless otherwise
provided for herein, the Company shall pay the purchase price for the shares it purchases (i) first, by the cancellation of any indebtedness owing from the Participant to the Company or any of its Subsidiaries, if any, and (ii) then, by
the Company's delivery of a check or wire transfer of immediately available funds for the remainder of the purchase price, if any, against delivery of the certificates or other instruments representing the shares so purchased, duly endorsed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.** **Definitions.** The following terms have the following meanings for purposes of this Grant Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) " <u>Financing Default</u> " means an event which would constitute (or with notice or lapse of time or
both would constitute) an event of default under any of the financing documents of the Company or its Affiliates from time to time and any restrictive financial covenants contained in the organizational documents of the Company or its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) " <u>Good Reason</u> " has the meaning set forth in the Participant's employment agreement with a
member of the Company Group then in effect or, if the Participant does not have an employment agreement or "Good Reason" is not defined therein, "Good Reason" means (i) a material diminution of the Participant's duties
and responsibilities or (ii) a change in the principal location at which the Participant must perform the Participant's services by at least forty (40) miles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) " <u>Liquidity Event</u> " means any Board approved strategic transaction, authorized or approved by
shareholders that results in any of a Change in Control, an initial public offering, direct listing, SPAC, or other acquisition, purchase, merger, consolidation, combination, or similar transaction that the Committee in its sole discretion deems to
be a Liquidity Event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) " <u>Retirement</u> " shall have the meaning determined by the Committee from time to time in its
discretion.

[Signatures to appear on following page]

------

**THE UNDERSIGNED PARTICIPANT ACKNOWLEDGES RECEIPT OF THIS RESTRICTED STOCK UNIT GRANT NOTICE, THE RESTRICTED STOCK UNIT AGREEMENT AND THE PLAN, AND, AS AN EXPRESS CONDITION TO THE GRANT OF RESTRICTED STOCK UNITS HEREUNDER, AGREES TO BE BOUND BY THE TERMS OF THIS RESTRICTED STOCK UNIT GRANT NOTICE, THE RESTRICTED STOCK UNIT AGREEMENT AND THE PLAN.** 

---

| |
|:---|
| REPUBLIC AIRWAYS HOLDINGS INC. |
| By: |
| Title: |
| PARTICIPANT<sup>3</sup> |

---

<sup>3</sup> To the extent that the Company has established, either itself or through a third-party plan administrator, the ability to accept this award electronically, such acceptance shall constitute the Participant's signature hereof.

[*Signature Page to Restricted Stock Unit Award*]

------

**RESTRICTED STOCK UNIT AGREEMENT** 

**UNDER THE** 

**REPUBLIC AIRWAYS HOLDINGS INC.** 

**2020 OMNIBUS INCENTIVE PLAN** 

Pursuant to the Restricted Stock Unit Grant Notice (the "<u>Grant Notice</u>") delivered to the Participant (as defined in the Grant Notice), and subject to the terms of this Restricted Stock Unit Agreement (this "<u>Restricted Stock Unit Agreement</u>") and the Republic Airways Holdings Inc. 2020 Omnibus Incentive Plan, as it may be amended and restated from time to time (the "<u>Plan</u>"), Republic Airways Holdings Inc. (the "<u>Company</u>") and the Participant agree as follows. Capitalized terms not otherwise defined herein shall have the same meaning as set forth in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **<u>Grant of Restricted Stock Units</u>.** Subject to the terms and conditions set forth herein and in the Plan, the Company hereby grants to the Participant the number of Restricted Stock Units provided in the Grant Notice. The Company may make one or more additional grants of Restricted Stock Units to the Participant under this Restricted Stock Unit Agreement by providing the Participant with a new Grant Notice, which may also include any terms and conditions differing from this Restricted Stock Unit Agreement to the extent provided therein. The Company reserves all rights with respect to the granting of additional Restricted Stock Units hereunder and makes no implied promise to grant additional Restricted Stock Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **<u>Vesting</u>**. Subject to the conditions contained herein and in the Plan, the Restricted Stock Units shall vest and the restrictions on such Restricted Stock Units shall lapse as provided in the Grant Notice. With respect to any Restricted Stock Unit, the period of time that commences on the Date of Grant and ends on the applicable Vesting Date, or, if earlier, the date of any Termination that results in vesting of such Restricted Stock Unit, shall be its Restricted Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **<u>Settlement of Restricted Stock Units</u>.** The provisions of Section 9(d)(ii) of the Plan are incorporated herein by reference and made a part hereof; *provided*, *however*, that in no event will settlement of the Restricted Stock Units occur more than two and one-half (2 <sup>1</sup>⁄<sub>2</sub>) months following the expiration of the Restricted Period and such vested Restricted Stock Unit will be cancelled upon settlement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.  **<u>Company; Participant</u>** .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The term "Company" or "Company Group" as used in this Restricted Stock Unit Agreement with reference to employment or service shall include the Company and its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Whenever the word "Participant" is used in any provision of this Restricted Stock Unit Agreement under circumstances where the provision should logically be construed to apply to the executors, the administrators, or the person or persons to whom the Restricted Stock Units may be transferred by will or by the laws of descent and distribution, the word "Participant" shall be deemed to include such person or persons.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **<u>Non-Transferability</u>**. The Restricted Stock Units are not transferable by the Participant, other than in accordance with Section 13(b) of the Plan. Except as otherwise provided herein, no assignment or transfer of the Restricted Stock Units, or of the rights represented thereby, whether voluntary or involuntary, by operation of law or otherwise, shall vest in the assignee or transferee any interest or right herein whatsoever, but immediately upon such assignment or transfer the Restricted Stock Units shall terminate and become of no further effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **<u>Rights as Stockholder; Dividend Equivalents</u>**. The Participant or a Permitted Transferee of the Restricted Stock Units shall have no rights as a stockholder with respect to any share of Common Stock underlying a Restricted Stock Unit (including no rights with respect to voting or to receive any dividends or dividend equivalents) unless and until the Participant or the Permitted Transferee shall have become the holder of record or the beneficial owner of such Common Stock. The Restricted Stock Units shall be entitled to be credited with dividend equivalent payments in accordance with the provisions of Section 13(c)(iii) of the Plan, which are incorporated herein by reference and made a part hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **<u>Tax Withholding</u>**. The provisions of Section 13(d) of the Plan are incorporated herein by reference and made a part hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **<u>Notice</u>**. Every notice or other communication relating to this Restricted Stock Unit Agreement between the Company and the Participant shall be in writing, and shall be mailed to or delivered to the party for whom it is intended at such address as may from time to time be designated by such party in a notice mailed or delivered to the other party as herein provided; *provided*, that unless and until some other address be so designated, all notices or communications by the Participant to the Company shall be mailed or delivered to the Company at its principal executive office, to the attention of the Company's General Counsel, and all notices or communications by the Company to the Participant may be given to the Participant personally or may be mailed to the Participant at the Participant's last known address, as reflected in the Company's records. Notwithstanding the above, all notices and communications between the Participant and any third-party plan administrator shall be mailed, delivered, transmitted or sent in accordance with the procedures established by such third-party plan administrator and communicated to the Participant from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **<u>No Right to Continued Service</u>**. This Restricted Stock Unit Agreement does not confer upon the Participant any right to continue as an employee or service provider to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. **<u>Binding Effect</u>**. This Restricted Stock Unit Agreement shall be binding upon the heirs, executors, administrators and successors of the parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. **<u>Waiver and Amendments</u>**. Except as otherwise set forth in Section 12 of the Plan, any waiver, alteration, amendment or modification of any of the terms of this Restricted Stock Unit Agreement shall be valid only if made in writing and signed by the parties hereto; *provided, however*, that any such waiver, alteration, amendment or modification is consented to on the Company's behalf by the Committee. No waiver by either of the parties hereto of their rights hereunder shall be deemed to constitute a waiver with respect to any subsequent occurrences or transactions hereunder unless such waiver specifically states that it is to be construed as a continuing waiver.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. **<u>Clawback/Repayment</u>**. All Restricted Stock Units shall be subject to reduction, cancellation, forfeiture or recoupment to the extent necessary to comply with (i) any clawback, forfeiture or other similar policy adopted by the Board or the Committee and as in effect from time to time and (ii) applicable law. Further, unless otherwise determined by the Committee, to the extent that the Participant receives any amount in excess of the amount that the Participant should otherwise have received under the terms of the Grant Notice or Restricted Stock Unit Agreement for any reason (including, without limitation, by reason of a financial restatement, mistake in calculations or other administrative error), the Participant shall be required to repay any such excess amount to the Company. Without limiting the foregoing, all Restricted Stock Units shall be subject to reduction, cancellation, forfeiture or recoupment to the extent necessary to comply with applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. **<u>Detrimental Activity</u>**. Notwithstanding anything to the contrary contained herein, if a Participant has engaged in any Detrimental Activity, as determined by the Committee, the Committee may, in its sole discretion, provide for one or more of the following: (i) cancellation of any or all of such Participant's outstanding Restricted Stock Units or (ii) forfeiture by the Participant of any gain realized on the vesting or settlement of Restricted Stock Units, and repayment of any such gain promptly to the Company. "<u>Detrimental Activity</u>" means any of the following: (i) unauthorized disclosure of any confidential or proprietary information of any member of the Company Group; (ii) any activity that would be grounds to terminate the Participant's employment or service with the Service Recipient for Cause; (iii) a breach by the Participant of any restrictive covenant by which such Participant is bound, including, without limitation, any covenant not to compete or not to solicit, in any agreement with any member of the Company Group, or (iv) fraud or conduct contributing to any financial restatements or irregularities, as determined by the Committee in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. **<u>Governing Law</u>**. This Restricted Stock Unit Agreement shall be construed and interpreted in accordance with the laws of the State of Delaware, without regard to the principles of conflicts of law thereof. Notwithstanding anything contained in this Restricted Stock Unit Agreement, the Grant Notice or the Plan to the contrary, if any suit or claim is instituted by the Participant or the Company relating to this Restricted Stock Unit Agreement, the Grant Notice or the Plan, the Participant hereby submits to the exclusive jurisdiction of and venue in the courts of Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. **<u>Plan</u>**. The terms and provisions of the Plan are incorporated herein by reference. In the event of a conflict or inconsistency between the terms and provisions of the Plan and the provisions of this Restricted Stock Unit Agreement (including the Grant Notice), the Plan shall govern and control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. **<u>Section</u> <u>409A</u>**. This Restricted Stock Unit Agreement is intended to comply with the provisions of Section 409A of the Code and the regulations promulgated thereunder, and shall be interpreted consistent with such intent. Without limiting the foregoing, the Committee will have the right to amend the terms and conditions of this Restricted Stock Unit Agreement in any respect as may be necessary or appropriate to comply with Section 409A of the Code or any regulations promulgated thereunder, including without limitation by delaying the issuance of the shares of Common Stock contemplated hereunder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. **<u>Vesting Delay</u>**. The Participant and the Company agree that if the Company determines in its sole discretion that it is necessary or advisable to delay vesting and/or settlement of any Earned RSUs to comply with the Coronavirus Aid, Relief and Economic Security Act or other similar law, rule or regulation (the "<u>CARES Act</u>"), such vesting and/or settlement shall be delayed until the first day such vesting and/or settlement is no longer prohibited.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. **<u>Cutback</u>**. In the event that the number of Treasury Warrant Shares issuable increases as a result of additional loans granted to the Company or its subsidiaries pursuant to the CARES Act such that the total number of shares of Common Stock underlying all Awards granted under the Plan exceeds the Absolute Share Limit (which shall not apply if Shareholders approve additional shares to further participate in subsequent government programs), the Participant agrees that the Participant's target number of Restricted Stock Units shall be reduced downward on a pro rata basis alongside all other Participants so that the total number of shares of Common Stock issuable under all Awards is no more than the Absolute Share Limit. Other than as determined by the Committee in its sole discretion, there shall be no recourse or consideration paid for any cutback pursuant to this Section 18.

## Exhibit 10.22

**Exhibit 10.22.1** 

**SECOND AMENDED AND RESTATED** 

**<u>EMPLOYMENT AGREEMENT</u>**

THIS SECOND AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this "Agreement") is made and entered into as of February 8, 2017, by and between REPUBLIC AIRWAYS HOLDINGS INC., a Delaware corporation (the "Company"), and JOSEPH P. ALLMAN (the "Executive").

**RECITALS** 

WHEREAS, the Executive and the Company are parties to the Amended and Restated Employment Agreement dated as of November 24, 2015 (the "Prior Agreement"); and

WHEREAS this Agreement shall become effective upon the Effective Date of the Company's Plan of Reorganization; and

WHEREAS, the Company and the Executive desire to amend certain provisions of the Prior Agreement and to enter into this Agreement.

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants hereinafter set forth and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Employment</u>. The Company agrees to continue to employ the Executive, and the Executive agrees to render his services to the Company, as its Senior Vice President, Chief Financial Officer, during the Term (as defined below). In connection with his employment as Senior Vice President, Chief Financial Officer, the Executive shall serve without additional payment or compensation of any kind as an officer of any other direct or indirect subsidiary or affiliate of the Company designated by the Company's Chief Executive Officer (collectively, the "Subsidiaries"). The Executive shall render his services at the direction of the Company's Chief Executive Officer at the Company's offices in Indianapolis, Indiana. The Executive agrees to use his best efforts to promote and further the business, reputation and good name of the Company and the Subsidiaries (collectively, the "Company Group") and the Executive shall promptly and faithfully comply with all instructions, directions, requests, rules and regulations made or issued from time to time by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Term</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Unless earlier terminated by the Executive's death or Disability (as defined below), the term of the Executive's employment pursuant to this Agreement (the "Term") shall continue until November 30, 2018 and shall be automatically renewed for successive one-year periods thereafter unless either party shall have given notice to terminate the Executive's employment no later than ninety (90) days prior to the end of the then current Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding the foregoing, the Executive's employment may be terminated by the Company or by the Executive as provided in <u>Section</u> <u>4</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Compensation and Benefits</u>. As full and complete compensation for all the Executive's services hereunder, during the Term the Company shall pay the Executive the compensation and provide the Executive with the benefits described below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Base Salary</u>. During the Term, the Company shall pay the Executive an annual base salary of $260,000 ("Base Salary"). The Board shall review the Executive's Base Salary each year and shall have the right in its discretion to increase such Base Salary. With the Executive's prior consent, the Executive's Base Salary may be reduced by an amount and for a period mutually agreed between the Executive and the Company so long as such reduction is made in conjunction with similar reductions in base salary for other executives or employees of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Annual Incentive Plan</u>. In addition to the Base Salary, during the Term, the Executive will have an annual incentive opportunity target equal to 75% of the Executive's Base Salary for the year under the Company's Annual Incentive Plan ("AIP"). Collectively any amounts earned under the AIP and earned under the KEIP (as defined below) shall make up the Executive's annual incentive compensation ("Bonus"). The amount of the AIP for any year may be more or less than the target amount, but not more than 150% of the Executive's Base Salary for the year, and will be determined, in its sole discretion, by the Compensation Committee based upon certain performance measures which shall be approved by the Compensation Committee in its discretion and communicated to the Executive for 2017 by not later than 90 days following the Effective Date of the Company's Plan of Reorganization and each February during the Term thereafter. The earned Bonus for each prior year will be determined and paid by March 15 of the following year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Discretionary Bonus</u>. The Executive may also be awarded one or more discretionary bonuses based on his individual performance or other factors as may be determined by the Compensation Committee in its sole discretion from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Long-Term Incentive Awards</u>. The Executive shall be entitled to receive long-term incentive awards under the Company's Equity Incentive Plan ("EIP"), which is to be approved and implemented by the Board of Directors, and as may be amended from time to time, including, without limitation, options, restricted stock, restricted stock units, stock appreciation rights, performance shares or other awards, at such times, in such forms and in such amounts as may be determined by the Compensation Committee from time to time. The terms of any such awards shall be governed by the EIP and any applicable award agreement related thereto entered into between the Company and the Executive, except as otherwise provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Transitional Long-Term Incentive</u>. In the absence of an EIP as of January 1, 2017, the Executive shall be eligible to receive a cash incentive under the Company's Transitional Long-Term Incentive Plan (the "T-LTI") for calendar year 2017 to be approved and implemented by the Board of Directors. The T-LTI will be awarded in 2017, but vest and become payable as follows: (i) 1/3<sup>rd</sup> on February 1, 2018, (ii) 1/3<sup>rd</sup> on February 1, 2019, (iii) and 1/3<sup>rd</sup> on February 1, 2020 (each a "T-LTI Payment Date"). The range of possible T-LTI performance awards payments for any T-LTI Payment Date shall be established by the Compensation Committee. The amount actually earned by the Executive, if any, will be subject to, and determined based upon, achievement of certain performance measures, which shall be established and measured by the Compensation Committee.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Medical</u> <u>& 401K Benefits</u>. The Executive shall be entitled to participate in any retirement, 401K, disability, medical, pension, profit sharing, group insurance, or any other plan or arrangement, or in any other benefits now or hereafter generally available to executives of the Company, in each case to the extent that the Executive shall be eligible under the general provisions thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Annual Physical</u>. The Company will arrange and pay for an annual physical of the Executive to be performed at the Indiana University Medical Center, or other facility chosen by the Executive once per year during the Term. The Executive acknowledges that this is a taxable benefit, and he authorizes the Company to take any required tax withholding (as reasonably determined by the Company) on account of such benefit from his other wages.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Vacation</u>. The Executive shall be entitled to vacation in accordance with Company policy, which vacation shall be taken on dates to be selected by mutual agreement of the Company and the Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Reimbursement for Expenses</u>. The Executive shall be entitled to reimbursement for ordinary and necessary business expenses incurred by the Executive in the course of his employment in accordance with the Company's policies from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Termination of Employment</u>. The Executive's employment hereunder may be terminated during the Term in accordance with this <u>Section</u> <u>4</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Death</u>. In the event the Executive dies during the Term, the Executive's employment shall automatically terminate on the date of death. In such event, the Executive's estate shall be entitled to receive his Base Salary and a prorated portion of his target Bonus for the year in which termination occurs, in each case through the effective date of the termination of his employment, <u>plus</u> severance compensation provided for in <u>Section</u> <u>5(a)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Disability</u>. The Company, by written notice to the Executive, may immediately terminate the Executive's employment in the event of the Executive's Disability. As used herein, "Disability" shall mean the Executive's inability, with reasonable accommodation, to perform the essential functions of his position, by reason of physical or mental incapacity, for a consecutive period of 90 days or for a total period of 180 days in any 360-day period. In the event the Executive's employment is terminated due to the Executive's Disability, the Executive shall be entitled to receive his Base Salary and a prorated portion of his target Bonus for the year in which termination occurs, in each case through the effective date of the termination of his employment, <u>plus</u> the severance compensation provided for in <u>Section</u> <u>5(a)</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Termination for Cause by the Company</u>. The Company, by written notice to the Executive, may immediately terminate the Executive's employment for Cause. As used herein, a termination by the Company "for Cause" shall mean that a good faith determination by the Chief Executive Officer that the Executive has (i) willfully refused to perform a material part of his duties hereunder, (ii) willfully failed to follow the direction of the Chief Executive Officer, (iii) materially breached the provisions of <u>Sections</u> <u>7</u>, <u>8</u> or <u>9</u> hereof, (iv) acted fraudulently or dishonestly in his relations with the Company, (v) committed larceny, embezzlement, conversion or any other act involving the misappropriation of Company funds or assets in the course of his employment, or (vi) been indicted or convicted of any felony or other crime involving an act of moral turpitude. In the event the Executive's employment is terminated for Cause, the Executive shall be entitled to receive only his Base Salary through the effective date of the termination of his employment, and shall not be entitled to receive any severance compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Termination other than for Cause by the Company</u>. The Company, by written notice to the Executive, may terminate the Executive's employment other than for Cause, effective as of the date specified by the Company in the notice, which date shall not be earlier than the date of the notice. In such event, the Executive shall be entitled to receive his Base Salary and a prorated portion of his target Bonus for the year in which termination occurs, in each case through the effective date of the termination of his employment, <u>plus</u> the severance compensation provided for in <u>Section</u> <u>5(b)</u> or <u>Section</u> <u>5(c)</u>, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Termination for Good Reason by the Executive</u>. The Executive, by providing at least 30 days prior written notice to the Company, may terminate his employment hereunder for Good Reason, provided that the Company shall have the right to cure such Good Reason within such 30-day period. In order to constitute a valid notice of a termination for Good Reason, the notice must be received by the Board of Directors or Chief Executive Officer of the Company no later than 60 days following the initial occurrence of any event asserted to constitute Good Reason. As used herein, a termination by the Executive "for Good Reason" shall mean that (i) the Company has failed to establish a reasonable and market based EIP or other long-term incentive award program by November 15, 2017; (ii) the Company has materially diminished the duties or responsibilities of the Executive with respect to the Company; (iii) the Company has reduced the Executive's Base Salary or Bonus opportunity; (iv) the Company has changed the principal location at which the Executive must perform his services to a location more than 25 miles from the current location of the Company's headquarters in Indianapolis, Indiana without the consent of the Executive; or (v) the Company has materially breached the terms of this Agreement. In the event the Executive's employment is terminated for Good Reason, the Executive shall be entitled to receive his Base Salary and a prorated portion of his target Bonus for the year in which termination occurs, in each case through the effective date of the termination of his employment, <u>plus</u> the severance compensation provided for in <u>Section</u> <u>5(b)</u> or <u>Section</u> <u>5(c)</u>, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Termination other than for Good Reason by the Executive</u>. The Executive, by providing at least 60 days prior written notice to the Company, may terminate his employment other than for Good Reason. In such event, the Executive shall be entitled to receive only his Base Salary through the effective date of the termination of his employment and shall not be entitled to receive any severance compensation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Impact of Termination for Cause or without Good Reason on Equity Awards</u>. If the Executive's employment is terminated (i) by the Company for Cause, or (ii) by the Executive other than for Good Reason, all options to purchase shares of the Company's common stock and other equity awards held by the Executive on the effective date of termination that have not vested as of such date shall terminate immediately following the termination of the Executive's employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Timing of Payments</u>. The payment of any amounts due to the Executive pursuant to this <u>Section</u> <u>4</u> (other than severance compensation, if any, which shall be paid as provided in <u>Section</u> <u>5</u>) shall be paid no later than the next regular payroll date following the effective date of the termination of the Executive's employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Severance Compensation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Termination Upon Death or Disability</u>. In the event of the Executive's death or in the event the Company terminates the Executive's employment as a result of the Executive's Disability, the Company shall pay to the Executive or his estate, as the case may be, as severance compensation an amount equal to two times the Executive's Base Salary as then in effect, <u>plus</u> two times the Executive's Bonus for the last calendar year preceding the year in which his death or termination on account of Disability occurs. This severance compensation shall be paid in a lump sum on the first day of the month occurring at least thirty days following the effective date of the termination of employment, provided that the Company has received a release following termination of employment signed by the Executive or his personal representative, substantially in the form attached hereto as <u>Exhibit A</u>, and that such release is no longer revocable on the payment date. In addition, any options to purchase shares of the Company's common stock, and any awards of restricted stock, restricted stock units or performance shares, in each case that are held by the Executive on the effective date of termination and have not vested shall be treated in the same manner as provided therefor in <u>Section</u> <u>5(b)</u>. The Executive agrees that the Company may satisfy its obligations to provide cash severance compensation pursuant to this <u>Section</u> <u>5(a)</u> by purchasing and maintaining one or more insurance policies payable to either the Executive or his designees or to the Company (with or without further payment to the Executive or such designees) upon the Executive's death or as a result of the Executive's Disability; provided that the proceeds of such insurance shall be payable to the Executive on the date set forth herein. The Executive agrees to cooperate with the Company in obtaining such insurance, including by participating in such physical examinations and providing such personal information as may be reasonably requested by the Company's insurers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Termination by the Company Without Cause or by the Executive for Good Reason</u>. If the Executive's employment is terminated by the Company other than for Cause, or by the Executive for Good Reason, in either case prior to a Change of Control (as defined herein), and provided that the Company has received a release following termination of employment signed by the Executive or his personal representative, substantially in the form attached hereto as <u>Exhibit A,</u> and that such release is no longer revocable on the first payment date:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Company shall pay to the Executive as severance compensation an amount equal to two times the Executive's Base Salary as then in effect <u>plus</u> two times the Executive's Bonus earned for the Company's last calendar year. This severance compensation shall be paid in 12 equal monthly installments following a qualifying event, with the first payment payable on the first regular payroll date occurring in the calendar month following the date of the Executive's termination of employment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if any amounts remain due to the Executive from the Key Employee Incentive Program ("KEIP") established in 2016, such outstanding awards shall immediately be paid in a lump sum within 14 days following the termination of the Executive;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in addition to the amounts paid according to Sections 5(b)(i—ii), the aggregate value of all outstanding unvested long-term incentive awards (including any T-LTI or EIP) held by the Executive that would have vested in accordance with their terms prior to the first anniversary of the effective date of termination shall vest on the effective date of Executive's termination and, be calculated based on performance factors that may already have been achieved, or may reasonably be assumed to be achieved and calculable at the time of termination, and be paid in a lump sum within 14 days following the termination of the Executive;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) with respect to any outstanding unvested options to purchase shares of the Company's common stock held by the Executive that vest in accordance with Section 5(b)(iii), such options shall remain exercisable for a period of one year following such effective date (but in no event beyond the term of the option); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the Executive shall be entitled to receive, at the time when a payout with respect to any performance shares held by the Executive on the effective date of termination would otherwise have been made, a pro-rata portion (based on the number of days during the applicable performance period on which the Executive was employed) of the number of such performance shares that would have been earned by the Executive in accordance with the terms thereof (including the satisfaction of the performance conditions related thereto based on the Company's actual performance) if the Executive had been employed on the date required to earn such shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Termination following a Change of Control</u>. If the Executive's employment is terminated by the Company other than for Cause, or by the Executive for Good Reason, in either case within 18 months after a Change of Control, and provided that the Company has received a release following termination of employment signed by the Executive or his personal representative, substantially in the form attached hereto as <u>Exhibit A</u>, and that such release is no longer revocable on the payment date:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Company shall pay to the Executive as severance compensation an amount equal to two times the Executive's Base Salary as then in effect <u>plus</u> two times the Executive's Bonus earned for the Company's last calendar year. This severance compensation shall be paid in a lump sum on the first day of the month occurring at least 30 days following the effective date of the termination of employment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if any amounts remain due to the Executive from the KEIP established in 2016, such outstanding awards shall immediately be paid in a lump sum within 14 days following the termination of the Executive;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in addition to the amounts paid according to Sections 5(c)(i—ii), the aggregate value of all outstanding unvested long-term incentive awards (including any T-LTI or EIP) held by the Executive shall vest on the effective date of Executive's termination and, calculated based on performance factors that may already have been achieved, or may reasonably be assumed to be achieved and calculable at the time of termination, and be paid in a lump sum within 14 days following the termination of the Executive;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) with respect to any outstanding unvested options to purchase shares of the Company's common stock held by the Executive that vest in accordance with Section 5(c)(iii), such options shall remain exercisable for a period of 90 days following the effective date of such termination; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the Executive shall be entitled to receive, at the time when the severance compensation provided for in clause (i) of this <u>Section</u> <u>5(c)</u> is paid, a pro rata portion (based on the number of days during the applicable performance period on which the Executive was employed) of the number of such performance shares that would have been earned by the Executive if the performance conditions related thereto were satisfied at the target level for such awards and the Executive had been employed on the date required to earn such shares.

As used herein, "Change of Control" shall mean the occurrence, after the date hereof of any of the following: (1) the acquisition by any person or group of affiliated or associated persons of a majority or more of the voting power of the Company; (2) the consummation of a sale of all or substantially all of the assets of the Company; (3) the dissolution of the Company; or (4) the consummation of any merger, consolidation, or reorganization involving the Company in which, immediately after giving effect to such merger, consolidation or reorganization, less than majority of the total voting power of outstanding stock of the surviving or resulting entity is then "beneficially owned" (within the meaning of Rule 13d-3 under the Securities Exchange Act of 1934, as amended) in the aggregate by the stockholders of the Company immediately prior to such merger, consolidation or reorganization. Notwithstanding the preceding provisions, an event or series of events shall not constitute a "Change of Control" unless it is a change in the ownership or effective control of the corporation, or in the ownership of a substantial portion of the assets of the corporation, within the meaning of Code Section 409A(a)(2)(A)(v) and the regulations thereunder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Termination by the Executive or the Company at End of Term</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If either the Executive or the Company gives notice to terminate the Executive's employment at the end of the then-current Term pursuant to <u>Section</u> <u>2(a)</u> and the Executive and the Company do not reach agreement regarding the terms of the Executive's continued employment following the end of the Term, unless otherwise agreed by the Company in writing, the Executive shall continue to be employed and to provide services to the Company in the same manner as prior to the giving of such notice for an additional period of 90 days following the last day of the Term (the "Transition Period"). Unless terminated earlier as provided in this Agreement, the Executive's employment shall terminate at the end of the Transition Period. The Executive's duties during this period shall also include those things that are reasonably necessary to assure a smooth transition of the Executive's duties to his successor or to such other persons as the Company may determine and any diminution of the Executive's duties during this period shall not constitute Good Reason under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) During the Transition Period, the Executive shall (A) be entitled to continue to receive his Base Salary and shall continue to accrue a pro-rata portion of his target Bonus, in each case as in effect at the end of the Term and for the period of his continued employment, (B) shall continue to participate in the Company's benefit programs described in <u>Section</u> <u>3(f)</u>, and (C) shall continue to be reimbursed for business expenses as provided in <u>Section</u> <u>3(i)</u>. Except as provided in <u>Section</u> <u>5(d)(iii)</u>, the Executive shall not be entitled to any severance compensation as a result of the termination of his employment during or at the end of the Transition Period. Outstanding equity awards held by the Executive shall continue to be outstanding, shall continue to vest and may be exercised in accordance with their terms, and shall otherwise be unaffected while the Executive is employed during the Transition Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Notwithstanding anything in this <u>Section</u> <u>5</u> to the contrary, upon the earlier of (A) the termination of the Executive's employment upon completion of the Transition Period, or (B) the termination of the Executive's employment by the Company during the Transition Period other than for Cause, and provided that the Company has received a release following termination of employment signed by the Executive or his personal representative, substantially in the form attached hereto as <u>Exhibit A</u>, and that such release is no longer revocable on the first payment date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the Executive shall be entitled to receive from the Company an amount equal to his Base Salary and a prorated portion of his target Bonus for the year in which termination occurs, in each case through the effective date of the termination of his employment, together with any Bonus related to a prior year that has been fully earned by the Executive but not paid to him as of the date of termination, which amount shall be paid no later than the next regular payroll date following the effective date of the termination of the Executive's employment;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Executive shall be entitled to receive severance compensation in an amount equal to one times the Executive's Base Salary as in effect at the end of the Term, which amount shall be paid in 12 equal monthly installments following the effective date of termination, with the first payment payable on the first regular payroll date occurring in the calendar month following the effective date of termination of the Executive's employment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) if any amounts remain due to the Executive from the KEIP established in 2016, such outstanding awards shall immediately be paid in a lump sum within 14 days following the termination of the Executive;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) if termination under Section 5(d) is a result of a termination initiated by the Company, in addition to the amounts paid according to Sections 5(d), the aggregate value of all outstanding unvested long-term incentive awards (including any T-LTI or EIP) held by the Executive on the effective date of termination of the Executive's employment shall vest on such effective date and, calculated based on performance factors that may already have been achieved, or may reasonably be assumed to be achieved and calculable at the time of termination, and be paid in a lump sum within 14 days following the termination of the Executive; however if termination under Section 5(d) is a result of a termination initiated by the Executive, in addition to the amounts paid according to Sections 5(d), the aggregate value of all outstanding unvested long-term incentive awards (including any T-LTI or EIP) held by the Executive that would have vested in accordance with their terms prior to the first anniversary of the effective date of termination shall vest on the effective date of Executive's termination and, calculated based on performance factors that may already have been achieved, or may reasonably be assumed to be achieved and calculable at the time of termination, and be paid in a lump sum within 14 days following the termination of the Executive; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) the Executive shall be entitled to receive, at the time when a payout with respect to any performance shares held by the Executive on the effective date of termination would otherwise have been made, a pro-rata portion (based on the number of days during the applicable performance period on which the Executive was employed) of the number of such performance shares that would have been earned by the Executive in accordance with the terms thereof (including the satisfaction of the performance conditions related thereto based on the Company's actual performance) if the Executive had been employed on the date required to earn such shares.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Continuation of Benefits</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Medical Benefits</u>. Upon termination of the Executive's employment for any reason, voluntary or involuntary, with or without Cause, the Company shall pay the Executive $2,500 each month for a period of 24 months following the effective date of the termination of the Executive's employment for the cost of health insurance from a source other than the Company, for himself, his spouse and his eligible dependents, provided that the Executive presents evidence of such insurance to the Company. The Company will begin the monthly payments to the Executive 30 days after the termination of the Executive's employment and thereafter on the 15th day of each subsequent month during the 24-month period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Travel Privileges</u>. Upon termination of the Executive's employment for any reason, voluntary or involuntary, with or without Cause, the Company shall provide the Executive for a period 36 months following the effective date of the termination of the Executive's employment a Universal Air Travel Plan, Inc. (UATP) card in the amount of $10,000 annually that the Executive, his spouse and his dependents can use for travel. The Executive shall be responsible for any applicable tax withholding associated with such benefit. The Company will provide the UATP card to the Executive within 30 days of the termination of the Executive's employment and thereafter on each of the first and second anniversaries of such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>No Mitigation; No Offset</u>. Notwithstanding anything in this Section 5 to the contrary, Executive shall not be required to mitigate the amount of any severance payments provided under this Section 5 by seeking other employment, and the amount of such severance payments shall not be reduced by any compensation earned by Executive from any source, including, without limitation, salary, sign-on or annual bonus compensation, consulting fees, and commission payments. The severance payments provided for in this Section 5 are in lieu of any other severance or income continuation or protection under any Company plan that may now or hereafter exist.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>No Other Compensation; Withholding</u>. Except as otherwise expressly provided herein, or in any other written document executed by the Company and the Executive, no other compensation or other consideration shall become due or payable to the Executive on account of the services rendered to the Company Group. The Company shall have the right to deduct and withhold from the compensation payable to the Executive hereunder any amounts required to be deducted and withheld under the provisions of any statute, regulation, ordinance, order or any other amendment thereto, heretofore or hereafter enacted, requiring the withholding or deduction of compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Confidential Information</u>. The Executive recognizes and acknowledges that he shall receive in the course of his employment hereunder certain confidential information and trade secrets concerning the Company Group's business and affairs which may be of great value to the Company Group. The Executive therefore agrees that he will not disclose any such information relating to the Company Group, the Company Group's personnel or their operations other than in the ordinary course of business or in any way use such information in any manner which could adversely affect the Company Group's business, except as required by law or to defend or enforce Executive's rights under this Agreement. For purposes of this Agreement, the terms "trade secrets" and "confidential information" shall include any and all information concerning the business and affairs of the Company Group and any division or other affiliate of the Company Group that is not

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generally available to the public. The Company may, formally or informally, establish, adopt, implement or utilize procedures or actions that are designed to monitor or protect Company Group's confidential information. Executive hereby irrevocably consents, without the right to receive further notice, to any or all of these procedures or actions that may be established, adopted, implemented, utilized or enforced by the Company Group. The Company Group shall have the right to establish, adopt, implement, utilize or enforce these procedures at any time during Executive's employment with Company Group and during any period in which any restrictive covenants contained in this Agreement are facially or legally applicable. Executive expressly WAIVES the right to challenge the enforceability of any of these procedures in any legal action seeking to enforce this Agreement or to recover for Executive's breach or alleged breach of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Non-Competition</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Executive agrees that without the prior written consent of the Chief Executive Officer during the Term and for a period of 12 months following the termination of the Executive's employment, he will not participate as an advisor, partner, joint venturer, investor, lender, consultant or in any other capacity in any business transaction or proposed business transaction (i) with respect to which the Executive had a material personal involvement on behalf of the Company Group during the last 12 months of his employment with the Company, or (ii) that could reasonably be expected to compete with the Company Group's business or operations or proposed or contemplated business or transactions of the Company Group that are (A) known by the Executive as of the date of such termination or expiration, and (B) contemplated by the Company Group to proceed during the 12-month period following such termination or expiration. For these purposes, the mere ownership by the Executive of securities of a public company not in excess of 2% of any class of such securities shall not be considered to be competition with the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) During any period when the Company is providing severance compensation to the Executive (other than any pro-rata payout of performance shares pursuant to <u>Section</u> <u>5(b)(iv)</u> or <u>Section</u> <u>5(d)(iii)</u>), Executive agrees to refrain from any competition with Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To the fullest extent permitted by applicable law, for a period of 12 months after the termination of employment with Company (for any reason, including resignation), Executive, on behalf of any entity in competition with the Company Group, in any capacity, may not, directly or indirectly, in a competing capacity, solicit or obtain any business from any present customer of the Company Group with whom Executive had contact or received information from the Company Group. It is understood and agreed that "present customer" is defined to mean any entity with whom the Company Group had an "ongoing business relationship" at the time of the termination of Executive's employment with the Company. An "ongoing business relationship" (specifically excluding non-competing vendor relationships) is generally understood and agreed to mean: (i) services or goods were provided by the Company Group to the entity during the employment of Executive by Company; (ii) services or goods had been contracted for or ordered by the entity during the employment of Executive by the Company Group; or (iii) negotiations were in progress between the entity and the Company Group for the providing of goods or services by the Company Group to the entity at the time of the termination of the employment of Executive. It is understood and agreed that past customers and prospective customers are not "present customers" protected under the terms of this provision.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) To the fullest extent permitted by applicable law, in recognition of the global nature of the Company Group's business, and Executive's access to the Company Group's confidential information, for a period of 12 months after the termination of employment with Company (for any reason, including resignation), Executive, on behalf of any entity in competition with the Company Group, may not, directly or indirectly, compete with the Company Group: (i) anywhere in the world; (ii) in North America; (iii) in the United States; (iv) in Indiana; (v) within a 25-mile radius of any location of the Company Group with which Executive had operational involvement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Non-Solicitation</u>. The Executive agrees that during the Term, and for a period of 12 months following the termination of the Executive's employment, he shall not, without the prior written consent of the Company, directly or indirectly, employ or retain, or have or cause any other person or entity to employ or retain, any person who was employed by the Company Group or any of its divisions or affiliates while the Executive was employed by the Company, or directly or indirectly solicit or encourage any such person for employment or to leave the employ of the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Breach of this Agreement</u>. If the Executive commits a breach, or threatens to commit a breach, of any of the provisions of <u>Sections 7</u>, <u>8</u> or <u>9</u> of this Agreement, then the Company shall have the right and remedy to have those provisions specifically enforced by any court having equity jurisdiction, it being acknowledged and agreed by the Executive that the rights and privileges of the Company granted in <u>Sections 7</u>, <u>8</u> and <u>9</u> are of a special, unique and extraordinary character and any such breach or threatened breach will cause great and irreparable injury to the Company and that money damages will not provide an adequate remedy to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Notices</u>. All notices and other communications required or permitted hereunder shall be in writing (including facsimile, telegraphic, telex or cable communication) and shall be deemed to have been duly given when delivered by hand, or mailed, certified or registered mail, return receipt requested and postage prepaid:

If to the Company: Republic Airways Holdings Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8909 Purdue Road

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Suite 300

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indianapolis, IN 46268

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Attn: Chief Administrative Officer

With a copy to the Chief Executive Officer

If to the Executive: Joseph P. Allman

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Address]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Applicable Law</u>. This Agreement was negotiated and entered into within the State of Indiana. All matters pertaining to this Agreement shall be governed by the laws of the State of Indiana applicable to contracts made and to be performed wholly therein. Nothing in this Agreement shall be construed to require the commission of any act contrary to law, and wherever

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there is any conflict between any provision of this Agreement and any material present or future statute, law, governmental regulation or ordinance as a result of which the parties have no legal right to contract or perform, the latter shall prevail, but in such event the provision(s) of this Agreement affected shall be curtailed and limited only to the extent necessary to bring it or them within the legal requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Entire Agreement; Modification; Consents and Waivers</u>. This Agreement contains the entire agreement of the parties with respect to the subject matter hereof and supersedes any and all prior agreements or understandings, written or oral, between the parties with respect to the subject matter hereof. No interpretation, change, termination or waiver of or extension of time for performance under any provision of this Agreement shall be binding upon any party unless in writing and signed by the party intended to be bound thereby. Except as otherwise provided in this Agreement, no waiver of or other failure to exercise any right under or default or extension of time for performance under any provision or this Agreement shall affect the right of any party to exercise any subsequent right under or otherwise enforce said provision or any other provision hereof or to exercise any right or remedy in the event of any other default, whether or not similar.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Severability</u>. The parties acknowledge that, in their view, the terms of this Agreement are fair and reasonable as of the date signed by them, including as to the scope and duration of post-termination activities. Accordingly, if any one or more of the provisions contained in this Agreement shall for any reason, whether by application of existing law or law which may develop after the date of this Agreement, be determined by a court of competent jurisdiction to be excessively broad as to scope of activity, duration or territory, or otherwise unenforceable, the parties hereby jointly request such court to construe any such provision by limiting or reducing it so as to be enforceable to the maximum extent in favor of the Company compatible with then-applicable law. If any one or more of the terms, provisions, covenants or restrictions of this Agreement shall nonetheless be determined by a court of competent jurisdiction to be invalid, void or unenforceable, then the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Assignment</u>. The Company may, at its election, assign this Agreement or any of its rights hereunder. This Agreement may not be assigned by the Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Counterparts</u>. This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Arbitration</u>. Except as provided in <u>Section</u> <u>10</u>, any other dispute arising out of or asserting breach of this Agreement, or any statutory or common law claim by the Executive relating to the Executive's employment under this Agreement or the termination thereof (including any tort or discrimination claim), shall be exclusively resolved by binding statutory arbitration in accordance with the Employment Dispute Resolution Rules of the American Arbitration Association. Such arbitration process shall take place in Indianapolis, Indiana. A court of competent jurisdiction may enter judgment upon the arbitrator's award. Each party shall pay the costs and expenses of arbitration (including fees and disbursements of counsel) incurred by such party in connection with any dispute arising out of or asserting breach of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Survival</u>. The provisions of <u>Sections 7</u> through <u>20</u> of this Agreement shall survive any expiration or termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Impact on Equity Awards</u>. In the case of a termination of the Executive's employment under the circumstances provided for in this Agreement, the vesting and other terms of any equity awards (including options to purchase stock of the Company, restricted stock, restricted stock units and performance shares) held by the Executive on the date of such termination shall be governed by the applicable provisions of this Agreement notwithstanding any contrary or conflicting provision of any plan under which any such award may have been made, the Prior Agreement or any award agreement or other agreement related to any such equity award, whether now existing or hereafter executed between the Company and the Executive. Any and all such contrary or conflicting provisions in the Prior Agreement or any such award agreement or other agreement shall be amended by the execution of this Agreement to provide for vesting and other treatment in such circumstances as set forth in this Agreement, but the remaining terms of such agreements shall be unaffected hereby. For the avoidance of doubt, the parties agree that no such outstanding equity award shall vest solely due to the occurrence of a Change of Control, and any such provision in the Prior Agreement or any such award agreement or other agreement shall be deemed to be deleted from such agreement as amended by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. <u>Indemnification; D&O Insurance</u>. The Company shall, to the fullest extent allowed by law, defend, indemnify and hold harmless the Executive from and against any and all demands, claims, suits, liabilities, actions asserted or brought against the Executive or in which the Executive is made a party, including, without limitation, all litigation costs and attorneys' fees incurred by the Executive or judgments rendered against the Executive, in connection with any matter arising within the course and scope of Executive's employment with the Company or service as an officer, director or manager of the Company or any of the Subsidiaries. The Company shall advance to the Executive all reasonable costs and expenses incurred by the Executive in any such matter within thirty (30) days after its receipt of a written request for such advance. Such request shall include an undertaking by the Executive to repay the amount of such advance if it shall ultimately be determined that Executive is not entitled to be indemnified against such costs and expenses. The right of the Executive to indemnification hereunder shall vest at the time of occurrence or performance of any event, act or omission giving rise to any demand, claim, suit, liability, action or legal proceeding of the nature referred to in this <u>Section</u> <u>20</u> and, once vested, shall survive the termination of Executive's employment with the Company for any reason. To the extent that the Company maintains officers' and directors' liability insurance, you will be covered under such policy subject to the exclusions and limitations set forth therein. The provisions of this Section 20 shall survive the expiration or termination of the Executive's employment and/or this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. <u>Section 409A Compliance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any payments conditioned upon a termination of the Executive's employment will be deemed to be conditioned upon the Executive's separation from service within the meaning of Treasury Regulation Section 1.409A-1(h) and will be construed and interpreted accordingly. If the Executive is a "specified employee" within the meaning of Treasury Regulation Section 1.409A-1(i) as of the date of the Executive's separation from service, then the Executive shall not be entitled to any severance payments or other benefits pursuant to this Agreement until the earlier of (a) the date which is six

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months after the date of the Executive's separation from service, or (b) the date of the Executive's death. This paragraph shall only apply if, and to the extent required in order to comply with Section 409A of the Internal Revenue Code of 1986, as amended (the "Code"), and Treasury Regulation Section 1.409A-3(i)(2). Any amounts otherwise payable to the Executive upon or in the six-month period following the Executive's separation from service that are not so paid by reason of this paragraph shall be paid to the Executive (or the Executive's estate, as the case may be) as soon as practicable (and in all events within twenty days) after the expiration of such six-month period or (if applicable, the date of the Executive's death).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any taxable reimbursement of expenses payable to the Executive shall be paid to the Executive on or before the last day of the Executive's taxable year following the taxable year in which the related expense was incurred. Expense reimbursements and in-kind benefits provided to the Executive shall not be subject to liquidation or exchange for another benefit and the amount of such reimbursements or in-kind benefits that the Executive receives in one taxable year shall not affect the amount of such reimbursements or benefits that the Executive may receive in any other taxable year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) It is intended that any amounts payable under this Agreement and the Company's and the Executive's exercise of any authority or discretion hereunder shall comply with, and avoid the imputation of any tax, penalty or interest under Section 409A of the Code. This Agreement shall be construed and interpreted consistent with that intent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. <u>Adjustments to Payments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding any other provision of this Agreement, if any payment or benefit Executive would receive pursuant to this Agreement or otherwise, including accelerated vesting of any equity compensation (all such payments and/or benefits hereinafter, "Payment"), would (i) constitute a "parachute payment" within the meaning of Section 280G of the Code, and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the "Excise Tax"), then such Payment shall be either (x) provided to the Executive in full, or (y) provided to the Executive to such lesser extent which would result in no portion of such Payment being subject to the excise tax, further reduced by $5,000 (including such further reduction, the "Cutback Amount"), whichever of the foregoing amounts, when taking into account applicable federal, state, local and foreign income and employment taxes, such excise tax and other applicable taxes, (all computed at the highest applicable marginal rates), results in the receipt by the Executive, on an after-tax basis, of the greatest amount of the Payment, notwithstanding that all or a portion of such Payment may be subject to the excise tax. If a reduction in payments or benefits constituting "parachute payments" is necessary so that the Payment equals the Cutback Amount, reduction shall occur in the following order: (A) cash payments shall be reduced first and in reverse chronological order such that the cash payment owed on the latest date following the occurrence of the event triggering such excise tax will be the first cash payment to be reduced; (B) accelerated vesting of performance-based equity awards shall be cancelled or reduced next and in the reverse order of the date of grant for such awards (i.e., the vesting of the most recently granted awards will be reduced first), with full-value awards reduced before any performance-based stock option or stock appreciation

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rights are reduced; (C) health and welfare benefits shall be reduced and in reverse chronological order such that the benefit owed on the latest date following the occurrence of the event triggering such excise tax will be the first benefit to be reduced; and (D) accelerated vesting of time-based equity awards shall be cancelled or reduced last and in the reverse order of the date of grant for such awards (i.e., the vesting of the most recently granted awards will be reduced first), with full-value awards reduced before any time-based stock option or stock appreciation rights are reduced.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company shall appoint a nationally recognized accounting firm to make the determinations required hereunder and perform the foregoing calculations. The Company shall bear all expenses with respect to the determinations by such accounting firm required to be made hereunder. The accounting firm engaged to make the determinations hereunder shall provide its calculations, together with detailed supporting documentation, to the Company and Executive within 15 calendar days after the date on which right to a Payment is triggered (if requested at that time by the Company or Executive). Any good faith determinations of the accounting firm made hereunder shall be final, binding and conclusive upon the Company and Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. <u>Settlement of Outstanding Claim</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company shall pay to the Executive the amounts earned, but deferred from the 2015 AIP, in the amount of $76,848 within 14 days of the Effective Date of the Company's Plan of Reorganization.

[*Remainder of page intentionally left blank*]

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

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| | | |
|:---|:---|:---|
|  REPUBLIC AIRWAYS HOLDINGS INC. | REPUBLIC AIRWAYS HOLDINGS INC. | REPUBLIC AIRWAYS HOLDINGS INC. |
| By: | /s/ Bryan Bedford | /s/ Bryan Bedford |
|  | Name: | Bryan Bedford |
|  | Title: | Chief Executive Officer, President, and Chairman of the Board |
|  JOSEPH P. ALLMAN | JOSEPH P. ALLMAN | JOSEPH P. ALLMAN |
|  /s/ Joseph P. Allman | /s/ Joseph P. Allman | /s/ Joseph P. Allman |

---

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**EXHIBIT A** 

**FORM OF RELEASE** 

**<u>GENERAL RELEASE</u>**

In exchange for the payments and benefits set forth in the Amended and Restated Employment Agreement between Republic Airways Holdings Inc. (the "<u>Company</u>") and me dated as of February 8, 2017 (the "<u>Agreement</u>"), and to be provided following the Effective Date (as defined below) of this General Release and subject to the terms of the Agreement, and my execution (without revocation) and delivery of this General Release:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. (a) On behalf of myself, my agents, assignees, attorneys, heirs, executors and administrators, I hereby release the Company and its predecessors, successors and assigns, their current and former parents, affiliates, subsidiaries, divisions and joint ventures (collectively, the "<u>Company Group</u>") and all of their current and former officers, directors, employees, and agents, in their capacity as Company Group representatives (individually and collectively, "<u>Releasees</u>") from any and all controversies, claims, demands, promises, actions, suits, grievances, proceedings, complaints, charges, liabilities, damages, debts, taxes, allowances, and remedies of any type, including but not limited to those arising out of my employment with the Company Group (individually and collectively, "<u>Claims</u>") that I may have by reason of any matter, cause, act or omission. This release applies to Claims that I know about and those I may not know about occurring at any time on or before the date of execution of this General Release.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This General Release includes a release of all rights and Claims under, as amended, Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act of 1967, the Rehabilitation Act of 1973, the Civil Rights Acts of 1866 and 1991, the Americans with Disabilities Act of 1990, the Employee Retirement Income Security Act of 1974, the Equal Pay Act of 1963, the Family and Medical Leave Act of 1993, the Older Workers Benefit Protection Act of 1990, the Occupational Safety and Health Act of 1970, the Worker Adjustment and Retraining Notification Act of 1989 and the Sarbanes-Oxley Act of 2002, as well as any other federal, state, or local statute, regulation, or common law regarding employment, employment discrimination, termination, retaliation, equal opportunity, or wage and hour. I specifically understand that I am releasing Claims based on age, race, color, sex, sexual orientation or preference, marital status, religion, national origin, citizenship, veteran status, disability, genetic information and other legally protected categories.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) This General Release also includes a release of any Claims for breach of contract, any tortious act or other civil wrong, attorneys' fees, and all compensation and benefit claims including without limitation Claims concerning salary, bonus, and any award(s), grant(s), or purchase(s) under any equity and incentive compensation plan or program.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In addition, I am waiving my right to pursue any Claims against the Company Group and Releasees under any applicable dispute resolution procedure, including any arbitration policy.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. I acknowledge that this General Release is intended to include, without limitation, all Claims known or unknown that I have or may have against the Company Group and Releasees through the Effective Date of this General Release. Notwithstanding anything herein, I expressly reserve and do not release pursuant to this General Release (and the definition of "Claims" will not include) (i) my rights with respect to the enforcement of the Agreement, including but not limited to the right to receive severance compensation (as provided in <u>Section</u> <u>5</u> of the Agreement), if any, and other payments, benefits and indemnifications specified in the Agreement, (ii) any rights or interest under any Benefit Plans (as defined in the Agreement), (iii) any right to indemnification pursuant to the Company's Certificate of Incorporation or By-laws as in effect on the date hereof, (iv) the protections of the Company Group's directors and officers liability insurance, if any, in each case, to the same extent provided to other senior executives of the Company, (v) any claims and rights that cannot be waived by law, including but not limited to my right to file an EEOC charge but hereby waive my right to financial recovery as to any such charge, (vi) the vesting and exercise of any equity grant pursuant to the terms of the applicable equity award agreement or the applicable equity incentive plan, (vii) any rights as a stockholder of the Company, and (viii) any rights under <u>Sections 10</u> and <u>11</u> of the Agreement following termination of employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. I acknowledge that I have had at least 21 calendar days from the date of my termination of employment with the Company (the "<u>Termination Date</u>") to consider the terms of this General Release, that I have been advised to consult with an attorney regarding the terms of this General Release prior to executing it, that I have consulted with my attorney, that I fully understand all of the terms and conditions of this General Release, that I understand that nothing contained herein contains a waiver of claims arising after the date of execution of this General Release, and I am entering into this General Release knowingly, voluntarily and of my own free will. I further understand that my failure to sign this General Release and return such signed General Release to the Company, 8909 Purdue Road, Suite 300, Indianapolis, IN 46268 by 5:00 pm on the 22<sup>nd</sup> day after the Termination Date will render me ineligible for the payments and benefits described herein and in the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. I understand that once I sign and return this General Release to the Company, I have 7 calendar days to revoke it. I may do so by delivering to the Company, 8909 Purdue Road, Suite 300, Indianapolis, IN 46268 written notice of my revocation within the 7-day revocation period (the "<u>Revocation Period</u>"). This General Release will become effective on the 8<sup>th</sup> day after I sign and return it to the Company ("<u>Effective Date</u>"); provided that I have not revoked it during the Revocation Period.

YOU ARE HEREBY ADVISED BY THE COMPANY TO CONSULT WITH AN ATTORNEY BEFORE SIGNING THIS GENERAL RELEASE.

I HAVE READ THIS GENERAL RELEASE AND UNDERSTAND ALL OF ITS TERMS. I SIGN AND ENTER THIS GENERAL RELEASE KNOWINGLY AND VOLUNTARILY, WITH FULL KNOWLEDGE OF WHAT IT MEANS.

---

| |
|:---|
|  JOSEPH P. ALLMAN |
|  Date:<u> </u> |

---

## Exhibit 10.22

**Exhibit 10.22.2** 

FIRST AMENDMENT TO

SECOND AMENDED AND RESTATED EMPLOYMENT AGREEMENT

This First Amendment to Second Amended and Restated Employment Agreement (this "Amendment") is made and entered into as of November 14, 2017, by and between REPUBLIC AIRWAYS HOLDINGS INC., a Delaware corporation (the "Company"), and JOSEPH P. ALLMAN (the "Executive").

RECITALS

Whereas, the Executive and the Company are parties to the Second Amended and Restated Employment Agreement dated as of February 8, 2017 (the "Employment Agreement"); and

Whereas, the Company and the Executive desire to amend certain provisions of the Employment Agreement.

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants hereinafter set forth and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Clause (i) of the third sentence of Section 4(e) of the Employment Agreement is hereby amended to read in its entirety as follows: "(i) the Company has failed to establish a reasonable and market based EIP or other long-term incentive award program to replace the Plan by November 27, 2017."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Except as provided in Section 1 above, all other provisions of the Employment Agreement shall remain in effect in accordance with their terms.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

---

| | | |
|:---|:---|:---|
| REPUBLIC AIRWAYS HOLDINGS INC. | REPUBLIC AIRWAYS HOLDINGS INC. | REPUBLIC AIRWAYS HOLDINGS INC. |
| By: | /s/ Bryan Bedford | /s/ Bryan Bedford |
|  | Name: | Bryan Bedford |
|  | Title: | Chief Executive Officer, and President |
| JOSEPH P. ALLMAN | JOSEPH P. ALLMAN | JOSEPH P. ALLMAN |
| /s/ Joseph P. Allman | /s/ Joseph P. Allman | /s/ Joseph P. Allman |

---

## Exhibit 10.22

**Exhibit 10.22.3** 

SECOND AMENDMENT TO

SECOND AMENDED AND RESTATED EMPLOYMENT AGREEMENT

This Second Amendment to Second Amended and Restated Employment Agreement (this "Amendment") is made and entered into as of November 27, 2017, by and between REPUBLIC AIRWAYS HOLDINGS INC., a Delaware corporation (the "Company"), and JOSEPH P. ALLMAN (the "Executive").

RECITALS

Whereas, the Executive and the Company are parties to the Second Amended and Restated Employment Agreement dated as of February 8, 2017, as amended (the "Employment Agreement"); and

Whereas, the Company and the Executive desire to amend certain provisions of the Employment Agreement.

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants hereinafter set forth and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Section 3(d) of the Employment Agreement is hereby amended by replacing the reference to "Equity Incentive Plan (the "EIP")" with "Long Term Incentive Plan (the "EIP")" and adding the following sentence at the end thereof: "Notwithstanding any provision in the EIP or applicable award agreement to the contrary, the long-term incentive awards to be granted to the Executive under the EIP will not be subject to discretionary downward adjustment by the Compensation Committee as otherwise permissible under Section 5(c) of the EIP following achievement of the performance objectives applicable such awards."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Except as provided in Section 1 above, all other provisions of the Employment Agreement shall remain in effect in accordance with their terms.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

---

| | | |
|:---|:---|:---|
| REPUBLIC AIRWAYS HOLDINGS INC. | REPUBLIC AIRWAYS HOLDINGS INC. | REPUBLIC AIRWAYS HOLDINGS INC. |
| By: | /s/ Bryan K. Bedford | /s/ Bryan K. Bedford |
|  | Name: | Bryan K. Bedford |
|  | Title: | Chief Executive Officer and President |
| JOSEPH P. ALLMAN | JOSEPH P. ALLMAN | JOSEPH P. ALLMAN |
| /s/ Joseph P. Allman | /s/ Joseph P. Allman | /s/ Joseph P. Allman |

---

## Exhibit 10.23

**Exhibit 10.23.1** 

**AMENDED AND RESTATED** 

**<u>EMPLOYMENT AGREEMENT</u>**

THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this "Agreement") is made and entered into as of February 8, 2017, by and between REPUBLIC AIRWAYS HOLDINGS INC., a Delaware corporation (the "Company"), and PAUL K. KINSTEDT (the "Executive").

**RECITALS** 

WHEREAS, the Executive and the Company are parties to the Employment Agreement dated as of November 24, 2015 (the "Prior Agreement"); and

WHEREAS this Agreement shall become effective upon the Effective Date of the Company's Plan of Reorganization; and

WHEREAS, the Company and the Executive desire to amend certain provisions of the Prior Agreement and to enter into this Agreement.

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants hereinafter set forth and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Employment</u>. The Company agrees to continue to employ the Executive, and the Executive agrees to render his services to the Company, as its Senior Vice President, Chief Operating Officer, during the Term (as defined below). In connection with his employment as Senior Vice President, Chief Operating Officer, the Executive shall serve without additional payment or compensation of any kind as an officer of any other direct or indirect subsidiary or affiliate of the Company designated by the Company's Chief Executive Officer (collectively, the "Subsidiaries"). The Executive shall render his services at the direction of the Company's Chief Executive Officer at the Company's offices in Indianapolis, Indiana. The Executive agrees to use his best efforts to promote and further the business, reputation and good name of the Company and the Subsidiaries (collectively, the "Company Group") and the Executive shall promptly and faithfully comply with all instructions, directions, requests, rules and regulations made or issued from time to time by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Term</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Unless earlier terminated by the Executive's death or Disability (as defined below), the term of the Executive's employment pursuant to this Agreement (the "Term") shall continue until May 31, 2018 and shall be automatically renewed for successive one-year periods thereafter unless either party shall have given notice to terminate the Executive's employment no later than ninety (90) days prior to the end of the then current Term.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding the foregoing, the Executive's employment may be terminated by the Company or by the Executive as provided in <u>Section</u> <u>4</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Compensation and Benefits</u>. As full and complete compensation for all the Executive's services hereunder, during the Term the Company shall pay the Executive the compensation and provide the Executive with the benefits described below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Base Salary</u>. During the Term, the Company shall pay the Executive an annual base salary of $240,000 ("Base Salary"). The Board shall review the Executive's Base Salary each year and shall have the right in its discretion to increase such Base Salary. With the Executive's prior consent, the Executive's Base Salary may be reduced by an amount and for a period mutually agreed between the Executive and the Company so long as such reduction is made in conjunction with similar reductions in base salary for other executives or employees of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Annual Incentive Plan</u>. In addition to the Base Salary, during the Term, the Executive will have an annual incentive opportunity target equal to 65% of the Executive's Base Salary for the year under the Company's Annual Incentive Plan ("AIP"). Collectively any amounts earned under the AIP and earned under the KEIP (as defined below) shall make up the Executive's annual incentive compensation ("Bonus"). The amount of the AIP for any year may be more or less than the target amount, but not more than 130% of the Executive's Base Salary for the year, and will be determined, in its sole discretion, by the Compensation Committee based upon certain performance measures which shall be approved by the Compensation Committee in its discretion and communicated to the Executive for 2017 by not later than 90 days following the Effective Date of the Company's Plan of Reorganization and each February during the Term thereafter. The earned Bonus for each prior year will be determined and paid by March 15 of the following year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Discretionary Bonus</u>. The Executive may also be awarded one or more discretionary bonuses based on his individual performance or other factors as may be determined by the Compensation Committee in its sole discretion from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Long-Term Incentive Awards</u>. The Executive shall be entitled to receive long-term incentive awards under the Company's Equity Incentive Plan ("EIP"), which is to be approved and implemented by the Board of Directors, and as may be amended from time to time, including, without limitation, options, restricted stock, restricted stock units, stock appreciation rights, performance shares or other awards, at such times, in such forms and in such amounts as may be determined by the Compensation Committee from time to time. The terms of any such awards shall be governed by the EIP and any applicable award agreement related thereto entered into between the Company and the Executive, except as otherwise provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Transitional Long-Term Incentive</u>. In the absence of an EIP as of January 1, 2017, the Executive shall be eligible to receive a cash incentive under the Company's Transitional Long-Term Incentive Plan (the "T-LTI") for calendar year 2017 to be approved and implemented by the Board of Directors. The T-LTI will be awarded in 2017, but vest and become payable as follows: (i) 1/3<sup>rd</sup> on February 1, 2018, (ii) 1/3<sup>rd</sup> on February

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1, 2019, (iii) and 1/3<sup>rd</sup> on February 1, 2020 (each a "T-LTI Payment Date"). The range of possible T-LTI performance awards payments for any T-LTI Payment Date shall be established by the Compensation Committee. The amount actually earned by the Executive, if any, will be subject to, and determined based upon, achievement of certain performance measures, which shall be established and measured by the Compensation Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Medical</u> <u>& 401K Benefits</u>. The Executive shall be entitled to participate in any retirement, 401K, disability, medical, pension, profit sharing, group insurance, or any other plan or arrangement, or in any other benefits now or hereafter generally available to executives of the Company, in each case to the extent that the Executive shall be eligible under the general provisions thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Annual Physical</u>. The Company will arrange and pay for an annual physical of the Executive to be performed at the Indiana University Medical Center, or other facility chosen by the Executive once per year during the Term. The Executive acknowledges that this is a taxable benefit, and he authorizes the Company to take any required tax withholding (as reasonably determined by the Company) on account of such benefit from his other wages.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Vacation</u>. The Executive shall be entitled to vacation in accordance with Company policy, which vacation shall be taken on dates to be selected by mutual agreement of the Company and the Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Reimbursement for Expenses</u>. The Executive shall be entitled to reimbursement for ordinary and necessary business expenses incurred by the Executive in the course of his employment in accordance with the Company's policies from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Termination of Employment</u>. The Executive's employment hereunder may be terminated during the Term in accordance with this <u>Section</u> <u>4</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Death</u>. In the event the Executive dies during the Term, the Executive's employment shall automatically terminate on the date of death. In such event, the Executive's estate shall be entitled to receive his Base Salary and a prorated portion of his target Bonus for the year in which termination occurs, in each case through the effective date of the termination of his employment, <u>plus</u> severance compensation provided for in <u>Section</u> <u>5(a)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Disability</u>. The Company, by written notice to the Executive, may immediately terminate the Executive's employment in the event of the Executive's Disability. As used herein, "Disability" shall mean the Executive's inability, with reasonable accommodation, to perform the essential functions of his position, by reason of physical or mental incapacity, for a consecutive period of 90 days or for a total period of 180 days in any 360-day period. In the event the Executive's employment is terminated due to the Executive's Disability, the Executive shall be entitled to receive his Base Salary and a prorated portion of his target Bonus for the year in which termination occurs, in each case through the effective date of the termination of his employment, <u>plus</u> the severance compensation provided for in <u>Section</u> <u>5(a)</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Termination for Cause by the Company</u>. The Company, by written notice to the Executive, may immediately terminate the Executive's employment for Cause. As used herein, a termination by the Company "for Cause" shall mean that a good faith determination by the Chief Executive Officer that the Executive has (i) willfully refused to perform a material part of his duties hereunder, (ii) willfully failed to follow the direction of the Chief Executive Officer, (iii) materially breached the provisions of <u>Sections 7</u>, <u>8</u> or <u>9</u> hereof, (iv) acted fraudulently or dishonestly in his relations with the Company, (v) committed larceny, embezzlement, conversion or any other act involving the misappropriation of Company funds or assets in the course of his employment, or (vi) been indicted or convicted of any felony or other crime involving an act of moral turpitude. In the event the Executive's employment is terminated for Cause, the Executive shall be entitled to receive only his Base Salary through the effective date of the termination of his employment, and shall not be entitled to receive any severance compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Termination other than for Cause by the Company</u>. The Company, by written notice to the Executive, may terminate the Executive's employment other than for Cause, effective as of the date specified by the Company in the notice, which date shall not be earlier than the date of the notice. In such event, the Executive shall be entitled to receive his Base Salary and a prorated portion of his target Bonus for the year in which termination occurs, in each case through the effective date of the termination of his employment, <u>plus</u> the severance compensation provided for in <u>Section</u> <u>5(b)</u> or <u>Section</u> <u>5(c)</u>, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Termination for Good Reason by the Executive</u>. The Executive, by providing at least 30 days prior written notice to the Company, may terminate his employment hereunder for Good Reason, provided that the Company shall have the right to cure such Good Reason within such 30-day period. In order to constitute a valid notice of a termination for Good Reason, the notice must be received by the Board of Directors or Chief Executive Officer of the Company no later than 60 days following the initial occurrence of any event asserted to constitute Good Reason. As used herein, a termination by the Executive "for Good Reason" shall mean that (i) the Company has failed to establish a reasonable and market based EIP or other long-term incentive award program by November 15, 2017; (ii) the Company has materially diminished the duties or responsibilities of the Executive with respect to the Company (iii) the Company has reduced the Executive's Base Salary or Bonus opportunity; (iv) the Company has changed the principal location at which the Executive must perform his services to a location more than 25 miles from the current location of the Company's headquarters in Indianapolis, Indiana without the consent of the Executive; or (v) the Company has materially breached the terms of this Agreement. In the event the Executive's employment is terminated for Good Reason, the Executive shall be entitled to receive his Base Salary and a prorated portion of his target Bonus for the year in which termination occurs, in each case through the effective date of the termination of his employment, <u>plus</u> the severance compensation provided for in <u>Section</u> <u>5(b)</u> or <u>Section</u> <u>5(c),</u> as applicable.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Termination other than for Good Reason by the Executive</u>. The Executive, by providing at least 60 days prior written notice to the Company, may terminate his employment other than for Good Reason. In such event, the Executive shall be entitled to receive only his Base Salary through the effective date of the termination of his employment and shall not be entitled to receive any severance compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Impact of Termination for Cause or without Good Reason on Equity Awards</u>. If the Executive's employment is terminated (i) by the Company for Cause, or (ii) by the Executive other than for Good Reason, all options to purchase shares of the Company's common stock and other equity awards held by the Executive on the effective date of termination that have not vested as of such date shall terminate immediately following the termination of the Executive's employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Timing of Payments.</u> The payment of any amounts due to the Executive pursuant to this <u>Section</u> <u>4</u> (other than severance compensation, if any, which shall be paid as provided in <u>Section</u> <u>5)</u> shall be paid no later than the next regular payroll date following the effective date of the termination of the Executive's employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Severance Compensation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Termination Upon Death or Disability</u>. In the event of the Executive's death or in the event the Company terminates the Executive's employment as a result of the Executive's Disability, the Company shall pay to the Executive or his estate, as the case may be, as severance compensation an amount equal to two times the Executive's Base Salary as then in effect, <u>plus</u> two times the Executive's Bonus for the last calendar year preceding the year in which his death or termination on account of Disability occurs. This severance compensation shall be paid in a lump sum on the first day of the month occurring at least thirty days following the effective date of the termination of employment, provided that the Company has received a release following termination of employment signed by the Executive or his personal representative, substantially in the form attached hereto as <u>Exhibit A</u>*<u>,</u>* and that such release is no longer revocable on the payment date. In addition, any options to purchase shares of the Company's common stock, and any awards of restricted stock, restricted stock units or performance shares, in each case that are held by the Executive on the effective date of termination and have not vested shall be treated in the same manner as provided therefor in <u>Section</u> <u>5(b)</u>. The Executive agrees that the Company may satisfy its obligations to provide cash severance compensation pursuant to this <u>Section</u> <u>5(a)</u> by purchasing and maintaining one or more insurance policies payable to either the Executive or his designees or to the Company (with or without further payment to the Executive or such designees) upon the Executive's death or as a result of the Executive's Disability; provided that the proceeds of such insurance shall be payable to the Executive on the date set forth herein. The Executive agrees to cooperate with the Company in obtaining such insurance, including by participating in such physical examinations and providing such personal information as may be reasonably requested by the Company's insurers.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Termination by the Company Without Cause or by the Executive for Good Reason</u>. If the Executive's employment is terminated by the Company other than for Cause, or by the Executive for Good Reason, in either case prior to a Change of Control (as defined herein), and provided that the Company has received a release following termination of employment signed by the Executive or his personal representative, substantially in the form attached hereto as <u>Exhibit A</u>, and that such release is no longer revocable on the first payment date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Company shall pay to the Executive as severance compensation an amount equal to two times the Executive's Base Salary as then in effect <u>plus</u> two times the Executive's Bonus earned for the Company's last calendar year. This severance compensation shall be paid in 12 equal monthly installments following a qualifying event, with the first payment payable on the first regular payroll date occurring in the calendar month following the date of the Executive's termination of employment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if any amounts remain due to the Executive from the Key Employee Incentive Program ("KEIP") established in 2016, such outstanding awards shall immediately be paid in a lump sum within 14 days following the termination of the Executive;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in addition to the amounts paid according to Sections 5(b)(i—ii), the aggregate value of all outstanding unvested long-term incentive awards (including any T-LTI or EIP) held by the Executive that would have vested in accordance with their terms prior to the first anniversary of the effective date of termination shall vest on the effective date of Executive's termination and, be calculated based on performance factors that may already have been achieved, or may reasonably be assumed to be achieved and calculable at the time of termination, and be paid in a lump sum within 14 days following the termination of the Executive;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) with respect to any outstanding unvested options to purchase shares of the Company's common stock held by the Executive that vest in accordance with Section 5(b)(iii), such options shall remain exercisable for a period of one year following such effective date (but in no event beyond the term of the option); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the Executive shall be entitled to receive, at the time when a payout with respect to any performance shares held by the Executive on the effective date of termination would otherwise have been made, a pro-rata portion (based on the number of days during the applicable performance period on which the Executive was employed) of the number of such performance shares that would have been earned by the Executive in accordance with the terms thereof (including the satisfaction of the performance conditions related thereto based on the Company's actual performance) if the Executive had been employed on the date required to earn such shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Termination following a Change of Control</u>. If the Executive's employment is terminated by the Company other than for Cause, or by the Executive for Good Reason, in either case within 18 months after a Change of Control, and provided that the Company has received a release following termination of employment signed by the Executive or his personal representative, substantially in the form attached hereto as <u>Exhibit A,</u> and that such release is no longer revocable on the payment date:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Company shall pay to the Executive as severance compensation an amount equal to two times the Executive's Base Salary as then in effect <u>plus</u> two times the Executive's Bonus earned for the Company's last calendar year. This severance compensation shall be paid in a lump sum on the first day of the month occurring at least 30 days following the effective date of the termination of employment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if any amounts remain due to the Executive from the KEIP established in 2016, such outstanding awards shall immediately be paid in a lump sum within 14 days following the termination of the Executive;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in addition to the amounts paid according to Sections 5(c)(i—ii), the aggregate value of all outstanding unvested long-term incentive awards (including any T-LTI or EIP) held by the Executive shall vest on the effective date of Executive's termination and, calculated based on performance factors that may already have been achieved, or may reasonably be assumed to be achieved and calculable at the time of termination, and be paid in a lump sum within 14 days following the termination of the Executive;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) with respect to any outstanding unvested options to purchase shares of the Company's common stock held by the Executive that vest in accordance with Section 5(c)(iii), such options shall remain exercisable for a period of 90 days following the effective date of such termination; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the Executive shall be entitled to receive, at the time when the severance compensation provided for in clause (i) of this <u>Section</u> <u>5(c)</u> is paid, a pro-rata portion (based on the number of days during the applicable performance period on which the Executive was employed) of the number of such performance shares that would have been earned by the Executive if the performance conditions related thereto were satisfied at the target level for such awards and the Executive had been employed on the date required to earn such shares.

As used herein, "Change of Control" shall mean the occurrence, after the date hereof of any of the following: (1) the acquisition by any person or group of affiliated or associated persons of a majority or more of the voting power of the Company; (2) the consummation of a sale of all or substantially all of the assets of the Company; (3) the dissolution of the Company or (4) the consummation of any merger, consolidation, or reorganization involving the Company in which, immediately after giving effect to such merger, consolidation or reorganization, less than majority of the total voting power of outstanding stock of the surviving or resulting entity is then "beneficially owned" (within the meaning of Rule 13d-3 under the Securities Exchange Act of 1934, as amended) in the aggregate by the stockholders of the Company immediately prior to such merger, consolidation or reorganization. Notwithstanding the preceding provisions, an event or series of events shall not constitute a "Change of Control" unless it is a change in the ownership or effective control of the corporation, or in the ownership of a substantial portion of the assets of the corporation, within the meaning of Code Section 409A(a)(2)(A)(v) and the regulations thereunder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Termination by the Executive or the Company at End of Term</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If either the Executive or the Company gives notice to terminate the Executive's employment at the end of the then-current Term pursuant to <u>Section</u> <u>2(a)</u> and the Executive and the Company do not reach agreement regarding the terms of the Executive's continued employment following the end of the Term, unless otherwise agreed by the Company in writing, the Executive shall continue to be employed and to provide services to the Company in the same manner as prior to the giving of such notice for an additional period of 90 days following the last day of the Term (the "Transition Period"). Unless terminated earlier as provided in this Agreement, the Executive's employment shall terminate at the end of the Transition Period. The Executive's duties during this period shall also include those things that are reasonably necessary to assure a smooth transition of the Executive's duties to his successor or to such other persons as the Company may determine and any diminution of the Executive's duties during this period shall not constitute Good Reason under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) During the Transition Period, the Executive shall (A) be entitled to continue to receive his Base Salary and shall continue to accrue a pro-rata portion of his target Bonus, in each case as in effect at the end of the Term and for the period of his continued employment, (B) shall continue to participate in the Company's benefit programs described in <u>Section</u> <u>3(f)</u>, and (C) shall continue to be reimbursed for business expenses as provided in <u>Section</u> <u>3(i)</u>. Except as provided in <u>Section</u> <u>5(d)(iii)</u>, the Executive shall not be entitled to any severance compensation as a result of the termination of his employment during or at the end of the Transition Period. Outstanding equity awards held by the Executive shall continue to be outstanding, shall continue to vest and may be exercised in accordance with their terms, and shall otherwise be unaffected while the Executive is employed during the Transition Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Notwithstanding anything in this <u>Section</u> <u>5</u> to the contrary, upon the earlier of (A) the termination of the Executive's employment upon completion of the Transition Period, or (B) the termination of the Executive's employment by the Company during the Transition Period other than for Cause, and provided that the Company has received a release following termination of employment signed by the Executive or his personal representative, substantially in the form attached hereto as <u>Exhibit A</u>, and that such release is no longer revocable on the first payment date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the Executive shall be entitled to receive from the Company an amount equal to his Base Salary and a prorated portion of his target Bonus for the year in which termination occurs, in each case through the effective date of the termination of his employment, together with any Bonus related to a prior year that has been fully earned by the Executive but not paid to him as of the date of termination, which amount shall be paid no later than the next regular payroll date following the effective date of the termination of the Executive's employment;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Executive shall be entitled to receive severance compensation in an amount equal to one times the Executive's Base Salary as in effect at the end of the Term, which amount shall be paid in 12 equal monthly installments following the effective date of termination, with the first payment payable on the first regular payroll date occurring in the calendar month following the effective date of termination of the Executive's employment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) if any amounts remain due to the Executive from the KEIP established in 2016, such outstanding awards shall immediately be paid in a lump sum within 14 days following the termination of the Executive;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) if termination under Section 5(d) is a result of a termination initiated by the Company, in addition to the amounts paid according to Sections 5(d), the aggregate value of all outstanding unvested long-term incentive awards (including any T-LTI or EIP) held by the Executive on the effective date of termination of the Executive's employment shall vest on such effective date and, calculated based on performance factors that may already have been achieved, or may reasonably be assumed to be achieved and calculable at the time of termination, and be paid in a lump sum within 14 days following the termination of the Executive; however if termination under Section 5(d) is a result of a termination initiated by the Executive, in addition to the amounts paid according to Sections 5(d), the aggregate value of all outstanding unvested long-term incentive awards (including any T-LTI or EIP) held by the Executive that would have vested in accordance with their terms prior to the first anniversary of the effective date of termination shall vest on the effective date of Executive's termination and, calculated based on performance factors that may already have been achieved, or may reasonably be assumed to be achieved and calculable at the time of termination, and be paid in a lump sum within 14 days following the termination of the Executive; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) the Executive shall be entitled to receive, at the time when a payout with respect to any performance shares held by the Executive on the effective date of termination would otherwise have been made, a pro-rata portion (based on the number of days during the applicable performance period on which the Executive was employed) of the number of such performance shares that would have been earned by the Executive in accordance with the terms thereof (including the satisfaction of the performance conditions related thereto based on the Company's actual performance) if the Executive had been employed on the date required to earn such shares.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Continuation of Benefits</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Medical Benefits</u>. Upon termination of the Executive's employment for any reason, voluntary or involuntary, with or without Cause, the Company shall pay the Executive $2,500 each month for a period of 24 months following the effective date of the termination of the Executive's employment for the cost of health insurance from a source other than the Company, for himself, his spouse and his eligible dependents, provided that the Executive presents evidence of such insurance to the Company. The Company will begin the monthly payments to the Executive 30 days after the termination of the Executive's employment and thereafter on the 15th day of each subsequent month during the 24-month period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Travel Privileges</u>. Upon termination of the Executive's employment for any reason, voluntary or involuntary, with or without Cause, the Company shall provide the Executive for a period 36 months following the effective date of the termination of the Executive's employment a Universal Air Travel Plan, Inc. (UATP) card in the amount of $10,000 annually that the Executive, his spouse and his dependents can use for travel. The Executive shall be responsible for any applicable tax withholding associated with such benefit. The Company will provide the UATP card to the Executive within 30 days of the termination of the Executive's employment and thereafter on each of the first and second anniversaries of such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>No Mitigation; No Offset</u>. Notwithstanding anything in this Section 5 to the contrary, Executive shall not be required to mitigate the amount of any severance payments provided under this Section 5 by seeking other employment, and the amount of such severance payments shall not be reduced by any compensation earned by Executive from any source, including, without limitation, salary, sign-on or annual bonus compensation, consulting fees, and commission payments. The severance payments provided for in this Section 5 are in lieu of any other severance or income continuation or protection under any Company plan that may now or hereafter exist.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>No Other Compensation; Withholding</u>. Except as otherwise expressly provided herein, or in any other written document executed by the Company and the Executive, no other compensation or other consideration shall become due or payable to the Executive on account of the services rendered to the Company Group. The Company shall have the right to deduct and withhold from the compensation payable to the Executive hereunder any amounts required to be deducted and withheld under the provisions of any statute, regulation, ordinance, order or any other amendment thereto, heretofore or hereafter enacted, requiring the withholding or deduction of compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Confidential Information</u>. The Executive recognizes and acknowledges that he shall receive in the course of his employment hereunder certain confidential information and trade secrets concerning the Company Group's business and affairs which may be of great value to the Company Group. The Executive therefore agrees that he will not disclose any such information relating to the Company Group, the Company Group's personnel or their operations other than in the ordinary course of business or in any way use such information in any manner which could

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adversely affect the Company Group's business, except as required by law or to defend or enforce Executive's rights under this Agreement. For purposes of this Agreement, the terms "trade secrets" and "confidential information" shall include any and all information concerning the business and affairs of the Company Group and any division or other affiliate of the Company Group that is not generally available to the public. The Company may, formally or informally, establish, adopt, implement or utilize procedures or actions that are designed to monitor or protect Company Group's confidential information. Executive hereby irrevocably consents, without the right to receive further notice, to any or all of these procedures or actions that may be established, adopted, implemented, utilized or enforced by the Company Group. The Company Group shall have the right to establish, adopt, implement, utilize or enforce these procedures at any time during Executive's employment with Company Group and during any period in which any restrictive covenants contained in this Agreement are facially or legally applicable. Executive expressly WAIVES the right to challenge the enforceability of any of these procedures in any legal action seeking to enforce this Agreement or to recover for Executive's breach or alleged breach of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Non-Competition</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Executive agrees that without the prior written consent of the Chief Executive Officer during the Term and for a period of 12 months following the termination of the Executive's employment, he will not participate as an advisor, partner, joint venturer, investor, lender, consultant or in any other capacity in any business transaction or proposed business transaction (i) with respect to which the Executive had a material personal involvement on behalf of the Company Group during the last 12 months of his employment with the Company, or (ii) that could reasonably be expected to compete with the Company Group's business or operations or proposed or contemplated business or transactions of the Company Group that are (A) known by the Executive as of the date of such termination or expiration, and (B) contemplated by the Company Group to proceed during the 12-month period following such termination or expiration. For these purposes, the mere ownership by the Executive of securities of a public company not in excess of 2% of any class of such securities shall not be considered to be competition with the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) During any period when the Company is providing severance compensation to the Executive (other than any pro-rata payout of performance shares pursuant to <u>Section</u> <u>5(b)(iv)</u> or <u>Section</u> <u>5(d)(iii))</u>, Executive agrees to refrain from any competition with Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To the fullest extent permitted by applicable law, for a period of 12 months after the termination of employment with Company (for any reason, including resignation), Executive, on behalf of any entity in competition with the Company Group, in any capacity, may not, directly or indirectly, in a competing capacity, solicit or obtain any business from any present customer of the Company Group with whom Executive had contact or received information from the Company Group. It is understood and agreed that "present customer" is defined to mean any entity with whom the Company Group had an "ongoing business relationship" at the time of the termination of Executive's employment with the Company. An "ongoing business relationship" (specifically excluding non-competing vendor relationships) is generally understood and agreed to mean: (i) services or goods were

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provided by the Company Group to the entity during the employment of Executive by Company; (ii) services or goods had been contracted for or ordered by the entity during the employment of Executive by the Company Group; or (iii) negotiations were in progress between the entity and the Company Group for the providing of goods or services by the Company Group to the entity at the time of the termination of the employment of Executive. It is understood and agreed that past customers and prospective customers are not "present customers" protected under the terms of this provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) To the fullest extent permitted by applicable law, in recognition of the global nature of the Company Group's business, and Executive's access to the Company Group's confidential information, for a period of 12 months after the termination of employment with Company (for any reason, including resignation), Executive, on behalf of any entity in competition with the Company Group, may not, directly or indirectly, compete with the Company Group: (i) anywhere in the world; (ii) in North America; (iii) in the United States; (iv) in Indiana; (v) within a 25-mile radius of any location of the Company Group with which Executive had operational involvement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Non-Solicitation</u>. The Executive agrees that during the Term, and for a period of 12 months following the termination of the Executive's employment, he shall not, without the prior written consent of the Company, directly or indirectly, employ or retain, or have or cause any other person or entity to employ or retain, any person who was employed by the Company Group or any of its divisions or affiliates while the Executive was employed by the Company, or directly or indirectly solicit or encourage any such person for employment or to leave the employ of the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Breach of this Agreement</u>. If the Executive commits a breach, or threatens to commit a breach, of any of the provisions of <u>Sections 7</u>, <u>8</u> or <u>9</u> of this Agreement, then the Company shall have the right and remedy to have those provisions specifically enforced by any court having equity jurisdiction, it being acknowledged and agreed by the Executive that the rights and privileges of the Company granted in <u>Sections 7</u>, <u>8</u> and <u>9</u> are of a special, unique and extraordinary character and any such breach or threatened breach will cause great and irreparable injury to the Company and that money damages will not provide an adequate remedy to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Notices</u>. All notices and other communications required or permitted hereunder shall be in writing (including facsimile, telegraphic, telex or cable communication) and shall be deemed to have been duly given when delivered by hand, or mailed, certified or registered mail, return receipt requested and postage prepaid:

If to the Company: Republic Airways Holdings Inc. 8909 Purdue Road Suite 300 Indianapolis, IN 46268 Attn: Chief Financial Officer

With a copy to the Chief Executive Officer

If to the Executive: Paul K. Kinstedt [Address]

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Applicable Law</u>. This Agreement was negotiated and entered into within the State of Indiana. All matters pertaining to this Agreement shall be governed by the laws of the State of Indiana applicable to contracts made and to be performed wholly therein. Nothing in this Agreement shall be construed to require the commission of any act contrary to law, and wherever there is any conflict between any provision of this Agreement and any material present or future statute, law, governmental regulation or ordinance as a result of which the parties have no legal right to contract or perform, the latter shall prevail, but in such event the provision(s) of this Agreement affected shall be curtailed and limited only to the extent necessary to bring it or them within the legal requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Entire Agreement; Modification; Consents and Waivers</u>. This Agreement contains the entire agreement of the parties with respect to the subject matter hereof and supersedes any and all prior agreements or understandings, written or oral, between the parties with respect to the subject matter hereof No interpretation, change, termination or waiver of or extension of time for performance under any provision of this Agreement shall be binding upon any party unless in writing and signed by the party intended to be bound thereby. Except as otherwise provided in this Agreement, no waiver of or other failure to exercise any right under or default or extension of time for performance under any provision or this Agreement shall affect the right of any party to exercise any subsequent right under or otherwise enforce said provision or any other provision hereof or to exercise any right or remedy in the event of any other default, whether or not similar.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Severability</u>. The parties acknowledge that, in their view, the terms of this Agreement are fair and reasonable as of the date signed by them, including as to the scope and duration of post-termination activities. Accordingly, if any one or more of the provisions contained in this Agreement shall for any reason, whether by application of existing law or law which may develop after the date of this Agreement, be determined by a court of competent jurisdiction to be excessively broad as to scope of activity, duration or territory, or otherwise unenforceable, the parties hereby jointly request such court to construe any such provision by limiting or reducing it so as to be enforceable to the maximum extent in favor of the Company compatible with then-applicable law. If any one or more of the terms, provisions, covenants or restrictions of this Agreement shall nonetheless be determined by a court of competent jurisdiction to be invalid, void or unenforceable, then the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Assignment</u>. The Company may, at its election, assign this Agreement or any of its rights hereunder. This Agreement may not be assigned by the Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Counterparts</u>. This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Arbitration</u>. Except as provided in <u>Section</u> <u>10</u>, any other dispute arising out of or asserting breach of this Agreement, or any statutory or common law claim by the Executive relating to the Executive's employment under this Agreement or the termination thereof (including any tort or discrimination claim), shall be exclusively resolved by binding statutory arbitration in accordance with the Employment Dispute Resolution Rules of the American Arbitration Association. Such arbitration process shall take place in Indianapolis, Indiana. A court of competent jurisdiction may enter judgment upon the arbitrator's award. Each party shall pay the costs and expenses of arbitration (including fees and disbursements of counsel) incurred by such party in connection with any dispute arising out of or asserting breach of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Survival</u>. The provisions of <u>Sections 7</u> through <u>20</u> of this Agreement shall survive any expiration or termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Impact on Equity Awards</u>. In the case of a termination of the Executive's employment under the circumstances provided for in this Agreement, the vesting and other terms of any equity awards (including options to purchase stock of the Company, restricted stock, restricted stock units and performance shares) held by the Executive on the date of such termination shall be governed by the applicable provisions of this Agreement notwithstanding any contrary or conflicting provision of any plan under which any such award may have been made, the Prior Agreement or any award agreement or other agreement related to any such equity award, whether now existing or hereafter executed between the Company and the Executive. Any and all such contrary or conflicting provisions in the Prior Agreement or any such award agreement or other agreement shall be amended by the execution of this Agreement to provide for vesting and other treatment in such circumstances as set forth in this Agreement, but the remaining terms of such agreements shall be unaffected hereby. For the avoidance of doubt, the parties agree that no such outstanding equity award shall vest solely due to the occurrence of a Change of Control, and any such provision in the Prior Agreement or any such award agreement or other agreement shall be deemed to be deleted from such agreement as amended by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. <u>Indemnification; D&O Insurance</u>. The Company shall, to the fullest extent allowed by law, defend, indemnify and hold harmless the Executive from and against any and all demands, claims, suits, liabilities, actions asserted or brought against the Executive or in which the Executive is made a party, including, without limitation, all litigation costs and attorneys' fees incurred by the Executive or judgments rendered against the Executive, in connection with any matter arising within the course and scope of Executive's employment with the Company or service as an officer, director or manager of the Company or any of the Subsidiaries. The Company shall advance to the Executive all reasonable costs and expenses incurred by the Executive in any such matter within thirty (30) days after its receipt of a written request for such advance. Such request shall include an undertaking by the Executive to repay the amount of such advance if it shall ultimately be determined that Executive is not entitled to be indemnified against such costs and expenses. The right of the Executive to indemnification hereunder shall vest at the time of occurrence or performance of any event, act or omission giving rise to any demand, claim, suit, liability, action or legal proceeding of the nature referred to in this <u>Section</u> <u>20</u> and, once vested, shall survive the termination of Executive's employment with the Company for any reason. To the extent that the Company maintains officers' and directors' liability insurance, you will be covered under such policy subject to the exclusions and limitations set forth therein. The provisions of this Section 20 shall survive the expiration or termination of the Executive's employment and/or this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. <u>Section 409A Compliance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any payments conditioned upon a termination of the Executive's employment will be deemed to be conditioned upon the Executive's separation from service within the meaning of Treasury Regulation Section 1.409A-1(h) and will be construed and interpreted accordingly. If the Executive is a "specified employee" within the meaning of Treasury Regulation Section 1.409A-1(i) as of the date of the Executive's separation from service, then the Executive shall not be entitled to any severance payments or other benefits pursuant to this Agreement until the earlier of (a) the date which is six months after the date of the Executive's separation from service, or (b) the date of the Executive's death. This paragraph shall only apply if, and to the extent required in order to comply with Section 409A of the Internal Revenue Code of 1986, as amended (the "Code"), and Treasury Regulation Section 1.409A-3(i)(2). Any amounts otherwise payable to the Executive upon or in the six-month period following the Executive's separation from service that are not so paid by reason of this paragraph shall be paid to the Executive (or the Executive's estate, as the case may be) as soon as practicable (and in all events within twenty days) after the expiration of such six-month period or (if applicable, the date of the Executive's death).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any taxable reimbursement of expenses payable to the Executive shall be paid to the Executive on or before the last day of the Executive's taxable year following the taxable year in which the related expense was incurred. Expense reimbursements and in-kind benefits provided to the Executive shall not be subject to liquidation or exchange for another benefit and the amount of such reimbursements or in-kind benefits that the Executive receives in one taxable year shall not affect the amount of such reimbursements or benefits that the Executive may receive in any other taxable year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) It is intended that any amounts payable under this Agreement and the Company's and the Executive's exercise of any authority or discretion hereunder shall comply with, and avoid the imputation of any tax, penalty or interest under Section 409A of the Code. This Agreement shall be construed and interpreted consistent with that intent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. <u>Adjustments to Payments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding any other provision of this Agreement, if any payment or benefit Executive would receive pursuant to this Agreement or otherwise, including accelerated vesting of any equity compensation (all such payments and/or benefits hereinafter, "Payment"), would (i) constitute a "parachute payment" within the meaning of Section 280G of the Code, and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the "Excise Tax"), then such Payment shall be either (x) provided to the Executive in full, or (y) provided to the Executive to such lesser extent which would result in no portion of such Payment being subject to the excise tax, further reduced by $5,000 (including such further reduction, the "Cutback Amount"), whichever of the foregoing amounts, when taking into account applicable federal, state, local and foreign income and employment taxes, such excise tax and other applicable taxes, (all computed at the highest applicable marginal rates), results in the receipt by the Executive, on an after-tax basis, of the greatest amount of the Payment, notwithstanding that all or a portion of such Payment may be subject to the excise tax. If a reduction in payments or benefits constituting "parachute payments" is necessary so that the Payment equals the Cutback Amount, reduction shall occur in the following order: (A) cash payments shall be reduced first and in reverse chronological order such that the cash payment owed on the latest date following the occurrence of the event triggering such excise tax will be the first

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cash payment to be reduced; (B) accelerated vesting of performance-based equity awards shall be cancelled or reduced next and in the reverse order of the date of grant for such awards (i.e., the vesting of the most recently granted awards will be reduced first), with full-value awards reduced before any performance-based stock option or stock appreciation rights are reduced; (C) health and welfare benefits shall be reduced and in reverse chronological order such that the benefit owed on the latest date following the occurrence of the event triggering such excise tax will be the first benefit to be reduced; and (D) accelerated vesting of time-based equity awards shall be cancelled or reduced last and in the reverse order of the date of grant for such awards (i.e., the vesting of the most recently granted awards will be reduced first), with full-value awards reduced before any time-based stock option or stock appreciation rights are reduced.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company shall appoint a nationally recognized accounting firm to make the determinations required hereunder and perform the foregoing calculations. The Company shall bear all expenses with respect to the determinations by such accounting firm required to be made hereunder. The accounting firm engaged to make the determinations hereunder shall provide its calculations, together with detailed supporting documentation, to the Company and Executive within 15 calendar days after the date on which right to a Payment is triggered (if requested at that time by the Company or Executive). Any good faith determinations of the accounting firm made hereunder shall be final, binding and conclusive upon the Company and Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. <u>Settlement of Outstanding Claim</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company shall pay to the Executive the amounts earned, but deferred from the 2015 AIP, in the amount of $61,479 within 14 days of the Effective Date of the Company's Plan of Reorganization.

[*Remainder of page intentionally left blank*]

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

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| | | |
|:---|:---|:---|
| REPUBLIC AIRWAYS HOLDINGS INC. | REPUBLIC AIRWAYS HOLDINGS INC. | REPUBLIC AIRWAYS HOLDINGS INC. |
| By: | /s/ Bryan Bedford | /s/ Bryan Bedford |
|  | Name: | Bryan Bedford |
|  | Title: | Chief Executive Officer, President, and Chairman of the Board |
| PAUL K. KINSTEDT | PAUL K. KINSTEDT | PAUL K. KINSTEDT |
| /s/ Paul K. Kinstedt | /s/ Paul K. Kinstedt | /s/ Paul K. Kinstedt |

---

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**EXHIBIT A** 

**FORM OF RELEASE** 

**<u>GENERAL RELEASE</u>**

In exchange for the payments and benefits set forth in the Amended and Restated Employment Agreement between Republic Airways Holdings Inc. (the "<u>Company</u>") and me dated as of February 8, 2017 (the "<u>Agreement</u>"), and to be provided following the Effective Date (as defined below) of this General Release and subject to the terms of the Agreement, and my execution (without revocation) and delivery of this General Release:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. (a) On behalf of myself, my agents, assignees, attorneys, heirs, executors and administrators, I hereby release the Company and its predecessors, successors and assigns, their current and former parents, affiliates, subsidiaries, divisions and joint ventures (collectively, the "<u>Company Group</u>") and all of their current and former officers, directors, employees, and agents, in their capacity as Company Group representatives (individually and collectively, "<u>Releasees</u>") from any and all controversies, claims, demands, promises, actions, suits, grievances, proceedings, complaints, charges, liabilities, damages, debts, taxes, allowances, and remedies of any type, including but not limited to those arising out of my employment with the Company Group (individually and collectively, "<u>Claims</u>") that I may have by reason of any matter, cause, act or omission. This release applies to Claims that I know about and those I may not know about occurring at any time on or before the date of execution of this General Release.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This General Release includes a release of all rights and Claims under, as amended, Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act of 1967, the Rehabilitation Act of 1973, the Civil Rights Acts of 1866 and 1991, the Americans with Disabilities Act of 1990, the Employee Retirement Income Security Act of 1974, the Equal Pay Act of 1963, the Family and Medical Leave Act of 1993, the Older Workers Benefit Protection Act of 1990, the Occupational Safety and Health Act of 1970, the Worker Adjustment and Retraining Notification Act of 1989 and the Sarbanes-Oxley Act of 2002, as well as any other federal, state, or local statute, regulation, or common law regarding employment, employment discrimination, termination, retaliation, equal opportunity, or wage and hour. I specifically understand that I am releasing Claims based on age, race, color, sex, sexual orientation or preference, marital status, religion, national origin, citizenship, veteran status, disability, genetic information and other legally protected categories.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) This General Release also includes a release of any Claims for breach of contract, any tortious act or other civil wrong, attorneys' fees, and all compensation and benefit claims including without limitation Claims concerning salary, bonus, and any award(s), grant(s), or purchase(s) under any equity and incentive compensation plan or program.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In addition, I am waiving my right to pursue any Claims against the Company Group and Releasees under any applicable dispute resolution procedure, including any arbitration policy.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. I acknowledge that this General Release is intended to include, without limitation, all Claims known or unknown that I have or may have against the Company Group and Releasees through the Effective Date of this General Release. Notwithstanding anything herein, I expressly reserve and do not release pursuant to this General Release (and the definition of "Claims" will not include) (i) my rights with respect to the enforcement of the Agreement, including but not limited to the right to receive severance compensation (as provided in <u>Section</u> <u>5</u> of the Agreement), if any, and other payments, benefits and indemnifications specified in the Agreement, (ii) any rights or interest under any Benefit Plans (as defined in the Agreement), (iii) any right to indemnification pursuant to the Company's Certificate of Incorporation or By-laws as in effect on the date hereof, (iv) the protections of the Company Group's directors and officers liability insurance, if any, in each case, to the same extent provided to other senior executives of the Company, (v) any claims and rights that cannot be waived by law, including but not limited to my right to file an EEOC charge but hereby waive my right to financial recovery as to any such charge, (vi) the vesting and exercise of any equity grant pursuant to the terms of the applicable equity award agreement or the applicable equity incentive plan, (vii) any rights as a stockholder of the Company, and (viii) any rights under <u>Sections 10</u> and 11 of the Agreement following termination of employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. I acknowledge that I have had at least 21 calendar days from the date of my termination of employment with the Company (the "<u>Termination Date</u>") to consider the terms of this General Release, that I have been advised to consult with an attorney regarding the terms of this General Release prior to executing it, that I have consulted with my attorney, that I fully understand all of the terms and conditions of this General Release, that I understand that nothing contained herein contains a waiver of claims arising after the date of execution of this General Release, and I am entering into this General Release knowingly, voluntarily and of my own free will. I further understand that my failure to sign this General Release and return such signed General Release to the Company, 8909 Purdue Road, Suite 300, Indianapolis, IN 46268 by 5:00 pm on the 22<sup>nd</sup> day after the Termination Date will render me ineligible for the payments and benefits described herein and in the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. I understand that once I sign and return this General Release to the Company, I have 7 calendar days to revoke it. I may do so by delivering to the Company, 8909 Purdue Road, Suite 300, Indianapolis, IN 46268 written notice of my revocation within the 7-day revocation period (the "<u>Revocation Period</u>"). This General Release will become effective on the 8<sup>th</sup> day after I sign and return it to the Company ("<u>Effective Date</u>"); provided that I have not revoked it during the Revocation Period.

YOU ARE HEREBY ADVISED BY THE COMPANY TO CONSULT WITH AN ATTORNEY BEFORE SIGNING THIS GENERAL RELEASE.

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I HAVE READ THIS GENERAL RELEASE AND UNDERSTAND ALL OF ITS TERMS. I SIGN AND ENTER THIS GENERAL RELEASE KNOWINGLY AND VOLUNTARILY, WITH FULL KNOWLEDGE OF WHAT IT MEANS.

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| |
|:---|
| PAUL K. KINSTEDT |
| Date: |

---

## Exhibit 10.23

**Exhibit 10.23.2** 

FIRST AMENDMENT TO

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

This First Amendment to Amended and Restated Employment Agreement (this "Amendment") is made and entered into as of November 14, 2017, by and between REPUBLIC AIRWAYS HOLDINGS INC., a Delaware corporation (the "Company"), and PAUL K. KINSTEDT (the "Executive").

RECITALS

Whereas, the Executive and the Company are parties to the Amended and Restated Employment Agreement dated as of February 8, 2017 (the "Employment Agreement"); and

Whereas, the Company and the Executive desire to amend certain provisions of the Employment Agreement.

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants hereinafter set forth and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Clause (i) of the third sentence of Section 4(e) of the Employment Agreement is hereby amended to read in its entirety as follows: "(i) the Company has failed to establish a reasonable and market based EIP or other long-term incentive award program to replace the Plan by November 27, 2017."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Except as provided in Section 1 above, all other provisions of the Employment Agreement shall remain in effect in accordance with their terms.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

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| | | |
|:---|:---|:---|
| REPUBLIC AIRWAYS HOLDINGS INC. | REPUBLIC AIRWAYS HOLDINGS INC. | REPUBLIC AIRWAYS HOLDINGS INC. |
| By: | /s/ Bryan K. Bedford | /s/ Bryan K. Bedford |
|  | Name: | Bryan K. Bedford |
|  | Title: | Chief Executive Officer and President |
| PAUL K. KINSTEDT | PAUL K. KINSTEDT | PAUL K. KINSTEDT |
| /s/ Paul K. Kinstedt | /s/ Paul K. Kinstedt | /s/ Paul K. Kinstedt |

---

## Exhibit 10.23

**Exhibit 10.23.3** 

SECOND AMENDMENT TO

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

This Second Amendment to Amended and Restated Employment Agreement (this "Amendment") is made and entered into as of November 27, 2017, by and between REPUBLIC AIRWAYS HOLDINGS INC., a Delaware corporation (the "Company"), and PAUL K. KINSTEDT (the "Executive").

RECITALS

Whereas, the Executive and the Company are parties to the Amended and Restated Employment Agreement dated as of February 8, 2017, as amended (the "Employment Agreement"); and

Whereas, the Company and the Executive desire to amend certain provisions of the Employment Agreement.

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants hereinafter set forth and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Section 3(d) of the Employment Agreement is hereby amended by replacing the reference to "Equity Incentive Plan (the "EIP")" with "Long Term Incentive Plan (the "EIP")" and adding the following sentence at the end thereof: "Notwithstanding any provision in the EIP or applicable award agreement to the contrary, the long-term incentive awards to be granted to the Executive under the EIP will not be subject to discretionary downward adjustment by the Compensation Committee as otherwise permissible under Section 5(c) of the EIP following achievement of the performance objectives applicable such awards."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Except as provided in Section 1 above, all other provisions of the Employment Agreement shall remain in effect in accordance with their terms.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

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| | | |
|:---|:---|:---|
| REPUBLIC AIRWAYS HOLDINGS INC. | REPUBLIC AIRWAYS HOLDINGS INC. | REPUBLIC AIRWAYS HOLDINGS INC. |
| By: | /s/ Bryan K. Bedford | /s/ Bryan K. Bedford |
|  | Name: | Bryan K. Bedford |
|  | Title: | Chief Executive Officer and President |
| PAUL K. KINSTEDT | PAUL K. KINSTEDT | PAUL K. KINSTEDT |
| /s/ Paul K. Kinstedt | /s/ Paul K. Kinstedt | /s/ Paul K. Kinstedt |

---

## Exhibit 10.24

**Exhibit 10.24.1** 

**AMENDED AND RESTATED** 

**<u>EMPLOYMENT AGREEMENT</u>**

THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this "Agreement") is made and entered into as of February 8, 2017, by and between REPUBLIC AIRWAYS HOLDINGS INC., a Delaware corporation (the "Company"), and MATTHEW J. KOSCAL (the "Executive").

**RECITALS** 

WHEREAS, the Executive and the Company are parties to the Employment Agreement dated as of November 24, 2015 (the "Prior Agreement"); and

WHEREAS this Agreement shall become effective upon the Effective Date of the Company's Plan of Reorganization; and

WHEREAS, the Company and the Executive desire to amend certain provisions of the Prior Agreement and to enter into this Agreement.

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants hereinafter set forth and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Employment</u>. The Company agrees to continue to employ the Executive, and the Executive agrees to render his services to the Company, as its Senior Vice President, Chief Administrative Officer, during the Term (as defined below). In connection with his employment as Senior Vice President, Chief Administrative Officer, the Executive shall serve without additional payment or compensation of any kind as an officer of any other direct or indirect subsidiary or affiliate of the Company designated by the Company's Chief Executive Officer (collectively, the "Subsidiaries"). The Executive shall render his services at the direction of the Company's Chief Executive Officer at the Company's offices in Indianapolis, Indiana. The Executive agrees to use his best efforts to promote and further the business, reputation and good name of the Company and the Subsidiaries (collectively, the "Company Group") and the Executive shall promptly and faithfully comply with all instructions, directions, requests, rules and regulations made or issued from time to time by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Term</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Unless earlier terminated by the Executive's death or Disability (as defined below), the term of the Executive's employment pursuant to this Agreement (the "Term") shall continue until November 30, 2018 and shall be automatically renewed for successive one-year periods thereafter unless either party shall have given notice to terminate the Executive's employment no later than ninety (90) days prior to the end of the then current Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding the foregoing, the Executive's employment may be terminated by the Company or by the Executive as provided in <u>Section</u> <u>4</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Compensation and Benefits</u>. As full and complete compensation for all the Executive's services hereunder, during the Term the Company shall pay the Executive the compensation and provide the Executive with the benefits described below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Base Salary</u>. During the Term, the Company shall pay the Executive an annual base salary of $230,000 ("Base Salary"). The Board shall review the Executive's Base Salary each year and shall have the right in its discretion to increase such Base Salary. With the Executive's prior consent, the Executive's Base Salary may be reduced by an amount and for a period mutually agreed between the Executive and the Company so long as such reduction is made in conjunction with similar reductions in base salary for other executives or employees of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Annual Incentive Plan</u>. In addition to the Base Salary, during the Term, the Executive will have an annual incentive opportunity target equal to 60% of the Executive's Base Salary for the year under the Company's Annual Incentive Plan ("AIP"). Collectively any amounts earned under the AIP and earned under the KEIP (as defined below) shall make up the Executive's annual incentive compensation ("Bonus"). The amount of the AIP for any year may be more or less than the target amount, but not more than 120% of the Executive's Base Salary for the year, and will be determined, in its sole discretion, by the Compensation Committee based upon certain performance measures which shall be approved by the Compensation Committee in its discretion and communicated to the Executive for 2017 by not later than 90 days following the Effective Date of the Company's Plan of Reorganization and each February during the Term thereafter. The earned Bonus for each prior year will be determined and paid by March 15 of the following year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Discretionary Bonus</u>. The Executive may also be awarded one or more discretionary bonuses based on his individual performance or other factors as may be determined by the Compensation Committee in its sole discretion from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Long-Term Incentive Awards</u>. The Executive shall be entitled to receive long-term incentive awards under the Company's Equity Incentive Plan ("EIP"), which is to be approved and implemented by the Board of Directors, and as may be amended from time to time, including, without limitation, options, restricted stock, restricted stock units, stock appreciation rights, performance shares or other awards, at such times, in such forms and in such amounts as may be determined by the Compensation Committee from time to time. The terms of any such awards shall be governed by the EIP and any applicable award agreement related thereto entered into between the Company and the Executive, except as otherwise provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Transitional Long-Term Incentive</u>. In the absence of an EIP as of January 1, 2017, the Executive shall be eligible to receive a cash incentive under the Company's Transitional Long-Term Incentive Plan (the "T-LTI") for calendar year 2017 to be approved and implemented by the Board of Directors. The T-LTI will be awarded in 2017, but vest and become payable as follows: (i) 1/3<sup>rd</sup> on February 1, 2018, (ii) 1/3<sup>rd</sup> on February 1, 2019, (iii) and 1/3<sup>rd</sup> on February 1, 2020 (each a "T-LTI Payment Date"). The range of possible T-LTI performance awards payments for any T-LTI Payment Date shall be established by the Compensation Committee. The amount actually earned by the Executive, if any, will be subject to, and determined based upon, achievement of certain performance measures, which shall be established and measured by the Compensation Committee.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Medical</u> <u>& 401K Benefits</u>. The Executive shall be entitled to participate in any retirement, 401K, disability, medical, pension, profit sharing, group insurance, or any other plan or arrangement, or in any other benefits now or hereafter generally available to executives of the Company, in each case to the extent that the Executive shall be eligible under the general provisions thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Annual Physical</u>. The Company will arrange and pay for an annual physical of the Executive to be performed at the Indiana University Medical Center, or other facility chosen by the Executive once per year during the Term. The Executive acknowledges that this is a taxable benefit, and he authorizes the Company to take any required tax withholding (as reasonably determined by the Company) on account of such benefit from his other wages.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Vacation</u>. The Executive shall be entitled to vacation in accordance with Company policy, which vacation shall be taken on dates to be selected by mutual agreement of the Company and the Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Reimbursement for Expenses</u>. The Executive shall be entitled to reimbursement for ordinary and necessary business expenses incurred by the Executive in the course of his employment in accordance with the Company's policies from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Termination of Employment</u>. The Executive's employment hereunder may be terminated during the Term in accordance with this <u>Section</u> <u>4</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Death</u>. In the event the Executive dies during the Term, the Executive's employment shall automatically terminate on the date of death. In such event, the Executive's estate shall be entitled to receive his Base Salary and a prorated portion of his target Bonus for the year in which termination occurs, in each case through the effective date of the termination of his employment, <u>plus</u> severance compensation provided for in <u>Section</u> <u>5(a)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Disability</u>. The Company, by written notice to the Executive, may immediately terminate the Executive's employment in the event of the Executive's Disability. As used herein, "Disability" shall mean the Executive's inability, with reasonable accommodation, to perform the essential functions of his position, by reason of physical or mental incapacity, for a consecutive period of 90 days or for a total period of 180 days in any 360-day period. In the event the Executive's employment is terminated due to the Executive's Disability, the Executive shall be entitled to receive his Base Salary and a prorated portion of his target Bonus for the year in which termination occurs, in each case through the effective date of the termination of his employment, <u>plus</u> the severance compensation provided for in <u>Section</u> <u>5(a)</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Termination for Cause by the Company</u>. The Company, by written notice to the Executive, may immediately terminate the Executive's employment for Cause. As used herein, a termination by the Company "for Cause" shall mean that a good faith determination by the Chief Executive Officer that the Executive has (i) willfully refused to perform a material part of his duties hereunder, (ii) willfully failed to follow the direction of the Chief Executive Officer, (iii) materially breached the provisions of <u>Sections 7</u>, <u>8</u> or <u>9</u> hereof, (iv) acted fraudulently or dishonestly in his relations with the Company, (v) committed larceny, embezzlement, conversion or any other act involving the misappropriation of Company funds or assets in the course of his employment, or (vi) been indicted or convicted of any felony or other crime involving an act of moral turpitude. In the event the Executive's employment is terminated for Cause, the Executive shall be entitled to receive only his Base Salary through the effective date of the termination of his employment, and shall not be entitled to receive any severance compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Termination other than for Cause by the Company</u>. The Company, by written notice to the Executive, may terminate the Executive's employment other than for Cause, effective as of the date specified by the Company in the notice, which date shall not be earlier than the date of the notice. In such event, the Executive shall be entitled to receive his Base Salary and a prorated portion of his target Bonus for the year in which termination occurs, in each case through the effective date of the termination of his employment, <u>plus</u> the severance compensation provided for in <u>Section</u> <u>5(b)</u> or <u>Section</u> <u>5(c)</u>,<u> </u>as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Termination for Good Reason by the Executive</u>. The Executive, by providing at least 30 days prior written notice to the Company, may terminate his employment hereunder for Good Reason, provided that the Company shall have the right to cure such Good Reason within such 30-day period. In order to constitute a valid notice of a termination for Good Reason, the notice must be received by the Board of Directors or Chief Executive Officer of the Company no later than 60 days following the initial occurrence of any event asserted to constitute Good Reason. As used herein, a termination by the Executive "for Good Reason" shall mean that (i) the Company has failed to establish a reasonable and market based EIP or other long-term incentive award program by November 15, 2017; (ii) the Company has materially diminished the duties or responsibilities of the Executive with respect to the Company (iii) the Company has reduced the Executive's Base Salary or Bonus opportunity; (iv) the Company has changed the principal location at which the Executive must perform his services to a location more than 25 miles from the current location of the Company's headquarters in Indianapolis, Indiana without the consent of the Executive; or (v) the Company has materially breached the terms of this Agreement. In the event the Executive's employment is terminated for Good Reason, the Executive shall be entitled to receive his Base Salary and a prorated portion of his target Bonus for the year in which termination occurs, in each case through the effective date of the termination of his employment, <u>plus</u> the severance compensation provided for in <u>Section</u> <u>5(b)</u> or <u>Section</u> <u>5(c)</u>, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Termination other than for Good Reason by the Executive</u>. The Executive, by providing at least 60 days prior written notice to the Company, may terminate his employment other than for Good Reason. In such event, the Executive shall be entitled to receive only his Base Salary through the effective date of the termination of his employment and shall not be entitled to receive any severance compensation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Impact of Termination for Cause or without Good Reason on Equity Awards</u>. If the Executive's employment is terminated (i) by the Company for Cause, or (ii) by the Executive other than for Good Reason, all options to purchase shares of the Company's common stock and other equity awards held by the Executive on the effective date of termination that have not vested as of such date shall terminate immediately following the termination of the Executive's employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Timing of Payments</u>. The payment of any amounts due to the Executive pursuant to this <u>Section</u> <u>4</u> (other than severance compensation, if any, which shall be paid as provided in <u>Section</u> <u>5)</u> shall be paid no later than the next regular payroll date following the effective date of the termination of the Executive's employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Severance Compensation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Termination Upon Death or Disability</u>. In the event of the Executive's death or in the event the Company terminates the Executive's employment as a result of the Executive's Disability, the Company shall pay to the Executive or his estate, as the case may be, as severance compensation an amount equal to two times the Executive's Base Salary as then in effect, <u>plus</u> two times the Executive's Bonus for the last calendar year preceding the year in which his death or termination on account of Disability occurs. This severance compensation shall be paid in a lump sum on the first day of the month occurring at least thirty days following the effective date of the termination of employment, provided that the Company has received a release following termination of employment signed by the Executive or his personal representative, substantially in the form attached hereto as <u>Exhibit A</u>, and that such release is no longer revocable on the payment date. In addition, any options to purchase shares of the Company's common stock, and any awards of restricted stock, restricted stock units or performance shares, in each case that are held by the Executive on the effective date of termination and have not vested shall be treated in the same manner as provided therefor in <u>Section</u> <u>5(b)</u>. The Executive agrees that the Company may satisfy its obligations to provide cash severance compensation pursuant to this <u>Section</u> <u>5(a)</u> by purchasing and maintaining one or more insurance policies payable to either the Executive or his designees or to the Company (with or without further payment to the Executive or such designees) upon the Executive's death or as a result of the Executive's Disability; provided that the proceeds of such insurance shall be payable to the Executive on the date set forth herein. The Executive agrees to cooperate with the Company in obtaining such insurance, including by participating in such physical examinations and providing such personal information as may be reasonably requested by the Company's insurers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Termination by the Company Without Cause or by the Executive for Good Reason</u>. If the Executive's employment is terminated by the Company other than for Cause, or by the Executive for Good Reason, in either case prior to a Change of Control (as defined herein), and provided that the Company has received a release following termination of employment signed by the Executive or his personal representative, substantially in the form attached hereto as <u>Exhibit A</u>, and that such release is no longer revocable on the first payment date

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Company shall pay to the Executive as severance compensation an amount equal to two times the Executive's Base Salary as then in effect <u>plus</u> two times the Executive's Bonus earned for the Company's last calendar year. This severance compensation shall be paid in 12 equal monthly installments following a qualifying event, with the first payment payable on the first regular payroll date occurring in the calendar month following the date of the Executive's termination of employment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if any amounts remain due to the Executive from the Key Employee Incentive Program ("KEIT') established in 2016, such outstanding awards shall immediately be paid in a lump sum within 14 days following the termination of the Executive;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in addition to the amounts paid according to Sections 5(b)(i—ii), the aggregate value of all outstanding unvested long-term incentive awards (including any T-LTI or EIP) held by the Executive that would have vested in accordance with their terms prior to the first anniversary of the effective date of termination shall vest on the effective date of Executive's termination and, be calculated based on performance factors that may already have been achieved, or may reasonably be assumed to be achieved and calculable at the time of termination, and be paid in a lump sum within 14 days following the termination of the Executive;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) with respect to any outstanding unvested options to purchase shares of the Company's common stock held by the Executive that vest in accordance with Section 5(b)(iii), such options shall remain exercisable for a period of one year following such effective date (but in no event beyond the term of the option); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the Executive shall be entitled to receive, at the time when a payout with respect to any performance shares held by the Executive on the effective date of termination would otherwise have been made, a pro-rata portion (based on the number of days during the applicable performance period on which the Executive was employed) of the number of such performance shares that would have been earned by the Executive in accordance with the terms thereof (including the satisfaction of the performance conditions related thereto based on the Company's actual performance) if the Executive had been employed on the date required to earn such shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Termination following a Change of Control</u>. If the Executive's employment is terminated by the Company other than for Cause, or by the Executive for Good Reason, in either case within 18 months after a Change of Control, and provided that the Company has received a release following termination of employment signed by the Executive or his personal representative, substantially in the form attached hereto as <u>Exhibit A</u>, and that such release is no longer revocable on the payment date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Company shall pay to the Executive as severance compensation an amount equal to two times the Executive's Base Salary as then in effect <u>plus</u> two times the Executive's Bonus earned for the Company's last calendar year. This severance compensation shall be paid in a lump sum on the first day of the month occurring at least 30 days following the effective date of the termination of employment;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if any amounts remain due to the Executive from the KEIP established in 2016, such outstanding awards shall immediately be paid in a lump sum within 14 days following the termination of the Executive;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in addition to the amounts paid according to Sections 5(c)(i—ii), the aggregate value of all outstanding unvested long-term incentive awards (including any T-LTI or EIP) held by the Executive shall vest on the effective date of Executive's termination and, calculated based on performance factors that may already have been achieved, or may reasonably be assumed to be achieved and calculable at the time of termination, and be paid in a lump sum within 14 days following the termination of the Executive;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) with respect to any outstanding unvested options to purchase shares of the Company's common stock held by the Executive that vest in accordance with Section 5(c)(iii), such options shall remain exercisable for a period of 90 days following the effective date of such termination; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the Executive shall be entitled to receive, at the time when the severance compensation provided for in clause (i) of this <u>Section</u> <u>5(c)</u> is paid, a pro-rata portion (based on the number of days during the applicable performance period on which the Executive was employed) of the number of such performance shares that would have been earned by the Executive if the performance conditions related thereto were satisfied at the target level for such awards and the Executive had been employed on the date required to earn such shares.

As used herein, "Change of Control" shall mean the occurrence, after the date hereof of any of the following: (1) the acquisition by any person or group of affiliated or associated persons of a majority or more of the voting power of the Company; (2) the consummation of a sale of all or substantially all of the assets of the Company; (3) the dissolution of the Company or (4) the consummation of any merger, consolidation, or reorganization involving the Company in which, immediately after giving effect to such merger, consolidation or reorganization, less than majority of the total voting power of outstanding stock of the surviving or resulting entity is then "beneficially owned" (within the meaning of Rule 13d-3 under the Securities Exchange Act of 1934, as amended) in the aggregate by the stockholders of the Company immediately prior to such merger, consolidation or reorganization. Notwithstanding the preceding provisions, an event or series of events shall not constitute a "Change of Control" unless it is a change in the ownership or effective control of the corporation, or in the ownership of a substantial portion of the assets of the corporation, within the meaning of Code Section 409A(a)(2)(A)(v) and the regulations thereunder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Termination by the Executive or the Company at End of Term</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If either the Executive or the Company gives notice to terminate the Executive's employment at the end of the then-current Term pursuant to <u>Section</u> <u>2(a)</u> and the Executive and the Company do not reach agreement regarding the terms of the Executive's continued employment following the end of the Term, unless otherwise agreed by the Company in writing, the Executive shall continue to be employed and to provide services to the Company in the same manner as prior to the giving of such notice for an additional period of 90 days following the last day of the Term (the "Transition Period"). Unless terminated earlier as provided in this Agreement, the Executive's employment shall terminate at the end of the Transition Period. The Executive's duties during this period shall also include those things that are reasonably necessary to assure a smooth transition of the Executive's duties to his successor or to such other persons as the Company may determine and any diminution of the Executive's duties during this period shall not constitute Good Reason under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) During the Transition Period, the Executive shall (A) be entitled to continue to receive his Base Salary and shall continue to accrue a pro-rata portion of his target Bonus, in each case as in effect at the end of the Term and for the period of his continued employment, (B) shall continue to participate in the Company's benefit programs described in <u>Section</u> <u>3(f)</u>, and (C) shall continue to be reimbursed for business expenses as provided in <u>Section</u> <u>3(i)</u>. Except as provided in <u>Section</u> <u>5(d)(iii)</u>, the Executive shall not be entitled to any severance compensation as a result of the termination of his employment during or at the end of the Transition Period. Outstanding equity awards held by the Executive shall continue to be outstanding, shall continue to vest and may be exercised in accordance with their terms, and shall otherwise be unaffected while the Executive is employed during the Transition Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Notwithstanding anything in this <u>Section</u> <u>5</u> to the contrary, upon the earlier of (A) the termination of the Executive's employment upon completion of the Transition Period, or (B) the termination of the Executive's employment by the Company during the Transition Period other than for Cause, and provided that the Company has received a release following termination of employment signed by the Executive or his personal representative, substantially in the form attached hereto as <u>Exhibit A</u>, and that such release is no longer revocable on the first payment date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the Executive shall be entitled to receive from the Company an amount equal to his Base Salary and a prorated portion of his target Bonus for the year in which termination occurs, in each case through the effective date of the termination of his employment, together with any Bonus related to a prior year that has been fully earned by the Executive but not paid to him as of the date of termination, which amount shall be paid no later than the next regular payroll date following the effective date of the termination of the Executive's employment;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Executive shall be entitled to receive severance compensation in an amount equal to one times the Executive's Base Salary as in effect at the end of the Term, which amount shall be paid in 12 equal monthly installments following the effective date of termination, with the first payment payable on the first regular payroll date occurring in the calendar month following the effective date of termination of the Executive's employment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) if any amounts remain due to the Executive from the KEIP established in 2016, such outstanding awards shall immediately be paid in a lump sum within 14 days following the termination of the Executive;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) if termination under Section 5(d) is a result of a termination initiated by the Company, in addition to the amounts paid according to Sections 5(d), the aggregate value of all outstanding unvested long-term incentive awards (including any T-LTI or EIP) held by the Executive on the effective date of termination of the Executive's employment shall vest on such effective date and, calculated based on performance factors that may already have been achieved, or may reasonably be assumed to be achieved and calculable at the time of termination, and be paid in a lump sum within 14 days following the termination of the Executive; however if termination under Section 5(d) is a result of a termination initiated by the Executive, in addition to the amounts paid according to Sections 5(d), the aggregate value of all outstanding unvested long-term incentive awards (including any T-LTI or EIP) held by the Executive that would have vested in accordance with their terms prior to the first anniversary of the effective date of termination shall vest on the effective date of Executive's termination and, calculated based on performance factors that may already have been achieved, or may reasonably be assumed to be achieved and calculable at the time of termination, and be paid in a lump sum within 14 days following the termination of the Executive; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) the Executive shall be entitled to receive, at the time when a payout with respect to any performance shares held by the Executive on the effective date of termination would otherwise have been made, a pro-rata portion (based on the number of days during the applicable performance period on which the Executive was employed) of the number of such performance shares that would have been earned by the Executive in accordance with the terms thereof (including the satisfaction of the performance conditions related thereto based on the Company's actual performance) if the Executive had been employed on the date required to earn such shares.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Continuation of Benefits</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Medical Benefits</u>. Upon termination of the Executive's employment for any reason, voluntary or involuntary, with or without Cause, the Company shall pay the Executive $2,500 each month for a period of 24 months following the effective date of the termination of the Executive's employment for the cost of health insurance from a source other than the Company, for himself, his spouse and his eligible dependents, provided that the Executive presents evidence of such insurance to the Company. The Company will begin the monthly payments to the Executive 30 days after the termination of the Executive's employment and thereafter on the 15th day of each subsequent month during the 24-month period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Travel Privileges</u>. Upon termination of the Executive's employment for any reason, voluntary or involuntary, with or without Cause, the Company shall provide the Executive for a period 36 months following the effective date of the termination of the Executive's employment a Universal Air Travel Plan, Inc. (UATP) card in the amount of $10,000 annually that the Executive, his spouse and his dependents can use for travel. The Executive shall be responsible for any applicable tax withholding associated with such benefit. The Company will provide the UATP card to the Executive within 30 days of the termination of the Executive's employment and thereafter on each of the first and second anniversaries of such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>No Mitigation; No Offset</u>. Notwithstanding anything in this Section 5 to the contrary, Executive shall not be required to mitigate the amount of any severance payments provided under this Section 5 by seeking other employment, and the amount of such severance payments shall not be reduced by any compensation earned by Executive from any source, including, without limitation, salary, sign-on or annual bonus compensation, consulting fees, and commission payments. The severance payments provided for in this Section 5 are in lieu of any other severance or income continuation or protection under any Company plan that may now or hereafter exist.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>No Other Compensation; Withholding</u>. Except as otherwise expressly provided herein, or in any other written document executed by the Company and the Executive, no other compensation or other consideration shall become due or payable to the Executive on account of the services rendered to the Company Group. The Company shall have the right to deduct and withhold from the compensation payable to the Executive hereunder any amounts required to be deducted and withheld under the provisions of any statute, regulation, ordinance, order or any other amendment thereto, heretofore or hereafter enacted, requiring the withholding or deduction of compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Confidential Information</u>. The Executive recognizes and acknowledges that he shall receive in the course of his employment hereunder certain confidential information and trade secrets concerning the Company Group's business and affairs which may be of great value to the Company Group. The Executive therefore agrees that he will not disclose any such information relating to the Company Group, the Company Group's personnel or their operations other than in the ordinary course of business or in any way use such information in any manner which could adversely affect the Company Group's business, except as required by law or to defend or enforce Executive's rights under this Agreement. For purposes of this Agreement, the terms "trade secrets" and "confidential information" shall include any and all information concerning the business and affairs of the Company Group and any division or other affiliate of the Company Group that is not

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generally available to the public. The Company may, formally or informally, establish, adopt, implement or utilize procedures or actions that are designed to monitor or protect Company Group's confidential information. Executive hereby irrevocably consents, without the right to receive further notice, to any or all of these procedures or actions that may be established, adopted, implemented, utilized or enforced by the Company Group. The Company Group shall have the right to establish, adopt, implement, utilize or enforce these procedures at any time during Executive's employment with Company Group and during any period in which any restrictive covenants contained in this Agreement are facially or legally applicable. Executive expressly WAIVES the right to challenge the enforceability of any of these procedures in any legal action seeking to enforce this Agreement or to recover for Executive's breach or alleged breach of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Non-Competition</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Executive agrees that without the prior written consent of the Chief Executive Officer during the Term and for a period of 12 months following the termination of the Executive's employment, he will not participate as an advisor, partner, joint venturer, investor, lender, consultant or in any other capacity in any business transaction or proposed business transaction (i) with respect to which the Executive had a material personal involvement on behalf of the Company Group during the last 12 months of his employment with the Company, or (ii) that could reasonably be expected to compete with the Company Group's business or operations or proposed or contemplated business or transactions of the Company Group that are (A) known by the Executive as of the date of such termination or expiration, and (B) contemplated by the Company Group to proceed during the 12-month period following such termination or expiration. For these purposes, the mere ownership by the Executive of securities of a public company not in excess of 2% of any class of such securities shall not be considered to be competition with the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) During any period when the Company is providing severance compensation to the Executive (other than any pro-rata payout of performance shares pursuant to <u>Section</u> <u>5(b)(iv)</u> or <u>Section</u> <u>5(d)(iii)</u>), Executive agrees to refrain from any competition with Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To the fullest extent permitted by applicable law, for a period of 12 months after the termination of employment with Company (for any reason, including resignation), Executive, on behalf of any entity in competition with the Company Group, in any capacity, may not, directly or indirectly, in a competing capacity, solicit or obtain any business from any present customer of the Company Group with whom Executive had contact or received information from the Company Group. It is understood and agreed that "present customer" is defined to mean any entity with whom the Company Group had an "ongoing business relationship" at the time of the termination of Executive's employment with the Company. An "ongoing business relationship" (specifically excluding non-competing vendor relationships) is generally understood and agreed to mean: (i) services or goods were provided by the Company Group to the entity during the employment of Executive by Company; (ii) services or goods had been contracted for or ordered by the entity during the employment of Executive by the Company Group; or (iii) negotiations were in progress between the entity and the Company Group for the providing of goods or services by the Company Group to the entity at the time of the termination of the employment of Executive. It is understood and agreed that past customers and prospective customers are not "present customers" protected under the terms of this provision.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) To the fullest extent permitted by applicable law, in recognition of the global nature of the Company Group's business, and Executive's access to the Company Group's confidential information, for a period of 12 months after the termination of employment with Company (for any reason, including resignation), Executive, on behalf of any entity in competition with the Company Group, may not, directly or indirectly, compete with the Company Group: (i) anywhere in the world; (ii) in North America; (iii) in the United States; (iv) in Indiana; (v) within a 25-mile radius of any location of the Company Group with which Executive had operational involvement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Non-Solicitation</u>. The Executive agrees that during the Term, and for a period of 12 months following the termination of the Executive's employment, he shall not, without the prior written consent of the Company, directly or indirectly, employ or retain, or have or cause any other person or entity to employ or retain, any person who was employed by the Company Group or any of its divisions or affiliates while the Executive was employed by the Company, or directly or indirectly solicit or encourage any such person for employment or to leave the employ of the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Breach of this Agreement</u>. If the Executive commits a breach, or threatens to commit a breach, of any of the provisions of <u>Sections 7</u>, <u>8</u> or <u>9</u> of this Agreement, then the Company shall have the right and remedy to have those provisions specifically enforced by any court having equity jurisdiction, it being acknowledged and agreed by the Executive that the rights and privileges of the Company granted in <u>Sections 7</u>, <u>8</u> and <u>9</u> are of a special, unique and extraordinary character and any such breach or threatened breach will cause great and irreparable injury to the Company and that money damages will not provide an adequate remedy to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Notices</u>. All notices and other communications required or permitted hereunder shall be in writing (including facsimile, telegraphic, telex or cable communication) and shall be deemed to have been duly given when delivered by hand, or mailed, certified or registered mail, return receipt requested and postage prepaid:

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| | |
|:---|:---|
| If to the Company: | Republic Airways Holdings Inc. |
|  | 8909 Purdue Road<br> Suite 300<br> Indianapolis, IN 46268 |
|  | Attn: Chief Financial Officer |
| With a copy to the Chief Executive Officer | With a copy to the Chief Executive Officer |
| If to the Executive: | Matthew J. Koscal |
|  | [Address] |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Applicable Law</u>. This Agreement was negotiated and entered into within the State of Indiana. All matters pertaining to this Agreement shall be governed by the laws of the State of Indiana applicable to contracts made and to be performed wholly therein. Nothing in this Agreement shall be construed to require the commission of any act contrary to law, and wherever there is any conflict between any provision of this Agreement and any material present or future statute, law, governmental regulation or ordinance as a result of which the parties have no legal right to contract or perform, the latter shall prevail, but in such event the provision(s) of this Agreement affected shall be curtailed and limited only to the extent necessary to bring it or them within the legal requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Entire Agreement; Modification; Consents and Waivers</u>. This Agreement contains the entire agreement of the parties with respect to the subject matter hereof and supersedes any and all prior agreements or understandings, written or oral, between the parties with respect to the subject matter hereof. No interpretation, change, termination or waiver of or extension of time for performance under any provision of this Agreement shall be binding upon any party unless in writing and signed by the party intended to be bound thereby. Except as otherwise provided in this Agreement, no waiver of or other failure to exercise any right under or default or extension of time for performance under any provision or this Agreement shall affect the right of any party to exercise any subsequent right under or otherwise enforce said provision or any other provision hereof or to exercise any right or remedy in the event of any other default, whether or not similar.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Severability</u>. The parties acknowledge that, in their view, the terms of this Agreement are fair and reasonable as of the date signed by them, including as to the scope and duration of post-termination activities. Accordingly, if any one or more of the provisions contained in this Agreement shall for any reason, whether by application of existing law or law which may develop after the date of this Agreement, be determined by a court of competent jurisdiction to be excessively broad as to scope of activity, duration or territory, or otherwise unenforceable, the parties hereby jointly request such court to construe any such provision by limiting or reducing it so as to be enforceable to the maximum extent in favor of the Company compatible with then-applicable law. If any one or more of the terms, provisions, covenants or restrictions of this Agreement shall nonetheless be determined by a court of competent jurisdiction to be invalid, void or unenforceable, then the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Assignment</u>. The Company may, at its election, assign this Agreement or any of its rights hereunder. This Agreement may not be assigned by the Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Counterparts</u>. This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Arbitration</u>. Except as provided in <u>Section</u> <u>10</u>, any other dispute arising out of or asserting breach of this Agreement, or any statutory or common law claim by the Executive relating to the Executive's employment under this Agreement or the termination thereof (including any tort or discrimination claim), shall be exclusively resolved by binding statutory arbitration in accordance with the Employment Dispute Resolution Rules of the American Arbitration Association. Such arbitration process shall take place in Indianapolis, Indiana. A court of competent jurisdiction may enter judgment upon the arbitrator's award. Each party shall pay the costs and expenses of arbitration (including fees and disbursements of counsel) incurred by such party in connection with any dispute arising out of or asserting breach of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Survival</u>. The provisions of <u>Sections 7</u> through <u>20</u> of this Agreement shall survive any expiration or termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Impact on Equity Awards</u>. In the case of a termination of the Executive's employment under the circumstances provided for in this Agreement, the vesting and other terms of any equity awards (including options to purchase stock of the Company, restricted stock, restricted stock units and performance shares) held by the Executive on the date of such termination shall be governed by the applicable provisions of this Agreement notwithstanding any contrary or conflicting provision of any plan under which any such award may have been made, the Prior Agreement or any award agreement or other agreement related to any such equity award, whether now existing or hereafter executed between the Company and the Executive. Any and all such contrary or conflicting provisions in the Prior Agreement or any such award agreement or other agreement shall be amended by the execution of this Agreement to provide for vesting and other treatment in such circumstances as set forth in this Agreement, but the remaining terms of such agreements shall be unaffected hereby. For the avoidance of doubt, the parties agree that no such outstanding equity award shall vest solely due to the occurrence of a Change of Control, and any such provision in the Prior Agreement or any such award agreement or other agreement shall be deemed to be deleted from such agreement as amended by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. <u>Indemnification; D&O Insurance</u>. The Company shall, to the fullest extent allowed by law, defend, indemnify and hold harmless the Executive from and against any and all demands, claims, suits, liabilities, actions asserted or brought against the Executive or in which the Executive is made a party, including, without limitation, all litigation costs and attorneys' fees incurred by the Executive or judgments rendered against the Executive, in connection with any matter arising within the course and scope of Executive's employment with the Company or service as an officer, director or manager of the Company or any of the Subsidiaries. The Company shall advance to the Executive all reasonable costs and expenses incurred by the Executive in any such matter within thirty (30) days after its receipt of a written request for such advance. Such request shall include an undertaking by the Executive to repay the amount of such advance if it shall ultimately be determined that Executive is not entitled to be indemnified against such costs and expenses. The right of the Executive to indemnification hereunder shall vest at the time of occurrence or performance of any event, act or omission giving rise to any demand, claim, suit, liability, action or legal proceeding of the nature referred to in this <u>Section</u> <u>20</u> and, once vested, shall survive the termination of Executive's employment with the Company for any reason. To the extent that the Company maintains officers' and directors' liability insurance, you will be covered under such policy subject to the exclusions and limitations set forth therein. The provisions of this Section 20 shall survive the expiration or termination of the Executive's employment and/or this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. <u>Section 409A Compliance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any payments conditioned upon a termination of the Executive's employment will be deemed to be conditioned upon the Executive's separation from service within the meaning of Treasury Regulation Section 1.409A-1(h) and will be construed and interpreted accordingly. If the Executive is a "specified employee" within the meaning of Treasury Regulation Section 1.409A-1(i) as of the date of the Executive's separation from service, then the Executive shall not be entitled to any severance payments or other benefits pursuant to this Agreement until the earlier of (a) the date which is six

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months after the date of the Executive's separation from service, or (b) the date of the Executive's death. This paragraph shall only apply if, and to the extent required in order to comply with Section 409A of the Internal Revenue Code of 1986, as amended (the "Code"), and Treasury Regulation Section 1.409A-3(i)(2). Any amounts otherwise payable to the Executive upon or in the six-month period following the Executive's separation from service that are not so paid by reason of this paragraph shall be paid to the Executive (or the Executive's estate, as the case may be) as soon as practicable (and in all events within twenty days) after the expiration of such six-month period or (if applicable, the date of the Executive's death).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any taxable reimbursement of expenses payable to the Executive shall be paid to the Executive on or before the last day of the Executive's taxable year following the taxable year in which the related expense was incurred. Expense reimbursements and in-kind benefits provided to the Executive shall not be subject to liquidation or exchange for another benefit and the amount of such reimbursements or in-kind benefits that the Executive receives in one taxable year shall not affect the amount of such reimbursements or benefits that the Executive may receive in any other taxable year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) It is intended that any amounts payable under this Agreement and the Company's and the Executive's exercise of any authority or discretion hereunder shall comply with, and avoid the imputation of any tax, penalty or interest under Section 409A of the Code. This Agreement shall be construed and interpreted consistent with that intent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. <u>Adjustments to Payments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding any other provision of this Agreement, if any payment or benefit Executive would receive pursuant to this Agreement or otherwise, including accelerated vesting of any equity compensation (all such payments and/or benefits hereinafter, "Payment"), would (i) constitute a "parachute payment" within the meaning of Section 280G of the Code, and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the "Excise Tax"), then such Payment shall be either (x) provided to the Executive in full, or (y) provided to the Executive to such lesser extent which would result in no portion of such Payment being subject to the excise tax, further reduced by $5,000 (including such further reduction, the "Cutback Amount"), whichever of the foregoing amounts, when taking into account applicable federal, state, local and foreign income and employment taxes, such excise tax and other applicable taxes, (all computed at the highest applicable marginal rates), results in the receipt by the Executive, on an after-tax basis, of the greatest amount of the Payment, notwithstanding that all or a portion of such Payment may be subject to the excise tax. If a reduction in payments or benefits constituting "parachute payments" is necessary so that the Payment equals the Cutback Amount, reduction shall occur in the following order: (A) cash payments shall be reduced first and in reverse chronological order such that the cash payment owed on the latest date following the occurrence of the event triggering such excise tax will be the first cash payment to be reduced; (B) accelerated vesting of performance-based equity awards shall be cancelled or reduced next and in the reverse order of the date of grant for such awards (i.e., the vesting of the most recently granted awards will be reduced first), with fall-value awards reduced before any performance-based stock option or stock appreciation

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rights are reduced; (C) health and welfare benefits shall be reduced and in reverse chronological order such that the benefit owed on the latest date following the occurrence of the event triggering such excise tax will be the first benefit to be reduced; and (D) accelerated vesting of time-based equity awards shall be cancelled or reduced last and in the reverse order of the date of grant for such awards (i.e., the vesting of the most recently granted awards will be reduced first), with full-value awards reduced before any time-based stock option or stock appreciation rights are reduced.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company shall appoint a nationally recognized accounting firm to make the determinations required hereunder and perform the foregoing calculations. The Company shall bear all expenses with respect to the determinations by such accounting firm required to be made hereunder. The accounting firm engaged to make the determinations hereunder shall provide its calculations, together with detailed supporting documentation, to the Company and Executive within 15 calendar days after the date on which right to a Payment is triggered (if requested at that time by the Company or Executive). Any good faith determinations of the accounting firm made hereunder shall be final, binding and conclusive upon the Company and Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. <u>Settlement of Outstanding Claim</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company shall pay to the Executive the amounts earned, but deferred from the 2015 AIP, in the amount of $54,385 within 14 days of the Effective Date of the Company's Plan of Reorganization.

[*Remainder of page intentionally left blank*]

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

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| | | |
|:---|:---|:---|
| REPUBLIC AIRWAYS HOLDINGS INC. | REPUBLIC AIRWAYS HOLDINGS INC. | REPUBLIC AIRWAYS HOLDINGS INC. |
| By: | /s/ Bryan Bedford | /s/ Bryan Bedford |
|  | Name: | Bryan Bedford |
|  | Title: | Chief Executive Officer, President, and Chairman of the Board |
| MATTHEW J. KOSCAL | MATTHEW J. KOSCAL | MATTHEW J. KOSCAL |
| /s/ Matthew J. Koscal | /s/ Matthew J. Koscal | /s/ Matthew J. Koscal |

---

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**EXHIBIT A** 

**FORM OF RELEASE** 

**<u>GENERAL RELEASE</u>**

In exchange for the payments and benefits set forth in the Amended and Restated Employment Agreement between Republic Airways Holdings Inc. (the "<u>Company</u>") and me dated as of February 8, 2017 (the "<u>Agreement</u>"), and to be provided following the Effective Date (as defined below) of this General Release and subject to the terms of the Agreement, and my execution (without revocation) and delivery of this General Release:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. (a) On behalf of myself, my agents, assignees, attorneys, heirs, executors and administrators, I hereby release the Company and its predecessors, successors and assigns, their current and former parents, affiliates, subsidiaries, divisions and joint ventures (collectively, the "<u>Company Group</u>") and all of their current and former officers, directors, employees, and agents, in their capacity as Company Group representatives (individually and collectively, "<u>Releasees</u>") from any and all controversies, claims, demands, promises, actions, suits, grievances, proceedings, complaints, charges, liabilities, damages, debts, taxes, allowances, and remedies of any type, including but not limited to those arising out of my employment with the Company Group (individually and collectively, "<u>Claims</u>") that I may have by reason of any matter, cause, act or omission. This release applies to Claims that I know about and those I may not know about occurring at any time on or before the date of execution of this General Release.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This General Release includes a release of all rights and Claims under, as amended, Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act of 1967, the Rehabilitation Act of 1973, the Civil Rights Acts of 1866 and 1991, the Americans with Disabilities Act of 1990, the Employee Retirement Income Security Act of 1974, the Equal Pay Act of 1963, the Family and Medical Leave Act of 1993, the Older Workers Benefit Protection Act of 1990, the Occupational Safety and Health Act of 1970, the Worker Adjustment and Retraining Notification Act of 1989 and the Sarbanes-Oxley Act of 2002, as well as any other federal, state, or local statute, regulation, or common law regarding employment, employment discrimination, termination, retaliation, equal opportunity, or wage and hour. I specifically understand that I am releasing Claims based on age, race, color, sex, sexual orientation or preference, marital status, religion, national origin, citizenship, veteran status, disability, genetic information and other legally protected categories.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) This General Release also includes a release of any Claims for breach of contract, any tortious act or other civil wrong, attorneys' fees, and all compensation and benefit claims including without limitation Claims concerning salary, bonus, and any award(s), grant(s), or purchase(s) under any equity and incentive compensation plan or program.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In addition, I am waiving my right to pursue any Claims against the Company Group and Releasees under any applicable dispute resolution procedure, including any arbitration policy.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. I acknowledge that this General Release is intended to include, without limitation, all Claims known or unknown that I have or may have against the Company Group and Releasees through the Effective Date of this General Release. Notwithstanding anything herein, I expressly reserve and do not release pursuant to this General Release (and the definition of "Claims" will not include) (i) my rights with respect to the enforcement of the Agreement, including but not limited to the right to receive severance compensation (as provided in <u>Section</u> <u>5</u> of the Agreement), if any, and other payments, benefits and indemnifications specified in the Agreement, (ii) any rights or interest under any Benefit Plans (as defined in the Agreement), (iii) any right to indemnification pursuant to the Company's Certificate of Incorporation or By-laws as in effect on the date hereof, (iv) the protections of the Company Group's directors and officers liability insurance, if any, in each case, to the same extent provided to other senior executives of the Company, (v) any claims and rights that cannot be waived by law, including but not limited to my right to file an EEOC charge but hereby waive my right to financial recovery as to any such charge, (vi) the vesting and exercise of any equity grant pursuant to the terms of the applicable equity award agreement or the applicable equity incentive plan, (vii) any rights as a stockholder of the Company, and (viii) any rights under <u>Sections 10</u> and <u>11</u> of the Agreement following termination of employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. I acknowledge that I have had at least 21 calendar days from the date of my termination of employment with the Company (the "<u>Termination Date</u>") to consider the terms of this General Release, that I have been advised to consult with an attorney regarding the terms of this General Release prior to executing it, that I have consulted with my attorney, that I fully understand all of the terms and conditions of this General Release, that I understand that nothing contained herein contains a waiver of claims arising after the date of execution of this General Release, and I am entering into this General Release knowingly, voluntarily and of my own free will. I further understand that my failure to sign this General Release and return such signed General Release to the Company, 8909 Purdue Road, Suite 300, Indianapolis, IN 46268 by 5:00 pm on the 22<sup>nd</sup> day after the Termination Date will render me ineligible for the payments and benefits described herein and in the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. I understand that once I sign and return this General Release to the Company, I have 7 calendar days to revoke it. I may do so by delivering to the Company, 8909 Purdue Road, Suite 300, Indianapolis, IN 46268 written notice of my revocation within the 7-day revocation period (the "<u>Revocation Period</u>"). This General Release will become effective on the 8<sup>th</sup> day after I sign and return it to the Company ("<u>Effective Date</u>"); provided that I have not revoked it during the Revocation Period.

YOU ARE HEREBY ADVISED BY THE COMPANY TO CONSULT WITH AN ATTORNEY BEFORE SIGNING THIS GENERAL RELEASE.

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I HAVE READ THIS GENERAL RELEASE AND UNDERSTAND ALL OF ITS TERMS. I SIGN AND ENTER THIS GENERAL RELEASE KNOWINGLY AND VOLUNTARILY, WITH FULL KNOWLEDGE OF WHAT IT MEANS.

---

| |
|:---|
| MATTHEW J. KOSCAL |
| Date: |

---

## Exhibit 10.24

**Exhibit 10.24.2** 

FIRST AMENDMENT TO

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

This First Amendment to Amended and Restated Employment Agreement (this "Amendment") is made and entered into as of November 14, 2017, by and between REPUBLIC AIRWAYS HOLDINGS INC., a Delaware corporation (the "Company"), and MATTHEW J. KOSCAL (the "Executive").

RECITALS

Whereas, the Executive and the Company are parties to the Amended and Restated Employment Agreement dated as of February 8, 2017 (the "Employment Agreement"); and

Whereas, the Company and the Executive desire to amend certain provisions of the Employment Agreement.

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants hereinafter set forth and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Clause (i) of the third sentence of Section 4(e) of the Employment Agreement is hereby amended to read in its entirety as follows: "(i) the Company has failed to establish a reasonable and market based EIP or other long-term incentive award program to replace the Plan by November 27, 2017."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Except as provided in Section 1 above, all other provisions of the Employment Agreement shall remain in effect in accordance with their terms.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

---

| | | |
|:---|:---|:---|
| REPUBLIC AIRWAYS HOLDINGS INC. | REPUBLIC AIRWAYS HOLDINGS INC. | REPUBLIC AIRWAYS HOLDINGS INC. |
| By: | /s/ Bryan K. Bedford | /s/ Bryan K. Bedford |
|  | Name: | Bryan K. Bedford |
|  | Title: | Chief Executive Officer and President |
| MATTHEW J. KOSCAL | MATTHEW J. KOSCAL | MATTHEW J. KOSCAL |
| /s/ Matthew J. Koscal | /s/ Matthew J. Koscal | /s/ Matthew J. Koscal |

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## Exhibit 10.24

**Exhibit 10.24.3** 

SECOND AMENDMENT TO

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

This Second Amendment to Amended and Restated Employment Agreement (this "Amendment") is made and entered into as of November 27, 2017, by and between REPUBLIC AIRWAYS HOLDINGS INC., a Delaware corporation (the "Company"), and MATTHEW J. KOSCAL (the "Executive").

RECITALS

Whereas, the Executive and the Company are parties to the Amended and Restated Employment Agreement dated as of February 8, 2017, as amended (the "Employment Agreement"); and

Whereas, the Company and the Executive desire to amend certain provisions of the Employment Agreement.

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants hereinafter set forth and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Section 3(d) of the Employment Agreement is hereby amended by replacing the reference to "Equity Incentive Plan (the "EIP")" with "Long Term Incentive Plan (the "EIP")" and adding the following sentence at the end thereof: "Notwithstanding any provision in the EIP or applicable award agreement to the contrary, the long-term incentive awards to be granted to the Executive under the EIP will not be subject to discretionary downward adjustment by the Compensation Committee as otherwise permissible under Section 5(c) of the EIP following achievement of the performance objectives applicable such awards."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Except as provided in Section 1 above, all other provisions of the Employment Agreement shall remain in effect in accordance with their terms.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

---

| | | |
|:---|:---|:---|
| REPUBLIC AIRWAYS HOLDINGS INC. | REPUBLIC AIRWAYS HOLDINGS INC. | REPUBLIC AIRWAYS HOLDINGS INC. |
| By: | /s/ Bryan K. Bedford | /s/ Bryan K. Bedford |
|  | Name: | Bryan K. Bedford |
|  | Title: | Chief Executive Officer and President |
| MATTHEW J. KOSCAL | MATTHEW J. KOSCAL | MATTHEW J. KOSCAL |
| /s/ Matthew J. Koscal | /s/ Matthew J. Koscal | /s/ Matthew J. Koscal |

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## Exhibit 10.25

**Exhibit 10.25.1** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

**CAPACITY PURCHASE AGREEMENT** 

**BETWEEN** 

**AMERICAN AIRLINES, INC.** 

**AND** 

**REPUBLIC AIRLINE INC.** 

**DATED AS OF JANUARY 23, 2013** 

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**<u>**Table of Contents**</u>** 

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| | | |
|:---|:---|:---|
|  | **Article I - Definitions** | **1** |
|  | **Article II - Capacity Purchase, Revenues and Other Services** | **1** |
|  Section 2.01 | Capacity Purchase | 1 |
|  Section 2.02 | Flight-Related Revenues | 2 |
|  Section 2.03 | Non-Revenue Pass Travel | 3 |
|  Section 2.04 | Ground Handling | 3 |
|  Section 2.05 | Gates and Passenger-Related Terminal Facilities | 4 |
|  | **Article III - Use of Covered Aircraft** | **5** |
|  Section 3.01 | Use of Covered Aircraft | 5 |
|  Section 3.02 | Spare Aircraft | 6 |
|  Section 3.03 | Additional Aircraft | 7 |
|  Section 3.04 | Flight Designator Codes and Codeshare Terms | 7 |
|  Section 3.05 | Flight Dispatch | 8 |
|  | **Article IV - Service Standards, Performance Measurement and Training** | **8** |
|  Section 4.01 | Crews and Other Personnel | 8 |
|  Section 4.02 | Governmental Regulations | 8 |
|  Section 4.03 | Quality of Service | 9 |
|  Section 4.04 | Access and Use of American Systems | 12 |
|  Section 4.05 | Processing and Adjudicating Customer or Passenger Complaints | 13 |
|  Section 4.06 | Catering Products and Catering Services | 13 |
|  | **Article V - Safety** | **13** |
|  Section 5.01 | Incidents or Accidents | 13 |
|  | **Article VI - Other Obligations of Contractor** | 14 |
|  Section 6.01 | FAA or DOT Certification Suspension or Revocation | 14 |
|  Section 6.02 | Fuel Efficiency Program | 15 |
|  Section 6.03 | Use of Approved Marks and Copyrights | 15 |
|  Section 6.04 | Use of Contractor Marks | 17 |
|  Section 6.05 | American's AAdvantage<sup>®</sup> Program | 18 |
|  Section 6.06 | Periodic Reports | 18 |
|  Section 6.07 | [\*\*\*] | 18 |
|  Section 6.08 | Contractor Labor Strike | 18 |
|  | **Article VII - Contractor's Compensation** | **19** |
|  Section 7.01 | Base and Incentive Payments | 19 |
|  Section 7.02 | Costs and Expenses | 19 |
|  Section 7.03 | Cost Savings | 19 |
|  Section 7.04 | [\*\*\*] | 20 |
|  | **Article VIII - Representations, Warranties and Acknowledgments** | **20** |
|  Section 8.01 | Contractor's Representations and Warranties | 20 |
|  Section 8.02 | American Representations and Warranties | 21 |

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| | | |
|:---|:---|:---|
|  | **Article IX - Insurance** | **22** |
|  Section 9.01 | Minimum Insurance Coverage | 22 |
|  Section 9.02 | Endorsements | 23 |
|  Section 9.03 | Evidence of Insurance Coverage | 24 |
|  | **Article X - Indemnification** | **24** |
|  Section 10.01 | Contractor's Indemnification of American Indemnified Parties | 24 |
|  Section 10.02 | American Indemnification of Contractor | 25 |
|  Section 10.03 | Procedure for Indemnification Claims | 26 |
|  Section 10.04 | Employer's Liability and Worker's Compensation | 27 |
|  | **Article XI - Term and Termination** | **28** |
|  Section 11.01 | Term | 28 |
|  Section 11.02 | Termination | 28 |
|  | **Article XII - Dispute Resolution** | **34** |
|  Section 12.01 | Resolution of Disputes | 34 |
|  | **Article XIII - Miscellaneous** | **34** |
|  Section 13.01 | Notices | 34 |
|  Section 13.02 | Binding Effect and Assignment | 36 |
|  Section 13.03 | Amendment and Modification | 36 |
|  Section 13.04 | Waiver | 36 |
|  Section 13.05 | Interpretation | 36 |
|  Section 13.06 | Confidentiality and Public Communications | 37 |
|  Section 13.07 | Data Security | 38 |
|  Section 13.08 | Ownership and Use of American Data | 38 |
|  Section 13.09 | Cooperation with Respect to Reporting | 39 |
|  Section 13.10 | Right of Set-off | 39 |
|  Section 13.11 | Counterparts | 40 |
|  Section 13.12 | Severability | 40 |
|  Section 13.13 | Governing Law | 40 |
|  Section 13.14 | Entire Agreement; Conflicts with this Agreement | 40 |
|  Section 13.15 | Remedies Cumulative | 40 |
|  Section 13.16 | Further Assurances | 41 |
|  Section 13.17 | No Third Party Beneficiaries | 41 |
|  Section 13.18 | Relationship of the Parties | 41 |
|  Section 13.19 | Jurisdiction | 42 |
|  Section 13.20 | Limitation of Damages | 42 |
|  Section 13.21 | Equitable Remedies | 42 |
|  Section 13.22 | Executory Contracts | 43 |
|  Section 13.23 | Survival of Certain Obligations | 43 |
|  Schedule 1 | Covered Aircraft | 45 |
|  Schedule 2 | American Gates and Facilities | 48 |

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| | | |
|:---|:---|:---|
|  Schedule 3 | Scheduling and Operating Restrictions on Aircraft | 49 |
|  Schedule 4 | Pass Through Costs, Controllable Costs and American Absorbed Expenses | 52 |
|  Schedule 5 | Fuel Efficiency Program | 53 |
|  Schedule 6 | Contractor Marks | 56 |
|  Schedule 7 | Compensation and Bonuses and Penalties | 57 |
|  Schedule 8 | Terms of American's Collective Bargaining Agreement | 65 |
|  Schedule 9 | Controllable Completion Rate | 66 |
|  Schedule 10 | Accounting and Auditing Procedures and Payment Terms | 67 |
|  Schedule 11 | Controllable Cancellation Codes | 70 |
|  Schedule 12 | Controllable On-Time Departure Codes | 71 |
|  Schedule 13 | Controllable Corporate Complaint Factor Codes | 72 |
|  Exhibit A | Definitions | 73 |
|  Exhibit B | Standards of Service | 82 |
|  Exhibit C | Training | 83 |
|  Exhibit D | American's Security Policies and Procedures | 84 |
|  Exhibit E | Standards of Use of American Gates and Facilities | 85 |

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**<u>CAPACITY PURCHASE AGREEMENT</u>**

This Capacity Purchase Agreement (this "***Agreement***") is dated as of the 23rd day of January, 2013 (the "***Effective Date***"), between American Airlines, Inc., a Delaware corporation (together with its successors and permitted assigns, "***American***") and Republic Airline Inc., an Indiana corporation (together with its successors and permitted assigns "***Contractor***").

WHEREAS, American and Contractor desire to establish the terms by which Contractor will provide Regional Airline Services utilizing certain regional aircraft on behalf of American;

WHEREAS, American holds a certificate of public convenience and necessity issued pursuant to certain federal transportation statutes authorizing it to engage in air transportation of persons, property and mail, and is a major air carrier providing scheduled domestic and international air transportation;

WHEREAS, Contractor holds a certificate of public convenience and necessity issued pursuant to certain federal transportation statutes authorizing it to engage in air transportation of persons, property and mail, and is a regional air carrier providing scheduled domestic air transportation;

WHEREAS, American and Contractor will, prior to the Implementation Date of the first Covered Aircraft, execute an Emergency Assistance Agreement (the "***Emergency Assistance Agreement***"), which forms a part hereof for all purposes;

WHEREAS, Republic Airways Holdings Inc., a Delaware corporation ("***Holdings***"), has contemporaneously executed and delivered to American a Guaranty Agreement, pursuant to which Holdings has guaranteed all obligations of Contractor pursuant to the provisions hereof and the Emergency Assistance Agreement;

WHEREAS, American and Contractor have agreed that the effectiveness of this Agreement is subject to approval by the Bankruptcy Court under the Chapter 11 Cases (as defined in <u>Section</u> <u>13.22</u> of this Agreement);

WHEREAS, all references to specific schedules and exhibits in this Agreement shall be those certain schedules and exhibits attached hereto, which shall be deemed incorporated herein by reference and a part of this Agreement for all purposes.

NOW, THEREFORE, for and in consideration of the mutual covenants and agreements herein contained, American, on the one hand, and Contractor, on the other hand, agree as follows:

**Article I** 

**DEFINITIONS** 

Capitalized terms used in this Agreement (including, unless otherwise defined therein, in the Schedules and Exhibits to this Agreement) shall have the meanings set forth in <u>Exhibit A</u> hereto.

**ARTICLE II** 

**CAPACITY PURCHASE, REVENUES AND OTHER SERVICES** 

**Section 2.01 Capacity Purchase**. Subject to the terms and conditions hereof, American shall purchase during the Term hereof all of the capacity of each aircraft specified on <u>Schedule 1</u> hereof, as such <u>Schedule 1</u> may be subsequently amended from time to time in accordance with the terms and conditions hereof in order to reflect Additional Aircraft (collectively, together with the Spare Aircraft, the "***Covered Aircraft***"), and Contractor shall provide all of the capacity of each Covered Aircraft (other than the

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Maintenance Spare Aircraft, as specified herein) during the Term hereof in accordance with the terms and conditions hereof. Contractor shall use the Covered Aircraft, solely for, or as directed by, American in connection with Regional Airline Services, subject to <u>Sections 11.02(b)(xi)</u> and <u>13.20</u>, and, without limiting the foregoing, in accordance with the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Fares, Rules and Seat Inventory**. American shall in its sole discretion establish and publish all fares, fare rules, related tariff rules, and other information for all seats on the Covered Aircraft. Contractor shall not publish any fares, fare rules, related tariff rules (other than as prepared or authorized by American), or other information for the Covered Aircraft. In addition, American shall have complete and exclusive control in its sole discretion with respect to the Covered Aircraft relating to all (i) seat inventories, including all positive space and "space available" non-revenue seating, and pass travel policies, subject to <u>Section</u> <u>2.03</u>, and (ii) revenue management decisions, including pricing, overbooking levels, discount seat levels and allocation of seats among various fare categories.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Hub**. The operations for each Covered Aircraft shall be principally based at, and each Covered Aircraft shall operate primarily from, the Hub; *provided* that: (i) at any time, upon ninety (90) days prior Notice to Contractor, and subject to the terms of <u>Section</u> <u>2.05</u> below, American shall have the right and option to move or relocate the principal base or operations location of up to one hundred percent (100%) of the Covered Aircraft to any of the Alternative Hubs so long as such relocation does not result in a crew domicile closure for Contractor at any Hub, and (ii) at any time, upon one hundred eighty (180) days prior Notice to Contractor, and subject to (x) American and Contractor meeting and conferring in good faith within ten (10) days following such Notice to reset the Base Compensation as a result of any such relocation, and (y) compliance with the terms of <u>Section</u> <u>2.05</u> below, American shall have the right and option to relocate the principal base or operations location of all of the Covered Aircraft to any of the Alternative Hubs. Any such relocation shall be at American's option and at its sole cost and expense, with Contractor being reimbursed for the out of pocket costs and expenses incurred by Contractor in connection with any such relocation as Pass Through Costs. At any time and from time to time, American may request that Contractor provide American with an estimate of the out-of-pocket costs or expenses relating to any such relocation of the Covered Aircraft to an Alternative Hub, so that American may determine whether to make any such relocation. Such estimate shall become binding upon the Contractor, if not revised or updated by the Contractor within the specified Notice periods set forth in (i) and (ii) above. In each case, Contractor shall take all action necessary to relocate the Covered Aircraft to such Alternative Hub once American determines to proceed with any such relocation and once any Covered Aircraft has relocated, the term "Hub" as used herein shall include the Alternative Hub at which the Covered Aircraft are relocated.

**Section 2.02 Flight-Related Revenues**. Contractor acknowledges and agrees that American shall be entitled to and shall receive all revenues (including any consideration received from any interline and non-revenue travel agreements) resulting from the sale or issuance of passenger tickets associated with the Covered Aircraft and all other sources of revenue associated with the Covered Aircraft and its use and

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operation, including revenues relating to (a) any tickets sold under the designator code of a third party (such as an American codeshare partner); (b) transportation of cargo or mail; (c) ancillary passenger service charges, including any baggage charges, food, beverage (including revenues relating to the sale of beer, wine, liquor or any other alcoholic beverages), unaccompanied minor fees and duty-free services; (d) guarantees, incentive payments or cost abatements from Governmental Authorities or other third parties in connection with scheduling flights to an airport or locality; (e) ticket change fees; and (f) pass travel and other non-revenue or reduced-rate travel charges. All such revenues shall be the sole property of, and shall belong to, American, and if received by Contractor, shall be promptly remitted by Contractor to American. American shall perform all revenue accounting and management functions in connection with all such revenues.

**Section 2.03 Non-Revenue Pass Travel**. American shall have the sole right and option to implement and oversee all pass travel and other non-revenue or reduced-rate travel on any Scheduled Flight. Contractor's employees providing the Regional Airline Services pursuant to this Agreement shall be entitled to those travel privileges on Scheduled Flights as are set forth in American's travel privileges policies for non-revenue pass travel for employees of regional airline service providers other than an Affiliate of American, as then in effect and to the extent then offered by American; *provided*, in all events, that on all Scheduled Flights operated by Covered Aircraft, (x) movements of crews "on duty" with respect to Scheduled Flights (including movements from the crews' respective base to pick up a Scheduled Flight and "deadheading" back to the crews' respective base, but specifically excluding movements "off duty" or crews commuting, including to their respective base to report "on duty" or from their respective base after duty) shall be on a positive space basis, and (y) such Contractor employees shall be treated the same as employees of other non-owned regional airline service providers, without giving effect to any applicable grace period or extension period for employees of any Affiliate or former Affiliate of American.

**Section 2.04 Ground Handling**. American shall provide, at its sole cost and expense, or arrange for another Person to provide, all ground handling and related services with respect to the operation of the Covered Aircraft, including, but not limited to: (a) all gate and ticket counter check in activities, (b) all baggage handling, (c) all cargo handling, if any, (d) all passenger enplaning/deplaning services, including but not limited to sky cap, if any, and wheel chair services, (e) all aircraft loading/unloading services, including but not limited to airside busing (as necessary), (f) all passenger ticketing, (g) all aircraft cabin cleaning and related cleaning supplies other than in connection with routine clean-up and straightening between Scheduled Flights, (h) all jet bridge maintenance (where applicable), (i) all security functions, (j) all janitorial services (including lavatory and water service) in connection with ground handling and related services with respect to the operation of the Covered Aircraft, and (k) all deicing services. In connection therewith, American shall select in its sole discretion any Person to perform such services with respect to the operation of the Covered Aircraft.

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**Section 2.05 Gates and Passenger-Related Terminal Facilities**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **American Gates and Facilities**. Subject to the terms and conditions hereof, American hereby grants to Contractor a limited, non-exclusive right and license to use and occupy, without cost or expense to the Contractor, the American gates, Passenger-Related Terminal Facilities and Crew Facilities as specified on <u>Schedule 2</u> hereof (to the extent that <u>Schedule 2</u> may be amended or expanded by the Parties hereto) along with any gates, any adjoining Passenger-Related Terminal Facilities and any Crew Facilities American subsequently may use in substitution therefore (the "***American Gates and Facilities***") in connection with providing the Regional Airline Services herewith. The American Gates and Facilities shall be used by Contractor exclusively to support the provision of Regional Airline Services and may not be used by Contractor for the provision of any other services, including regional air services, to any Third Party or for any other purpose without the Consent of American; it being understood that American shall have sole and absolute discretion to provide or decline such Consent for any reason whatsoever. Any use of the American Gates and Facilities shall be in accordance with any and all present and future laws, rules, regulations, requirements, orders and directives promulgated by any applicable governmental authority or airport authority to the extent then applicable to Contractor's use or occupancy of such American Gates and Facilities. The Parties acknowledge that the grant of the such right to Contractor to use the American Gates and Facilities has been made without obtaining the Consent and approval of any applicable Governmental Authority or any similar authority or governing board in any domestic or foreign jurisdiction, or any private or quasi-governmental entity, governing board or other Person with authority to lease, convey or otherwise grant or restrict rights to use or operate any airport gates associated with this Agreement ("***Airport Operators***"). If any such Airport Operator subsequently suggests or states that a Consent of any such Airport Operator is required for the grant of such right or license for the use of the American Gates and Facilities and American determines that obtaining such Consent is necessary or advisable, the Parties shall use commercially reasonable efforts to obtain such Consent and/or to effectuate such a license on the terms set forth herein and in such manner as American and Contractor may deem advisable or appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Conditions of Use for the American Gates and Facilities**. At all times, Contractor covenants and agrees that it shall comply with the "Standards of Use of American Gates and Facilities" set forth on Exhibit E hereto. Contractor covenants and agrees that it will not use the American Gates and Facilities other than as necessary for it to perform its obligations hereunder and will not use the American Gates and Facilities to perform any services on behalf of any party other than American. Contractor agrees that no other use or access to any of the American Gates and Facilities at the Hub by Contractor or the Contractor Agents shall be provided without American's express Consent. If Contractor fails to comply with its obligations relating to the American Gates and Facilities as set forth herein and in <u>Exhibit E</u> and such failure continues for a period of thirty (30) days after Notice to Contractor to cure such failure, then American shall have the right and option to terminate immediately Contractor's right to use the American Gates and Facilities or any part hereof; it being understood that American shall have the right and option to revoke Contractor's use without terminating or affecting any other obligations of Contractor or American pursuant to the terms hereof and pursue any remedies or recourse against Contractor relating to such use. Except with respect to the American Gates and Facilities, Contractor, at its sole cost and expense, shall provide, or cause to be provided, all manpower, furniture, equipment and other airport facilities necessary to support the Regional Airline Services, unless American subsequently consents to the use of its facilities on the terms specified by American at such time.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Replacement and Termination of Facilities Use**. At all times and from time to time, American shall have the right and option, in its sole and absolute discretion, to designate any replacement facilities or to increase or reduce the size or space of the American Gates and Facilities, so long as Contractor has sufficient facilities to perform its obligations hereunder. Any American Gates and Facilities no longer used by Contractor shall immediately cease to be American Gates and Facilities for the purposes hereof and Contractor's right to use such facilities shall terminate immediately without further action of American.

**ARTICLE III** 

**USE OF COVERED AIRCRAFT** 

**Section 3.01 Use of Covered Aircraft.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Implementation Date**. Contractor shall make the Covered Aircraft available for operations and the performance of Regional Airline Services at the Hub as contemplated by this Agreement and as set forth on <u>Schedule 1</u> hereto, unless otherwise Consented to by American and Contractor or unless relocated to an Alternative Hub as provided herein; it being understood that the date such Covered Aircraft commences providing Regional Airline Services as set forth on <u>Schedule 1</u> hereof shall be deemed its implementation date (the "***Implementation Date***"). From time to time as Covered Aircraft commence providing Regional Airline Services, <u>Schedule 1</u> hereof shall be amended and updated to reflect a twelve (12) year term on each Covered Aircraft. When amended and updated in accordance with the foregoing, such updated and reissued <u>Schedule 1</u> shall be deemed to be the <u>Schedule 1</u> referenced herein for all purposes hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Use for Scheduled Flights**. Except as American may otherwise Consent in its sole discretion, the Covered Aircraft (i) may only be used by Contractor to provide Scheduled Flights and (ii) subject to <u>Sections 3.01(c)</u> and <u>3.01(d)</u>, may not be used by Contractor for any other purpose, including flight operations for any other airline or flight operations or activities on Contractor's own behalf.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Ad Hoc Charter Flights**. If, and only if, requested by American, Contractor shall use the Covered Aircraft for charter flights not included in the applicable Final Monthly Schedule for the month of such flight and American shall specify the terms of such use.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Maintenance Flights and Ferry Flights**. Contractor shall be entitled to use Covered Aircraft for the purpose of Ferry Flights and any maintenance flights but only to the extent any such maintenance flights are in connection with the performance of reasonably necessary, customary and required maintenance of a Covered Aircraft ("***Maintenance Flights***"). It is understood that **[\*\*\*]**. Maintenance Flights shall not be deemed Completed Scheduled Flights for purposes of payment in this Agreement.

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**Section 3.02 Spare Aircraft.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Operating Spare**. Contractor shall have available at the Hub for the operation of Scheduled Flights or any charter flights pursuant to <u>Section</u> <u>3.01(c)</u> **[\*\*\*]** spare EMB E-175 aircraft which shall be designated as permanent spare aircraft and (i) each shall be a substitute for any other Covered Aircraft in the event of any operational issues or daily line maintenance requirements for any other Covered Aircraft and (ii) each shall also be available at American's sole option to operate any other flight as designated by American on behalf of American or any American Affiliate, including in connection with any charter flight (the "***Operational Spare Aircraft***"). The Operational Spare Aircraft shall be deemed a Covered Aircraft at all times hereunder and must (a) be painted in a livery approved by American; (b) include American's in-flight materials, in-flight publications, food and beverage products, advertising and paper goods; and (c) be in an interior appearance as approved by American. For the avoidance of doubt, the **[\*\*\*]** Covered Aircraft available for operations and the performance of Regional Airline Services at the Hub as contemplated by this Agreement as of the Implementation Date specified on <u>Schedule 1</u> hereof shall be the Operational Spare Aircraft.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Heavy Maintenance Spare**. Contractor shall have available at the Hub for the operation of Scheduled Flights or any charter flights pursuant to <u>Section</u> <u>3.01(c)</u> **[\*\*\*]** EMB E-175 aircraft which shall be "white tail" aircraft and shall be designated as spare aircraft that can serve as a substitute for any other Covered Aircraft when undergoing heavy maintenance (the "***Maintenance Spare Aircraft***"), which Maintenance Spare Aircraft shall be deemed a Covered Aircraft at all times hereunder. The Maintenance Spare Aircraft must (a) be painted in a neutral livery, both with respect to interior markings and exterior colors and markings, approved by American, which approval shall not be unreasonably withheld; (b) include American's in-flight materials, in-flight publications, food and beverage products, advertising and paper goods; and (c) be in an interior appearance as approved by American. In each case, upon mutual agreement of the Parties, American shall have the right and option to cause Contractor (to the extent that the Maintenance Spare Aircraft and necessary crews and other personnel are available) to operate any other flight as designated by American on behalf of American or any American Affiliate, including in connection with any charter flight pursuant to <u>Section</u> <u>3.01(c)</u>, and Contractor shall receive compensation for Block Hours, Flight Hours and departures from American for each such flight as if such flight were a Scheduled Flight hereunder or otherwise provided in <u>Section</u> <u>3.01(c)</u> with respect to charter flights. For the avoidance of doubt, the **[\*\*\*]** Covered Aircraft available for operations and the performance of Regional Airline Services at the Hub as contemplated by this Agreement as of the Implementation Date specified on <u>Schedule 1</u> hereof shall be the Maintenance Spare Aircraft. Contractor agrees that the Covered Aircraft Monthly Rate for the Maintenance Spare Aircraft shall be **[\*\*\*]**. As used herein, the term "***Spare Aircraft***" shall mean the Operational Spare Aircraft and Maintenance Spare Aircraft, collectively.

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**Section 3.03 Additional Aircraft**. At any time and from time to time during the Term, if Contractor Consents and Contractor has available aircraft that are acceptable to American, American shall have the right and option upon not less than **[\*\*\*]** days prior Notice to Contractor to direct Contractor to provide, and Contractor hereby agrees to provide and make available to American at the Hub, as Covered Aircraft, additional EMB-175 aircraft that are airworthy and in substantially the same condition, configuration and livery requirements as the then existing Covered Aircraft (the "***Additional Aircraft***"). The Notice provided by American to Contractor under this Section 3.03 shall specify the number of Additional Aircraft that shall be deemed Covered Aircraft and shall designate the date and time at which such Additional Aircraft shall be made available at the Hub for Regional Airline Services. Contractor shall take all requisite action to obtain all FAA, DOT, TSA and other certifications, permits, licenses, certificates, exemptions, approvals and plans required by Governmental Authorities, along with any insurance required pursuant to the terms hereof, necessary to enable Contractor to provide Regional Airline Services and operate the Additional Aircraft prior to it being placed in service and shall otherwise cause the Additional Aircraft to meet the terms and conditions for "***Covered Aircraft***" as specified under this Agreement. Subject to this <u>Section</u> <u>3.03</u>, for any Additional Aircraft added during the Initial Term or any Extension Term, as the case may be, American shall have the right and option, in its sole discretion and by delivering Notice to Contractor, to retain any such Additional Aircraft as Covered Aircraft subject to the terms and conditions of this Agreement through any subsequent Extension Term.

**Section 3.04 Flight Designator Codes and Codeshare Terms**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All Regional Airline Services shall be operated under the name "***American Eagle***" or such other name, incorporating an Approved Mark, as may be determined by American in its sole discretion and specified by American to Contractor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All Scheduled Flights shall be identified by an "***AA\****" flight designator code (or such other flight designator codes as may be assigned by American in its sole discretion), as appropriate, in: (i) American, Contractor, and third party computer reservations systems, including Internet reservation systems; (ii) American timetables; (iii) airport flight information displays; and (iv) passenger tickets and like media distributed to or accessed by travel agents, other airlines or the public (all Scheduled Flights that display the "***AA\****" flight designator code are referred to herein as "***AA Flights***").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To the extent Contractor subsequently discloses or identifies the AA Flights to the public as flights operated by Contractor, Contractor shall do so only in the following ways: (i) a symbol and/or text may be used in timetables and computer reservation systems indicating that AA Flights are operated by Contractor; (ii) to the extent reasonable and necessary, messages on airport flight information displays may identify Contractor as the operator of flights shown as AA Flights; and (iii) in any other manner prescribed and/or required by any laws, rules or regulations of a Governmental Authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In all cases, the conditions of carriage with regard to passengers on AA Flights will be between a passenger and American.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Contractor agrees to operate all Scheduled Flights using the American flight designator code and flight numbers assigned by American, or such other flight designator codes and flight numbers as may be assigned by American (to accommodate, for example, an American codeshare partner). American shall have the exclusive right to determine which other airlines ("***Codeshare Airlines***"), if any, may place their two letter designator codes on flights operated by Contractor with Covered Aircraft and to enter into agreements with such Codeshare Airlines with respect thereto. Contractor will cooperate with American and any Codeshare Airlines, as requested by American, with respect thereto (including, without limitation, making necessary governmental filings and entering into reasonably acceptable agreements with such Codeshare Airlines).

**Section 3.05 Flight Dispatch**. Contractor shall be solely responsible for, and American shall have no obligations or duties with respect to, the Dispatch of Scheduled Flights, any charter flights pursuant to <u>Section</u> <u>3.01(c)</u>, any Ferry Flights or any Maintenance Flights; *provided* that Contractor shall coordinate such Dispatch with American's systems operation control and pursuant to <u>Schedule 3</u>.

**ARTICLE IV** 

**SERVICE STANDARDS, PERFORMANCE MEASUREMENT AND TRAINING** 

**Section 4.01 Crews and Other Personnel**. Contractor shall provide all crews (flight and cabin) and maintenance personnel necessary to operate all flights of Covered Aircraft and for all aspects (personnel and other) of Dispatch and operational control of such flights.

**Section 4.02 Governmental Regulations**. Contractor has and shall maintain at all times all FAA, DOT, TSA and other certifications, permits, licenses , certificates, exemptions, approvals and plans required by Governmental Authorities necessary to enable Contractor to provide Regional Airline Services, along with any insurance required pursuant to the terms hereof, to maintain the airworthiness of the Covered Aircraft and to operate the Covered Aircraft; *provided*, that Contractor shall only be required to use reasonable efforts to obtain any licenses to sell or dispense beer, wine, liquor or any other alcoholic beverages to the extent Contractor does not have such license as of the date hereof and such a license is necessary or required to provide Regional Airline Services hereunder. All Regional Airline Services and all other operations and services undertaken by Contractor pursuant to this Agreement shall be conducted, operated and provided by Contractor in compliance with all laws, rules, requirements and regulations of Governmental Authorities, including those relating to airport security, the use and transportation of hazardous materials and dangerous goods, environmental rules and regulations, crew qualifications, crew training and crew hours, and the carriage of persons with disabilities. All Covered Aircraft shall be operated and maintained by Contractor in compliance with all laws, regulations and governmental requirements, Contractor's own operations manuals and maintenance manuals and procedures, and all applicable equipment manufacturers' manuals and instructions. In connection with any capital improvements to any Covered Aircraft required by an airworthiness directive, Contractor (taken together with its Affiliates) shall not discriminate against such Covered Aircraft with regard to efforts to satisfy the requirements of the airworthiness directives, including the method and date of compliance, and shall satisfy such requirements, including any efforts used or applied by Contractor or its Affiliates with regard to any other aircraft owned or operated by Contractor or its Affiliates. In connection with any grounding of any of the Covered Aircraft, Contractor shall not discriminate against such Covered Aircraft with regard to efforts to satisfy the applicable requirements to lift such grounding order, including any efforts used or applied by Contractor or its Affiliates with regard to other aircraft owned or operated by Contractor or its Affiliates, and shall satisfy such requirements.

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**Section 4.03 Quality of Service.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Procedures and Performance Standards**. At all times, Contractor shall provide Regional Airline Services to American in accordance with procedures and performance standards approved by American from time to time in its reasonable discretion, including but not limited to those certain Standards of Service set forth in <u>Exhibit B</u> hereto. The Service Standards set forth in <u>Exhibit B</u> hereto may be amended or changed by American from time to time upon thirty (30) days prior Notice to Contractor; it being understood that ninety (90) days prior Notice shall be given by American to the extent any such amendment or change may reasonably be expected to result in additional training of Contractor's employees and no such amendment or change may be made by American if such amendment or change would result in Contractor being in violation, default, breach or conflict with any rules, regulations or laws of any Governmental Authority applicable to Contractor or in material breach of any terms or provisions of any then effective Collective Bargaining Agreement applicable to Contractor. American shall pay all reasonable and documented costs and expenses of Contractor relating to such amendment or changes incurred by Contractor. Without limiting the foregoing, Contractor shall be responsible for all crew and other employee conduct, appearance and training policies (as set forth on <u>Exhibit C</u>), aircraft cleaning except as expressly provided in this Agreement (including the timing thereof), standards and adequate staffing levels in order to comply with such procedures and meet such standards, including without limitation in respect of customer complaint response and any handling of irregular operations, all of which shall be handled in a professional, businesslike and courteous manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Contractor's Representative Uniforms**. Contractor shall require all of its respective personnel and any of its respective Contractor Agents providing Regional Airline Services in job classifications requiring direct public contact to wear Contractor's standard uniforms, together with American designated accessories, which shall be furnished by Contractor. Contractor shall not alter or change such uniforms and accessories without the prior Consent of American. If, after the Effective Date, American determines, in its sole discretion, that any uniforms or accessories should be materially altered or changed, then American shall provide Contractor with Notice of such alterations or changes. Within at least fifteen (15) days following such Notice, Contractor shall provide American with a binding estimate of the out-of-pocket costs or expenses relating to such alterations or changes, so that American may determine whether to make such alterations or changes. In the event that American decides to implement such alterations or changes, Contractor shall implement such alterations or changes no later than forty-five (45) days following Notice from American that it will make such alterations or changes and such reasonable and documented out-of-pocket costs **[\*\*\*]** shall be deemed Pass Through Costs payable by American pursuant to <u>Schedule 4</u> to the extent not otherwise paid or reimbursed to Contractor pursuant to the provisions of this Agreement and to the extent American requests a change in uniforms which could not reasonably be used by Contractor in providing similar services to other carriers.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **In-Flight Services**. Contractor shall comply with the catering requirements set forth on <u>Exhibit B</u> hereto. Contractor shall also coordinate all in-flight services relating to the Regional Airline Services with the in-flight services department of American or any Person designated by American to ensure consistency and quality of Contractor's in-flight service, including non-safety related functions such as in-flight marketing announcements, meal and beverage presentation and delivery, and provisioning and usage of passenger amenity kits. Contractor shall sell beer, wine, liquor and any other alcoholic beverages on Scheduled Flights. Contractor agrees that such in-flight sales shall be conducted as directed by American from time to time. Contractor shall implement any suggestions made by American's in-flight services department. All revenues collected by Contractor for such in-flight services on the Covered Aircraft shall be promptly remitted or provided to American.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Communication of Scheduled Flight Information**. Contractor shall provide as promptly as possible to American through ACARS, accurate and timely updates of planned and actual departure and arrival times of Scheduled Flights (including updates of irregularities), any changes in scheduling of a Scheduled Flight, Dispatch entries, any data relating to fuel performance or usage as reasonably required by American, and other information related thereto as may be reasonably requested by American from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Aircraft Livery; Refurbishment and Design Costs.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **Interior Design**. Without the prior Consent of American (such Consent not to be unreasonably withheld), Contractor may not materially alter the interior design (including, the bulk head design), seat pitch, aircraft interiors and seat covers that are installed as part of the Covered Aircraft as of the Implementation Date for each Covered Aircraft (collectively, the "***Interior Design***"). If American subsequently determines that the Interior Design of any such Covered Aircraft should be altered or changed, then American shall provide Contractor with Notice of such alteration or change and within at least thirty (30) days following such Notice, Contractor shall provide American with a binding estimate of the out-of-pocket costs or expenses relating to the alteration or change of the Interior Design, so that American may determine whether to make such alteration or change. In the event that American decides to implement such alteration or change, Contractor shall implement such alteration or change no later than seventy-five (75) days following such Notice; *provided* that if such alteration or change would require a material alteration or change in the Interior Design of a Covered Aircraft, Contractor shall only be required to implement such alteration or change within a commercially reasonable period of time following such Notice. The reasonable and documented costs and expenses incurred by Contractor shall be deemed Pass Through Costs payable by American pursuant to <u>Schedule 4</u>; *provided* that such costs and expenses shall be subject to pro ration.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) **Exterior Livery**. Contractor shall maintain all Covered Aircraft (other than the Maintenance Spare Aircraft, which are subject to <u>Section</u> <u>3.02(b)</u>) providing the Regional Airline Services in an exterior livery Consented to by American as provided below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) **Exterior Livery Preparation On or Before Implementation Date**. No later than seventy-five (75) days prior to a Covered Aircraft's Implementation Date (other than the Maintenance Spare Aircraft, which are subject to <u>Section</u> <u>3.02(b)</u>), unless otherwise agreed to by Contractor (acting reasonably under the circumstances), American shall provide Contractor with Notice regarding the required livery (including the paint color and graphic design specifications) for such Covered Aircraft. On or before the Implementation Date for such Covered Aircraft, Contractor shall cause the Covered Aircraft to be prepared in the livery (including the paint color and graphic design specifications) directed by American. Contractor's reasonable and documented actual out-of-pocket expenses related to painting the exterior of each such Covered Aircraft (as directed by American) shall be deemed a Pass Through Cost payable by American pursuant to <u>Schedule 4</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) **Exterior Livery Changes After Implementation Date**. If, after the Implementation Date of a Covered Aircraft, American determines that the exterior livery of such Covered Aircraft should be altered or changed in any material respect, then American shall provide Contractor with Notice of such alterations or changes and within at least thirty (30) days following such Notice, Contractor shall provide American with a binding estimate of the out-of-pocket costs and expenses to Contractor attributable to such alterations or changes, so that American may determine whether to implement such alterations or changes. In the event that American determines that it shall implement such alterations or changes, it shall provide Notice thereof to Contractor and Contractor shall implement such alterations or changes no later than one hundred eighty (180) days following the delivery of such Notice, and such reasonable and documented out-of-pocket costs and expenses incurred by Contractor and not otherwise paid by American shall be deemed Pass Through Costs. To the extent any alteration or change to the exterior livery of the Covered Aircraft requires a repainting of the exterior of a Covered Aircraft and such repainting is in advance of the Scheduled Repainting below in <u>Section</u> <u>4.03(e)(iii)(A)</u>, such repainting shall be at Contractor's cost and expense, it being understood that any additional subsequent repainting of the exterior of the Covered Aircraft shall be deemed a Pass Through Cost.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iii) Maintenance of Covered Aircraft**. Contractor shall comply with the following requirements in connection with the interior and exterior maintenance of the Covered Aircraft:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) **Painting Covered Aircraft**. Contractor and American shall agree on a schedule for re-painting the exterior of the Covered Aircraft between years **[\*\*\*]** and **[\*\*\*]** of this Agreement and as otherwise agreed by Contractor and American on a case by case basis (the "***Scheduled Repainting***"), such schedule to include American's required support and changes to the operating schedule to permit Contractor to remove a Covered Aircraft from service. Subject to the foregoing, Contractor shall, at its cost and expense, re-paint Covered Aircraft as required to maintain an acceptable exterior appearance. Painting of any Covered Aircraft must be approved in advance by American, which approval shall not be unreasonably withheld.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) **Cabin Maintenance and Exterior Cleaning**. With respect to interior cabin maintenance and exterior cleaning of the Covered Aircraft, Contractor shall, at its cost and expense, comply with the following standards and replacement schedule; *provided* that such standards and schedules may be amended from time to time by American upon no less than thirty (30) days prior Notice to Contractor; *provided further* that the Parties shall meet and confer in accordance with <u>Section</u> <u>12.01</u> of this Agreement regarding any changes associated with amended standards and schedules:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) An extensive interior cleaning shall take place every thirty (30) days using vendors consented to by American from time to time, which consent shall not be unreasonably withheld;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Carpets shall be cleaned every seventy (70) days and shall be removed and replaced as necessary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Seat coverings shall be conditioned every seventy (70) days in conjunction with every other extensive interior cleaning and replaced as needed both on the line and in conjunction with every heavy maintenance check;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Seat bottom cushions shall be replaced at least every **[\*\*\*]** and back cushions for seats shall be replaced as needed in conjunction with heavy maintenance checks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) The galley and lavatory floor laminate shall be replaced at every heavy maintenance check;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) The exterior shall be dry-washed every sixty (60) days; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) The exterior of the engines and the wings shall be dry-washed as needed.

**Section 4.04 Access and Use of American Systems**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Systems Access**. American shall provide Contractor with access to American Systems as determined by American to be necessary or appropriate for Contractor to provide the Regional Airline Services.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Use of Systems**. Contractor shall make reasonable efforts to use all American Systems and other systems, including ACARS, any American Systems relating to fuel performance and other such American Systems deemed necessary or appropriate by American for Contractor to provide Regional Airline Services. Neither Contractor nor Contractor's Agents shall access or use any American System for any purpose other than to provide Regional Airline Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Systems Support**. Contractor shall be responsible for, and shall bear all costs and expenses in connection with, maintenance and performance of any software and equipment it uses to access or interface with the American Systems at all times; *provided* that American shall be responsible for the costs and expenses of procuring the software, equipment and licenses Contractor will require to access American's Systems.

**Section 4.05 Processing and Adjudicating Customer or Passenger Complaints**. American shall process and adjudicate all customer or passenger complaints related to this Agreement and the Regional Airline Services and Contractor shall assist American in processing and adjudicating such customer or passenger complaints as American may determine. American shall have complete and exclusive control of the method of processing and adjudicating such customer or passenger complaints and any final disposition or handling of any customer or passenger complaint shall be in American's sole discretion.

**Section 4.06 Catering Products and Catering Services**. American shall provide, or arrange for another Person to provide, all Catering Products and Catering Services for flights of Covered Aircraft (excluding any Maintenance Flights). Contractor must provide Notice to American of any catering-related LOI that could result in a liability to American per <u>Section IV</u> of <u>Schedule 4</u> within five (5) days of receipt of such LOI and allow for the involvement of American in the resolution process of such LOI so that both Parties can work to minimize any fines to American.

**ARTICLE V** 

**SAFETY** 

**Section 5.01 Incidents or Accidents.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Incidents or Accidents**. Contractor shall promptly notify American's System Operations Control/Flight Dispatch Office of any Accident, Incident or any irregularity that could reasonably be expected to result in a complaint or claim by passengers or an investigation by a Governmental Authority involving a Covered Aircraft occurring during Contractor's provision of Regional Airline Services, including those that result in any injury or death to persons or damage to property. To the extent Contractor is involved in any such Accident, Incident or irregularity, it shall furnish in writing to American detail concerning the same and shall cooperate with American at Contractor's sole cost and expense in any appropriate internal or external investigation. Contractor shall provide American with access to Contractor's automated Accident or Incident reporting system, any other system or systems of Contractor that provide information regarding the status of, or information relevant to, Accidents or Incidents, and all reports prepared or derived from such systems that pertain to an Accident or Incident that reasonably may be expected to have relevance to the Covered Aircraft or the Regional Airline Services. Contractor shall maintain an emergency response plan in accordance with the provisions of the Aviation Disaster Family

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Assistance Act of 1996 and any amendments or regulations relating thereto. Contractor shall promptly inform American in writing of any material modifications to such plan. American shall manage the customer response efforts on behalf of Contractor in the case of an Accident or Incident involving Regional Airline Services or the Covered Aircraft, including responding to an Accident or Incident and providing necessary assistance and services to the family members of passengers and Contractor shall fully cooperate in such efforts at its sole cost and expense. Prior to the Implementation Date of the first Covered Aircraft hereunder, Contractor and American shall enter into the Emergency Assistance Agreement as mutually agreed upon by the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Accident Reports**. To the extent that it would not violate any law, rule or regulation of any Governmental Authority then applicable to Contractor, Contractor shall promptly furnish to American a copy of every written report and plan that Contractor files or intends to file with the FAA, NTSB or any other Governmental Authority, relating to any Accident or Incident involving a Covered Aircraft or Regional Airline Services when and only if such Accident or Incident is claimed to have resulted in the death or injury to any person or the loss of, damage to or destruction of any property if such Accident or Incident could reasonably be expected to result in a fine, penalty or other liability to American or Contractor. Contractor shall also provide prompt Notice to American of all irregularities involving any Scheduled Flights (including, without limitation, irregularities that result in any injury to or death of persons or material damage to property) as soon as such information is available and shall furnish to American in writing detail regarding such irregularity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **International Air Transport Association Operational Safety Audit**. Contractor shall be compliant with the safety standards set forth by the International Air Transport Association Operational Safety Audit, and upon Notice from American from time to time, Contractor agrees to provide American with evidence in a form reasonably satisfactory to American of such compliance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Emergency Assistance Agreement**. The foregoing provisions of this Article V shall in no way be deemed to limit, restrict or amend any of the obligations of the Contractor pursuant to the Emergency Assistance Agreement.

**ARTICLE VI** 

**OTHER OBLIGATIONS OF CONTRACTOR** 

**Section 6.01 FAA or DOT Certification Suspension or Revocation**. If Contractor discovers or is notified of the suspension or revocation, or potential suspension or revocation, of an FAA or DOT certification used in connection with the Scheduled Flights or Covered Aircraft, then Contractor shall immediately deliver Notice to American of such suspension or revocation.

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**Section 6.02 Fuel Efficiency Program**. Without limiting the obligations of Contractor pursuant to the terms hereof, Contractor shall promptly adopt and adhere to a fuel efficiency program as described on <u>Schedule 5</u>, as long as Contractor's adoption or adherence to such fuel efficiency program does not materially and adversely impact the safety of Regional Airline Services under FAA operational specifications, or other regulatory constraints, or the airworthiness of the Covered Aircraft.

**Section 6.03 Use of Approved Marks and Copyrights**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Ownership of Marks**. Contractor acknowledges and agrees that American, AMR and/or one of their Affiliates, as the case may be, is the sole worldwide owner or licensee of the Marks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **License to Use Approved Marks**. Subject to the terms and conditions of this Agreement, including service quality requirements, Contractor is hereby granted the non-exclusive, non-transferable right and license to use the Approved Marks solely as specified by American from time to time and solely in connection with the performance and operation of Regional Airline Services in accordance with this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Restrictions on Use**. Contractor may not use the Marks in any manner other than as permitted by this Agreement. Contractor shall only use the Marks in a manner consistent with American's quality standards, as they may exist from time to time, and shall not utilize the Marks in any manner that would diminish their value or harm the reputation of American, AMR or any of their Affiliates. All goodwill associated with Contractor's use of the Marks will inure solely to the benefit of the owner of such Marks. Upon termination of this Agreement, Contractor will immediately cease use of the Marks, unless otherwise authorized in another agreement with American, AMR or one of their Affiliates. Under no circumstance will Contractor: (i) use or display any of the Marks that Contractor obtained from a source other than AADAMS; (ii) alter the Marks in any way; or (iii) transfer, sell, or give away to a third party any products bearing the Marks that do not meet American's quality standards. Contractor agrees that it shall in no way contest or deny the validity of, or the right or title of American, AMR and/or one of their Affiliates, as the case may be, in or to the Marks, and shall not encourage or assist others directly or indirectly to do so, whether during the Term or thereafter. Contractor shall not use or register any domain name that is identical to or similar to any of the Marks without first receiving American's prior Consent. American may inspect Contractor's use of the Marks at any time to ensure Contractor's use of such Marks is consistent with this Agreement. Upon written request from American from time to time, Contractor agrees to provide American with reports setting forth Contractor's use of the Marks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Marking**. For all uses of Approved Marks, Contractor and its respective Affiliates shall affix proper trademark or service mark notice: the symbol <sup>®</sup> for registered trademarks or service marks, or the symbols <sup>™</sup> or SM for unregistered trademarks or service marks, and where requested by American, a statement that the Approved Mark "is a (registered, if applicable) trademark (or service mark, if applicable) of American Airlines, Inc. (or AMR or any of their Affiliates, if applicable) and is being used by Contractor under license from American Airlines, Inc. (or AMR or any of their Affiliates, if applicable)."

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Additional Approved Marks**. Contractor has no right or permission to use any of the Marks, other than the Approved Marks, without first receiving American's express Consent to do so. If Contractor receives American's Consent to use any additional Marks, then such Marks will then be considered Approved Marks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **New Marks**. American has the right to amend the Approved Marks list at any time. If American removes a Mark from the Approved Mark list, Contractor must cease all use of the Mark within a time period to be determined in American's sole discretion. Similarly, if American adopts a new Mark that it desires Contractor to use in connection with the performance and operation of Regional Airline Services, it will notify Contractor in writing and specify a deadline by which Contractor must incorporate and use the new Mark.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **Further Assurances**. At American's request, Contractor agrees to cooperate with American, AMR and their Affiliates in connection with applications and other filings to create, register, maintain, or otherwise perfect American's, AMR's and their Affiliates' rights in Marks, at American's sole cost and expense. Upon termination of this Agreement, Contractor agrees to do everything necessary to effect cancellation of the recordation, if any, of Contractor as a recorded licensee of the Marks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **License and Use of American Software**. American owns Copyrights and other rights in its proprietary software that it makes available to Contractor under this Agreement (the "***American Software***"). American grants to Contractor a nonexclusive, nontransferable right and license to install, execute and use American Software in the manner and for the purposes described in this Agreement and solely for the purposes of performing and operating Regional Airline Services in accordance with this Agreement. Contractor may use American Software only as expressly permitted in this Agreement. Contractor may not make copies of American Software, provide Third Parties with access to American Software (other than Contractor Agents who are

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provided access in connection with Contractor providing Regional Airline Services), distribute American Software, or modify American Software without American's prior Consent. Contractor may not dissemble, decompile, reverse engineer, or modify American Software. The American Software shall be considered American's Confidential Information for all purposes under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) **Effect on American Data Provisions**. Nothing in this <u>Section</u> <u>6.03</u> gives Contractor any additional license or rights in and to American Data that is not expressly set forth in this Agreement, nor does it affect Contractor's duties with respect to American Data under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) **Infringement by Third Parties.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) In the event that Contractor learns of any infringement or unauthorized use of any of the Marks, American's Copyrights or American Software, it shall promptly notify American in writing. American has the sole right to send infringement notices and bring infringement actions. If requested to do so, Contractor shall cooperate with and fully assist American in any such action, including without limitation providing Contractor's files, communications, records, and other information relating to its Regional Airline Services or joining the action as a party, if necessary, at American's sole cost and expense. Any award or portion of an award, recovered by American in any such action or proceeding commenced by American shall belong solely to American.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If a Third Party institutes a legal action against Contractor for its use of a Copyright, American Software or an Approved Mark, as provided in this Agreement, Contractor shall promptly notify American and its liability insurance carriers of such suit in writing. American shall defend any such action, and Contractor shall cooperate in such defense as requested by American.

**Section 6.04 Use of Contractor Marks**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Ownership of Marks**. American acknowledges and agrees that Contractor, Holdings and/or one of their Affiliates, as the case may be, is the sole worldwide owner or licensee of any trademark, trade name, trade dress, service mark, logo, domain name or other indicia of ownership owned or used by Contractor, Holdings and/or one of their Affiliates that are approved for use by American (the "***Contractor Marks***").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **License to Use Contractor Marks**. American is hereby granted, or Contractor shall cause the owner or licensee thereof to grant to American, the non-exclusive, non-transferable right and license to use the Contractor Marks as set forth on <u>Schedule 6</u> solely as specified by Contractor from time to time and solely in connection with any information relating to the operation of the Regional Airline Services on American's behalf.

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**Section 6.05 American's AAdvantage<sup>®</sup> Program**. Without the express Consent of American, Contractor shall not promote or offer any frequent flyer or similar customer appreciation or reward program to passengers on flights on the Covered Aircraft, other than American's AAdvantage<sup>®</sup> frequent flyer program (as such program may be amended from time to time) or any other similar program developed or designated by American or as otherwise requested or directed by American in its sole discretion.

**Section 6.06 Periodic Reports**. Contractor shall provide detailed reports in connection with its performance of the Regional Airline Services, as may be reasonably requested by American from time to time and in the form provided by American from time to time, including those specifically referenced in this Agreement (but without duplicating any notice or information otherwise required to be provided pursuant to this Agreement). Without limiting the foregoing, periodic reports may include but are not limited to: (a) scheduled and completed maintenance operations; (b) customer service complaints received by Contractor; (c) tax information relevant to any Pass Through Costs or American Absorbed Expenses or any in-flight sales on a Scheduled Flight; (d) Controllable Completion Rate or any data used in the calculation thereof; (e) cancellations of Scheduled Flights; (f) Approved Marks; (g) any licenses permitting the sale and dispensation of beer, wine, liquor or any other alcoholic beverages; and (h) any other operational statistics in Contractor's possession that is directly or indirectly related to the provision of Regional Airline Services to American hereunder.

**Section 6.07 [\*\*\*]** 

**Section 6.08 Contractor Labor Strike**. If a Contractor Labor Strike occurs, American shall be obligated to pay to Contractor only the Covered Aircraft Monthly Rate and Covered Aircraft Day Rate for each Covered Aircraft for the first **[\*\*\*]** of such Contractor Labor Strike. Thereafter, American shall have no obligation to Contractor to pay to Contractor the Fixed Costs which may have become due and owing with respect to the Covered Aircraft as a result of the Contractor Labor Strike. For the avoidance of doubt, (x) after a Contractor Labor Strike continues for more than **[\*\*\*]**, American no longer shall have any obligation to pay Contractor the Fixed Costs for each Covered Aircraft for so long as such Contractor Labor Strike continues, and (y) during the duration of any Contractor Labor Strike, each such day shall not be included in the calculation of the Minimum Average Monthly Block Hour Utilization. If a Contractor Labor Strike continues for more than **[\*\*\*]**, American shall have the right and option in its sole discretion, beginning on the **[\*\*\*]** of such Contractor Labor Strike and at the end of each subsequent **[\*\*\*]**, to purchase from Contractor up to **[\*\*\*]** of the Covered Aircraft available for operations and the performance of the Regional Airline Services as contemplated by this Agreement at the time that such Contractor Labor Strike commenced (rounded up to the next whole number of Covered Aircraft) for a purchase price for each applicable Covered Aircraft equal to the Contractor's book value associated with such Covered Aircraft determined in accordance with generally accepted accounting principles consistently applied. Upon American's purchase of such Covered Aircraft, this Agreement shall be terminated as to each such purchased Covered Aircraft; *provided*, that if there are fewer than **[\*\*\*]** Covered Aircraft remaining under the Agreement, American may elect to purchase all **[\*\*\*]** of such Covered Aircraft and terminate this Agreement in its entirety. For example, if there were a Contractor Labor Strike when there are **[\*\*\*]** Covered Aircraft under this Agreement, at **[\*\*\*]** of such Contractor Labor Strike, American may elect to

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purchase up to **[\*\*\*]** Covered Aircraft and terminate this Agreement as to such Covered Aircraft; at **[\*\*\*]** of such Contractor Labor Strike, American may elect to purchase up to a further **[\*\*\*]** Covered Aircraft. Contractor shall, in connection with any financing obtained by Contractor in connection with the Covered Aircraft, obtain the appropriate approvals or consent of any financier to effectuate the foregoing. For the avoidance of doubt, in the event of a Contractor Labor Strike the terms of this <u>Section</u> <u>6.08</u> shall apply **[\*\*\*]**.

**ARTICLE VII** 

**CONTRACTOR'S COMPENSATION** 

**Section 7.01 Base and Incentive Payments**. Subject to the terms and conditions of this Agreement, during the Initial Term and any Extension Term, for and in consideration of the Regional Airline Services to be provided by Contractor hereunder and the operation of the Covered Aircraft, American shall pay to Contractor, the compensation for such Initial Term or any Extension Term provided on <u>Schedule 7</u> for such Covered Aircraft; *provided*, *however*, that American shall not be responsible for any cost or expense, or be required to make any payment to Contractor, in connection with Maintenance Flights. **[\*\*\*]**

**Section 7.02 Costs and Expenses**. Except as otherwise provided in this Agreement, all costs and expenses incurred in connection with the Regional Airline Services shall be payable pursuant to <u>Schedule 4</u>.

**Section 7.03 Cost Savings**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Duty to Minimize Costs**. In connection with providing Regional Airline Services to American, Contractor shall minimize costs and expenses incurred by it if such costs and expenses (including aircraft fuel costs and expenses) are Pass Through Costs or American Absorbed Expenses, or costs or expenses otherwise directly or indirectly reimbursable or paid by American to Contractor in accordance with the terms and conditions of this Agreement. American shall reimburse Contractor for the actual out-of-pocket costs and expenses associated with such cost minimization efforts. American shall use commercially reasonable efforts to cooperate with Contractor's reasonable requests to minimize costs and expenses; for example and not limitation, **[\*\*\*]**. Further, with respect to any service or item at substantially similar quality or service level and the cost of which American is required to reimburse Contractor hereunder other than insurance required pursuant to the terms hereof, if (i) American can provide or arrange to provide such service or item at a lower cost than the reimbursement cost that American would otherwise be charged, and (ii) the provision of or arrangement to provide such service or item by Contractor would not materially adversely affect Contractor under any contracts or agreements, then Contractor shall allow American to provide or arrange to provide such service or item in order to permit American to lower its costs.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **American Cost Initiatives**. At any time and from time to time, American may by Notice to Contractor either identify bona fide opportunities for reductions in or savings to Pass Through Costs (other than insurance required pursuant to the terms hereof) or American Absorbed Expenses, including costs and expenses associated with services or items procured by Contractor pursuant to this Agreement (each an "***American Cost Initiative***"). Within at least fifteen (15) days following such Notice from American, if Contractor anticipates any additional costs directly attributable to such American Cost Initiative, Contractor shall provide American with a binding estimate of any additional out-of-pocket costs and expenses to Contractor attributable thereto, so that American may determine whether to require Contractor to implement such American Cost Initiative. In the event that American determines that Contractor must implement such American Cost Initiative, it shall provide Notice thereof to Contractor and Contractor shall implement such American Cost Initiative no later than ninety (90) days following such Notice and such reasonable and documented out-of-pocket costs and expenses actually incurred by Contractor directly as a result of the implementation of such American Cost Initiative shall be deemed Pass Through Costs.

**Section 7.04 [\*\*\*]** 

**ARTICLE VIII** 

**REPRESENTATIONS, WARRANTIES AND ACKNOWLEDGEMENTS** 

**Section 8.01 Contractor's Representations and Warranties**. Contractor represents and warrants to American as of the date hereof as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Organization and Qualification**. Contractor is a duly organized and validly existing corporation in good standing under the laws of the State of Indiana and has the corporate power and authority to own, operate and use its assets and provide the Regional Airline Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Authority Relative to this Agreement**. Contractor has the corporate power and authority to execute and deliver this Agreement and to consummate the transactions contemplated hereby in accordance with the terms hereof. The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by all necessary corporate action on the part of Contractor. This Agreement has been duly and validly executed and delivered by Contractor and is, assuming due execution and delivery thereof by American and that American has legal power and right to enter into this Agreement, a valid and binding obligation of Contractor, enforceable against Contractor in accordance with its terms, except as enforcement hereof may be limited by bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws, rules or regulations of a Governmental Authority relating to or affecting the enforcement of creditors' rights generally and legal principles of general applicability governing the availability of equitable remedies (whether considered in a proceeding in equity or at law or otherwise under the applicable laws, rules or regulations of a Governmental Authority).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Conflicts; Defaults**. Neither the execution or delivery of this Agreement nor the performance by Contractor of the transactions contemplated hereby will (i) violate, conflict with, or constitute a default under any of the terms of Contractor's certificate of incorporation, by-laws, or any provision of, or result in the acceleration of any obligation under, any material contract or

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obligation to which Contractor is a party; (ii) result in the creation or imposition of liens in favor of any third person or entity; (iii) violate any law, statute, judgment, decree, order, rule or regulation of any Governmental Authority; (iv) constitute any event which, after Notice or lapse of time or both, would result in such violation, conflict, default, acceleration or creation or imposition of liens; or (v) cause American to be in violation or breach of any term of any Collective Bargaining Agreement with the pilots of American entered into by American or any of its Affiliates as of the Effective Date, the terms of which are set forth on <u>Schedule 8</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Approvals**. Contractor possesses all approvals, certificates, licenses, permits or other authorizations of any Governmental Authority that are necessary or appropriate to execute and deliver this Agreement and to provide the Regional Airline Services and otherwise perform its obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Permits**. Contractor possesses all certificates, authorizations and permits issued by the FAA and other applicable federal, state or foreign regulatory authorities necessary to conduct its business, maintain the airworthiness of the Covered Aircraft, provide Regional Airline Services and otherwise perform its obligations under this Agreement, and Contractor has not received any notice of proceedings relating to the revocation or modification of any such certificate, authorization or permit which, individually or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would result in a material adverse effect on Contractor or its ability to conduct its business, maintain the airworthiness of the Covered Aircraft, provide Regional Airline Services and otherwise perform its obligations under this Agreement.

**Section 8.02 American Representations and Warranties**. American represents and warrants to Contractor as of the date hereof as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Organization and Qualification**. American is a duly incorporated and validly existing corporation in good standing under the laws of the State of Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Authority Relative to this Agreement**. American has the corporate power and authority to execute and deliver this Agreement and to consummate the transactions contemplated hereby in accordance with the terms hereof. The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by all necessary corporate action on the part of American. This Agreement has been duly and validly executed and delivered by American and is, assuming due execution and delivery thereof by Contractor and that Contractor has legal power and right to enter into this Agreement, a valid and binding obligation of American, enforceable against American in accordance with its terms, except as enforcement hereof may be limited by bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws, rules or regulations of a Governmental Authority relating to or affecting the enforcement of creditors' rights generally and legal principles of general applicability governing the availability of equitable remedies (whether considered in a proceeding in equity or at law or otherwise under the applicable laws, rules or regulations of a Governmental Authority).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Conflicts; Defaults**. Neither the execution or delivery of this Agreement nor the performance by American of the transactions contemplated hereby will (i) violate, conflict with, or constitute a default under any of the terms of American's certificate of incorporation, by-laws, or any provision of, or result in the acceleration of any obligation under, any material contract or obligation to which American is a party; (ii) result in the creation or imposition of any liens in favor of any third person or entity; (iii) violate any law, statute, judgment, decree, order, rule or regulation of any Governmental Authority applicable to American; (iv) constitute any event which, after Notice or lapse of time or both, would result in such violation, conflict, default, acceleration or creation or imposition of liens; or (v) violate the terms of American's Collective Bargaining Agreement set forth on <u>Schedule 8</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Approvals**. Subject to American obtaining approval of this Agreement by the Bankruptcy Court under the Chapter 11 Cases (as defined in <u>Section</u> <u>13.22</u> of this Agreement), American possesses all approvals, certificates, licenses, permits or other authorizations of any Governmental Authority that are necessary to execute and deliver this Agreement and perform its obligations hereunder. American shall use commercially reasonable efforts to obtain approval of this Agreement by the Bankruptcy Court under the Chapter 11 Cases (as defined in <u>Section</u> <u>13.22</u> of this Agreement), subject to Contractor's reasonable assistance and cooperation.

**ARTICLE IX** 

**INSURANCE** 

**Section 9.01 Minimum Insurance Coverage**. Throughout the Term, in addition to any insurance required to be maintained by Contractor or by any applicable Governmental Authority, Contractor shall maintain, or cause to be maintained, in full force and effect policies of insurance with insurers of recognized reputation and responsibility, in each case to the extent available and of the type usually carried by corporations engaged in the same or similar business, similarly situated and owning or operating similar aircraft and engines and covering risks of the kind customarily insured, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Aviation Hull and Liability Insurance**. Aviation hull and liability insurance, including aircraft third party, passenger liability (including passengers' baggage and personal effects), personal injury, cargo and mail legal liability, products and completed operations liability, contractual liability insurance and all-risk ground and flight physical damage, with a combined single limit of not less than **[\*\*\*]** per occurrence (and in the aggregate with respect to products and completed operations), and with respect to non-passenger personal injury, a sublimit of **[\*\*\*]** per occurrence and in the aggregate or such other limit which is customarily available in the industry. Such insurance shall also provide protection for war and other allied perils and include war and other allied perils liability insurance for passengers and third parties in the form of extended coverage endorsement (aviation liabilities) per clause AVN52E or its market equivalent. To the extent that the required war risks coverage in the preceding sentence is not included in such policies but is instead provided under separate insurance policies, government insurance and/or indemnification, Contractor shall provide evidence thereof in a form reasonably satisfactory to American.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Workers' Compensation Insurance and Employer's Liability Insurance**. Workers' compensation providing the statutory coverage required by the appropriate jurisdiction and employer's liability with a limit of not less than **[\*\*\*]** each accident for bodily injury by accident or **[\*\*\*]** each employee for bodily injury by disease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Automobile Liability Insurance**. Automobile liability insurance covering all owned, non-owned leased and hired vehicles with policy limits of not less than **[\*\*\*]** combined single limit per occurrence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Other Property and Liability Insurance**. Other property and liability insurance coverages (including without limitation property damage liability insurance, exclusive of any manufacturer's product liability insurance) of the types and in the amounts that would be considered prudent for a business organization of Contractor's size and nature, under the insurance market conditions in effect at the time of placement, but in any event of the type and the amount that American may require to prevent or minimize a disruption in the provision of Regional Airline Services resulting from a casualty or liability incident related to any of Contractor's operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Deductibles**. All coverages described in this <u>Section</u> <u>9.01</u> shall be placed with deductibles prudent for a business organization of Contractor's size and nature, under the insurance market conditions in effect at the time of placement.

**Section 9.02 Endorsements**. Contractor shall cause the liability policies described in <u>Section</u> <u>9.01</u> to be duly and properly endorsed by Contractor's insurance underwriters as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Subrogation Rights**. To provide that the underwriters shall waive subrogation rights against American, except for its gross negligence or willful misconduct;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Additional Insureds**. To provide that American and its Affiliates shall be named as additional insured parties under liability coverage and only as respect to the operations of the named insured. Additional insured coverage is not provided to any party with respect to claims arising out of their legal liability as a manufacturer, repairer, or servicing agent of the aircraft;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Right of Contribution**. To provide that such insurance shall be primary to and without right of contribution from any other insurance which may be available to the additional insureds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Breach of Warranty**. To include a "***breach of warranty***" provision in favor of the additional insureds insuring their interest regardless of any breach or violation by Contractor of any warranties, declarations or conditions contained in such insurance policies;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Cross Liability Warranty**. With respect to the aviation liability insurance only, to include a "***cross liability warranty***" provision, providing American and each of the other additional insureds the benefit of all provisions of the aviation liability insurance policy, except the limits of liability, in the same manner as if there were a separate policy covering each additional insured (the total liability of the insurers, in respect of any and all insureds, shall not exceed the limits of liability set forth in the policy);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Contractual Liability**. With respect to the aviation liability insurance only, to accept and insure Contractor's hold harmless and indemnity undertakings set forth in this Agreement, but only to the extent of the coverage afforded by the aviation liability insurance policy or policies; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **No Cancellation or Amendment**. With respect to all of the insurance policies described in <u>Section</u> <u>9.01</u>, to provide that such policies shall not be canceled, terminated or the limits or coverage required hereunder be reduced (adverse change) until thirty (30) days after receipt by American of Notice from such insurers (or Contractor's insurance broker) of such cancellation, termination or reduction (but seven (7) days or such lesser period after Notice shall have been sent to American (i) in respect of war risk insurance or (ii) if the cancellation or adverse change is a result of Contractor's failure to pay the applicable workers compensation or property insurance premiums).

**Section 9.03 Evidence of Insurance Coverage**. On the Effective Date and on each anniversary thereof during the Term, Contractor shall furnish to American a certificate of insurance certifying that such insurance and endorsements are in full force and effect. Such certificate shall be issued per the AVN67B form. If Contractor fails to acquire or maintain insurance as herein provided, then American may at its option secure such insurance on Contractor's behalf and Contractor shall take all actions requested or directed by American and cooperate with American in connection with obtaining or maintaining such coverage.

**ARTICLE X** 

**INDEMNIFICATION** 

**Section 10.01 CONTRACTOR'S INDEMNIFICATION OF AMERICAN INDEMNIFIED PARTIES**. CONTRACTOR SHALL INDEMNIFY, DEFEND AND HOLD HARMLESS THE AMERICAN INDEMNIFIED PARTIES FROM AND AGAINST ANY AND ALL CLAIMS ARISING OUT OF, CAUSED BY OR OCCURRING IN CONNECTION WITH (OR ALLEGED TO ARISE OUT OF, BE CAUSED BY OR BE OCCURRING IN CONNECTION WITH) (A) THE DEATH OF OR INJURY TO PERSONS (INCLUDING ALL INVITEES, GUESTS, PASSENGERS, SHIPPERS, EMPLOYEES, AND AGENTS OF CONTRACTOR), OR DELAY OR LOSS OF OR DAMAGE TO PROPERTY (INCLUDING PROPERTY OF CONTRACTOR AND OF ITS INVITEES, GUESTS, PASSENGERS, SHIPPERS, EMPLOYEES AND AGENTS AND PROPERTY OF EACH AMERICAN INDEMNIFIED PARTY, INCLUDING AIRCRAFT, AIRFRAMES, ANY ENGINE, ANY PART OF ANY THEREOF, BAGGAGE OR CARGO) OCCURRING WHILE SUCH PERSONS OR PROPERTY ARE UNDER THE CONTROL OR IN THE CUSTODY OF, OR BEING TRANSPORTED BY

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CONTRACTOR (INCLUDING, FOR THE AVOIDANCE OF DOUBT, CLAIMS ARISING OUT OF DEATH OF OR INJURY TO REGIONAL AIRLINE SERVICES PASSENGERS TRAVELING ON ANY TICKETS REGARDLESS OF ANY LIMITS OR CONDITIONS OF LIABILITY OR OTHER JURISDICTIONAL LIMITATIONS ON CLAIMS), EXCEPT TO THE EXTENT CAUSED BY THE WILLFUL MISCONDUCT OF AMERICAN, ANY AFFILIATE OF AMERICAN OR ANY AMERICAN AGENT; (B) NEGLIGENT ACTS OR NEGLIGENT OMISSIONS OF CONTRACTOR, ANY AFFILIATE OF CONTRACTOR, OR ANY CONTRACTOR AGENTS, THAT ARE IN ANY WAY RELATED TO PROVIDING REGIONAL AIRLINE SERVICES OR USE OF THE AMERICAN GATES AND FACILITIES, EXCEPT FOR CLAIMS OF THE TYPE REFERRED TO IN <u>SECTION 10.02(A)</u> ARISING FROM THE DEATH OF, OR INJURY TO, PERSONS, OR DELAY OR LOSS OF OR DAMAGE TO PROPERTY OCCURRING WHILE SUCH PERSONS OR PROPERTY ARE IN THE CONTROL OR CUSTODY OF AMERICAN, IN WHICH CASE AMERICAN SHALL INDEMNIFY AND REIMBURSE THE CONTRACTOR'S INDEMNIFIED PARTIES, NOTWITHSTANDING SUCH NEGLIGENT (BUT NOT WILLFUL) ACTS OR OMISSIONS OF CONTRACTOR, ANY AFFILIATE OF CONTRACTOR OR ANY CONTRACTOR AGENTS; (C) THE PERFORMANCE, IMPROPER PERFORMANCE OR NONPERFORMANCE, DIRECTLY OR INDIRECTLY, OF ANY COVENANT OR AGREEMENT OF CONTRACTOR PURSUANT TO THIS AGREEMENT, OR ANY BREACH OF ANY REPRESENTATION OR WARRANTY OF CONTRACTOR CONTAINED IN <u>SECTION 8.01</u>; AND (D) CONTRACTOR'S NEGLIGENT USE OF A COPYRIGHT, APPROVED MARK OR AMERICAN SYSTEM OR SOFTWARE.

**Section 10.02 AMERICAN INDEMNIFICATION OF CONTRACTOR**. AMERICAN SHALL INDEMNIFY, DEFEND AND HOLD HARMLESS THE CONTRACTOR'S INDEMNIFIED PARTIES FROM AND AGAINST ANY AND ALL CLAIMS ARISING OUT OF, CAUSED BY OR OCCURRING IN CONNECTION WITH (OR ALLEGED TO ARISE OUT OF, BE CAUSED BY OR OCCURRING IN CONNECTION WITH) (A) THE DEATH OF OR INJURY TO PERSONS (INCLUDING ALL INVITEES, GUESTS, PASSENGERS, SHIPPERS, EMPLOYEES, ANY OPERATOR OF THE COVERED AIRCRAFT AND AGENTS OF AMERICAN), OR DELAY OR LOSS OF OR DAMAGE TO PROPERTY (INCLUDING PROPERTY OF AMERICAN AND OF ITS INVITEES, GUESTS, PASSENGERS, SHIPPERS, EMPLOYEES AND AGENTS AND PROPERTY OF CONTRACTOR'S INDEMNIFIED PARTIES, INCLUDING AIRCRAFT, AIRFRAMES, ANY ENGINE, ANY PART OF ANY THEREOF, BAGGAGE OR CARGO) OCCURRING WHILE SUCH PERSONS OR PROPERTY ARE UNDER THE CONTROL OR IN THE CUSTODY OF, OR BEING TRANSPORTED BY, AMERICAN, EXCEPT TO THE EXTENT CAUSED BY THE WILLFUL MISCONDUCT OF CONTRACTOR, ANY AFFILIATE OF CONTRACTOR OR ANY CONTRACTOR AGENTS; (B) NEGLIGENT ACTS OR NEGLIGENT OMISSIONS OF AMERICAN, ANY AFFILIATE OF AMERICAN OR ANY AMERICAN AGENT THAT ARE IN ANY WAY RELATED TO PROVIDING REGIONAL AIRLINE SERVICES, EXCEPT FOR CLAIMS OF THE TYPE REFERRED TO IN <u>SECTION 10.01(A)</u> ARISING FROM THE DEATH OF, OR INJURY TO, PERSONS, OR DELAY OR LOSS OF OR DAMAGE TO PROPERTY OCCURRING WHILE SUCH PERSONS OR PROPERTY ARE IN THE CONTROL OR CUSTODY OF, OR ARE BEING TRANSPORTED BY, CONTRACTOR (IN WHICH EVENT CONTRACTOR SHALL INDEMNIFY AND REIMBURSE THE AMERICAN

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INDEMNIFIED PARTIES NOTWITHSTANDING SUCH NEGLIGENT (BUT NOT WILLFUL) ACTS OR OMISSIONS OF AMERICAN, ANY AFFILIATE OF AMERICAN OR ANY AMERICAN AGENT); AND (C) THE PERFORMANCE, IMPROPER PERFORMANCE OR NONPERFORMANCE, DIRECTLY OR INDIRECTLY, OF ANY COVENANT OR AGREEMENT OF AMERICAN PURSUANT TO THIS AGREEMENT, OR ANY BREACH OF ANY REPRESENTATION OR WARRANTY OF AMERICAN CONTAINED IN <u>SECTION 8.02</u>.

**Section 10.03 Procedure for Indemnification Claims**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Indemnification by Contractor**. Any American Indemnified Party entitled to indemnification from Contractor under the terms and conditions of this Agreement shall provide Contractor with prompt Notice of any Claim that such American Indemnified Party believes gives rise to a claim for indemnity against Contractor. The Contractor shall be entitled, if it accepts financial responsibility for the third party Claim, to control the defense of, to settle or to pay for any such third party Claim at its expense and by its counsel; *provided*, that the American Indemnified Party's prior Consent (which may not be unreasonably withheld or delayed) must be obtained prior to settling any such third party Claim. The American Indemnified Party shall provide Contractor with such information as Contractor shall reasonably request to defend or resolve any such third party Claim and shall otherwise cooperate with Contractor in the defense or resolution of any such third party Claim. If Contractor does not accept financial responsibility for the third party Claim or fails to defend against the third party Claim that is the subject of a Notice under this <u>Section</u> <u>10.03(a)</u> within thirty (30) days of receiving such Notice (or sooner if the nature of the third party Claim so requires), or otherwise contests its obligation to indemnify the American Indemnified Party in connection therewith, the American Indemnified Party may, upon providing Notice to Contractor, pay, compromise or defend such third party Claim. In the latter event, the American Indemnified Party, by proceeding to defend itself or settle the matter, does not waive any of its rights hereunder to later seek indemnification from Contractor. Except as set forth in this <u>Section</u> <u>10.03(a)</u>, the American Indemnified Party shall not enter into any settlement or other compromise or Consent to a judgment with respect to a third party Claim as to which Contractor has an indemnity obligation hereunder without the prior Consent of Contractor (which may not be unreasonably withheld or delayed), and the entering into of any settlement or compromise, or the Consent to any judgment in violation of the foregoing shall constitute a waiver by any American Indemnified Party of its right to indemnity hereunder to the extent Contractor is materially prejudiced thereby. Contractor shall be subrogated to the rights of the American Indemnified Party to the extent that Contractor pays for any loss, damage or expense suffered by the American Indemnified Party hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Indemnification by American**. Any Contractor Indemnified Party entitled to indemnification from American under the terms and conditions of this Agreement shall provide American with prompt Notice of any Claim that such Contractor Indemnified Party believes gives rise to a claim for indemnity against American. American shall be entitled, if it accepts financial responsibility for the third party Claim, to control the defense of, to settle or to pay for any such

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third party Claim at its own expense and by its own counsel; *provided*, that the Contractor Indemnified Party's prior Consent (which may not be unreasonably withheld or delayed) must be obtained prior to settling any such third party Claim. The Contractor Indemnified Party shall provide American with such information as American shall reasonably request to defend or resolve any such third party Claim and shall otherwise cooperate with American in the defense or resolution of any such third party Claim. If American does not accept financial responsibility for the third party Claim or fails to defend against the third party Claim that is the subject of a Notice under this <u>Section</u> <u>10.03(b)</u> within thirty (30) days of receiving such Notice (or sooner if the nature of the third party Claim so requires), or otherwise contests its obligation to indemnify the Contractor Indemnified Party in connection therewith, the Contractor Indemnified Party may, upon providing Notice to American, pay, compromise or defend such third party Claim. In the latter event, the Contractor Indemnified Party, by proceeding to defend itself or settle the matter, does not waive any of its rights hereunder to later seek indemnification from American. Except as set forth in this <u>Section</u> <u>10.03(b)</u>, the Contractor Indemnified Party shall not enter into any settlement or other compromise or Consent to a judgment with respect to a third party Claim as to which American has an indemnity obligation hereunder without the prior Consent of American (which may not be unreasonably withheld or delayed), and the entering into of any settlement or compromise, or the Consent to any judgment in violation of the foregoing shall constitute a waiver by any Contractor Indemnified Party of its right to indemnity hereunder to the extent American is prejudiced thereby. American shall be subrogated to the rights of the Contractor Indemnified Party to the extent that American pays for any loss, damage or expense suffered by the Contractor Indemnified Party hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Joint Claim**. Notwithstanding anything contained in this Section 10.03 to the contrary, Contractor and American shall cooperate in the defense of any Claim imposed jointly against them.

**Section 10.04 Employer's Liability and Workers' Compensation**. American, on the one hand, and Contractor, on the other hand, shall bear full responsibility for their respective employer's liability and workers' compensation liability to their respective officers, directors, employees or agents on account of injury or death resulting from or sustained in the performance of their respective service under this Agreement. American, on the one hand, and Contractor, on the other hand, with respect to their employees, hereby accept full and exclusive liability for the payment of workers' compensation and employer's liability insurance premiums with respect to such employees, and for the payment of all taxes, contributions or other payments for unemployment compensation or old age benefits, pensions or annuities now or hereafter imposed upon employers by any Governmental Authority, including state, local or foreign, with respect to such employees measured by the wages, salaries, compensation or other remuneration paid to such employees, or otherwise, and American, on the one hand, and Contractor, on the other hand, further shall make such payments and make and file all reports and returns, and do everything to comply with the laws imposing such taxes, contributions or other payments.

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**ARTICLE XI** 

**TERM AND TERMINATION** 

**Section 11.01 Term**. This Agreement shall commence on the Effective Date and, unless earlier terminated as provided herein, shall continue until the twelfth (12th) anniversary of the Implementation Date of the last Covered Aircraft hereunder (the "***Initial Term***"). American shall have the right and option to extend the term of this Agreement for up to two (2) additional two (2) year terms (each an "***Extension Term***") by delivering Notice of such extension to Contractor no later than two hundred and seventy (270) days prior to the end of the Initial Term or the first Extension Term, as the case may be, subject to Contractor's Consent; **[\*\*\*]**. Notwithstanding the foregoing, American, in its sole discretion, can extend the compensation agreed upon by the Parties at the first Extension Term into the second Extension Term.

**Section 11.02 Termination**. This Agreement may be terminated during the Term pursuant to this <u>Section</u> <u>11.02</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Termination by American or Contractor**. In addition to and without limiting <u>Section</u> <u>11.02(b)</u>, (x) either American, if American is the non-defaulting Party on the one hand, or Contractor, if Contractor is the non-defaulting Party on the other hand, shall have the right to terminate this Agreement in accordance with <u>Section</u> <u>11.02(d)</u> by providing Notice (which Notice shall specify the Termination Date, subject to this <u>Article XII</u>) to American, if American is the defaulting Party on the one hand, or Contractor, if Contractor is the defaulting Party on the other hand, or (y) either American or Contractor, as applicable, shall have the right to terminate this Agreement in accordance with <u>Section</u> <u>11.02(a)(i)</u> and <u>Section</u> <u>11.02(d)</u> by providing Notice (which Notice shall specify the Termination Date, subject to this <u>Article XII</u>) to American, if American is the Party suffering the Insolvency Event on the one hand, or Contractor, if Contractor is the Party suffering the Insolvency Event on the other hand, if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **Bankruptcy**. By American if Contractor (A) makes a general assignment for the benefit of creditors or becomes insolvent; (B) files a voluntary petition in bankruptcy; (C) petitions for or acquiesces in the appointment of any receiver, trustee or similar officer to liquidate or conserve its business or any substantial part of its assets; (D) commences under the laws of any jurisdiction any proceeding involving its insolvency, bankruptcy, reorganization, readjustment of debt, dissolution, liquidation or any other similar proceeding for the relief of financially distressed debtors; (E) becomes the object of any proceeding or action of the type described in (C) or (D) above and such proceeding or action remains undismissed or unstayed for a period of at least sixty (60) days; or (F) is involuntarily divested of a substantial part of its assets for a period of at least sixty (60) days (each of (A) through (F) above an "***Insolvency Event***") or by Contractor if American suffers an Insolvency Event subsequent to the issuance of a final non appealable order of confirmation in the Bankruptcy Proceeding or if the Bankruptcy Proceeding is converted into a proceeding under Chapter 7 of the Bankruptcy Code prior to the confirmation of a plan of reorganization in the Bankruptcy Proceeding;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) **Material Breach**. American, on the one hand as the defaulting Party, or Contractor, on the other hand as a defaulting Party, shall refuse, neglect or fail to perform, observe, or keep either (A) any material non-monetary covenants, agreements, terms or conditions on their part to be performed, observed or kept hereunder or (B) any other covenant, agreement, term or condition contained herein that would reasonably be expected to substantially deprive American, on the one hand as the non-defaulting Party or Contractor, on the other hand as a non-defaulting Party, of any material benefits of this Agreement (individually and collectively, a "***Material Breach***") and any such Material Breach shall continue for a period of thirty (30) days after Notice to cure such Material Breach to American, on the one hand as the defaulting Party, or Contractor, on the other hand as the defaulting Party thereof. For purposes of this <u>Section</u> <u>11.02(a)(ii)</u>, Contractor's failure to comply with any of the Standards of Service pursuant to and as set forth in <u>Exhibit B</u> hereof, shall be deemed a Material Breach;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) **Monetary Breach**. (A) American, on the one hand, or Contractor, on the other hand, shall fail to pay any amounts owing to Contractor, on the one hand, or American, on the other hand, under the terms and conditions of this Agreement, and such failure remains uncured for more than five (5) Business Days after receipt of Notice of such failure to pay or (B) American, on the one hand, or Contractor, on the other hand, breach a monetary provision of this Agreement, and such breach remains uncured for more than five (5) Business Days after receipt of Notice of such monetary breach;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) **Force Majeure Event**. (A) By American if a Force Majeure Event occurs with respect to Contractor that affects all of the Covered Aircraft and Contractor's ability to operate substantially all of the Scheduled Flights as contemplated hereunder and such Force Majeure Event shall continue for more than **[\*\*\*]**, or (B) by Contractor if a Force Majeure Event occurs that prevents American's performance of substantially all of its obligations pursuant to this Agreement, and such Force Majeure Event shall continue for more than **[\*\*\*]**; it being understood that if American is making payments to Contractor as set forth in <u>Section</u> <u>11.02(c)(iii)</u> of this Agreement, then Contractor may not terminate this Agreement upon the occurrence of such a Force Majeure Event referenced in (B) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Termination by American**. In addition to and notwithstanding <u>Section</u> <u>11.02(a)</u>, American shall have the right and option by providing Notice (which Notice shall specify the Termination Date, subject to this <u>Article XII</u>) to Contractor to terminate this Agreement (in accordance with <u>Section</u> <u>11.02(d)</u>), or elect any other remedy available to it pursuant to <u>Section</u> <u>11.02(d)</u>, for the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **Suspension of Contractor's Certification**. If Contractor's FAA or DOT certification used in connection with the Scheduled Flights or any Covered Aircraft is for any reason suspended, revoked, materially impaired in any manner or otherwise not in full force and effect;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) **Change of Control**. If a Change of Control has occurred to which American has not Consented in advance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) **Lack of Required Insurance Coverage**. If Contractor fails to comply in any respect with <u>Sections 9.01(a)</u>, (b) and (e), and, as a result thereof, the insurance required pursuant to this Agreement is not then in full force and effect or the insurance is not at any time in compliance with the requirements herein or therein specified; *provided* that if Contractor fails to comply in any respect with <u>Sections 9.01(c)</u> and <u>(d)</u>, Contractor shall be entitled to three (3) days' Notice from American and an opportunity to cure such failure during such period prior to any termination or election of remedy pursuant to the provisions hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) **Failure to Maintain Controllable Completion Rate**. If Contractor fails to maintain a Controllable Completion Rate as set forth in <u>Schedule 9</u> with respect to the Scheduled Flights **[\*\*\*]**;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Intentionally deleted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Intentionally deleted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) **Inspection or Audit**. If American determines that Contractor's level of safety with respect to its operation of the Covered Aircraft or the Scheduled Flights is not reasonably satisfactory to American and such unsatisfactory level of safety shall continue for a period of five (5) days after Notice to Contractor from American to cure such unsatisfactory level of safety;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) **Failure to Maintain Controllable On-Time Departures**. If Contractor's Controllable On-Time Departures are within the Default Range as set forth in <u>Section IV(B)</u> of <u>Schedule 7</u> for any calendar quarter, and following Notice from American pursuant to <u>Section IV(B)(4)</u> of <u>Schedule 7</u>, such Controllable On-Time Departures continue to be within the Default Range following the last day of the applicable calendar month (or if such day is not a Business Day, the next Business Day) as contemplated by <u>Section IV(B)(4)</u> of <u>Schedule 7</u>; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) **Controllable Corporate Complaint Factor**. If Contractor's Controllable Corporate Complaint Factor is within the Default Range as set forth in <u>Section IV(A)</u> of <u>Schedule 7</u> for any calendar quarter, and following Notice from American pursuant to <u>Section IV(A)(4)</u> of <u>Schedule 7</u>, such Controllable Corporate Complaint Factor continues to be within the Default Range following the last day of the applicable calendar month (or if such day is not a Business Day, the next Business Day) as contemplated by <u>Section IV(A)(4)</u> of <u>Schedule 7</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) **Operation of Covered Aircraft**. If Contractor operates the Covered Aircraft for any purpose except as provided in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) **Contractor Violation of American Collective Bargaining Agreement**. If Contractor changes the manner in which it conducts business on or after the Effective Date (including operating a particular aircraft type or number of aircraft) and such change causes American to be in violation or breach of any term of any Collective Bargaining Agreement binding upon American as set forth on <u>Schedule 8</u>, unless such violation or breach is directly and solely the result of a request of, or direction by, American. After the Effective Date, American shall have the right and option to revise or amend <u>Schedule 8</u> hereto to reflect an amendment of the terms of the Collective Bargaining Agreement set forth on <u>Schedule 8</u>. If American elects to do so, American shall provide Contractor with fifteen (15) calendar days prior Notice thereof, together with the proposed revision or amendment to <u>Schedule 8</u>. To the extent that any such revision or amendment to <u>Schedule 8</u> may reasonably be expected to result in additional out-of-pocket costs or expenses to Contractor, Contractor shall provide American with a binding estimate of the out-of-pocket costs and expenses, so that American may determine whether to enter into such revision or amendment. In the event that American determines that such revision or amendment shall become effective, American shall be responsible for any reasonable and documented additional out-of-pocket costs or expenses actually incurred by Contractor directly resulting from such revision or amendment as Pass Through Costs payable by American pursuant to <u>Schedule 4</u>, and any such revisions or amendments shall be binding upon Contractor as if initially attached hereto as <u>Schedule 8</u>. If Contractor cannot come into compliance with the terms of American's revised Collective Bargaining Agreement and American terminates this Agreement pursuant to this <u>Section</u> <u>11.02(b)(xi)</u>, American shall pay Contractor the **[\*\*\*]**, subject to Contractor's duty to mitigate, which shall include using the Covered Aircraft for other parties, so long as any amounts received by Contractor to mitigate shall reduce Fixed Costs owing by American to Contractor pursuant to the foregoing. For the avoidance of doubt, American shall have the ability to revise or amend <u>Schedule 8</u> as needed during the Term, with such revision or amendment to occur in connection with any amendment of American's Collective Bargaining Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Actions during a Force Majeure Event or Labor Dispute**. Without limiting the rights to terminate specified herein:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **Notice to American**. Contractor shall provide Notice to American if either (A) a Force Majeure Event with respect to Contractor or a Contractor Labor Strike occurs or (B) Contractor believes that there is a likelihood of an imminent occurrence of such a Force Majeure Event with respect to Contractor or a Contractor Labor Strike.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) **Mitigation of Costs**. Contractor covenants and agrees that it shall mitigate any costs and expenses incurred by it during a Force Majeure Event, a Contractor Labor Strike or an American Labor Strike or other American labor dispute, if such costs and expenses are Pass Through Costs or American Absorbed Expenses, or otherwise reimbursable or paid by American in accordance with the terms and conditions of this Agreement. American covenants and agrees that it shall mitigate any costs and expenses incurred by it during a Force Majeure Event, a Contractor Labor Strike or an American Labor Strike or other American labor dispute, if such costs and expenses are Controllable Costs, or otherwise directly or indirectly reimbursable or paid by Contractor in accordance with the terms and conditions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) **Performance During Force Majeure Event**. Prior to any termination hereof as specified in this <u>Article XI</u> and without limiting American's or Contractor's right to terminate this Agreement pursuant thereto, American's and Contractor's obligations under this Agreement shall be immediately suspended in the event, to the extent and for the period of time that performance is delayed or prevented prior to the termination hereof for the occurrence of any Force Majeure Event; *provided* that the foregoing shall not apply to any outstanding rights, obligations or payments that are then due and payable in accordance with the terms hereof; and *provided further* that (A) the suspension of the obligations in accordance herewith is of no greater scope and of no longer duration than is required by the Force Majeure Event and (B) American, if the Party suspending its obligations because of the Force Majeure Event on the one hand, or Contractor, if Contractor is the Party suspending its obligations because of the Force Majeure Event on the other hand, uses commercially reasonable efforts to remedy their inability to perform.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Rights and Obligations upon Termination; Election of Remedies**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **Survival During Wind-Down Period**. Upon any termination pursuant to this <u>Section</u> <u>11.02</u> or <u>Section</u> <u>13.24</u>, the Term shall continue, and this Agreement shall survive in full force and effect, beyond the Termination Date until the end of the Wind-Down Period, if any, and the rights and obligations of American or Contractor under this Agreement, including without limitation remedies available upon the occurrence of a Material Breach, shall continue with respect to each Covered Aircraft until it is removed from this Agreement or otherwise until the later of the Termination Date or the end of the Wind-Down Period, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) **Termination by Contractor**. If Contractor terminates this Agreement pursuant to <u>Section</u> <u>11.02(a)</u> or this Agreement is terminated pursuant to <u>Section</u> <u>13.24</u>, then the Covered Aircraft shall be removed from this Agreement in accordance with the following terms and conditions:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) The Notice of termination delivered by Contractor to American pursuant to <u>Section</u> <u>11.02(a)</u> shall be irrevocable by Contractor and shall include a Termination Date that is at least thirty (30) days after the date of such Notice and a Wind-Down Schedule that identifies the specific tail numbers of each Covered Aircraft to be removed and the actual date of such Covered Aircraft's removal; *provided* that Contractor may only remove **[\*\*\*]** Covered Aircraft per month in such Wind-Down Schedule, and it being understood that Contractor may remove Covered Aircraft from providing the Regional Airline Services immediately, and without any limitations on the number of Covered Aircraft that may be removed per month, only in the case of a monetary breach pursuant to <u>Section</u> <u>11.02(a)(iii)</u> above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) For the avoidance of doubt, it is intended that the rights and remedies referred to in this <u>Section</u> <u>11.02(e)(ii)(B)</u> shall be cumulative and in addition to any rights or remedies otherwise available at law or in equity. The exercise by Contractor of any one or more of such rights or remedies shall not preclude the simultaneous or later exercise by Contractor of any or all of such other rights or remedies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) **Termination by American**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) If this Agreement is terminated by American pursuant to <u>Sections 11.02(a)</u> or <u>11.02(b)</u>, then American may, in its sole discretion elect for the cessation of all Regional Airline Services immediately and for all Covered Aircraft to be removed from the provisions of this Agreement as of the Termination Date specified in the Notice of termination given by American in accordance with <u>Sections 11.02(a)</u> or <u>11.02(b)</u>, which Notice of termination shall include a Wind-Down Schedule that identifies the specific tail numbers of each Covered Aircraft to be removed and the actual date of such Covered Aircraft's removal. The Notice of termination shall be irrevocable and the Wind-Down Schedule shall provide for the removal of **[\*\*\*]** Covered Aircraft per month, until all such Covered Aircraft are removed from the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Intentionally deleted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) For the avoidance of doubt, it is intended that the rights and remedies referred to in this <u>Section</u> <u>11.02(e)(iii)(C)</u> shall be cumulative and in addition to any rights or remedies otherwise available at law or in equity. The exercise by American of any one or more of such rights or remedies shall not preclude the simultaneous or later exercise by American of any or all of such other rights or remedies. Nothing contained in this <u>Section</u> <u>11.02(e)(iii)(C)</u> shall be deemed to limit or otherwise affect American's rights under <u>Section</u> <u>11.02(e)</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) **Obligations upon Removal of Covered Aircraft or Termination**. Termination of this Agreement for any reason shall not relieve American or Contractor of their rights and obligations incurred prior to the end of the Term. Contractor shall continue to operate any Covered Aircraft for Scheduled Flights subject to a Notice of termination delivered by American to Contractor pursuant to <u>Sections 11.02(a)</u> or <u>11.02(b)</u> and Contractor shall receive compensation for such Scheduled Flights.

**ARTICLE XII** 

**DISPUTE RESOLUTION** 

**Section 12.01 Resolution of Disputes**. Prior to American's or Contractor's right to seek any remedy in a court of competent jurisdiction, American and Contractor hereby agree that they shall attempt to resolve any dispute, claim or controversy arising out of or relating to this Agreement or the breach, termination, enforcement, interpretation or validity thereof (each a "***Dispute***") as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) American, on the one hand, or Contractor, on the other hand, may give Notice to the Representatives of American, on the one hand, or Contractor, on the other hand, of the issue or matter to be discussed and the respective Representatives shall meet within ten (10) days to promptly negotiate a resolution of the Dispute.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Failure to resolve the Dispute within thirty (30) days following any referral to the Representatives of American and Contractor shall give American, on the one hand, or Contractor, on the other hand, the right to seek applicable remedies under this Agreement in a court of competent jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) American, on the one hand, and Contractor, on the other hand, agree to continue to perform their respective obligations under this Agreement while a Dispute or issue is being resolved pursuant to this <u>Section</u> <u>12.01</u>.

**ARTICLE XIII** 

**MISCELLANEOUS** 

**Section 13.01 Notices**. All Notices, Consents, or amendments under this Agreement shall be in writing and shall be deemed given to American or Contractor, as the case may be, upon (a) confirmation of receipt of a delivery in person; (b) a transmitter's confirmation of a receipt of a facsimile or e-mail transmission (but only if followed by confirmed delivery the following Business Day (i) by a nationally recognized overnight courier or (ii) by hand); or (c) confirmed delivery by a nationally recognized overnight courier, to the Parties at the addresses below.

**<u>If to American, to</u>**:

American Airlines, Inc.

4333 Amon Carter Blvd.

Mail Drop 5675

Ft. Worth, TX 76155

Attention: Corporate Secretary

[\*\*\*]

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**<u>If to Contractor, to</u>**:

Republic Airline Inc.

8909 Purdue Road

Suite 300

Indianapolis, IN 46268

Attention: Chief Financial Officer

[\*\*\*]

with a copy to:

Republic Airline Inc.

8909 Purdue Road

Suite 300

Indianapolis, IN 46268

Attention: Vice President, General Counsel

**[\*\*\*]** 

And if to American pursuant to <u>Section</u> <u>13.06(b)</u>, a copy of such Notice shall also be *provided* to:

American Airlines, Inc.

4333 Amon Carter Blvd.

Mail Drop 5675

Ft. Worth, TX 76155

Attention: Corporate Communications Department

[\*\*\*]

and

American Airlines, Inc.

4333 Amon Carter Blvd.

Ft. Worth, TX 76155

Attention: Director of Regional Networks

[\*\*\*]

or, in each case, to such other address as a Party may have furnished to the other Party by a Notice in accordance with this <u>Section</u> <u>13.01</u>.

Where in this Agreement the words "***request,***" "***directed,***" "***inform,***" "***furnish***" or "***approved***" or similar phrases, expressions or derivatives thereof are used rather than the terms Notice or Consent, such instruction to receive such communication shall be sufficient if done by email (and not in a second writing) (each a "***Communication***") so long as it is provided (i) in accordance with past practices or, if there are no past practices, in accordance with customary industry practices; (ii) the Person providing the Communication reasonably believes that the Person receiving such Communication is authorized to receive such Communication; and (iii) the Person receiving such Communication reasonably believes the Person providing such Communication has the apparent or actual authority to undertake the action in question.

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**Section 13.02 Binding Effect and Assignment**. The terms and conditions of this Agreement shall inure to the benefit of and be binding and enforceable upon the Parties and their respective successors and permitted assigns. Neither this Agreement, nor any of the rights, interests or obligations hereunder, shall be assigned by Contractor without the prior Consent of American; *provided*, that Contractor may assign this Agreement to any Affiliate of Contractor so long as (i) the guaranty provided by Holdings remains in full force and effect, (ii) such Affiliate holds a certificate of public convenience and necessity issued pursuant to certain federal transportation statutes authorizing it to engage in air transportation of persons, property and mail, and is a regional air carrier providing scheduled domestic air transportation and (iii) such Affiliate can perform the obligations of Contractor under this Agreement. American may assign this Agreement and any of the rights, interests or obligations hereunder at any time without the prior Consent of Contractor so long as such assignee can perform the obligations of American under this Agreement. In the event of any assignment of this Agreement, the assignor shall be deemed to have released (without further action on the part of the other party to this Agreement) the other party to this Agreement from any and all duties, obligations and liabilities (including assignor liability) arising under this Agreement after the date of assignment so long as the assignee has agreed to assume all of the assignor's duties, obligations and liabilities arising under this Agreement.

**Section 13.03 Amendment and Modification**. Subject to <u>Sections 7.04(a)</u> and <u>13.02</u> above, this Agreement may not be amended or modified in any respect except by a written agreement signed by both of the Parties.

**Section 13.04 Waiver**. The performance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively) by the Party entitled to enforce such term, but such waiver shall be effective only if it is in writing signed by the Party against which such waiver is to be asserted. Unless otherwise expressly provided in this Agreement, no delay or omission on the part of any Party in exercising any right or privilege under this Agreement shall operate as a waiver thereof, nor shall any waiver on the part of any Party of any right or privilege under this Agreement operate as a waiver of any other right or privilege under this Agreement nor shall any single or partial exercise of any right or privilege preclude any other or further exercise thereof or the exercise of any other right or privilege under this Agreement.

**Section 13.05 Interpretation**. The table of contents and the article, section and other headings and subheadings contained in this Agreement and in the exhibits and schedules hereto are solely for the purpose of reference, are not part of the agreement of the Parties, and shall not in any way affect the meaning or interpretation of this Agreement or any exhibit or schedule hereto. All references to days, months or years shall be deemed references to calendar days, months or years. All references to "***$***" shall be deemed references to United States dollars. Unless the context otherwise requires, any reference to an "***Article,***" a "***Section,***" an "***Exhibit,***" or a "***Schedule***" shall be deemed to refer to an article or section of this Agreement or an exhibit or schedule to this Agreement, as applicable. The words "***hereof,***" "***herein***" and "***hereunder***" and words of similar import referring to this Agreement refer to this Agreement as a whole and not to any

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particular provision of this Agreement. Whenever the words "***include,***" "***includes***" or "***including***" are used in this Agreement, unless otherwise specifically *provided*, they shall be deemed to be followed by the words "***without limitation.***" This Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation against the Party drafting or causing the document to be drafted. With regard to all dates and time periods set forth or referred to in this Agreement, time is of the essence.

**Section 13.06 Confidentiality and Public Communications**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Confidentiality**. Except as required by any law, rule or regulation of a Governmental Authority, stock exchange listing requirement, in any proceeding to enforce the provisions of this Agreement, or pursuant to the Bankruptcy Proceeding, American and Contractor agrees (i) not to publicize or disclose to any Third Party any Confidential Information of the other Party, the terms or conditions of this Agreement, or any exhibit, schedule or appendix hereto, without the prior Consent of the other Party, except that a Party may disclose such information to its Affiliates, third-party consultants, advisors, representatives or labor organizations, unions, work groups or other groups negotiating or subject to such Party's Collective Bargaining Agreements, in each case, that have agreed to keep such information confidential and (ii) not to use any such Confidential Information of the other Party other than in connection with performing their respective duties and obligations or enforcing their respective rights and privileges under this Agreement, or as otherwise expressly contemplated by this Agreement. If any Party is served with a subpoena or other process requiring the production or disclosure of any Confidential Information of the other Party, then the Party receiving such subpoena or other process, before complying with such subpoena or other process, shall, to the extent permitted by applicable law, promptly provide Notice to the other Party of same and permit said other Party a reasonable period of time to intervene and contest disclosure or production. Upon any termination of this Agreement, each Party must, at the written request of the other Party, return or destroy Confidential Information received from the other Party which is still in the recipient's possession or control and certify its compliance with such written request. This <u>Section</u> <u>13.06(a)</u> shall survive the termination of this Agreement for a period of ten (10) years; *provided*, that personally identifiable information shall remain subject to this <u>Section</u> <u>13.06(a)</u> in perpetuity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Public Communications**. Except as disclosed in connection with compliance with applicable securities laws and any stock exchange listing requirement, Contractor shall not issue any press release or public announcement relating to Regional Airline Services, Scheduled Flights, the cessation of Scheduled Flights, schedule changes, customer initiatives, marketing programs or promotions, without American's prior written Consent following a sufficient time for American to review the press release or public announcement.

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**Section 13.07 Data Security**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Safeguards**. Where Contractor stores or processes American Data, Contractor shall and shall cause its Contractor Agents to establish and maintain a secure environment for all American Data and any hardware and software (including servers, network and data components) to be provided or used by Contractor or its Contractor Agents to store or process American Data. Contractor represents that the security measures they take in performance of their obligations under this Agreement are, and will at all times remain, consistent with the following (collectively referred to herein as "***Security Best Practices***"): (i) Privacy & IT Security Best Practices (as defined by ISO 27001) or a similar policy as determined by American in its sole discretion; (ii) the security requirements, obligations, specifications and event reporting procedures set forth in <u>Exhibit D</u>; and (iii) any security requirements, obligations, specifications and/or event reporting procedures required by American in writing from time to time. Failure by Contractor to comply with Security Best Practices in fulfilling their obligations hereunder shall constitute a breach of this Agreement. Contractor shall contractually require any of its Contractor Agents with access to American Data to adhere to such Security Best Practices as applicable to their access to the American Data.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Notice of Breach**. If Contractor or any of its Contractor Agents discovers or is notified of a breach or potential breach of security relating to the American Data, then Contractor shall immediately (i) provide Notice to American of such breach or potential breach and (ii) if the applicable American Data was in the possession of Contractor or any of its Contractor Agents at the time of such breach or potential breach, Contractor (A) shall investigate and remediate with American's assistance the effects of the breach or potential breach (such remediation to include restoring data to the last data back-up) and (B) shall provide American with assurance satisfactory to American that the likelihood of a recurrence of such breach or potential breach has been appropriately reduced. If Contractor breaches this <u>Section</u> <u>13.07</u>, then American shall have the right to require Contractor to reimburse American for actual out-of-pocket costs and expenses of printing and mailing notification letters required by any law, rule or regulation of a Governmental Authority incurred by American or its Affiliates due to such breach and any credit monitoring services offered by American or any Affiliate in relation to the breach.

**Section 13.08 Ownership and Use of American Data**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Ownership**. All American Data is, or upon creation will be, and will remain the property of American and all right, title and interest in and to any American Data, including intellectual property rights to American Data, will be solely owned by American. Contractor (and upon creation will be deemed to) irrevocably assigns, transfers and conveys, and will cause its Contractor Agents to assign, transfer and convey, to American without further consideration all of their right, title and interest in and to the American Data. Upon request by American, and at American's cost and expense, Contractor will execute and deliver, and will cause its Contractor Agents to execute and deliver, any documents or take any other actions that may be necessary or desirable under any law, rule or regulation of a Governmental Authority to evidence, preserve, or enable American or an Affiliate of American to enforce, its rights hereunder with respect to the American Data.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Contractor Use Rights**. Except as otherwise provided in this Agreement, without American's approval (in its sole discretion), the American Data may not be (i) used by Contractor or its Contractor Agents; (ii) disclosed, sold, assigned, leased or otherwise provided to Third Parties by Contractor or its Contractor Agents; (iii) re-distributed or displayed via web sites or services

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(including, for example, through white label web sites); or (iv) commercially exploited by or on behalf of Contractor or its Contractor Agents. Contractor may access and use and may permit its Contractor Agents to access and use the American Data (A) only as necessary to provide the Regional Airline Services to American and (B) for any other purpose for which American may provide advanced written approval (e-mail shall not suffice) in accordance with this Agreement (collectively "***Permitted Uses***"). Except for the Permitted Uses, Contractor may not edit, modify, create derivatives, combinations or compilations of, combine, associate, synthesize, reverse engineer, reproduce, display, distribute, disclose, or otherwise process American Data. In addition, for clarity, Contractor must not directly or indirectly engage in any of the following activities: (x) use or disclosure of American Data in a way that may adversely affect American, including any use by or disclosure to other airlines, or (y) any kind of commercialization, marketing, advertising, licensing or resale that is based on American Data (e.g., targeted advertising to consumers based on the American Marks). Nothing in this Agreement conveys any rights or interest in the American Data to Contractor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Flight Status Data**. With respect to Flight Status Data, in no event may Contractor disclose all or individual parts of the Flight Status Data, except as otherwise permitted herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Return**. Following the expiration or termination of this Agreement, Contractor and its Contractor Agents shall, at American's election, return or dispose of all American Data in their possession, subject to Contractor and its Contractor Agents record retention policies and except to the extent that such American Data cannot be disposed of without unreasonable cost and expense, in which case Contractor and its Contractor Agents shall keep such American Data confidential pursuant to <u>Section</u> <u>13.06(a)</u>. This <u>Section</u> <u>13.08</u> shall survive the termination of this Agreement and/or of the provision of Regional Airline Services and shall apply to any American Data retained by Contractor or its Contractor Agents.

**Section 13.09 Cooperation with Respect to Reporting**. American, on the one hand, and Contractor, on the other hand, shall use their commercially reasonable efforts to cooperate with the other in providing necessary data, to the extent in the possession of the other, required by the other to meet any reporting requirements to, or otherwise necessary in connection with any filing with or provision of information to be made to, any regulatory agency, stock exchange, or other Governmental Authority by the other.

**Section 13.10 Right of Set-off**. If Contractor shall be in default of any of its obligations under this Agreement, then American shall be entitled to set-off against any undisputed payment owed by American to Contractor hereunder any undisputed amount owed by Contractor to American hereunder; *provided*, that contemporaneously with any such set-off, American shall give Notice of such action to Contractor; *provided*, *further*, that the failure to give such Notice shall not affect the validity of the set-off. If American shall be in default of any of its obligations under this Agreement, then Contractor shall be entitled to set-off against any undisputed payment owed by Contractor to American hereunder any undisputed amount owed by American to Contractor hereunder; *provided*, that contemporaneously with any such set-off,

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Contractor shall give Notice of such action to American; *provided*, *further*, that the failure to give such Notice shall not affect the validity of the set-off. It is specifically agreed that for purposes of the set-off by American, on the one hand as a non-defaulting Party, or Contractor, on the other hand as a non-defaulting Party, mutuality shall be deemed to exist between American and Contractor. Upon completion of any such set-off, the obligation of the non-defaulting Party to the defaulting Party shall be extinguished to the extent of the amount so set-off. This set-off provision shall be without prejudice and in addition to any right of set-off, combination of accounts, lien or other right to which American, on the one hand as the non-defaulting Party, or Contractor, on the other hand as the non-defaulting Party, is at any time otherwise entitled (either by operation of law, contract or otherwise).

**Section 13.11 Counterparts**. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. This Agreement may be executed by facsimile signature or portable document format (pdf).

**Section 13.12 Severability**. Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof. Any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

**Section 13.13 Governing Law**. This Agreement shall be governed by and construed in accordance with the laws of the State of New York (excluding New York conflict of laws principles that might call for the application of the law of another jurisdiction) as to all matters, including matters of validity, construction, effect, performance and remedies.

**Section 13.14 Entire Agreement; Conflicts with this Agreement**. This Agreement, when taken together with the Emergency Assistance Agreement, embodies the entire agreement between the Parties and shall be treated as one integrated agreement concerning the subject matter hereof and thereof and such agreements terminate and supersede all prior or contemporaneous agreements, discussions, undertakings and understandings, whether written or oral, express or implied, concerning the subject matter hereof. The effectiveness of this Agreement shall not be deemed a waiver by either Party of any disclosed or undisclosed breach, default, event of default or termination event under such other agreements. If any of the terms or provisions of this Agreement conflict with any terms or provisions of the Emergency Assistance Agreement, then the terms and provisions of the Emergency Assistance Agreement shall govern all matters specified in <u>Article V</u> hereof and with respect to all other matters this Agreement shall govern and control for all purposes. Furthermore, the Parties agree that in the event of a conflict between <u>Article X</u> and the indemnification provisions of the Emergency Assistance Agreement, this Agreement shall control.

**Section 13.15 Remedies Cumulative**. The rights and remedies of the Parties are cumulative and not alternative. Neither the failure nor any delay by any Party in exercising any right, power, or privilege under this Agreement or the documents referred to in this Agreement will operate as a waiver of such right, power, or privilege, and no single or partial exercise of any such right, power, or privilege will preclude any other or further exercise of such right, power, or privilege or the exercise of any other right, power, or privilege.

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**Section 13.16 Further Assurances**. The Parties agree to take such further actions and execute and deliver such other documents, certificates, agreements and other instruments as may be reasonably necessary or desirable in order to implement the transactions contemplated by this Agreement.

**Section 13.17 No Third Party Beneficiaries**. Nothing in this Agreement, expressed or implied, is intended to confer upon any Person, other than the Parties and their respective permitted assigns, any rights, privileges, remedies, duties, obligations or liabilities under or by reason of this Agreement and no person who is not a party to this Agreement may rely on the terms hereof. Notwithstanding the foregoing, (a) each American Indemnified Party shall be a third party beneficiary with respect to <u>Section</u> <u>10.01</u> hereof and shall have all of the rights, benefits and privileges of a third party beneficiary with respect to <u>Section</u> <u>10.01</u> hereof; and (b) each Contractor Indemnified Party shall be a third party beneficiary with respect to <u>Section</u> <u>10.02</u> hereof and shall have all of the rights, benefits and privileges of a third party beneficiary with respect to <u>Section</u> <u>10.02</u> hereof.

**Section 13.18 Relationship of the Parties**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Contractor Employees**. Any employees of Contractor and its Contractor Agents engaged in providing any of the Regional Airline Services are employees, agents, and independent contractors of Contractor for all purposes, and under no circumstances will be deemed to be employees, agents or independent contractors of American. In their performance under this Agreement, Contractor shall act, for all purposes, as independent contractors and not as agents for American. Notwithstanding the fact that Contractor has agreed to follow certain procedures, instructions and standards of service of American pursuant to this Agreement, American shall have no supervisory power or control over any employees of Contractor or its Contractor Agents engaged by Contractor in connection with their performance hereunder, and all complaints or requested changes in procedures made by American shall, in all events, be transmitted by American to Contractor's Representative. Except as otherwise provided in this Agreement, nothing contained in this Agreement is intended to limit or condition Contractor's control over their operations or the conduct of their business as an air carrier, and Contractor and its principals assume their risks of financial losses which may result from the operation of the air services to be provided by Contractor hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Limits on Relationship**. Nothing in this Agreement shall be interpreted or construed as establishing between the Parties a fiduciary relationship, partnership, joint venture or other similar arrangement. Nothing in this Agreement authorizes either Party to make any contract, agreement, warranty, or representation on the other's behalf, or to incur any debt or obligation in the other's name.

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**Section 13.19 Jurisdiction**. Each Party irrevocably submits to the exclusive jurisdiction of the United States District Court for the Southern District of New York and, if such court does not have jurisdiction, of the courts of the State of New York sitting in the City of New York for the purposes of any suit, action or other proceeding arising out of this Agreement or the subject matter hereof brought by the other Party. To the extent permitted by applicable laws, rules or regulations of a Governmental Authority, each Party waives and agrees not to assert, by way of motion, as a defense or otherwise, in any such suit, action or proceeding, any claim (a) that it is not subject to the jurisdiction of the above-named courts; (b) that the suit, action or proceeding is brought in an inconvenient forum; or (c) that the venue of the suit, action or proceeding is improper. Each Party further waives any right to a trial by jury.

**Section 13.20 LIMITATION ON DAMAGES**. EXCEPT TO THE EXTENT A PARTY MAY BE REQUIRED TO PAY IN CONNECTION WITH ANY CLAIM FOR INDEMNIFICATION UNDER <u>ARTICLE X</u>, NO PARTY TO THIS AGREEMENT OR ANY OF THEIR AFFILIATES SHALL BE LIABLE TO ANY OTHER PARTY OR ANY OF THEIR AFFILIATES FOR CLAIMS FOR INCIDENTAL, INDIRECT, CONSEQUENTIAL, PUNITIVE, SPECIAL OR EXEMPLARY DAMAGES, INCLUDING LOST REVENUES, LOST PROFITS OR LOST PROSPECTIVE ECONOMIC ADVANTAGE, ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY, REGARDLESS OF WHETHER A CLAIM IS BASED ON CONTRACT, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY, VIOLATION OF ANY APPLICABLE DECEPTIVE TRADE PRACTICES ACT OR SIMILAR LAW, RULE OR REGULATION OF A GOVERNMENTAL AUTHORITY OR ANY OTHER LEGAL OR EQUITABLE PRINCIPLE, AND EACH PARTY RELEASES THE OTHER PARTIES AND THEIR AFFILIATES FROM LIABILITY FOR ANY SUCH DAMAGES. NO PARTY SHALL BE ENTITLED TO RESCISSION OF THIS AGREEMENT AS A RESULT OF BREACH OF ANY OTHER PARTY'S REPRESENTATIONS, WARRANTIES, COVENANTS OR AGREEMENTS, OR FOR ANY OTHER MATTER; PROVIDED, THAT NOTHING IN THIS <u>SECTION 13.20</u> SHALL RESTRICT THE RIGHT OF ANY PARTY TO EXERCISE ANY RIGHT TO TERMINATE THIS AGREEMENT PURSUANT TO <u>ARTICLE XI</u>. IF AMERICAN TERMINATES THIS AGREEMENT DUE TO A CHANGE IN THE TERMS OF THE COLLECTIVE BARGAINING AGREEMENT THAT ARE SET FORTH ON <u>SCHEDULE 8</u> HERETO, AMERICAN SHALL PAY CONTRACTOR **[\*\*\*],** SUBJECT TO CONTRACTOR'S DUTY TO MITIGATE, WHICH SHALL INCLUDE USING THE COVERED AIRCRAFT FOR OTHER PARTIES, SO LONG AS ANY AMOUNTS RECEIVED BY CONTRACTOR TO MITIGATE SHALL REDUCE FIXED COSTS OWING BY AMERICAN TO CONTRACTOR PURSUANT TO THE FOREGOING.

**Section 13.21 Equitable Remedies**. American and Contractor each hereby acknowledge and agree that if the rights of a Party may be materially and irreparably harmed by actions to be taken or taken by another Party, in addition to its rights under this Agreement, a Party may apply to any court of law or equity of competent jurisdiction in the State of New York sitting in the Borough of Manhattan for specific performance and/or other injunctive relief in order to enforce or prevent any breach of this Agreement or enjoin other such action being taken or proposed to be taken by the other Party.

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**Section 13.22 Executory Contracts**. Contractor acknowledges that American is a debtor in possession under chapter 11 of the United States Bankruptcy Code (the "***Bankruptcy Code***") in the cases styled "*In re AMR Corporation, et al.*" pending in the United States Bankruptcy Court for the Southern District of New York, case no. 11-15643 (SHL) (Jointly Administered) (the "***Chapter 11 Cases***"). Contractor acknowledges and agrees that to the extent it has claims (as defined in the Bankruptcy Code) arising from goods *provided* or services performed prior to American's petition date against American or any of its debtor affiliates in the Chapter 11 Cases, Contractor will not attempt to recover, collect, or assert any of those prepetition claims against American or any of its debtor affiliates in the Chapter 11 Cases other than in connection with the administration of the Chapter 11 Cases. Contractor further acknowledges and agrees that entry into this Agreement does not constitute an assumption of any executory contracts or unexpired leases that might otherwise exist between Contractor and American or its affiliated debtors under the Bankruptcy Code and that American and its Affiliates retain all rights under Section 365 of the Bankruptcy Code to assume, reject, or assume and assign any such executory contracts or unexpired leases notwithstanding the entry into this Agreement.

**Section 13.23 Survival of Certain Obligations**. Except (a) for the covenants and agreements in <u>Article X</u>, <u>Article XII</u>, and <u>Sections 13.01</u>, <u>13.06</u>, <u>13.08</u> and <u>13.20</u> and (b) as set forth in the following sentence, all representations, warranties, covenants and agreements of the Parties set forth herein shall terminate and expire, and shall cease to be in full force and effect following the Term. All covenants and agreements of either Party that contemplate actions to be taken or obligations in effect after the Term or the return of any Covered Aircraft pursuant to this Agreement shall survive the Term in accordance with the terms and to the extent contemplated thereby, including those described in <u>Articles X</u>, <u>XII</u>, and <u>XIII</u> and <u>Schedule 10</u>.

***[Remainder of Page Intentionally Left Blank; Signature Page Follows]***

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IN WITNESS WHEREOF, American and Contractor have entered this Agreement effective as of the date set forth above.

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| | |
|:---|:---|
| AMERICAN AIRLINES, INC. | AMERICAN AIRLINES, INC. |
| By: | /s/ Charles J. Schubert III |
|  | Name: Charles J. Schubert III |
|  | Title: VP, AA Network Planning |
| REPUBLIC AIRLINE INC. | REPUBLIC AIRLINE INC. |
| By: | /s/ Bryan K. Bedford |
|  | Name: Bryan K. Bedford |
|  | Title: President and Chief Executive Officer |

---

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**<u>SCHEDULE 1</u>**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Make/Model | Tail<br> Number | Aircraft<br> Serial<br> Number | Scheduled Delivery<br>Date | Implementation<br> date | Exit Date (144<br>months from<br>implementation date) | Covered<br> Aircraft<br> Monthly Rent |
|  [\*\*\*] |  |  | [\*\*\*] |  |  | [\*\*\*] |
|  [\*\*\*] |  |  | [\*\*\*] |  |  | [\*\*\*] |
|  [\*\*\*] |  |  | [\*\*\*] |  |  | [\*\*\*] |
|  [\*\*\*] |  |  | [\*\*\*] |  |  | [\*\*\*] |
|  [\*\*\*] |  |  | [\*\*\*] |  |  | [\*\*\*] |
|  [\*\*\*] |  |  | [\*\*\*] |  |  | [\*\*\*] |
|  [\*\*\*] |  |  | [\*\*\*] |  |  | [\*\*\*] |
|  [\*\*\*] |  |  | [\*\*\*] |  |  | [\*\*\*] |
|  [\*\*\*] |  |  | [\*\*\*] |  |  | [\*\*\*] |
|  [\*\*\*] |  |  | [\*\*\*] |  |  | [\*\*\*] |
|  [\*\*\*] |  |  | [\*\*\*] |  |  | [\*\*\*] |
|  [\*\*\*] |  |  | [\*\*\*] |  |  | [\*\*\*] |
|  [\*\*\*] |  |  | [\*\*\*] |  |  | [\*\*\*] |
|  [\*\*\*] |  |  | [\*\*\*] |  |  | [\*\*\*] |
|  [\*\*\*] |  |  | [\*\*\*] |  |  | [\*\*\*] |
|  [\*\*\*] |  |  | [\*\*\*] |  |  | [\*\*\*] |
|  [\*\*\*] |  |  | [\*\*\*] |  |  | [\*\*\*] |
|  [\*\*\*] |  |  | [\*\*\*] |  |  | [\*\*\*] |
|  [\*\*\*] |  |  | [\*\*\*] |  |  | [\*\*\*] |
|  [\*\*\*] |  |  | [\*\*\*] |  |  | [\*\*\*] |
|  [\*\*\*] |  |  | [\*\*\*] |  |  | [\*\*\*] |
|  [\*\*\*] |  |  | [\*\*\*] |  |  | [\*\*\*] |
|  [\*\*\*] |  |  | [\*\*\*] |  |  | [\*\*\*] |
|  [\*\*\*] |  |  | [\*\*\*] |  |  | [\*\*\*] |
|  [\*\*\*] |  |  | [\*\*\*] |  |  | [\*\*\*] |
|  [\*\*\*] |  |  | [\*\*\*] |  |  | [\*\*\*] |
|  [\*\*\*] |  |  | [\*\*\*] |  |  | [\*\*\*] |
|  [\*\*\*] |  |  | [\*\*\*] |  |  | [\*\*\*] |
|  [\*\*\*] |  |  | [\*\*\*] |  |  | [\*\*\*] |
|  [\*\*\*] |  |  | [\*\*\*] |  |  | [\*\*\*] |
|  [\*\*\*] |  |  | [\*\*\*] |  |  | [\*\*\*] |
|  [\*\*\*] |  |  | [\*\*\*] |  |  | [\*\*\*] |
|  [\*\*\*] |  |  | [\*\*\*] |  |  | [\*\*\*] |
|  [\*\*\*] |  |  | [\*\*\*] |  |  | [\*\*\*] |
|  [\*\*\*] |  |  | [\*\*\*] |  |  | [\*\*\*] |
|  [\*\*\*] |  |  | [\*\*\*] |  |  | [\*\*\*] |
|  [\*\*\*] |  |  | [\*\*\*] |  |  | [\*\*\*] |

---

------

---

| | | | | |
|:---|:---|:---|:---|:---|
|  [\*\*\*] | [ | \*\*\*] | [ | \*\*\*] |
|  [\*\*\*] | [ | \*\*\*] | [ | \*\*\*] |
|  [\*\*\*] | [ | \*\*\*] | [ | \*\*\*] |
|  [\*\*\*] | [ | \*\*\*] | [ | \*\*\*] |

---

------

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| | | |
|:---|:---|:---|
|  [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] |

---

[\*\*\*]

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**<u>SCHEDULE 2</u>**

**<u>AMERICAN GATES AND FACILITIES</u>**

• Those gates and the associated Passenger-Related Terminal Facilities provided by American from time to time.

• **[\*\*\*]** and **[\*\*\*]** Crew Facilities as reasonably required and requested by Contractor.

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**<u>SCHEDULE 3</u>**

**<u>SCHEDULING AND OPERATING RESTRICTIONS ON COVERED AIRCRAFT</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. **Scheduling**. Subject to the terms and conditions hereof, American shall in its sole discretion establish and publish all schedules for the Covered Aircraft, including determining the city-pairs served, frequencies and timing of scheduled arrivals and departures of Scheduled Flights; *provided*, that all such schedules shall be subject to the scheduling and operating restrictions on Covered Aircraft set forth in <u>Schedule 3</u>. If American determines to implement a new Final Monthly Schedule (as defined below), then at least **[\*\*\*]** prior to the date of such Final Monthly Schedule's implementation American shall use its reasonable commercial efforts to provide Contractor with a preliminary flight schedule (a "***Requested Plan***") relating to such Final Monthly Schedule for Contractor's planning purposes; it being understood that such Requested Plan shall not be binding upon American. At least **[\*\*\*]** prior to the first day of the month to which such Final Monthly Schedule relates, American (A) shall provide Contractor with access to American's proposed flight schedule plans and (B) shall use commercially reasonable efforts to deliver to Contractor American's requested flight origination, destination and frequency plan, and associated times of departure and arrival for Scheduled Flights for each month to which such Final Monthly Schedule relates (each a "***Final Monthly Schedule***"). Once delivered, American and Contractor shall cooperate and use commercially reasonable efforts to make adjustments requested by Contractor or American to the Final Monthly Schedule. The Final Monthly Schedule so delivered shall apply for each succeeding calendar month, until such time as American determines to deliver a new Final Monthly Schedule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;II. **Flight Cancellations.** American shall be entitled in its sole discretion and at any time prior to takeoff, to direct Contractor to delay or cancel a Scheduled Flight, including for delays and cancellations that are ATC- or weather-related, and Contractor shall take all necessary action to give effect to any such direction. Contractor shall not receive any compensation from American for any cancelled Scheduled Flights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;III. **Minimum Ground Time**. As used herein, "***minimum ground time***" shall mean the aggregate time a Covered Aircraft is not being flown between Scheduled Flights or charter flights, as the case may be, based on the time between setting of the Covered Aircraft's brakes and release of such brakes. American reserves the right, in its sole discretion, to define minimum ground times at various staffing levels above and below wing over the Term; *provided* that ground times will not be less than **[\*\*\*]** at any Outstation and **[\*\*\*]** at a Hub.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IV. **Covered Aircraft Overnight Maintenance Requirements**. American shall schedule all Covered Aircraft (other than the Spare Aircraft) not assigned to maintenance (the Covered Aircraft available to schedule, or "***CAATS***") in accordance with the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. At least **[\*\*\*]** of the CAATS shall be scheduled to spend at least **[\*\*\*]** at an American-approved Contractor Overnight Maintenance Facility, as listed in <u>Section IX</u> below, each night.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. American shall schedule CAATS such that at least **[\*\*\*]** of the Covered Aircraft spend at least **[\*\*\*]** at an American-approved Contractor Overnight Maintenance Facility, as listed in <u>Section VII</u> below, each night.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;V. **Crew Overnights**. American shall schedule CAATS such that one (1) overnight crew may legally overnight away from a crew domicile for each Covered Aircraft. Notwithstanding the prior sentence, American, in its sole discretion, may elect to schedule up to **[\*\*\*]** of CAATS lines in such a fashion that more than one crew is required to overnight with a Covered Aircraft "***staging of crews.***" However, if American requires crew overnights away from a crew domicile for more than **[\*\*\*]** staging of crews, then American shall reimburse Contractor **[\*\*\*]** per scheduled extra crew overnight event as documented by Contractor's crew scheduling system (this amount shall only remain in effect through December 31, 2013 and thereafter shall be adjusted on each January 1, beginning with January 1, 2014, by multiplying the amounts in effect on the immediately preceding December 31 by the applicable published report of CPI released as of such January 1).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VI. **Maintenance of Aircraft**. Upon at least one hundred twenty (120) days' Notice, Contractor may inform American of Covered Aircraft that need to be removed from providing Regional Airline Services for purposes of accomplishing heavy maintenance, overhauls and modifications of Covered Aircraft providing the Regional Airline Services. Contractor agrees to use reasonable efforts to not schedule heavy maintenance, overhauls or modifications during the months of June, July and August, unless otherwise Consented to by American, which Consent shall not be unreasonably withheld. At all times while **[\*\*\*]** Covered Aircraft are providing the Regional Airline Services pursuant to this Agreement, Contractor shall use reasonable efforts to ensure that no fewer than **[\*\*\*]** Covered Aircraft are available for scheduling.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VII. **Minimum and Maximum Aircraft Utilization**. For all CAATS, American shall, in its sole discretion, be allowed to schedule CAATS, within the guidelines of this <u>Schedule 3</u> in accordance with the minimum average monthly block hour utilization ("***Minimum Average Monthly Block Hour Utilization***") and maximum average monthly block hour utilization ("***Maximum Average Monthly Block Hour Utilization***") and the minimum average monthly cycle utilization ("***Minimum Average Monthly Cycle Utilization***") and the maximum average monthly block hour utilization ("***Maximum Average Monthly Cycle Utilization***") in the following tables:

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| | |
|:---|:---|
|  **Minimum Average Monthly Block Hour Utilization** | **Maximum Average Monthly Block Hour Utilization** |
|  [\*\*\*] Block Hours/Day | [\*\*\*] Block Hours/Day |
|  **Minimum Average Monthly Cycle Utilization** | **Maximum Average Monthly Cycle Utilization** |
|  [\*\*\*] Cycles/Day | [\*\*\*] Cycles/Day |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. Compensation for Minimum Average Monthly Block Hour Utilization**. American shall be responsible for paying Contractor as if CAATS were flown at the Minimum Average Monthly Block Hour Utilization during any month in which the Requested Plan results in the scheduling of CAATS below such Minimum Average Monthly Block Hour Utilization. The minimum payment due to Contractor in connection with the Minimum Average Monthly Block Hour Utilization shall be calculated as follows:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Block Hour compensation shall equal (A) the total number of CAATS at the time of determination multiplied by (B) the applicable Minimum Average Monthly Block Hour Utilization set forth above multiplied by (C) the Block Hour Rate set forth in <u>Schedule 7</u>, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Flight Hour compensation shall equal (A) the total number of CAATS at the time of determination multiplied by (B) the applicable Minimum Average Monthly Block Hour Utilization set forth above multiplied by (C) the then current months' average flight hour to block hour ratio multiplied by (D) the Flight Hour Rate set forth in <u>Schedule 7</u>, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Departure compensation shall be (A) the total number of CAATS at the time of determination multiplied by (B) the applicable Minimum Average Monthly Block Hour Utilization set forth above multiplied by (C) the then current months' average departure to block hour ratio multiplied by (D) the Departure Rate set forth in <u>Schedule 7</u>, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VIII. **Block Times**. American shall set all block times for flights operated by Covered Aircraft in a manner determined by American but generally consistent with the scheduling of block times set by American for flights operated by all other providers of Regional Airline Services to American; *provided*, *however* that American and Contractor shall cooperate and use commercially reasonable efforts to make adjustments requested by the Contractor or American to such block times.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IX. **American-Approved Contractor Overnight Maintenance Facility**: The overnight maintenance stations represented by the following designators are approved by American: PIT, MCI, MKE, IND and CMH (each a "***Contractor Overnight Maintenance Facility***"). American may, upon ninety (90) days prior Notice to Contractor, request that the Contractor Overnight Maintenance Facilities be amended or revised; *provided* that if **[\*\*\*]** is added as a Contractor Overnight Maintenance Facility, (x) Contractor shall, at its option, be entitled to remove from the above list one of the specified Contractor Overnight Maintenance Facilities, (y) American shall provide the **[\*\*\*]** maintenance facility, subject to <u>Section II(F)</u> of <u>Schedule 4</u> and <u>Exhibit E</u> hereof and (z) Contractor may use the **[\*\*\*]** maintenance facility to perform maintenance on aircraft other than the Covered Aircraft.

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**<u>SCHEDULE 4</u>**

**<u>PASS THROUGH COSTS, CONTROLLABLE COSTS AND AMERICAN ABSORBED EXPENSES</u>**

[\*\*\*]

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**<u>SCHEDULE 5</u>**

**<u>FUEL EFFICIENCY PROGRAM</u>**

Contractor shall use commercially reasonable efforts to develop in a timely manner and maintain a comprehensive fuel efficiency program (the "***Fuel Efficiency Program***"), reasonably acceptable to American, with the overall objective of operating and maintaining the Covered Aircraft in a manner that maximizes fuel efficiency, with due consideration for other performance objectives. The Fuel Efficiency Program shall include applicable data collection and trend analysis for E175 aircraft, and will set and track target metrics. American shall have the option, at American's cost, to audit Contractor's Fuel Efficiency Program at its discretion, but not to exceed more than once during any consecutive twelve (12) month period. Such audits shall use International Air Transport Association ("***IATA***") Fuel and Emissions Efficiency Checklist as guidance to evaluate Fuel Efficiency Program enhancements acceptable to both Parties.

Contractor's Fuel Efficiency Program shall emphasize at least the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**I.** Contractor will participate jointly with American to interface with appropriate ATC facilities, management, and other personnel to minimize operational restrictions, and improve ATC handling of Contractor flights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**II.** Flight planning fuel policies, including statistical tracking of fuel added by pilots and dispatchers, efficient reserves, and other objectives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**III.** Pilot and dispatcher training on the policies and objectives described in <u>Section II</u> above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**IV.** An effective fuel tankering program, including automated tankering suggestions and calculations, using validated methods and formulas; American will provide Contractor with cost data.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**V. S**tatistical tracking, analysis and measurement of fuel efficiency using actual data to identify and correct deficiencies at the fleet and system levels.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**VI.** At American's expense, Contractor will hire a designated manager and team to lead Contractor's fuel task force ("***Contractor Fuel Task Force***") which has overall responsibility for fuel efficiency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**VII.** Reviews each calendar quarter conducted by the Contractor Fuel Task Force of the Fuel Efficiency Program using data from American in order to review Contractor's fuel performance. Such reviews shall include the manager of Contractor's Fuel Task Force as described in <u>Section VI</u> above and representatives from the following groups: Contractor's Service Operations Center, Contractor's Flight group, American's Operations Engineering group and other American personnel as designated by American.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**VIII.** Weight management oversight by Contractor's Fuel Task Force.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**IX.** An auxiliary power unit management policy that prevents unnecessary or costly operation of the auxiliary power unit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**X.** A single engine taxi policy both before takeoff and after landing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**XI.** Fuel and operationally efficient takeoff and landing flap selection priorities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**XII.** An engine maintenance program or maintenance contracts that considers deterioration in specific fuel consumption and allow for cost effective early removal and repair or overhaul of high burn engines, provided there are other indications of engine deterioration and within the vendor's agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**XIII.** Exploring benefits associated with engine wash programs and developing technologies that are intended to improve fuel burn performance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**XIV.** Contractor Actual Fuel Consumption (measured in gallons per Block Hour) of the Covered Aircraft will be assessed by comparing the Contractor Actual Fuel Consumption to the applicable Fuel Consumption Baseline (as defined below) for each Fleet Type. Contractor Actual Fuel Consumption shall be equal to or less than the applicable quarterly and annual Fuel Consumption Baseline calculated below in <u>Section A</u>; *provided* that the Parties may meet and confer as set forth in <u>Section</u> <u>12.01</u> in order to annually revise such Fuel Consumption Baseline based on changes to fleet plans or route structure, or modifications to Covered Aircraft.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. <u>Fuel Consumption Baseline</u>**. As used herein, "***Fuel Consumption Baseline***" means the initial fuel burn baseline for each Fleet type based on **[\*\*\*]** years of historical fuel consumption (measured in gallons per Block Hour) plus a buffer (**[\*\*\*]**), as adjusted for changes in actual stage lengths and landing weights over the applicable period using the Fuel Burn Performance calculation in <u>Section B</u> below. The annual and quarterly Fuel Consumption Baselines by Fleet Type are:

<u>Annual Fuel Consumption Baseline</u> 

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| | |
|:---|:---|
| **Fleet Type** | **Fuel Consumption Baseline (expressed in**<br> **Gallons of Fuel per Block Hour)** |
| EMB-175 | Equal to or less than **[\*\*\*]** gallons/Block Hour |

---

At **[\*\*\*]** load factor. If the load factor is higher or lower, adjustments can be made.

<u>Quarterly Fuel Consumption Baseline</u> 

---

| | |
|:---|:---|
| **Fleet Type** | **Fuel Consumption Baseline (expressed in**<br> **Gallons of Fuel per Block Hour)** |
| EMB-175 | Equal to or less than **[\*\*\*]** gallons/Block Hour |

---

At **[\*\*\*]** load factor. If the load factor is higher or lower, adjustments can be made.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. <u>Fuel Burn Performance</u>**. Fuel Burn Performance shall be calculated as follows:

Fuel Burn Performance = ((Flight Fuel Burn + Taxi Fuel Burn) / System Average Block Hours <u>per Scheduled Flight) + (</u>**<u>[\*\*\*]</u>** <u>gallons for annual calculation or</u> **<u>[\*\*\*]</u>** <u>gallons for quarterly calculation)</u>

Flight Fuel Burn = (A + (B x T) + (C x T x T) + (D x T x W x W)) / 6.7

where: "***T***" equals Air Time divided by 100;

"***W***" equals Landing Weight divided by 10,000; and

"***A,***" "***B,***" "***C***" and "***D***" (which values may be updated annually by mutual agreement of the Parties) shall be:

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| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Fleet**<br> **Type** | **A** | **A** | **B** | **B** | **C** | **C** | **D** | **D** | **Air Time** | **Air Time** | **Landing**<br>**Weight** | **Landing**<br>**Weight** |
|  EMB-175 |  | [\*\*\*] |  | [\*\*\*] |  | [\*\*\*] |  | [\*\*\*] |  | [\*\*\*] |  | [\*\*\*] |

---

The above values for the calculation of Fuel Burn Performance assume the following taxi fuel burn rates for each Model Type:

---

| | |
|:---|:---|
| **Model Type** | **Assumed Taxi Fuel Burn Rates** |
|  EMB-175 | **[\*\*\*]** gallons per taxi hour |

---

The above values for the calculation of Fuel Consumption Baseline can be adjusted for enhanced fuel burn related to new fuel technologies on new Covered Aircraft.

[\*\*\*]

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**<u>SCHEDULE 6</u>**

**<u>CONTRACTOR MARKS</u>**

The Contractor Marks are as follows:

![LOGO](g944307dsp260.jpg)

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**<u>SCHEDULE 7</u>**

**<u>COMPENSATION AND BONUSES AND PENALTIES</u>**

Subject to the terms and conditions of this Agreement, for and in consideration of providing Regional Airline Services and the operation of the Covered Aircraft by Contractor hereunder, American shall pay to Contractor the compensation provided in this <u>Schedule 7</u>. It is agreed that all payments to Contractor for Regional Airline Services shall be made in accordance with the provisions of this <u>Schedule 7</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. **<u>Base Compensation</u>**. American shall pay to Contractor in respect of the Regional Airline Services an amount (the "***Base Compensation***") based on the Primary Drivers described in this <u>Section I(A)</u> below (the "***Primary Drivers***") and the Primary Driver Rates then in effect pursuant to <u>Section II</u> below, for each full calendar month (with appropriate pro rations for any portion of a calendar month), as calculated in accordance with the following, subject, in each case, to reconciliation of actual amounts due pursuant to <u>Section III</u> below and the provisions set forth in <u>Section VI</u> of <u>Schedule 3</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. **Primary Drivers**. For each such full calendar month, the Primary Drivers shall be determined by adding the following: (i) the weighted number of Covered Aircraft multiplied by the Covered Aircraft Day Rate and multiplied by the actual number of days in such month; plus (ii) the aggregate Block Hours for the Covered Aircraft set forth on the Final Monthly Schedule multiplied by the Block Hour Rate (subject to a minimum payment calculated on the basis of the Minimum Average Monthly Block Hour Utilization); plus (iii) the aggregate Flight Hours for the Covered Aircraft set forth on the Final Monthly Schedule multiplied by the Flight Hour Rate; plus (iv) the aggregate departures set forth on the Final Monthly Schedule for the Covered Aircraft multiplied by the Departure Rate. For purposes of clause (i) above, the weighted number of Covered Aircraft during any calendar month shall be calculated by determining, for each Covered Aircraft, the number of days during such month during which such aircraft was a Covered Aircraft, and then aggregating such number of days for all Covered Aircraft, and then dividing such aggregate number of days by the number of days in such calendar month. By way of example and illustration, for a month with thirty (30) days in which six (6) aircraft were considered Covered Aircraft for thirty (30) days and two (2) aircraft were considered Covered Aircraft for fifteen (15) days, the calculation would be as follows:

((2\*15) + (6\*30))/30 = weighted number of 7.0 Covered Aircraft

for such month

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. **Invoicing and Payment of Base Compensation**. No later than five (5) Business Days prior to the commencement of the applicable month of determination, Contractor shall present a detailed written invoice for estimated amounts due to Contractor as compensation for the Scheduled Flights during each month to which such Final Monthly Schedule pertains (including estimated Pass Through Costs). American shall pay to Contractor the amount due under such invoices (the "***Invoiced Amount***"), subject to American's right to dispute any calculations set forth on such invoice, less any amounts otherwise agreed to by Contractor and American.

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American shall pay each Invoiced Amount as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **[\*\*\*]** of the Invoiced Amount, by electronic transfer of funds to a bank account designated by Contractor, on or before the fifth (5th) day of the month (or if such day is not a Business Day, the next Business Day) to which such invoice relates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **[\*\*\*]** of the Invoiced Amount, by electronic transfer of funds to a bank account designated by Contractor, on or before the tenth (10th) day of the month (or if such day is not a Business Day, the next Business Day) to which the invoice relates; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **[\*\*\*]** of the Invoiced Amount, by electronic transfer of funds to a bank account designated by Contractor, on or before the twenty-fifth (25th) day of the month (or if such day is not a Business Day, the next Business Day) to which the invoice relates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;II. **<u>Primary Driver Rates</u>**. The primary driver rates for the Term (collectively the "***Primary Driver Rates***") shall be set forth in this <u>Section II</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. **Primary Driver Rates for Covered Aircraft**: The Primary Driver Rates for Covered Aircraft shall be:

---

| | | | |
|:---|:---|:---|:---|
| Category | January 2013<br>economics<br>(subject to the margin<br>and escalation set forth<br>in Section V of this<br>Schedule 7) | Margin | January 2013 economics<br>(including the margin and<br>escalation set forth in<br>Section V of this<br>Schedule 7) |
|  For each Block Hour of a Covered Aircraft (the "***Block Hour Rate***") | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  For each Flight Hour of a Covered Aircraft (the "***Flight Hour Rate***") | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  For each departure of a Scheduled Flight by a Covered Aircraft (the "***Departure Rate***") | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  For each day for each Covered Aircraft (the "***Covered Aircraft Day Rate***") | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  For each month (or pro-rated part thereof) for each Covered Aircraft (the "***Covered Aircraft Monthly Rate***") | [\*\*\*] | [\*\*\*] | [\*\*\*] |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;III. **<u>Reconciliation of Base Compensation</u>**. Not later than fifteen (15) days following the end of each calendar month for which Regional Airline Services were provided by Contractor, Contractor shall prepare and deliver to American a statement reconciling the actual amounts due with respect to such month determined in accordance with <u>Section I(A)</u> above (as reconciled in accordance with this <u>Section III(A)</u>) with the actual amount paid in accordance with <u>Section I(B)</u> above for such month. Not later than ten (10) days following receipt by American of the foregoing reconciliation statement, American shall review and confirm such statement; *provided* that Contractor shall cooperate with American in discussing such statement upon American's request. Any difference between such actual

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amounts due and such actual amounts paid shall be reconciled either (i) for an underpayment to Contractor, by American paying the difference between the actual amounts due and the actual amounts paid together with the payment to be made on or before the twenty-fifth (25th) day of the month pursuant to <u>Section I(B)</u> above or (ii) for an overpayment to Contractor, by Contractor paying to American the difference between the actual amount paid and the actual amounts due on or before the twenty-fifth (25th) day of the month pursuant to <u>Section I(B)</u> above based solely on the Completed Scheduled Flights of Contractor during such calendar month in accordance with the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. With respect to all Primary Driver Rates, for any month in which there is a difference between the actual activity (Block Hours, Flight Hours, and Departures) and the activity invoiced pursuant to <u>Section I(B)</u> for such month, then such difference shall be reconciled either (i) for an underpayment to Contractor, by American paying the product of (A) the difference between the actual activity and such invoiced activity, multiplied by (B) the applicable Primary Driver Rate then in effect in <u>Section II</u>, or (ii) for an overpayment to Contractor, by Contractor paying to American the product of (A) the difference between such invoiced activity and the actual activity, multiplied by (B) the applicable Primary Driver Rate then in effect in <u>Section II</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**IV. <u>Bonuses and Penalties</u>**. The reconciliation of the last month during each calendar quarter during the Term commencing with the quarter that begins on October 1, 2013 may include a bonus, represented by a payment by American to Contractor (a "***Bonus***"), or a penalty, represented by a deduction of amounts owed by American to Contractor (a "***Penalty***"). Bonuses and Penalties shall be determined pursuant to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. **Controllable Corporate Complaint Factor**. Contractor agrees to use its commercially reasonable efforts to meet the target range for the Controllable Corporate Complaint Factor set forth below during each calendar quarter during the Term hereof as indicated in the following table:

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Bonus Range** | **Bonus Range** | **Target Range** | **Target Range** | **Penalty Range** | **Penalty Range** | **Default Range** | **Default Range** |
|  Controllable Corporate Complaint Factor |  | **[\*\*\*]** |  | **[\*\*\*]** |  | **[\*\*\*]** |  | **[\*\*\*]** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Bonus for Controllable Corporate Complaint Factor</u>. If Contractor's Controllable Corporate Complaint Factor for any calendar quarter is within the Bonus Range (as rounded down to the nearest tenth) set forth above, then the reconciliation payment for the last month during each calendar quarter during the Term shall include a payment by American equal to **[\*\*\*]** of the Primary Drivers component of Base Compensation for the calendar quarter for which such Bonus was earned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Penalty for Controllable Corporate Complaint Factor</u>. If Contractor's Controllable Corporate Complaint Factor for any calendar quarter is within the Penalty Range (as rounded down to the nearest tenth) set forth above, then the reconciliation payment for the last month during each calendar quarter during the Term shall include a deduction in amounts owed by American to Contractor equal to **[\*\*\*]** of the Primary Drivers component of Base Compensation for the calendar quarter for which such Penalty was earned.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Target Range</u>. Should Contractor fall within the Target Range levels for Controllable Corporate Complaint Factor for any calendar quarter during the Term hereof, there shall be no payment due or deduction from Contractor for Controllable Corporate Complaint Factor during such calendar quarter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Default Range</u>. In the event that Contractor's Controllable Corporate Complaint Factor is within the Default Range for a calendar quarter during the Term hereof, then thereafter Contractor's Controllable Corporate Complaint Factor shall be measured on a calendar month basis. In the event that Contractor's Controllable Corporate Complaint Factor is below the Default Range for a subsequent calendar month, then thereafter Contractor's Controllable Corporate Complaint Factor shall be again measured on a calendar quarter basis. If American provides Notice to Contractor of any such failure by the fifteenth (15th) day (or if such day is not a Business Day, the next Business Day) of the calendar month following the applicable calendar quarter or calendar month being measured, and such failure is not cured on or before the last day of such calendar month (or if such day is not a Business Day, the next Business Day), then American shall have the right and option, in addition to any other rights or remedies of American hereunder, to terminate Regional Airline Services pursuant to <u>Section</u> <u>11.02(b)(ix)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. Controllable On-Time Departure**. Contractor agrees to meet the target range percentages for Controllable On-Time Departures during each calendar quarter during the Term hereof commencing with the quarter that begins on October 1, 2013 as indicated in the following table:

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Bonus Range** | **Bonus Range** | **Target Range** | **Target Range** | **Penalty Range** | **Penalty Range** | **Default Range** | **Default Range** |
|  Controllable On-Time Departures |  | **[\*\*\*]** |  | **[\*\*\*]** |  | **[\*\*\*]** |  | **[\*\*\*]** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Bonus for Controllable On-Time Departures</u>. If Contractor's Controllable On-Time Departures for any calendar quarter are within the Bonus Range (as rounded down to the nearest tenth of a percentage) set forth above, then the reconciliation payment for the last month during each calendar quarter during the Term shall include a payment by American equal to **[\*\*\*]** of the Primary Drivers component of Base Compensation for the calendar quarter for which such Bonus was earned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Penalty for Controllable On-Time Departures</u>. If Contractor's Controllable On-Time Departures for any calendar quarter are within the Penalty Range (as rounded down to the nearest tenth of a percentage) set forth above, then the reconciliation payment for the last month during each calendar quarter during the Term shall include a deduction in amounts owed by American to Contractor equal to **[\*\*\*]** of the Primary Drivers component of Base Compensation for the calendar quarter for which such Penalty was earned.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Target Range</u>. Should Contractor fall within the Target Range levels for Controllable On-Time Departures for any calendar quarter during the Term hereof, there shall be no payment due to or from Contractor for Controllable On-Time Departures during such calendar quarter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Default Range</u>. In the event that Contractor's Controllable On-Time Departures is within the Default Range for a calendar quarter during the Term hereof, then thereafter Contractor's Controllable On-Time Departures shall be measured on a calendar month basis. In the event that Contractor's Controllable On-Time Departures is above the Default Range for a subsequent calendar month, then thereafter Contractor's Controllable On-Time Departures shall be again measured on a calendar quarterly basis. If American provides Notice to Contractor of any such failure by the fifteenth (15th) day (or if such day is not a Business Day, the next Business Day) of the calendar month following the applicable calendar quarter or calendar month being measured, and such failure is not cured on or before the last day of such calendar month (or if such day is not a Business Day, the next Business Day), then American shall have the right and option, in addition to any other rights or remedies of American hereunder, to terminate Regional Airline Services pursuant to <u>Section</u> <u>11.02(b)(viii)</u>**.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. Controllable Completion Rate.** Contractor agrees to meet the target range percentages for Controllable Completion Rate during each calendar quarter of the Term commencing with the quarter that begins on October 1, 2013 as indicated in the following table:

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| | | | |
|:---|:---|:---|:---|
|  | **Bonus Range** | **Target Range** | **Penalty Range** |
| Controllable Completion Rate | **[\*\*\*]** | **[\*\*\*]** | **[\*\*\*]** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Bonus for Controllable Completion Rate</u>. If Contractor's Controllable Completion Rate for any calendar quarter is within the Bonus Range (as rounded down to the nearest tenth of a percentage) set forth above, then the reconciliation payment for the last month during each calendar quarter during the Term shall include a payment by American equal to **[\*\*\*]** of the Primary Drivers component of Base Compensation for the calendar quarter for which such Bonus was earned.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Penalty for Controllable Completion Rate</u>. If Contractor's Controllable Completion Rate for any calendar quarter is within the Penalty Range (as rounded down to the nearest tenth of a percentage) set forth above, then the reconciliation payment for the last month during each calendar quarter during the Term shall include a payment by Contractor to American equal to **[\*\*\*]** of the Primary Drivers component of Base Compensation for the calendar quarter for which such Penalty was earned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Target Range</u>. Should Contractor fall within the Target Range for Controllable Completion Rate for any calendar quarter, there shall be no payment due to/from Contractor for Controllable Completion Rate for such calendar quarter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D. Reconciliation of Bonuses and Penalties**. Not later than fifteen (15) days following the date that American receives the results necessary to determine the Bonus/Penalty as it relates to the Controllable Corporate Complaint Factor, Controllable On-Time Departures and Controllable Completion Rate, American shall provide Contractor with all such results. Not later than twenty (20) days following Contractor's receipt of all such results, Contractor shall prepare a statement reflecting the Bonus/Penalty determined for such calendar quarter as described below. Not later than ten (10) days following receipt by American of the foregoing statement, American shall review and confirm such statement after such discussions as may be necessary with Contractor. The Bonus/Penalty shall be determined as paid as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. For any calendar quarter for which any Bonus calculated hereunder exceeds any Penalty calculated hereunder, the reconciliation for such calendar quarter shall include a payment by American to Contractor of the difference between such Bonus and such Penalty, which payment shall be made by American together with the next scheduled payment to be made pursuant to Section I(B) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. For any calendar quarter for which any Penalty calculated hereunder exceeds any Bonus calculated hereunder, the reconciliation for such calendar quarter shall include a deduction of amounts owed by American to Contractor or a separate payment by Contractor to American in the amount of the difference between such Penalty and such Bonus, which deduction shall be reflected on or before the next scheduled payment date provided for in <u>Section I(B)</u>.

If the necessary information required to determine the Bonus or Penalty is not available as of the time set forth above in this <u>Section IV(D)</u>, the Parties shall make the required reconciliation promptly after such information becomes available.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**V. <u>Escalation</u>.** The escalation percent (the "***Escalation Percent***" or "***EP***") as computed below shall be applied to the Primary Driver Rates in this <u>Schedule 7</u>. For the year 2014, an escalation adjustment shall be made effective January 1, 2014 and shall be computed as **[\*\*\*]** of the change from the November 2012 CPI Index to the November 2013 CPI Index **[\*\*\*]** (subject to a minimum of **[\*\*\*]** and a maximum of **[\*\*\*]**). Beginning January 1, 2015 and continuing thereafter, the escalation adjustment shall be made effective January 1 of each subsequent year and shall be computed based upon the change (expressed as a percent) from the published report of CPI released during the second preceding November to the immediately preceding November **[\*\*\*]** (subject to a minimum of **[\*\*\*]** and a maximum of **[\*\*\*]**); for example, on January 1, 2015, the EP shall be determined based on the change in CPI from November 2013 to November 2014. The escalation adjustment shall be used to adjust the rates for the year beginning that January 1st by applying the EP to the rates in effect for the prior year. However, in no event shall any EP adjustment for any single year be less than **[\*\*\*]** or exceed **[\*\*\*]**. The Escalation Percent shall be computed as follows**:**

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EP = the greater of:

**[\*\*\*]** change in CPI of previous 12 month period (November to November) calculated on each January 1 (with a maximum of **[\*\*\*]**)

OR

**[\*\*\*]**.

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**<u>ATTACHMENT 1 TO SCHEDULE 7</u>**

<u>CALCULATION OF COVERED AIRCRAFT MONTHLY RENT</u> 

**Covered Aircraft Monthly Rate Formula: [\*\*\*] Factory New E175\*** 

**[\*\*\*]** 

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**<u>SCHEDULE 8</u>**

**<u>TERMS OF AMERICAN'S COLLECTIVE BARGAINING AGREEMENT</u>**

**[\*\*\*]** 

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**<u>SCHEDULE 9</u>**

**<u>CONTROLLABLE COMPLETION RATE</u>**

Pursuant to <u>Section</u> <u>11.02(b)(iv)</u> if Contractor fails to maintain the following Controllable Completion Rates (as rounded down to the nearest hundredth of a percentage) for the specific time periods set forth below commencing with the quarter that begins on October 1, 2013 with respect to the Scheduled Flights, then American shall have the right and option in its sole discretion to, by providing Notice (which Notice shall specify the Termination Date, subject to <u>Article XI</u>) to Contractor to terminate this Agreement (in accordance with <u>Section</u> <u>11.02(d)</u>); *provided* that if American has not delivered Notice of termination pursuant to <u>Section</u> <u>11.02(b)(iv)</u> within six (6) calendar months after Contractor has failed to maintain the applicable Controllable Completion Rate set forth below, then American shall be deemed to have conclusively waived its right to terminate the Agreement based upon any such failure.

---

| | |
|:---|:---|
| **Controllable Completion Rate** | **Time Period** |
|  [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] |
|  **[\*\*\*]** | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] |
|  **[\*\*\*]** | [\*\*\*] |
|  **[\*\*\*]** | [\*\*\*] |

---

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**<u>SCHEDULE 10</u>**

**<u>ACCOUNTING AND AUDITING PROCEDURES AND PAYMENT TERMS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. **<u>Books and Records</u>**. Contractor shall maintain separate books and records in connection with providing Regional Airline Services to American, on the one hand, and Contractor's other operations (if any), on the other, in each case to support and document all revenues related to any in-flight services as set forth in <u>Section</u> <u>4.03(c)</u> and <u>Section V</u> of <u>Schedule 4</u>, Pass Through Costs and American Absorbed Expenses. Contractor's books and records that relate to providing Regional Airline Services to American shall be complete and accurate and shall be maintained in accordance with customary business and accounting procedures consistently applied with respect to Contractor providing such Regional Airline Services. Notwithstanding the foregoing, all such books, records and calculations relating to providing Regional Airline Services to American shall be kept and made in accordance with the accounting policies and procedures that were used by American and Contractor to develop the compensation rates for such Regional Airline Services, unless otherwise Consented to by American. Nothing herein shall require Contractor to keep its books in a manner that is not in compliance with any applicable law or would violate generally accepted accounting principles. Contractor shall also maintain, at its corporate headquarters (or such other location Consented to by American), reports, records and data relevant to the billing of any services that are the subject matter of this Agreement for a period of three (3) years after the end of the Term, unless a longer period is required by any applicable law, rule or regulation of a Governmental Authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;II. **<u>Audit Rights</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. <u>Billing and Compliance Audits</u>. In addition to any other audit rights under this Agreement, American may, at its own cost (subject to <u>Section III</u>), during normal business hours without unreasonably interfering with Contractor's operations, audit or review (and Contractor shall make available) the books, records, data and other documents of Contractor, and any of its respective Affiliates, including books, records, data and other documents related to: (i) billing and invoicing and (ii) Contractor providing Regional Airline Services; (iii) Contractor's in-flight services and in-flight sales; and (iv) Contractor's compliance with any provision of this Agreement that affects the accuracy of Contractor's billing, invoicing and operational performance for the services provided to American hereunder or thereunder, including any operational metrics related to providing Regional Airline Services; *provided*, that any audit or review shall be limited to a review of information that American believes is relevant to Pass Through Costs, American Absorbed Expenses or any other costs and expenses to be paid or incurred directly or indirectly by American under this Agreement. The scope of the audit or review shall be limited to the services provided to American pursuant to this Agreement and the costs, expenses, books, records, data and other documents relating thereto. Any such audit or review shall begin no fewer than thirty (30) days after Contractor receives a Notice requesting an audit or review. The audit may be conducted by American's employees and/or external auditors selected by American.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. <u>Safety Audits</u>. American shall also have the right, at its own cost (subject to <u>Section III</u> hereof), to inspect, review, and observe Contractor's performance of the Regional Airline Services and to conduct a full safety audit or review of Contractor's operations, manuals and procedures related to providing Regional Airline Services. Such audits or reviews shall be of sufficient length and depth so as to allow American to properly certify Contractor's safety and compliance with all laws, rules and regulations of any Governmental Authority. Notwithstanding the conduct or absence of any such audit or review, Contractor (and not American) is and shall remain solely responsible for the safe operation of Covered Aircraft and the safe provision of all Regional Airline Services, including (a) maintaining the airworthiness of all Covered Aircraft, and (b) complying with all FARs and any regulations by the DOT or any other Governmental Authority to the extent the responsibility for compliance therewith is not specifically allocated to a Person other than Contractor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. <u>Data Security Audits</u>. American (or its designated representatives) shall have the right, at its own cost (subject to <u>Section III</u> hereof), on an annual basis, or more frequently as requested by American, to conduct an audit to verify that Contractor is complying with its obligations under <u>Section</u> <u>14.07</u>. Contractor will cooperate with American in conducting any such audit, and shall allow American access to all pertinent records, documentation, computer systems, data, personnel and processing areas as American deems necessary to accurately and effectively complete such audit. Contractor shall promptly correct any deviations from Security Best Practices that are identified in any security audit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. <u>Binding Estimates</u>. In connection with any estimates of out-of-pocket costs and expenses provided to American by Contractor that Contractor requests to be treated as Pass Through Costs payable by American, American shall have the right and option to discuss with Contractor, ask questions regarding such estimates and request supporting documentation for any such estimate from Contractor, and Contractor will cooperate with American in connection with such discussions, questions and requests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. <u>Procedures</u>. In connection with any audit, American, American's employees and any Representatives, including external auditors selected by American, shall be entitled to make copies and notes of such information as they reasonably deem necessary and to discuss such records with any employees of Contractor, its Contractor Agents or advisors to Contractor who are knowledgeable about such records. Contractor shall cause any of its Contractor Agents to comply with its obligations under this <u>Section II</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;III. **<u>Payment Addresses</u>**. All payments due and owing by American to Contractor shall be made by wire transfer of available funds to an account maintained by Contractor as set forth in <u>Schedule 7</u>. All payments to American shall be made by wire transfer of available funds to the following accounts unless or until American provides Notice of any change:

[\*\*\*]

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IV. **<u>Foreign Currency Settlement</u>.** All payments shall be made in U.S. Dollars. To the extent American is reimbursing Contractor for out-of-pocket costs and expenses incurred in a foreign jurisdiction pursuant to this Agreement, American shall pay Contractor all reimbursements in U.S. Dollars ("**USD**") to a bank located in the United States. For expenses incurred in Canadian Dollars ("***CAD***"), the USD amount shall be calculated using the CAD-USD exchange rate published by [Reuters] on the day on which the services were provided. For expenses incurred in Mexican Pesos ("***MXN***"), the USD amount shall be calculated using the MXN-USD exchange rate published by [Reuters] on the day on which the services were provided. The method for converting any other foreign currencies to USD should be agreed upon by the Parties, in writing, prior to the commencement of any Regional Airline Services in that country.

------

**<u>SCHEDULE 11</u>**

**<u>CONTROLLABLE CANCELLATION CODES</u>**

**[\*\*\*]** 

------

**<u>SCHEDULE 12</u>**

**<u>CONTROLLABLE ON-TIME DEPARTURE CODES</u>**

**[\*\*\*]** 

------

**<u>SCHEDULE 13</u>**

**<u>CONTROLLABLE CORPORATE COMPLAINT FACTOR CODES</u>**

**[\*\*\*]** 

------

**<u>EXHIBIT A</u>**

DEFINITIONS

The following terms shall have the meanings set forth below for all purposes of this Agreement and shall be equally applicable to both the singular and the plural forms of the terms defined herein.

"***AADAMS***" shall mean American Airlines Digital Asset Management System.

"***ACARS***" shall mean the system known as the Airline Communication and Reporting System or any successor or alternative system designated from time to time by American in its sole discretion.

"***Accident***" shall mean an "***Aircraft Accident***" as defined by the NTSB rules and regulations, including 49 C.F.R. §830.2 or any successor provision.

"***Affiliate***" shall mean any Person that directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, another Person; *provided* that American Eagle Airlines, Inc., a Delaware corporation, and Executive Airlines, Inc., a Delaware corporation, shall each always be deemed an Affiliate of American.

"***Air Time***" shall mean the actual average air time per Scheduled Flight (measured in Flight Hours/60) for all Covered Aircraft during the respective measurement period (quarterly or annually).

"***Alternative Hubs***" shall mean any of **[\*\*\*]**.

"***American Agent***" shall mean any representative or agent of American (and the employees of any such representative or agent).

"***American Data***" shall mean all data, information and intellectual property, including any such data that may be deemed Confidential Information, that is either (i) submitted to Contractor or its Contractor Agents by or on behalf of American, including data, information or intellectual property *provided* by American Agents, or (ii) obtained, developed or produced by Contractor or its Contractor Agents in connection with the performance of the Regional Airline Services or operation of the Covered Aircraft under this Agreement, including Flight Status Data; but excluding Contractor Data.

"***American Indemnified Parties***" (and individually, each an "***American Indemnified Party***") shall mean AMR, American, any American Agent and their respective Affiliates and each of their respective successors or permitted assigns, and the directors, officers and employees of each such Person.

"***American Labor Strike***" shall mean a Labor Strike that relates to the employees or labor force of American.

"***American Systems***" (and individually, each an "***American System***") shall mean information systems, including AADAMS, computerized reservation systems, global distribution systems and other associated support systems, providing information regarding such things as seat inventory and passenger processing, and their respective successor systems, if any.

"***AMR***" shall mean AMR Corporation, a Delaware corporation, or its successors or permitted assigns.

"***Approved Marks***" shall mean the Marks for which Contractor receives American's Consent to use, including the addition, introduction and termination of use of such Marks pursuant to <u>Section</u> <u>6.03</u>.

"***ATC***" shall mean any Person or Governmental Authority that, from time to time, holds the air traffic control authority to issue clearance for actual ground or flight operations as granted by the FAA or any other Governmental Authority.

------

"***Bankruptcy Proceeding***" ****shall mean those cases styled and jointly administered as *In re AMR Corporation, et al*. pending in the United States Bankruptcy Court for the Southern District of New York, case no. 11-15643 (SHL), wherein American and certain affiliated debtors are debtors in possession under the Bankruptcy Code.

"***Block Hour***" shall mean the actual elapsed time of a Completed Scheduled Flight (expressed in hours, as a number rounded to four (4) decimal places) measured from gate departure to gate arrival where gate departure is the later of door close or brake release and gate arrival is the later of door open or brake set, as determined in accordance with ACARS.

"***Business Day***" shall mean each Monday, Tuesday, Wednesday, Thursday and Friday unless such day shall be a day when the Federal Reserve Bank of Dallas, or any Governmental Authority then performing similar functions in or around Fort Worth, Texas, Indianapolis, Indiana or New York, New York, is authorized to be closed. A Business Day shall be deemed to end at 5:00 p.m., Central time.

"***Catering Products***" shall mean all (i) food and beverages for passengers, including all beer, wine, liquor and other alcoholic beverages, (ii) customary in-flight catering supplies, including, but not limited to napkins, stir rods, cups, in-flight publications, pillows, blankets, trash bags, sick sacks, lavatory supplies, creamers and sugars, and (iii) devices used by Contractor's flight attendants in connection with the sale and delivery of the foregoing items to passengers, in each case, in connection with the operation of Regional Airline Services.

"***Catering Services***" shall mean all services related to providing and arranging for the placement of Catering Products on board the Covered Aircraft, including, but not limited to, stocking Catering Products on the Covered Aircraft, providing beverage uplift, providing trained catering truck guides and storage of all Catering Products, in each case, in connection with the operation of Regional Airline Services.

"***Change of Control***" shall mean any of the following transactions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)** Contractor (or its successor), or any Subsidiary of Contractor or its successor, consolidates with, or merges with or into, another Person, or conveys, transfers, leases or otherwise disposes directly or indirectly of all or substantially all of its assets to any Person, or any Person consolidates with, or merges with or into, Contractor, in each case, whether pursuant to one or any series of transactions, except where (a) Contractor is the surviving entity and (b) the ultimate beneficial owners of Contractor's outstanding capital stock or voting power immediately prior to such transaction or transactions own not less than **[\*\*\*]** of the outstanding capital stock or voting power of Contractor (or such successor) immediately after such transaction or transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii)** Holdings (or its successor), or any Subsidiary of Holdings or its successor, consolidates with, or merges with or into, another Person, or conveys, transfers, leases or otherwise disposes directly or indirectly of all or substantially all of its assets to any Person, or any Person consolidates with, or merges with or into, Holdings, in each case, whether pursuant to one or any series of transactions, except where (a) Holdings is the surviving entity and (b) the ultimate beneficial owners of Holdings' outstanding capital stock or voting power immediately prior to such transaction or transactions own not less than **[\*\*\*]** of the outstanding capital stock or voting power of Holdings immediately after such transaction or transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iii)** the acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended) of Beneficial Ownership (as defined in Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934, as amended) of

------

 **[\*\*\*]** or more of the capital stock or voting power of Contractor or Holdings (or any one of their successors, or any Subsidiary of Contractor or Holdings or any of their successors); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iv)** the entering into or execution by Contractor or Holdings of bona fide definitive agreements relating to the consummation of the transactions contemplated by, or which would result in a transaction described in, the immediately preceding clauses.

"***Claims***" shall mean all liabilities, judgments, demands, recoveries, awards, settlements, penalties, fines, losses and expenses of any nature or kind whatsoever, including reasonable costs and expenses incidental thereto, under the laws, rules or regulations of any Governmental Authority (whether arising in tort, contract, under the Warsaw Convention, as amended, or the Montreal Convention, as amended, and related instruments and conventions or otherwise); Claims shall include the reasonable costs and expenses of investigating, preparing or defending any such Claims (specifically including post judgment and appellate proceedings or proceedings that are incidental to the successful establishment of a right of indemnification), such as reasonable attorneys' fees and fees for expert witnesses, consultants and litigation support services.

"***Collective Bargaining Agreement***" ****shall mean any letter of intent, term sheet, binding or non-binding agreement or contractual or other arrangement between a labor union, or similar group, and an employer pursuant to which working conditions or terms of employment are regulated.

"***Completed Scheduled Flight***" shall mean a Scheduled Flight that takes off from its scheduled departure location and arrives at its scheduled final; *provided*, that a Scheduled Flight shall not be deemed a Completed Scheduled Flight resulting in payments for the purposes of <u>Schedule 7</u>, if, as a result of a delay or other event caused, directly or indirectly, by Contractor or its Contractor Agents, such Scheduled Flight (a) arrives at its final destination between the hours of 12:30 a.m. and 5:00 a.m. and is more than five (5) hours after its scheduled arrival time as then specified on the applicable Final Monthly Schedule or (b) arrives at its final destination with no revenue passengers aboard.

"***Confidential Information***" ****shall mean any information or data, either oral or written, received by one Party from the other Party, whether pursuant to or in connection with this Agreement, and which is (a) marked as being "***Confidential***" or "***Proprietary***"; (b) otherwise reasonably identifiable as confidential or proprietary information; or (c) under the circumstances should reasonably be considered as confidential or proprietary information, including: (i) the terms and conditions of this Agreement; (ii) American's or Contractor's information concerning public communications pursuant to <u>Section</u> <u>14.06(b)</u>; (iii) American's cost-saving information shared as set forth in <u>Section</u> <u>7.03</u>; (iv) American Software, (v) American Data and Contractor Data and (vi) data collected pursuant to the Fuel Efficiency Program; *provided* that "***Confidential Information***" shall not include (x) information received by a Party after the Effective Date, free of any obligation of confidence at the time of the disclosing Party's communication to the receiving Party; (y) information obtained from a third person or entity that is not prohibited from transmitting such information to the receiving party as a result of a contractual, legal or fiduciary obligation to the Party whose information is being disclosed; or (z) information that is or becomes generally available to the public, other than as a result of disclosure by a Party in violation of this Agreement.

"***Consent***" shall mean any written authorization, agreement, approval, consent, ratification, waiver or other authorization, and "***Consented***" shall mean the act of providing any such Consent.

"***Contractor Actual Fuel Consumption***" shall mean Contractor's actual fuel consumption (measured in gallons per Block Hour).

------

"***Contractor Agent***" shall mean any contractor, subcontractor, representative or agent (and the employees of any such contractor, subcontractor, representative or agent) retained, directly or indirectly, by Contractor and providing Regional Airline Services or any portion thereof on behalf of Contractor.

"***Contractor Data***" shall mean Contractor Employee Data, Contractor Financial Data and Flight Operations Data.

"***Contractor Employee Data***" shall mean Contractor's records regarding their employees.

"***Contractor Financial Data***" shall mean Contractor's proprietary internal financial information.

"***Contractor Labor Strike***" shall mean a Labor Strike that relates to the employees or labor force of Contractor.

"***Contractor's Indemnified Parties***" (and individually, each a "***Contractor Indemnified Party***") shall mean Contractor, any of its Contractor Agents and its Affiliates, and each of its successors or permitted assigns, and the directors, officers and employees of each such Person.

"***Controllable Cancellation***" ****shall mean ****the cancellation of a Scheduled Flight that is not an Uncontrollable Cancellation.

"***Controllable Completion Rate***" shall mean, for any period of determination, the percentage of Completed Scheduled Flights during such period, excluding Uncontrollable Cancellations, but including Controllable Cancellations.

"***Controllable Corporate Complaint Factor***" ****shall mean the number obtained by dividing the (i) the total number of Controllable Corporate Complaints during the applicable period by (ii) the number of 1,000 enplaned revenue passengers boarded on Scheduled Flights during the applicable period.

"***Controllable Corporate Complaints***" ****shall mean the total number of Contractor-caused complaints received by Contractor and American from any passengers or prospective passengers on Scheduled Flights or relating to the provision of Regional Airline Services, as tracked and reported in American's ADVOCATE System or any successor system, including any complaints due to any of the events set forth on <u>Schedule 13</u>.

"***Controllable On-Time Departures***" ****shall mean a Scheduled Flight that departs within **[\*\*\*]** minutes of or before the scheduled departure time and any Scheduled Flight that departs after **[\*\*\*]** minutes following its scheduled departure time solely as a result of an Uncontrollable Delay or an event that is not specified in <u>Schedule 13</u>. For purposes of the Bonus Range, Penalty Range and Default Range set forth in <u>Section IV(B)</u> of <u>Schedule 7</u>, such ranges shall mean the percentage (rounded to four (4) decimal places) equal to the quotient obtained by dividing (i) all Controllable On-Time Departures during the relevant measurement period, by (ii) all Completed Scheduled Flights for the same measurement period.

"***Copyrights***" shall mean: (i) any rights in original works of authorship fixed in any tangible medium of expression as set forth in the United States Copyright Act, 17 U.S.C. § 101 et. seq., registered or unregistered; (ii) all registrations and pending applications to register the rights identified in clause (i) hereof anywhere in the world; (iii) all foreign counterparts and analogous rights anywhere in the world; and (iv) all rights in and to any of the foregoing. ****

"***CPI***" ****shall mean (i) the Consumer Price Index for All Urban Consumers—U.S. City Average, Not Seasonally Adjusted Base Period: 1982-84 = 100 (such term shall exclude the "***Food and Energy***" component when used in Schedule E-4 attached as Annex C) as published by the Bureau of Labor Statistics, United States Department of Labor, or (at any time when the Bureau of Labor Statistics is no longer publishing such Index) as published by any other agency or instrumentality of the United States of America,

------

or (ii) at any time after the index described in clause (i) shall have been discontinued, any reasonably comparable replacement index or other computation published by the Bureau of Labor Statistics or any other agency or instrumentality of the United States of America. If any such index shall be revised in any material respect (such as to change the base year used for computation purposes), then all relevant determinations under this Agreement shall thereafter be made in accordance with the relevant conversion factor or other formula published by the Bureau of Labor Statistics or any other agency or instrumentality of the United States of America, or (if no such conversion factor or other formula shall have been so published) in accordance with the relevant conversion factor or other formula published for that purpose by any nationally recognized publisher of such statistical information.

"***Crew Facilities***" shall mean pilot and flight attendant crew rooms at the Hub.

"***Dispatch***" ****shall mean the dispatch of a Scheduled Flight and shall include releasing a flight for departure, fueling and flight release for Scheduled Flights.

"***DOT***" shall mean the United States Department of Transportation or any successor Governmental Authority then performing the same or substantially similar duties.

"***EMB-175***" shall mean an Embraer E-175 aircraft or any successor model thereto that is then manufactured by Embraer S.A., incorporated in the Federative Republic of Brazil, or its successors or assigns.

"***Engine***" ****shall mean, with respect to each aircraft, each of its two engines whether or not from time to time installed on the aircraft; together with any and all parts incorporated or installed in or attached thereto or any and all parts removed therefrom (or any replacement engine therefor).

"***FAA***" shall mean the Federal Aviation Administration or any successor Governmental Authority then performing the same or substantially similar duties.

"***FARs***" shall mean the federal aviation regulations or rules promulgated by the FAA under or pursuant to Title 14 of the Code of Federal Regulations, FAA airworthiness directives or FAA advisory circulars, as amended from time to time, or any successor regulations or rules therefore.

"***Ferry Flights***" means flights (other than Maintenance Flights) necessary to accommodate Scheduled Flights. For the avoidance of doubt, **[\*\*\*]**.

"***Fixed Costs***" means, for each Covered Aircraft, the Covered Aircraft Monthly Rate (including margin), the Covered Aircraft Day Rate (including margin), and insurance and property taxes (as provided in <u>Section I</u> (<u>F</u>, <u>G</u>, <u>H</u> and <u>I</u>) of <u>Schedule 4</u> of the Agreement).

"***Flight Hour***" shall mean actual lapsed time of a Completed Scheduled Flight between its status of "***OFF***" (aircraft weight OFF the main wheel struts) until its status of "***ON***" (aircraft weight ON) the main wheel struts, as determined in accordance with ACARS.

"***Flight Operations Data***" shall mean data related to the operation of the Covered Aircraft during flight.

"***Flight Status Data***" shall mean data relating to the status of a Scheduled Flight, including unplanned schedule changes, cancellations, delays and gate information.

"***Floating (or Spot) Price***" shall mean the number equal to the arithmetic average of the high and low quotations for a **[\*\*\*]** -period from Platts Oilgram Price Report for Gulf Coast Jet/Kero 54 (Pipeline) for each Business Day that it is determined during such **[\*\*\*]** -period.

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"***Force Majeure Event***" shall mean delays or failure in performance hereunder caused by acts of God, acts of terrorism or hostilities, war, fire, act of government, court order or any other similar cause that is beyond the control of that party; **[\*\*\*]**.

**[\*\*\*]** 

**[\*\*\*]** 

"***Governmental Authority***" shall mean any federal, state, municipal, local, territorial, or foreign government or any governmental department, commission, court, judicial body, instrumentality, board, bureau, agency, registry, regulatory authority or body or airport authority (including private airport authorities or any similar authority or governing board in any domestic or foreign jurisdiction, or any private or quasi-governmental entity, governing board or other Person with authority to lease, convey or otherwise grant or restrict rights to use or operate any airport facilities).

"***Hub***" ****shall mean the airport at which the Covered Aircraft are based, which shall initially be **[\*\*\*]** and **[\*\*\*]** and can be changed to an Alternate Hub pursuant to <u>Section</u> <u>2.01(b)</u>.

"***Incident***" shall mean an incident as defined by the rules and regulations adopted by the NTSB pursuant to 49 C.F.R. §830.2 or any successor provision.

"***Labor Strike***" shall mean a labor strike legally permissible under the Railway Labor Act, as amended (45 U.S.C. §151, *et. seq.*), or any similar statute then in effect and applicable to the Parties, after exhaustion of all major dispute procedures as may be required or specified therein, including those provided for in 45 U.S.C. §155 and §156.

"***Landing Weight***" shall mean the actual average landing weight (measured in pounds) per Scheduled Flight for all Covered Aircraft during the respective measurement period (quarterly or annually).

**[\*\*\*]** 

"***Marks***" shall mean any trademark, trade name, trade dress, service mark, logo, domain name, or other indicia of ownership owned or used by either of the Parties or any of their respective Affiliates and includes the Approved Marks and the Contractor Marks.

"***Notice***" shall mean a written notice, direction or instruction given in accordance with <u>Section</u> <u>14.01</u>.

"***NTSB***" shall mean the United States National Transportation Safety Board or any successor Governmental Authority then overseeing air transportation safety.

**[\*\*\*]** 

"***Outstation***" shall mean any airport other than the Hub.

"***Party***" shall mean any of American, on the one hand, Contractor, on the other hand, and "***Parties***" shall mean American and Contractor, collectively.

"***Passenger-Related Terminal Facilities***" ****shall mean all passenger-related terminal facilities and spaces used in connection with the operation of Regional Airline Services, including without limitation all passenger lounges, passenger holding areas, aircraft parking positions (which may or may not be adjacent to a passenger holding area) and associated ramp spaces, gates (including loading bridges and associated ground equipment parking areas), ticketing counters, curbside check-in facilities, baggage makeup areas, and inbound baggage areas.

"***Person***" shall mean an individual, partnership, limited liability company, corporation, joint stock company, trust, estate, joint venture, association or unincorporated organization, or any other form of business or professional entity.

------

"***Regional Airline Services***" shall mean, collectively, the provisioning by Contractor to American of Scheduled Flights, and the provision of maintenance or repair services on Covered Aircraft, all in accordance with the terms and conditions of this Agreement; but excluding in all events any and all ground handling and related services to be provided by a third party for aircraft flown by American or on its behalf.

"***Representative***" shall mean the individual agent or representative designated by each Party to be its formal liaison with or representative to the other Party for matters relating to this Agreement, having the (non-exclusive) authority and responsibility as described in this Agreement.

"***Scheduled Flight***" shall mean a flight of a Covered Aircraft that is then included in the applicable Final Monthly Schedule and any other flights operated by Contractor at the request of American; but excluding any charter flights of a Covered Aircraft not included in the applicable Final Monthly Schedule for the month of such flight.

"***Subsidiary***" shall mean, as to any Person, (i) any corporation more than 50% of whose stock of any class or classes having ordinary voting power to elect a majority of the directors of such corporation (irrespective of whether or not at the time, any class or classes of such corporation shall have or might have voting power by reason of the occurrence of any contingency) is at the time owned by such Person directly or indirectly through Subsidiaries and (ii) any other Person in which such Person directly, or indirectly through other Subsidiaries or Affiliates, beneficially owns more than 50% of the equity interest of that Person at the time.

"***Taxi Fuel Burn***" shall mean the actual average taxi fuel burn per Scheduled Flight (measured in gallons per hour) for all Covered Aircraft during the respective measurement period (quarterly or annually).

"***Term***" ****shall mean the Initial Term or the Extension Term, as applicable.

"***Termination Date***" shall mean the date of the termination of this Agreement, as provided in a Notice delivered from one Party to the other pursuant to <u>Article XII</u>, or, if no such early termination shall have occurred, the date of the end of the Term.

"***Third Party***" shall mean any Person that is not an Affiliate of American or Contractor, as the case may be.

"***TSA***" shall mean the United States Transportation Security Administration or any department of a Governmental Authority then performing the same or substantially similar duties.

"***Uncontrollable Cancellation***" shall mean cancellations that are due to (i) a universal FAA airworthiness directive that generally affects the aircraft type flown by Contractor under this Agreement

and is not the result of any action or failure to act by Contractor or (ii) any event that is not set forth on <u>Schedule 11</u>.

"***Uncontrollable Delay***" shall mean delays that are due to (i) a universal FAA airworthiness directive that generally affects the aircraft type flown by Contractor under this Agreement and is not the result of any action or failure to act by Contractor or (ii) any event that is not set forth on <u>Schedule 13</u>.

"***Wind-Down Period***" shall mean the period after the Termination Date and until the time when the last Covered Aircraft has been removed from this Agreement in accordance with <u>Section</u> <u>11.02(d)</u>.

"***Wind-Down Schedule***" shall mean the schedule, procedures and process for terminating Regional Airline Services relating to any Covered Aircraft in accordance with <u>Section</u> <u>11.02</u>, which Wind-Down Schedule shall designate a date of removal for such Covered Aircraft at which time the Covered Aircraft shall no longer be subject to the provisions of this Agreement.

------

Additionally, the following terms shall have the meaning set forth in the corresponding sections of or schedules to this Agreement:

---

| | |
|:---|:---|
| **Term** | **Defined in Section or Schedule** |
|  ***"AA Flights"*** | Section 3.04(b) |
|  ***"Additional Aircraft"*** | Section 3.03 |
|  ***"Agreement"*** | Introductory Paragraph |
|  ***"Airport Operators"*** | Section 2.05 |
|  ***"American"*** | Introductory Paragraph |
| ***"[\*\*\*]"*** | [\*\*\*] |
|  ***"American Cost Initiative"*** | Section 7.03(b) |
|  ***"American Gates and Facilities"*** | Section 2.05 |
|  ***"American Gates and Facilities Agreements"*** | Exhibit E |
|  ***"American Software"*** | Section 6.03(i) |
| ***"[\*\*\*]"*** | [\*\*\*] |
|  ***"Bankruptcy Code"*** | Section 14.22 |
|  ***"Base Compensation"*** | Schedule 7 |
|  ***"Block Hour Rate"*** | Schedule 7 |
|  ***"Bonus"*** | Schedule 7 |
|  ***"CAATS"*** | Schedule 3 |
|  ***"CAD"*** | Schedule 8 |
|  ***"Chapter 11 Cases"*** | Section 14.22 |
|  ***"Codeshare Airlines"*** | Section 3.04(e) |
|  ***"Communication"*** | Section 14.01 |
|  ***"Contractor"*** | Introductory Paragraph |
|  ***"Contractor Fuel Task Force"*** | Schedule 5 |
|  ***"Contractor Marks"*** | Section 6.03(a) |
|  ***"Contractor Overnight Maintenance Facilities"*** | Schedule 3 |
| ***"[\*\*\*]"*** | [\*\*\*] |
|  ***"Covered Aircraft"*** | Section 2.01 |
|  ***"Covered Aircraft Day Rate"*** | Schedule 7 |
|  ***"Covered Aircraft Monthly Rate"*** | Schedule 7 |
|  ***"Departure Rate"*** | Schedule 7 |
|  ***"Dispute"*** | Section 13.01 |
|  ***"Effective Date"*** | Introductory Paragraph |
|  ***"Emergency Assistance Agreement"*** | Recitals |
|  ***"EP"*** | Schedule 7 |
|  ***"Escalation Percent"*** | Schedule 7 |
|  ***"Extension Term"*** | Section 12.01 |

---

------

---

| | |
|:---|:---|
|  ***"Final Monthly Schedule"*** | Schedule 3 |
|  ***"Flight Hour Rate"*** | Schedule 7 |
|  ***"Fuel Burn Performance"*** | Schedule 5 |
|  ***"Fuel Efficiency Program"*** | Schedule 5 |
|  ***"[\*\*\*]"*** | [\*\*\*] |
|  ***"Holdings"*** | Recitals |
|  ***"IATA"*** | Schedule 5 |
|  ***"Implementation Date"*** | Section 3.01(a) |
|  ***"Increased Primary Driver Rates"*** | Schedule 7 |
|  ***"Initial Term"*** | Section 12.01 |
|  ***"Insolvency Event"*** | Section 11.02(a)(i) |
|  ***"Interior Design"*** | Section 4.03(e)(i) |
|  ***"Invoiced Amount"*** | Schedule 7 |
|  ***"Maintenance Flights"*** | Section 3.01(d) |
|  ***"Material Breach"*** | Section 11.02(a)(ii) |
|  ***"Maximum Average Monthly Block Hour Utilization"*** | Schedule 3 |
|  ***"Maximum Average Monthly Cycle Utilization"*** | Schedule 3 |
|  ***"Minimum Average Monthly Block Hour Utilization"*** | Schedule 3 |
|  ***"Maximum Average Monthly Cycle Utilization"*** | Schedule 3 |
|  ***"MXN"*** | Schedule 8 |
| ***"[\*\*\*]"*** | [\*\*\*] |
|  ***"Penalty"*** | Schedule 7 |
|  ***"Permitted Uses"*** | Section 14.08(b) |
|  ***"Primary Driver Rates"*** | Schedule 7 |
|  ***"Primary Drivers"*** | Schedule 7 |
|  ***"Requested Plan"*** | Schedule 3 |
|  ***"Scheduled Repainting"*** | Section 4.03(e)(ii)(B) |
|  ***"Security Best Practices"*** | Section 14.07(a) |
| ***"[\*\*\*]"*** | [\*\*\*] |
| ***"[\*\*\*]"*** | [\*\*\*] |
| ***"[\*\*\*]"*** | [\*\*\*] |
|  ***"Spare Aircraft"*** | Section 3.02 |
| ***"[\*\*\*]"*** | [\*\*\*] |
|  ***"USD"*** | Schedule 10 |

---

------

**<u>EXHIBIT B</u>**

**<u>STANDARDS OF SERVICE</u>**

[\*\*\*]

------

**<u>EXHIBIT C</u>**

**<u>TRAINING</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. **<u>Customer Service</u>**. Contractor agrees that it shall train or cause to be trained to proficiency, all customer service employees of Contractor that may be associated with providing Regional Airline Services. Contractor agrees to participate in any and all special training or other programs that American provides for its customer service employees. Contractor may elect to accomplish such training through the use of a "***Train the Trainer***" concept, if Consented to by American in its sole discretion. Subject to the provisions of <u>Schedule 4</u>, Contractor's flight attendants providing Regional Airline Services shall be trained by Contractor, at Contractor's sole cost and expense, on meal and beverage service procedures for Scheduled Flights, including liquor and duty-free sales and cash handling, and will collect all on-board revenue for liquor and duty-free sales on Scheduled Flights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;II. **<u>Ground Handling</u>**. Contractor shall provide to American (or to any Person chosen by American), at Contractor's own cost and expense, all reasonably necessary training to enable American (or any Person chosen by American) to provide all ground handling and related services with respect to the operation of the Covered Aircraft for Scheduled Flights. Such training shall include cargo training and may, in American's sole discretion, be accomplished through the use of a "***Train the Trainer***" procedure.

------

**<u>EXHIBIT D</u>**

**<u>AMERICAN'S SECURITY POLICIES AND PROCEDURES</u>**

[\*\*\*]

------

**<u>EXHIBIT E</u>**

<u>STANDARDS OF USE OF AMERICAN GATES AND FACILITIES</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**I. <u>Standards</u>**. In connection with Contractor's license to use of the American Gates and Facilities, Contractor shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. comply with the provisions of any agreement or understanding governing American's or an American Affiliate's ownership, lease, sublease, use, license of the American Gates and Facilities to the extent any American Gates and Facilities are then being used by Contractor (the "***American Gates and Facilities Agreements***"; *provided* that American shall provide Contractor with prior Notice of any such agreement or understanding, or summaries of the relevant terms thereof, which Notice shall be delivered no later than ten (10) days prior to Contractor's required compliance therewith, unless American is given less than ten (10) days' Notice from any third party of such agreement or understanding, in which case American shall provide Contractor with such Notice reasonably promptly thereafter and; *provided further* that such American Gates and Facilities Agreements shall not impose material duties and obligations upon Contractor that are substantially greater than those imposed on American by agreements or understandings that American has entered into with Third Parties related to the ownership, lease, sublease, use, and/or license of the American Gates and Facilities), but excluding, in all events, any obligation to make payments thereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. not cause there to be any breaches or violations of any of the provisions of the American Gates and Facilities Agreements due to action or inaction by Contractor or any Contractor Agents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. promptly remedy any breach or violation of any provision of the American Gates and Facilities Agreements upon Notice from American to the extent caused by or resulting from any actions taken by Contractor or any Contractor Agents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. promptly observe, obey and execute the provisions of any and all present and future rules, regulations, procedures, orders, and directives issued by American attributable to any American Gates and Facilities then used by Contractor; *provided* that American shall provide Contractor with prior Notice of any such rules, regulations, procedures, orders, and directives, which Notice shall be delivered no later than ten (10) days prior to Contractor's required compliance therewith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. promptly observe, obey and execute the provisions of any and all present and future laws, rules, regulations, requirements, orders and directives promulgated by any applicable governmental authority or airport authority to the extent then applicable to Contractor's use or occupancy of such American Gates and Facilities; *provided* that American shall provide Contractor with prior Notice therewith, which Notice shall be delivered no later than ten (10) days prior to Contractor's required compliance therewith and; *provided further* that any reasonable and documented out-of-pocket costs actually incurred by Contractor in connection therewith shall be a Pass Through Cost payable in accordance with <u>Schedule 3</u>;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. procure from all applicable airport and governmental authorities all licenses, certificates, permits or other authorizations that may be necessary or required for the conduct of Contractor's operations at any such American Gates and Facilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. cooperate with American to obtain any applicable consents or approvals required with respect to Contractor's use of any such American Gates and Facilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H. conduct its operations at such American Gates and Facilities in accordance with the rules, regulations, and requirements of the applicable airport authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. with respect to American Gates and Facilities then used by Contractor or any Contractor Agent, control the conduct, demeanor and appearance of Contractor Agents so as to maintain high professional standards and to avoid disruption to or interference with the operations of American, or others, and upon objection from American or the applicable airport authority concerning the conduct, demeanor, or appearance of such person, immediately take all steps necessary to resolve such objections;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;J. keep the American Gates and Facilities then used by Contractor free from dirt, trash, debris and otherwise in a clean, neat and orderly condition at all times and not cause any damage to the American Gates and Facilities, normal wear and tear excepted; *provided* that the foregoing shall not relieve American from providing routine janitorial services with respect to the foregoing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;K. keep the American Gates and Facilities in a clean, neat and orderly condition at all times and not cause any damage to the American Gates and Facilities, normal wear and tear excepted; *provided* that the foregoing shall not relieve American from providing routine janitorial services with respect to the foregoing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;L. with respect to American Gates and Facilities then used by Contractor or Contractor Agents, conduct their operations in such manner that at no time will it do or knowingly permit to be done any act or thing upon such American Gates and Facilities that will invalidate or conflict with any fire and casualty insurance policies covering such American Gates and Facilities, or any part thereof, or which may create a hazardous condition so as to increase the risk normally attendant upon Contractor's operations contemplated hereunder, and promptly observe and comply with any and all present and future rules and regulations, requirements, orders and directions of the Fire Underwriters Association or of any other board or organization which may exercise similar functions; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;M. with respect to American Gates and Facilities then used by Contractor or Contractor Agents, as directed by American, use commercially reasonable efforts to provide any Person with access at any reasonable time, subject to applicable security requirements or restrictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N. It is intended that the standards and obligations imposed by this <u>Section I</u> shall be maintained or complied with Contractor in addition to its required compliance with any applicable laws, ordinances and regulations promulgated by any applicable airport authority or governmental authority that is currently in effect or which may be enacted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**II. Utilities, Maintenance, and Repairs.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. American shall furnish the American Gates and Facilities with utilities and services to the extent that they are furnished to American, except that American assumes no responsibility for interruption of such services for any reason whatsoever, and Contractor agrees to pay American for any extraordinary electrical, gas, water consumption or other utility or service charges related to the Contractor's use of the American Gates and Facilities at the rate payable by American for that utility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. American will be responsible for ordinary and minor repairs to, and maintenance on, the American Gates and Facilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Notwithstanding the above, Contractor shall, at its sole cost and expense, and in a manner acceptable to American, repair any damage to the American Gates and Facilities caused by any act or omission of Contractor, its officers, directors, employees, agents, customers, concessionaires, vendors, contractors, or invitees, normal wear and tear excepted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**III. Modifications and Preparations.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Contractor shall not make any modifications or alterations to the American Gates and Facilities without the express written consent of American.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. American shall be responsible for all costs associated with preparing the American Gates and Facilities for Contractor's use in the condition required by and in accordance with the requirements set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Contractor shall be responsible for all costs associated with moving its personnel and equipment or its movement of any other equipment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Upon cessation of Contractor's right to use the American Gates and Facilities for whatever reason, Contractor shall remove all of Contractor's equipment or other personal property, remove any modifications or other alterations to such American Gates and Facilities unless otherwise instructed by American in writing, and surrender such American Gates and Facilities to American in a clean, neat, and orderly condition, without any damage, normal wear and tear excepted.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**IV. Furniture/Other.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Contractor, at its sole cost, shall provide all furniture or related furnishings for use by Contractor at the American Gates and Facilities.

## Exhibit 10.25

**Exhibit 10.25.2** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

**AMENDMENT NO. 1** 

**TO** 

**<u>CAPACITY PURCHASE AGREEMENT</u>**

This Amendment No. 1 to Capacity Purchase Agreement (this "***Amendment***") is dated as of the 28th day of February, 2013, between American Airlines, Inc., a Delaware corporation (together with its successors and permitted assigns, "***American***") and Republic Airline Inc., an Indiana corporation (together with its successors and permitted assigns "***Contractor***")*.*

WHEREAS, on January 23, 2013, American and Contractor entered into a Capacity Purchase Agreement (the "***Agreement***") to establish the terms by which Contractor will provide Regional Airline Services utilizing certain regional aircraft on behalf of American;

WHEREAS, [\*\*\*];

WHEREAS, [\*\*\*];

WHEREAS, American and Contractor have agreed that the effectiveness of the Agreement, including the Amendment, continue to be subject to approval by the Bankruptcy Court under the Chapter 11 Cases (as defined in <u>Section</u> <u>13.22</u> of the Agreement); and

WHEREAS, all capitalized terms used herein shall have the meanings assigned to them in the Agreement.

NOW, THEREFORE, for and in consideration of the mutual covenants and agreements herein contained, American, on the one hand, and Contractor, on the other hand, agree to the following amendments to the Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Schedule 1 of the Agreement shall be deleted in its entirety and Schedule 1, which is attached to this
Amendment and incorporated herein by reference, shall be deemed Schedule 1 for all purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Paragraph VI. of Schedule 3 of the Agreement shall be amended and restated so that the reference [\*\*\*] shall
now be deemed a reference to [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Schedule 4 of the Agreement shall be amended and restated so as [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Schedule 4, Section 1, Paragraph U of the Agreement shall be amended and restated so as to [\*\*\*].

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Schedule 7 of the Agreement shall be amended and restated to add the following at the end of [\*\*\*] as a new
paragraph thereto:

[\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Section V of Schedule 7 shall be amended and restated to delete the first sentence thereof in its entirety and
to substitute the following sentence in lieu thereof: [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Attachment 1 to Schedule 7 shall be amended to change [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Note (c) of Attachment 1 to Schedule 7 shall be amended and restated to delete in its entirety [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. Exhibit A shall be deemed amended and restated to add the following definitions:

**"*Merger*"**shall mean [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. Section 3.02 (a) of the Agreement shall be amended and restated so that in the first sentence thereof the
reference to [\*\*\*] shall be changed to [\*\*\*]. In addition, in the last sentence thereof, the references to [\*\*\*] shall be changed to [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. Section 3.02(b) of the Agreement shall be amended and restated so that the reference to the [\*\*\*] shall be
changed to the [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. Notwithstanding anything herein to the contrary, if the terms or provisions of this Amendment conflict with any
of the terms and provisions of the Agreement, the provisions of this Amendment shall govern and control for all purposes hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. Section 13.14 of the Agreement shall be deleted in its entirety and the following shall be inserted in
substitution therefore:

**"Section 13.14 Entire Agreement; Conflicts with this Agreement.** This Agreement, when taken together with the Emergency Assistance Agreement and any amendments to this Agreement embodies the entire agreement between the Parties and shall be treated as one integrated agreement concerning the subject matter hereof and thereof and such agreements terminate and supersede all prior or contemporaneous agreements, discussions, undertakings and understandings, whether written or oral, express or implied, concerning the subject matter hereof. The effectiveness of this Agreement (including any amendment hereto) shall not be deemed a waiver by either Party of any disclosed or undisclosed breach, default, event of default or termination event under such other agreements. If any of the terms or provisions of this Agreement conflict with any terms or provisions of the Emergency Assistance Agreement, then the terms and provisions of the Emergency Assistance Agreement shall govern all matters specified in <u>Article V</u> hereof and with respect to all other matters this Agreement when taken together with any amendments to this Agreement shall govern and control for all purposes. Furthermore, the Parties agree that in the event of a conflict between <u>Article X</u> and the indemnification provisions of the Emergency Assistance Agreement, this Agreement shall control."

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. This Amendment is subject to [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. Except as amended hereby the Agreement remains in full force and effect and this Amendment shall be subject to
the terms and provisions of the Agreement and be deemed a part thereof for all purposes.

**[*Remainder of Page Intentionally Left Blank; Signature Page Follows*]** 

------

IN WITNESS WHEREOF, American and Contractor have executed this Amendment as of the date set forth above.

---

| | |
|:---|:---|
| AMERICAN AIRLINES, INC. | AMERICAN AIRLINES, INC. |
| By: | /s/ Charles J. Schubert III |
|  | Name: Charles J. Schubert III |
|  | Title: VP, AA Network Planning |
| REPUBLIC AIRLINE INC. | REPUBLIC AIRLINE INC. |
| By: | /s/ Ethan J. Blank |
|  | Name: Ethan J. Blank |
|  | Title: Vice President and General Counsel |

---

---

| | |
|:---|:---|
| Agreed and Acknowledged | Agreed and Acknowledged |
| REPUBLIC AIRWAYS HOLDINGS INC. | REPUBLIC AIRWAYS HOLDINGS INC. |
| By: | /s/ Ethan J. Blank |
| Name: | Ethan J. Blank |
| Title: | Vice President and General Counsel |

---

Signature Page — Amendment 1 to Capacity Purchase Agreement

------

**<u>SCHEDULE I</u>**

[\*\*\*]

Schedule 1 Page 1

## Exhibit 10.25

**Exhibit 10.25.3** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

**AMENDMENT NO. 2 TO** 

**<u>CAPACITY PURCHASE AGREEMENT</u>**

This Amendment No. 2 to Capacity Purchase Agreement (this "***Amendment***") is dated as of the 2<sup>nd</sup> day of September, 2016 and to be effective as of the Amendment Effective Date (as hereinafter defined), between American Airlines, Inc., a Delaware corporation (together with its successors and permitted assigns, "***American***"), and Republic Airline Inc., an Indiana corporation (together with its successors and permitted assigns, "***Contractor***;" Contractor and American may each be referred to in this Amendment as a "***Party***" and collectively as the "***Parties***").

**WHEREAS**, on January 23, 2013, American entered into that certain Capacity Purchase Agreement with Contractor (as amended, supplemented or otherwise modified from time to time in accordance with the terms thereof, the "***Capacity Purchase Agreement***") to establish the terms by which Contractor will provide Regional Airline Services (as defined in the Capacity Purchase Agreement) utilizing certain aircraft on behalf of American;

**WHEREAS**, [\*\*\*];

**WHEREAS**, US Airways, Inc. and Contractor entered into that certain Republic Jet Service Agreement, dated as of September 2, 2005 (as amended, supplemented or otherwise modified from time to time prior to the Amendment Effective Date, and together with all side letters and other instruments, agreements, documents and writings executed in connection therewith, the "***US Air JSA***") pursuant to which Contractor agreed to provide regional airline services upon the terms and conditions set forth therein;

**WHEREAS**, as of December 30, 2015, US Airways, Inc. was merged with and into and became part of American;

**WHEREAS**, the Capacity Purchase Agreement, as amended by this Amendment, shall govern the provision of Regional Airline Services by Contractor and American from and after the Amendment Effective Date;

**WHEREAS**, the Parties desire to amend the Capacity Purchase Agreement [\*\*\*];

**WHEREAS**, [\*\*\*];

**WHEREAS**, the Parties have agreed to [\*\*\*];

**WHEREAS**, this Amendment is being executed following approval by the United States Bankruptcy Court for the Southern District of New York in connection with currently pending chapter 11 cases (the "***Chapter 11 Cases***") relating to Contractor and Holdings and in accordance with the terms and conditions specified in a Letter Agreement previously executed by the Parties dated as of September 2, 2016 (the "***Letter Agreement***") and this Amendment shall become effective on the first calendar day of the first calendar month immediately following the date upon which the terms and conditions set forth in such Letter Agreement are satisfied (such date is the "***Amendment Effective Date***");

------

**WHEREAS**, it is in the best interests of the Parties hereto to further amend the Capacity Purchase Agreement to reflect the agreements set forth herein; and

**WHEREAS**, all capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to them in the Capacity Purchase Agreement.

**NOW, THEREFORE**, for and in consideration of the mutual covenants and agreements herein contained, American, on the one hand, and Contractor, on the other hand, agree to the following amendments to the Capacity Purchase Agreement:

**I.**  **<u>Amendments to Capacity Purchase Agreement</u>.** 

1. The introductory paragraph of <u>Section</u> <u>2.01</u> of the Capacity Purchase Agreement shall
be and it hereby is amended and restated in its entirety to read as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.01 Capacity Purchase**. Subject to the terms and conditions hereof, American shall purchase during the Term hereof all of the capacity of each Covered Aircraft and Contractor shall provide all of the capacity of each Covered Aircraft, during the Term hereof in accordance with the terms and conditions hereof and Contractor shall use the Covered Aircraft, solely for, or as directed by, American in connection with Regional Airline Services all in accordance with the terms and conditions hereof and, without limiting the foregoing, in accordance with the following:

2. <u>Section 3.01(a)</u> of the Capacity Purchase Agreement shall be and it hereby is amended and restated
in its entirety to read as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a) Implementation Date.** The date any aircraft described on <u>Schedule 1</u> hereof commences providing Regional Airline Services shall be deemed the date such aircraft becomes a "*Covered Aircraft*" hereunder, which also shall be the implementation date of such Covered Aircraft (the

"***Implementation Date***"). The Parties hereto agree that <u>Schedule 1</u> hereto may be amended or updated from time to time as set forth in this Agreement, [\*\*\*].

3. <u>Section 3.01(b)</u> of the Capacity Purchase Agreement shall be and it hereby is hereby amended by
adding a new sentence to the end thereof to read as follows:

[\*\*\*]

4. Section <u>3.02</u> of the Capacity Purchase Agreement shall be and it hereby is amended and
restated in its entirety to read as follows:

[\*\*\*]

5. Article III of the Capacity Purchase Agreement is hereby amended by adding a new <u>Section</u> <u>3.06</u> to the end thereof to read as follows:

[\*\*\*]

6. The third sentence of <u>Section</u> <u>4.02</u> of the Capacity Purchase Agreement shall be and it
hereby is amended and restated in its entirety to read as follows:

All Covered Aircraft shall be operated and maintained by Contractor in compliance with all laws, regulations and governmental requirements applicable to the Regional Airline Services [\*\*\*].

------

7. <u>Section 4.03(e)(ii)(A)</u> of the Capacity Purchase Agreement shall be intentionally deleted.

8. <u>Section 4.05</u> of the Capacity Purchase Agreement shall be and it hereby is amended and restated in
its entirety to read as follows:

[\*\*\*]

9. <u>Article IV</u> of the Capacity Purchase Agreement is hereby amended by adding a new <u>Section</u> <u>4.07</u> to the end thereof to read as follows:

[\*\*\*]

10. <u>Article IV</u> of the Capacity Purchase Agreement is hereby amended by adding a new <u>Section</u> <u>4.08</u> to the end thereof to read as follows:

[\*\*\*]

11. <u>Article IV</u> of the Capacity Purchase Agreement is hereby amended by adding a new <u>Section</u> <u>4.09</u> to the end thereof to read as follows:

[\*\*\*]

12. <u>Section 6.03</u> of the Capacity Purchase Agreement shall be and it hereby is amended and restated in
its entirety to read as follows:

[\*\*\*]

13. <u>Section 6.04</u> of the Capacity Purchase Agreement shall be and it hereby is amended and
restated in its entirety to read as follows:

[\*\*\*]

14. <u>Section 6.06</u> of the Capacity Purchase Agreement shall be and it hereby is amended and restated in
its entirety to read as follows:

[\*\*\*]

15. <u>Section 6.08</u> of the Capacity Purchase Agreement shall be and it hereby is amended and restated in
its entirety to read as follows:

[\*\*\*]

16. <u>Article VI</u> of the Capacity Purchase Agreement is hereby amended by adding a new <u>Section</u> <u>6.09</u> to the end thereof to read as follows:

[\*\*\*]

17. <u>Article VI</u> of the Capacity Purchase Agreement is hereby amended by adding a new <u>Section</u> <u>6.10</u> to the end thereof to read as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.10 Slots**.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a) Slots Generally**. Contractor or an Affiliate of Contractor (A) is the holder of [\*\*\*] take-off and landing slots at [\*\*\*] and (B) has been granted [\*\*\*].

18. <u>Section 11.01</u> of the Capacity Purchase Agreement shall be and it hereby is amended and restated in
its entirety to read as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.01 **Term**. This Agreement shall be effective as of the Effective Date and (unless earlier terminated as provided herein) shall continue until [\*\*\*] (the "***Term***"); *provided* that with respect to each Covered Aircraft, each Covered Aircraft's term shall commence on [\*\*\*] and, [\*\*\*] shall continue until the specified dates set forth on <u>Schedule 1</u> under the heading "***Aircraft Term***" as such Aircraft Term may be extended as provided herein (each an "***Aircraft Term***"). [\*\*\*].

19. The first sentence of <u>Section</u> <u>11.02</u> of the Capacity Purchase Agreement shall be and
it hereby is amended and restated in its entirety to read as follows:

This Agreement may be terminated or certain Covered Aircraft may be Withdrawn during the Term hereof pursuant to this <u>Section</u> <u>11.02</u>.

20. <u>Section 11.02(d)(iii)</u> of the Capacity Purchase Agreement shall be and it hereby is amended and
restated in its entirety to read as follows:

[\*\*\*]

21. <u>Section 11.02(d)(iv)</u> of the Capacity Purchase Agreement shall be and it hereby is amended and
restated in its entirety to read as follows:

[\*\*\*]

22. <u>Section 13.01</u> of the Capacity Purchase Agreement shall be and it hereby is amended and restated in
its entirety to read as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.01 Notices**. All Notices, Consents, or amendments under this Agreement shall be in writing in English and shall be deemed given to American or Contractor, as the case may be, upon (a) confirmation of receipt of a delivery in person; (b) a transmitter's confirmation of a receipt of a facsimile or e mail transmission (but only if followed by confirmed delivery the following Business Day (i) by a nationally recognized overnight courier or (ii) by hand); or (c) confirmed delivery by a nationally recognized overnight courier, to the Parties at the addresses below:

If to American, to:

American Airlines, Inc.

4333 Amon Carter Blvd.

Fort Worth, TX 76155

Attn: Director of Regional Networks

Attn: Managing Director, Strategic and Operations Planning, Regional Carriers

[\*\*\*]

with a copy to:

American Airlines, Inc.

4333 Amon Carter Blvd.

Mail Drop 5675

Fort Worth, TX 76155

Attn: VP and Deputy General Counsel

[\*\*\*]

------

If to Contractor, to:

Republic Airline Inc.

8909 Purdue Road

Suite 300

Indianapolis, IN 46268

Attention: Chief Financial Officer

[\*\*\*]

with a copy to:

Republic Airline Inc.

8909 Purdue Road

Suite 300

Indianapolis, IN 46268

Attention: Vice President, General Counsel

[\*\*\*]

And if to American pursuant to <u>Section</u> <u>13.06(b)</u>, a copy of such Notice shall also be provided to:

American Airlines, Inc.

4333 Amon Carter Blvd.

Mail Drop 5675

Fort Worth, TX 76155

Attn: Vice President, Corporate Communications

[\*\*\*]

or, in each case, to such other address as a Party may have furnished to the other Party by a Notice in accordance with this <u>Section</u> <u>13.01</u>.

Where in this Agreement the words "***request,***" "***directed,***" "***inform,***" "***furnish***" or "***approved***" or similar phrases, expressions or derivatives thereof are used rather than the terms Notice or Consent, such instruction to receive such communication shall be sufficient if done by email (and not in a second writing) (each a "***Communication***") so long as it is provided (i) in accordance with past practices or, if there are no past practices, in accordance with customary industry practices; (ii) the Person providing the Communication reasonably believes that the Person receiving such Communication is authorized to receive such Communication; and (iii) the Person receiving such Communication reasonably believes the Person providing such Communication has the apparent or actual authority to undertake the action in question.

23. <u>Section 13.07(b)</u> of the Capacity Purchase Agreement shall be and it hereby is intentionally
deleted.

24. <u>Section 13.08(a)</u> of the Capacity Purchase Agreement is hereby amended by adding a new sentence at
the end thereof to read as follows:

[\*\*\*]

------

25. The first sentence of <u>Section</u> <u>13.23</u> of the Capacity Purchase Agreement shall be and
it hereby is amended and restated in its entirety to read as follows:

Except (a) for the covenants and agreements in <u>Article X</u>, <u>Article XII</u>, <u>Sections 13.01</u>, <u>13.06</u>, <u>13.08</u> and <u>13.20</u>, and <u>Exhibit D</u>, and (b) as set forth in the following sentence, all representations, warranties, covenants and agreements of the Parties set forth herein shall terminate and expire, and shall cease to be in full force and effect following the Term.

26. <u>Schedule 1</u> of the Capacity Purchase Agreement (Covered Aircraft) shall be replaced in its entirety with <u>Schedule 1</u> attached hereto.

27. The Capacity Purchase Agreement is amended by adding a new <u>Schedule 1(a)</u> as attached hereto.

28. <u>Schedule 2</u> of the Capacity Purchase Agreement (American Gates and Facilities) shall be replaced in its
entirety with <u>Schedule 2</u> attached hereto.

29. <u>Schedule 3</u> of the Capacity Purchase Agreement ([\*\*\*]) shall be replaced in its entirety with <u>Schedule 3</u> attached hereto.

30. <u>Section I(F)</u> of <u>Schedule 4</u> of the Capacity Purchase Agreement ([\*\*\*]) shall be and it hereby is
amended and restated in its entirety to read as follows:

[\*\*\*]

31. <u>Section I(G)</u> of <u>Schedule 4</u> of the Capacity Purchase Agreement ([\*\*\*]) shall be and it hereby is
amended and restated in its entirety to read as follows:

[\*\*\*]

32. <u>Section I(H)</u> of <u>Schedule 4</u> of the Capacity Purchase Agreement ([\*\*\*]) shall be and it hereby is
amended and restated in its entirety to read as follows:

[\*\*\*]

33. <u>Section I(I)</u> of <u>Schedule 4</u> of the Capacity Purchase Agreement ([\*\*\*]) shall be and it hereby is
amended and restated in its entirety to read as follows:

[\*\*\*]

34. <u>Section I(J)</u> of <u>Schedule 4</u> of the Capacity Purchase Agreement ([\*\*\*]) shall be and it hereby is
amended and restated in its entirety to read as follows:

[\*\*\*]

35. <u>Section I(K)</u> of <u>Schedule 4</u> of the Capacity Purchase Agreement ([\*\*\*]) shall be intentionally
deleted.

36. <u>Section I(S)</u> of <u>Schedule 4</u> of the Capacity Purchase Agreement ([\*\*\*]) shall be and it hereby is
amended and restated in its entirety to read as follows:

[\*\*\*]

37. <u>Section I(T)</u> of <u>Schedule 4</u> of the Capacity Purchase Agreement ([\*\*\*]) shall be and it hereby is
amended and restated in its entirety to read as follows:

[\*\*\*]

------

38. <u>Section I(U)</u> of <u>Schedule 4</u> of the Capacity Purchase Agreement ([\*\*\*]) shall be and it hereby is
amended and restated in its entirety to read as follows:

[\*\*\*]

39. The last full paragraph of <u>Section I</u> of <u>Schedule 4</u> is hereby amended by replacing the references
to " <u>Section</u> <u>13.01</u> " in such paragraph to " <u>Section</u> <u>12.01</u>."

40. <u>Schedule 4</u> of the Capacity Purchase Agreement ([\*\*\*]) is hereby amended by adding a new <u>Section II(Q)</u> to the end thereof to read as follows:

[\*\*\*]

41. <u>Schedule 4</u> of the Capacity Purchase Agreement ([\*\*\*]) is hereby amended by adding a new <u>Section II(R)</u> to the end thereof to read as follows:

[\*\*\*]

42. <u>Section III(K)</u> of Schedule 4 of the Capacity Purchase Agreement ([\*\*\*]) shall be and it hereby is
amended and restated in its entirety to read as follows:

[\*\*\*]

43. <u>Schedule 4</u> of the Capacity Purchase Agreement ([\*\*\*]) is hereby amended by adding a new <u>Section III(S)</u> to the end thereof to read as follows:

[\*\*\*]

44. <u>Section IV</u> of <u>Schedule 4</u> of the Capacity Purchase Agreement ([\*\*\*]) shall be and it hereby is
amended and restated in its entirety to read as follows:

[\*\*\*]

45. <u>Schedule 4</u> of the Capacity Purchase Agreement ([\*\*\*]) is hereby amended by adding a new <u>Annex I</u> as attached hereto.

46. <u>Schedule 5</u> of the Capacity Purchase Agreement ([\*\*\*]) shall be replaced in its entirety with <u>Schedule 5</u> attached hereto.

47. <u>Schedule 7</u> of the Capacity Purchase Agreement ([\*\*\*]) shall be replaced in its entirety with <u>Schedule 7</u> attached hereto.

48. <u>Schedule 9</u> of the Capacity Purchase Agreement ([\*\*\*]) shall be replaced in its entirety with <u>Schedule 9</u> attached hereto <u>.</u> 

49. <u>Schedule 10</u> of the Capacity Purchase Agreement ([\*\*\*]) shall be replaced in its entirety with <u>Schedule 10</u> attached hereto.

50. <u>Schedule 11</u> of the Capacity Purchase Agreement ([\*\*\*]) shall be replaced in its entirety with <u>Schedule 11</u> attached hereto.

51. <u>Schedule 12</u> of the Capacity Purchase Agreement ([\*\*\*]) shall be replaced in its entirety with <u>Schedule 12</u> attached hereto.

------

52. The Capacity Purchase Agreement is amended by adding a new <u>Schedule 14</u> ([\*\*\*]) as attached hereto.

53. The Capacity Purchase Agreement is amended by adding a new <u>Schedule 15</u> ([\*\*\*]) as attached hereto.

54. The following definitions in <u>Exhibit A</u> of the Capacity Purchase Agreement (Definitions) shall be and
they hereby are amended and restated in their entirety to read as follows:

"***Affiliate***" shall mean [\*\*\*]

"***Alternative Hubs***" shall mean [\*\*\*].

"***American Data***" shall mean all data or information, in any form or format, including [\*\*\*], but excluding any data or information that is [\*\*\*]. American Data includes [\*\*\*]

"***American Indemnified Parties***" (and individually, each an "***American Indemnified Party***") shall mean [\*\*\*].

"***American Systems***" (and individually, each an "***American System***") shall mean information systems, including [\*\*\*].

[\*\*\*]

"***Hub***" shall mean the airport at which the Covered Aircraft are based, which shall initially be [\*\*\*], or an Alternative Hub if established as a Hub pursuant to <u>Section</u> <u>2.01(b)</u>.

"***Marks***" shall mean any trademark, trade name, trade dress, service mark, logo, domain name, or other indicia of ownership owned or used by [\*\*\*].

55. <u>Exhibit A</u> of the Capacity Purchase Agreement (Definitions) is hereby amended by adding the following new
definitions in the appropriate alphabetical order:

[\*\*\*]

"***Appropriate Aircraft Condition***" shall mean, [\*\*\*].

[\*\*\*]

[\*\*\*]

[\*\*\*]

"***Covered Aircraft***" shall mean, [\*\*\*].

[\*\*\*]

[\*\*\*]

[\*\*\*]

[\*\*\*]

"***EAS Program***" shall mean an Essential Air Service program administered by the DOT.

------

[\*\*\*]

[\*\*\*]

[\*\*\*]

[\*\*\*]

[\*\*\*]

"***Lien***" shall mean any mortgage, pledge, security interest, license, lien (statutory or otherwise), charge, encumbrance, hypothecation, or other arrangement having the practical effect of the foregoing or any assignment, deposit arrangement, preference, priority or other security agreement or preferential arrangement of any kind or nature whatsoever (including any conditional sale or other title retention agreement and any capital lease having the same economic effect as any of the foregoing).

[\*\*\*]

[\*\*\*]

"***Minimum Equipment List***" shall mean a list which provides, [\*\*\*].

"***Nonessential Equipment and Furnishings List***" shall mean a list which provides, [\*\*\*].

[\*\*\*]

[\*\*\*]

[\*\*\*]

[\*\*\*]

[\*\*\*]

[\*\*\*]

[\*\*\*]

"***Related Agreement***" shall mean [\*\*\*].

[\*\*\*]

[\*\*\*]

[\*\*\*]

[\*\*\*]

56. <u>Exhibit A</u> of the Capacity Purchase Agreement (Definitions) is hereby amended by deleting the definitions
of the following terms from such Exhibit: "  ***AADAMS,***" "  ***Air Time,***" "  ***AMR,***" "  ***Taxi Fuel Burn,***" and "  ***Term.*** "

------

57. The defined term "  ***Initial Term***" as used throughout the Capacity Purchase Agreement
shall be replaced throughout with the term "  ***Aircraft Term*** ."

58. [\*\*\*]

59. <u>Exhibit B</u> of the Capacity Purchase Agreement (Standards of Service) is hereby amended by adding a new
Section VI at the end thereof to read as follows:

[\*\*\*]

60. <u>Exhibit B</u> of the Capacity Purchase Agreement (Standards of Service) is hereby amended by adding a new <u>Schedule 1</u> and <u>Schedule 2</u> as attached hereto.

61. <u>Exhibit D</u> of the Capacity Purchase Agreement (American's Security Policies and Procedures) shall be
replaced in its entirety with <u>Exhibit D</u> attached hereto.

62. The Capacity Purchase Agreement is amended by adding a new <u>Exhibit F</u> (Crew Forecast Template) as
attached hereto.

**II.**  **<u>Effectiveness and Waiver</u>** . Contractor and American hereby acknowledge and agree that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Parties hereto recognize that the Amendment Effective Date is subject to the satisfaction of certain
conditions as set forth in the Letter Agreement, including the entry of an Approval Order (as defined in the Letter Agreement) in the Chapter 11 Cases.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. [\*\*\*]

**III.**  **<u>Representations and Warranties</u>** . To induce American to enter into this Amendment, Contractor
hereby represents and warrants to the American as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. After giving effect to the amendments herein, each representation and warranty of Contractor contained in the
Capacity Purchase Agreement [\*\*\*] is true and correct in all material respects on the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Neither the execution or delivery of this Amendment nor the performance by Contractor of the transactions
contemplated hereby will (i) violate, conflict with, or constitute a default under any of the terms of Contractor's certificate of incorporation, by-laws, or any provision of, or result in the
acceleration of any obligation under, any material contract or obligation to which Contractor is a party; (ii) result in the creation or imposition of Liens in favor of any third person or entity; (iii) violate any law, statute, judgment,
decree, order, rule or regulation of any Governmental Authority; (iv) constitute any event which, after Notice or lapse of time or both, would result in such violation, conflict, default, acceleration or creation or imposition of Liens; or (v)
[\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. [\*\*\*]

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Contractor is in compliance, in all material respects, with all laws, rules, requirements and regulations of
Governmental Authorities, any orders issued by the FAA, DOT or any other Governmental Authority [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. [\*\*\*]

**IV. <u>Governing Law</u>**. This Amendment shall be governed by and construed in accordance with the laws of the State of New York (excluding New York conflict of laws principles that might call for the application of the law of another jurisdiction) as to all matters, including matters of validity, construction, effect, performance and remedies.

**V. <u>Jurisdiction; Venue; Waiver of Jury Trial</u>**. Each Party irrevocably submits to the exclusive jurisdiction of the United States District Court for the Southern District of New York and, if such court does not have jurisdiction, of the courts of the State of New York sitting in the City of New York for the purposes of any suit, action or other proceeding arising out of this Amendment or the subject matter hereof brought by the other Party. To the extent permitted by applicable laws, rules or regulations of a Governmental Authority, each Party waives and agrees not to assert, by way of motion, as a defense or otherwise, in any such suit, action or proceeding, any claim (a) that it is not subject to the jurisdiction of the above-named courts; (b) that the suit, action or proceeding is brought in an inconvenient forum; or (c) that the venue of the suit, action or proceeding is improper. Each Party further waives any right to a trial by jury.

**VI. <u>Counterparts</u>**. This Amendment may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. This Amendment may be executed by facsimile signature or portable document format (pdf).

**VII. <u>Amendment</u>**. Except as amended and modified hereby, any and all of the terms and provisions of the Capacity Purchase Agreement shall remain in full force and effect and are hereby in all respects ratified and confirmed by Contractor. Contractor hereby agrees that the amendments and modifications herein contained shall in no manner affect or impair the liabilities, duties and obligations of Contractor under the Capacity Purchase Agreement. Additionally, with respect to Regional Airline Services provided by Contractor after the date hereof, the US Air JSA shall have no further force and effect. Each reference in the Capacity Purchase Agreement to "this Agreement," "hereunder," "hereof," "herein" or words of like import, and each reference in the Capacity Purchase Agreement or other agreements, documents or other instruments executed and delivered pursuant to the Capacity Purchase Agreement to the "Capacity Purchase Agreement", shall mean and be a reference to the Capacity Purchase Agreement as amended by this Amendment.

[***Remainder of Page Intentionally Left Blank; Signature Page Follows***]

------

**IN WITNESS WHEREOF**, American and Contractor have executed this Amendment as of the date first set forth above.

---

| | |
|:---|:---|
| **AMERICAN AIRLINES, INC.** | **AMERICAN AIRLINES, INC.** |
| By: | /s/ Kenji Hashimoto |
| Name: Kenji Hashimoto | Name: Kenji Hashimoto |
| Title: Senior Vice President, Regional Carriers | Title: Senior Vice President, Regional Carriers |
| **REPUBLIC AIRLINE INC.** | **REPUBLIC AIRLINE INC.** |
| By: | /s/ Bryan K. Bedford |
| Name: Bryan K. Bedford | Name: Bryan K. Bedford |
| Title: President and Chief Executive Officer | Title: President and Chief Executive Officer |

---

***Signature Page to Amendment No. 2 to Capacity Purchase Agreement***

------

**<u>SCHEDULE 1</u>**

[\*\*\*]

Schedule 1 - Page 1

------

**<u>SCHEDULE 1(a)</u>**

[\*\*\*]

Schedule 1 - Page 1

------

**<u>SCHEDULE 2</u>**

[\*\*\*]

Schedule 2 - Page 1

------

**<u>SCHEDULE 3</u>**

[\*\*\*]

---

| | |
|:---|:---|
| **Schedule 3** | Page 1 |

---

------

***ANNEX I TO SCHEDULE 4***

[\*\*\*]

Schedule 4 - Annex 1

------

**<u>SCHEDULE 5</u>**

[\*\*\*]

Schedule 5 - Page 1

------

**<u>SCHEDULE 7</u>**

[\*\*\*]

Schedule 7 - Page 1

------

**<u>SCHEDULE 9</u>**

[\*\*\*]

Schedule 9 - Page 1

------

**<u>SCHEDULE 10</u>**

[\*\*\*]

Schedule 10 - Page 1

------

**<u>SCHEDULE 11</u>**

[\*\*\*]

Schedule 11 - Page 1

------

**<u>SCHEDULE 12</u>**

[\*\*\*]

Schedule 12 - Page 1

------

**SCHEDULE 14** 

**[\*\*\*]** 

Schedule 14 - Page 1

------

**<u>SCHEDULE 15</u>**

[\*\*\*]

Schedule 15 - Page 1

------

***SCHEDULE 1 TO EXHIBIT B***

[\*\*\*]

Exhibit B - Schedule 1

------

***SCHEDULE 2 TO EXHIBIT B***

[\*\*\*]

Exhibit B - Schedule 2

------

**<u>EXHIBIT D</u>**

**[\*\*\*]** 

Exhibit D - Page 1

------

**<u>EXHIBIT F</u>**

**[\*\*\*]** 

Exhibit F - Page 1

## Exhibit 10.25

**Exhibit 10.25.4** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.**![LOGO](g944307g0812215407782.jpg)

October 12, 2017

***<u>Via E-mail and FedEx</u>***

Republic Airline Inc.

8909 Purdue Road Suite 300

Indianapolis, IN 46268

Attention: Chief Financial Officer

[\*\*\*]

Ladies and Gentlemen:

On January 23, 2013, Republic Airline Inc., an Indiana corporation ***("Contractor"),*** and American Airlines, Inc., a Delaware corporation ***("American"),*** entered into that certain Capacity Purchase Agreement (as amended by that certain Amendment No. 1, dated as of February 28, 2013, that certain Amendment No. 2, dated as of September 2, 2016, and as may be further amended, supplemented or otherwise modified from time to time in accordance with the terms thereof, collectively when taken together, the ***"Capacity Purchase Agreement")****.* All capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to them in the Capacity Purchase Agreement.

The Parties desire to amend the Capacity Purchase Agreement to adopt the amendments as set forth in this letter (this ***"Amendment No. 3"****).* ****The Parties acknowledge and agree that it is in their best interests to amend the Capacity Purchase Agreement to reflect the terms set forth herein. Nothing contained herein shall be deemed to impact or affect any of the other Related Agreements, [\*\*\*] which shall continue to be in full force and effect.

Therefore, for and in consideration of the mutual covenants and agreements herein contained, and contained in the Capacity Purchase Agreement, American, on the one hand, and Contractor, on the other hand, agree to the following amendment to the Capacity Purchase Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Amendment to Capacity Purchase Agreement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>Schedule 4</u> ([\*\*\*]) of the Capacity Purchase Agreement is hereby amended by adding a new <u>Section II(S)</u> to the end thereof to read as follows:

[\*\*\*]

------

![LOGO](g944307g0812215407782.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. This Amendment No. 3 shall become effective as of the date hereof upon satisfaction of all of the
following conditions precedent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Receipt by American of each of the following, in form and substance reasonably satisfactory to American:
(i) a copy of this Amendment No. 3, duly executed and delivered by Contractor; and (ii) any other documents or agreements reasonably requested by American in connection with the transactions contemplated by this Amendment No. 3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Except as amended and modified hereby, any and all of the terms and provisions of the Capacity Purchase
Agreement shall remain in full force and effect and are hereby in all respects ratified and confirmed by Contractor. Contractor hereby agrees that the amendments and modifications herein contained shall in no manner affect or impair the liabilities,
duties and obligations of Contractor under the Capacity Purchase Agreement. Each reference in the Capacity Purchase Agreement to "this Agreement," "hereunder," "hereof," "herein" or words of like import, and
each reference in the Capacity Purchase Agreement or other agreements, documents or other instruments executed and delivered pursuant to the Capacity Purchase Agreement to the "Capacity Purchase Agreement", shall mean and be a reference to
the Capacity Purchase Agreement as amended by this Amendment No. 3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. THIS AMENDMENT NO. 3, THE CAPACITY PURCHASE AGREEMENT, AND THE OTHER DOCUMENTS EXECUTED IN CONNECTION THEREWITH
REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

***[Remainder of Page Intentionally Left Blank; Signature Page Follows]***

------

![LOGO](g944307g0812215407782.jpg)

If you are in agreement with the foregoing, please sign where indicated below and return a signed copy of this Amendment No. 3 to us at the address above.

---

| | | |
|:---|:---|:---|
| Very truly yours, | Very truly yours, | Very truly yours, |
| AMERICAN AIRLINES, INC. | AMERICAN AIRLINES, INC. | AMERICAN AIRLINES, INC. |
| By: | /s/ Keven Doeksen | /s/ Keven Doeksen |
|  | Name: | Kevin Doeksen |
|  | Title: | Managing Director – Strategic & Operations Planning |
| Acknowledged and Agreed: | Acknowledged and Agreed: | Acknowledged and Agreed: |
| REPUBLIC AIRLINE INC. | REPUBLIC AIRLINE INC. | REPUBLIC AIRLINE INC. |
| By: | /s/ Joseph P. Allman | /s/ Joseph P. Allman |
|  | Name: | Joseph P. Allman |
|  | Title: | SVP, CFO |
| Acknowledged and Agreed: | Acknowledged and Agreed: | Acknowledged and Agreed: |
| REPUBLIC AIRWAYS HOLDINGS INC. | REPUBLIC AIRWAYS HOLDINGS INC. | REPUBLIC AIRWAYS HOLDINGS INC. |
| By: | /s/ Joseph P. Allman | /s/ Joseph P. Allman |
|  | Name: | Joseph P. Allman |
|  | Title: | SVP, CFO |
| cc: | Republic Airline Inc. | Republic Airline Inc. |
|  | 8909 Purdue Road Suite 300 | 8909 Purdue Road Suite 300 |
|  | Indianapolis, IN 46268 | Indianapolis, IN 46268 |
|  | Attention: Vice President, General Counsel | Attention: Vice President, General Counsel |
|  | [\*\*\*] |  |

---

## Exhibit 10.25

**Exhibit 10.25.5** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

**AMENDMENT NO. 4 TO** 

**<u>CAPACITY PURCHASE AGREEMENT</u>**

This Amendment No. 4 to Capacity Purchase Agreement (this "***Amendment***") is dated as of November 3, 2017, between American Airlines, Inc., a Delaware corporation (together with its successors and permitted assigns, "***American***"), ****and Republic Airline Inc., an Indiana corporation (together with its successors and permitted assigns, "***Contractor***;" ****Contractor ****and American may each be referred to in this Amendment as a "***Party***" ****and collectively as the "***Parties***").

WHEREAS, on January 23, 2013, American entered into that certain Capacity Purchase Agreement with Contractor (as amended, supplemented or otherwise modified from time to time in accordance with the terms thereof, the "Capacity Purchase Agreement") to establish the terms by which Contractor will provide Regional Airline Services (as defined in the Capacity Purchase Agreement) utilizing certain aircraft on behalf of American;

WHEREAS, on February 28, 2013, American entered into that certain Amendment No. 1 to Capacity Purchase Agreement with Contractor;

WHEREAS, on September 2, 2016, American entered into that certain Amendment No. 2 to Capacity Purchase Agreement with Contractor;

WHEREAS, on October 12, 2017, American entered into that certain Amendment No. 3 to Capacity Purchase Agreement with Contractor;

WHEREAS, the Parties desire to amend the Capacity Purchase Agreement to, among other things, [\*\*\*];

WHEREAS, it is in the best interests of the Parties hereto to further amend the Capacity Purchase Agreement to reflect the agreements set forth herein; and

WHEREAS, all capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to them in the Capacity Purchase Agreement.

NOW, THEREFORE, for and in consideration of the mutual covenants and agreements herein contained, American, on the one hand, and Contractor, on the other hand, agree to the following amendments to the Capacity Purchase Agreement:

**I.** **Amendments to Capacity Purchase Agreement.** 

1. <u>Section 13.01</u> of the Capacity Purchase Agreement shall be and it hereby is amended and restated in its
entirety to read as follows:

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.01 Notices**. All Notices, Consents, or amendments under this Agreement shall be in writing in English and shall be deemed given to American or Contractor, as the case may be, upon (a) confirmation of receipt of a delivery in person; (b) a transmitter's confirmation of a receipt of a facsimile or e mail transmission (but only if followed by confirmed delivery the following Business Day (i) by a nationally recognized overnight courier or (ii) by hand); or (c) confirmed delivery by a nationally recognized overnight courier, to the Parties at the addresses below:

**<u>If to American, to</u>:** 

Attn: Managing Director - American Eagle

Strategy and Operations

American Airlines, Inc.

4333 Amon Carter Blvd.

Fort Worth, TX 76155

[\*\*\*]

with copies delivered at the same address to the attention of:

Senior Vice President, Regional Carriers

[\*\*\*]

and

VP and Deputy General Counsel

[\*\*\*]

If to Contractor, to:

Republic Airline Inc.

8909 Purdue Road

Suite 300

Indianapolis, IN 46268

Attention: Chief Financial Officer

[\*\*\*]

with a copy to:

Republic Airline Inc.

8909 Purdue Road

Suite 300

Indianapolis, IN 46268

Attention: Vice President, General Counsel

[\*\*\*]

------

And if to American pursuant to <u>Section</u> <u>13.06(b),</u> a copy of such Notice shall also be provided to:

Attn: Corporate Communications Department

American Airlines, Inc.

4333 Amon Carter Blvd.

Mail Drop 5675

Fort Worth, TX 76155

[\*\*\*]

and

Attn: Managing Director - American Eagle

Strategy and Operations

American Airlines, Inc.

4333 Amon Carter Blvd.

Fort Worth, TX 76155

[\*\*\*]

or, in each case, to such other address as a Party may have furnished to the other Party by a Notice in accordance with this <u>Section</u> <u>13.01</u>.

Where in this Agreement the words "***request****,*" "***directed****,*" ****"***inform****,*" "***furnish***" ****or "***approved***" ****or similar· phrases, expressions or derivatives thereof are used rather than the terms Notice or Consent, such instruction to receive such communication shall be sufficient if done by email (and not in a second writing) (each a "***Communication***") so long as it is provided (i) in accordance with past practices or, if there are no past practices, in accordance with customary industry practices; (ii) the Person providing the Communication reasonably believes that the Person receiving such Communication is authorized to receive such Communication; and (iii) the Person receiving such Communication reasonably believes the Person providing such Communication has the apparent or actual authority to undertake the action in question.

2. <u>Schedule 1(a)</u> of the Capacity Purchase Agreement (Covered Aircraft) shall be replaced in its entirety
with <u>Schedule 1(a)</u> attached hereto.

3. [\*\*\*]

**II.**  **<u>Acknowledgment</u>** 

[\*\*\*]

**III.**  **<u>Miscellaneous</u>** 

1. This Amendment shall become effective upon satisfaction of all of the following conditions precedent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Receipt by American of each of the following, in form and substance reasonably satisfactory to American: (A) a copy of this Amendment, duly executed and delivered by Contractor; and (B) any other documents or agreements reasonably requested by American in connection with the transactions contemplated by this Amendment.

------

2. Except as amended and modified hereby, any and all of the terms and provisions of the Capacity Purchase
Agreement shall remain in full force and effect and are hereby in all respects ratified and confirmed by Contractor. Contractor hereby agrees that the amendments and modifications herein contained shall in no manner affect or impair the liabilities,
duties and obligations of Contractor under the Capacity Purchase Agreement. Each reference in the Capacity Purchase Agreement to "this Agreement," "hereunder," "hereof," "herein" or words of like import, and
each reference in the Capacity Purchase Agreement or other agreements, documents or other instruments executed and delivered pursuant to the Capacity Purchase Agreement to the "Capacity Purchase Agreement", shall mean and be a reference to
the Capacity Purchase Agreement as amended by this Amendment.

3. THIS AMENDMENT, THE CAPACITY PURCHASE AGREEMENT, AND THE OTHER DOCUMENTS EXECUTED IN CONNECTION THEREWITH
REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

***[Remainder of Page Intentionally Left Blank; Signature Page Follows]***

------

IN WITNESS WHEREOF, American and Contractor have executed this Amendment as of the date first set forth above.

---

| | |
|:---|:---|
| **AMERICAN AIRLINES, INC.** | **AMERICAN AIRLINES, INC.** |
| By: | /s/ Devon May |
|  | Name: Devon May |
|  | Title: Senior Vice President, Network Strategy |
| **REPUBLIC AIRLINE INC.** | **REPUBLIC AIRLINE INC.** |
| By: | /s/ Joseph P. Allman |
|  | Name: Joseph P. Allman |
|  | Title: Senior Vice President and Chief Financial |
|  | Officer |

---

***Signature Page to Amendment No. 4 to Capacity Purchase Agreement***

------

**<u>SCHEDULE 1(A)</u>**

[\*\*\*]

## Exhibit 10.25

**Exhibit 10.25.6** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

December 15, 2017

***<u>Via E-mail and FedEx</u>***

Republic Airline Inc. ("**Republic**")

Republic Airways Holdings Inc.

8909 Purdue Road

Suite 300

Indianapolis, IN 46268

Attention: Chief Financial Officer

[\*\*\*]

Ladies and Gentlemen:

Reference is made to that certain Capacity Purchase Agreement, dated as of January 23, 2013, between American Airlines, Inc. ("***American***") and Republic (as amended, supplemented or otherwise modified from time to time in accordance with the terms thereof, the "***Capacity Purchase Agreement***"). Capitalized terms used but not defined herein have the meanings ascribed to them in the Capacity Purchase Agreement. The Parties desire to amend the Capacity Purchase Agreement to add [\*\*\*]for the period [\*\*\*], all as set forth in this amendment (this "***Amendment***").

Therefore, for and in consideration of the mutual covenants and agreements herein contained, and contained in the Capacity Purchase Agreement, American, on the one hand, and Contractor, on the other hand, agree to the following amendments to the Capacity Purchase Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Amendment to Capacity Purchase Agreement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>Section 3.02</u> of the Capacity Purchase Agreement shall be and it hereby is amended to add the
following at the end of the first sentence thereof:

; *provided* that, [\*\*\*] Spare Aircraft [\*\*\*], Contractor shall [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>General</u>. The Parties acknowledge and agree that the [\*\*\*] Spare Aircraft [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Certain Representations and Warranties</u>. The Parties hereby acknowledge and represent to each other that
after giving effect to the terms hereof, each representation and warranty of Contractor contained in the Capacity Purchase Agreement [\*\*\*] is true and correct in all material respects on the date hereof.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Miscellaneous</u>. This Amendment constitutes the entire agreement of the Parties with respect to the
subject matter hereof and there are no other terms, obligations, covenants, representations, statements or conditions, oral or otherwise, of any kind whatsoever with respect to the subject matter hereof. This Amendment shall extend to and bind the
successors and assigns of the respective Parties hereto. Each Party shall take all reasonable commercial actions in order to effectuate the intent of this Amendment.

***[Remainder of Page Intentionally Left Blank; Signature Page Follows]***

------

If you are in agreement with the foregoing, please sign where indicated below and return a signed copy of this Amendment to us at the address above.

---

| | |
|:---|:---|
| Very truly yours, | Very truly yours, |
| AMERICAN AIRLINES, INC. | AMERICAN AIRLINES, INC. |
| By: | /s/ Kevin Doeksen |
| Name: Kevin Doeksen | Name: Kevin Doeksen |
| Title: Managing Director, American Eagle Strategy and Operations | Title: Managing Director, American Eagle Strategy and Operations |
| Acknowledged and Agreed: | Acknowledged and Agreed: |
| REPUBLIC AIRLINE INC. | REPUBLIC AIRLINE INC. |
| By: | /s/ Paul Kinstedt |
| Name: Paul Kinstedt | Name: Paul Kinstedt |
| Title: SVP Operations / COO | Title: SVP Operations / COO |
| Acknowledged and Agreed: | Acknowledged and Agreed: |
| REPUBLIC AIRWAYS HOLDINGS INC. | REPUBLIC AIRWAYS HOLDINGS INC. |
| By: | /s/ Paul Kinstedt |
| Name: Paul Kinstedt | Name: Paul Kinstedt |
| Title: SVP Operations / COO | Title: SVP Operations / COO |

---

cc: Republic Airline Inc.

8909 Purdue Road, Suite 300

Indianapolis, IN 46268

Attention: Vice President, General Counsel

[\*\*\*]

***Signature Page to Amendment No. 5***

## Exhibit 10.25

**Exhibit 10.25.7** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

February 23, 2018

***<u>Via E-mail and FedEx</u>***

Republic Airline Inc. ("***Republic***")

Republic Airways Holdings Inc.

8909 Purdue Road

Suite 300

Indianapolis, IN 46268

Attention: Chief Financial Officer

[\*\*\*]

Ladies and Gentlemen:

Reference is made to that certain Capacity Purchase Agreement, dated as of January 23, 2013, between American Airlines, Inc. ("***American***") and Republic (as amended by that certain Amendment No. 1 dated as of February 28, 2013, Amendment No. 2 dated as of September 2, 2016 (as such Amendment No. 2 was amended by that certain Letter Agreement dated as of October 11, 2016), Amendment No. 3 dated as of October 12, 2017, Amendment No. 4 dated as of November 3, 2017 and Amendment No. 5 dated as of December 15, 2017, and as may be further amended, supplemented or otherwise modified from time to time in accordance with the terms thereof, the "***Capacity Purchase Agreement***"). Capitalized terms used but not defined herein have the meanings ascribed to them in the Capacity Purchase Agreement.

The Parties desire to amend the Capacity Purchase Agreement to [\*\*\*], all as set forth in this amendment (this "***Amendment***").

Therefore, for and in consideration of the mutual covenants and agreements herein contained, and contained in the Capacity Purchase Agreement, American, on the one hand, and Contractor, on the other hand, agree to the following amendments to the Capacity Purchase Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Amendment to Capacity Purchase Agreement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>Schedule 1</u> of the Capacity Purchase Agreement (Covered Aircraft) is hereby amended by adding the
following to the end thereof:

[\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Certain Representations and Warranties</u>. The Parties hereby acknowledge and represent to each other that
after giving effect to the terms hereof, each representation and warranty of Contractor contained in the Capacity Purchase Agreement [\*\*\*] is true and correct in all material respects on the date hereof.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Miscellaneous</u>. This Amendment constitutes the entire agreement of the Parties with respect to the
subject matter hereof and there are no other terms, obligations, covenants, representations, statements or conditions, oral or otherwise, of any kind whatsoever with respect to the subject matter hereof. This Amendment shall extend to and bind the
successors and assigns of the respective Parties hereto. Each Party shall take all reasonable commercial actions in order to effectuate the intent of this Amendment.

***[Remainder of Page Intentionally Left Blank; Signature Page Follows]***

------

If you are in agreement with the foregoing, please sign where indicated below and return a signed copy of this Amendment to us at the address above.

---

| | |
|:---|:---|
| Very truly yours, | Very truly yours, |
| AMERICAN AIRLINES, INC. | AMERICAN AIRLINES, INC. |
| By: | /s/ Kevin Doeksen |
| Name: Kevin Doeksen | Name: Kevin Doeksen |
| Title: Managing Director, American Eagle Strategy and Operations | Title: Managing Director, American Eagle Strategy and Operations |
| Acknowledged and Agreed: | Acknowledged and Agreed: |
| REPUBLIC AIRLINE INC. | REPUBLIC AIRLINE INC. |
| By: | /s/ Paul Kinstedt |
| Name: Paul Kinstedt | Name: Paul Kinstedt |
| Title: SVP Operations / COO | Title: SVP Operations / COO |
| Acknowledged and Agreed: | Acknowledged and Agreed: |
| REPUBLIC AIRWAYS HOLDINGS INC. | REPUBLIC AIRWAYS HOLDINGS INC. |
| By: | /s/ Paul Kinstedt |
| Name: Paul Kinstedt | Name: Paul Kinstedt |
| Title: SVP Operations / COO | Title: SVP Operations / COO |
| cc: | Republic Airline Inc. |
|  | 8909 Purdue Road, Suite 300 |
|  | Indianapolis, IN 46268 |
|  | Attention: Vice President, General Counsel |
|  | [\*\*\*] |

---

***Signature Page to Amendment No. 6***

## Exhibit 10.25

**Exhibit 10.25.8** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

**AMENDMENT NO. 7 TO** 

**<u>CAPACITY PURCHASE AGREEMENT</u>**

This Amendment No. 7 to Capacity Purchase Agreement (this "***Amendment***") is dated as of September 28, 2018 (the "***Amendment Effective Date***"), between American Airlines, Inc., a Delaware corporation (together with its successors and permitted assigns, "***American***"), and Republic Airline Inc. (together with its permitted successors and assigns, "***Contractor***").

WHEREAS, on January 23, 2013 American entered into that certain Capacity Purchase Agreement with Contractor (as amended, modified and supplemented from time to time, the "***Capacity Purchase Agreement***") to establish the terms by which Contractor will provide regional airline services utilizing certain Covered Aircraft on behalf of American;

WHEREAS, on February 28, 2013, American entered into that certain Amendment No. 1 to Capacity Purchase Agreement with Contractor,

WHEREAS, on September 2, 2016, American entered into that certain Amendment No. 2 to Capacity Purchase Agreement with Contractor (as such Amendment No. 2 was amended by that certain Letter Agreement dated as of October 11, 2016);

WHEREAS, on October 12, 2017, American entered into that certain Amendment No. 3 to Capacity Purchase Agreement with Contractor;

WHEREAS, on November 3, 2017, American entered into that certain Amendment No. 4 to Capacity Purchase Agreement with Contractor;

WHEREAS, on December 15, 2017, American entered into that certain Amendment No. 5 to Capacity Purchase Agreement with Contractor;

WHEREAS, on February 23, 2018 American entered into that certain Amendment No. 6 to Capacity Purchase Agreement with Contractor;

WHEREAS, American and Contractor desire to amend the Capacity Purchase Agreement to [\*\*\*];

WHEREAS, it is in the best interests of the parties hereto to further amend the Capacity Purchase Agreement to reflect the agreements set forth herein; and

WHEREAS, all capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to them in the Capacity Purchase Agreement.

------

NOW, THEREFORE, for and in consideration of the mutual covenants and agreements herein contained, American, on the one hand, and Contractor, on the other hand, agree to the following amendment to the Capacity Purchase Agreement:

1. <u>Section</u> <u>3.02</u> (Spare Aircraft) of the Capacity Purchase Agreement shall be and it
hereby is amended and restated in its entirety to read as follows:

[\*\*\*]

2. <u>Section</u> <u>13.01</u> (Notices) of the Capacity Purchase Agreement shall be and it hereby is
amended to add the following:

**If to American pursuant to Exhibit D, to**:

[\*\*\*], with a copy delivered personally or by prepaid overnight confirmed delivery service to the attention of:

Data Privacy Officer

American Airlines, Inc.

4333 Amon Carter Boulevard

MD 5675

Ft. Worth, TX 76155

3. The following definitions in <u>Exhibit A</u> (Definitions) of the Capacity Purchase Agreement shall be and
they hereby are amended and restated in their entirety to read follows:

"***American Data***" means all data or information, in any form or format, including [\*\*\*].

"***Process***" or "***Processing***" means any operation or set of operations that is performed upon American Data, [\*\*\*].

4. T **he "AMERICAN'S SECURITY POLICIES AND PROCEDURES**" (the "  ***Data Security Addendum***") attached to the Capacity Purchase Agreement as <u>Exhibit D</u> is hereby amended by inserting and incorporating the "American Airlines, Inc.'s Proprietary Rights and Data Security Addendum" attached as <u>Annex I</u> hereto. [\*\*\*].

5. This Amendment shall become effective as of the Amendment Effective Date upon satisfaction of all of the
following conditions precedent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Receipt by each Party of each of the following: (i) a copy of this Amendment, duly executed and delivered
by American and Contractor; and (ii) any other documents or agreements reasonably requested by American in connection with the transactions contemplated by this Amendment.

6. The Parties hereby acknowledge and represent to each other that after giving effect to the terms hereof, each
representation and warranty of Contractor contained in the Capacity Purchase Agreement [\*\*\*] is true and correct in all material respects on the Amendment Effective Date.

------

7. Except as amended and modified hereby, any and all of the terms and provisions of the Capacity Purchase
Agreement shall remain in full force and effect and are hereby in all respects ratified and confirmed by American and Contractor. Each of American and Contractor hereby agrees that the amendments and modifications herein contained shall in no manner
affect or impair the liabilities, duties and obligations of American or Contractor under the Capacity Purchase Agreement. Each reference in the Capacity Purchase Agreement to 'this Agreement," "hereunder," "hereof,"
"herein" or words of like import, and each reference in the Capacity Purchase Agreement or other agreements, documents or other instruments executed and delivered pursuant to the Capacity Purchase Agreement to the "Capacity Purchase
Agreement", shall mean and be a reference to the Capacity Purchase Agreement as amended by this Amendment.

8. THIS AMENDMENT, THE CAPACITY PURCHASE AGREEMENT, AND THE OTHER DOCUMENTS EXECUTED IN CONNECTION THEREWITH
REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

***[Remainder of Page Intentionally Left Blank; Signature Page Follows]***

------

IN WITNESS WHEREOF, American and Contractor have executed this Amendment as of the date first set forth above.

---

| | |
|:---|:---|
| **AMERICAN AIRLINES, INC.** | **AMERICAN AIRLINES, INC.** |
| By: | /s/ Anne Moroni |
|  | Name: Anne Moroni |
|  | Title: Managing Director Strategic and |
|  | Operations Planning |
| **REPUBLIC AIRLINE INC.** | **REPUBLIC AIRLINE INC.** |
| By: | /s/ Paul Kinstedt |
|  | Name: Paul Kinstedt |
|  | Title: Chief Operating Officer/SVP |

---

------

**<u>ANNEX I</u>**

**American Airlines, Inc.'s Proprietary Rights and Data Security Addendum** 

[\*\*\*]

Personal Data Supplement to Proprietary Rights and Data Security Addendum

------

**Schedule 1 to Annex I** 

[\*\*\*]

Personal Data Supplement to Proprietary Rights and Data Security Addendum

## Exhibit 10.25

**Exhibit 10.25.8.1**![LOGO](g944307g26a09.jpg)

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

September 21, 2018

***<u>Via E-mail and FedEx</u>***

Republic Airline Inc. ("***Republic***")

Republic Airways Holdings Inc.

8909 Purdue Road

Suite 300

Indianapolis, IN 46268

Attention: Chief Operating Officer

Email: [\*\*\*]

Ladies and Gentlemen:

Reference is made to that certain Capacity Purchase Agreement, dated as of January 23, 2013, between American Airlines, Inc. ("***American***") and Republic (as amended by that certain Amendment No. 1 dated as of February 28, 2013, Amendment No. 2 dated as of September 2, 2016 (as such Amendment No. 2 was amended by that certain Letter Agreement dated as of October 11, 2016), Amendment No. 3 dated as of October 12, 2017, Amendment No. 4 dated as of November 3, 2017, Amendment No. 5 dated as of December 15, 2017, Amendment No. 6 dated as of February 23, 2018, and as may be further amended, supplemented or otherwise modified from time to time in accordance with the terms thereof, the "***Capacity Purchase Agreement***"). Capitalized terms used but not defined herein have the meanings ascribed to them in the Capacity Purchase Agreement.

The Parties desire to amend the Capacity Purchase Agreement [\*\*\*], all as set forth in this amendment (this "***Amendment***").

Therefore, for and in consideration of the mutual covenants and agreements herein contained, and contained in the Capacity Purchase Agreement, American, on the one hand, and Contractor, on the other hand, agree to the following amendments to the Capacity Purchase Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Amendment to Capacity Purchase Agreement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>Section</u> <u>3.02</u> of the Capacity Purchase Agreement is hereby amended in its entirety to
read as follows:

**Section 3.02 Spare Aircraft**. Contractor shall have available for the operation of Scheduled Flights or any charter flights pursuant to <u>Section</u> <u>3.01(c)</u> certain of the Covered Aircraft, in the amount determined based on the table set forth below, which Covered Aircraft shall be a substitute, when necessary or required, for any other Covered Aircraft in the event of any operational issues or daily line maintenance requirements for any other Covered Aircraft (the "***Spare Aircraft***"); *provided* that, [\*\*\*] Spare Aircraft [\*\*\*]. For the avoidance of doubt, American reserves the right at any time in its sole discretion, upon [\*\*\*] days' prior written notice to Contractor, to designate one of the Covered Aircraft as a Spare Aircraft,

------

![LOGO](g944307g26a09.jpg)

regardless of the percentage of Controllable On-Time Departures, the Controllable Completion Rate, or the number of Covered Aircraft at such time. In addition, for the avoidance of doubt, the Spare Aircraft shall be deemed Covered Aircraft at all times and must (i) be at all times in conformity with the requirements for Covered Aircraft under this Agreement; (ii) painted in a livery approved by American; (iii) include American's in-flight materials, in-flight publications, food and beverage products, advertising and paper goods; (iv) be in an interior appearance as approved by American; and (v) be in a seat configuration consistent with the other Covered Aircraft.

---

| | |
|:---|:---|
| **Number of Covered Aircraft on date of**<br> **determination** | **Number of Spare Aircraft Required to**<br> **be Designated from Covered Aircraft** |
| [\*\*\*] Covered Aircraft | [\*\*\*] Spare Aircraft |
| [\*\*\*] Covered Aircraft | [\*\*\*] Spare Aircraft |
| [\*\*\*] or more Covered Aircraft | [\*\*\*] Spare Aircraft |

---

Covered Aircraft shall be scheduled for Heavy Maintenance, overhauls and modifications in accordance with the provisions of <u>Section VI</u> of <u>Schedule 3</u>.

2. <u>Certain Representations and Warranties</u>. The Parties hereby acknowledge and represent to each other that
after giving effect to the terms hereof, each representation and warranty of Contractor contained in the Capacity Purchase Agreement [\*\*\*] is true and correct in all material respects on the date hereof.

3. <u>Miscellaneous</u>. Except as amended and modified hereby, any and all of the terms and provisions of the
Capacity Purchase Agreement shall remain in full force and effect and are hereby in all respects ratified and confirmed by Contractor and American. Each of Contractor and American hereby agrees that the amendments and modifications herein contained
shall in no manner affect or impair the liabilities, duties and obligations of Contractor or American, as applicable, under the Capacity Purchase Agreement. This Amendment constitutes the entire agreement of the Parties with respect to the subject
matter hereof and there are no other terms, obligations, covenants, representations, statements or conditions, oral or otherwise, of any kind whatsoever with respect to the subject matter hereof. This Amendment shall extend to and bind the
successors and assigns of the respective Parties hereto. Each Party shall take all reasonable commercial actions in order to effectuate the intent of this Amendment.

***[Remainder of Page Intentionally Left Blank; Signature Page Follows]***

------

![LOGO](g944307g26a09.jpg)

If you are in agreement with the foregoing, please sign where indicated below and return a signed copy of this Amendment to us at the address above.

Very truly yours,

AMERICAN AIRLINES, INC.

---

| | |
|:---|:---|
| By: | /s/ Anne Moroni |
|  | Name: Anne Moroni |
|  | Title: Managing Director of Strategic & Operations Planning |
| Acknowledged and Agreed: | Acknowledged and Agreed: |
| REPUBLIC AIRLINE INC. | REPUBLIC AIRLINE INC. |
| By: | /s/ Paul Kinstedt |
|  | Name: Paul Kinstedt |
|  | Title: SVP/COO |
| Acknowledged and Agreed: | Acknowledged and Agreed: |
| REPUBLIC AIRWAYS HOLDINGS INC. | REPUBLIC AIRWAYS HOLDINGS INC. |
| By: | /s/ Paul Kinstedt |
|  | Name: Paul Kinstedt |
|  | Title: SVP/COO |

---

---

| | |
|:---|:---|
| cc: | Republic Airline Inc. |
|  | 8909 Purdue Road, Suite 300 |
|  | Indianapolis, IN 46268 |
|  | Attention: Vice President, General Counsel |
|  | [\*\*\*] |

---

***Signature Page to Amendment No. 7 to Capacity Purchase Agreement***

## Exhibit 10.25

**Exhibit 10.25.9** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.**![LOGO](g944307g0812220803382.jpg)

April 23, 2019

***<u>Via E-mail</u>***

Republic Airways Inc. (f/k/a Republic Airline Inc.) ("***Republic***")

Republic Airways Holdings Inc.

8909 Purdue Road

Suite 300

Indianapolis, IN 46268

Attention: Chief Financial Officer

[\*\*\*]

Ladies and Gentlemen:

Reference is made to that certain Capacity Purchase Agreement, dated as of January 23, 2013, between American Airlines, Inc. ("***American***") and Republic (as amended by that certain Amendment No. 1 dated as of February 28, 2013, Amendment No. 2 dated as of September 2, 2016 (as such Amendment No. 2 was amended by that certain Letter Agreement dated as of October 11, 2016), Amendment No. 3 dated as of October 12, 2017, Amendment No. 4 dated as of November 3, 2017, Amendment No. 5 dated as of December 15, 2017, Amendment No. 6 dated as of February 23, 2018, Amendment No. 7 dated as of September 28, 2018 and as may be further amended, supplemented or otherwise modified from time to time in accordance with the terms thereof, the "***Capacity Purchase Agreement***"). Capitalized terms used but not defined herein have the meanings ascribed to them in the Capacity Purchase Agreement.

The Parties desire to amend the Capacity Purchase Agreement to [\*\*\*], all as set forth in this amendment (this "***Amendment***").

Therefore, for and in consideration of the mutual covenants and agreements herein contained, and contained in the Capacity Purchase Agreement, American, on the one hand, and Contractor, on the other hand, agree to the following amendments to the Capacity Purchase Agreement:

1. <u>Amendment to Capacity Purchase Agreement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>Schedule 1</u> of the Capacity Purchase Agreement (Covered Aircraft) is hereby amended by adding the
following to the end thereof:

[\*\*\*]

------

![LOGO](g944307g0812220803382.jpg)

2. <u>Certain Representations and Warranties</u>. The Parties hereby acknowledge and represent to each other that
after giving effect to the terms hereof, each representation and warranty of Contractor contained in the Capacity Purchase Agreement [\*\*\*] is true and correct in all material respects on the date hereof.

3. <u>Miscellaneous</u>. The Capacity Purchase Agreement and this Amendment constitute the entire agreement of the
Parties with respect to the subject matter hereof and there are no other terms, obligations, covenants, representations, statements or conditions, oral or otherwise, of any kind whatsoever with respect to the subject matter hereof. This Amendment
shall extend to and bind the successors and assigns of the respective Parties hereto. Each Party shall take all reasonable commercial actions in order to effectuate the intent of this Amendment.

***[Remainder of Page Intentionally Left Blank; Signature Page Follows]***

------

![LOGO](g944307g0812220803382.jpg)

If you are in agreement with the foregoing, please sign where indicated below and return a signed copy of this Amendment to us at the address above.

---

| | | |
|:---|:---|:---|
| Very truly yours, | Very truly yours, | Very truly yours, |
| AMERICAN AIRLINES, INC. | AMERICAN AIRLINES, INC. | AMERICAN AIRLINES, INC. |
| By: | /s/ Anne Moroni | /s/ Anne Moroni |
|  | Name: | Anne Moroni |
|  | Title: | Managing Director, American Eagle |
|  |  | Strategy and Operations |
| Acknowledged and Agreed: | Acknowledged and Agreed: | Acknowledged and Agreed: |
| REPUBLIC AIRWAYS INC. | REPUBLIC AIRWAYS INC. | REPUBLIC AIRWAYS INC. |
| By: | /s/ S. Wade Sheek | /s/ S. Wade Sheek |
|  | Name: | S. Wade Sheek |
|  | Title: | VP, General Counsel |
| Acknowledged and Agreed: | Acknowledged and Agreed: | Acknowledged and Agreed: |
| REPUBLIC AIRWAYS HOLDINGS INC. | REPUBLIC AIRWAYS HOLDINGS INC. | REPUBLIC AIRWAYS HOLDINGS INC. |
| By: | /s/ S. Wade Sheek | /s/ S. Wade Sheek |
|  | Name: | S. Wade Sheek |
|  | Title: | S. Wade Sheek |
| cc: | Republic Airways Inc. | Republic Airways Inc. |
|  | 8909 Purdue Road, Suite 300 | 8909 Purdue Road, Suite 300 |
|  | Indianapolis, IN 46268 | Indianapolis, IN 46268 |
|  | Attention: Vice President, General Counsel | Attention: Vice President, General Counsel |
|  | [\*\*\*] |  |

---

## Exhibit 10.25

**Exhibit 10.25.10** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

**AMENDMENT NO. 9 TO** 

**<u>CAPACITY PURCHASE AGREEMENT</u>**

This Amendment No. 9 to Capacity Purchase Agreement (this ***"Amendment")*** is dated as of December 16, 2019 (the ***"Amendment No. 9 Effective Date"),*** between American Airlines, Inc., a Delaware corporation (together with its successors and permitted assigns, ***"American"),*** and Republic Airways Inc. (together with its permitted successors and assigns, ***"Contractor").***

WHEREAS, on January 23, 2013 American entered into that certain Capacity Purchase Agreement with Contractor (as amended, modified and supplemented from time to time, the ***"Capacity Purchase Agreement")*** to establish the terms by which Contractor will provide regional airline services utilizing certain Covered Aircraft on behalf of American;

WHEREAS, on February 28, 2013, American entered into that certain Amendment No. 1 to Capacity Purchase Agreement with Contractor;

WHEREAS, on September 2, 2016, American entered into that certain Amendment No. 2 to Capacity Purchase Agreement with Contractor (as such Amendment No. 2 was amended by that certain Letter Agreement dated as of October 11, 2016);

WHEREAS, on October 12, 2017, American entered into that certain Amendment No. 3 to Capacity Purchase Agreement with Contractor;

WHEREAS, on November 3, 2017, American entered into that certain Amendment No. 4 to Capacity Purchase Agreement with Contractor;

WHEREAS, on December 15, 2017, American entered into that certain Amendment No. 5 to Capacity Purchase Agreement with Contractor;

WHEREAS, on February 23, 2018 American entered into that certain Amendment No. 6 to Capacity Purchase Agreement with Contractor;

WHEREAS, on September 28, 2018 American entered into that certain Amendment No. 7 to Capacity Purchase Agreement with Contractor;

WHEREAS, on April 23, 2019, American entered into that certain Amendment No. 8 to Capacity Purchase Agreement with Contractor;

WHEREAS, it is in the best interests of the parties hereto to further amend the Capacity Purchase Agreement to reflect the agreements set forth herein; and

WHEREAS, all capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to them in the Capacity Purchase Agreement.

------

NOW, THEREFORE, for and in consideration of the mutual covenants and agreements herein contained, American, on the one hand, and Contractor, on the other hand, agree to the following amendment to the Capacity Purchase Agreement:

1. The second sentence of <u>Section</u> <u>3.01(a)</u> of the Capacity Purchase Agreement
(Implementation Date) shall be and it hereby is amended and restated to read as follows:

The Parties hereto agree that <u>Schedule 1</u> hereto may be amended or updated from time to time as set forth in this Agreement, [\*\*\*].

2. The table in <u>Section</u> <u>3.02</u> of the Capacity Purchase Agreement (Spare Aircraft) shall
be and it hereby is amended to [\*\*\*].

3. <u>Section</u> <u>3.02</u> of the Capacity Purchase Agreement (Spare Aircraft) is hereby amended by
adding the following sentence immediately following the existing table to read as follows:

[\*\*\*]

4. <u>Article III</u> of the Capacity Purchase Agreement (Use of Covered Aircraft) is hereby amended by adding a
new <u>Section</u> <u>3.07</u> to the end thereof to read as follows:

[\*\*\*]

5. <u>Article III</u> of the Capacity Purchase Agreement (Use of Covered Aircraft) is hereby amended by adding a
new <u>Section</u> <u>3.08</u> to the end thereof to read as follows:

**Section 3.08 Event of Loss.** In the event an Event of Loss has occurred with respect to any Covered Aircraft, then [\*\*\*].

6. <u>Section</u> <u>11.01</u> of the Capacity Purchase Agreement (Term) shall be and it hereby is
amended and restated to read as follows:

Section 11.01 Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Term Generally.** This Agreement shall be effective as of the Effective Date and (unless earlier terminated as provided herein) shall continue until [\*\*\*] (the "***Term***"); *****provided* that with respect to each Covered Aircraft, each Covered Aircraft's term, as applicable, shall commence on [\*\*\*] and, [\*\*\*][\*\*\*] shall continue until the specified dates set forth on <u>Schedule 1</u> under the heading "***Aircraft Term***" ****as such Aircraft Term may be extended as provided herein (each an "***Aircraft Term***"); ****[\*\*\*]. A Covered Aircraft that has been Withdrawn from this Agreement shall no longer be subject to any of the terms and conditions of this Agreement, including any Aircraft Term and any Extension Term, other than those terms that expressly survive the termination of this Agreement or Withdrawal of a Covered Aircraft.

------

7. <u>Section</u> <u>11.02(b)(viii)</u> of the Capacity Purchase Agreement ([\*\*\*]) shall be and it
hereby is amended and restated to read as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) Intentionally deleted.

8. <u>Section</u> <u>13.23</u> of the Capacity Purchase Agreement (Survival of Certain Obligations) is
hereby amended by adding " <u>XI</u>," immediately following " <u>X</u>," in the last sentence thereof.

9. The Capacity Purchase Agreement is amended by adding a new <u>Schedule 1(c)</u> as attached hereto.

10. <u>Section VI</u> (Maintenance of Aircraft) of <u>Schedule 3</u> (Scheduling and Operating Restrictions on
Covered Aircraft) shall be and it hereby is amended and restated to read as follows:

[\*\*\*]

11. <u>Section I(C)</u> of <u>Schedule 4</u> of the Capacity Purchase Agreement (Changes in Interior Design) is
hereby amended by adding a new sentence to the end thereof to read as follows:

[\*\*\*]

12. <u>Section II</u> of <u>Schedule 4</u> of the Capacity Purchase Agreement ([\*\*\*]) is hereby amended by adding a
new <u>Section II(T)</u> to the end thereof to read as follows:

[\*\*\*]

13. The first sentence of <u>Section II(A)</u> of <u>Schedule 7</u> of the Capacity Purchase Agreement ([\*\*\*])
shall be and it hereby is amended and restated to read as follows:

[\*\*\*]

14. <u>Section II</u> of <u>Schedule 7</u> of the Capacity Purchase Agreement ([\*\*\*]) is hereby amended by adding a
new <u>Section II(B)</u> to the end thereof to read as follows:

[\*\*\*]

15. <u>Sections IV(B)</u> and <u>IV(C)</u> of <u>Schedule 7</u> of the Capacity Purchase Agreement ([\*\*\*]) shall be
and they hereby are amended to give effect to the following:

[\*\*\*]

16. <u>Section IV(D)</u> of <u>Schedule 7</u> of the Capacity Purchase Agreement ([\*\*\*]) shall be amended to add a <u>subsection 3</u> as follows:

[\*\*\*]

------

17. The first sentence of <u>Section V</u> of <u>Schedule 7</u> of the Capacity Purchase Agreement ([\*\*\*]) shall be
and it hereby is amended and restated in its entirety to read as follows:

[\*\*\*]

18. The definition of "Covered Aircraft" as set forth in <u>Exhibit A</u> of the Capacity Purchase
Agreement (Definitions) is hereby amended and restated in its entirety to read as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.  ***"Covered Aircraft"*** shall mean, [\*\*\*].

19. <u>Definitions</u>. <u>Exhibit A</u> of the Capacity Purchase Agreement (Definitions) is hereby amended by
adding the following definitions in the appropriate alphabetical order:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. **"Amendment No. 9 Effective Date"** shall mean December 16, 2019.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.  ***"Event of Loss"*** shall mean the following: [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h.  ***"In Seat Power"*** shall mean a system to deliver in-seat power for passengers to charge portable electrical devices in accordance with American's specifications.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;l.  ***"Replacement Aircraft"*** shall mean an aircraft that is [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;m. [\*\*\*]

20. <u>Additional Agreements of the Parties</u>.

[\*\*\*]

21. This Amendment shall become effective as of the Amendment No. 9 Effective Date upon satisfaction of the
following condition precedent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Receipt by each Party of a copy of this Amendment, duly executed and delivered by American and Contractor.

------

22. The Parties hereby acknowledge and represent to each other that after giving effect to the terms hereof, each
representation and warranty of Contractor contained in the Capacity Purchase Agreement [\*\*\*] is true and correct in all material respects on the Amendment No. 9 Effective Date.

23. Except as amended and modified hereby, any and all of the terms and provisions of the Capacity Purchase
Agreement shall remain in full force and effect and are hereby in all respects ratified and confirmed by American and Contractor. Each of American and Contractor hereby agrees that the amendments and modifications herein contained shall in no manner
affect or impair the liabilities, duties and obligations of American or Contractor under the Capacity Purchase Agreement. Each reference in the Capacity Purchase Agreement to "this Agreement," "hereunder," "hereof,"
"herein" or words of like import, and each reference in the Capacity Purchase Agreement or other agreements, documents or other instruments executed and delivered pursuant to the Capacity Purchase Agreement to the "Capacity Purchase
Agreement", shall mean and be a reference to the Capacity Purchase Agreement as amended by this Amendment.

24. THIS AMENDMENT, THE CAPACITY PURCHASE AGREEMENT, THE OTHER RELATED AGREEMENTS AND THE OTHER DOCUMENTS EXECUTED
IN CONNECTION HEREWITH AND THEREWITH WHEN TAKEN TOGETHER REPRESENT THE ENTIRE AGREEMENT BETWEEN THE PARTIES WITH RESPECT TO THE SUBJECT MATTER HEREOF AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR ORAL AGREEMENTS OF THE
PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

***[Remainder of Page Intentionally Left Blank; Signature Page Follows]***

------

IN WITNESS WHEREOF, American and Contractor have executed this Amendment as of the Amendment No. 9 Effective Date.

---

| | |
|:---|:---|
| **AMERICAN AIRLINES, INC.** | **AMERICAN AIRLINES, INC.** |
| By: | /s/ Devon May |
|  | Name: Devon May |
|  | Title: SVP, American Eagle and Operations |
|  | Planning |
| **REPUBLIC AIRWAYS, INC.** | **REPUBLIC AIRWAYS, INC.** |
| By: | /s/ Joseph P. Allman |
|  | Name: Joseph P. Allman |
|  | Title: SVP, CFO |

---

------

**<u>SCHEDULE 1(c)</u>**

[\*\*\*]

------

**ANNEX 1** 

[\*\*\*]

------

**<u>Appendix 1</u>**

[\*\*\*]

------

**<u>Appendix 2</u>**

[\*\*\*]

------

**ANNEX 2** 

[\*\*\*]

## Exhibit 10.25

**Exhibit 10.25.11** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

AMENDMENT NO. 10 TO

CAPACITY PURCHASE AGREEMENT

This Amendment No. 10 to Capacity Purchase Agreement (this "**Amendment**") is dated as of April 8, 2020 (the "**Amendment No. 10 Effective Date**"), between American Airlines, Inc., a Delaware corporation (together with its successors and permitted assigns, "**American**"), and Republic Airways Inc. (together with its permitted successors and assigns, "**Contractor**").

WHEREAS, on January 23, 2013 American entered into that certain Capacity Purchase Agreement with Contractor (as amended, modified and supplemented from time to time, the "**Capacity Purchase Agreement**") to establish the terms by which Contractor will provide regional airline services utilizing certain Covered Aircraft on behalf of American;

WHEREAS, on February 28, 2013, American entered into that certain Amendment No. 1 to Capacity Purchase Agreement with Contractor;

WHEREAS, on September 2, 2016, American entered into that certain Amendment No. 2 to Capacity Purchase Agreement with Contractor (as such Amendment No. 2 was amended by that certain Letter Agreement dated as of October 11, 2016);

WHEREAS, on October 12, 2017, American entered into that certain Amendment No. 3 to Capacity Purchase Agreement with Contractor;

WHEREAS, on November 3, 2017, American entered into that certain Amendment No. 4 to Capacity Purchase Agreement with Contractor;

WHEREAS, on December 15, 2017, American entered into that certain Amendment No. 5 to Capacity Purchase Agreement with Contractor;

WHEREAS, on February 23, 2018 American entered into that certain Amendment No. 6 to Capacity Purchase Agreement with Contractor;

WHEREAS, on September 28, 2018 American entered into that certain Amendment No. 7 to Capacity Purchase Agreement with Contractor;

WHEREAS, on April 23, 2019, American entered into that certain Amendment No. 8 to Capacity Purchase Agreement with Contractor;

WHEREAS, on December 16, 2019, American entered into that certain Amendment No. 9 to Capacity Purchase Agreement with Contractor;

------

WHEREAS, it is in the best interests of the parties hereto to further amend the Capacity Purchase Agreement to reflect the agreements set forth herein; and

WHEREAS, all capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to them in the Capacity Purchase Agreement.

NOW, THEREFORE, for and in consideration of the mutual covenants and agreements herein contained, American, on the one hand, and Contractor, on the other hand, agree to the following amendment to the Capacity Purchase Agreement:

1. <u>Schedule 1(c)</u> of the Capacity Purchase Agreement (Owned EMB-170s) shall be and it hereby is replaced in its entirety with <u>Schedule 1(c)</u> attached hereto.

2. <u>Definitions</u>. <u>Exhibit A</u> of the Capacity Purchase Agreement (Definitions) is hereby amended by
adding the following definition in the appropriate alphabetical order:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. "**Amendment No. 10 Effective Date**" shall mean April 8, 2020.

3. This Amendment shall become effective as of the Amendment No. 10 Effective Date upon satisfaction of the
following condition precedent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Receipt by each Party of a copy of this Amendment, duly executed and delivered by American and Contractor.

4. The Parties hereby acknowledge and represent to each other that after giving effect to the terms hereof, each
representation and warranty of Contractor contained in the Capacity Purchase Agreement [\*\*\*] is true and correct in all material respects on the Amendment No. 10 Effective Date.

5. Except as amended and modified hereby, any and all of the terms and provisions of the Capacity Purchase
Agreement shall remain in full force and effect and are hereby in all respects ratified and confirmed by American and Contractor. Each of American and Contractor hereby agrees that the amendments and modifications herein contained shall in no manner
affect or impair the liabilities, duties and obligations of American or Contractor under the Capacity Purchase Agreement. Each reference in the Capacity Purchase Agreement to "this Agreement," "hereunder," "hereof,"
"herein" or words of like import, and each reference in the Capacity Purchase Agreement or other agreements, documents or other instruments executed and delivered pursuant to the Capacity Purchase Agreement to the "Capacity Purchase
Agreement", shall mean and be a reference to the Capacity Purchase Agreement as amended by this Amendment.

------

6. THIS AMENDMENT, THE CAPACITY PURCHASE AGREEMENT, THE OTHER RELATEDAGREEMENTS AND THE OTHER DOCUMENTS EXECUTED
IN CONNECTION HEREWITH AND THEREWITH WHEN TAKEN TOGETHER REPRESENT THE ENTIRE AGREEMENT BETWEEN THE PARTIES WITH RESPECT TO THE SUBJECT MATTER HEREOF AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR ORAL AGREEMENTS OF THE
PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

**[Remainder of Page Intentionally Left Blank; Signature Page Follows]** 

------

IN WITNESS WHEREOF, American and contractor have executed this Amendment as of the Amendment No. 10 Effective Date.

---

| | |
|:---|:---|
| AMERICAN AIRLINES, INC. | AMERICAN AIRLINES, INC. |
| By: | /s/ Anne Moroni |
| Name: | Anne Moroni |
| Title: | MD American Eagle Strategy & Operations |
| REPUBLIC AIRWAYS, INC. | REPUBLIC AIRWAYS, INC. |
| By: | /s/ Joseph P. Allman |
| Name: | Joseph P. Allman |
| Title: | SVP, CFO |

---

------

**<u>SCHEDULE 1(c)</u>**

<u>[\*\*\*]</u>

## Exhibit 10.25

**Exhibit 10.25.12** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

**SUPPLEMENTAL AGREEMENT** 

**AND** 

**AMENDMENT NO. 11** 

**TO** 

**<u>CAPACITY PURCHASE AGREEMENT</u>**

This Supplemental Agreement and Amendment No. 11 to Capacity Purchase Agreement (this "***Amendment***") is dated as of June 22, 2020, between American Airlines, Inc., a Delaware corporation (together with its successors and permitted assigns, "***American***"), and Republic Airways Inc. (together with its permitted successors and assigns, "***Contractor***").

WHEREAS, on January 23, 2013 American entered into that certain Capacity Purchase Agreement with Contractor (as amended, modified and supplemented from time to time, the "***Capacity Purchase Agreement***") to establish the terms by which Contractor will provide regional airline services utilizing certain Covered Aircraft on behalf of American;

WHEREAS, on February 28, 2013, American entered into that certain Amendment No. 1 to Capacity Purchase Agreement with Contractor;

WHEREAS, on September 2, 2016, American entered into that certain Amendment No. 2 to Capacity Purchase Agreement with Contractor (as such Amendment No. 2 was amended by that certain Letter Agreement dated as of October 11, 2016);

WHEREAS, on October 12, 2017, American entered into that certain Amendment No. 3 to Capacity Purchase Agreement with Contractor;

WHEREAS, on November 3, 2017, American entered into that certain Amendment No. 4 to Capacity Purchase Agreement with Contractor;

WHEREAS, on December 15, 2017, American entered into that certain Amendment No. 5 to Capacity Purchase Agreement with Contractor;

WHEREAS, on February 23, 2018 American entered into that certain Amendment No. 6 to Capacity Purchase Agreement with Contractor;

WHEREAS, on September 28, 2018 American entered into that certain Amendment No. 7 to Capacity Purchase Agreement with Contractor;

WHEREAS, on April 23, 2019, American entered into that certain Amendment No. 8 to Capacity Purchase Agreement with Contractor;

WHEREAS, December 16, 2019, American entered into that certain Amendment No. 9 to Capacity Purchase Agreement with Contractor;

------

WHEREAS, April 8, 2020, American entered into that certain Amendment No. 10 to Capacity Purchase Agreement with Contractor;

WHEREAS, it is in the best interests of the parties hereto to further amend the Capacity Purchase Agreement to reflect the agreements set forth herein; and

WHEREAS, all capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to them in the Capacity Purchase Agreement.

NOW, THEREFORE, for and in consideration of the mutual covenants and agreements herein contained, American, on the one hand, and Contractor, on the other hand, agree to the following with respect to the Capacity Purchase Agreement:

1. <u>Schedule 1</u> of the Capacity Purchase Agreement (Covered Aircraft) shall be replaced in its entirety with <u>Schedule 1</u> attached hereto.

2. <u>Section I</u> of <u>Schedule 4</u> of the Capacity Purchase Agreement ([\*\*\*]) is hereby amended by adding a
new <u>Section I(V)</u> to the end thereof to read as follows:

[\*\*\*]

3. <u>Schedule 7</u> of the Capacity Purchase Agreement ([\*\*\*]) is hereby amended by adding a new <u>Section VI</u> to the end thereof to read as follows:

[\*\*\*]

4. <u>Definitions</u>. <u>Exhibit A</u> of the Capacity Purchase Agreement (Definitions) is hereby amended by
adding the following definitions in the appropriate alphabetical order:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. "  ***Amendment No. 11***" shall mean that certain
Supplemental Agreement and Amendment No. 11 to the Capacity Purchase Agreement between the Parties, dated as of June 22, 2020.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. "  ***Amendment No. 11 Effective Date***" shall mean the date
upon which all of the conditions precedent set forth in Section 8 of Amendment No. 11 have been satisfied.

5. <u>Additional Agreements of the Parties</u>. The Parties further agree to the following with respect to the
Capacity Purchase Agreement:

[\*\*\*]

6. [\*\*\*]

7. Notwithstanding anything to the contrary contained in this Amendment:

[\*\*\*]

------

8. This Amendment shall become effective as of the Amendment No. 11 Effective Date upon satisfaction of all
of the following conditions precedent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Receipt by each Party of a copy of this Amendment, duly executed and delivered by American and Contractor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Contractor shall have obtained all consents and approvals required in connection with the execution, delivery
and performance by Contractor of this Amendment.

9. The Parties hereby acknowledge and represent to each other that after giving effect to the terms hereof, each
representation and warranty of Contractor contained in the Capacity Purchase Agreement [\*\*\*] is true and correct in all material respects on the Amendment No. 11 Effective Date.

10. Except as amended and modified hereby, any and all of the terms and provisions of the Capacity Purchase
Agreement shall remain in full force and effect and are hereby in all respects ratified and confirmed by American and Contractor. Each of American and Contractor hereby agrees that the amendments and modifications herein contained shall in no manner
affect or impair the liabilities, duties and obligations of American or Contractor under the Capacity Purchase Agreement. Each reference in the Capacity Purchase Agreement to "this Agreement," "hereunder," "hereof,"
"herein" or words of like import, and each reference in the Capacity Purchase Agreement or other agreements, documents or other instruments executed and delivered pursuant to the Capacity Purchase Agreement to the "Capacity Purchase
Agreement", shall mean and be a reference to the Capacity Purchase Agreement as amended by this Amendment.

11. THIS AMENDMENT, THE CAPACITY PURCHASE AGREEMENT, THE OTHER RELATED AGREEMENTS AND THE OTHER DOCUMENTS EXECUTED
IN CONNECTION HEREWITH AND THEREWITH WHEN TAKEN TOGETHER REPRESENT THE ENTIRE AGREEMENT BETWEEN THE PARTIES WITH RESPECT TO THE SUBJECT MATTER HEREOF AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR ORAL AGREEMENTS OF THE
PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

***[Remainder of Page Intentionally Left Blank; Signature Page Follows]***

------

IN WITNESS WHEREOF, American and Contractor have executed this Amendment as of the Amendment No. 11 Effective Date.

---

| | |
|:---|:---|
| **AMERICAN AIRLINES, INC.** | **AMERICAN AIRLINES, INC.** |
| By: | /s/ Devon May |
| Name: | Devon May |
| Title: | SVP, Finance and American Eagle |

---

---

| | |
|:---|:---|
| **REPUBLIC AIRLINE INC.** | **REPUBLIC AIRLINE INC.** |
| By: | /s/ Bryan Bedford |
| Name: | Bryan Bedford |
| Title: | President & CEO |

---

------

**SCHEDULE 1** 

[\*\*\*]

## Exhibit 10.25

**Exhibit 10.25.13** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

**SUPPLEMENTAL AGREEMENT AND** 

**AMENDMENT NO. 12 TO** 

**<u>CAPACITY PURCHASE AGREEMENT</u>**

This Supplemental Agreement and Amendment No. 12 to Capacity Purchase Agreement (this "***Amendment***") is dated as of December 17, 2020 (the "***Amendment No. 12 Effective Date***"), between American Airlines, Inc., a Delaware corporation (together with its successors and permitted assigns, "***American***"), and Republic Airways Inc., an Indiana corporation (together with its permitted successors and assigns, "***Contractor***").

WHEREAS, on January 23, 2013, American entered into that certain Capacity Purchase Agreement with Contractor (as amended, modified and supplemented from time to time, the "***Capacity Purchase Agreement***") to establish the terms by which Contractor will provide regional airline services utilizing certain Covered Aircraft on behalf of American;

WHEREAS, on February 28, 2013, American entered into that certain Amendment No. 1 to Capacity Purchase Agreement with Contractor;

WHEREAS, on September 2, 2016, American entered into that certain Amendment No. 2 to Capacity Purchase Agreement with Contractor (as such Amendment No. 2 was amended by that certain Letter Agreement dated as of October 11, 2016);

WHEREAS, on October 12, 2017, American entered into that certain Amendment No. 3 to Capacity Purchase Agreement with Contractor;

WHEREAS, on November 3, 2017, American entered into that certain Amendment No. 4 to Capacity Purchase Agreement with Contractor;

WHEREAS, on December 15, 2017, American entered into that certain Amendment No. 5 to Capacity Purchase Agreement with Contractor;

WHEREAS, on February 23, 2018 American entered into that certain Amendment No. 6 to Capacity Purchase Agreement with Contractor;

WHEREAS, on September 28, 2018 American entered into that certain Amendment No. 7 to Capacity Purchase Agreement with Contractor;

WHEREAS, on April 23, 2019, American entered into that certain Amendment No. 8 to Capacity Purchase Agreement with Contractor;

WHEREAS, December 16, 2019, American entered into that certain Amendment No. 9 to Capacity Purchase Agreement with Contractor;

------

WHEREAS, April 8, 2020, American entered into that certain Amendment No. 10 to Capacity Purchase Agreement with Contractor;

WHEREAS, June 22, 2020, American entered into that certain Supplemental Agreement and Amendment No. 11 to Capacity Purchase Agreement with Contractor ("***Amendment No. 11***");

WHEREAS, it is in the best interests of the parties hereto to further amend the Capacity Purchase Agreement to reflect the agreements set forth herein; and

WHEREAS, all capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to them in the Capacity Purchase Agreement.

NOW, THEREFORE, for and in consideration of the mutual covenants and agreements herein contained, American, on the one hand, and Contractor, on the other hand, agree to the following with respect to the Capacity Purchase Agreement:

1. *Section 3.01(a)* (Implementation Date) of the Capacity Purchase Agreement is hereby
amended by adding the following at the end thereof:

[\*\*\*]

2. *Section 3.01(d)* (Maintenance Flights and Ferry Flights) of the Capacity Purchase
Agreement is hereby amended by adding the following at the end thereof:

Notwithstanding anything to the contrary contained herein, from [\*\*\*], Contractor shall [\*\*\*], and this Agreement (including [\*\*\*]), shall be interpreted accordingly; *provided, however*, that [\*\*\*]

3. *Schedule 1* (Covered Aircraft) of the Capacity Purchase Agreement is hereby amended by adding the
following rows to the end thereof:

[\*\*\*]

4. *Schedule 1* (Covered Aircraft) of the Capacity Purchase Agreement is hereby amended by adding the
following endnote to the end thereof:

[\*\*\*]

5. *Section II* ([\*\*\*]) of *Schedule 4* ([\*\*\*]) of the Capacity Purchase Agreement is hereby amended by
adding a new *Section II(U)* to the end thereof to read as follows:

[\*\*\*]

6. *Section I(A)* (Primary Drivers) of *Schedule 7* ([\*\*\*]) of the Capacity Purchase Agreement is hereby
amended by adding [\*\*\*]

7. The heading of *Section II(A)* of *Schedule 7* ([\*\*\*]) of the Capacity Purchase Agreement is hereby
amended to replace [\*\*\*] with [\*\*\*]

------

8. The first sentence of *Section II(A)* of *Schedule 7* ([\*\*\*]) of the Capacity Purchase Agreement is
hereby amended to add [\*\*\*] immediately following [\*\*\*]

9. The heading for the righthand-most column in the table in *Section II(B)* ([\*\*\*]) of *Schedule 7* ([\*\*\*]) is hereby amended to replace [\*\*\*] with

10. *Section II* ([\*\*\*]) of *Schedule 7* ([\*\*\*]) of the Capacity Purchase Agreement is hereby amended by
adding a new  ***Section II(C)*** to the end thereof to read as follows:

[\*\*\*]

11. The first sentence of *Section V* ([\*\*\*]) of *Schedule 7* ([\*\*\*]) of the Capacity Purchase Agreement
is hereby amended by adding the following to the end thereof:

[\*\*\*]

12. The definition of "*Covered Aircraft*" in *Exhibit A* (Definitions) of the Capacity
Purchase Agreement is hereby amended to [\*\*\*]

13. *Exhibit A* (Definitions) of the Capacity Purchase Agreement is hereby amended by adding the following new
definitions in the appropriate alphabetical order:

"***Amendment No. 12 EMB-175 Covered Aircraft***" shall mean the [\*\*\*]

"***Amendment No. 12 Pre-Delivery EMB-175 Aircraft***" shall mean, [\*\*\*]

[\*\*\*]

14. <u>Additional Agreements of the Parties</u>. The Parties further agree to the following with respect to the
Capacity Purchase Agreement:

[\*\*\*]

15. This Amendment shall become effective as of the Amendment No. 12 Effective Date upon satisfaction of all
of the following conditions precedent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Receipt by American of each of the following, in form and substance reasonably satisfactory to American:
(i) a copy of this Amendment, duly executed and delivered by Contractor; and (ii) any other documents or agreements reasonably requested by American in connection with the transactions contemplated by this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. [\*\*\*]

16. The Parties hereby acknowledge and represent to each other that after giving effect to the terms hereof, each
representation and warranty of Contractor contained in the Capacity Purchase Agreement [\*\*\*] is true and correct in all material respects on the Amendment No. 12 Effective Date.

------

17. Except as amended and modified hereby, any and all of the terms and provisions of the Capacity Purchase
Agreement shall remain in full force and effect and are hereby in all respects ratified and confirmed by American and Contractor. Each of American and Contractor hereby agrees that the amendments and modifications herein contained shall in no manner
affect or impair the liabilities, duties and obligations of American or Contractor under the Capacity Purchase Agreement. Each reference in the Capacity Purchase Agreement to "this Agreement," "hereunder," "hereof,"
"herein" or words of like import, and each reference in the Capacity Purchase Agreement or other agreements, documents or other instruments executed and delivered pursuant to the Capacity Purchase Agreement to the "Capacity Purchase
Agreement", shall mean and be a reference to the Capacity Purchase Agreement as amended by this Amendment.

18. THIS AMENDMENT, THE CAPACITY PURCHASE AGREEMENT, THE OTHER RELATED AGREEMENTS AND THE OTHER DOCUMENTS EXECUTED
IN CONNECTION HEREWITH AND THEREWITH WHEN TAKEN TOGETHER REPRESENT THE ENTIRE AGREEMENT BETWEEN THE PARTIES WITH RESPECT TO THE SUBJECT MATTER HEREOF AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR ORAL AGREEMENTS OF THE
PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

***[Remainder of Page Intentionally Left Blank; Signature Page Follows]***

------

IN WITNESS WHEREOF, American and Contractor have executed this Amendment as of the Amendment No. 12 Effective Date.

---

| | | |
|:---|:---|:---|
| **AMERICAN AIRLINES, INC.** | **AMERICAN AIRLINES, INC.** | **AMERICAN AIRLINES, INC.** |
| By: | /s/ Devon May | /s/ Devon May |
|  | Name: | Devon May |
|  | Title: | SVP, American Eagle and Operations Planning |
| **REPUBLIC AIRWAYS INC.** | **REPUBLIC AIRWAYS INC.** | **REPUBLIC AIRWAYS INC.** |
| By: | /s/ Joseph P. Allman | /s/ Joseph P. Allman |
|  | Name: | Joseph P. Allman |
|  | Title: | SVP, Chief Financial Officer |

---

## Exhibit 10.25

**Exhibit 10.25.14** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

**SUPPLEMENTAL AGREEMENT** 

**AND** 

**AMENDMENT NO. 13** 

**TO** 

**<u>CAPACITY PURCHASE AGREEMENT</u>**

This Supplemental Agreement and Amendment No. 13 to Capacity Purchase Agreement (this *"****Amendment****")* is dated as of May 26, 2021, between American Airlines, Inc., a Delaware corporation (together with its successors and permitted assigns, *"****American****"),* and Republic Airways Inc., an Indiana corporation (together with its permitted successors and assigns, *"****Contractor****").*

WHEREAS, on January 23, 2013 American entered into that certain Capacity Purchase Agreement with Contractor (as amended, modified and supplemented from time to time, the *"****Capacity Purchase Agreement****")* to establish the terms by which Contractor will provide regional airline services utilizing certain Covered Aircraft on behalf of American;

WHEREAS, on February 28, 2013, American entered into that certain Amendment No. 1 to Capacity Purchase Agreement with Contractor;

WHEREAS, on September 2, 2016, American entered into that certain Amendment No. 2 to Capacity Purchase Agreement with Contractor (as such Amendment No. 2 was amended by that certain Letter Agreement dated as of October 11, 2016);

WHEREAS, on October 12, 2017, American entered into that certain Amendment No. 3 to Capacity Purchase Agreement with Contractor;

WHEREAS, on November 3, 2017, American entered into that certain Amendment No. 4 to Capacity Purchase Agreement with Contractor;

WHEREAS, on December 15, 2017, American entered into that certain Amendment No. 5 to Capacity Purchase Agreement with Contractor;

WHEREAS, on February 23, 2018 American entered into that certain Amendment No. 6 to Capacity Purchase Agreement with Contractor;

WHEREAS, on September 28, 2018 American entered into that certain Amendment No. 7 to Capacity Purchase Agreement with Contractor;

WHEREAS, on April 23, 2019, American entered into that certain Amendment No. 8 to Capacity Purchase Agreement with Contractor;

------

WHEREAS, December 16, 2019, American entered into that certain Amendment No. 9 to Capacity Purchase Agreement with Contractor;

WHEREAS, April 8, 2020, American entered into that certain Amendment No. 10 to Capacity Purchase Agreement with Contractor;

WHEREAS, June 22, 2020, American entered into that certain Amendment No. 11 to Capacity Purchase Agreement with Contractor;

WHEREAS, December 17, 2020, American entered into that certain Amendment No. 12 to Capacity Purchase Agreement with Contractor;

WHEREAS, it is in the best interests of the parties hereto to further amend the Capacity Purchase Agreement to reflect the agreements set forth herein; and

WHEREAS, all capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to them in the Capacity Purchase Agreement.

NOW, THEREFORE, for and in consideration of the mutual covenants and agreements herein contained, American, on the one hand, and Contractor, on the other hand, agree to the following with respect to the Capacity Purchase Agreement:

1. <u>Definitions</u>. <u>Exhibit A</u> of the Capacity Purchase Agreement (Definitions) is hereby amended by
adding the following definition in the appropriate alphabetical order:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. *"*  ***Amendment No. 13 Effective Date*** *"* shall
mean May 26, 2021.

2. <u>Additional Agreements of the Parties</u>. The Parties further agree to the following with respect to the
Capacity Purchase Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. As used in this Amendment:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. "  ***Amendment 13 Period*** "**  shall mean the period from December 1, 2020 through
September 30, 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. [\*\*\*]

3. This Amendment shall become effective as of the Amendment No. 13 Effective Date upon satisfaction of all
of the following conditions precedent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Receipt by each Party of a copy of this Amendment, duly executed and delivered by American and Contractor.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Contractor shall have obtained all consents and approvals required in connection with the execution, delivery
and performance by Contractor of this Amendment.

4. The Parties hereby acknowledge and represent to each other that after giving effect to the terms hereof, each
representation and warranty of Contractor contained in the Capacity Purchase Agreement [\*\*\*] is true and correct in all material respects on the Amendment No. 13 Effective Date.

5. Except as amended and modified hereby, any and all of the terms and provisions of the Capacity Purchase
Agreement shall remain in full force and effect and are hereby in all respects ratified and confirmed by American and Contractor. Each of American and Contractor hereby agrees that the amendments and modifications herein contained shall in no manner
affect or impair the liabilities, duties and obligations of American or Contractor under the Capacity Purchase Agreement. Each reference in the Capacity Purchase Agreement to "this Agreement," "hereunder," "hereof,"
"herein" or words of like import, and each reference in the Capacity Purchase Agreement or other agreements, documents or other instruments executed and delivered pursuant to the Capacity Purchase Agreement to the "Capacity Purchase
Agreement", shall mean and be a reference to the Capacity Purchase Agreement as amended by this Amendment.

6. THIS AMENDMENT, THE CAPACITY PURCHASE AGREEMENT, THE OTHER RELATED AGREEMENTS AND THE OTHER DOCUMENTS EXECUTED
IN CONNECTION HEREWITH AND THEREWITH WHEN TAKEN TOGETHER REPRESENT THE ENTIRE AGREEMENT BETWEEN THE PARTIES WITH RESPECT TO THE SUBJECT MATTER HEREOF AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR ORAL AGREEMENTS OF THE
PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

***[Remainder of Page Intentionally Left Blank; Signature Page Follows]***

------

IN WITNESS WHEREOF, American and Contractor have executed this Amendment as of the Amendment No. 13 Effective Date.

---

| | |
|:---|:---|
| **AMERICAN AIRLINES, INC.** | **AMERICAN AIRLINES, INC.** |
| By: | /s/ Devon May |
|  | Name: Devon May |
|  | Title Senior Vice President, Finance &American Eagle |
| **REPUBLIC AIRWAYS INC.** | **REPUBLIC AIRWAYS INC.** |
| By: | /s/ Chad Pulley |
|  | Name: Chad Pulley |
|  | Title VP, General Counsel & Secretary |

---

## Exhibit 10.25

**Exhibit 10.25.15** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.**![LOGO](g944307g0812221825135.jpg)

May 28, 2021

***<u>Via E-mail and FedEx</u>***

Republic Airways Inc.

8909 Purdue Road

Suite 300

Indianapolis, IN 46268

Attention: Chief Financial Officer

[\*\*\*]

Ladies and Gentlemen:

Republic Airways Inc. ("***Contractor***") and American Airlines, Inc., a Delaware corporation ("***American***"), ****entered into that certain Capacity Purchase Agreement dated as of January 23, 2013 (as amended, supplemented or otherwise modified from time to time in accordance with the terms thereof, the ***"Capacity Purchase Agreement***"). It is in the best interests of the parties hereto to further amend the Capacity Purchase Agreement to reflect the agreements set forth in this letter agreement (this ***"Amendment No. 14***"). All capitalized terms that are used herein, but not defined, shall have the meanings assigned to them in the Capacity Purchase Agreement.

For and in consideration of the mutual covenants and agreements herein contained, American, on the one hand, and Contractor, on the other hand, agree to the following with respect to the Capacity Purchase Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Amendment</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. *Schedule 1(c)* of the Capacity Purchase Agreement (Owned EMB-170s) is hereby replaced with  ***Schedule 1(c)*** **  attached hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Miscellaneous</u>. Except as amended and modified hereby, any and all of the terms and provisions of the
Capacity Purchase Agreement shall remain in full force and effect and are hereby in all respects ratified and confirmed by American and Contractor. Each of American and Contractor hereby agrees that the amendments and modifications herein contained
shall in no manner affect or impair the liabilities, duties and obligations of American or Contractor under the Capacity Purchase Agreement. Each reference in the Capacity Purchase Agreement to "this Agreement," "hereunder,"
"hereof," "herein" or words of like import, and each reference in the Capacity Purchase Agreement or other agreements, documents or other instruments executed and delivered pursuant to the Capacity Purchase Agreement to the
"Capacity Purchase Agreement", shall mean and be a reference to the Capacity Purchase Agreement as amended by this Amendment No. 14. THIS AMENDMENT NO. 14, THE CAPACITY PURCHASE AGREEMENT, THE OTHER RELATED AGREEMENTS AND

------

![LOGO](g944307g0812221825135.jpg)

THE OTHER DOCUMENTS EXECUTED IN CONNECTION HEREWITH AND THEREWITH WHEN TAKEN TOGETHER REPRESENT THE ENTIRE AGREEMENT BETWEEN THE PARTIES WITH RESPECT TO THE SUBJECT MATTER HEREOF AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

***[Remainder of Page Intentionally Left Blank; Signature Page Follows]***

------

![LOGO](g944307g0812221825135.jpg)

If you are in agreement with the foregoing, please sign where indicated below and return a signed copy of this Amendment No. 14 to us at the address set forth in the Capacity Purchase Agreement.

---

| | |
|:---|:---|
| Very truly yours, | Very truly yours, |
| AMERICAN AIRLINES, INC. | AMERICAN AIRLINES, INC. |
| By: | /s/ Devon May |
|  | Name: Devon May |
|  | Title: SVP, Finance & American Eagle |
| Acknowledged and Agreed: | Acknowledged and Agreed: |
| REPUBLIC AIRWAYS INC. | REPUBLIC AIRWAYS INC. |
| By: | /s/ Joseph P. Allman |
|  | Name: Joseph P. Allman |
|  | Title: SVP, CFO |

---

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; cc: | Republic Airways Inc. |
|  | 8909 Purdue Road, Suite 300 |
|  | Indianapolis, IN 46268 |
|  | Attention: Vice President, General Counsel |
|  | [\*\*\*] |

---

***Signature Page to Amendment No. 14***

------

![LOGO](g944307g0812221825135.jpg)

**SCHEDULE l(c)** 

[\*\*\*]

## Exhibit 10.25

**Exhibit 10.25.16** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

**AMENDMENT NO. 15** 

**TO** 

**<u>CAPACITY PURCHASE AGREEMENT</u>**

This Amendment No. 15 to Capacity Purchase Agreement (this "***Amendment***") is dated as of July 26, 2022 and effective as of October l, 2021 (the "***Amendment No. 15 Effective Date***"), between American Airlines, Inc., a Delaware corporation (together with its successors and permitted assigns, "***American***"), and Republic Airways Inc. (together with its permitted successors and assigns, "***Contractor***").

WHEREAS, on January 23, 2013, American. entered into that certain Capacity Purchase Agreement with Contractor (as amended, modified and supplemented from time to time, the "***Capacity Purchase Agreement***") to establish the terms by which Contractor will provide regional airline services utilizing certain Covered Aircraft on behalf of American;

WHEREAS, on February 28, 2013, American entered into that certain Amendment No. 1 to Capacity Purchase Agreement with Contractor;

WHEREAS, on September 2, 2016, American entered into that certain Amendment No. 2 to Capacity Purchase Agreement with Contractor (as such Amendment No. 2 was amended by that certain Letter Agreement dated as of October 11, 2016);

WHEREAS, on October 12, 2017, American entered into that certain Amendment No. 3 to Capacity Purchase Agreement with Contractor;

WHEREAS, on November 3, 2017, American entered into that certain Amendment No. 4 to Capacity Purchase Agreement with Contractor;

WHEREAS, on December 15, 2017, American entered into that certain Amendment No. 5 to Capacity Purchase Agreement with Contractor;

WHEREAS, on February 23, 2018, American entered into that certain Amendment No. 6 to Capacity Purchase Agreement with Contractor;

WHEREAS, on September 28, 2018, American entered into that certain Amendment No. 7 to Capacity Purchase Agreement with Contractor;

WHEREAS, on April 23, 2019, American entered into that certain Amendment No. 8 to Capacity Purchase Agreement with Contractor;

WHEREAS, December 16, 2019, American entered into that certain Amendment No. 9 to Capacity Purchase Agreement with Contractor;

------

WHEREAS, April 8, 2020, American entered into that certain Amendment No. 10 to Capacity Purchase Agreement with Contractor;

WHEREAS, June 22, 2020, American entered into that certain Supplemental Agreement and Amendment No, 11 to Capacity Purchase Agreement with Contractor;

WHEREAS, on December 17, 2020, American entered into that certain Supplemental Agreement and Amendment No. 12 to Capacity Purchase Agreement with Contractor;

WHEREAS, on May 26, 2021, American entered into that certain Supplemental Agreement and Amendment No. 13 to Capacity Purchase Agreement with Contractor;

WHEREAS, on May 28, 2021, American entered into that certain Amendment No. 14 to Capacity Purchase Agreement with Contractor;

WHEREAS, it is in the best interests of the parties hereto to further amend the Capacity Purchase Agreement to reflect the agreements set forth herein; and

WHEREAS, all capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to them in the Capacity Purchase Agreement.

NOW, THEREFORE, for and in consideration of the mutual covenants and agreements herein contained, American, on the one hand, and Contractor, on the other hand, agree to the following with respect to the Capacity Purchase Agreement:

1. *Section 3.07(b)(i)* (Covered Aircraft) of the Capacity Purchase Agreement is hereby
amended and restated to read as follows:

[\*\*\*]

2. *Section 3.07(c) (* [\*\*\*] *)* of the Capacity Purchase Agreement is hereby amended
to add the following sentence to the beginning thereof:

"The Parties acknowledge and agree that the [\*\*\*] shall be [\*\*\*]."

3. *Section 3.07(c)(i)(A)* ([\*\*\*]) of the Capacity Purchase Agreement is hereby amended
and restated to read as follows:

[\*\*\*]

4. The first sentence of *Section 3.07(d) (* [\*\*\*] *)* of the Capacity Purchase
Agreement is hereby amended and restated to read as follows:

[\*\*\*]

5. *Section 6.09(a)(i) (* [\*\*\*] *)* of the Capacity Purchase Agreement is hereby
amended and restated to read as follows:

"(i) [Reserved]."

------

6. *Section 6.09(b)(i) (* [\*\*\*] *)* of the Capacity Purchase Agreement is hereby
amended and restated to read as follows:

"(i) [Reserved]"

7. *Article VI (Other Obligations of Contractor)* of the Capacity Purchase Agreement is hereby amended by
adding the following [\*\*\*] to the end thereof:

[\*\*\*]

8. *Section 11.02(b)(ix)* of the Capacity Purchase Agreement is hereby amended and
restated to read as follows:

"(ix) Intentionally deleted."

9. *Section 1l.02(d)(iii)(B)* of the Capacity Purchase Agreement is hereby amended and
restated to read as follows:

[\*\*\*]

10. *Section 11.02(d)(iii)(C)* is hereby amended and restated to read as follows:

[\*\*\*]

11. *Schedule 1(c) (Owned EMB-170s)* of the Capacity Purchase
Agreement is hereby replaced with *Schedule 1(c)* attached hereto.

12. The third sentence of *Section I of Schedule 3* to the Capacity Purchase Agreement is hereby amended and
restated to read as follows:

[\*\*\*]

13. The first sentence of the second paragraph of *Section IV of Schedule 7* to the Capacity Purchase
Agreement is hereby amended and restated to read as follows:

[\*\*\*]

14. *Section IV.A. of Schedule 7* to the Capacity Purchase Agreement is hereby amended and restated to read as
follows:

[\*\*\*]

15. The introductory paragraph to *Section IV.D. of Schedule 7* to the Capacity Purchase Agreement is hereby
amended to remove the words [\*\*\*]

16. *Article IV (* [\*\*\*] *) of Schedule 7* to the Capacity Purchase Agreement is hereby amended by adding
the following *Section E* to the end thereof:

[\*\*\*]

------

17. *Exhibit A* (Definitions) of the Capacity Purchase Agreement is hereby amended by adding the following new
definitions in the appropriate alphabetical order:

[\*\*\*]

[\*\*\*]

[\*\*\*]

[\*\*\*]

[\*\*\*]

[\*\*\*]

[\*\*\*]

[\*\*\*]

[\*\*\*]

[\*\*\*]

[\*\*\*]

[\*\*\*]

[\*\*\*]

"***Schedule Period***" shall mean the days in calendar month(s) attributable to a [\*\*\*].

[\*\*\*]

[\*\*\*]

[\*\*\*]

[\*\*\*]

18. *Exhibit A* (Definitions) of the Capacity Purchase Agreement is hereby amended by deleting the definitions
for [\*\*\*] in their entirety.

19. The definition of [\*\*\*] in *Exhibit A* (Definitions) of the Capacity Purchase Agreement is hereby amended
to remove the words [\*\*\*]

20. <u>Additional Agreements of the Parties</u>. The Parties further agree to the following with respect to the
Capacity Purchase Agreement:

[\*\*\*]

------

21. This Amendment shall become effective as of the Amendment No. 15 Effective Date upon satisfaction of all
of the following conditions precedent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Receipt by American of each of the following, in form and substance reasonably satisfactory to American:
(i) a copy of this Amendment, duly executed and delivered by Contractor; and (ii) any other documents or agreements reasonably requested by American in connection with the transactions contemplated by this Amendment.

22. The Parties hereby acknowledge and represent to each other that after giving effect to the terms hereof, each
representation and warranty of Contractor contained in the Capacity Purchase Agreement [\*\*\*] is true and correct in all material respects on the Amendment No. 15 Effective Date.

23. Except as amended and modified hereby, any and all of the terms and provisions of the Capacity Purchase
Agreement shall remain in full force and effect and are hereby in all respects ratified and confirmed by American and Contractor. Each of American and Contractor hereby agrees that the amendments and modifications herein contained shall in no manner
affect or impair the liabilities, duties and obligations of American or Contractor under the Capacity Purchase Agreement. Each reference in the Capacity Purchase Agreement to "this Agreement," "hereunder," "hereof,"
"herein" or words of like import, and each reference in the Capacity Purchase Agreement or other agreements, documents or other instruments executed and delivered pursuant to the Capacity Purchase Agreement to the "Capacity Purchase
Agreement", shall mean and be a reference to the Capacity Purchase Agreement as amended by this Amendment.

24. THIS AMENDMENT, THE CAPACITY PURCHASE AGREEMENT, THE OTHER RELATED AGREEMENTS AND THE OTHER DOCUMENTS EXECUTED
IN CONNECTION HEREWITH AND THEREWITH WHEN TAKEN TOGETHER REPRESENT THE ENTIRE AGREEMENT BETWEEN THE PARTIES WITH RESPECT TO THE SUBJECT MATTER HEREOF AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR ORAL AGREEMENTS OF THE
PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

***[Remainder of Page Intentionally Left Blank; Signature Page Follows]***

------

IN WITNESS WHEREOF, American and Contractor have executed this Amendment as of the Amendment No. 15 Effective Date.

---

| | | |
|:---|:---|:---|
| **AMERICAN AIRLINES, INC.** | **AMERICAN AIRLINES, INC.** | **AMERICAN AIRLINES, INC.** |
| By: | /s/ Brandon Kahle | /s/ Brandon Kahle |
|  | Name: | Brandon Kahle |
|  | Title: | Vice President, Regional |
|  |  | Operations & Planning |
| **REPUBLIC AIRWAYS INC.** | **REPUBLIC AIRWAYS INC.** | **REPUBLIC AIRWAYS INC.** |
| By: | /s/ Paul Kinstedt | /s/ Paul Kinstedt |
|  | Name: Paul Kinstedt | Name: Paul Kinstedt |
|  | Title: SVP/COO | Title: SVP/COO |

---

------

**<u>SCHEDULE 1(c)</u>**

[\*\*\*]

## Exhibit 10.25

**Exhibit 10.25.17** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

**AMENDMENT NO. 16** 

**TO** 

**<u>CAPACITY PURCHASE AGREEMENT</u>**

This Amendment No. 16 to Capacity Purchase Agreement (this "***Amendment***") is dated as of February 24, 2023 and made effective as of January 1, 2023 (the "***Amendment No. 16 Effective Date***"), between American Airlines, Inc., a Delaware corporation (together with its successors and permitted assigns, "***American***"), and Republic Airways Inc. (together with its permitted successors and assigns, "***Contractor***").

WHEREAS, on January 23, 2013, American entered into that certain Capacity Purchase Agreement with Contractor (as amended, modified and supplemented from time to time, the "***Capacity Purchase Agreement***") to establish the terms by which Contractor will provide regional airline services utilizing certain Covered Aircraft on behalf of American;

WHEREAS, on February 28, 2013, American entered into that certain Amendment No. 1 to Capacity Purchase Agreement with Contractor;

WHEREAS, on September 2, 2016, American entered into that certain Amendment No. 2 to Capacity Purchase Agreement with Contractor (as such Amendment No. 2 was amended by that certain Letter Agreement dated as of October 11, 2016);

WHEREAS, on October 12, 2017, American entered into that certain Amendment No. 3 to Capacity Purchase Agreement with Contractor;

WHEREAS, on November 3, 2017, American entered into that certain Amendment No. 4 to Capacity Purchase Agreement with Contractor;

WHEREAS, on December 15, 2017, American entered into that certain Amendment No. 5 to Capacity Purchase Agreement with Contractor;

WHEREAS, on February 23, 2018, American entered into that certain Amendment No. 6 to Capacity Purchase Agreement with Contractor;

WHEREAS, on September 28, 2018, American entered into that certain Amendment No. 7 to Capacity Purchase Agreement with Contractor;

WHEREAS, on April 23, 2019, American entered into that certain Amendment No. 8 to Capacity Purchase Agreement with Contractor;

WHEREAS, December 16, 2019, American entered into that certain Amendment No. 9 to Capacity Purchase Agreement with Contractor;

------

WHEREAS, April 8, 2020, American entered into that certain Amendment No. 10 to Capacity Purchase Agreement with Contractor;

WHEREAS, June 22, 2020, American entered into that certain Supplemental Agreement and Amendment No. 11 to Capacity Purchase Agreement with Contractor;

WHEREAS, on December 17, 2020, American entered into that certain Supplemental Agreement and Amendment No. 12 to Capacity Purchase Agreement with Contractor;

WHEREAS, on May 26, 2021, American entered into that certain Supplemental Agreement and Amendment No. 13 to Capacity Purchase Agreement with Contractor;

WHEREAS, on May 28, 2021, American entered into that certain Amendment No. 14 to Capacity Purchase Agreement with Contractor;

WHEREAS, on July 26, 2022, American entered into that certain Amendment No. 15 to Capacity Purchase Agreement with Contractor;

WHEREAS, it is in the best interests of the parties hereto to further amend the Capacity Purchase Agreement to reflect the agreements set forth herein; and

WHEREAS, all capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to them in the Capacity Purchase Agreement.

NOW, THEREFORE, for and in consideration of the mutual covenants and agreements herein contained, American, on the one hand, and Contractor, on the other hand, agree to the following with respect to the Capacity Purchase Agreement:

1. The following shall be added as the third sentence of *Section 3.01(a)* of the Capacity
Purchase Agreement (Use of Covered Aircraft – Implementation Dates):

On or before [\*\*\*], the Parties shall [\*\*\*].

2. The first sentence of *Section 3.07(b)* of the Capacity Purchase Agreement (Additional EMB-170 Covered Aircraft) is hereby deleted in its entirety.

3. *Section II.A*. of *Schedule 7* of the Capacity Purchase Agreement ([\*\*\*]) is hereby amended and
restated to read as follows:

[\*\*\*]

4. *Section II.B*. of *Schedule 7* of the Capacity Purchase Agreement ([\*\*\*]) is hereby amended and
restated to read as follows:

[\*\*\*]

5. *Section II.C*. of *Schedule 7* of the Capacity Purchase Agreement ([\*\*\*]) is hereby amended and
restated to read as follows:

[\*\*\*]

------

6. The following shall be added as *Section VII* of *Schedule 7* of **  the Capacity Purchase
Agreement ([\*\*\*]):

[\*\*\*]

7. Exhibit A (Definitions) of the Capacity Purchase Agreement is hereby amended by adding the following new
definitions in the appropriate alphabetical order:

"***Amendment No. 16 Effective Date***" shall mean January 1, 2023.

8. Contractor represents, warrants and covenants to American that [\*\*\*].

9. The Parties hereby acknowledge and represent to each other that after giving effect to the terms hereof, each
representation and warranty of Contractor contained in the Capacity Purchase Agreement [\*\*\*] is true and correct in all material respects on the Amendment No. 16 Effective Date.

10. Except as amended and modified hereby, any and all of the terms and provisions of the Capacity Purchase
Agreement shall remain in full force and effect and are hereby in all respects ratified and confirmed by American and Contractor. Each of American and Contractor hereby agrees that the amendments and modifications herein contained shall in no manner
affect or impair the liabilities, duties and obligations of American or Contractor under the Capacity Purchase Agreement. Each reference in the Capacity Purchase Agreement to "this Agreement," "hereunder," "hereof,"
"herein" or words of like import, and each reference in the Capacity Purchase Agreement or other agreements, documents or other instruments executed and delivered pursuant to the Capacity Purchase Agreement to the "Capacity Purchase
Agreement", shall mean and be a reference to the Capacity Purchase Agreement as amended by this Amendment.

11. THIS AMENDMENT, THE CAPACITY PURCHASE AGREEMENT, THE OTHER RELATED AGREEMENTS AND THE OTHER DOCUMENTS EXECUTED
IN CONNECTION HEREWITH AND THEREWITH WHEN TAKEN TOGETHER REPRESENT THE ENTIRE AGREEMENT BETWEEN THE PARTIES WITH RESPECT TO THE SUBJECT MATTER HEREOF AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR ORAL AGREEMENTS OF THE
PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

***[Remainder of Page Intentionally Left Blank; Signature Page Follows]***

------

IN WITNESS WHEREOF, American and Contractor have executed this Amendment as of the Amendment No. 16 Effective Date.

---

| | |
|:---|:---|
| **AMERICAN AIRLINES, INC.** | **AMERICAN AIRLINES, INC.** |
| By: | /s/ Brandon Kahle |
|  | Name: BrandonKahle |
|  | Title: VicePresident, Regional Operations & Planning |
| **REPUBLIC AIRWAYS INC.** | **REPUBLIC AIRWAYS INC.** |
| By: | /s/ Joseph P. Allman |
| Name: | Joseph P. Allman |
| Title: | SVP, Chief Financial Officer |

---

## Exhibit 10.25

**Exhibit 10.25.18** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.**![LOGO](g944307g0812222750497.jpg)

April 12, 2023

Republic Airways Inc.

8909 Purdue Road, Suite 300

Indianapolis, IN 46268

Attention: Chief Financial Officer; Senior Vice President, General Counsel

[\*\*\*]

**RE: Owned EMB-170 Tail Deliveries** 

Ladies and Gentlemen,

Reference is made to that certain Capacity Purchase Agreement, dated as of January 23, 2013, between American Airlines, Inc., a Delaware corporation ("***American***") and Republic Airways Inc. ("***Contractor***") (as amended by American and Contractor from time to time in accordance with the provisions thereof, and together with all attachments, exhibits and schedules thereto, the "***Capacity Purchase Agreement***"). Capitalized terms used but not defined in this amendment (this "***Amendment No. 17***") shall have the meanings set forth in the Capacity Purchase Agreement.

The Capacity Purchase Agreement as in effect immediately prior to the Amendment No. 17 Effective Date (as defined below) set forth [\*\*\*]. Subject to the terms and conditions in Section 3.07(a) of the Capacity Purchase Agreement, American has the right to [\*\*\*].

Prior to the Amendment No. 17 Effective Date, pursuant to Section 3.07 of the Capacity Purchase Agreement, the [\*\*\*] have been included as Covered Aircraft.

Pursuant to Amendment No. 15, the [\*\*\*].

Section 1(a) of this Amendment No. 17 serves as [\*\*\*].

[\*\*\*]

For and in consideration of the mutual covenants and agreements herein contained, American, on the one hand, and Contractor, on the other hand, agree as follows:

**1.** [\*\*\*]

**2.** [\*\*\*]

**3.** **Other Amendments to Capacity Purchase Agreement** 

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Schedule 1(c) of the Capacity Purchase Agreement (Owned EMB-170s) is
hereby deleted in its entirety and replaced with Schedule 1(c) attached to this Amendment No. 17.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. As a result of this Amendment No. 17, there are [\*\*\*]

**4.** **Miscellaneous.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. This Amendment No. 17 shall become effective as of the date first set forth above (the
"  ***Amendment No. 17 Effective Date***") upon receipt by each Party of a copy of this Amendment No. 17, duly executed and delivered by American and Contractor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Contractor hereby acknowledges and represents to American that after giving effect to the terms hereof, each
representation and warranty of Contractor contained in the Capacity Purchase Agreement [\*\*\*] is true and correct in all material respects on the date first set forth above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Except as amended and modified hereby, any and all of the terms and provisions of the Capacity Purchase
Agreement shall remain in full force and effect and are hereby in all respects ratified and confirmed by the Parties. Each Party hereby agrees that the terms and conditions set forth herein shall in no manner affect or impair the liabilities, duties
and obligations of such Party under the Capacity Purchase Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. If any of the terms or provisions of this Amendment No. 17 conflict with any terms or provisions of the
Capacity Purchase Agreement, then the terms and provisions of this Amendment No. 17 shall govern and control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. THIS AMENDMENT NO. 17, THE CAPACITY PURCHASE AGREEMENT, AND THE OTHER DOCUMENTS EXECUTED IN CONNECTION
THEREWITH REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES WITH RESPECT TO THE SUBJECT MATTER HEREOF AND THEREOF AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL
AGREEMENTS BETWEEN THE PARTIES.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. This Amendment No. 17 may be executed in multiple counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same instrument. This Amendment No. 17 shall extend to and bind the successors and assigns of the respective Parties hereto. Each Party shall take all reasonable commercial actions in order
to effectuate the intent of this Amendment No. 17.

Kindly countersign below to indicate Contractor's agreement to the terms of this Amendment No. 17.

*[Signature page follows.]* 

------

Sincerely,

---

| |
|:---|
| **AMERICAN AIRLINES, INC.** |
| /s/ Brandon Kahle |
| Signature |
| Brandon Kahle |
| Name |
| VP Regional |
| Title |
| 4/12/23 |
| Date |
| Accepted and Agreed: |
| **REPUBLIC AIRWAYS INC.** |
| /s/ Joseph P. Allman |
| Signature |
| Joseph P. Allman |
| Name |
| SVP, CFO |
| Title |
| 4/13/2023 |
| Date |

---

*Signature Page to Amendment No. 17* 

------

**<u>SCHEDULE 1(c)</u>**

[\*\*\*]

## Exhibit 10.25

**Exhibit 10.25.19** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

**AMENDMENT NO. 18** 

**TO** 

**<u>CAPACITY PURCHASE AGREEMENT</u>**

This Amendment No. 18 to Capacity Purchase Agreement (this "***Amendment***") is dated as of December 22, 2023 (the "***Amendment No. 18 Effective Date***"), between American Airlines, Inc., a Delaware corporation (together with its successors and permitted assigns, "***American***"), and Republic Airways Inc. (together with its permitted successors and assigns, "***Contractor***").

WHEREAS, on January 23, 2013, American entered into that certain Capacity Purchase Agreement with Contractor (as amended, modified and supplemented from time to time, the "***Capacity Purchase Agreement***") to establish the terms by which Contractor will provide regional airline services utilizing certain Covered Aircraft on behalf of American;

WHEREAS, on February 28, 2013, American entered into that certain Amendment No. 1 to Capacity Purchase Agreement with Contractor;

WHEREAS, on September 2, 2016, American entered into that certain Amendment No. 2 to Capacity Purchase Agreement with Contractor (as such Amendment No. 2 was amended by that certain Letter Agreement dated as of October 11, 2016);

WHEREAS, on October 12, 2017, American entered into that certain Amendment No. 3 to Capacity Purchase Agreement with Contractor;

WHEREAS, on November 3, 2017, American entered into that certain Amendment No. 4 to Capacity Purchase Agreement with Contractor;

WHEREAS, on December 15, 2017, American entered into that certain Amendment No. 5 to Capacity Purchase Agreement with Contractor;

WHEREAS, on February 23, 2018, American entered into that certain Amendment No. 6 to Capacity Purchase Agreement with Contractor;

WHEREAS, on September 28, 2018, American entered into that certain Amendment No. 7 to Capacity Purchase Agreement with Contractor;

WHEREAS, on April 23, 2019, American entered into that certain Amendment No. 8 to Capacity Purchase Agreement with Contractor;

WHEREAS, December 16, 2019, American entered into that certain Amendment No. 9 to Capacity Purchase Agreement with Contractor;

WHEREAS, April 8, 2020, American entered into that certain Amendment No. 10 to Capacity Purchase Agreement with Contractor;

------

WHEREAS, June 22, 2020, American entered into that certain Supplemental Agreement and Amendment No. 11 to Capacity Purchase Agreement with Contractor;

WHEREAS, on December 17, 2020, American entered into that certain Supplemental Agreement and Amendment No. 12 to Capacity Purchase Agreement with Contractor;

WHEREAS, on May 26, 2021, American entered into that certain Supplemental Agreement and Amendment No. 13 to Capacity Purchase Agreement with Contractor;

WHEREAS, on May 28, 2021, American entered into that certain Amendment No. 14 to Capacity Purchase Agreement with Contractor;

WHEREAS, on July 26, 2022, American entered into that certain Amendment No. 15 to Capacity Purchase Agreement with Contractor;

WHEREAS, on February 24, 2023, American entered into that certain Amendment No. 16 to Capacity Purchase Agreement with Contractor;

WHEREAS, on April 12, 2023, American entered into that certain Amendment No. 17 to Capacity Purchase Agreement with Contractor;

WHEREAS, it is in the best interests of the parties hereto to further amend the Capacity Purchase Agreement to reflect the agreements set forth herein; and

WHEREAS, all capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to them in the Capacity Purchase Agreement.

NOW, THEREFORE, for and in consideration of the mutual covenants and agreements herein contained, American, on the one hand, and Contractor, on the other hand, agree to the following with respect to the Capacity Purchase Agreement:

1. American's Notice information contained in *Section 13.01* is hereby amended and
restated as follows:

**<u>If to American, to</u>**:

Attn: Managing Director – American Eagle

Strategy and Operations

American Airlines, Inc.

1 Skyview Drive

Fort Worth, TX 76155

Mail Drop 8D205

[\*\*\*]

with copies delivered at the same address to the attention of:

Senior Vice President, American Eagle and Cargo

[\*\*\*]

and

------

Vice President of Commercial and Deputy General Counsel

[\*\*\*]

**<u>If to American pursuant to Section</u> <u>13.06(b), a copy of such Notice shall also be provided to</u>**:

Attn: Corporate Communications Department

American Airlines, Inc.

1 Skyview Drive

Fort Worth, TX 76155

Mail Drop DFW-SV08 8C.2S.060A

[\*\*\*]

and

Attn: Managing Director - American Eagle

Strategy and Operations

American Airlines, Inc.

1 Skyview Drive

Fort Worth, TX 76155

Mail Drop 8D205

[\*\*\*]

**<u>And if to American pursuant to Exhibit D, to</u>**:

[\*\*\*], with a copy delivered personally or by prepaid overnight confirmed delivery service to the attention of:

Data Privacy Officer

American Airlines, Inc.

1 Skyview Drive

MD 8B503

Ft. Worth, TX 76155

2. *Schedule 1* of the Capacity Purchase Agreement (Covered Aircraft) is hereby deleted in its entirety and
replaced with *Schedule 1 (* [\*\*\*] *)* attached to this Amendment.

3. *Schedule 1(a)* of the Capacity Purchase Agreement ([\*\*\*]) is hereby deleted in its entirety and replaced
with *Schedule 1(a)(* [\*\*\*] *)* attached to this Amendment.

4. *Schedule 1(b)* of the Capacity Purchase Agreement ([\*\*\*]) is hereby deleted in its entirety and replaced
with *Schedule 1(b)* attached to this Amendment. Notwithstanding *Section 3.06(a)* of the Capacity Purchase Agreement, references to the [\*\*\*] in the Capacity Purchase Agreement shall be deemed to be references to the
[\*\*\*] .

------

5. *Schedule 1(c)* of the Capacity Purchase Agreement ([\*\*\*]) is hereby deleted in its entirety and replaced
with *Schedule 1(c)(* [\*\*\*] *)* attached to this Amendment.

6. Effective as of [\*\*\*], [\*\*\*] is hereby amended and restated to read as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. [Reserved]

7. Effective as of [\*\*\*], with respect to the Covered Aircraft [\*\*\*].

8. The Parties acknowledge and agree that:

[\*\*\*]

9. *Clause (v)* of *Section I(A)* of *Schedule 7* of the Capacity Purchase Agreement (Primary
Drivers) is hereby amended and restated to read as follows:

[\*\*\*]

10. Effective as of [\*\*\*] *, Item 3* in *Section I(B)* of *Schedule 7* of the Capacity Purchase
Agreement ([\*\*\*]) is hereby deleted and replaced with the following:

[\*\*\*]

11. Effective as of [\*\*\*], *Section II(A)* of *Schedule 7* of the Capacity Purchase Agreement ([\*\*\*]) is
hereby amended and restated to read as follows:

[\*\*\*]

12. *Section V* of *Schedule 7* of the Capacity Purchase Agreement ([\*\*\*]) is hereby amended and restated
to read as follows:

[\*\*\*]

13. *Section VI* of *Schedule 7* of the Capacity Purchase Agreement ([\*\*\*]) is hereby amended and
restated to read as follows:

[\*\*\*]

14. The definitions of [\*\*\*] and [\*\*\*] on *Exhibit A* of the Capacity Purchase Agreement are hereby amended
and restated to read as follows:

[\*\*\*]

15. *Exhibit A* (Definitions) of the Capacity Purchase Agreement is hereby amended by adding the following new
definitions in the appropriate alphabetical order:

------

"***Amendment No. 18***" shall mean that certain Amendment No. 18 to the Capacity Purchase Agreement between the Parties, dated as of December 22, 2023.

"***Amendment No. 18 Effective Date***" shall mean December 22, 2023.

16. The definition of [\*\*\*] on *Exhibit A* of the Capacity Purchase Agreement is hereby deleted.

17. For consideration of entry into this Amendment, Contractor agrees to [\*\*\*].

18. [\*\*\*]

19. The Parties hereby acknowledge and represent to each other that after giving effect to the terms hereof, each
representation and warranty of Contractor contained in the Capacity Purchase Agreement [\*\*\*] is true and correct in all material respects on the Amendment No. 18 Effective Date.

20. Except as amended and modified hereby, any and all of the terms and provisions of the Capacity Purchase
Agreement shall remain in full force and effect and are hereby in all respects ratified and confirmed by American and Contractor. Each of American and Contractor hereby agrees that the amendments and modifications herein contained shall in no manner
affect or impair the liabilities, duties and obligations of American or Contractor under the Capacity Purchase Agreement. Each reference in the Capacity Purchase Agreement to "this Agreement," "hereunder," "hereof,"
"herein" or words of like import, and each reference in the Capacity Purchase Agreement or other agreements, documents or other instruments executed and delivered pursuant to the Capacity Purchase Agreement to the "Capacity Purchase
Agreement", shall mean and be a reference to the Capacity Purchase Agreement as amended by this Amendment.

21. THIS AMENDMENT, THE CAPACITY PURCHASE AGREEMENT, THE OTHER RELATED AGREEMENTS AND THE OTHER DOCUMENTS EXECUTED
IN CONNECTION HEREWITH AND THEREWITH WHEN TAKEN TOGETHER REPRESENT THE ENTIRE AGREEMENT BETWEEN THE PARTIES WITH RESPECT TO THE SUBJECT MATTER HEREOF AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR ORAL AGREEMENTS OF THE
PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

***[Remainder of Page Intentionally Left Blank; Signature Page Follows]***

------

IN WITNESS WHEREOF, American and Contractor have executed this Amendment as of the Amendment No. 18 Effective Date.

---

| | |
|:---|:---|
| **AMERICAN AIRLINES, INC.** | **AMERICAN AIRLINES, INC.** |
| By: | /s/ Heather Garboden |
| Name: | Heather Garboden |
| Title: | Senior Vice President, American Eagle & Cargo |
| **REPUBLIC AIRWAYS INC.** | **REPUBLIC AIRWAYS INC.** |
| By: | /s/ Joseph P. Allman |
| Name: | Joseph P. Allman |
| Title: | Senior Vice President, CFO |

---

**Signature Page – Amendment No. 18 to the Capacity Purchase Agreement** 

------

**<u>SCHEDULE 1</u>**

[\*\*\*]

**SCHEDULE 1(a)**

------

**<u>SCHEDULE 1(a)</u>**

[\*\*\*]

**SCHEDULE 1(a)**

------

**<u>SCHEDULE 1(b)</u>**

**<u>RESERVED</u>**

**SCHEDULE 1(b)**

------

**<u>SCHEDULE 1(c)</u>**

[\*\*\*]

**SCHEDULE 1(c)**

## Exhibit 10.25

**Exhibit 10.25.20** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

**SUPPLEMENTAL AGREEMENT AND AMENDMENT NO. 19** 

**TO** 

**<u>CAPACITY PURCHASE AGREEMENT</u>**

This Supplemental Agreement and Amendment No. 19 to Capacity Purchase Agreement (this "***Amendment***") is dated as of July 7, 2025 (the "***Amendment No. 19 Effective Date***"), between American Airlines, Inc., a Delaware corporation (together with its successors and permitted assigns, "***American***"), and Republic Airways Inc. (together with its permitted successors and assigns, "***Contractor***").

WHEREAS, on January 23, 2013, American entered into that certain Capacity Purchase Agreement with Contractor (as amended, modified and supplemented from time to time, the "***Capacity Purchase Agreement***") to establish the terms by which Contractor will provide regional airline services utilizing certain Covered Aircraft on behalf of American;

WHEREAS, on February 28, 2013, American entered into that certain Amendment No. 1 to Capacity Purchase Agreement with Contractor;

WHEREAS, on September 2, 2016, American entered into that certain Amendment No. 2 to Capacity Purchase Agreement with Contractor (as such Amendment No. 2 was amended by that certain Letter Agreement dated as of October 11, 2016);

WHEREAS, on October 12, 2017, American entered into that certain Amendment No. 3 to Capacity Purchase Agreement with Contractor;

WHEREAS, on November 3, 2017, American entered into that certain Amendment No. 4 to Capacity Purchase Agreement with Contractor;

WHEREAS, on December 15, 2017, American entered into that certain Amendment No. 5 to Capacity Purchase Agreement with Contractor;

WHEREAS, on February 23, 2018, American entered into that certain Amendment No. 6 to Capacity Purchase Agreement with Contractor;

WHEREAS, on September 28, 2018, American entered into that certain Amendment No. 7 to Capacity Purchase Agreement with Contractor;

WHEREAS, on April 23, 2019, American entered into that certain Amendment No. 8 to Capacity Purchase Agreement with Contractor;

WHEREAS, December 16, 2019, American entered into that certain Amendment No. 9 to Capacity Purchase Agreement with Contractor ("***Amendment No. 9***");

------

WHEREAS, April 8, 2020, American entered into that certain Amendment No. 10 to Capacity Purchase Agreement with Contractor;

WHEREAS, June 22, 2020, American entered into that certain Supplemental Agreement and Amendment No. 11 to Capacity Purchase Agreement with Contractor;

WHEREAS, on December 17, 2020, American entered into that certain Supplemental Agreement and Amendment No. 12 to Capacity Purchase Agreement with Contractor;

WHEREAS, on May 26, 2021, American entered into that certain Supplemental Agreement and Amendment No. 13 to Capacity Purchase Agreement with Contractor;

WHEREAS, on May 28, 2021, American entered into that certain Amendment No. 14 to Capacity Purchase Agreement with Contractor;

WHEREAS, on July 26, 2022, American entered into that certain Amendment No. 15 to Capacity Purchase Agreement with Contractor;

WHEREAS, on February 24, 2023, American entered into that certain Amendment No. 16 to Capacity Purchase Agreement with Contractor;

WHEREAS, on April 12, 2023, American entered into that certain Amendment No. 17 to Capacity Purchase Agreement with Contractor;

WHEREAS, on December 22, 2023, American entered into that certain Amendment No. 18 to Capacity Purchase Agreement with Contractor;

WHEREAS, [\*\*\*];

WHEREAS, in consideration of the transactions contemplated by [\*\*\*], it is in the best interests of the parties hereto to further amend the Capacity Purchase Agreement to reflect the agreements set forth herein; and

WHEREAS, all capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to them in the Capacity Purchase Agreement.

NOW, THEREFORE, for and in consideration of the mutual covenants and agreements herein contained, American, on the one hand, and Contractor, on the other hand, agree to the following with respect to the Capacity Purchase Agreement:

1. Notwithstanding anything to the contrary in Section 15 of Amendment No. 9, effective [\*\*\*],
Section 15 of Amendment No. 9 shall be amended as further described below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Clause b. of Section 15 of Amendment No. 9 shall be amended and restated to read as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Commencing as of [\*\*\*], the tables below shall set forth [\*\*\*]. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Clause d. of Section 15 of Amendment No. 9 shall be amended and restated to read as follows:

[\*\*\*]

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Clause f. of Section 15 of Amendment No. 9 shall be amended and restated to read as follows:

[\*\*\*]

2. For the avoidance of doubt, (i) until the commencement of [\*\*\*], Section 15 of Amendment No. 9
shall continue in full force and effect as written without giving effect to <u>Section</u> <u>1</u> of this Amendment and (ii) immediately following [\*\*\*], Section 15 of Amendment No. 9 shall be reinstated and shall
continue in full force and effect as written without giving effect to <u>Section</u> <u>1</u> of this Amendment.

3. Effective as of [\*\*\*], Annex 2 ([\*\*\*]) to Schedule 7 ([\*\*\*]) to the Capacity Purchase Agreement is hereby
deleted in its entirety and replaced with <u>Annex 2</u> ([\*\*\*]) attached hereto. For the avoidance of doubt, (i) [\*\*\*] Annex 2 ([\*\*\*]) to Schedule 7 ([\*\*\*]) to the Capacity Purchase Agreement in effect as of the Amendment No. 19 Effective Date
(the [\*\*\*]) shall continue in full force and effect as written without giving effect to this <u>Section</u> <u>3</u> and (ii) immediately following [\*\*\*].

4. American's Notice information contained in Section 13.01 (Notices) to the Capacity Purchase Agreement
is hereby amended and restated as follows:

**<u>If to American, to</u>**:

Attn: Managing Director - American Eagle

Strategy and Operations

American Airlines, Inc.

1 Skyview Drive

Fort Worth, TX 76155

Mail Drop 8D205

[\*\*\*]

with copies delivered at the same address to the attention of:

Executive Vice President of American Eagle, Corporate Real Estate and Government Affairs

[\*\*\*]

and

Senior Vice President and Deputy General Counsel

[\*\*\*]

**<u>And if to American pursuant to Section</u> <u>13.06(b), a copy of such Notice shall also be provided to</u>**:

Attn: Corporate Communications Department

American Airlines, Inc.

1 Skyview Drive

Fort Worth, TX 76155

Mail Drop DFW-SV08 8C.2S.060A

[\*\*\*]

and

------

Attn: Managing Director - American Eagle

Strategy and Operations

American Airlines, Inc.

1 Skyview Drive

Fort Worth, TX 76155

Mail Drop 8D205

[\*\*\*]

**<u>If to American pursuant to Exhibit D, to</u>**:

[\*\*\*], with a copy delivered personally or by prepaid overnight confirmed delivery service to the attention of:

Data Privacy Officer

American Airlines, Inc.

1 Skyview Drive

MD8B503

Ft. Worth, TX 76155

5. Each Party hereby acknowledges and represents to the other Party that after giving effect to the terms hereof,
each representation and warranty of such Party contained in the Capacity Purchase Agreement [\*\*\*] is true and correct in all material respects on the Amendment No. 19 Effective Date.

6. Each of American and Contractor hereby agrees that except as amended and modified hereby, any and all of the
terms and provisions of the Capacity Purchase Agreement including the liabilities, duties and obligations of American or Contractor under the Capacity Purchase Agreement, shall remain in full force and effect and are hereby in all respects ratified
and confirmed by American and Contractor. Each reference in the Capacity Purchase Agreement to "this Agreement," "hereunder," "hereof," "herein" or words of like import, and each reference in the Capacity
Purchase Agreement or other agreements, documents or other instruments executed and delivered pursuant to the Capacity Purchase Agreement to the "Capacity Purchase Agreement", shall mean and be a reference to the Capacity Purchase
Agreement as amended by this Amendment.

7. THIS AMENDMENT, THE CAPACITY PURCHASE AGREEMENT, THE OTHER RELATED AGREEMENTS AND THE OTHER DOCUMENTS EXECUTED
IN CONNECTION HEREWITH AND THEREWITH WHEN TAKEN TOGETHER REPRESENT THE ENTIRE AGREEMENT BETWEEN THE PARTIES WITH RESPECT TO THE SUBJECT MATTER HEREOF AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR ORAL AGREEMENTS OF THE
PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

***[Remainder of Page Intentionally Left Blank; Signature Page Follows]***

------

IN WITNESS WHEREOF, American and Contractor have executed this Amendment as of the Amendment No. 19 Effective Date.

---

| | | |
|:---|:---|:---|
| **AMERICAN AIRLINES, INC.** | **AMERICAN AIRLINES, INC.** | **AMERICAN AIRLINES, INC.** |
| By: | /s Nathan J. Gatten | /s Nathan J. Gatten |
|  | Name: | Nathan J. Gatten |
|  | Title: | Executive Vice President of American Eagle, Corporate Real Estate and Government Affairs |
| **REPUBLIC AIRWAYS INC.** | **REPUBLIC AIRWAYS INC.** | **REPUBLIC AIRWAYS INC.** |
| By: | /s/ Joseph P. Allman | /s/ Joseph P. Allman |
| Name: | Joseph P. Allman | Joseph P. Allman |
| Title: | Senior Vice President, CFO | Senior Vice President, CFO |

---

**Signature Page – Amendment No. 19 to the Capacity Purchase Agreement** 

------

**ANNEX 2** 

[\*\*\*]

**Annex-2**

## Exhibit 10.26

**Exhibit 10.26.1** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

**DELTA CONNECTION** 

**<u>AGREEMENT</u>**

This Agreement (this "Agreement"), dated and effective the 13th day of January, 2005, is between Delta Air Lines, Inc., 1030 Delta Boulevard, Atlanta, Georgia 30320 ("Delta") Republic Airline, Inc. ("Republic" or "Operator"), 8909 Purdue Road, Indianapolis, Indiana 46268 and Republic Airways Holdings, Inc. ("RJET" provided that solely for purposes of Article 19.E hereof, RJET shall mean Republic Airways Holdings, Inc. and each of its subsidiaries), 8909 Purdue Road, Indianapolis, Indiana 46268.

WHEREAS, Delta operates the Delta Connection program; and

WHEREAS, Operator desires for Delta to perform and provide various marketing, schedule and fare related, and other services for Republic in connection with the Delta Connection program; and

WHEREAS, Delta desires for Operator to operate the Aircraft (as hereinafter defined) as a Delta Connection Carrier in connection with the Delta Connection program; and

WHEREAS, Delta is willing to perform and provide various marketing, schedule and fare related, and other services for Republic in connection with the Delta Connection program; and

WHEREAS, this Agreement will enhance the ability of Operator and Delta to serve the public and the communities that they serve or may choose to serve; and

NOW, THEREFORE, for and in consideration of the mutual undertakings set for herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Delta, Operator and RJET, intending to be legally bound, hereby agree as follows:

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<u>ARTICLE 1. FARES AND RULES PUBLICATION</u>.

A. <u>Delta Connection Program and Appointment of Delta as Agent.</u> Republic hereby appoints Delta as its agent to publish its fares, schedules and related information under Delta's two letter flight designator code in city pairs specified by Delta on the sixteen (16), including one (1) spare, Embraer ERJ 170 aircraft set forth on <u>Exhibit A</u> attached hereto and any other aircraft subsequently agreed by the parties to be operated by Republic (collectively, the "Aircraft"), and Delta hereby accepts such appointment. Delta hereby grants Republic the authority to operate as a Delta Connection Carrier, and Republic hereby accepts such grant, to conduct air transportation operating the Aircraft utilizing certain services together with certain trademarks and service marks owned by Delta or which Delta has the right to use, all as provided herein.

B. <u>Fares, Rules and Seat Inventory</u>. Delta, in its sole discretion, shall establish and publish all fares and related tariff rules for all seats on the Aircraft, including fares and rules for local traffic in the city pairs served by such Aircraft. Operator shall not schedule the Aircraft, nor publish any fares, tariffs, or related information for the Aircraft. In addition, Delta will control all seat inventory and revenue management decisions for the Aircraft.

C. <u>Schedules Publication</u>. Delta, in its sole discretion, shall establish and publish all schedules for the Aircraft, including city-pairs served, frequencies, and timing of scheduled departures. Republic shall operate the Aircraft in the city pairs designated by Delta, subject to the frequency, scheduling and other requirements established by Delta from time to time and in a manner at least comparable to Republic's operational standards as of the date hereof.

Delta will notify Republic of schedule times, frequencies and related information for the Aircraft as sufficiently in advance of the schedule publication date so that the information can be properly disseminated to Republic for pilot and flight attendant staffing, and related operational requirements. In all cases schedules shall make reasonable accommodation for Republic's operational needs, including without limitation, crew overnights and maintenance requirements for the Aircraft.

In the event Delta changes the hub location served by the Aircraft, if any, Delta shall provide Republic with 90 days prior written notice of such change and Delta and Republic shall meet as soon as practicably possible to review and revise the Direct Costs and corresponding Base Compensation as a result of such change in the manner provided in Section 4(E) hereof. In the event Delta opens or closes a non-hub station served or to be served by Republic, Delta shall provide Republic with 60 days prior written notice of such opening or closing unless such station is staffed by, or to be staffed by, Republic, in which case Delta shall provide Republic with 90 days prior written notice of such opening or closing.

<u>ARTICLE 2. EXCLUSIVITY</u>.

With the exception of (i) aircraft operated or committed to be operated for United Air Lines, Inc. ("United") as of the date of this Agreement ("Committed Aircraft") pursuant to (a) a codeshare agreement in place as of the date of this Agreement between Operator and United (the "Existing Codeshare Agreement"), or (b) any amendment to or modification of the Existing Codeshare Agreement, including an agreement with a successor to such carrier that assumes the Existing

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Codeshare Agreement by operation of law, in each case that does not increase the number of Committed Aircraft under the Existing Codeshare Agreement (a "Permitted Codeshare Amendment"), (ii) any Committed Aircraft that are operated under a Reverse Codeshare Agreement (as defined below), Operator agrees not to (a) operate for another carrier, nor have operated for it under a Reverse Codeshare Agreement, "Hub Service" (as defined below) nor (b) operate any flights under its own flight designator code (except for flights operated pursuant to a permissible Reverse Codeshare Agreement), in each case into or out of the following locations, subject to Delta continuing to maintain significant operations at such locations: **[\*\*\*]** (each, a "Delta Hub"). For purposes of this Agreement, (y) a "Reverse Codeshare Agreement" shall mean an agreement pursuant to which Republic operates Committed Aircraft under the designator code of another carrier or under Republic's RW designator code and the other party to an Existing Codeshare Agreement or a Permitted Codeshare Amendment remains obligated to compensate Republic with respect to flights operated under such designator code; and (z) "Hub Service" shall mean operating greater than **[\*\*\*]** flights per day into or out of a Delta Hub location.

<u>ARTICLE 3. COMPENSATION</u>.

A. <u>Base Compensation.</u>

In exchange for the flying and operation of the Aircraft, Delta shall pay Republic one hundred percent (100%) of the Base Rate Costs, the Reimbursable Costs and the Pass Through Costs (each as such term is defined below, and collectively, the "Direct Costs") and 100% of the Other Reimbursable Costs relating to all flights undertaken by Republic in connection with the Delta Connection Program using the Aircraft. In addition, in any month in which Republic achieves a completion rate for the Delta Connection Flights of at least **[\*\*\*]**% (or at least **[\*\*\*]**% until such time as Republic has taken delivery of 7 of the Aircraft plus 1 spare) Delta shall pay Republic a mark-up of **[\*\*\*]**%) of such Direct Costs incurred during such month (the "Mark-Up"), subject to certain limitations set forth below.

(i) The "Base Rate Costs" shall include all direct, cash operating costs, (specifically excluding any prepayments except as expressly provided herein) based upon the model attached hereto as <u>Exhibit B</u> and subject to the minimum/maximum Aircraft Utilization Requirements set forth on <u>Exhibit D</u> (the "Minimum Utilization Requirements").

(ii) The "Reimbursable Costs" shall include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(1)</u> <u>Engine Maintenance Expense</u>—Republic's actual engine maintenance costs incurred as provided on Schedule A, or in the event Republic enters into a "power by the hour" agreement with respect to the Aircraft engines, the charges under such "power by the hour" agreement; provided, however, in any event, such costs shall be capped at **[\*\*\*]** per hour for purposes of this Agreement. Such costs shall not include **[\*\*\*]** as such costs are incurred.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(2)</u> <u>Aircraft Rent/Ownership Costs</u>—Republic's actual aircraft rent/ownership expenses for the Aircraft; provided, however any Mark-Up of the Aircraft Rent/Ownership Costs shall be capped at an amount equivalent to a monthly rate of **[\*\*\*]** for each ERJ-170 Aircraft. In the event that Republic leases an Aircraft, the Aircraft Rent/Ownership Costs for such Aircraft shall be the amount payable by Republic under the respective lease. In the event Republic owns an Aircraft subject to debt financing, the Aircraft Rent/Ownership Costs for such Aircraft shall be the amount payable by Republic as debt payments in respect of such Aircraft, calculated as if **[\*\*\*]**% of the Aircraft purchase price was financed by such debt. In the event that the amounts financed under such lease or debt financing do not include Republic's third party costs and expenses incurred in connection with the acquisition and financing of such Aircraft, the Aircraft Rent/Ownership costs shall include, in addition to the amount of such lease payments or debt payments, the additional costs that would have been incurred in financing, under the terms of the respective lease or debt financing, **[\*\*\*]**% of such costs and expenses, not to exceed **[\*\*\*]**% of the purchase price of the respective Aircraft (the "Additional Financing Amount").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) <u>Fuel Expense</u> - Republic's actual Aircraft fuel expenses; provided, however, any Mark-Up of the Fuel Expense shall be capped at an amount equivalent to a **[\*\*\*]** per gallon fuel price.

(iii) The "Pass Through Costs" shall include the following variable costs for which Delta shall bear the risk of price fluctuations, provided that such costs shall be reconciled on a monthly basis to reflect the actual costs incurred by Operator:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Landing Fees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Hull Insurance and any other insurance required by Delta under Article 14;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Passenger Liability Costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) War Risk Insurance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Glycol (but not if provided by Delta or an affiliate of Delta);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Catering Costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) Recurring Training Costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) Property Taxes on the Aircraft; provided, however, any Mark-Up of any
Property Tax shall be capped at an amount equivalent to [\*\*\*]% of the value of the Aircraft.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) The cost of any Support Services (as defined below) not provided by Delta at its own expense; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) All costs to change the livery of any Aircraft pursuant to any request by Delta.

B. <u>Other Reimbursable Costs</u>.

Delta shall reimburse Republic for one hundred percent (100%) of the costs incurred for the following items, but it is expressly agreed that no Mark-Up of such costs shall be paid by Delta:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Any Federal Aviation Administration ("FAA") or Department of Transportation ("DOT") fines
administered or levied against Operator due to an action or omission principally caused by Delta or an affiliate of Delta; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Start-Up Training Costs associated with operating the Aircraft;
provided, however in no event shall Delta be required to reimburse Republic for such costs in the aggregate in excess of **[\*\*\*]**.

C. <u>Non-Reimbursable Costs</u>.

The parties hereby acknowledge and agree that Delta <u>shall not</u> be responsible, nor reimburse, Operator for any of the following costs:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Any and all **[\*\*\*]** and/or **[\*\*\*]**;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Any and all FAA or DOT fines administered or levied against Operator due to action or omission not principally
caused by Delta or an affiliate of Delta; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Any depreciation, amortization or interest expense relating to the Aircraft, except to the extent included in
the Aircraft Rent/Ownership Costs.

D. <u>Incentive Compensation</u>.

1. <u>Monthly Incentive Compensation</u>. In addition to the Base Compensation (as defined below), Republic shall have the opportunity to earn additional compensation (the "Monthly Incentive Compensation") based upon its completion rate (actual) and on-time arrival rate for each month, each in connection with the operation of the Aircraft. For each month during the Term of this Agreement that Republic has a completion rate for its Delta Connection Flights of **[\*\*\*]**% or greater, Delta shall pay Republic an additional **[\*\*\*]**%) Mark-Up of the Direct Costs relating to such month. In addition, for each month during the Term of this Agreement that Republic has an on-time arrival rate (i.e. within 15 minutes of the scheduled arrival time) for its Delta Connection Flights of **[\*\*\*]**% or greater, Delta shall pay Republic an additional **[\*\*\*]**%) Mark-Up of the Direct Costs relating to such month.

2. <u>Semi-Annual Incentive Compensation</u>. In addition to the Base Compensation and the Monthly Incentive Compensation, Republic shall have the opportunity to earn additional compensation (the "Semi-Annual Incentive Compensation") based upon its performance in certain performance categories as set forth herein. During each six-month period (measured from each January 1 through June 30 and July 1 through December 31) during the Term of this Agreement, Delta shall pay Republic an additional **[\*\*\*]**%) Mark-Up of the Direct Costs for each of the following performance goals that Republic achieves during the applicable six-month period:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a completion rate for its Delta Connection Flights of **[\*\*\*]** %) or greater;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) an on-time arrival rate for its Delta Connection Flights of **[\*\*\*]** %) or greater; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a baggage claim rate for its Delta Connection Flights of less than **[\*\*\*]** claims per thousand passengers.

E. <u>Accounting Provisions</u>.

Delta shall retain all revenues (passenger, cargo, mail or any other revenue, including without limitation, any guaranteed or incentive payments from airport, local or municipal authorities in connection with scheduling flights to such airport or locality) in connection with the operation of the Delta Connection Flights. Operator shall promptly forward to Delta all monies with respect to all airline ticket sales, on-board sales, baggage charges, passenger charges, cargo sales and all other revenue collected in connection with the operation of the Aircraft (including credit card transactions).

On the 5<sup>th</sup>, 10<sup>th</sup>, 15<sup>th</sup> and 20<sup>th</sup> day of each month (or if not a business day, on the following business day) Delta will advance to Republic twenty-five percent (25%) of the estimated monthly Direct Costs and Mark-Up (collectively, the "Base Compensation"). In computing the amount of the advance, Delta will use the projected fuel costs, and Delta will estimate the anticipated number of weekly block hours based on the greater of (i) the scheduled block hours of the Aircraft and (ii) the Minimum Utilization Requirements.

Not later than twenty-five (25) days following the end of each month, Delta and Operator will reconcile the actual costs incurred by Republic for the Base Compensation (subject to the Minimum Utilization Requirements), with the estimated payments made pursuant to the previous paragraph. The reconciliation will include a comparison of Republic's actual completion rate for such month with the minimum completion rate required to achieve the Mark-Up pursuant to Section 3(A) hereof, any applicable Monthly Incentive Compensation based on Republic's actual completion rate and on-time arrival rate for the applicable month, and in the event such month is the end of a Semi-Annual Incentive Compensation measuring period, will also include any applicable Semi-Annual Incentive Compensation that may be due based upon Operator's performance during such period. Within two (2) business days of completing such reconciliation, Delta or Operator, as the case may be, shall wire transfer to an account designated by the other party, monies equal to the reconciled amount.

Notwithstanding anything herein to the contrary, in the event Republic is unable to operate any of the Aircraft, or any of the Delta Connection Flights, due to a strike, labor dispute, work stoppage or similar event, provided in each such case that such event is substantially within the control of, or caused by, some action or inaction of Operator or relates to the Aircraft, Delta shall not be obligated to pay Republic any Base Compensation, incentive compensation, or other amounts, in connection with such non-operated Aircraft and Delta Connection Flights. However,

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in the event Republic is unable to operate any of the Aircraft, or any of the Delta Connection Flights, due to a strike, labor dispute, work stoppage, or similar event, that is substantially within the control of, or caused by, some action or inaction of Delta, Delta shall be obligated to pay Republic Base Compensation based on the Minimum Utilization Requirements, and Republic's eligibility for any Monthly Incentive Compensation or Semi-Annual Incentive Compensation shall be calculated without regard to any cancellations, delays or complaints caused by or relating to such events. In the event Republic is unable to operate any of the Aircraft, or any of the Delta Connection Flights, due to an event that is not substantially within the control of, or caused by, some action or inaction of either Republic or Delta, Delta shall be obligated to pay Republic's fixed costs (i.e. labeled as "Per Scheduled Aircraft Per Day" and "Fixed Per Day" on <u>Exhibit B</u> attached hereto, as well as Aircraft Rent/Ownership Costs, Hull Insurance, Property Taxes and Heavy Inspection Costs for inspections already in process prior to any such event), but not any variable costs or Mark-Up, with respect to such non-operated Aircraft and Delta Connection Flights during the period that Republic is unable to operate such Aircraft or the Delta Connection Flights.

F. <u>Review of Base Amount and Service Levels</u>.

Operator shall maintain complete and accurate books and records to support and document all revenues, costs and expenses related to the Aircraft hereunder, in accordance with generally accepted accounting principles consistently applied and in accordance with the accounting policies and procedures used by the parties to develop the Direct Costs. Prior to the setting of the Annual Rate Plan, Delta's in-house accounting staff and any independent accountants selected by Delta shall be entitled, following reasonable notice to Operator, to review and inspect Operator's books, records and costs incurred with respect to services provided in prior periods, the service levels achieved, and the determination of charges due pursuant to this Agreement for the purpose of (i) prospectively adjusting the Base Rate Amount in connection with an annual review pursuant to Section 3(G) hereof, or (ii) auditing Reimbursable Costs, Pass Through Costs or Other Reimbursable Costs. Any such review will be conducted during regular business hours at Operator's offices.

G. <u>Cost Changes</u>.

For calendar year 2005, the Direct Costs shall be paid as provided in Schedule A hereof. For calendar years 2006, 2007 and 2008 the Base Rate Costs shall increase from the Base Rate Costs (as escalated) applicable to the prior calendar year by the prior calendar year's CPI + **[\*\*\*]**. For purposes of this provision, "CPI" shall mean the Consumer Price Index, U.S. City Average, Urban Wage Earners and Clerical Workers, All Items (base index year 1982-1984 = 100) as published by the U.S. Department of Labor, Bureau of Labor Statistics. If the manner in which the Consumer Price Index as determined by the Bureau of Labor Statistics shall be substantially revised, including, without limitation, a change in the base index year, an adjustment shall be made by the parties in such revised index which would produce results equivalent, as nearly as possible, to those which would have been obtained if such Consumer Price Index had not been so

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revised. If the Consumer Price Index shall become unavailable or in information is not readily available to enable the parties to make the adjustment referred to in the preceding sentence, the parties shall mutually agree to substitute therefore a comparable index based upon changes in the cost of living or purchasing power of the consumer dollar published by any other U.S. governmental agency or, if no such index shall be available, a comparable index published by a major bank or other financial institution or by a university or a recognized financial publication. Notwithstanding anything herein to the contrary, for purposes of this Agreement, CPI shall not, in any event, exceed **[\*\*\*]** per year.

For each year of the Term, beginning with calendar year 2009, Operator shall provide Delta an estimate of the year's projected operating costs by September 30<sup>th</sup> of the prior year. Delta will have the right to review and provide comments and suggestions to such estimate, and such suggestions will be duly considered by Operator. Operator and Delta hereby agree to meet promptly after each such September 30<sup>th</sup> in order to review and revise the Direct Costs and corresponding Base Compensation, as appropriate, for the subsequent calendar year utilizing the same methodology as initially used to determine the Direct Costs and Base Compensation (the "Annual Operating Plan") and will use commercially reasonable efforts to reach agreement on an Annual Operating Plan for the next calendar year prior to December 31 of each year. In the event that the parties are unable to agree on any Annual Operating Plan, the parties further agree that (i) at the request of either party, and at the expense of the requesting party, the parties shall engage a mutually agreed independent consultant, to determine the applicable Annual Operating Plan, **[\*\*\*]**, and (ii) if no new Annual Operating Plan has been adopted by the beginning of the next calendar year, the existing Annual Operating Plan shall be used on an interim basis to determine the Direct Costs and Base Compensation, subject to reconciliation and retroactive adjustment upon the adoption of a new Annual Operating Plan. Any determination by the independent consultant shall be binding on and implemented by the parties. The Annual Rate Plan will apply for all completed flights during the calendar year applicable to such plan, and with respect to the Base Rate Costs only, Operator will bear any risks of additional expenses not reflected therein. Operator shall be entitled to payment of all Reimbursable Costs, Pass Through Costs and Other Reimbursable Costs based on the actual amounts incurred without regard to the Annual Rate Plan. Operator will use its commercially reasonable efforts consistent with the business practices and policies used to develop the first years Direct Cost model and with the prudent operation of its business to minimize its costs to operate the Aircraft in accordance with this Agreement. Operator and Delta each agree to notify the other as soon as reasonably practicable of any anticipated or potentially substantial change of cost or operational performance.

<u>ARTICLE 4. AIRPORT RELATED AND TICKETING SERVICES</u>.

A. <u>Ticketing Services</u>. Delta will provide its own primary airport ticketing services, and, if applicable, Republic will provide supplemental ticketing services for Delta Connection Flights at Delta's airport ticketing locations and will use Delta ticket stock for such purposes.

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B. <u>Signage</u>. Delta will design, provide and pay for appropriate airport and other signage to reflect the Delta Connection and the relationship between Republic and Delta. The nature and type of such signage will be in the sole discretion of Delta, subject to any airport, governmental or quasi-governmental restrictions or requirements. Delta will be responsible for installing and maintaining all such signage, but the parties will mutually determine which party will obtain any necessary formal or informal approvals from appropriate airport or other authorities to install such signage. The parties will fully cooperate with each other in all endeavors relating to such signage and any necessary approvals.

<u>ARTICLE 5. CUSTOMER SERVICES</u>.

A. Operator will handle all customer related services in connection with the Delta Connection Flights in a professional, businesslike and courteous manner. In order to insure a high level of customer satisfaction for the Delta Connection Flights, Operator will:

1. establish and maintain customer handling procedures and policies that are similar to those utilized by Delta; and

2. establish, maintain and enforce employee conduct, appearance and training standards and policies that are similar to those utilized by Delta.

B. Operator and Delta will periodically meet to discuss and review Operator's customer handling procedures and policies and Operator's employee conduct, appearance and training standards and policies to insure compliance with this Article 5. Each party will seek to set forth concerns and complaints under this Article 5 in writing to the other party. To the extent Delta advises Operator of any deviation from Article 5(A) hereof, the parties shall meet to mutually determine appropriate solutions and to agree to the terms of a written corrective action plan and the timing of its implementation. In the event Operator shall fail, in any material respect, to adopt or implement any such agreed written corrective action plan in the time period described therein, such failure may be deemed a material breach of this Agreement.

C. Republic shall adopt as its own Delta's Terms and Conditions of Contract of Carriage ("Contract of Carriage"), as amended from time to time, and be bound by its terms with respect to its operation of Delta Connection Flights.

<u>ARTICLE 6. TRAFFIC DOCUMENTS AND RELATED PROCEDURES</u>. To the extent that Republic will handle traffic documents or passenger handling services in connection with any Delta Connection Flights, the following terms and conditions shall apply:

A. Pursuant to mutually acceptable procedures, Delta will periodically provide Republic with Delta machine and manual ticket stock, miscellaneous charges orders, credit card refund drafts, credit card refund vouchers, FIMS, expense vouchers, expense checks, travel credit vouchers and other related documents (collectively referred to as "Traffic Documents"). Delta will maintain a supply of Traffic Documents at a suitable location and, upon written request from Republic, will provide Republic with appropriate supplies of Traffic Documents.

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B. Unless otherwise agreed to by Delta in writing, Traffic Documents may be used, completed, validated and issued only by Republic and only in connection with transactions related to Delta Connection Flights and for no other purpose.

C. Republic will promptly surrender and return all Traffic Documents to Delta upon Delta's written request.

D. Republic will maintain records of the Traffic Documents in a manner and format acceptable to Delta. Republic will acknowledge receipt in writing of all Traffic Documents in the manner prescribed by Delta.

E. Republic will conform with and abide by all of Delta's rules and regulations regarding the Traffic Documents.

F. Republic will take all reasonable and necessary measures to safeguard the Traffic Documents as of the time of receipt and thereafter and will maintain the Traffic Documents in accordance with mutually agreed upon security procedures. Republic shall be responsible for all risk of loss, use, misuse, misappropriation or theft of Traffic Documents as of the time Republic takes possession of the Traffic Documents.

G. <u>Reporting and Remitting With Respect to Traffic Documents</u>.

1. On a daily basis, Republic will provide Delta with a report for each Republic ticketing location of all ticketing and related transactions on Traffic Documents for the prior day. Such report will be in a format determined by Delta and will include, without limitation, all credit card transactions and supporting documentation.

2. Republic will issue all Traffic Documents, and will collect appropriate charges, in accordance with the tariffs, fares, rates, rules and regulations of Delta and any other applicable carriers. Operator shall be responsible for all undercharges and incorrect fares, rates and charges on Traffic Documents issued by or for Republic, and Delta may deduct from sums due Operator or bill Operator for the amount of any such undercharges or incorrect fares, rates and charges. The amount of such undercharges will be determined by utilizing the ACH Procedures for passenger tickets and on a direct billing basis for baggage/cargo related items.

H. <u>Refund Vouchers</u>.

1. Delta will use Delta refund vouchers for all refund transactions handled by Delta involving Republic.

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2. Republic will use Delta refund vouchers, and Delta credit card refund vouchers for credit card sales refunds, and will comply with Delta's rules and regulations for handling and processing such refunds. Delta will supply Republic with an adequate supply of refund vouchers and credit card refund vouchers.

<u>ARTICLE 7. FREQUENT FLYER PARTICIPATION</u>. During the Term of this Agreement, the parties agree that passengers on Republic's Delta Connection Flights will be eligible to participate in the Delta SkyMiles frequent flyer program or any other similar program developed by Delta (the "Program") and all Program award tickets will be honored for travel on Delta Connection Flights on the following terms and conditions:

A. <u>Administration</u>. Administration of the Program shall be performed by and at the cost of Delta. Delta will promote and administer the Program.

B. <u>Program Information</u>. Title and full and complete ownership rights to Program membership data and information developed by Delta, wherever located, shall remain with Delta or an affiliate of Delta. Operator understands and agrees that such data and information constitutes Delta's (or its affiliates') proprietary information. Any membership lists, labels, data, or other compiled membership information supplied to Operator in any form and any and all copies thereof are to be used by Operator exclusively in the performance of its obligations under this Agreement and will not be otherwise used, sold, licensed, leased, transferred, stored, duplicated or transmitted, in any form or by any means, without Delta's prior written consent. All such information will either be returned to Delta or destroyed at Delta's request.

<u>ARTICLE 8. SUPPORT SERVICES</u>. Delta may provide certain support services to Republic, including customer reservations, customer service, ground handling, ramp handling, station operations, on call maintenance, fuel service, de-icing, baggage transfers, security and passenger screening, pricing, scheduling, revenue accounting, revenue management, frequent flyer, advertising and similar support services (collectively, "Support Services") in connection with the operation of the Aircraft, and Delta will be responsible for all taxes and fees associated therewith. Any and all services provided by Delta to Operator shall be at no cost to Operator and shall not be subject to any reimbursement or any Mark-Up.

<u>ARTICLE 9. AUTOMATION SERVICES</u>. Delta agrees to provide Republic the following automation and related services for the Delta Connection Flights, and Republic agrees to participate in such services in the manner described below.

A. <u>Internal Reservations Equipment</u>. Delta shall provide or arrange for the provision to Republic of an electronic reservations system (currently referred to as "Deltamatic" but including any successor reservations system adopted by Delta) and shall provide Republic with: (i) the ability to access passenger name records, (ii) automated ticketing capabilities, (iii) operational messaging switching capabilities, (iv) the ability to update Delta Connection Flight information, (v) the ability to distribute flight releases and weather packages, and (vi) perform other

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reservations-related functions for the Delta Connection Flights (Deltamatic and any successor system are hereinafter referred to as the "Res System"). Delta reserves the right to modify the functionality of the Res System at any time. Republic will use the Res System made available by Delta for the Delta Connection Flights only.

B. <u>Delta's Rights and Obligations</u>.

1. Delta will install or cause to be installed the equipment requested by Republic at the locations set forth on <u>Exhibit C</u> to this Agreement and shall provide Republic connection to the Res System. The equipment described on <u>Exhibit C</u> and any software installed on the Equipment at the time of its delivery to Republic are hereinafter referred to as the "Equipment." Republic understands and agrees that: (i) all Equipment shall remain the sole property of Delta; (ii) Republic shall not remove any identifying marks from the Equipment; (iii) Republic shall not subject the Equipment to any lien; and (iv) Delta may enter Republic's premises to remove the Equipment immediately upon termination of this Agreement. <u>Exhibit C</u> may be amended from time to time by mutual agreement of the parties to reflect the installation, removal or relocation of Equipment.

2. Delta will provide initial and recurrent training to Republic training staff and other key designated personnel in the use of the Res System, at Delta's training centers unless otherwise agreed. Delta may remove from a training program any Republic employee who is not satisfactorily participating therein.

3. Delta will provide, or arrange to provide, all repairs and maintenance services required for the Equipment and will use reasonable business efforts to keep the Equipment and the Res System in good repair and condition. Republic will not perform or attempt to perform repairs or maintenance of any kind on the Equipment without prior consultation with Delta and will promptly contact Delta regarding the need for repairs or maintenance.

C. <u>Republic's Rights and Obligations</u>.

1. Republic will not for any reason relocate or remove any of the Equipment without Delta's prior written consent. Delta will pay all costs associated with the installation, relocation or removal of Equipment.

2. Republic will use the Equipment and the Res System in strict conformity with the training and operating instructions provided by, or arranged to be provided by, Delta. Without limiting the generality of the foregoing, Republic will not use the Res System to develop or publish any reservation, ticketing, sales, cargo, tariff or other guide, to provide services not authorized by this Agreement to third parties, to train persons other than Republic's employees in the use of the Equipment or the Res System, or for other uses designated by Delta in writing as prohibited. Republic may not publish, disclose or otherwise make available to any third party the compilations of air carrier service or fares obtained from the Res System; provided, however, that Republic may use specific air carrier service and fare data for the benefit of its customers.

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3. Republic will ensure that its employees attend training sessions related to the Res System, and it is Republic's responsibility to insure that each employee receives full and adequate training on the Res System.

4. Republic will protect the Equipment from loss, damage or theft and shall prevent its unauthorized use or improper operation. Republic will make no alterations to the Equipment and will return the Equipment to Delta upon the termination of this Agreement in the same condition as received, excepting only ordinary wear and tear in the normal course of Republic's operations. Republic will obtain and maintain insurance for the Equipment against all risks of damage and loss, including without limitation loss by fire, theft and such other risks of loss as are customarily insured in a standard all-risk policy. Such insurance shall also provide the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Full replacement value coverage for the Equipment (subject to policy deductibles);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) An endorsement naming Delta as the loss payee to the extent of its interest in the Equipment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) An endorsement requiring the insurer to give Delta at least thirty (30) days prior written notice of any intended cancellation, nonrenewal or material change of coverage; provided that only ten (10) days prior written notice of cancellation, nonrenewal or material change of coverage need be given in the event that such cancellation, nonrenewal or material change in coverage is caused solely by failure to make a premium payment.

Upon request by Delta, Operator will promptly provide satisfactory evidence of the insurance required pursuant to this Section 9(C)(4). Notwithstanding the foregoing, Operator shall be liable to Delta for any loss or damage to the Equipment, regardless of cause, occurring while the Equipment is in the possession, custody or control of Operator.

5. Operator waives any proprietary rights that it may have with respect to information entered into the Res System.

D. <u>Entry and Inspection</u>. Delta personnel and persons designated or authorized by Delta may enter Operator's premises during normal business hours for the purposes of (a) monitoring, inspecting, and reviewing Operator's use of and operations with respect to the Res System, (b) performing repairs or maintenance on the Equipment, (c) installing, removing, replacing or relocating the Equipment (unless otherwise permitted by this Agreement), or (d) training or retraining Operator's employees in the use of the Res System; provided that such activities may not unreasonably interfere with Operator's business.

E. <u>Limitations on Liability</u>. In addition to any other limitations on liability set forth herein:

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1. Delta is not responsible for errors or inaccuracies in the availability records, fare quotes, or other information contained in the Res System at any time, for any planned or unplanned interruptions, delays or malfunctions in the operation of the Res System or the Equipment or for the merchantability or fitness for a particular purpose of any of the data or Equipment made available to Operator.

2. OPERATOR HEREBY WAIVES AND RELEASES DELTA AND ITS AFFILIATES AND THEIR RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES AND AGENTS FROM ANY AND ALL OBLIGATIONS AND LIABILITIES AND ALL RIGHTS, CLAIMS AND REMEDIES OF OPERATOR AGAINST DELTA OR ITS AFFILIATES OR ANY OF THEIR RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES OR AGENTS, EXPRESS OR IMPLIED, ARISING BY LAW OR OTHERWISE, DUE TO ANY DEFECTS OR INTERRUPTIONS OF SERVICE IN, OR ERRORS OR MALFUNCTIONS BY, SOFTWARE, THE EQUIPMENT OR THE RES SYSTEM, INCLUDING ALL LIABILITY, OBLIGATION, RIGHT, CLAIM, OR REMEDY IN TORT, AND INCLUDING ALL LIABILITY, OBLIGATION, RIGHT, CLAIM OR REMEDY FOR LOSS OF REVENUE OR PROFIT OR ANY OTHER DIRECT, INDIRECT, INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES. <u>FURTHER, DELTA DISCLAIMS AND OPERATOR HEREBY WAIVES ANY WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR INTENDED USE RELATING TO THE RES SYSTEM, THE EQUIPMENT, DATA, OR SERVICES FURNISHED HEREUNDER.</u>

F. <u>Patent and Copyright Indemnity</u>. Delta will defend or settle, at its own expense, any action brought against Operator to the extent that it is based on a claim that the Res System provided by Delta pursuant to this Agreement, in its normal use, or any part thereof, infringes any U.S. copyright or patent; and Delta will pay those costs, damages and attorney's fees finally awarded against Operator in any such action attributable to any such claim, but such defense, settlements and payments are conditioned on the following: (1) that Delta shall be notified promptly in writing by Operator of any such claim; (2) that Delta shall have sole control of the defense of any action on such claim and of all negotiations for its settlement or compromise; (3) that Operator shall cooperate with Delta in a reasonable way to facilitate the settlement or defense of such claim, provided that Delta shall pay all of Operator's reasonable expenses (including legal fees) in connection with any such cooperation requested by Delta; and (4) should such Res System become, or in Delta's opinion be likely to become, the subject of such claim of infringement, then Operator shall permit Delta, at Delta's option and expense, either to (a) procure for Operator the right to continue using the Res System, or (b) replace or modify the same so that it becomes noninfringing and functionally equivalent, or (c) upon failure of (a) and (b) above despite the reasonable efforts of Delta, accept immediate termination of this Agreement as it relates to such system. This paragraph (F) states the entire liability of Delta with respect to the infringement of copyrights and patents by the Res System provided hereunder or the operation thereof.

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<u>ARTICLE 10. OPERATION PERFORMANCE</u>.

A. Operator agrees to provide the following information to Delta for each month during the Term of this Agreement on a daily basis within three (3) days after each day; provided, however, the information in sub-paragraph (iii) below shall be provided monthly within ten (10) days after the last day of each such month:

(i) The number of scheduled Delta Connection Flights that do not arrive at their scheduled destination prior to 15 minutes after their respective scheduled arrival times for such day. Operator understands that it is Delta's current goal that participants in the Delta Connection Program maintain a monthly percentage of on-time arrivals at **[\*\*\*]**% of all flights flown or greater.

(ii) The completion rate (actual) of the Delta Connection Flights for such day. Operator understands that it is Delta's current goal that participants in the Delta Connection Program maintain a monthly completion rate (actual) of **[\*\*\*]** % or greater.

(iii) The number of complaints per 1,000 passengers flown on Delta Connection Flights during such month. Operator understands that it is Delta's current goal that participants in the Delta Connection Program maintain a number of complaints at **[\*\*\*]** per 1,000 passengers flown or lower.

B. In the event Operator fails to meet any of the standards set forth in Section 10(A), Operator agrees to discuss with Delta such performance and potential ways to improve such performance at Delta's request. Operator agrees to develop in consultation with Delta a written remedial plan designed to correct such failure and promptly implement any such written remedial plan.

<u>ARTICLE 11. TERM AND TERMINATION</u>.

A. This Agreement is effective on the date first written above and shall continue until the fourteenth (14<sup>th</sup>) anniversary of such date (such period, and any extension or renewal thereof, the "Term"). At the end of such initial fourteen-year term, Delta shall have the right to extend the term of the Agreement for an additional five (5) years on the same terms and conditions. In the event of a Merger (as defined below) or Change of Control (as defined below) of Republic or RJET, Delta shall have the right to extend the term of the Agreement for an additional ten (10) years beyond the applicable termination date of this Agreement pursuant to this Section 11(A).

B. Notwithstanding the provisions of Section 11(A), either party may terminate this Agreement immediately upon the delivery of written notice to the other party if the other party files a voluntary petition in bankruptcy, makes an assignment for the benefit of creditors, fails to secure dismissal of any involuntary petition in bankruptcy within sixty (60) days after the filing thereof, or petitions for reorganization, liquidation, or dissolution under any federal or state bankruptcy or similar law, or if any such actions are imminent.

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C. Notwithstanding the provisions of Section 11(A), in the event of a material breach of this Agreement by either party remaining uncured for more than thirty (30) days after receipt of written notification of such breach by the nonbreaching party, or in the case of a matter which cannot reasonably be cured within such thirty (30) day period, as to which the party receiving such notice has not substantially made progress toward curing such breach, then the nonbreaching party may immediately terminate this Agreement at its sole option.

D. Notwithstanding the provisions of Section 11(A), in the event a Force Majeure Event (as defined in Article 21) substantially prevents one party's performance of its obligations pursuant to this Agreement, for a period of two (2) or more consecutive months, the other party may terminate this Agreement upon thirty (30) days prior written notice to the party affected by the Force Majeure Event.

E. Notwithstanding the provisions of Sections 11(A), (B), (C) and (D), Delta shall have the right to terminate this Agreement immediately and at its sole option upon the occurrence of one or more of the following events by providing written notice of such termination to Operator:

(i) RJET or Republic agrees to merge into or with any entity, agrees to be acquired by any entity, agrees to sell substantially all of its assets or enters into a letter of intent, or similar document, to merge into or with any entity, to be acquired by any entity, or to sell substantially all of its assets unless (A) RJET or Republic, as applicable, is the acquiring or surviving entity, or (B) the ultimate beneficial ownership of the surviving entity immediately following such transaction is substantially similar (i.e. at least 75% common ownership) to the ultimate beneficial ownership of RJET or Republic as the case may be immediately prior to such transaction (each such event that is not subject to such exceptions, a "Merger");

(ii) The acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934 (the "Exchange Act")) (a "Person") of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of more than **[\*\*\*]** of either (a) the then outstanding shares of common stock of RJET or Republic, or (b) the combined voting power of the then outstanding voting securities of RJET or Republic entitled to vote generally in the election of such party's directors, unless such Person is (A) Wexford Capital LLC or an affiliate thereof, or (B) a Person whose ultimate beneficial ownership immediately following such transaction is substantially similar (i.e. at least 75% common ownership) to the ultimate beneficial ownership of RJET or Republic as the case may be immediately prior to such transaction, (each such event that is not subject to such exceptions, a "Change of Control");

(iii) Republic's product quality with respect to its operation of the Aircraft is not reasonably satisfactory to Delta thirty (30) days after Delta has provided Republic with written notice specifying Delta's dissatisfaction with the product quality and proposing remedial measures to be implemented by Republic;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) in the event Republic fails to maintain a completion rate of **[\*\*\*]**% with respect to the Delta Connection Flights during any **[\*\*\*]** period commencing with the date that at least 8 Aircraft (7 Aircraft and 1 Spare) have been scheduled to be placed into service in the Delta Connection Program;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Republic's failure to pass, in Delta's reasonable judgment, a safety and codeshare audit to be conducted by Delta prior to the commencement of any operation of any Delta Connection Flights; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Republic's level of safety is not reasonably satisfactory to Delta; provided, however, in such event, this Agreement shall first be suspended for up to thirty (30) days from the date that Delta provides written notice to Republic of its dissatisfaction, and then at the end of such up to 30-day period, Republic's level of safety is still not reasonably satisfactory to Delta, Delta may immediately terminate this Agreement by delivery of written notice to Republic. In the event this Agreement is suspended under this Section 11(E)(vi), Delta shall not be obligated to make any payments to Republic in respect of any services that would have been provided by Republic during the period of such suspension or to reimburse Republic for any costs or expenses incurred by Republic during such period.

F. Notwithstanding the provisions of Sections 11(A), (B), (C), (D) and (E) hereof, Delta may terminate this Agreement, with or without cause, in its sole discretion, in whole or in part, on not less than one hundred eighty (180) days' prior written notice to Operator; provided, however, that such notice shall not be given prior to seven (7) years and six (6) months after the date of this Agreement, and provided further, that Delta may not reduce the number of Aircraft in service to a number that is less than twelve (12) other than through a complete termination of the Agreement. **[\*\*\*]**

G. (i) In the event Delta terminates this Agreement, in whole or in part, pursuant to Section 11(F) hereof, or in the event Operator terminates this Agreement pursuant to Section 11(B), 11(C) or 11(D) hereof, Operator shall have the right to require Delta (a) with respect to all or any of the terminated Aircraft that are owned by Operator at Operator's option (I) to purchase the Aircraft for the Agreed Amount (as defined below), or (II) to sublease the Aircraft from Operator on the Sublease Terms (as defined below), or (b) with respect to all or any of the terminated Aircraft that are leased by Operator to assume the lease with respect to such Aircraft, provided that any assumption by Delta of such lease must be on terms that are no more onerous than the terms that applied to Operator (with no assumption penalties, fees or similar costs to Delta other than taxes, if any, and Delta's own fees and expenses incurred to consummate such transfer or assumption) (the "Put Right"). Operator shall have the right to exercise the Put Right by providing written notice to Delta within thirty (30) days after the effective date of any event giving rise to the Put Rights (the "Put Deadline").

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(ii) In the event Delta terminates this Agreement, in whole or in part and Operator does not exercise its Put Right within the Put Deadline, Delta shall have the right, which it may exercise by providing written notice to Operator within thirty (30) days after the earlier of (a) the expiration of the Put Deadline, (b) Delta's receipt of written notice from Operator that Operator will not exercise the Put Right with respect to any or all of the terminated Aircraft, or (c) in the event Operator does not have a Put Right, the effective date of such termination, to require Operator (y) with respect to all or any of the terminated Aircraft that are owned by Operator at Delta's option (I) to sell the Aircraft for the Agreed Amount, or (II) to sublease the Aircraft to Delta on the Sublease Terms, or (z) with respect to all or any of the terminated Aircraft that are leased by Operator to assume the lease with respect to such Aircraft, provided that any assumption by Delta of such lease must be on terms that are the same or better than the terms that applied to Operator (with no assumption penalties, fees or similar costs to Delta other than taxes, if any, and Delta's own fees and expenses incurred to consummate such transfer or assumption) (the "Call Right"). In connection with any leased Aircraft, Operator hereby covenants and agrees that Operator shall obtain any and all third party consents, including, without limitation, the lessors of the Aircraft, necessary to effectuate the Put Right and the Call Right without penalty, fee or additional cost (other than taxes, if any, and transaction fees and expenses) to Delta simultaneously with the execution of any such lease.

(iii) For purposes of this Section 11(G): (a) the Agreed Amount for an Aircraft shall be **[\*\*\*]**

H. In the event that Delta terminates this Agreement, in whole or in part, pursuant to Section 11(F), during the period commencing on the date Operator receives Delta's notice of termination and ending on the effective termination date of the portion of the Agreement being terminated by Delta, the Mark-Up of the Direct Costs attributable to the operation of the to-be-terminated Aircraft shall be **[\*\*\*]**; provided, however, during such same period, such operations shall not be eligible for any Monthly Incentive Compensation or Semi-Annual Incentive Compensation.

I. In the event Delta terminates this Agreement pursuant to Section 11(B), (C), (D) or (E), Delta shall also have the Call Right as set forth in Section 11(G), which must be exercised in the manner and within the time periods set forth therein.

J. Termination of this Agreement for any reason shall not relieve either party of rights and obligations incurred prior to the effective date of termination.

K. Notwithstanding any other provision of this Agreement, in the event either party has cause to terminate this Agreement under Section 11(B), (C), (D), or (E), such party shall provide written notice of such termination within 45 days after the events giving constituting cause for such termination plus any applicable cure period or it shall be conclusively deemed to have waived its right to terminate the Agreement based upon such events.

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L. **[\*\*\*]**

M. In the event of any transfer of any of the Aircraft pursuant to Section 11(G), Delta shall reimburse Republic for any prepaid rent paid by Republic under any Aircraft lease to the extent not previously included in the Aircraft Rent/Ownership Costs paid by Delta, provided that Delta previously approved the terms of such lease.

<u>ARTICLE 12. LIABILITY PROVISIONS</u>.

A. Republic and RJET, jointly and severally, shall be liable for and hereby agrees fully to defend, release, discharge, indemnify, and hold harmless Delta and its affiliates, and each of their respective directors, officers, employees and agents (each, a "Delta Indemnitee") from and against any and all claims, demands, damages, liabilities, suits, judgments, actions, causes of action, losses, costs and expenses of any kind, character or nature whatsoever (in each case whether groundless or otherwise), including reasonable attorneys' fees, costs and expenses in connection therewith and expenses of investigation and litigation thereof, which may be suffered by, accrued against, charged to, or recoverable from any Delta Indemnitee in any manner arising out of, connected with, or attributable to this Agreement, the performance, improper performance, or nonperformance of any and all obligations to be undertaken by Operator pursuant to this Agreement, the loss, theft, use, misuse or misappropriation of Traffic Documents, or the operation, non-operation, or improper operation of Operator's aircraft, equipment or facilities at any location, excluding only claims, demands, damages, liabilities, suits, judgments, actions, causes of action, losses, costs and expenses resulting from the gross negligence or willful misconduct of Delta, its affiliates, and their respective directors, officers, agents or employees. Operator will do all things necessary to cause and assure, and will cause and assure, that Operator will at all times be and remain in custody and control of all aircraft, equipment, and facilities of Operator, and no Delta Indemnitee shall, for any reason, be deemed to be in custody or control, or a bailee, of Operator's aircraft, equipment or facilities.

B. Delta shall be liable for and hereby agrees fully to defend, release, discharge, indemnify, and hold harmless each of RJET and Republic and any direct or indirect subsidiary of RJET or Republic, and each of their respective directors, officers, employees, and agents (each, an "Operator Indemnitee") from and against any and all claims, demands, damages, liabilities, suits, judgments, actions, causes of action, losses, costs and expenses of any kind, character or nature whatsoever, including reasonable attorneys' fees, costs and expenses in connection therewith and expenses of investigation and litigation thereof, which may be suffered by, accrued against, charged to, or recoverable from any Operator Indemnitee in any manner arising out of, connected with, or attributable to this Agreement, the performance, improper performance or nonperformance of any and all obligations to be undertaken by Delta pursuant to this Agreement, or the operation, non-operation or improper operation of Delta's aircraft, equipment or facilities at any location, excluding only claims, demands, damages, liabilities, suits, judgments, actions, causes of action, losses, costs and expenses resulting from the gross negligence or willful misconduct of RJET and Operator, their affiliates, and their respective directors, officers, agents

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or employees. Delta will do all things necessary to cause and assure, and will cause and assure, that Delta will at all times be and remain in custody and control of any aircraft, equipment and facilities of Delta, and no Operator Indemnitee shall, for any reason, be deemed to be in the custody or control, or a bailee, of Delta's aircraft, equipment or facilities.

C. Operator and Delta agree to comply with all rules, regulations, directives and similar instructions of appropriate governmental, judicial and administrative entities including, but not limited to, airport authorities, the Federal Aviation Administration and the Department of Transportation (and any successor agencies).

D. OTHER THAN ANY WARRANTIES SPECIFICALLY CONTAINED IN THIS AGREEMENT, EACH PARTY DISCLAIMS AND THE OTHER PARTY HEREBY WAIVES ANY WARRANTIES, EXPRESS OR IMPLIED, ORAL OR WRITTEN, WITH RESPECT TO THIS AGREEMENT OR ITS PERFORMANCE OF ITS OBLIGATIONS HEREUNDER INCLUDING, BUT NOT LIMITED TO, ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR INTENDED USE RELATING TO ANY EQUIPMENT, DATA, INFORMATION OR SERVICES FURNISHED HEREUNDER. EACH PARTY AGREES THAT THE OTHER PARTY IS NOT LIABLE TO IT OR ANY OTHER PERSONS FOR CONSEQUENTIAL OR PUNITIVE DAMAGES UNDER ANY CIRCUMSTANCES.

E. <u>Indemnification Claims</u>. A party (the "Indemnified Party") entitled to indemnification from the other party under the terms of this Agreement (the "Indemnifying Party") shall provide the Indemnifying Party with prompt written notice (an "Indemnity Notice") of any third party claim which the Indemnified Party believes gives rise to a claim for indemnity against the Indemnifying Party hereunder, and the Indemnifying Party shall be entitled, if it accepts financial responsibility for the third party claim, to control the defense of or to settle any such third party claim at its own expense and by its own counsel; <u>provided</u> that the Indemnified Party's prior written consent (which may not be unreasonably withheld or delayed) must be obtained prior to settling any such third party claim. If the Indemnifying Party does not accept financial responsibility for the third party claim or fails to defend against the third party claim that is the subject of an Indemnity Notice within thirty (30) days of receiving such notice (or sooner if the nature of the third party claim so requires), or otherwise contests its obligation to indemnify the Indemnified Party in connection therewith, the Indemnified Party may, upon providing written notice to the Indemnifying Party, pay, compromise or defend such third party claim. The Indemnified Party shall provide the Indemnifying Party with such information as the Indemnifying Party shall reasonably request to defend any such third party claim and shall otherwise cooperate with the Indemnifying Party in the defense of any such third party claim. Except as set forth above in this Section 12(E), the Indemnified Party shall not enter into any settlement or other compromise or consent to a judgment with respect to a third party claim as to which the Indemnifying Party has an indemnity obligation hereunder without the prior written consent of the Indemnifying Party (which may not be unreasonably withheld or delayed), and the entering into any settlement or compromise or the consent to any judgment in violation of the foregoing shall constitute a waiver by the Indemnified Party of its right to indemnity hereunder

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to the extent the Indemnifying Party was prejudiced thereby. Any Indemnifying Party shall be subrogated to the rights of the Indemnified Party to the extent that the Indemnifying Party pays for any Loss suffered by the Indemnified Party hereunder. Notwithstanding anything contained in this Section 12(E) to the contrary, RJET, Republic and Delta will cooperate in the defense of any claim imposed jointly against them or as the result of the conduct of the other.

<u>ARTICLE 13. WORKERS' COMPENSATION AND EMPLOYERS' LIABILITY INSURANCE PROVISIONS.</u> 

A. For purposes of workers' compensation insurance, Delta's employees, agents and independent contractors under no circumstances shall be deemed to be, or shall be, employees, agents or independent contractors of Operator.

B. For purposes of workers' compensation insurance, Operator's employees, agents and independent contractors under no circumstances shall be deemed to be, or shall be, the employees, agents or independent contractors of Delta.

C. Each party assumes full responsibility for, and liability to, its own employees on account of injury, or death resulting therefrom, sustained in the course of their employment. Each party, with respect to its own employees, accepts full and exclusive liability for the payment of applicable workers' compensation and employers' liability insurance premiums with respect to such employees, and for the payment of all taxes, contributions or other payments for unemployment compensation and old age benefits, and other similar benefits now or hereafter imposed upon employers by any government or agency thereof having jurisdiction in respect of such employee. Each party also agrees to make such payments and to make and file all reports and returns and to do all things necessary to comply with all applicable laws at any time imposing such taxes, contributions, or payments.

D. Each party will have their workers' compensation insurance carrier endorse its policy to provide a waiver of subrogation against the other party.

<u>ARTICLE 14. INSURANCE PROVISIONS</u>.

A. Operator shall procure and maintain in full force and effect during the term of this Agreement policies of insurance of the types and in the minimum amounts set forth below, with such insurers and under such terms and conditions as are satisfactory to Delta:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. All risk hull insurance on an agreed value basis, not to exceed replacement value, except as required by
financing agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Comprehensive aviation liability including, without limitation, premises, products and completed operations,
covering bodily injury, personal injury and property damage in an amount not less than [\*\*\*] per occurrence; provided, however, that non-passenger personal injury coverage may be limited to [\*\*\*] per
occurrence.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Workers' compensation for statutory limits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Employer's liability in an amount not less than **[\*\*\*]**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Baggage liability in an amount not less than **[\*\*\*]** per occurrence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Cargo liability in an amount not less than **[\*\*\*]** per loss, casualty or disaster.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Automobile liability in an amount not less than **[\*\*\*]**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. War, Hijacking and Other Allied Perils insurance protecting against the perils outlined in AVN52D or its U.S.
equivalent in an amount not less than [\*\*\*] per occurrence. Such insurance may be maintained through a combination of primary and excess layers.

B. Operator shall cause the policies of insurance described in Article 14(A) above to be duly and properly endorsed by Operator's insurance underwriters as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. As to the policies of insurance described in Articles 14(A)(1), (A)(2), (A)(3), (A)(4), (A)(5), (A)(6), (A)(7)
and (A)(8): (a) to provide that any waiver of rights of subrogation against other parties by Operator will not affect the coverage provided hereunder with respect to Delta, its affiliates, and their directors, officers, employees and agents; and
(b) to provide that Operator's underwriters shall waive all subrogation rights arising out of this Agreement against Delta, its affiliates, and their directors, officers, employees and agents without regard to any breach of warranty on the
part of Operator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. As to the policies of insurance described in Articles 14(A)(2), (A)(5), (A)(6), (A)(7) and (A)(8): (a) to
provide that Delta, its affiliates, and their directors, officers, employees and agents shall be named as additional insured parties thereunder; and (b) to provide that such insurance shall be primary insurance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. As to the policies of insurance described in Articles 14(A)(2) and (A)(7): (a) except for the limits of
liability, to provide a cross-liability clause as though separate policies were issued for Delta and Operator and their respective affiliates, and their directors, officers, employees and agents; and (b) to provide contractual liability
insurance coverage for liability assumed by Operator under this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. As to any insurance obtained from foreign underwriters, to provide that Delta may maintain against such
underwriters a direct action in the United States upon such insurance policies and, to this end, to include a standard service of process clause designating a United States attorney in Washington, D.C. or New York, New York.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. All insurance policies shall provide that the insurance shall not be invalidated by any action or inaction of
Operator.

C. Operator shall cause each of the insurance policies to be duly and properly endorsed to provide that such policy or policies or any part or parts thereof shall not be canceled, terminated or materially altered, changed or amended by Operator's insurance underwriters until after thirty (30) days' written notice to Delta, which thirty (30) days' notice shall commence to run from the date such notice is actually received by Delta.

D. Not later than the effective date of this Agreement, and from time to time thereafter upon request by Delta, Operator shall furnish Delta evidence satisfactory to Delta of the aforesaid insurance coverages and endorsements, including certificates certifying that the aforesaid insurance policy or policies with the aforesaid limits are duly and properly endorsed as aforesaid and are in full force and effect.

E. In the event Operator fails to maintain in full force and effect any of the insurance and endorsements required to be maintained by Operator pursuant to Article 14(A), Delta shall have the right (but not the obligation) to procure and maintain such insurance or any part thereof on behalf of Operator. The cost of such insurance shall be payable by Operator to Delta upon demand by Delta. The procurement of such insurance or any part thereof by Delta does not discharge or excuse Operator's obligation to comply with the provisions set out herein. Operator agrees not to cancel, terminate or materially alter, change or amend any of the policies until after providing thirty (30) days' advance written notice to Delta of Operator's intent to so cancel, terminate or materially alter, change or amend such policies of insurance, which thirty (30) day notice period shall commence to run from the date notice is actually received by Delta.

F. With respect to all claims against Operator (but not against Delta) with respect to which Operator is not entitled to be indemnified by Delta pursuant to Article 12(B), whether or not covered by the insurance policies set forth in this Article 14 or otherwise, Delta is responsible only for filing an initial report and has no other obligations with respect to such claims, and Operator is fully responsible for handling all adjustments, settlements, negotiations, litigation and similar activities in any way related to or connected with such claims.

G. The parties hereby agree that from time to time during the term of this Agreement Delta may require Operator to procure and maintain insurance coverages in amounts in excess of the minimum amounts set forth in Article 14(A) should the circumstances and conditions of Operator's operations under this Agreement be deemed, in Delta's sole discretion, to require reasonable increases in any or all of the foregoing minimum insurance coverages.

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<u>ARTICLE 15. OPERATIONS OF REPUBLIC AS A DELTA CONNECTION CARRIER</u>.

A. Delta and Operator agree that, subject to the provisions of this Agreement, Republic will operate for the Delta Connection Flights exclusively as a Delta Connection carrier.

B. Operator acknowledges and agrees that participation in the Delta Connection program obligates Republic to offer and maintain a professional, high quality level of service in terms of schedules, customer service and the like. Accordingly, not less than once each year during the term of this Agreement, the parties will: (a) meet to mutually review and discuss the services, operations and plans of Operator and Delta for the Delta Connection program; and (b) jointly develop a written business plan for the Delta Connection operations and services of Republic. Operator will comply with the business plans so developed and all reasonable recommendations of Delta in this area.

<u>ARTICLE 16. REPRESENTATIONS AND WARRANTIES</u>.

A. <u>Representations and Warranties of RJET and Operator</u>. RJET and Republic, jointly and severally, represent and warrant to Delta as of the date hereof as follows:

(1) <u>Organization and Qualification</u>. Each of RJET and Republic is a duly organized and validly existing corporation under the laws of the State of Indiana in the case of Republic and Delaware in the case of RJET, and Republic has the corporate power and authority to own, operate and use its assets and operate the Delta Connection Flights.

(2) <u>Authority Relative to this Agreement</u>. Each of RJET and Republic has the corporate power and authority to execute and deliver this Agreement and to consummate the transactions contemplated hereby and thereby in accordance with the terms hereof and thereof. The execution and delivery of this Agreement and the Equity Agreements, and the consummation of the transactions contemplated hereby and thereby, have been duly authorized by all necessary corporate action on the part of RJET and Republic. This Agreement and the Equity Agreements have been duly and validly executed and delivered by RJET and/or Republic and are, assuming due execution and delivery thereof by Delta, valid and binding obligations of RJET and/or Republic as the case may be, enforceable against the respective party each in accordance with its respective terms.

(3) <u>Conflicts; Defaults</u>. Neither the execution or delivery of this Agreement or the Equity Agreements nor the performance by each of RJET and Republic of the transactions contemplated hereby or thereby will (i) violate, conflict with, or constitute a default under any of the terms of either of RJET's or Republic's articles of incorporation, by-laws, or any provision of, or result in the acceleration of any obligation under, any contract, sales commitment, license, purchase

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order, security agreement, mortgage, note, deed, lien, lease, agreement or instrument, including without limitation, any order, judgment or decree relating to the Delta Connection Flights, (ii) result in the creation or imposition of liens in favor of any third person or entity, (iii) violate any law, statute, judgment, decree, order, rule or regulation of any governmental authority, or (iv) constitute any event which, after notice or lapse of time or both, would result in such violation, conflict, default, acceleration or creation or imposition of liens.

(4) <u>Broker</u>. Neither RJET nor Republic has retained or agreed to pay any broker or finder with respect to this Agreement and the transactions contemplated hereby.

B. <u>Representations and Warranties of Delta</u>. Delta represents to RJET and Republic as of the date hereof as follows:

(1) <u>Organization and Qualification</u>. Delta is a duly incorporated and validly existing corporation in good standing under the laws of the State of Delaware.

(2) <u>Authority Relative to this Agreement</u>. Delta has the corporate power and authority to execute and deliver this Agreement and to consummate the transactions contemplated hereby in accordance with the terms hereof. The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by all necessary corporate action on the part of Delta. This Agreement has been duly and validly executed and delivered by Delta and is, assuming due execution and delivery thereof by RJET or Republic and that RJET or Republic each has full legal power and right to enter into this Agreement, a valid and binding obligation of Delta, enforceable against Delta in accordance with its terms.

(3) <u>Conflicts; Defaults</u>. Neither the execution or delivery of this Agreement nor the performance by Delta of the transactions contemplated hereby will (i) violate, conflict with, or constitute a default under any of the terms of Delta's articles of incorporation, by-laws, or any provision of, or result in the acceleration of any obligation under, any contract, sales commitment, license, purchase order, security agreement, mortgage, note, deed, lien, lease, agreement or instrument, including without limitation, any order, judgment or decree relating to the Delta Connection Flights, (ii) result in the creation or imposition of any liens in favor of any third person or entity, (iii) violate any law, statute, judgment, decree, order, rule or regulation of any governmental authority, or (iv) constitute any event which, after notice or lapse of time or both, would result in such violation, conflict, default, acceleration or creation or imposition of liens.

(4) <u>Broker</u>. Delta has not retained or agreed to pay any broker or finder with respect to this Agreement and the transactions contemplated hereby.

------

<u>ARTICLE 17. RIGHT OF FIRST OFFER</u> 

If at any time during the Term of this Agreement, Operator seeks (a) to place into service additional aircraft and to operate such aircraft under a code share agreement ("New Aircraft"), or (b) to reposition under a new code share agreement any Committed Aircraft previously operated under any Existing Codeshare Agreement that has terminated or expired ("Repositioned Aircraft"), Operator shall promptly provide Delta with a right of first offer to operate some or all such New Aircraft and/or Repositioned Aircraft under the Delta Connection Program. Operator and Delta agree to negotiate on a good faith basis exclusively with each other for not less than fifteen (15) business days concerning the terms on which such New Aircraft and/or Repositioned Aircraft would be placed into service under the Delta Connection Program. If the parties are unable to reach agreement on such terms or Delta declines the right of first offer, Operator shall have the right to enter into a code share agreement with any other party with respect to the operation of such New Aircraft and/or Repositioned Aircraft regardless of the final terms of such code share agreement, but at all times subject to the provisions of Article 2 hereof.

<u>ARTICLE 18.</u> 

[Intentionally Omitted]

<u>ARTICLE 19. COVENANTS OF OPERATOR</u>. Operator or RJET, as appropriate, hereby covenants and agrees that:

A. If requested by Delta at any time during the Term of this Agreement, Republic shall place its flight designator code, "RP", on certain flights operated by Delta or an affiliate of Delta.

B. **[\*\*\*]**

C. In the event that any of the Aircraft are owned and debt financed by Republic, as soon as reasonably practicable, Republic shall use commercially reasonable efforts to convert any such debt financing into an operating lease arrangement; provided any such lease (i) is financially more favorable than the existing debt financing and (ii) shall be subject to the prior written approval of Delta.

D. Upon the addition of any and each aircraft to the original sixteen (16) Aircraft set forth on Exhibit A to be operated by Republic pursuant to the terms and conditions of this Agreement, and any amendment thereto, RJET shall promptly issue to Delta a warrant to purchase **[\*\*\*]** shares of RJET Common Stock in the form attached hereto as <u>Exhibit E</u>.

E. Subject to (i) its Existing Codeshare Agreement with United in effect as of the date hereof or any amendment to that agreement that contains a provision whereby Republic agrees to offer preferential new hire opportunities to United's furloughed pilots in connection with the aircraft operated by Republic for United, (ii) any future code share agreement with a carrier that contains a provision whereby Republic agrees to offer preferential new hire opportunities to such carrier's furloughed pilots in connection with the aircraft operated by Republic for such carrier,

------

and (iii) the existing seniority rights of RJET pilots, Republic agrees that any pilot furloughed by Delta will be given preferential new hire opportunities at Republic if such pilot completes all new hire paper work, meets all new hire airman and medical qualifications, satisfies background checks and successfully completes an interview and employment process. Not less than 120 days prior to the in-service date of the first Aircraft, Republic and Delta shall determine and implement mutually acceptable procedures and processes to effectuate the new hire opportunity commitment set forth above. Delta agrees to offer preferential interviews for employment to airmen employed by Republic, subject to Delta's objectives for diversity and experience among newly hired pilots.

<u>ARTICLE 20. CONTRACT INTERPRETATION</u>.

A. This Agreement is subject to, and will be governed by and interpreted in accordance with, the internal laws of the State of New York, excluding conflicts of laws rules, and of the United States of America. Any action or proceeding seeking to enforce any provision of, or based on any right arising out of, this Agreement may only be brought in the courts of the State of Georgia, or, if it has or can acquire jurisdiction, in the United States District Court for the Northern District of Georgia, and each of the parties hereto irrevocably consents to the exclusive jurisdiction of such courts (and of the appropriate appellate courts) in any such action or proceeding and waives, to the fullest extent permitted by law, any objection to venue laid therein. Process in any action or proceeding referred to in the proceeding sentence may be served on any party anywhere in the world. Each party further agrees to waive any right to a trial by jury.

B. The descriptive headings of the several articles and sections of this Agreement are inserted for convenience only, confer no rights or obligations on either party, and do not constitute a part of this Agreement.

C. Time is of the essence in interpreting and performing this Agreement.

D. This Agreement constitutes the entire understanding between the parties with respect to the subject matter hereof, and any other prior or contemporaneous agreements, whether written or oral, are expressly superseded hereby.

E. If any part of any provision of this Agreement shall be invalid or unenforceable under applicable law, such part shall be ineffective to the extent of such invalidity or unenforceability only, without in any way affecting the remaining parts of such provision or the remaining provisions.

F. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which, taken together, shall constitute one and the same instrument.

------

<u>ARTICLE 21. CIRCUMSTANCES BEYOND THE PARTIES' CONTROL</u>.

With the exception of outstanding rights and obligations and payments that are due, each party will be relieved of its obligations under this Agreement in the event, to the extent and for the period of time that performance is delayed or prevented caused by any acts of God, acts of terrorism or hostilities, war, strike, labor disputes, work stoppage, fire, act of government, court order, in each case reasonably beyond the control of that party, including but not limited to, non-delivery or delay in delivery of the Aircraft or delay in the completion of required training of the Operator's employees by the Aircraft manufacturer or delay in the receipt of any necessary government or regulatory approvals (each, a "Force Majeure Event"). Each of the parties acknowledges that it may or may not realize the full economic or other benefits that it expects to realize from this Agreement and that any failure to realize any or all of such benefits shall not constitute a Force Majeure Event.

<u>ARTICLE 21A. NON-EXCLUSIVE LICENSE GRANTED</u>.

A. Operator will conduct all operations described herein under the service mark "Delta Connection." Delta hereby grants to Operator a nonexclusive, nontransferrable license to use certain trademarks, service marks, logos and trade names that Delta owns or has the right to use, including, "Delta," "Delta Connection," "SkyMiles," and the Delta widget design (collectively, the "Delta Marks") in connection with the services to be rendered by Operator pursuant to this Agreement; provided, however, that at any time during the Term of this Agreement, Delta may alter, amend or revoke the license hereby granted and require Operator's use of a new or different Delta Mark in connection with the services provided hereunder as Delta may determine in its sole discretion.

B. Operator hereby acknowledges Delta's right to use the Delta Marks, further acknowledges the validity of the Delta Marks, and agrees that it will not do anything in any way to infringe or abridge Delta's, or any of its affiliates', rights in the Delta Marks or directly or indirectly to challenge the validity of the Delta Marks.

C. Operator shall not use any of the Delta Marks without Delta's prior written consent.

D. Nothing in this Agreement shall be construed to give Operator the exclusive right to use any of the Delta Marks, or to abridge Delta's right to use or license any of its trademarks, service marks, trade names or logos (collectively, "Identification") and to license such other uses of such Identification as Delta or its affiliates may desire.

E. Should this Agreement be canceled or otherwise terminated for any reason as set forth in Article 11 hereof, all right to use the Delta Marks shall revert to Delta and shall not thereafter be used by Operator in any form or fashion.

F. <u>Branding</u>.

------

1. <u>Livery</u>. Each of the Aircraft shall be in the color scheme, including exterior paint and interior upholstery and appointments ("Livery") of the Delta Connection Livery, as provided by Delta to Republic from time to time.

2. <u>On Board Branding</u>. Delta shall control and provide to Republic at no cost all on board branding and in-flight materials including, without limitation, in-flight publications, food and beverage products, paper goods, service ware and flight attendant uniforms.

<u>ARTICLE 22. MODIFICATION AND WAIVER</u>.

No amendment, modification, supplement, termination or waiver of any provision of this Agreement, and no consent to any departure by any party therefrom, shall in any event be effective unless in writing signed by authorized representatives of all parties, and then only in the specific instance and for the specific purpose given.

<u>ARTICLE 23. NOTICES</u>.

Unless otherwise provided herein, all notices, requests and other communications required or provided for hereunder shall be in writing (including telecopy or similar teletransmission or writing) and shall be given at the following addresses:

(1) If to Delta:

Delta Air Lines, Inc.

1030 Delta Boulevard

Atlanta, GA 30354

Dept. 663

Attention: Senior Vice President - Network and Revenue Management

Telecopy: **[\*\*\*]**

with copies to:

Delta Air Lines, Inc.

1030 Delta Boulevard

Atlanta, GA 30354

Dept. 856

Attn: Sr. V.P. - Finance, Treasury and Corporate Development

Telecopy: **[\*\*\*]**

Delta Connection, Inc.

1025 Virginia Avenue

Suite 410

Atlanta, GA 30354

Dept. 009

Attn: Chief Financial Officer

Telecopy: **[\*\*\*]**

------

Delta Air Lines, Inc.

1030 Delta Boulevard

Atlanta, GA 30354

Dept. 981

Attn: Sr. V.P. and General Counsel

Telecopy: **[\*\*\*]**

(2) If to Operator:

Republic Airline, Inc.

8909 Purdue Road

Indianapolis, IN 46268

Attention: President

Telecopy: **[\*\*\*]**

with a copy to:

Wexford Capital LLC

411 West Putnam Avenue

Greenwich, CT 06830

Attention: President

Telecopy: **[\*\*\*]**

and

Attention: General Counsel

Telecopy: **[\*\*\*]**

(3) If to RJET:

Republic Airways Holdings, Inc.

8909 Purdue Road

Indianapolis, IN 46268

Attention: President

Telecopy: **[\*\*\*]**

with a copy to:

Wexford Capital LLC

411 West Putnam Avenue

Greenwich, CT 06830

Attention: President

Telecopy: **[\*\*\*]**

and

Attention: General Counsel

Telecopy: **[\*\*\*]**

------

Any such notice, request or other communication shall be effective (i) if given by mail, upon the earlier of receipt or the third business day after such communication is deposited in the United States mails, registered or certified, with first class postage prepaid, addressed as aforesaid or (ii) if given by any other means including, without limitation, by air courier, when delivered at the address specified herein. Any party may change its address for notice purposes by notice to the other party in the manner provided herein.

<u>ARTICLE 24. ASSIGNMENT</u>.

This Agreement shall bind and inure to the benefit of Delta and Operator and their respective successors and assigns; provided, however, neither party may assign or transfer this Agreement or any portion hereof to any person or entity without the express written consent of the other party. Any assignment or transfer, by operation of law or otherwise, without such consent shall be null and void and of no force or effect.

<u>ARTICLE 25. GOOD FAITH</u>.

Each party shall exercise good faith in its dealings with the other party hereto and in performance of its obligations under this Agreement.

<u>ARTICLE 26. CONFIDENTIALITY</u>.

A. Except as otherwise provided below, each party shall, and shall ensure that its directors, officers, employees, affiliates and professional advisors (collectively, the "Representatives"), at all times, maintain strict confidence and secrecy in respect of all Confidential Information (as defined below) of the other party (including its affiliates) received directly or indirectly as a result of this Agreement. If a party (the "Disclosing Party") in good faith determines that it is required to disclose any Confidential Information of other party (the "Affected Party") in order to comply with any applicable law or government regulation, or under the terms of a subpoena or order issued by a court or governmental body, it shall (a) notify the Affected Party immediately of the existence, terms and circumstances surrounding such request, (b) consult with the Affected Party on the advisability of taking legally available steps to resist or narrow such request and (c) if any disclosure of Confidential Information is required to prevent the Disclosing Party from being held in contempt or subject to other legal penalty, furnish only such portion of the Confidential Information as it is legally compelled to disclose and use commercially reasonable efforts (at the cost of the party whose Confidential Information is being protected) to obtain an order or other reliable assurance that confidential treatment shall be accorded to the disclosed Confidential Information. Each party agrees to transmit Confidential Information only to such of its Representatives as required for the purpose of implementing and administering this Agreement, and shall inform such Representatives of the confidential nature of the Confidential Information and instruct such Representatives to treat such Confidential Information in a manner consistent with this Article 26.

------

For purposes of this Agreement, "Confidential Information" shall mean (a) all confidential or proprietary information of a party, including, without limitation, trade secrets, information concerning past, present and future research, development, business activities and affairs, finances, properties, methods of operation, processes and systems, customer lists, customer information (such as passenger name record or "PNR" data) and computer procedures and access codes; and (b) the terms and conditions of this Agreement, and any reports, invoices or other communications between the parties given in connection with the negotiation or performance of this Agreement; and (c) excludes (i) information already in a party's possession prior to its disclosure by other party; (ii) information obtained from a third person or entity that is not prohibited from transmitting such information to the receiving party as a result of a contractual, legal or fiduciary obligation to the party whose information is being disclosed; (iii) information that is or becomes generally available to the public, other than as a result of disclosure by a party in violation of this Agreement; or (iv) information that has been or is independently acquired or developed by a party, or its affiliate, without violating any of its obligations under this Agreement.

B. Each party acknowledges and agrees that in the event of any breach of this Article 26, the Affected Party shall be irreparably and immediately harmed and could not be made whole by monetary damages. Accordingly, it is agreed that, in addition to any other remedy at law or in equity, the Affected Party shall be entitled to an injunction or injunctions (without the posting of any bond and without proof of actual damages) to prevent breaches or threatened breaches of this Article 26 and/or to compel specific performance of this Article 26.

C. The confidential obligations of the parties under this Article 26 shall survive the termination or expiration of this Agreement.

------

IN WITNESS WHEREOF, the parties have executed this Agreement by their undersigned duly authorized representatives:

---

| | | | |
|:---|:---|:---|:---|
| REPUBLIC AIRWAYS HOLDINGS, INC. | REPUBLIC AIRWAYS HOLDINGS, INC. | DELTA AIR LINES, INC. | DELTA AIR LINES, INC. |
| By: | /s/ Bryan Bedford | By: | /s/ Fredrick W.P. Buttrelll |
| Name: | Bryan Bedford | Name: | Fredrick W.P. Burrell |
| Title: | President &CEO | Title: | President & CEO |

---

---

| | |
|:---|:---|
| REPUBLIC AIRLINE, INC. | REPUBLIC AIRLINE, INC. |
| By: | /s/ Bryan Bedford |
| Name: | Bryan Bedford |
| Title: | President & CEO |

---

------

**<u>EXHIBIT A</u>**

**<u>The Aircraft</u>**

**Firm Aircraft Delivery Schedule\*** 

---

| | | |
|:---|:---|:---|
| Aircraft<br> Number | Date of:<br> Delivery | In-Service |
| DL-1 | Jun-05 | 7/1/05 |
| DL-2 | Jul-05 | 8/1/05 |
| DL-3 | Aug-05 | 8/15/05 |
| DL-4 | Aug-05 | 9/1/05 |
| DL-5 | Sept-05 | 9/20/05 |
| DL-6 | Sept-05 | 10/01/05 |
| DL-7 | Oct-05 | 11/01/05 |
| DL-8 | Nov-05 | 12/01/05 |
| DL-9 | Jan-06 | 2/01/06\*\* |
| DL-10 | Feb-06 | 3/01/06 |
| DL-11 | Mar-06 | 4/01/06 |
| DL-12 | Apr-06 | 5/01/06 |
| DL-13 | May-06 | 5/15/06 |
| DL-14 | May-06 | 6/01/06 |
| DL-15 | Jun-06 | 7/01/06 |
| DL-16 | Jul-06 | 8/01/06 |

---

\* Notwithstanding any other provision of the Agreement, Delta and Operator agree that in the event Delta is the subject of a proceeding under any chapter of the bankruptcy code, Operator may not be able to finance, accept delivery or place into service under this Agreement one or more of the Aircraft, and that Operator shall have no liability to Delta, and Delta shall have no cause to terminate this Agreement, as a result of any such failure to finance, accept delivery or place into service any such Aircraft. 

\*\* The one (1) spare Aircraft

**[\*\*\*]** 

**[\*\*\*]** 

***[\*\*\*]***

------

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| [\*\*\*] | | | | | |
| [\*\*\*] | | | | | |
|  | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | | | | | |

---

---

| | |
|:---|:---|
| [\*\*\*] | [\*\*\*] |
|  **[\*\*\*]** | [\*\*\*] |
|  **[\*\*\*]** | **[\*\*\*]** |
|  **[\*\*\*]** | [\*\*\*] |
|  **[\*\*\*]** | **[\*\*\*]** |
|  **[\*\*\*]** | **[\*\*\*]** |
|  **[\*\*\*]** | **[\*\*\*]** |
|  **[\*\*\*]** | **[\*\*\*]** |
|  **[\*\*\*]** | **[\*\*\*]** |
|  **[\*\*\*]** | [\*\*\*] |

---

------

**<u>Exhibit C</u>**

**<u>RES SYSTEM EQUIPMENT</u>**

**[\*\*\*]** 

**[\*\*\*]** 

**1.** **[\*\*\*]** 

**2.** **[\*\*\*]** 

**3.** **[\*\*\*]** 

**4.** **[\*\*\*]** 

------

**<u>Exhibit D</u>**

**<u>Minimum Utilization Requirements</u>**

---

| | | |
|:---|:---|:---|
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |

---

## Exhibit 10.26

**Exhibit 10.26.2** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

AMENDMENT NUMBER ONE TO

<u>DELTA CONNECTION AGREEMENT</u> 

This Amendment Number One (this "<u>First Amendment</u>"), dated the 12<sup>th</sup> day of March, 2007, to the Delta Connection Agreement dated and effective January 13, 2005 (as previously amended from time to time, the "<u>Agreement</u>"), is among Delta Air Lines, Inc., 1030 Delta Boulevard, Atlanta, Georgia 30320 ("<u>Delta</u>"), Shuttle America Corp. (as assignee of Republic Airline, Inc.) ("<u>Shuttle America</u>" or "<u>Operator</u>"), 8909 Purdue Road, Indianapolis, Indiana 46268 and Republic Airways Holdings, Inc. ("<u>Republic</u>"), 8909 Purdue Road, Indianapolis, Indiana 46268.

WHEREAS, Delta, Shuttle America and Republic are parties to the Agreement;

WHEREAS, the Agreement currently provides for the Operator to operate sixteen (16) Embraer ERJ 170 aircraft as a Delta Connection Carrier; and

WHEREAS, the parties desire to amend the Agreement.

NOW, THEREFORE, for and in consideration of the mutual undertakings set forth herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Delta, Operator and Republic, intending to be legally bound, hereby agree as follows:

**1.**  **<u>Defined Terms.</u>** All capitalized terms used, but not defined, herein shall have the meaning
ascribed to such terms in the Agreement.

**2.**  **<u>CPI Limitation.</u>** For calendar year 2007 only, for purposes of establishing Base Rate Costs
pursuant to Article 3G of the Agreement, notwithstanding any provisions of the Agreement to the contrary, CPI shall not in any event exceed [\*\*\*].

**3.**  **<u>Rate Reduction.</u>** Commencing on the later of (x) May 1, 2007 and (y) the date
on which the conditions set forth in Section 4 below are either satisfied or waived (the " <u>Effective Date</u> "), the aggregate Per Block Hour reimbursement rate for each Aircraft shall be reduced by [\*\*\*](after giving effect to
escalation pursuant to Article 3G for calendar year 2007) for the remaining term of the Agreement. The parties agree that, upon and following satisfaction of the conditions provided by Section 4, as of the Effective Date, the Per Block Hour
reimbursement rate for each Aircraft for the remainder of calendar year 2007 shall be [\*\*\*]. For the avoidance of doubt, such reduction in the Per Block Hour reimbursement rate shall not be effective with respect to the utilization of the Aircraft
prior to the Effective Date.

------

**4.**  **<u>Conditions to Effectiveness.</u>** The effectiveness of this Amendment shall be subject to and
conditioned upon the United States Bankruptcy Court for the Southern District of New York, which is administering Delta's case under Chapter 11 Case No. 05-17923 (ASH), (the " <u>Bankruptcy Court</u> ") having entered an order (collectively, the " <u>Approval Order</u> ") (A) approving this First Amendment, Amendment Number Six (the " <u>Sixth Amendment</u> ") dated of even date herewith to the Delta Connection
Agreement dated as of June 7, 2002 among Delta, Chautauqua Airlines, Inc. (" <u>Chautauqua</u> ") and Republic (the " <u>Chautauqua Delta Connection Agreement</u> ") and the Letter Agreement dated of even date herewith among
Chautauqua, Republic, Shuttle America and Delta (the " <u>Letter Agreement</u> "), (B) providing for Delta's assumption of the Agreement (as amended by this First Amendment) and the Chautauqua Delta Connection Agreement (as amended by
the Sixth Amendment) pursuant to Section 365 of the Bankruptcy Code, and (C) authorizing Delta to perform its obligations and exercise its rights under this First Amendment, the Sixth Amendment and the Letter Agreement to execute and
deliver the other instruments and documents contemplated thereby and to consummate the transactions contemplated thereby. Such effectiveness shall also be conditional on any motion for rehearing or reconsideration of the Approval Order having been
denied, and if the Approval Order shall have been appealed, either (i) no stay of the Approval Order shall be in effect or (ii) if such a stay has been granted by a court of competent jurisdiction, then (x) the stay shall have been
dissolved or (y) a final order of a court having jurisdiction to hear such appeal shall have affirmed the Approval Order and the time allowed to appeal from such affirmance or to seek review or rehearing thereof shall have expired and no
further hearing, appeal or petition for certiorari can be taken or granted. Delta shall use its commercially reasonable efforts to obtain an Approval Order on a prompt basis after the parties have executed this First Amendment, the Sixth Amendment
and the Letter Agreement, and in connection therewith will file an appropriate motion with the Bankruptcy Court by no later than March 15, 2007.

5. <u>Miscellaneous.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. This Amendment constitutes the entire understanding of the parties with respect to the subject matter hereof,
and any other prior or contemporaneous agreements, whether written or oral, are expressly superseded hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. This First Amendment may be executed in any number of counterparts, each of which shall be deemed an original
and all of which, taken together, shall constitute one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Except as specifically stated herein, all other terms and conditions of the Agreement shall remain in full
force and effect.

[Remainder of page intentionally left blank]

------

IN WITNESS WHEREOF, the parties have executed this First Amendment by their undersigned duly authorized representatives:

---

| | |
|:---|:---|
| **Republic Airways Holdings, Inc.** | **Delta Air Lines, Inc.** |
| /s/ Bryan Bedford | /s/ Edward Bastian |
| Name: Bryan Bedford <br>Title: Chairman and CEO | Name: Edward Bastian <br>Title: Executive VP & CFO |

---

---

| |
|:---|
| **Shuttle America Corp.** |
| /s/ Bryan Bedford |
| Name: Bryan Bedford <br>Title: President and CEO |

---

## Exhibit 10.26

**Exhibit 10.26.3** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

AMENDMENT NUMBER TWO TO

<u>DELTA CONNECTION AGREEMENT</u> 

This Amendment Number Two (this "<u>Second Amendment</u>"), dated the 21st day of August, 2007, to the Delta Connection Agreement dated and effective January 13, 2005 (as previously amended from time to time, the "<u>Agreement</u>"), is among Delta Air Lines, Inc., 1030 Delta Boulevard, Atlanta, Georgia 30320 ("<u>Delta</u>"), Shuttle America Corp. (as assignee of Republic Airline, Inc.) ("<u>Shuttle America</u>" or "<u>Operator</u>"), 8909 Purdue Road, Indianapolis, Indiana 46268 and Republic Airways Holdings, Inc. ("<u>Republic</u>"), 8909 Purdue Road, Indianapolis, Indiana 46268.

WHEREAS, Delta, Shuttle America and Republic are parties to the Agreement;

WHEREAS, the Agreement currently provides for the Operator to operate sixteen (16) Embraer ERJ 170 aircraft (the "ERJ 170 Aircraft") as a Delta Connection Carrier; and

WHEREAS, the parties desire to amend the Agreement to replace the ERJ 170 Aircraft with sixteen (16) new ERJ 175AR aircraft.

NOW, THEREFORE, for and in consideration of the mutual undertakings set forth herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Delta, Operator and Republic, intending to be legally bound, hereby agree as follows:

1.  **<u>Defined Terms.</u>** All capitalized terms used, but not defined, herein shall have the meaning
ascribed to such terms in the Agreement.

2. Section 1(A) of the Agreement is hereby amended by deleting the first sentence of such section in its
entirety and replacing it with the following:

Operator hereby appoints Delta as its agent to publish all fares, schedules and related information under Delta's two letter flight designator code in city pairs specified by Delta on the sixteen (16), including one (1) spare, Embraer ERJ 175AR aircraft set forth on Exhibit A attached hereto (the "ERJ 175 Aircraft") and any other aircraft subsequently agreed by the parties to be operated by Operator (together with the ERJ 175 Aircraft, collectively, the "Aircraft"), and Delta hereby accepts such appointment.

3. <u>Exhibit A</u> to the Agreement is hereby deleted in its entirety and replaced with the Exhibit A attached to
this Second Amendment.

------

4. A.Operator expects that the ERJ 175 Aircraft shall be available to be placed into Delta Connection service no
later than the dates set forth on <u>Exhibit A</u>. Should Operator receive notification from the manufacturer of the aircraft that aircraft deliveries are delayed, Operator shall notify Delta of any such delay as soon as practicably as possible.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Simultaneously with the placement of each ERJ 175 Aircraft into service under the Agreement, one (1) ERJ 170 Aircraft shall be removed from Delta Connection service and the scope of the Agreement as of such date. In no event shall an ERJ 170 Aircraft be removed from Delta Connection service until such aircraft is fully replaced by one of the ERJ 175 Aircraft.

5. Section 3(A)(ii)(2) of the Agreement is hereby deleted in its entirety and replaced with the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) <u>Aircraft Lease Expense</u> - Operator's actual aircraft lease expenses for each of the ERJ 175 Aircraft as determined in accordance with <u>Exhibit B</u> (the "Aircraft Lease Expense") attached hereto and incorporated herein (the "Aircraft Lease Expense"); provided, however, (y) the average Aircraft Lease Expense shall be capped at an amount equivalent to a monthly rate of [\*\*\*] per ERJ 175 Aircraft and (z) any Mark-UP of the Aircraft Lease Expense shall be capped at an amount equivalent to a monthly rate of [\*\*\*] for each ERJ 175 Aircraft.

6. Section 3(G) of the Agreement is hereby amended by deleting "[\*\*\*]" from the end of the first
sentence of such section and replacing it with "[\*\*\*]%".

7. Section 11(F) of the Agreement is hereby amended by deleting the word and number "seven (7)"
from the first sentence of such section and replacing them with "ten (10)".

8.  **<u>Miscellaneous.</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. This Amendment constitutes the entire understanding of the parties with respect to the subject matter hereof,
and any other prior or contemporaneous agreements, whether written or oral, related thereto are expressly superseded hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. This Second Amendment may be executed in any number of counterparts, each of which shall be deemed an original
and all of which, taken together, shall constitute one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Except as specifically stated herein, all other terms and conditions of the Agreement shall remain in full
force and effect.

[Remainder of page intentionally left blank]

------

IN WITNESS WHEREOF, the parties have executed this Second Amendment by their undersigned duly authorized representatives:

---

| | |
|:---|:---|
| **Republic Airways Holdings, Inc.** | **Delta Air Lines, Inc.** |
| /s/ Bryan Bedford | /s/ Wayne Aaron |
| Name: Bryan Bedford | Name: Wayne Aaron |
| Title: Chairman and CEO | Title: Vice President - Delta Connection |

---

---

| |
|:---|
| **Shuttle America Corp.** |
| /s/ Bryan Bedford |
| Name: Bryan Bedford |
| Title: President |

---

------

**<u>EXHIBIT A</u>**

**<u>Aircraft In-Service Schedule</u>**

The ERJ 175AR Aircraft shall be placed into Delta Connection service in accordance with the following in-service schedule:

---

| | |
|:---|:---|
| **Date** | **# of Aircraft Placed into Service** |
| [\*\*\*] |  |
| [\*\*\*] |  |
| [\*\*\*] |  |
| [\*\*\*] |  |
| [\*\*\*] |  |
| [\*\*\*] |  |
| [\*\*\*] |  |
| [\*\*\*] |  |
| **Total** | **16** |

---

------

**<u>EXHIBIT B</u>**

**<u>Aircraft Lease Expense</u>**

---

| | |
|:---|:---|
| **Assumptions:** |  |
| Spread | [\*\*\*]% |
| 9 Year T-Bill Rate (a) | [\*\*\*]% |
| Implied Rate | [\*\*\*]% |
| Term Years | &nbsp;&nbsp;&nbsp;&nbsp; [\*\*\*] |
|  | mortgage style - |
| Amortization | level payment |
| Payment Schedule | In Advance |
| Leverage (b) | [\*\*\*] |
| **Aircraft Lease Rate** | [\*\*\*] |

---

Notes:

a) We will use the [\*\*\*] rate on the date we close aircraft financing. For example purposes only, the [\*\*\*] rate
on [\*\*\*] was [\*\*\*]%

b) In January 2008 economics, subject to Embraer escalation adjustment, capped at [\*\*\*]% annually

## Exhibit 10.26

**Exhibit 10.26.4** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

**AMENDMENT NUMBER THREE TO** 

**DELTA CONNECTION** 

**<u>AGREEMENT</u>**

This Amendment Number Three (this "Amendment"), dated as of the 31st day of January, 2011 ("Amendment Number Three Effective Date"), to the Delta Connection Agreement dated and effective January 13, 2005 (as amended from time to time, the "Agreement"), is among Delta Air Lines, Inc., 1030 Delta Boulevard, Atlanta, Georgia 30320 ("Delta"), Shuttle America Corp. (as assignee of Republic Airline, Inc.) ("Shuttle America" or "Operator"), 8909 Purdue Road, Indianapolis, Indiana 46268 and Republic Airways Holdings, Inc. ("Republic"), 8909 Purdue Road, Indianapolis, Indiana 46268.

WHEREAS, Delta, Shuttle America and Republic are parties to the Agreement; and

WHEREAS, the parties desire to establish the annual Base Rate Costs for certain periods, add additional aircraft within the scope of the Agreement and amend certain provisions of the Agreement, each pursuant to the terms of the Agreement; and

NOW, THEREFORE, for and in consideration of the mutual undertakings set forth herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Delta, Operator and Republic, intending to be legally bound, hereby agree as follows:

1.  **<u>Defined Terms.</u>** All terms capitalized used, but not defined, herein shall have the meaning
ascribed to such terms in the Agreement.

2.  **<u>Compensation Matters</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. <u>2011 Through 2016 Base Rate Costs; 2009 and 2010 Payments</u>. Notwithstanding the terms and conditions set
forth in Section 3(G) of the Agreement, the parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *2011 Base Rate Costs*. Subject to the potential adjustments of the Base Rates Costs with respect to
Airframe Maintenance, Engine Consumables and Depreciation (parts and engines) as contemplated by Section 2(B) below, the Base Rate Costs for calendar year 2011 shall be as set forth in <u>Exhibit A</u> attached to this Amendment and
incorporated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *2012, 2013, 2014 and 2015 Base Rate Costs*. With respect to the Bases Rate Costs for each of calendar
years 2012, 2013, 2014 and 2015, subject to the potential adjustments of the Base Rates Costs with respect to Airframe Maintenance, Engine Consumables and Depreciation (parts and engines) as contemplated by Section 2(B)

------

below, each such calendar year's applicable Base Rate Costs shall be determined by multiplying the Base Rate Costs in effect for the immediately preceding calendar year (e.g calendar year 2013 for establishing the Base Rate Costs for calendar year 2014) by a percentage equal to the sum of [\*\*\*] <u>plus</u> the applicable "CPI Change" (as calculated pursuant to sub-clause (v) below) <u>plus</u> [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) *2016 Base Rate Costs*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Operator and Delta hereby agree to meet prior to September 30, 2015, in order to establish the Base Rate Costs for calendar year 2016. In connection therewith, by no later than thirty (30) days prior to the initial meeting between Operator and Delta, Operator shall provide Delta with (i) [\*\*\*]. Delta shall have the right to review, audit and provide comments and proposed revisions to such estimate, and such comments and revisions shall be duly considered by Operator and, subject to (iii)(c) below, mutually agreed upon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to the potential adjustments of the Base Rates Costs with respect to Airframe Maintenance, Engine Consumables and Depreciation (parts and engines) as contemplated by Section 2(B) below, the Base Rate Costs for calendar year 2016 shall be determined as follows: (i) the respective Base Rate Costs with respect to Pilot Wages and Flight Attendant Wages shall be based on the twelve (12) month period of actual expenses incurred by Operator from September 1, 2014 through August 31, 2015 with respect to Pilot Wages and Flight Attendant Wages, excluding any one-time or unusual items, [\*\*\*]; (ii) the respective Base Rate Costs with respect to Maintenance Labor, Airframe Maintenance (both per departure and per flight hour) and Engine Consumables shall be based on the historical costs and bona fide good faith estimate provided by Operator pursuant to Section 2.A.(iii)(a) above and (iii) the Base Rate Costs with respect to Operations Support, Overhead, Depreciation, Operations Expenses, SOC and Hangar Lease Costs shall be determined by multiplying each of the respective Base Rate Costs in effect in calendar year 2015 for such Base Rate Costs by a percentage equal to the sum of [\*\*\*] <u>plus</u> the CPI Change for 2016 <u>plus</u> [\*\*\*]. The parties acknowledge and agree that the establishment of the Base Rate Costs for calendar year 2016 pursuant to this Section 2.A.(iii)(b) may result in an increase, decrease or no change of the Base Rate Costs for calendar year 2016 as compared to the Base Rate Costs in effect for calendar year 2015.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event that the parties are unable to agree on the Base Rate Costs for calendar year 2016 in accordance with Section 2.A.(iii)(b) above, the parties further agree that (i) at the request of either party, and at the expense of the requesting party, the parties shall engage a mutually agreed independent consultant to determine such Base Rate Costs, [\*\*\*], and (ii) if no new Base Rate Costs have been adopted by January 1, 2016, the Base Rate Costs in effect for calendar year 2015 shall be used on an interim basis as the Direct Costs and Base Compensation for payment purposes for calendar year 2016, subject to reconciliation and retroactive adjustment upon the adoption of new Base Rate Costs for calendar year 2016. Any determination by the independent consultant shall be binding on and implemented by the parties.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) For the avoidance of doubt, the parties agree that effective on the Amendment Number Three Effective Date, Section 3G of the Agreement is hereby deleted in its entirety and replaced with the following:

The Direct Costs and Base Compensation in effect for each calendar year will apply for all completed flights during such calendar year, and with respect to the Base Rate Costs only, Operator will bear any risks of additional expenses not reflected therein. Operator shall be entitled to payment of all Reimbursable Costs, Pass Through Costs and Other Reimbursable Costs based on the actual amounts incurred during such calendar year. Operator will use its commercially reasonable efforts consistent with the business practices and policies used to develop the first years Direct Cost model and with the prudent operation of its business to minimize its costs to operate the Aircraft in accordance with this Agreement. Operator and Delta each agree to notify the other as soon as reasonably practicable of any anticipated or potentially substantial change of cost or operational performance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) *2017 and 2018 Base Rate Costs*. Subject to the potential adjustments of the Base Rates Costs with respect
to Airframe Maintenance, Engine Consumables and Depreciation (parts and engines) as contemplated by Section 2(B) below, the Base Rate Costs for 2017 and 2018 shall be determined by multiplying the Base Rate Costs in effect for the immediately
preceding calendar year (e.g calendar year 2016 for establishing the Base Rate Costs for calendar year 2017) by a percentage equal to the sum of [\*\*\*] <u>plus</u> the applicable CPI Change <u>plus</u> [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) *CPI*. For all purposes of this Amendment, the "CPI Change" to apply in determining a particular
calendar year's (the "Target Year") Base Rate Costs as contemplated in Clauses 2.A. (ii), (iii) and (iv) above shall be calculated by taking the percentage change of the average CPI from the calendar year that is two
(2) years prior to the Target Year to the average CPI from the calendar year prior to the Target Year (as determined pursuant to the first paragraph of Section 3.G. of the Agreement) (e.g. the CPI Change to be applied to determine the 2017
Base Rate Costs shall equal the percent difference between the average CPI for 2016 and the average CPI for 2015); provided, however, in no event shall the CPI Change exceed [\*\*\*] with respect to any Target Year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) *2009 and 2010 Payments*. Each of the parties acknowledges and agrees that with respect to calendar years
2009 and 2010 the amounts paid by Delta to Operator as of the Amendment Number 3 Effective Date in exchange for the flying and operation of the Aircraft by Operator during such calendar years represent full and final satisfaction of any amounts owed
by Delta to Operator in exchange for the flying and operation of the Aircraft by Operator during such calendar years; excluding, however, amounts owing, if any, with respect to (a) the potential Monthly Incentive

------

Compensation with respect to Operator's flying and operation of the Aircraft during February 2010 and December 2010, (b) the potential Semi-Annual Incentive Compensation with respect to Operator's flying and operation of the Aircraft during the six-month period between July 1, 2010 and December 31, 2010 and (c) final reconciliation, as contemplated by Section 3.E. of the Agreement, of Operator's December 2010 operations and Operator's 2010 Pass Through Costs and associated Mark-Up (if any).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. <u>Maintenance Sourcing.</u> Delta and Operator mutually covenant and agree to jointly solicit proposals from
one or more third parties to provide Airframe Maintenance (parts and/or labor) for the Aircraft (each, a "Maintenance Sourcing Proposal"); provided, that Operator shall be under no obligation to so solicit any such proposals to the extent
any applicable service or part with respect to the Aircraft is the subject matter of any binding agreement to which the Operator is party as of the Amendment Number Three Effective Date. Operator shall provide Delta with all commercially reasonable
information required by Delta in connection with any Maintenance Sourcing Proposal, including but not limited to, inventory levels, current modification status, and component reliability history. If any Maintenance Sourcing Proposal results in an
agreement being entered into by Operator or Operator independently enters into any agreement with a third party to provide Airframe Maintenance (parts and/or labor) for the Aircraft after the Amendment Number Three Effective Date (each, a
"Maintenance Sourcing Agreement"), the Base Rate Costs with respect to Airframe Maintenance, Depreciation and/or Engine Consumables, as applicable based on the scope of the applicable Maintenance Sourcing Agreement, shall be reduced by an
amount equal to the total cost savings realized by Operator pursuant to such Maintenance Source Agreement (the "Maintenance Cost Savings"). Such Maintenance Cost Savings shall be calculated by the Operator and agreed to by Delta. If a
Maintenance Sourcing Proposal with a third party that is acceptable to Operator, such acceptance not to be unreasonably withheld or delayed, is available that would have the effect of lowering Operator's costs, but Operator does not consummate
a transaction with respect to such Maintenance Sourcing Proposal, the Base Rate Costs with respect to Airframe Maintenance, Depreciation and/or Engine Consumables, as applicable based on the scope of the applicable Maintenance Sourcing Proposal not
consummated by Operator shall be reduced by the amount of the cost savings that Operator would have realized had Operator consummated such Maintenance Sourcing Proposal. If there is disagreement on the amount by which the applicable Base Rates Costs
shall be reduced, the parties shall engage, at equal cost to Delta and Operator, a mutually agreed independent consultant to determine such amount, provided that with respect to each unresolved issue in connection therewith such independent
consultant shall be required to adopt the position of either Delta or Operator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. <u>Northeast Operations</u>. Commencing with calendar year 2011, in addition to the Direct Costs, Delta shall
pay Operator the amounts set forth on <u>Exhibit B</u> attached to this Amendment and incorporated herein in accordance with the terms and conditions set forth on such <u>Exhibit B</u>. The parties acknowledge and agree that the amounts set forth on <u>Exhibit B</u> shall be considered Base Rate Costs under the Agreement and subject to adjustment in accordance with Sections 2.A.(ii), (iii) and (iv) of this Amendment.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. <u>Potential Adjustments to Performance Thresholds</u>. Each party hereby covenants and agrees to negotiate in
good faith with the other party a potential amendment and/or modification to the Agreement with respect to the completion rate and on-time arrival rate thresholds currently required to be met by Operator in
order for Operator to be entitled to the Mark-Up, Monthly Incentive Compensation and Semi-Annual Incentive Compensation, taking into account the increase of "Northeast Shuttle Flights" and "NYC
Spoke Flights" (as such terms are defined in <u>Exhibit B</u> attached hereto) and the historic level of overall cancellations and delays affecting those operations. If the parties have not agreed to any such amendment or modification
April 30, 2011, thereafter either party shall have the option to engage, at equal cost to Delta and Operator, a mutually agreed independent consultant, to determine such Performance Thresholds, [\*\*\*]. The consultant's resolution will be
retroactively applied to all flights operated by Operator pursuant to the Agreement as of January 1, 2011. The parties agree that until the earlier of (i) the execution and delivery by the parties of an amendment to the Agreement with
respect to the completion rate and on-time arrival rate thresholds as contemplated by this Section 2.D. or (ii) September 30, 2011, for the sole purpose of calculating Operator's completion
rate for Section 11.E.(iv) of the Agreement, such calculation shall exclude cancellations of any Northeast Shuttle Flights or NYC Spoke Fights that are properly coded as weather, field conditions or Delta OCC coordinated cancellations.

3.  **<u>Addition of Eight (8)</u> <u>ERJ-170 Aircraft.</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Pursuant to Article 1(A) of the Agreement, effective as of the Amendment Number Three Effective Date, the eight
(8) Embraer ERJ 170 aircraft set forth on <u>Exhibit C</u> attached hereto and incorporated herein (the "ERJ-170 Additional Aircraft") shall be included as Aircraft under, except as otherwise
set forth in this Amendment, the terms of the Agreement. The Base Rate Costs with respect to the ERJ-170 Additional Aircraft shall be as set forth in Article 2 of this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Each ERJ-170 Additional Aircraft shall be made available by Operator to
be placed into Delta Connection service no later than the respective dates set forth on <u>Exhibit C</u> (each, a "Delivery Date"). If Operator is unable to have available any ERJ-170 Additional
Aircraft by its respective Delivery Date, Operator shall provide written notice to Delta of such delay no later than sixty (60) days prior to each respective Delivery Date. If Operator does not provide such written notice to Delta, Operator
shall pay Delta the sum of **[\*\*\*]** per day that each such ERJ-170 Additional Aircraft is not available for Delta Connection service beyond such aircraft's respective Delivery Date due to
circumstances within the control of Operator, up to a maximum of **[\*\*\*]** per each ERJ-170 Additional Aircraft.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Operator and Republic, jointly and severally, represent and warrant to Delta that each of the ERJ-170 Additional Aircraft has been maintained in accordance with Operator's FAA approved maintenance program and, excluding the Interior Modification (as defined in Section 3.G. below) scheduled C-checks of each type and ordinary and routine maintenance requirements, each of the ERJ-170 Additional Aircraft is fully operable, able to operate under the terms of the
Agreement, and is not subject to any unusual or extraordinary repair or maintenance requirements.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Notwithstanding anything in the Agreement to the contrary, each ERJ-170 Additional Aircraft shall be included as an Aircraft under the Agreement only for a period of six (6) years commencing on the respective Delivery Date of each ERJ-170 Additional Aircraft, and upon the
conclusion of each such six-year period, the applicable ERJ-170 Aircraft shall be removed from Delta Connection service and the scope of the Agreement as of such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. Each of the ERJ-170 Additional Aircraft shall be repainted in the
Delta-approved Delta Connection livery prior to its respective Delivery Date, except for one (1) ERJ-170 Additional Aircraft, which shall be painted in neutral livery. Operator shall be solely responsible
for such repainting including, without limitation, all costs and expenses associated with such repainting (and shall not be entitled to any reimbursement by Delta, under the Agreement or otherwise, of any such costs or expenses).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. Each of the ERJ-170 Additional Aircraft shall be made available for
Delta Connection service as contemplated hereby initially with the designated seat configuration as set forth in <u>Exhibit C</u> (each, a "Delivery Configuration"). Operator shall be solely responsible for having each of the ERJ-170 Additional Aircraft so configured and all costs and expenses associated therewith (and shall not be entitled to any reimbursement by Delta, under the Agreement or otherwise, of any such costs or expenses);
provided, however, that Delta shall be responsible for the costs of the **[\*\*\*]** first class seats to be installed on the last two (2) ERJ-170 Additional Aircraft made available for Delta Connection
service as contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. If any ERJ-170 Additional Aircraft are not in compliance with Delta
Connection standards currently in place on the ERJ 175AR aircraft that are Aircraft under the Agreement including, but not limited to, with respect to cabin carpets, seat belts, seat covers, curtains, class dividers, seat track covers, bin strips
(if applicable) and laminates (the "Standards"), each such aircraft shall undergo additional modifications to conform to such Standards ("Interior Modifications") at a time to be determined by Delta in consultation with Operator.
Operator shall be solely responsible for the performance of the Interior Modifications including, without limitation, all costs and expenses associated with such Interior Modifications (and shall not be entitled to any reimbursement by Delta, under
the Agreement or otherwise, of any such costs or expenses).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H. Operator shall be solely responsible for all start-up costs and
transition fees associated with including the ERJ-170 Additional Aircraft as Aircraft under the Agreement including, without limitation all costs and fees related to induction, positioning, maintenance
bridging and "sunshine" maintenance of each ERJ-170 Additional Aircraft, and Operator shall not be entitled to any reimbursement thereof by Delta under the Agreement or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. Delta, in its sole discretion, may elect to have modifications performed on the ERJ-170 Additional Aircraft in addition to the Delivery Configurations and Interior Modifications, and if Delta so elects, Delta will be solely responsible for all costs associated with such additional
modifications.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;J. Notwithstanding anything in the Agreement to the contrary, the parties agree that the Aircraft Rent/Ownership
Cost with respect to each of the ERJ-170 Additional Aircraft shall be [\*\*\*] per month (subject to potential Mark-Up in accordance with Article 3 of the Agreement)
commencing, with respect to each ERJ-170 Additional Aircraft, on the respective date each such ERJ-170 Additional Aircraft is available to be placed into Delta
Connection Service in accordance with the Agreement (as amended and modified by this Amendment).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;K. (i) The parties acknowledge and agree that one or more of the ERJ-170 Additional Aircraft may require "C-checks" on their respective airframes prior to the end of their respective six-year terms under the Agreement. [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) In addition, at the end of each ERJ-170 Additional Aircraft's six-year term, Delta shall pay to Operator in the month following the last flight under the Agreement by the applicable ERJ-170 Additional Aircraft and amount equal to the product of (y) [\*\*\*] multiplied by (z) [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;L. The parties acknowledge and agree that, pursuant to Section 3A.(ii)(1) of the Agreement, Delta is
responsible for reimbursing Operator for the usage of Engine Life Limited Parts ("LLPs") on the ERJ-170 Additional Aircraft during the respective six-year terms under the Agreement of such Aircraft. In connection therewith, at the end of each ERJ-170 Additional Aircraft's six-year term, Delta shall pay to Operator, in
the month following the last flight under the Agreement, by the applicable ERJ-170 Additional Aircraft and amount equal to the product of (y) [\*\*\*] multiplied by (z) [\*\*\*]. The parties acknowledge and agree
that the effective LLP Rate in calendar year 2011 economics is [\*\*\*] per Aircraft cycle and [\*\*\*]. Annually, but in any event no later than January 31st of each year during the Term, Operator shall provide Delta copies, certified by an officer of
Operator, of documentation, in form and substance reasonably satisfactory to Delta, that set forth the current year's [\*\*\*]. With respect to each ERJ-170 Additional Aircraft, if during the six-year term under the Agreement of the applicable ERJ-170 Additional Aircraft, any engine operating on such ERJ-170 Additional
Aircraft requires replacement of its LLPs, it is understood and agreed that [\*\*\*].

4.  **<u>Miscellaneous</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. This Amendment, together with the exhibits attached hereto, constitute the entire understanding of the parties
with respect to the subject matter hereof, and any other prior or contemporaneous agreements, whether written or oral, are expressly superseded hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Amendment may be executed in any number of counterparts, each of which shall be deemed an original and all
of which, taken together, shall constitute one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Except as specifically stated herein, all other terms and conditions of the Agreement shall remain in full
force and effect. In the event of any conflict between the terms of this Amendment and the Agreement, the terms of this Amendment shall prevail.

*{Signatures appear on following page}* 

------

IN WITNESS WHEREOF, the parties have executed this Amendment by their undersigned duly authorized representatives:

---

| | | | |
|:---|:---|:---|:---|
| Republic Airways Holdings, Inc. | Republic Airways Holdings, Inc. | Delta Air Lines, Inc. | Delta Air Lines, Inc. |
| By: | /s/ Timothy P. Dooley | By: | /s/ Don Bornhorst |
| Name: | Timothy P. Dooley | Name: Don Bornhorst | Name: Don Bornhorst |
| Title: | Vice President, Finance | Title: Senior Vice President, Delta Connection | Title: Senior Vice President, Delta Connection |

---

---

| | |
|:---|:---|
| Shuttle America Airlines, Inc. | Shuttle America Airlines, Inc. |
| By: | /s/ Timothy P. Dooley |
| Name: | Timothy P. Dooley |
| Title: | Vice President, Finance |

---

------

**<u>EXHIBIT A</u>**

**<u>2011 BASE RATE COSTS</u>**

---

| | |
|:---|:---|
|  | **2011** |
|  Operations Support (crew travel, OH) | **[\*\*\*]** |
|  Overhead (wages, rent, supplies, prof fees) | **[\*\*\*]** |
|  Depreciation (parts & engines) | **[\*\*\*]** |
| **Per Aircraft Day** | **[\*\*\*]** |
|  Pilot Wages | **[\*\*\*]** |
|  FA Wages | **[\*\*\*]** |
|  Operations Expenses (crew and mtc costs) | **[\*\*\*]** |
|  BH Reduction Fee | **[\*\*\*]** |
| **Per Block Hour** | **[\*\*\*]** |
|  Maintenance Labor | **[\*\*\*]** |
|  Airframe Maintenance | **[\*\*\*]** |
|  Engine Consumables | **[\*\*\*]** |
| **Per Flight Hour** | **[\*\*\*]** |
|  SOC | **[\*\*\*]** |
|  Airframe Maintenance | **[\*\*\*]** |
| **Per Departure** | **[\*\*\*]** |
|  Hangar Lease Costs **(Fixed Per Day)** | **[\*\*\*]** |

---

------

**<u>EXHIBIT B</u>**

**<u>Northeast Shuttle and NYC Spoke Adjustments</u>**

Delta shall pay Operator the following amounts solely and exclusively with respect to Operator's operation of the Aircraft on a "Northeast Shuttle Flight" or a "NYC Spoke Flight" (as each term is defined below)

For purposes of this Exhibit:

"<u>Northeast Shuttle Flight</u>" shall mean a flight operated by Operator with an Aircraft between LGA and BOS or between LGA and DCA; and

"<u>NYC Spoke Flight</u>" shall mean a flight operated by Operator with an Aircraft to or from LGA, JFK or EWR, but excluding any Northeast Shuttle Flight.

In connection with the Northeast Shuttle Flights and the NYC Spoke Flights and operated by Operator (if any), Delta shall pay Operator the following amounts:

[\*\*\*] per "NE AC RON" (as defined below);

[\*\*\*] per "Northeast Shuttle Block Hour" (as defined below);

[\*\*\*] per day that Operator operates one or more Northeast Shuttle Flight;

[\*\*\*] per "NYC Spoke Block Hour" (as defined below); and

[\*\*\*] per day that Operator operates one or more NYC Spoke Flights, <u>but does not</u> operate any Northeast Shuttle Flight on such day.

Where:

"<u>NE AC RON</u>" means each Aircraft that remains overnight in LGA, JFK, EWR, BOS, or DCA; and

"<u>Northeast Shuttle Block Hour</u>" means each block hour incurred by Operator on each Northeast Shuttle Flight; and

"<u>NYC Spoke Block Hour</u>" means each block hour incurred by Operator on each NYC Spoke Flight.

------

**<u>EXHIBIT C</u>**

**<u>ERJ-170 ADDITIONAL AIRCRAFT</u>**

---

| | | | |
|:---|:---|:---|:---|
| **Aircraft N-Number** | **Serial Number** | **Delivery Date** | **Delivery Configuration** |
| **[\*\*\*]** | **[\*\*\*]** | **5/1/2011** | **[\*\*\*]** |
| **[\*\*\*]** | **[\*\*\*]** | **[\*\*\*]** | **[\*\*\*]** |
| **[\*\*\*]** | **[\*\*\*]** | **[\*\*\*]** | **[\*\*\*]** |
| **[\*\*\*]** | **[\*\*\*]** | **[\*\*\*]** | **[\*\*\*]** |
| **[\*\*\*]** | **[\*\*\*]** | **[\*\*\*]** | **[\*\*\*]** |
| **[\*\*\*]** | **[\*\*\*]** | **[\*\*\*]** | **[\*\*\*]** |
| **[\*\*\*]** | **[\*\*\*]** | **[\*\*\*]** | **[\*\*\*]** |
| **[\*\*\*]** | **[\*\*\*]** | **9/1/2011** | **[\*\*\*]** |

---

## Exhibit 10.26

**Exhibit 10.26.5** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

**AMENDMENT NUMBER FOUR TO** 

**DELTA CONNECTION** 

**<u>AGREEMENT</u>**

This Amendment Number Four (this "Amendment"), dated as of the April 26, 2011 ("Amendment Number Four Effective Date"), to the Delta Connection Agreement dated and effective January 13, 2005 (as amended from time to time, the "Agreement"), is among Delta Air Lines, Inc., 1030 Delta Boulevard, Atlanta, Georgia 30320 ("Delta"), Shuttle America Corp. (as assignee of Republic Airline, Inc.) ("Shuttle America" or "Operator"), 8909 Purdue Road, Indianapolis, Indiana 46268 and Republic Airways Holdings, Inc. ("Republic"), 8909 Purdue Road, Indianapolis, Indiana 46268.

WHEREAS, Delta, Shuttle America and Republic are parties to the Agreement; and

WHEREAS, the parties desire to add additional aircraft within the scope of the Agreement and amend certain provisions of the Agreement and the Third Amendment (as defined below), each pursuant to the terms of the Agreement; and

NOW, THEREFORE, for and in consideration of the mutual undertakings set forth herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Delta, Operator and Republic, intending to be legally bound, hereby agree as follows:

1.  **<u>Defined Terms</u>** . All terms capitalized used, but not defined, herein shall have the meaning
ascribed to such terms in the Agreement.

2.  **<u>Revised 2011 Base Rate Costs</u>** 

Notwithstanding the terms and conditions set forth in Section 3(G) of the Agreement nor Section 2.A.(i) of that certain Amendment Number Three to the Delta Connection Agreement dated as of January 31, 2011, by and among Delta, Operator and Republic (the "Third Amendment"), the parties agree that, subject to the potential adjustments of the Base Rates Costs with respect to Airframe Maintenance, Engine Consumables and Depreciation (parts and engines) as contemplated by Section 2.B. of the Third Amendment, (i) effective as of September 1, 2011, the Base Rate Costs with respect to the Aircraft, including the "ERJ-170 Subsequent Additional Aircraft" (as defined below), shall be as set forth in <u>Exhibit A</u> attached to this Amendment and incorporated herein, and <u>Exhibit A</u> hereto shall replace in its entirety <u>Exhibit A</u> attached to the Third Amendment and (ii) with respect to establishing the Base Rate Costs for calendar years 2012, 2013, 2014, 2015, 2017 and 2018 (as contemplated by Sections 2(A)(ii) and 2(A)(iv) of the Third Amendment), the Base Rate Costs in effect for the applicable immediately preceding calendar year shall equal the Base Rate Cost in effect as of December 31st of such immediately preceding calendar year.

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3.  **<u>Addition of Six (6)</u> <u>ERJ-170 Aircraft</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Pursuant to Article 1(A) of the Agreement, effective as of the Amendment Number Four Effective Date, the six
(6) Embraer ERJ 170 aircraft, including one (1) spare, set forth on Exhibit B attached hereto and incorporated herein (the "ERJ-170 Subsequent Additional Aircraft") shall be included as
Aircraft under, except as otherwise set forth in this Amendment, the terms of the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Each ERJ-170 Subsequent Additional Aircraft shall be made available by
Operator to be placed into Delta Connection service no later than the respective dates set forth on Exhibit B (each, a "Subsequent Aircraft Delivery Date"). If Operator is unable to have available any ERJ-170 Subsequent Additional Aircraft by its respective Subsequent Aircraft Delivery Date, Operator shall provide written notice to Delta of such delay no later than sixty (60) days prior to each
respective Subsequent Aircraft Delivery Date. If Operator does not [\*\*\*], Operator shall pay Delta the sum of [\*\*\*] per day that each such ERJ-170 Subsequent Additional Aircraft is not available for Delta
Connection service beyond such aircraft's respective Subsequent Aircraft Delivery Date due to circumstances within the control of Operator, up to a maximum of [\*\*\*] per each ERJ-170 Subsequent Additional
Aircraft.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Operator and Republic, jointly and severally, represent and warrant to Delta that each of the ERJ-170 Subsequent Additional Aircraft has been maintained in accordance with Operator's FAA approved maintenance program and, excluding the "Interior Modification" (as defined in Section 3.G.
below), scheduled C-checks of each type and ordinary and routine maintenance requirements, each of the ERJ-170 Subsequent Additional Aircraft is fully operable, able to
operate under the terms of the Agreement, and is not subject to any unusual or extraordinary repair or maintenance requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Notwithstanding anything in the Agreement to the contrary, each ERJ-170 Subsequent Additional Aircraft shall be included as an Aircraft under the Agreement only for a period of six (6) years commencing on the respective Delivery Date of each ERJ-170 Subsequent Additional
Aircraft, and upon the conclusion of each such six-year period, the applicable ERJ-170 Subsequent Additional Aircraft shall be removed from Delta Connection service and
the scope of the Agreement as of such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. Each of the ERJ-170 Subsequent Additional Aircraft shall be repainted
in the Delta-approved Delta Connection livery prior to its respective Delivery Date. Operator shall be solely responsible for such repainting including, without limitation, all costs and expenses associated with such repainting (and shall not be
entitled to any reimbursement by Delta, under the Agreement or otherwise, of any such costs or expenses).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. Each of the ERJ-170 Subsequent Additional Aircraft shall be made
available for Delta Connection service as contemplated hereby initially with the designated seat configuration as set forth in Exhibit B (each, a "Delivery Configuration"). Operator shall be solely responsible for having each of the ERJ-170 Subsequent Additional Aircraft so configured and all costs and expenses associated therewith (and shall not be entitled to any reimbursement by Delta, under the Agreement or otherwise, of any such costs or
expenses). Notwithstanding the above, each of Operator, Republic and Delta shall each use their commercially reasonable efforts and work together in good faith to configure each of the ERJ-170 Subsequent
Additional Aircraft that has a designated Delivery Configuration of [\*\*\*] on Exhibit B instead with a dual-class configuration of either [\*\*\*] or [\*\*\*] (as determined by Delta in its sole discretion); provided, however, that Delta shall be
responsible for purchasing, or reimbursing Operator the costs of, the first class seats and associated first-class overhead bins to be installed on such ERJ-170 Subsequent Additional Aircraft in connection
with the transitioning to the dual-class configuration selected by Delta.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. If any ERJ-170 Subsequent Additional Aircraft are not in compliance
with Delta Connection standards currently in place on the ERJ 175AR aircraft that are Aircraft under the Agreement as of the Amendment Number Four Effective Date including, but not limited to, with respect to cabin carpets, seat belts, seat covers,
curtains, class dividers, seat track covers, bin strips (if applicable) and laminates (the "Standards"), each such aircraft shall undergo additional modifications to conform to such Standards ("Interior Modifications") at a time
to be determined by Delta in consultation with Operator. Operator shall be solely responsible for the performance of such Interior Modifications including, without limitation, all costs and expenses associated with such Interior Modifications (and
shall not be entitled to any reimbursement by Delta, under the Agreement or otherwise, of any such costs or expenses).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H. Operator shall be solely responsible for all start-up costs and
transition fees associated with including the ERJ-170 Subsequent Additional Aircraft as Aircraft under the Agreement including, without limitation all costs and fees related to induction, positioning,
maintenance bridging and "sunshine" maintenance of each ERJ-170 Subsequent Additional Aircraft, and Operator shall not be entitled to any reimbursement thereof by Delta under the Agreement or
otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. Delta, in its sole discretion, may elect to have modifications performed on the ERJ-170 Subsequent Additional Aircraft in addition to the Delivery Configurations and Interior Modifications, and if Delta so elects, Delta will be solely responsible for all costs associated with such
additional modifications. Operator and Republic shall provide any and all commercially reasonable assistance requested by Delta in connection with any such additional modifications.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;J. Notwithstanding anything in the Agreement to the contrary, the parties agree that the Aircraft Rent/Ownership
Cost with respect to each of the ERJ-170 Subsequent Additional Aircraft shall be [\*\*\*] per month (subject to potential Mark-Up in accordance with Article 3 of the
Agreement) commencing, with respect to each ERJ-170 Subsequent Additional Aircraft, on the respective date each such ERJ-170 Subsequent Additional Aircraft is available
to be placed into Delta Connection Service in accordance with the Agreement (as amended and modified by this Amendment).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;K. (i) The parties acknowledge and agree that one or more of the ERJ-170 Subsequent Additional Aircraft may require "C-checks" on their respective airframes prior to the end of their respective six-year terms under the Agreement. [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) In addition, at the end of each ERJ-170 Subsequent Additional
Aircraft's six-year term, Delta shall pay to Operator, in the month following the last flight under the Agreement by the applicable ERJ-170 Subsequent Additional
Aircraft, an amount equal to the product of (y) **[\*\*\*]** multiplied by (z) **[\*\*\*]** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;L. The parties acknowledge and agree that, pursuant to Section 3A.(ii)(1) of the Agreement, Delta is
responsible for reimbursing Operator for the usage of Engine Life Limited Parts ("LLPs") on the ERJ-170 Subsequent Additional Aircraft during the respective six-year terms under the Agreement of such Aircraft. In connection therewith, at the end of each ERJ-170 Subsequent Additional Aircraft's six-year term, Delta shall pay to Operator, in the month following the last flight under the Agreement by the applicable ERJ-170 Subsequent Additional Aircraft, an amount
equal to the product of (y) [\*\*\*] multiplied by (z) [\*\*\*] The parties acknowledge and agree that the effective [\*\*\*] in calendar year 2011 economics is [\*\*\*] per Aircraft cycle and [\*\*\*] Annually, but in any event no later than January 31st of each
year during the Term, Operator shall provide Delta copies, certified by an officer of Operator, of documentation, in form and substance reasonably satisfactory to Delta, that sets forth the current year's [\*\*\*] With respect to each ERJ-170 Subsequent Additional Aircraft, if during the six-year term under the Agreement of the applicable ERJ-170 Subsequent Additional
Aircraft, any engine operating on such ERJ-170 Subsequent Additional Aircraft requires replacement of its LLPs, it is understood and agreed that [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;M. Delta shall have the option, in its sole discretion, to add one (1) additional ERJ-170 aircraft (the "ERJ-170 Option Aircraft") as an Aircraft under, and subject to the terms and conditions of, the Agreement. If Delta exercises such option to
add the ERJ-170 Option Aircraft, Delta shall provide Operator no less than ninety (90) days written notice prior to the initial in-service date under the Agreement
of the ERJ-170 Option Aircraft (such initial in-service date to be specified in such notice). The ERJ-170 Option Aircraft will be
considered an Aircraft under the Agreement as of its actual initial in-service date within the Delta Connection program. If Delta exercises such option to add the ERJ-170 Option Aircraft, the terms, conditions, representations, warranties and covenants set forth in Sections 3 (B), (C), (D), (E), (F), (G), (H), (I), (J), (K) and (L) of this Amendment shall apply to
the ERJ-170 Option Aircraft; provided, however, the ERJ-170 Option Aircraft shall be included as an Aircraft under the Agreement only for the lesser of (y) a period
of six (6) years commencing on the actual initial in-service date within the Delta Connection program of the ERJ-170 Option Aircraft and (z) the remaining Term
of the Agreement as of the actual initial in-service date within the Delta Connection program of the ERJ-170 Option Aircraft. The option right in favor of Delta set
forth in this Section 3(M) shall expire on December 31, 2011.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N. Delta shall pay Operator an amount of [\*\*\*] per aircraft as full payment for the installation, operation and
maintenance of a fully functional and operational WiFi system ("ERJ-170 WiFi System") on each of the six (6) ERJ-170 Subsequent Aircraft and the eight (8) "ERJ-170 Additional Aircraft" (as defined in the Third Amendment); provided that such payments shall be contingent upon Operator's satisfaction of each of the following conditions: (i) each ERJ-170 WiFi System shall be installed on each of the six (6) ERJ-170 Subsequent Aircraft and each of the eight (8) ERJ-170 Additional Aircraft no later than October 31, 2011, as applicable, and (ii) each ERJ-170 WiFi System shall meet or exceed the standards and
specifications for all WiFi system equipment, installation and functionality that Delta has established for regional jet aircraft within the Delta Connection Program. Provided that the conditions for payment are fully satisfied, such payment per
aircraft shall occur upon the later of (y) such aircraft's respective Subsequent Aircraft Delivery Date or "Delivery Date" (as defined in the Third Amendment), as applicable, or (z) confirmation by Delta that the ERJ-170 WiFi System installed on such aircraft is fully functional, and Operator shall not be entitled to any further reimbursement from Delta for any other costs or expenses associated with any such ERJ-170 WiFi System.

4.  **<u>ERJ-170 Additional Aircraft Pursuant to the Third Amendment.</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The ERJ-170 Additional Aircraft with Aircraft N-Number "N868RW" shall be replaced with the ERJ-170 aircraft with Aircraft N-Number "N860RW".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The "Delivery Date" and "Delivery Configuration" of each respective "ERJ-170 Additional Aircraft" as contemplated in the Third Amendment shall be amended as set forth in Exhibit C attached to this Amendment and incorporated herein, and such Exhibit C hereto shall replace
in its entirety the Exhibit C attached to the Third Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Section 3.F. of the Third Amendment is hereby amended by deleting the following text from the last
sentence of such section:

; provided, however, that Delta shall be responsible for the costs of the **[\*\*\*]** first class seats to be installed on the last two (2) ERJ-170 Additional Aircraft made available for Delta Connection service as contemplated hereby.

5.  **<u>Safety and Service Standards</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Safety Standards. Operator shall actively participate in the Delta Connection Safety Alliance and at all times
during the Term (i) comply with Delta's safety standards for the provisioning by Operator to Delta of flights within the Delta Connection Program using the Aircraft ("Regional Airline Services") including, without limitation, as
set forth in the Delta Connection Carriers Non-Regulatory Safety Program Standards document and the Delta Connection Ground Operations Manual, and (ii) comply with all IATA Operational Safety Audit
requirements, participate in a Cockpit Aviation Safety Action Program and a Flight Operations Quality Assurance Program (collectively, as amended from time to time, the "Delta Connection Safety Standards"). Operator's failure to
comply with the Delta Connection Safety Standards shall be considered a material breach of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Quality of Service. Delta policies, procedures, performance standards (including but not limited to
Delta's Sky Priority initiative) and means of measurement thereof concerning the provision of air passenger and air cargo services shall be applicable to all services provided by Operator under the Agreement. Operator shall achieve, with
respect to the provision of the Regional Airline Services, at least the same quality of airline service as that provided by Delta, subject to limitations imposed by the type of Aircraft operated by Operator under the Agreement, the route network of
the Regional Airline Services and the performance by Delta of its obligations under the Agreement. At all times during the Term, Operator shall maintain adequate staffing levels with respect to the Regional Airline Services to ensure at least the
same level of customer service and operational efficiency that Delta achieves. Operator shall cooperate with Delta in any way necessary or desirable to provide such comparable level of customer service in connection with the operation of Regional
Airline Services, and Operator shall maintain new hire and recurrent training programs for all job descriptions, and such programs, as they pertain to customer service, shall be reasonably acceptable to Delta.

6.  **<u>Modifications to Incentive Compensation Performance Thresholds</u>** . Effective as of January 1,
2011, the Agreement shall be amended and modified as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Schedules Publication. Section 1(C) of the Agreement is hereby amended by deleting in its entirety the
following sentence from the third paragraph thereof:

In the event Delta changes the hub location served by the Aircraft, if any, Delta shall provide Republic with **[\*\*\*]** days prior written notice of such change and Delta and Republic shall meet as soon as practicably possible to review and revise the Direct Costs and corresponding Base Compensation as a result of such change in the manner provided in Section 4(E) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Base Compensation. Section 3(A) of the Agreement is hereby amended by deleting in its entirety the
following sentence from the first paragraph thereof:

In addition, in any month in which Republic achieves a completion rate for the Delta Connection Flights of at least **[\*\*\*]** (or at least **[\*\*\*]** until such time as Republic has taken delivery of 7 of the aircraft plus one spare), Delta shall pay Republic a mark-up of **[\*\*\*]** of such Direct Costs incurred during such month (the "Mark-Up"), subject to certain limitations set forth below.

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and replacing it with the following:

In addition, in any calendar month in which Operator achieves:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) an actual "Completion Factor" (as defined and determined as set forth on Exhibits F and G attached hereto and made a part hereof) of greater than or equal to the "Minimum" Completion Factor threshold for the applicable month as set forth in the "Completion Factor Minimum and Incentive Thresholds" table set forth on Exhibit G (the "Completion Factor Minimum Threshold"), Delta shall pay Operator a mark-up of [\*\*\*] of such Direct Costs incurred by Operator during such month (the "Completion Factor Mark-Up);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) an actual "On-Time Departure Rate" (as defined and determined as set forth on Exhibits F and G) of greater than or equal to the "Minimum" On-Time Departure Rate threshold for the applicable month as set forth in the "On-Time Departure Rate Minimum and Incentive Thresholds" table set forth on Exhibit G ("Departure Reliability Minimum Threshold"), Delta shall pay Operator a mark-up of [\*\*\*] of such Direct Costs incurred by Operator during such month (the "Departure Reliability Mark-Up"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) an actual "On-Time Arrival Rate" (as defined and determined as set forth on Exhibits F and G) of greater than or equal to the "Minimum" On-Time Arrival Rate threshold for the applicable month set forth in the "On-Time Arrival Rate Minimum and Incentive Thresholds" table set forth on Exhibit G ("Arrival Reliability Minimum Threshold"), Delta shall pay Operator a mark-up of [\*\*\*] of such Direct Costs incurred by Operator during such month (the "Arrival Reliability Mark-Up").

During any such month, Operator may achieve neither or one or more of each of the Completion Factor Mark-Up, the Departure Reliability Mark-Up, and the Arrival Reliability Mark-Up (collectively, the "Mark-Up"). Therefore, the Mark-Up for each month (if any) shall consist of the sum of such month's Completion Factor Mark-Up, Departure Reliability Mark-Up, and the Arrival Reliability Mark-Up, up to a maximum of **[\*\*\*]** of the Direct Costs incurred by Operator during such month.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Section 3(D) of the Agreement is hereby deleted in its entirety and replaced with the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. <u>Incentive Compensation.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Monthly Incentive Compensation.</u> In addition to the potential Mark-Up, Operator shall have the opportunity to earn additional compensation (the "Monthly Incentive Compensation") based on its actual Completion Factor, On-Time Departure Rate, and On-Time Arrival Rate (each as determined as set forth on Exhibits F and G) for each calendar month, in connection with the operation of the
Aircraft. For each month during the Term that Operator achieves:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) an actual Completion Factor of greater than or equal to the "Incentive" Completion Factor threshold
for the applicable month set forth in "Completion Factor Minimum and Incentive Thresholds" table set forth on Exhibit G, Delta shall pay Operator [\*\*\*] of the Direct Costs incurred by Operator during such month;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) an actual On-Time Departure Rate of greater than or equal to the
"Incentive" threshold for the applicable month set forth in the "On-Time Departure Rate Minimum and Incentive Thresholds" table set forth on Exhibit G, Delta shall pay Operator [\*\*\*] of the
Direct Costs incurred by Operator during such month; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) an actual On-Time Arrival Rate of greater than or equal to the
"Incentive" threshold for the applicable month set forth in the "On-Time Arrival Rate Minimum and Incentive Thresholds" table set forth on Exhibit G, Delta shall pay Operator [\*\*\*] of the
Direct Costs incurred by Operator during such month.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Quarterly Incentive Compensation.</u> In addition to the potential Mark-Up and the potential Monthly Incentive Compensation, Operator shall have the opportunity to earn additional compensation (the "Quarterly Incentive Compensation") based on Operator's actual
Industry Satisfaction Monitor (ISM) score during each calendar quarter during the Term (each, an "ISM Score"). Delta will determine Operator's quarterly ISM Score by calculating the simple average of the Delta Customer Satisfaction
Survey results for the Delta Connection Flights scheduled to be operated by Operator during the applicable three-month period (including first class and coach class combined statistics) in each of the following categories:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On-Board Timely & Accurate Information

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Flight Attendant Helpful & Courteous

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Flight Attendant Availability

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Flight Attendant Professional Appearance

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Clean Lavatory

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Clean Cabin

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Condition of Aircraft Interior & Cabin Appearance

For each three-month period (measured from each January 1 through March 31, April 1 through June 30, July 1 through September 30, and October 1 through December 31) during the Term that Operator achieves an ISM Score of **[\*\*\*]** or higher, Delta shall pay Operator **[\*\*\*]** of the Direct Costs incurred by Operator during the applicable three-month period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Semi-Annual Incentive Compensation.</u> In addition to the potential Mark-Up, the potential Monthly Incentive Compensation, and the potential Quarterly Incentive Compensation, Operator shall have the opportunity to earn additional compensation (the "Semi-Annual Incentive
Compensation") based on its actual Completion Factor, On-Time Departure Rate, On-Time Arrival Rate (each as determined as set forth on Exhibits F and G) and ISM
Score (as determined in Section 3(D)(2) above) for each six-month period (measured from each January 1 through June 30 and July 1 through December 31) during the Term, in connection with
the operation of the Aircraft. For each such six-month period that Operator achieves:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) an actual Completion Factor of greater than or equal to the "Incentive" Completion Factor threshold
for the applicable six-month period set forth in "Completion Factor Minimum and Incentive Thresholds" table set forth on Exhibit G, Delta shall pay Operator [\*\*\*] of the Direct Costs incurred by
Operator during such six-month period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) an actual On-Time Departure Rate of greater than or equal to the
"Incentive" threshold for the applicable six-month period set forth in the "On-Time Departure Rate Minimum and Incentive Thresholds" table set forth
on Exhibit G, Delta shall pay Operator [\*\*\*] of the Direct Costs incurred by Operator during such six-month period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) an actual On-Time Arrival Rate of greater than or equal to the
"Incentive" threshold for the applicable six-month period set forth in the "On-Time Arrival Rate Minimum and Incentive Thresholds" table set forth on
Exhibit G, Delta shall pay Operator [\*\*\*] of the Direct Costs incurred by Operator during such six-month period; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) an actual ISM Score at least [\*\*\*] or higher for the applicable six-month period, Delta shall pay Operator [\*\*\*] of the Direct Costs incurred by Operator during such six-month period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Monthly Reconciliations. Section 3(E) of the Agreement shall be amended by deleting the third paragraph
thereof in its entirety and replacing such paragraph with the following:

Not later than twenty-five (25) days following the end of each month, Delta and Operator will reconcile the actual costs incurred by, and operational performance of, Operator for the Base Compensation (subject to the Minimum Utilization Requirements), with the estimated payments made pursuant to the previous paragraph. In connection with each month's reconciliation, Operator shall prepare a reconciliation of its actual Completion Factor, On-Time Departure Rate and On-Time Arrival Rate performance during such month to the applicable "Minimum" and "Incentive" thresholds for each of the Completion Factor, On-Time Departure Rate and On-Time Arrival Rate, respectively, applicable for such month and if such month is June or December, such reconciliation shall include Operator's actual Completion Factor, On-Time Departure Rate and On-Time Arrival Rate performance during the applicable six-month period to the applicable Incentive thresholds for each of the Completion Factor, On-Time Departure Rate and On-Time Arrival Rate, respectively, applicable for such six-month period. Operator shall deliver such reconciliations to Delta no later than ten (10) days after the end of each month. In connection with the reconciliations for the months of March, June, September and December, Delta shall provide Operator Operator's actual

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ISM Score for the applicable three-month and six-month periods promptly after Delta's receipt of each such score. Delta and Operator will each have the right to audit the reconciliations prepared by the other and shall promptly report any discrepancies to the other. Within two (2) business days of completing such monthly reconciliation, Delta or Operator, as the case may be, shall wire transfer to an account designated by the other party, monies equal to the reconciled amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. <u>Operation Performance Goals</u>. Notwithstanding the terms of Sections 10(A)(i), (ii) and (iii) of the
Agreement, the parties each acknowledge and agree that as of January 1, 2011, Delta's goal for participants in the Delta Connection program are as follows with respect to the following operational performance measurements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) On-Time Arrival (A14)—**[\*\*\*]**%;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Completion Factor (unadjusted)—**[\*\*\*]**%; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) On-Time Departure (D0)—**[\*\*\*]**%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. <u>Term and Termination</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Article 11(E)(iv) of the Agreement is hereby amended by deleting the text thereof in its entirety and replacing
such text with the following:

in the event that Operator fails to achieve **[\*\*\*]** the following during each of any **[\*\*\*]** period: (x) the applicable month's Completion Factor Minimum Threshold, (y) the applicable month's On-Time Departure Rate Minimum Threshold and (z) the applicable month's On-Time Arrival Rate Minimum Threshold (each as set forth in tables set forth on Exhibit G);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Article 11(H) of the Agreement is hereby amended by deleting the text thereof in its entirety and replacing
such text with the following:

In the event that Delta terminates this Agreement, in whole or in part, pursuant to Section 11(F), during the period commencing on the date Operator receives Delta's notice of termination and ending on the effective termination date of the portion of the Agreement being terminated by Delta, the Mark-Up (if any) of the Direct Costs attributable to the operation of the to-be-terminated Aircraft shall be increased by **[\*\*\*]**; provided, however, during such same period, such operations shall not be eligible for any Monthly Incentive Compensation, Quarterly Incentive Compensation or Semi-Annual Incentive Compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. <u>Additional Exhibits</u>. Exhibits F, G, H, and I attached to this Amendment shall be added as Exhibits F, G,
H, and I, respectively, to the Agreement and be incorporated therein and made a part thereof.

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7.  **<u>Miscellaneous</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. This Amendment, together with the exhibits attached hereto, constitute the entire understanding of the parties
with respect to the subject matter hereof, and any other prior or contemporaneous agreements, whether written or oral, are expressly superseded hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Amendment may be executed in any number of counterparts, each of which shall be deemed an original and all
of which, taken together, shall constitute one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Except as specifically stated herein, all other terms and conditions of the Agreement shall remain in full
force and effect. In the event of any conflict between the terms of this Amendment and the Agreement, the terms of this Amendment shall prevail.

*{Signatures appear on following page}* 

------

IN WITNESS WHEREOF, the parties have executed this Amendment by their undersigned duly authorized representatives:

---

| | |
|:---|:---|
| Republic Airways Holdings, Inc. | Delta Air Lines, Inc. |
| By: <u>/s/ Timothy P. Dooley</u> | By: <u>/s/ Don Bornhorst</u> |
| Name: Timothy P. Dooley | Name: /s/ Don Bornhorst |
| Title: SVP, CFO | Title: SVP—Delta Connection |
| Shuttle America Airlines, Inc. |  |
| By: <u>/s/ Timothy P. Dooley</u> |  |
| Name: Timothy P. Dooley |  |
| Title: SVP, CFO |  |

---

------

**<u>EXHIBIT A</u>**

**<u>REVISED 2011 BASE RATE COSTS</u>**

------

**<u>EXHIBIT B</u>**

**<u>ERJ-170 SUBSEQUENT ADDITIONAL AIRCRAFT</u>**

---

| | | | |
|:---|:---|:---|:---|
| **Aircraft N-Number** | **Serial Number** | **Delivery Date** | **Delivery Configuration** |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |

---

------

**<u>EXHIBIT C</u>**

**<u>AMENDED DELIVERY DATE AND DELIVERY CONFIGURATION OF EACH RESPECTIVE ERJ-170 ADDITIONAL AIRCRAFT FROM THE THIRD AMENDMENT</u>**

---

| | | | |
|:---|:---|:---|:---|
| **Aircraft N-Number** | **Serial Number** | **Delivery Date** | **Delivery Configuration** |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |

---

------

**<u>EXHIBIT F</u>**

1. [\*\*\*]: For purposes of this Agreement, the determination of Completion Factor of the scheduled Delta Connection Flights of the applicable measurement period shall be calculated [\*\*\*]

a. [\*\*\*]

b. [\*\*\*]

c. [\*\*\*]

d. [\*\*\*]

[\*\*\*]

2. [\*\*\*] For the purposes of this Agreement, the On-Time Departure Rate shall be defined as the percentage of all Delta Connection Flights scheduled during the applicable measurement period that are actually flown and depart from their respective scheduled origins within 1 minute of their respective scheduled departure times.

3. [\*\*\*] For the purposes of this Agreement, the On-Time Arrival Rate shall be defined as the percentage of all Delta Connection Flights scheduled during the applicable measurement period that are actually flown and arrive at their respective scheduled destinations within 14 minutes of their respective scheduled arrival times.

------

**<u>EXHIBIT G</u>**

**[\*\*\*]** 

The Completion Factor threshold is calculated **[\*\*\*]** during the applicable month or semi-annual period.

<u>Formula:</u> 

**[\*\*\*]** 

**[\*\*\*]** 

**[\*\*\*]** 

**[\*\*\*]** 

**[\*\*\*]** 

**[\*\*\*]** 

[\*\*\*]

[\*\*\*]

**[\*\*\*]** 

**[\*\*\*]** 

**[\*\*\*]** 

**[\*\*\*]** 

**[\*\*\*]** 

**[\*\*\*]** 

**[\*\*\*]** 

------

On-Time Departure Rate thresholds are calculated **[\*\*\*]** during the applicable month or semi-annual period.

**<u>On-Time Departure Rate Minimum and Incentive Thresholds</u>**

<u>Formula:</u> 

**[\*\*\*]** 

**[\*\*\*]** 

**[\*\*\*]** 

**[\*\*\*]** 

**[\*\*\*]** 

**[\*\*\*]** 

**[\*\*\*]** 

**[\*\*\*]** 

[\*\*\*]

[\*\*\*]

**[\*\*\*]** 

**[\*\*\*]** 

**[\*\*\*]** 

**[\*\*\*]** 

**[\*\*\*]** 

**[\*\*\*]** 

**[\*\*\*]** 

**[\*\*\*]** 

On-Time Arrival Rate thresholds are calculated **[\*\*\*]** during the applicable month or semi-annual period.

------

**[\*\*\*]** 

The same formula used for determining the On-Time Departure Rate thresholds shall be used to determine the On-Time Arrival Rate thresholds.

For purposes of this Agreement:

**[\*\*\*]** 

**[\*\*\*]** 

------

**<u>EXHIBIT H</u>**

**[\*\*\*]** 

19A - Substitution - Air Operations

19B - Substitution - Information Services

19C - Substitution - Flight Operations

19D - Substitution - In-flight Services

19E - Substitution - Maintenance

19F - Substitution - Airport Customer Service

19G - Inter Carrier Substitution - Delta Requested

19H - Delta Requested Cancellation

19M - Substitution - Aircraft Damage

------

**<u>EXHIBIT I</u>**

**[\*\*\*]** 

**[\*\*\*]** 

**[\*\*\*]** 

**[\*\*\*]** 

**[\*\*\*]** 

**[\*\*\*]** 

**[\*\*\*]** 

**[\*\*\*]** 

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **[\*\*\*]** | **[\*\*\*]** | **[\*\*\*]** | **[\*\*\*]** | **[\*\*\*]** | **[\*\*\*]** | **[\*\*\*]** | **[\*\*\*]** | **[\*\*\*]** | **[\*\*\*]** |
| [\*\*\*] | [\*\*\*] | [\*\*\*][\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  |  |  |  |  |  |  |  | [\*\*\*] | [\*\*\*] |

---

**[\*\*\*]** 

**[\*\*\*]** 

**[\*\*\*]** 

**[\*\*\*]** 

**[\*\*\*]** 

**[\*\*\*]** 

**[\*\*\*]**

## Exhibit 10.26

**Exhibit 10.26.6** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

**AMENDMENT NUMBER FIVE TO** 

**DELTA CONNECTION** 

**<u>AGREEMENT</u>**

This Amendment Number Five (this "Amendment"), dated as of the 1<sup>st</sup> day of May, 2012 ("Amendment Number Five Effective Date"), to the Delta Connection Agreement dated and effective January 13, 2005 (as amended from time to time, the "Agreement"), is among Delta Air Lines, Inc., 1030 Delta Boulevard, Atlanta, Georgia 30320 ("Delta"), Shuttle America Corp. (as assignee of Republic Airline, Inc.) ("Shuttle America" or "Operator"), 8909 Purdue Road, Indianapolis, Indiana 46268 and Republic Airways Holdings Inc. ("Republic"), 8909 Purdue Road, Indianapolis, Indiana 46268.

WHEREAS, Delta, Shuttle America and Republic are parties to the Agreement; and

WHEREAS, the parties desire to amend certain provisions of the Agreement; and

WHEREAS, contemporaneously with the execution and delivery of this Amendment, (a) Delta and Republic Airline, Inc., a wholly owned subsidiary of Republic ("Republic Airline") have entered into that certain [\*\*\*], and (b) Delta and Republic have entered into a [\*\*\*]; and

NOW, THEREFORE, for and in consideration of the mutual undertakings set forth herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Delta, Operator and Republic, intending to be legally bound, hereby agree as follows:

1.  **<u>Defined Terms</u>** . All terms capitalized used, but not defined, herein shall have the meaning
ascribed to such terms in the Agreement.

2.  **<u>Amendment to Article 19</u>** . Section 19(B) of the Agreement is hereby deleted in its entirety
and replaced with the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. [\*\*\*]

[\*\*\*]

3.  **<u>Miscellaneous</u>** .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. This Amendment, [\*\*\*] constitutes the entire understanding of the parties with respect to the subject matter
hereof, and any other prior or contemporaneous agreements, whether written or oral, are expressly superseded hereby.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Amendment may be executed in any number of counterparts, each of which shall be deemed an original and all
of which, taken together, shall constitute one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Except as specifically stated herein, all other terms and conditions of the Agreement shall remain in full
force and effect In the event of any conflict between the terms of this Amendment and the Agreement, the terms of this Amendment shall prevail.

*(Signatures appear on fallowing page)* 

------

IN WITNESS WHEREOF, the parties have executed this Amendment by their undersigned duly authorized representatives:

---

| | |
|:---|:---|
| Republic Airways Holdings, Inc. | Delta Air Lines, Inc. |
| By: <u>/s/ Ethan J. Blank</u> | By: <u>/s/ Don Bornhorst</u> |
| Name: Ethan J. Blank | Name: Don Bornhorst |
| Title: Vice President, General Counsel | Title: SVP Delta Connection |

---

---

| | |
|:---|:---|
| Shuttle America Corporation | Shuttle America Corporation |
| By: | /s/ Ethan J. Blank |
| Name: | Ethan J. Blank |
| Title: | Vice President, General Counsel |

---

## Exhibit 10.26

**Exhibit 10.26.7** 

**<u>CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I)</u> <u>NOT MATERIAL AND (II)</u> <u>IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.</u>** 

**AMENDMENT NUMBER SIX TO** 

**DELTA CONNECTION** 

**AGREEMENT** 

This Amendment Number Six (this "Amendment"), effective as of this December 18, 2014 ("Amendment Number Six Effective Date"), to the Delta Connection Agreement dated and effective January 13, 2005 (as amended from time to time, the "Agreement"), is among Delta Air Lines, Inc., 1030 Delta Boulevard, Atlanta, Georgia 30320 ("Delta"), Shuttle America Corp. (as assignee of Republic Airline, Inc.) ("Shuttle America" or "Operator"), 8909 Purdue Road, Indianapolis, Indiana 46268 and Republic Airways Holdings, Inc. ("Republic"), 8909 Purdue Road, Indianapolis, Indiana 46268.

WHEREAS, Delta, Shuttle America and Republic are parties to the Agreement; and

WHEREAS, the parties desire to [\*\*\*]; and

NOW, THEREFORE, for and in consideration of the mutual undertakings set forth herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Delta, Operator and Republic, intending to be legally bound, hereby agree as follows:

**1.**  **<u>Defined Terms</u>. All terms capitalized used, but not defined, herein shall have the meaning ascribed to such terms in the Agreement.** 

**2.** **[\*\*\*] <u>Adjustment</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. As contemplated by [\*\*\*], [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Delta and Operator acknowledge and agree that [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Delta and Operator further acknowledge and agree that, [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. [\*\*\*]

**3.**  **<u>Continuing Effectiveness of</u> [\*\*\*] <u> </u> <u>Provisions</u>.** 

Operator and Delta acknowledge and agree that the [\*\*\*] provisions set forth in [\*\*\*] shall continue in full force and effect notwithstanding [\*\*\*]. [\*\*\*]

------

**4.**  **<u>Miscellaneous</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. This Amendment constitutes the entire understanding of the parties with respect to the subject matter hereof,
and any other prior or contemporaneous agreements, whether written or oral, are expressly superseded hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Amendment may be executed in any number of counterparts, each of which shall be deemed an original and all
of which, taken together, shall constitute one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Except as specifically stated herein, all other terms and conditions of the Agreement shall remain in full
force and effect. In the event of any conflict between the terms of this Amendment and the Agreement, the terms of this Amendment shall prevail.

*{Signatures appear on following page}* 

------

IN WITNESS WHEREOF, the parties have executed this Amendment by their undersigned duly authorized representatives:

---

| | | | |
|:---|:---|:---|:---|
| Republic Airways Holdings, Inc. | Republic Airways Holdings, Inc. | Delta Air Lines. Inc. | Delta Air Lines. Inc. |
| By: | /s/ Brian Bedford | By: | /s/ Don Bornhorst |
| Name: Brian K. Bedford | Name: Brian K. Bedford | Name: Don Bornhorst | Name: Don Bornhorst |
| Title: Chairman, President & CEO | Title: Chairman, President & CEO | Title: SVP Delta Connection | Title: SVP Delta Connection |

---

Shuttle America Airlines, Inc.<sub>,</sub>

---

| | |
|:---|:---|
|  By: | /s/ Brian Bedford |
|  Name: | Brian K. Bedford |
|  Title: | Chairman, President & CEO |

---

## Exhibit 10.26

**Exhibit 10.26.8** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

**AMENDMENT NUMBER SEVEN TO** 

**DELTA CONNECTION** 

**AGREEMENT** 

This Amendment Number Seven (this "Amendment"), dated as of December 11, 2014 ("Amendment Number Seven Effective Date"), to the Delta Connection Agreement dated and effective January 13, 2005 (as amended from time to time, the "Agreement"), is among Delta Air Lines, Inc., 1030 Delta Boulevard, Atlanta, Georgia 30320 ("Delta"), Shuttle America Corporation (as assignee of Republic Airline Inc.) ("Shuttle America" or "Operator"), 8909 Purdue Road, Indianapolis, Indiana 46268 and Republic Airways Holdings Inc. ("Republic"), 8909 Purdue Road, Indianapolis, Indiana 46268.

WHEREAS, Delta, Shuttle America and Republic are parties to the Agreement; and

WHEREAS, the parties desire to add additional aircraft within the scope of the Agreement and amend certain provisions of the Agreement, each pursuant to the terms of this Amendment; and

NOW, THEREFORE, for and in consideration of the mutual undertakings set forth herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Delta, Operator and Republic, intending to be legally bound, hereby agree as follows:

1. **<u>Defined Terms</u>**. All terms capitalized used, but not defined, herein shall have the meaning ascribed to such terms in the Agreement.

2. **<u>Option to Purchase Existing Sixteen (16)</u> <u>ERJ 175 Aircraft.</u>**

Delta shall have the option, which it may exercise in its sole discretion by providing Operator no less than [\*\*\*] prior written notice and subject to reasonable and customary due diligence by or on behalf of Delta, to purchase from Operator any, or all, of the sixteen (16) ERJ 175 Aircraft set forth in **<u>Exhibit A</u>** attached hereto and incorporated herein together with two (2) of the thirty-two (32) engines set forth on **<u>Exhibit A</u>** attached hereto for each such ERJ 175 Aircraft (collectively, the "ERJ 175 Baseline Aircraft") upon the expiration of the respective term of the Agreement with respect to each such ERJ 175 Baseline Aircraft for an amount equal to the net book value (in accordance with GAAP) of each such ERJ 175 Baseline Aircraft at the time of such expiration (the "ERJ 175 Baseline Aircraft Purchase Option"). At any time after Delta exercises any such ERJ 175 Baseline Aircraft Purchase Option for any ERJ 175 Baseline Aircraft, Delta shall be solely responsible for the cost of any life limited parts ("LLP") replacement with respect to such ERJ 175 Baseline Aircraft.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Delta shall have the option, which it may exercise in its sole discretion by providing Operator no less than
[\*\*\*] prior written notice and subject to reasonable and customary due diligence by or on behalf of Delta, to purchase from Operator any, or all, of such ERJ 175 Baseline Aircraft at any time during either of the respective ERJ 175 Baseline Aircraft
Extension Term (as defined below) or the ERJ 175 Baseline Aircraft Subsequent Extension Term (as defined below) for an amount equal to the net book value (in accordance with GAAP) of each such ERJ 175 Baseline Aircraft at the time of purchase (the
"ERJ 175 Extension Purchase Option"). If Delta exercises any such ERJ 175 Extension Purchase Option, Delta shall lease back to Operator each such purchased ERJ 175 Baseline Aircraft pursuant to a mutually agreed upon aircraft lease
agreement (such agreement not to be unreasonably withheld or delayed), and Operator shall operate each such ERJ 175 Baseline Aircraft under the scope of the Agreement for the remainder of the ERJ 175 Baseline Aircraft Extension Term and/or ERJ 175
Baseline Aircraft Subsequent Extension Term, as applicable. With respect to each such aircraft lease agreement, the parties agree that unless Operator is in breach or default of such lease, Operator shall pay Delta a lease rate equal to [\*\*\*] during
the term of each such lease. At any time after Delta exercises any such ERJ 175 Extension Purchase Option for any ERJ 175 Baseline Aircraft, Delta shall be solely responsible for the cost of any LLP replacement with respect to such ERJ 175 Baseline
Aircraft.

3. **<u>Extension of Term of the ERJ 175 Baseline Aircraft.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The term of the ERJ 175 Baseline Aircraft shall be extended until the respective fifteenth (15th) anniversary
dates of the initial in-service dates of such ERJ 175 Baseline Aircraft to Delta Connection service as set forth in Exhibit A attached hereto (the "ERJ 175 Baseline Aircraft Extension Term").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Additionally, with respect to any or all of the ERJ 175 Baseline Aircraft, Delta shall have the option, in its
sole discretion, to further extend the term of such ERJ 175 Baseline Aircraft for a period of five (5) years beyond the applicable ERJ 175 Baseline Aircraft Extension Term (the "ERJ 175 Baseline Aircraft Subsequent Extension Term").
Delta may exercise this option by providing Operator no less than [\*\*\*] prior written notice of such election. If Delta exercises its option of the ERJ 175 Baseline Aircraft Subsequent Extension Term for any ERJ 175 Baseline Aircraft, Delta and
Operator acknowledge and agree that the monthly Aircraft Rent/Ownership Cost during the ERJ 175 Baseline Aircraft Subsequent Extension Term with respect to each such ERJ 175 Baseline Aircraft shall be equal to [\*\*\*] (subject to potential Mark-Up in accordance with Article 3 of the Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The following Sections of the Agreement shall be of no force and effect with respect to the ERJ 175 Baseline
Aircraft effective upon the first day of the ERJ 175 Baseline Aircraft Extension Term: Sections 11.G., 11.I. and 11.M.

------

4. **<u>Extension of ERJ 170 Additional Aircraft and ERJ 170 Subsequent Additional Aircraft.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. (i) Notwithstanding Section 3(D) of Amendment Number Three to the Agreement dated January 31,
2011 ("Amendment Three"), the parties agree to extend the terms of the eight (8) ERJ-170 Additional Aircraft (as that term is defined in Amendment Three) and (ii), notwithstanding
Section 3(D) of Amendment Number Four to the Agreement dated April 26, 2011 ("Amendment Four"), the parties agree to extend the terms of the six (6) ERJ 170 Subsequent Additional Aircraft (as that term is defined in
Amendment Four and together with the ERJ-170 Additional Aircraft, the "ERJ 170 Baseline Aircraft") through the respective "Amended Expiration Dates" set forth in Exhibit B attached hereto
and incorporated herein to this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Section 3(K) of Amendment Three and Section 3(K) of Amendment Four are each deleted in their
entireties and of no further force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. (i) The parties acknowledge and agree that one or more of the ERJ-170 Baseline Aircraft may require "C-checks" on their respective airframes prior to the end of their respective terms under the Agreement. [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) In addition, at the end of each ERJ-170 Baseline Aircraft's respective term under the Agreement, Delta shall pay to Operator in the month following the last flight under the Agreement by the applicable ERJ-170 Baseline Aircraft an amount equal to the product of (y) [\*\*\*] multiplied by (z) [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Prior to each of the "Amended Expiration Dates" set forth in Exhibit B attached hereto, Delta shall
have the option, in its sole discretion, to extend the term of any, or all, of the ERJ 170 Baseline Aircraft for a period of five (5) years beyond each respective Amended Expiration Date (the "ERJ-170 Baseline Aircraft Extension Term") by providing Operator no less than [\*\*\*] prior written notice. If Delta exercises such option for one or more ERJ-170 Baseline Aircraft, then the monthly Aircraft Rent/Ownership Cost with respect to each such ERJ-170 Baseline Aircraft shall be [\*\*\*] (subject to potential Mark-Up in accordance with Article 3 of the Agreement). If Delta does not exercise such option with respect to an ERJ-170 Baseline Aircraft, such ERJ 170 Baseline Aircraft
shall be removed from Delta Connection service and the scope of the Agreement as of its Amended Expiration Date.

5. **<u>Addition of Nine (9)</u> <u>ERJ 170 Aircraft.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Pursuant to Article 1(A) of the Agreement, effective as of the respective "In-Service Date" (as defined below), the nine (9) ERJ 170 Aircraft set forth in Exhibit B attached hereto and incorporated herein (the "Placement Aircraft") shall be included as
Aircraft under the terms of the Agreement, except as otherwise set forth in this Amendment. The Base Rate Costs with respect to the Placement Aircraft shall be the same as the Base Rate Costs applied to the other ERJ-170 Baseline Aircraft.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Each Placement Aircraft shall be made available by Operator to be placed into Delta Connection service on the In-Service Date set forth opposite such Placement Aircraft in Exhibit B (each such date, an "In-Service Date"). If Operator is unable to have available for Delta
Connection service any Placement Aircraft on its respective In-Service Date, Operator shall pay Delta the sum of [\*\*\*] per day that each such Placement Aircraft is not available for Delta Connection service
beyond such aircraft's respective In-Service Date due to circumstances within the control of Operator, up to a maximum of [\*\*\*] per each Placement Aircraft.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Operator and Republic, jointly and severally, represent and warrant to Delta that each of the Placement
Aircraft will be maintained in accordance with Operator's FAA approved maintenance program and, excluding the Placement Aircraft Configuration (as defined in Section 5(F) below) conversion, Placement Aircraft Interior Modifications (as
defined in Section 5(G) below), scheduled C-checks of each type, and ordinary and routine maintenance requirements, each of the Placement Aircraft is fully operable, able to operate under the terms of the
Agreement, and is not subject to any unusual or extraordinary repair or maintenance requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Notwithstanding anything in the Agreement to the contrary, each Placement Aircraft shall be included as an
Aircraft under the Agreement for a period of six (6) years commencing on the respective In-Service Date of each such Placement Aircraft (the "Placement Aircraft Term").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. Each of the Placement Aircraft shall be repainted in the Delta-approved Delta Connection livery prior to its
respective In-Service Date. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. Prior to its respective In-Service Date, each Placement Aircraft shall
be configured in a dual-class configuration consisting of [\*\*\*] first class seats, [\*\*\*] economy comfort seats, and [\*\*\*] coach class seats, unless otherwise designated by Delta, in its sole discretion ("Placement Aircraft Configuration").
Delta shall select, in its sole discretion, all suppliers to be used to configure each Placement Aircraft in the Placement Aircraft Configuration. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. Prior to its respective In-Service Date, each of the Placement Aircraft
shall be in compliance with the then-current Delta Connection standards including, but not limited to, with respect to WiFi, cabin carpets, seat belts, seat covers, curtains, class dividers, seat track covers, bin strips (if applicable) and
laminates (the "Standards"). If any of the Placement Aircraft are not in compliance with the Standards, each such noncompliant Placement Aircraft shall undergo additional modifications to conform to such Standards (the "Placement
Aircraft Interior Modifications"). Delta shall select, in its sole discretion, all suppliers to be used to perform the Placement Aircraft Interior Modifications. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H. [\*\*\*] Operator shall be solely responsible for any and all start-up costs and transition fees associated with including the Placement Aircraft as Aircraft under the Agreement including, without limitation, all costs and fees related to induction, positioning, maintenance bridging and "sunshine" maintenance
of each Placement Aircraft, and Operator shall not be entitled to any reimbursement thereof by Delta under the Agreement or otherwise.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. Notwithstanding anything in the Agreement to the contrary, the parties agree that the monthly Aircraft
Rent/Ownership Cost with respect to each of the Placement Aircraft shall be equal to [\*\*\*] (subject to potential Mark-Up in accordance with Article 3 of the Agreement). Such Aircraft Rent/Ownership Costs shall
commence on the actual In-Service Date of each such Placement Aircraft.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;J. (i) The parties acknowledge and agree that one or more of the Placement Aircraft may require "C-checks" on their respective airframes prior to the end of their respective terms under the Agreement. [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) In addition, at the end of each Placement Aircraft's respective term under the Agreement, Delta shall pay to Operator in the month following the last flight under the Agreement by the applicable Placement Aircraft an amount equal to the product of (y) [\*\*\*] (z) [\*\*\*]

6. [\*\*\*]

[\*\*\*]

7. [\*\*\*]

[\*\*\*]

8. [\*\*\*]

[\*\*\*]

D. Section 3(L) of Amendment Three and Section 3(L) of Amendment Four are hereby deleted in their
entirety and of no further force and effect.

9. Engine Maintenance Agreements.

At no time after the Amendment Number Seven Effective Date shall Operator enter into any LLP or engine maintenance agreement or amendment with respect to any of the engines associated with the ERJ 175 Baseline Aircraft, ERJ 170 Baseline Aircraft or Placement Aircraft without the prior written consent of Delta, such consent not to be unreasonably withheld, delayed or conditioned.

------

10. Miscellaneous.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. This Amendment, together with the exhibits attached hereto, constitute the entire understanding of the parties
with respect to the subject matter hereof, and any other prior or contemporaneous agreements, whether written or oral, are expressly superseded hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Amendment may be executed in any number of counterparts, each of which shall be deemed an original and all
of which, taken together, shall constitute one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Except as specifically stated herein, all other terms and conditions of the Agreement shall remain in full
force and effect. In the event of any conflict between the terms of this Amendment and the Agreement, the terms of this Amendment shall prevail.

*{Signatures appear on following page}* 

------

IN WITNESS WHEREOF, the parties have executed this Amendment by their undersigned duly authorized representatives:

---

| | | | |
|:---|:---|:---|:---|
| Republic Airways Holdings Inc. | Republic Airways Holdings Inc. | Delta Air Lines, Inc. | Delta Air Lines, Inc. |
| By: | /s/ Bryan K. Bedford | By: | /s/ Don Bornhorst |
| Name: Bryan K. Bedford | Name: Bryan K. Bedford | Name: Don Bornhorst | Name: Don Bornhorst |
| Title: Chairman, President & CEO | Title: Chairman, President & CEO | Title: SVP Delta Connection | Title: SVP Delta Connection |

---

---

| | |
|:---|:---|
|  Shuttle America Corporation | Shuttle America Corporation |
|  By: | /s/ Bryan K. Bedford |
|  Name: | Bryan K. Bedford |
|  Title: | Chairman, President & CEO |

---

------

**<u>EXHIBIT A</u>** 

**ERJ 175 Baseline Aircraft and** 

**ERJ 175 Baseline Aircraft Engines** 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | | | | | | **Engines** | **Engines** |
|  | <br>**Fleet** | <br>**Tail Number** | <br>**Serial Number** | <br>**In-Service Date** | <br>**Baseline<br>Extension<br>Term** | <br>**Subsequent<br>Extension<br>Term** | **ESN 1** | **ESN 2** |
| 1 | E175 Baseline | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 2 | E175 Baseline | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 3 | E175 Baseline | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 4 | E175 Baseline | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 5 | E175 Baseline | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 6 | E175 Baseline | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 7 | E175 Baseline | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 8 | E175 Baseline | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 9 | E175 Baseline | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 10 | E175 Baseline | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 11 | E175 Baseline | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 12 | E175 Baseline | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 13 | E175 Baseline | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 14 | E175 Baseline | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 15 | E175 Baseline | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 16 | E175 Baseline |  |  |  | 02/24/24 | 02/24/29 | [\*\*\*] | [\*\*\*] |
| **Spare engines** | **Spare engines** | **Engines** | **Engines** |  |  |  |  |  |
| E175 Baseline | E175 Baseline | [\*\*\*] | [\*\*\*] |  |  |  |  |  |
| E175 Baseline | E175 Baseline | [\*\*\*] | [\*\*\*] |  |  |  |  |  |
| E175 Baseline | E175 Baseline | [\*\*\*] | [\*\*\*] |  |  |  |  |  |

---

------

**<u>EXHIBIT B</u>** 

**ERJ 170 Baseline Aircraft and** 

**ERJ 170 Baseline Aircraft Engines** 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | | | | | | **Engines** | **Engines** |
|  | <br>**Fleet** | <br>**Tail**<br> **Number** | <br>**Serial**<br> **Number** | <br>**In-**<br> **Service**<br> **Date** | <br>**Amended<br>Expiration Date** | <br>**Baseline Aircraft<br>Extension Term** | **ESN 1** | **ESN 2** |
| 1 | E170 Baseline | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 2 | E170 Baseline | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 3 | E170 Baseline | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 4 | E170 Baseline | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 5 | E170 Baseline | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 6 | E170 Baseline | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 7 | E170 Baseline | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 8 | E170 Baseline | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 9 | E170 Baseline | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 10 | E170 Baseline | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 11 | E170 Baseline | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 12 | E170 Baseline | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 13 | E170 Baseline | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 14 | E170 Baseline | [\*\*\*] | [\*\*\*] | [\*\*\*] | 10/01/21 | 10/01/26 | [\*\*\*] | [\*\*\*] |

---

------

**Placement Aircraft and** 

**Placement Aircraft Engines** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | | | | | **Engines** | **Engines** |
|  | <br>**Fleet** | <br>**Tail Number** | <br>**Serial Number** | <br>**In-Service Date** | <br>**Placement<br>Aircraft Term** | **ESN 1** | **ESN 2** |
| 1 | E170 Placement | [\*\*\*] | [\*\*\*] | 09/09/15 | 09/09/21 | [\*\*\*] | [\*\*\*] |
| 2 | E170 Placement | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 3 | E170 Placement | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 4 | E170 Placement | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 5 | E170 Placement | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 6 | E170 Placement | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 7 | E170 Placement | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 8 | E170 Placement | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 9 | E170 Placement | [\*\*\*] | [\*\*\*] | 04/15/16 | 04/15/22 | [\*\*\*] | [\*\*\*] |

---

## Exhibit 10.26

**Exhibit 10.26.9** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

**AMENDMENT NUMBER EIGHT TO** 

**DELTA CONNECTION** 

**AGREEMENT** 

This Amendment Number Eight (this **"Amendment"),** dated as of March 23, 2016, to the Delta Connection Agreement dated and effective January 13, 2005 (as amended from time to time, the **"Agreement"),** is among Delta Air Lines, Inc., 1030 Delta Boulevard, Atlanta, Georgia 30320 **("Delta"),** Shuttle America Corporation **("Shuttle America"** or **"Operator"),** as assignee of Republic Airline Inc. **("Republic Airlines"),** 8909 Purdue Road, Suite 300, Indianapolis, Indiana 46268, and Republic Airways Holdings Inc. **("Republic"),** 8909 Purdue Road, Suite 300, Indianapolis, Indiana 46268.

WHEREAS, Delta, Operator and Republic are parties to the Agreement; and

WHEREAS, the parties desire to [\*\*\*]; and

NOW, THEREFORE, for and in consideration of the respective undertakings set. forth herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Delta, Operator and Republic, each intending to be legally bound, hereby agree as follows:

1.  **<u>Defined Terms.</u>** All terms capitalized used, but not defined, herein shall have the meaning
ascribed to such terms in the Agreement.

2. [\*\*\*]

3.  **<u>Scheduling Targets.</u>** Commencing with the schedule period that primarily covers [\*\*\*], with respect
to the scheduling of the Aircraft, [\*\*\*] **:** 

---

| | |
|:---|:---|
| **[\*\*\*]** | **[\*\*\*]** |
| [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] |

---

------

4. [\*\*\*]

5. [\*\*\*]

6. [\*\*\*]

7. [\*\*\*]

8. [\*\*\*]

9. [\*\*\*]

10. [\*\*\*]

11.  **<u>Rescission of Placement Aircraft.</u>** The Agreement is hereby amended such that none of the [\*\*\*] ERJ
170 Aircraft set forth on <u>Exhibit B</u> to Amendment Seven (the **"Placement Aircraft")** shall be included as Aircraft under the Agreement and the respective rights and obligations of the parties with respect the Placement
Aircraft shall be null and void and of no further force and effect. [\*\*\*]

12.  **<u>Further Amendments to Agreement.</u>** In addition to the amendments and modifications set forth above,
the Agreement shall be amended as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Sections 11.F., 11.G., 11.H., 11.I., 11.L. and 11.M. of the Agreement are deleted in their respective
entireties and of no further force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Section 17 of the Agreement is hereby amended and restated as follows:

[\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. Effective as of January 1, 2017, Section 2.C. and Exhibit B in Amendment Number Three shall be
deleted in their respective entireties and of no further force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. Sections 2, 3.B., 4.D., 7 and 9 of Amendment 7 are deleted in their respective entireties and of no further
force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H. Section 3.B. of Amendment 3 to the Agreement shall be amended such that [\*\*\*].

13. [\*\*\*]

14. [\*\*\*]

15.  **<u>Conditions Precedent.</u>** [\*\*\*]

------

16. [\*\*\*]

17. [\*\*\*]

18.  **<u>Representations and Warranties.</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. <u>Representations and Warranties of Republic and Operator.</u> Republic and Operator, jointly and severally,
represent and warrant to Delta as of the date hereof as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) <u>Organization and Qualification.</u> Each of Republic and Operator is a duly incorporated and validly
existing corporation, in good standing under the laws of its state of incorporation, and has the requisite corporate power and authority to implement the transactions contemplated by and perform its obligations under the Agreement, as amended by
this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) <u>Authority.</u> The execution and delivery by each of Republic and Operator of, and the performance by
Republic and Operator of their obligations under, the Agreement, as amended by this Amendment, have been duly authorized by all necessary corporate action. This Amendment has been duly executed and delivered by Republic and Operator and, assuming
due authorization, execution and delivery by Delta, and approval of the Bankruptcy Court as contemplated by Section 14 above, this Amendment constitutes the legal, valid and binding obligation of Republic and Operator, enforceable against
Republic and Operator in accordance with the terms and conditions hereof, except as may be limited by applicable law, whether applied in a proceeding in equity or law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) <u>No Violation.</u> Neither the execution, delivery or performance by Republic or Operator of the Agreement,
as amended by this Amendment, nor the consummation by Republic or Operator of any of the transactions contemplated thereby and hereby will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. contravene or conflict with or cause a default under (A) any applicable law binding Republic or Operator, or (B) any provision of the formation documents or other documents of corporate governance of Republic or Operator; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. contravene or conflict with or cause a breach or violation of any agreement or instrument to which Republic or Operator is a party or by which Republic or Operator is bound.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) <u>No Approvals.</u> Except as set forth herein, neither the execution, delivery or performance by Republic or
Operator of the Agreement, as amended by this Amendment, nor the consummation by Republic or Operator of any of the transactions contemplated thereby and hereby, requires the consent or approval of, or the giving of notice to, the registration with,
the recording or filing of any documents with, or the taking of any other action in respect of

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. any Governmental Authority (as such term is defined in the A&R Slot Lease); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. any trustee or holder of any indebtedness or obligation of Republic or Operator, any stockholder of Republic or Operator, or any other person or entity having a contractual relationship with Republic or Operator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) <u>Survival.</u> Each of the foregoing representations and warranties shall survive the expiration or earlier
termination of the Agreement regardless of any investigation which may have been made by Delta.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. <u>Representations and Warranties of Delta.</u> Delta represents to Republic and Operator as of the date hereof
as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) <u>Organization and Qualification.</u> Delta is a duly incorporated and validly existing corporation, in good
standing under the laws of its state of incorporation, and has the requisite corporate power and authority to implement the transactions contemplated by and perform its obligations under the Agreement, as amended by this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) <u>Authority.</u> The execution and delivery by Delta of, and the performance by Delta of its obligations
under, the Agreement, as amended by this Amendment, have been duly authorized by all necessary corporate action. This Amendment has been duly executed and delivered by Delta and, assuming due authorization, execution and delivery by Republic and
Operator, and approval of the Bankruptcy Court as contemplated by Section 14 above, this Amendment constitutes the legal, valid and binding obligation of Delta, enforceable against Delta in accordance with the terms and conditions hereof,
except as may be limited by applicable law, whether applied in a proceeding in equity or law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) <u>No Violation.</u> Neither the execution, delivery or performance by Delta of the Agreement, as amended by
this Amendment, nor the consummation by Delta of any of the transactions contemplated thereby and hereby will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. contravene or conflict with or cause a default under (A) any applicable law binding Delta, or (B) any provision of the formation documents or other documents of corporate governance of Delta; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. contravene or conflict with or cause a breach or violation of any agreement or instrument to which Delta is a party or by which Delta is bound.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) <u>No Approvals.</u> Except as set forth herein, neither the execution, delivery or performance by Delta of the
Agreement, as amended by this Amendment, nor the. consummation by Delta of any of the transactions contemplated thereby and hereby, requires the consent or approval of, or the giving of notice to, the registration with, the recording or filing of
any documents with, or the taking of any other action in respect of

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. any Governmental Authority; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. any trustee or holder of any indebtedness or obligation of Delta, any stockholder of Delta, or any other person or entity having a contractual relationship with Delta. Delta is not involved as a debtor in any bankruptcy, receivership, insolvency or similar proceeding before any Governmental Authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) <u>Survival.</u> Each of the foregoing representations and warranties shall survive the expiration or earlier
termination of the Agreement regardless of any investigation which may have been made by Republic or Operator.

19.  **<u>Miscellaneous</u>** .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. This Amendment, including the exhibit and schedule attached hereto, together with [\*\*\*], constitute the entire
understanding of the parties with respect to the subject matter hereof, and any other prior or contemporaneous agreements, whether written or oral, are expressly superseded hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The Amendment may be executed in any number of counterparts, each of which shall be deemed an original and all
of which, taken together, shall constitute one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Except as specifically stated herein, all other terms and conditions of the Agreement shall remain in full
force and effect. In the event of any conflict between the terms of this Amendment and the Agreement, the terms of this Amendment shall prevail.

*{Signatures appear on following page}* 

------

IN WITNESS WHEREOF, the parties have executed this Amendment by their undersigned duly authorized representatives:

---

| | |
|:---|:---|
| **Republic Airways Holdings, Inc.**<br>By: <u>/s/ Joseph P. Allman</u> <br> Name: Joseph P. Allman<br> Title: Senior VP Finance, CFO | **Delta Air Lines, Inc.**<br>By: <u>/s/ Erik Snell</u> <br> Name: Erik Snell<br> Title: VP – Delta Connection |
| **Shuttle America Corporation**<br>By: <u>/s/ Joseph P. Allman</u> <br> Name: Joseph P. Allman<br> Title: Senior VP Finance, CFO |  |

---

*[Signature Page to Amendment Number Eight to Delta Connection Agreement]* 

------

**<u>Exhibit A</u>**

[\*\*\*]

------

**<u>Exhibit B</u>**

[\*\*\*]

## Exhibit 10.26

**Exhibit 10.26.10** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

**AMENDMENT NUMBER NINE TO** 

**DELTA CONNECTION** 

**<u>AGREEMENT</u>**

This Amendment Number Nine (this "Amendment"), dated as of December 9, 2016. to the Delta Connection Agreement dated and effective January 13, 2005 (as amended from time to time, the "Agreement"), is among Delta Air Lines, Inc., 1030 Delta Boulevard, Atlanta, Georgia 30320 ("Delta"), Shuttle America Corporation (as assignee of Republic Airline Inc.) ("Shuttle America" or "Operator"), 8909 Purdue Road, Indianapolis, Indiana 46268 and Republic Airways Holdings Inc. ("Republic"), 8909 Purdue Road, Indianapolis, Indiana 46268.

WHEREAS, Delta, Shuttle America and Republic are parties to the Agreement; and

WHEREAS, pursuant to [\*\*\*]; and

WHEREAS, the parties desire to [\*\*\*] pursuant to the terms and conditions set forth in this Amendment; and

NOW, THEREFORE, for and in consideration of the mutual undertakings set forth herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Delta, Operator and Republic, intending to be legally bound, hereby agree as follows:

1.  **<u>Defined Terms.</u>** All terms capitalized used, but not defined, herein shall have the meaning
ascribed to such terms in the Agreement.

2.  **<u>Addition of</u>** [\*\*\*]  **<u>ERJ-170 Aircraft</u>** .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Pursuant to Sections 1(A) and 17 of the Agreement, the [\*\*\*] Embraer ERJ-170 aircraft set forth on <u>Exhibit A</u> attached hereto and incorporated herein [\*\*\*] shall be added as Aircraft under, and subject to the terms and conditions of, the Agreement, as amended by this
Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. (i) Operator shall make each [\*\*\*] Aircraft available for service within the Delta Connection Program no
later than [\*\*\*]. Each [\*\*\*] Aircraft shall be included as an Aircraft under, and subject to the terms and conditions of, the Agreement (as amended by this Amendment) as of its actual in-service date, which
date shall be no earlier than [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Promptly following execution of this Agreement, Operator and Delta will jointly [\*\*\*].

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) In the event Operator has not [\*\*\*] after [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Delta shall make available, or cause to be made available, to Operator [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Notwithstanding anything in the Agreement to the contrary, the term for which each [\*\*\*] Aircraft shall be
included as an Aircraft under the Agreement shall commence on the respective actual in-service date of each [\*\*\*] Aircraft and expire on [\*\*\*]. Upon the conclusion of each such [\*\*\*] Aircraft Term, the
applicable [\*\*\*] Aircraft shall be removed from Delta Connection service and the scope of the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. At all times during the respective [\*\*\*] Aircraft Terms, Operator shall operate the [\*\*\*] Aircraft [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H. Operator shall provide Delta with [\*\*\*]. Operator acknowledges and agrees that [\*\*\*]. For the avoidance of
doubt Operator shall not be required to [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. Delta and Operator acknowledge and agree that, [\*\*\*].

3. [\*\*\*]

4. [\*\*\*]

5.  **<u>Miscellaneous.</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. This Amendment, together with the exhibits attached hereto, constitute the entire understanding of the parties
with respect to the subject matter hereof, and any other prior or contemporaneous agreements, whether written or oral, are expressly superseded hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Amendment may be executed in any number of counterparts, each of which shall be deemed an original and all
of which, taken together, shall constitute one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Except as specifically stated herein, all other terms and conditions of the Agreement shall remain in full
force and effect. In the event of any conflict between the terms of this Amendment and the Agreement, the terms of this Amendment shall prevail.

*(Signatures appear on following page)* 

------

IN WITNESS WHEREOF, the parties have executed this Amendment by their undersigned duly authorized representatives:

---

| | |
|:---|:---|
| **Republic Airways Holdings, Inc.** | **Delta Air Lines, Inc.** |
| By: <u>/s/ Paul Kinstedt</u> | By: <u>/s/ Erik Snell</u> |
| Name: Paul Kinstedt | Name: Erik Snell |
| Title: SVP Operations/COO | Title: VP Delta Connection |

---

---

| |
|:---|
| **Shuttle America Corporation** |
| By: <u>/s/ Paul Kinstedt</u> |
| Name: Paul Kinstedt |
| Title: SVP Operations/COO |

---

------

**<u>EXHIBIT A</u>**

[\*\*\*]

## Exhibit 10.26

**Exhibit 10.26.11** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

AMENDMENT NUMBER TEN TO

DELTA CONNECTION

<u>AGREEMENT</u> 

This Amendment Number Ten (this "**Amendment**"), dated as of <u>March</u> <u>10</u>, 2017, to the Delta Connection Agreement dated and effective January 13, 2005 (as amended from time to time, the "**Agreement**"), is among Delta Air Lines, Inc., 1030 Delta Boulevard, Atlanta, Georgia 30320 ("**Delta**"), Republic Airline Inc. (as successor by merger to Shuttle America Corporation) ("**Operator**"), 8909 Purdue Road, Indianapolis, Indiana 46268 and Republic Airways Holdings Inc. ("**Republic**"), 8909 Purdue Road, Indianapolis, Indiana 46268.

WHEREAS, Delta, Operator and Republic are parties to the Agreement; and

WHEREAS, amend certain provisions of the Agreement pursuant to the terms and conditions set forth in this Amendment; and

NOW, THEREFORE, for and in consideration of the mutual undertakings set forth herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Delta, Operator and Republic, intending to be legally bound, hereby agree as follows:

1.  **<u>Defined Terms.</u>** All terms capitalized used, but not defined, herein shall have the meaning
ascribed to such terms in the Agreement.

**2.**  **<u>Reimbursement of</u>** [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Delta and Operator acknowledge and agree that [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Effective as of January 1, 2017, the following [\*\*\*]:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The parties acknowledge and agree that [\*\*\*].

**3.** [\*\*\*]

**4.** [\*\*\*]

**5.** [\*\*\*]

**6.** [\*\*\*]

**7.**  **<u>Miscellaneous.</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. This Amendment, together with the exhibits attached hereto, constitute the entire understanding of the parties
with respect to the subject matter hereof, and any other prior or contemporaneous agreements, whether written or oral, are expressly superseded hereby.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Amendment may be executed in any number of counterparts, each of which shall be deemed an original and all
of which, taken together, shall constitute one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Except as specifically stated herein, all other terms and conditions of the Agreement shall remain in full
force and effect. In the event of any conflict between the terms of this Amendment and the Agreement, the terms of this Amendment shall prevail.

*{Signatures appear on following page}*

------

IN WITNESS WHEREOF, the parties have executed this Amendment by their undersigned duly authorized representatives:

---

| | |
|:---|:---|
| **Republic Airways Holdings, Inc.** | **Delta Air Lines, Inc.** |
| By: <u>/s/ Joseph P. Allman</u> | By: <u>/s/ Erik Snell</u> |
| Name: Joseph P. Allman | Name: Erik Snell |
| Title: SVP, CFO | Title: VP – Delta Connection |

---

---

| |
|:---|
| **Republic Airline Inc.** |
| By: <u>/s/ Joseph P. Allman</u> |
| Name: Joseph P. Allman |
| Title: SVP, CFO |

---

------

**<u>EXHIBIT A</u>**

[\*\*\*]

------

**<u>EXHIBIT B</u>**

[\*\*\*]

------

**<u>EXHIBIT C</u>**

[\*\*\*]

------

**<u>EXHIBIT D</u>**

[\*\*\*]

## Exhibit 10.26

**Exhibit 10.26.12** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

**AMENDMENT NUMBER ELEVEN TO** 

**DELTA CONNECTION** 

**AGREEMENT** 

This Amendment Number Eleven (this "Amendment"), dated as of May 15, 2018, to the Delta Connection Agreement dated and effective January 13, 2005 (as amended from time to time, the "Agreement"), is among Delta Air Lines, Inc., 1030 Delta Boulevard, Atlanta, Georgia 30320 ("Delta"), Republic Airline Inc. (as successor by merger to Shuttle America Corporation) ("Operator"), 8909 Purdue Road, Indianapolis, Indiana 46268 and Republic Airways Holdings Inc. ("Republic"), 8909 Purdue Road, Indianapolis, Indiana 46268.

WHEREAS, Delta, Operator and Republic are parties to the Agreement; and

WHEREAS, pursuant to [\*\*\*]; and

WHEREAS, the parties desire to [\*\*\*] pursuant to the terms and conditions set forth in this Amendment; and

NOW, THEREFORE, for and in consideration of the mutual undertakings set forth herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Delta, Operator and Republic, intending to be legally bound, hereby agree as follows:

**1.**  **<u>Defined Terms.</u>** All terms capitalized used, but not defined, herein shall have the meaning
ascribed to such terms in the Agreement.

**2.**  **<u>Addition of [\*\*\*] ERJ-170 Aircraft.</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Pursuant to Sections 1(A) and 17 of the Agreement, the [\*\*\*] Embraer ERJ-170 aircraft set forth on <u>Exhibit A</u> attached hereto and incorporated herein (the "[\*\*\*] ERJ-170 Aircraft") shall be added as Aircraft under, and
subject to the terms and conditions of, the Agreement, as amended by this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. (i) Operator shall make each [\*\*\*] ERJ-170 Aircraft available for
service within the Delta Connection Program no later than [\*\*\*]. Each [\*\*\*] ERJ-170 Aircraft shall be included as an Aircraft under, and subject to the terms and conditions of, the Agreement (as amended by
this Amendment) as of its actual in-service date, which date shall be no earlier than [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) In the event Operator has not [\*\*\*] after [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Operator and Republic, jointly and severally, represent and warrant to Delta [\*\*\*].

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Notwithstanding anything in the Agreement to the contrary, the term for which each [\*\*\*] ERJ-170 Aircraft shall be included as an Aircraft under the Agreement shall commence on the respective actual in-service date of each [\*\*\*] Aircraft and expire on [\*\*\*]. Upon
the conclusion of each such [\*\*\*] Aircraft Term, the applicable [\*\*\*] Aircraft shall be removed from Delta Connection service and the scope of the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Except as set forth in Section 2.E.(ii) of this Amendment, Operator shall [\*\*\*], and Operator shall [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. (i) At all times during the respective [\*\*\*] ERJ-170 Aircraft
Terms, Operator shall operate the [\*\*\*] ERJ-170 Aircraft [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Delta shall [\*\*\*]. Operator and Delta shall [\*\*\*]. [\*\*\*]. Operator shall ensure all [\*\*\*]. Notwithstanding the foregoing, if Operator is required to [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Operator shall [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H. Operator shall provide Delta with [\*\*\*]. For the avoidance of doubt Operator shall not be required to [\*\*\*].

**3.** [\*\*\*]

**4.** [\*\*\*]

**5.** [\*\*\*]

**6.** [\*\*\*]

**7.**  **<u>Cabin Components.</u>** 

Upon the removal of any [\*\*\*] ERJ-170 Aircraft from the scope of the Agreement, including the expiration of the respective term of such Aircraft, Operator shall [\*\*\*].

**8.**  **<u>Miscellaneous.</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. This Amendment, together with the exhibits attached hereto, constitute the entire understanding of the parties
with respect to the subject matter hereof, and any other prior or contemporaneous agreements, whether written or oral, are expressly superseded hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Amendment may be executed in any number of counterparts, each of which shall be deemed an original and all
of which, taken together, shall constitute one and the same instrument.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Except as specifically stated herein, all other terms and conditions of the Agreement shall remain in full
force and effect. In the event of any conflict between the terms of this Amendment and the Agreement, the terms of this Amendment shall prevail.

*(Signatures appear on following page)* 

------

IN WITNESS WHEREOF. the parties have executed this Amendment by their undersigned duly authorized representatives:

---

| | |
|:---|:---|
| **Republic Airways Holdings, Inc.** | **Delta Air Lines, Inc.** |
| By: <u>/s/ Paul Kinstedt</u> | By: <u>/s/ William Lentsch</u> |
| Name: Paul Kinstedt | Name: William Lentsch |
| Title: Chief Operating Officer | Title: SVP Delta Connection |

---

---

| |
|:---|
| **Republic Airline Inc.** |
| By: <u>/s/ Paul Kinstedt</u> |
| Name: Paul Kinstedt |
| Title: Chief Operating Officer |

---

------

<u>**EXHIBIT** A</u> 

**<u>2018 ERJ-170 Aircraft</u>**

---

| | | |
|:---|:---|:---|
| Aircraft | Scheduled<br>In-Service<br>Date | Removal<br>Date |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |

---

------

**<u>Exhibit B</u>**

[\*\*\*]

## Exhibit 10.26

**Exhibit 10.26.13** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

**AMENDMENT NUMBER TWELVE TO** 

**DELTA CONNECTION** 

**AGREEMENT** 

This Amendment Number Twelve (this "Amendment"), dated as of May 9, 2019, to the Delta Connection Agreement dated and effective January 13, 2005 (as amended from time to time, the "Agreement"), is among Delta Air Lines, Inc., 1030 Delta Boulevard, Atlanta, Georgia 30320 ("Delta"), Republic Airways Inc. (as successor by merger to Shuttle America Corporation and f/k/a Republic Airline Inc.) ("Operator"), 8909 Purdue Road, Suite 300, Indianapolis, Indiana 46268 and Republic Airways Holdings Inc. ("Republic"), 8909 Purdue Road, Suite 300, Indianapolis, Indiana 46268.

WHEREAS, Delta, Operator and Republic are parties to the Agreement; and

WHEREAS, pursuant to [\*\*\*]; and

WHEREAS, the parties desire to [\*\*\*]; and

NOW, THEREFORE, for and in consideration of the mutual undertakings set forth herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Delta, Operator and Republic, intending to be legally bound, hereby agree as follows:

1.  **<u>Defined Terms</u>.** All capitalized terms used, but not defined, herein shall have the meaning
ascribed to such terms in the Agreement.

2.  **<u>Addition of</u>** [\*\*\*]  **<u>Repositioned ERJ-175 Aircraft</u>** .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Pursuant to Sections 1(A) and 17 of the Agreement, the [\*\*\*] Embraer ERJ-175 aircraft set forth on <u>Exhibit A</u> attached hereto and incorporated herein [\*\*\*] shall be added as Aircraft under, and subject to the terms and conditions of, the Agreement, as amended by this
Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. (i) Operator shall make each [\*\*\*] Aircraft available for service within the Delta Connection Program no
later than [\*\*\*]. Each [\*\*\*] Aircraft shall be included as an Aircraft under, and subject to the terms and conditions of, the Agreement (as amended by this Amendment) as of its actual in-service date (the
"Actual In-Service Date"), which date shall be no earlier than [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Promptly following execution of this Amendment [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) In the event Operator has not [\*\*\*] after [\*\*\*].

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Delta shall make available, or cause to be made available, to Operator [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Notwithstanding anything in the Agreement to the contrary, the term for which each [\*\*\*] Aircraft shall be
included as an Aircraft under the Agreement shall commence on the respective actual in-service date of each [\*\*\*] Aircraft and expire on [\*\*\*]. Upon the conclusion of each such [\*\*\*] Aircraft Term, the
applicable [\*\*\*] Aircraft shall be removed from Delta Connection service and the scope of the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. At all times during the respective [\*\*\*] Aircraft Terms, Operator shall operate the [\*\*\*] Aircraft [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H. Operator shall provide Delta with [\*\*\*]. Operator acknowledges and agrees that [\*\*\*]. For the avoidance of
doubt Operator shall not be required to [\*\*\*].

3. [\*\*\*]

4. [\*\*\*]

5. [\*\*\*]

6. [\*\*\*]

7.  **<u>Operational Requirements.</u>** 

[\*\*\*]

8. [\*\*\*]

9.  **<u>Amendment of Article 11.E</u>** . Sections 11.E.(i) and (ii) of the Agreement are hereby deleted in
their entireties and replaced with the following:

[\*\*\*]

10. [\*\*\*]

11.  **<u>Miscellaneous.</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. This Amendment, together with the exhibits attached hereto, constitute the entire understanding of the parties
with respect to the subject matter hereof, and any other prior or contemporaneous agreements, whether written or oral, are expressly superseded hereby.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Amendment may be executed in any number of counterparts, each of which shall be deemed an original and all
of which, taken together, shall constitute one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Except as specifically stated herein, all other terms and conditions of the Agreement shall remain in full
force and effect. In the event of any conflict between the terms of this Amendment and the Agreement, the terms of this Amendment shall prevail.

*(Signatures appear on following page)* 

------

IN WITNESS WHEREOF, the parties have executed this Amendment by their undersigned duly authorized representatives:

---

| | |
|:---|:---|
| **Republic Airways Holdings, Inc.** | **Delta Air Lines, Inc.** |
| By: <u>/s/ Joseph P. Allman</u> | By: <u>/s/ David Garrison</u> |
| Name: Joseph P. Allman | Name: David Garrison |
| Title: SVP, CFO | Title: SVP Delta Connection |

---

---

| |
|:---|
| **Republic Airways Inc.** |
| By: <u>/s/ Joseph P. Allman</u> |
| Name: Joseph P. Allman |
| Title: SVP, CFO |

---

------

**<u>EXHIBIT A</u>**

[\*\*\*]

------

**<u>EXHIBIT B</u>**

[\*\*\*]

------

**<u>EXHIBIT C</u>**

[\*\*\*]

------

**<u>ATTACHMENT 1</u>**

[\*\*\*]

------

**<u>ADDENDUM 1-A</u>**

[\*\*\*]

------

**<u>ADDENDUM 1-B</u>**

[\*\*\*]

------

**<u>ATTACHMENT 2</u>**

[\*\*\*]

------

**<u>ATTACHMENT 3</u>**

[\*\*\*]

------

**<u>ATTACHMENT 4</u>**

[\*\*\*]

------

**<u>ATTACHMENT 5</u>**

[\*\*\*]

------

**<u>ATTACHMENT 6</u>**

[\*\*\*]

## Exhibit 10.26

**Exhibit 10.26.14** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

**AMENDMENT NUMBER** 

**THIRTEEN TO DELTA** 

**CONNECTION** 

**AGREEMENT** 

This Amendment Number Thirteen (this "Amendment"), dated as of May 31, 2019, to the Delta Connection Agreement dated and effective January 13, 2005 (as amended from time to time, the "Agreement"), is among Delta Air Lines, Inc., 1030 Delta Boulevard, Atlanta, Georgia 30320 ("Delta"), Republic Airways Inc. (as successor by merger to Shuttle America Corporation and f/k/a Republic Airline Inc.) ("Operator"), 8909 Purdue Road, Indianapolis, Indiana 46268 and Republic Airways Holdings Inc. ("Republic"), 8909 Purdue Road, Indianapolis, Indiana 46268.

WHEREAS, Delta, Operator and Republic are parties to the Agreement; and

WHEREAS, on or about [\*\*\*], the ERJ-170 aircraft with FAA registration number [\*\*\*] (the "Damaged Aircraft") was irreparably damaged; and

WHEREAS, the parties now wish to remove the Damaged Aircraft from the scope of the Agreement and replace it with another ERJ-170 aircraft; and

NOW, THEREFORE, for and in consideration of the mutual undertakings set forth herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Delta, Operator and Republic, intending to be legally bound, hereby agree as follows:

1. **Defined Terms.** All terms capitalized used, but not defined, herein shall have the meaning ascribed to
such terms in the Agreement.

2. **Replacement of One (1) ERJ-170 Aircraft.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The Damaged Aircraft shall be removed from the scope of the Agreement effective as of [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Pursuant to Sections 1(A) and 17 of the Agreement, the Embraer ERJ-170 aircraft with FAA registration number [\*\*\*] (the "Replacement Aircraft") shall be added as Aircraft under, and subject to the terms and conditions of, the Agreement [\*\*\*] and this Amendment. The Replacement Aircraft shall be deemed a
[\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. <u>Exhibit A</u> to Amendment Eleven shall be restated in its entirety to the following:

<u>**[\*\*\*] ERJ —170 Aircraft**</u>

------

---

| | | |
|:---|:---|:---|
| Aircraft | Scheduled<br> In-Service<br> Date | Removal<br> Date |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] |

---

3.  **<u>Miscellaneous</u>** .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. This Amendment, together with the exhibits attached hereto, constitute the entire understanding of the parties
with respect to the subject matter hereof, and any other prior or contemporaneous agreements, whether written or oral, are expressly superseded hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Amendment may be executed in any number of counterparts, each of which shall be deemed an original and all
of which, taken together, shall constitute one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Except as specifically stated herein, all other terms and conditions of the Agreement shall remain in full
force and effect. In the event of any conflict between the terms of this Amendment and the Agreement, the terms of this Amendment shall prevail.

*(Signatures appear on following page)* 

------

IN WITNESS WHEREOF, the parties have executed this Amendment by their undersigned duly authorized representatives:

---

| | |
|:---|:---|
| **Republic Airways Holdings, Inc.** | **Delta Air Lines, Inc.** |
| By: <u>/s/ Paul Kinstedt</u> | By: <u>/s/ David Garrison</u> |
| Name: Paul Kinstedt | Name: David Garrison |
| Title: SVP & COO | Title: SVP – Delta Connection |

---

---

| |
|:---|
| **Republic Airways Inc.** |
| **(f/k/a/ Republic Airline Inc.)** |
| By: <u>/s/ Paul Kinstedt</u> |
| Name: Paul Kinstedt |
| Title: SVP & COO |

---

## Exhibit 10.26

**Exhibit 10.26.15** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

**AMENDMENT NUMBER** 

**FOURTEEN TO DELTA** 

**CONNECTION** 

**AGREEMENT** 

This Amendment Number Fourteen (this "Amendment"), dated as of July 30, 2019, to the Delta Connection Agreement dated and effective January 13, 2005 (as amended from time to time, the "Agreement"), is among Delta Air Lines, Inc., 1030 Delta Boulevard, Atlanta, Georgia 30320 ("Delta"), Republic Airways Inc. (as successor by merger to Shuttle America Corporation and f/k/a Republic Airline Inc.) ("Operator"), 8909 Purdue Road, Indianapolis, Indiana 46268 and Republic Airways Holdings Inc. ("Republic"), 8909 Purdue Road, Indianapolis, Indiana 46268.

**WHEREAS,** Delta, Operator and Republic are parties to the Agreement; and

**WHEREAS,** the parties entered into that certain Amendment Twelve to the Agreement dated as of May 9, 2019 ("Amendment Twelve") pursuant to which [\*\*\*]; and

**WHEREAS,** the parties now wish to [\*\*\*]; and

**NOW, THEREFORE,** for and in consideration of the mutual undertakings set forth herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Delta, Operator and Republic, intending to be legally bound, hereby agree as follows:

1.  **<u>Defined Terms.</u>** All terms capitalized used, but not defined herein shall have the meaning
ascribed to such terms in the Agreement.

2.  **<u>Amendment of Exhibit A to Amendment Twelve</u>.** <u>Exhibit A</u> to Amendment Twelve is hereby
deleted in its entirety and replaced with the <u>Exhibit A</u> attached to this Amendment.

3.  **<u>Amendment of Section</u> <u>2.D.(ii) of Amendment Twelve.</u>** Section 2.D.(ii) of Amendment Twelve is hereby deleted and replaced in its entirety with the following:

"(ii) As part of the [\*\*\*] for each [\*\*\*] Aircraft, or as otherwise agreed to by the parties, Operator shall remove, or cause to be removed, the [\*\*\*]. [\*\*\*]."

4. [\*\*\*]. Delta and Operator agree that [\*\*\*], shall [\*\*\*].

5. [\*\*\*]

6.  **<u>Miscellaneous</u>** .

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. This Amendment, together with the exhibits attached hereto, constitute the entire understanding of the parties
with respect to the subject matter hereof, and any other prior or contemporaneous agreements, whether written or oral, are expressly superseded hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. This Amendment may be executed in any number of counterparts, each of which shall be deemed an original and all
of which, taken together, shall constitute one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Except as specifically stated herein, all other terms and conditions of the Agreement shall remain in full
force and effect. In the event of any conflict between the terms of this Amendment and the Agreement, the terms of this Amendment shall prevail.

------

IN WITNESS WHEREOF, the parties have executed this Amendment by their undersigned duly authorized representatives:

---

| | |
|:---|:---|
| **Republic Airways Holdings, Inc.** | **Delta Air Lines, Inc.** |
| By: <u>/s/ Paul Kinstedt</u> | By: <u>/s/ David A. Garrison</u> |
| Name: Paul Kinstedt | Name: David A. Garrison |
| Title: SVP/COO Republic Airways | Title: SVP Delta Connection CEO Endeavor Air |

---

---

| |
|:---|
| **Republic Airways Inc.** |
| **(f/k/a Republic Airline Inc.)** |
| By: <u>/s/ Paul Kinstedt</u> |
| Name: Paul Kinstedt |
| Title: SVP/COO Republic Airways |

---

------

**<u>EXHIBIT A</u>**

[\*\*\*]

------

**<u>EXHIBIT B</u>**

[\*\*\*]

## Exhibit 10.26

**Exhibit 10.26.16** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

**AMENDMENT NUMBER FIFTEEN TO** 

**DELTA CONNECTION** 

**AGREEMENT** 

This Amendment Number Fifteen (this "**Amendment**"), dated as of July 22, 2020, to the Delta Connection Agreement dated and effective January 13, 2005 (as amended from time to time, the "**Agreement**"), is among Delta Air Lines, Inc., 1030 Delta Boulevard, Atlanta, Georgia 30320 ("**Delta**"), Republic Airways Inc. (as successor by merger to Shuttle America Corporation and f/k/a Republic Airline Inc.) ("**Operator**"), 8909 Purdue Road, Suite 300, Indianapolis, Indiana 46268 and Republic Airways Holdings Inc. ("**Republic**"), 8909 Purdue Road, Suite 300, Indianapolis, Indiana 46268.

WHEREAS, Delta, Operator and Republic are parties to the Agreement; and

WHEREAS, the parties desire to amend certain provisions of the Agreement pursuant to the terms and conditions set forth in this Amendment; and

NOW, THEREFORE, for and in consideration of the mutual undertakings set forth herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Delta, Operator and Republic, intending to be legally bound, hereby agree as follows:

1) **<u>Defined Terms</u>.** All capitalized terms used, but not defined, herein shall have the meaning ascribed to such terms in the Agreement. 

2) **<u>Amendments to Certain Provisions</u>.** For the period [\*\*\*], the parties agree to amend the Agreement as follows: 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) <u>Scheduling</u> [\*\*\*]. The Scheduling [\*\*\*] are hereby amended as follows: [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) <u>Aircraft Term</u> [\*\*\*]. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) [\*\*\*]

3) [\*\*\*]

4) **<u>Temporary</u>** [\*\*\*]**.** With respect to any Aircraft [\*\*\*]) that Delta requests [\*\*\*], Delta agrees to [\*\*\*]. 

------

5) **[\*\*\*].** On or before [\*\*\*], the parties will mutually agree upon [\*\*\*]. 

6) **[\*\*\*].** Commencing as of [\*\*\*], Operator shall [\*\*\*]. 

7) **<u>Miscellaneous</u>**. 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. This Amendment, together with the exhibits attached hereto, constitute the entire understanding of the parties
with respect to the subject matter hereof, and any other prior or contemporaneous agreements, whether written or oral, are expressly superseded hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Amendment may be executed in any number of counterparts, each of which shall be deemed an original and all
of which, taken together, shall constitute one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Except as specifically stated herein, all other terms and conditions of the Agreement shall remain in full
force and effect. In the event of any conflict between the terms of this Amendment and the Agreement, the terms of this Amendment shall prevail.

*{Signatures appear on following page}* 

------

IN WITNESS WHEREOF, the parties have executed this Amendment by their undersigned duly authorized representatives:

---

| | |
|:---|:---|
| Republic Airways Holdings, Inc. | Delta Air Lines, Inc. |
| By: <u>/s/ Joseph P. Allman</u> | By: <u>/s/ David Garrison</u> |
| Name: Joseph P. Allman | Name: David Garrison |
| Title: SVP, CFO | Title: Senior Vice President |

---

---

| |
|:---|
| Republic Airways Inc. |
| By: <u>/s/ Joseph P. Allman</u> |
| Name: Joseph P. Allman |
| Title: SVP, CFO |

---

------

**<u>EXHIBIT A</u>**

[\*\*\*]

------

**<u>EXHIBIT B</u>**

[\*\*\*]

------

**<u>EXHIBIT C</u>**

[\*\*\*]

------

**<u>EXHIBIT D</u>**

[\*\*\*]

## Exhibit 10.26

**Exhibit 10.26.17** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

**AMENDMENT NUMBER SIXTEEN TO** 

**DELTA CONNECTION** 

**AGREEMENT** 

This Amendment Number Sixteen (this "**Amendment**"), dated as of October 21 , 2020 (the "**Amendment Sixteen Effective Date**"), to the Delta Connection Agreement dated and effective January 13, 2005 (as amended from time to time, the "**Agreement**"), is among Delta Air Lines, Inc., 1030 Delta Boulevard, Atlanta, Georgia 30320 ("**Delta**"), Republic Airways Inc. (as successor by merger to Shuttle America Corporation and f/k/a Republic Airline Inc.) ("Operator"), 8909 Purdue Road, Suite 300, Indianapolis, Indiana 46268 and Republic Airways Holdings Inc. ("**Republic**"), 8909 Purdue Road, Suite 300, Indianapolis, Indiana 46268.

WHEREAS, Delta, Operator and Republic are parties to the Agreement; and

WHEREAS, the parties desire to amend certain provisions of the Agreement pursuant to the terms and conditions set forth in this Amendment; and

NOW, THEREFORE, for and in consideration of the mutual undertakings set forth herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Delta, Operator and Republic, intending 10 be legally bound, hereby agree as follows:

1) **<u>Defined Terms</u>**. All capitalized terms used, but not defined, herein shall have the meaning ascribed to such terms in the Agreement. 

2) **<u>Amendments to Certain Provisions</u>**. Effective as of the Amendment Sixteen Effective Date the parties agree to amend the Agreement as follows: 

The respective Removal Dates of the [\*\*\*] Aircraft are hereby [\*\*\*]. <u>Exhibit A</u> attached to this Amendment sets forth each of [\*\*\*] their new respective Removal Dates.

3) **<u>Miscellaneous</u>**. 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. This Amendment, together with the exhibits attached hereto, constitute the entire understanding of the parties
with respect to the subject matter hereof, and any other prior or contemporaneous agreements, whether written or oral, are expressly superseded hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Amendment may be executed in any number of counterparts, each of which shall be deemed an original and all
of which, taken together, shall constitute one and the same instrument.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Except as specifically stated herein, all other terms and conditions of the Agreement shall remain in full
force and effect. In the event of any conflict between the terms of this Amendment and the Agreement, the terms of this Amendment shall prevail.

{*Signatures appear on following page*}

------

IN WITNESS WHEREOF, the parties have executed this Amendment by their undersigned duly authorized representatives:

---

| | |
|:---|:---|
| Republic Airways Holdings Inc. | Delta Air Lines, Inc. |
| By: <u>/s/ Joseph P. Allman</u> | By: <u>/s/ Jim Graham</u> |
| Name: Joseph P. Allman | Name: Jim Graham |
| Title: SVP, CFO | Title: SVP Delta Connection |

---

---

| |
|:---|
| Republic Airways Inc. |
| By: <u>/s/ Joseph P. Allman</u> |
| Name: Joseph P. Allman |
| Title: SVP, CFO |

---

------

**<u>EXHIBIT A</u>**

[\*\*\*]

## Exhibit 10.26

**Exhibit 10.26.18** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

**AMENDMENT NUMBER SEVENTEEN TO** 

**DELTA CONNECTION** 

**AGREEMENT** 

This Amendment Number Seventeen (this "**Amendment**"), dated as of January 12, 2021 (the "**Amendment Seventeen Effective Date**"), to the Delta Connection Agreement dated and effective January 13, 2005 (as amended from time to time, the "**Agreement**"), is among Delta Air Lines, Inc., 1030 Delta Boulevard, Atlanta, Georgia 30320 ("**Delta**"), Republic Airways Inc. (as successor by merger to Shuttle America Corporation and f/k/a Republic Airline Inc.) ("**Operator**"), 8909 Purdue Road, Suite 300, Indianapolis, Indiana 46268 and Republic Airways Holdings Inc. ("**Republic**"), 8909 Purdue Road, Suite 300, Indianapolis, Indiana 46268.

WHEREAS, Delta, Operator and Republic are parties to the Agreement; and

WHEREAS, the parties desire to amend certain provisions of the Agreement pursuant to the terms and conditions set forth in this Amendment; and

NOW, THEREFORE, for and in consideration of the mutual undertakings set forth herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Delta, Operator and Republic, intending to be legally bound, hereby agree as follows:

1) **<u>Defined Terms</u>.** All capitalized terms used, but not defined, herein shall have the meaning ascribed to such terms in the Agreement. 

2) **<u>Amendments to Certain Provisions</u>.** Effective as of the Amendment Seventeen Effective Date the parties agree to amend the Agreement as follows: 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The respective Removal Dates of the [\*\*\*] Aircraft listed on <u>Exhibit A</u> attached hereto [\*\*\*] are
hereby [\*\*\*]. After the [\*\*\*] Aircraft are removed from the scope of the Agreement as of their respective new Removal Dates, they shall [\*\*\*]. Each of the [\*\*\*] Aircraft shall return to revenue service on or about [\*\*\*]. Notwithstanding anything in
the Agreement to the contrary, [\*\*\*] each of the [\*\*\*] Aircraft shall be [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. The parties acknowledge and agree that [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. The parties further acknowledge and agree that [\*\*\*]

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H. [\*\*\*]

3) **<u>Miscellaneous</u>**. 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. This Amendment, together with the exhibits attached hereto, constitute the entire understanding of the parties
with respect to the subject matter hereof, and any other prior or contemporaneous agreements, whether written or oral, are expressly superseded hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Amendment may be executed in any number of counterparts, each of which shall be deemed an original and all
of which, taken together, shall constitute one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Except as specifically stated herein, all other terms and conditions of the Agreement shall remain in full
force and effect. In the event of any conflict between the terms of this Amendment and the Agreement, the terms of this Amendment shall prevail.

*{Signatures appear on following page}*

------

IN WITNESS WHEREOF, the parties have executed this Amendment by their undersigned duly authorized representatives:

---

| | |
|:---|:---|
| Republic Airways Holdings Inc. | Delta Air Lines, Inc. |
| By: <u>/s/ Joseph P. Allman</u> | By: <u>/s/ Jim Graham</u> |
| Name: Joseph P. Allman | Name:Jim Graham |
| Title: SVP, CFO | Title: SVP, Delta Connection |

---

---

| |
|:---|
| Republic Airways Inc. |
| By: <u>/s/ Joseph P. Allman</u> |
| Name: Joseph P. Allman |
| Title: SVP, CFO |

---

------

**<u>EXHIBIT A</u>**

[\*\*\*]

------

**<u>EXHIBIT B</u>**

[\*\*\*]

------

**<u>EXHIBIT C</u>**

[\*\*\*]

## Exhibit 10.26

**Exhibit 10.26.19** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

**AMENDMENT NUMBER EIGHTEEN TO** 

**DELTA CONNECTION** 

**AGREEMENT** 

This Amendment Number Eighteen (this "**Amendment**"), dated as of April 30, 2021, to the Delta Connection Agreement dated and effective January 13, 2005 (as amended from time to time, the "**Agreement**"), is among Delta Air Lines, Inc., 1030 Delta Boulevard, Atlanta, Georgia 30320 ("**Delta**"), Republic Airways Inc. (as successor by merger to Shuttle America Corporation and f/k/a Republic Airline Inc.) ("**Operator**"), 8909 Purdue Road, Suite 300, Indianapolis, Indiana 46268 and Republic Airways Holdings Inc. ("**Republic**"), 8909 Purdue Road, Suite 300, Indianapolis, Indiana 46268.

WHEREAS, Delta, Operator and Republic are parties to the Agreement; and

WHEREAS, the parties desire to amend certain provisions of the Agreement pursuant to the terms and conditions set forth in this Amendment; and

NOW, THEREFORE, for and in consideration of the mutual undertakings set forth herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Delta, Operator and Republic, intending to be legally bound, hereby agree as follows:

<u>1)</u> **<u>Defined Terms</u>**<u>.</u> All capitalized terms used, but not defined, herein shall have the meaning ascribed to such terms in the Agreement. 

2) [\*\*\*]

<u>3)</u> **<u>Aircraft Term</u>** [\*\*\*]. 

[\*\*\*]

<u>4)</u> **<u>Miscellaneous</u>**. 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. This Amendment, together with the exhibits attached hereto, constitute the entire understanding of the parties
with respect to the subject matter hereof, and any other prior or contemporaneous agreements, whether written or oral, are expressly superseded hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Amendment may be executed in any number of counterparts, each of which shall be deemed an original and all
of which, taken together, shall constitute one and the same instrument.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Except as specifically stated herein, all other terms and conditions of the Agreement shall remain in full
force and effect. In the event of any conflict between the terms of this Amendment and the Agreement, the terms of this Amendment shall prevail.

*{Signatures appear on following page}* 

------

IN WITNESS WHEREOF, the parties have executed this Amendment by their undersigned duly authorized representatives:

---

| | |
|:---|:---|
| Republic Airways Holdings Inc. | Delta Air Lines, Inc. |
| By: <u>/s/ Paul Kinstedt</u> | By: <u>/s/ James C. Graham</u> |
| Name: Paul Kinstedt | Name: James C. Graham |
| Title: SVP Operations/COO | Title: SVP & CEO Endeavor Air |

---

---

| |
|:---|
| Republic Airways Inc. |
| By: <u>/s/ Paul Kinstedt</u> |
| Name: Paul Kinstedt |
| Title: SVP Operations/COO |

---

------

**<u>EXHIBIT A</u>**

[\*\*\*]

------

**<u>EXHIBIT B</u>**

[\*\*\*]

------

**<u>EXHIBIT C</u>**

[\*\*\*]

## Exhibit 10.26

**Exhibit 10.26.20** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

**AMENDMENT NUMBER NINETEEN TO** 

**DELTA CONNECTION** 

**AGREEMENT** 

This Amendment Number Nineteen (this "**Amendment**"), dated as of June 29, 2021, to the Delta Connection Agreement dated and effective January 13, 2005 (as amended from time to time, the "**Agreement**"), is among Delta Air Lines, Inc., 1030 Delta Boulevard, Atlanta, Georgia 30320 ("**Delta**"), Republic Airways Inc. (as successor by merger to Shuttle America Corporation and f/k/a Republic Airline Inc.) ("**Operator**"), 8909 Purdue Road, Suite 300, Indianapolis, Indiana 46268 and Republic Airways Holdings Inc. (**"Republic**"), 8909 Purdue Road, Suite 300, Indianapolis, Indiana 46268.

WHEREAS, Delta, Operator and Republic are parties to the Agreement; and

WHEREAS, the parties desire to amend certain provisions of the Agreement pursuant to the terms and conditions set forth in this Amendment; and

NOW, THEREFORE, for and in consideration of the mutual undertakings set forth herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Delta, Operator and Republic, intending to be legally bound, hereby agree as follows:

<u>1)</u> **<u>Defined Terms</u>.** All capitalized terms used, but not defined, herein shall have the meaning ascribed to such terms in the Agreement. 

<u>2)</u> **<u>Amendments to Certain Provisions</u>**. 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>c)</u> <u>Aircraft Term</u> [\*\*\*]. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f) [\*\*\*]

3) [\*\*\*]

------

4) [\*\*\*]

<u>5)</u> **<u>Miscellaneous</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. This Amendment, together with the exhibits attached hereto, constitute the entire understanding of the parties
with respect to the subject matter hereof, and any other prior or contemporaneous agreements, whether written or oral, are expressly superseded hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Amendment may be executed in any number of counterparts, each of which shall be deemed an original and all
of which, taken together, shall constitute one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Except as specifically stated herein, all other terms and conditions of the Agreement shall remain in full
force and effect. In the event of any conflict between the terms of this Amendment and the Agreement, the terms of this Amendment shall prevail.

*{Signatures appear on following page}*

------

IN WITNESS WHEREOF, the parties have executed this Amendment by their undersigned duly authorized representatives:

---

| | |
|:---|:---|
| Republic Airways Holdings Inc. | Delta Air Lines, Inc. |
| By: <u>/s/ Paul Kinstedt</u> | By: <u>/s/ Jim Graham</u> |
| Name: Paul Kinstedt | Name: Jim Graham |
| Title: SVP/COO | Title: SVP Delta Connection |

---

---

| |
|:---|
| Republic Airways Holdings Inc. |
| By: <u>/s/ Paul Kinstedt</u> |
| Name: Paul Kinstedt |
| Title: SVP/COO |

---

------

**<u>EXHIBIT A</u>**

[\*\*\*]

------

**<u>EXHIBIT B</u>**

[\*\*\*]

------

**<u>EXHIBIT C</u>**

[\*\*\*]

------

**<u>EXHIBIT D</u>**

[\*\*\*]

------

**<u>EXHIBIT E</u>**

[\*\*\*]

## Exhibit 10.26

**Exhibit 10.26.21** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

**AMENDMENT NUMBER TWENTY TO** 

**DELTA CONNECTION AGREEMENT** 

This Amendment Number Twenty (this "**Amendment**"), dated as of September 02, 2021, ("**Amendment Number Twenty Effective Date**") to the Delta Connection Agreement dated and effective January 13, 2005 (as amended from time to time, the "**Agreement**"), is among Delta Air Lines, Inc., 1030 Delta Boulevard, Atlanta, Georgia 30320 ("**Delta**"), Republic Airways Inc. (as successor by merger to Shuttle America Corporation and f/k/a Republic Airline Inc.) ("**Operator**"), 8909 Purdue Road, Suite 300, Indianapolis, Indiana 46268 and Republic Airways Holdings Inc. ("**Republic**"), 8909 Purdue Road, Suite 300, Indianapolis, Indiana 46268.

WHEREAS, Delta, Republic and Operator are parties to the Agreement; and

WHEREAS, the parties desire to implement and define terms and conditions related to Operator utilizing an inflight mobile device onboard; and

NOW, THEREFORE, for and in consideration of the mutual undertakings set forth herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Delta, Republic and Operator, intending to be legally bound, hereby agree to amend the Agreement as follows:

1.  **<u>Defined Terms</u>** . All capitalized terms used but not defined herein shall have the meaning ascribed
to such terms in the Agreement.

<u>2.</u>  **<u>Inflight Services Devices</u>** <u>.</u> 

[\*\*\*]

3.  **<u>Miscellaneous</u>** <u>.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. This Amendment constitutes the entire understanding of the parties with respect to the subject matter hereof,
and any other prior or contemporaneous agreements, whether written or oral, are expressly superseded hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Amendment may be executed in any number of counterparts, including via facsimile, each of which shall be
deemed an original and all of which, taken together, shall constitute one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Except as specifically stated herein, all other terms and conditions of the Agreement shall remain in full
force and effect. In the event of any conflict between the terms of this Amendment and the Agreement, the terms of this Amendment shall prevail.

------

IN WITNESS WHEREOF, the parties have executed this Amendment by their undersigned duly authorized representatives:

---

| | |
|:---|:---|
|  Republic Airways Holdings Inc. | Delta Air Lines, Inc. |
|  By: <u>/s/ Paul Kinstedt</u>  | By: <u>/s/ Jim Graham</u>  |
|  Name: Paul Kinstedt | Name: Jim Graham |
|  Title: SVP/COO | Title: SVP Delta Connection |
|  Date: 9/13/21 | Date: 9/14/2021 |

---

---

| |
|:---|
|  Republic Airways Inc. |
|  By: <u>/s/ Paul Kinstedt</u>  |
|  Name: Paul Kinstedt |
|  Title: SVP/COO |

---

------

**EXHIBIT A** 

[\*\*\*]

## Exhibit 10.26

**Exhibit 10.26.22** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

**AMENDMENT NUMBER TWENTY-ONE TO** 

**DELTA CONNECTION** 

**AGREEMENT** 

This Amendment Number Twenty-One (this "Amendment"), dated as of September 30, 2021, to the Delta Connection Agreement dated and effective January 13, 2005 (as amended from time to time, the "Agreement"), is among Delta Air Lines, Inc., 1030 Delta Boulevard, Atlanta, Georgia 30320 ("Delta"), Republic Airways Inc. (as successor by merger to Shuttle America Corporation and f/k/a Republic Airline Inc.) ("Operator"), 8909 Purdue Road, Suite 300, Indianapolis, Indiana 46268 and Republic Airways Holdings Inc. ("Republic"), 8909 Purdue Road, Suite 300, Indianapolis, Indiana 46268.

WHEREAS, Delta, Operator and Republic are parties to the Agreement; and

WHEREAS, the parties desire to add [\*\*\*] Embraer ERJ-170 aircraft within the scope of the Agreement and amend certain provisions of the Agreement pursuant to the terms and conditions set forth in this Amendment; and

NOW, THEREFORE, for and in consideration of the mutual undertakings set forth herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Delta, Operator and Republic, intending to be legally bound, hereby agree as follows:

1.  **<u>Defined Terms</u>** . All capitalized terms used, but not defined, herein shall have the meaning
ascribed to such terms in the Agreement.

2.  **<u>Addition of</u> [\*\*\*] <u>ERJ-170 Aircraft</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Pursuant to Sections 1(A) and 17 of the Agreement, the [\*\*\*] Embraer ERJ-170 aircraft set forth on <u>Exhibit A</u> attached hereto and incorporated herein (the "[\*\*\*] ERJ-170 Aircraft") shall be added as Aircraft under, and
subject to the terms and conditions of, the Agreement, as amended by this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. (i) Operator shall make each [\*\*\*] ERJ-170 Aircraft available for
service within the Delta Connection Program no later than [\*\*\*]. Each [\*\*\*] ERJ-170 Aircraft shall be included as an Aircraft under, and subject to the terms and conditions of, the Agreement (as amended by
this Amendment) as of its actual in-service date (the "Actual In-Service Date"), which date shall be [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If Operator does not [\*\*\*], Operator shall [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) In the event Operator has not [\*\*\*] after [\*\*\*].

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Notwithstanding anything in the Agreement to the contrary, the term for which each [\*\*\*] ERJ-170 Aircraft shall be included as an Aircraft under the Agreement shall commence on the respective actual in-service date of each [\*\*\*] ERJ-170 Aircraft and expire on [\*\*\*]. Upon the conclusion of each such [\*\*\*] ERJ-170 Aircraft Term, the applicable [\*\*\*] ERJ-170 Aircraft shall be removed from Delta Connection service and the scope of the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. At all times during the respective [\*\*\*] ERJ-170 Aircraft Terms,
Operator shall operate the [\*\*\*] ERJ-170 Aircraft [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H. Operator shall provide Delta with [\*\*\*]. Operator acknowledges and agrees that [\*\*\*]. For the avoidance of
doubt, Operator shall not be required to [\*\*\*].

3.  **<u>Intentionally Omitted</u>** .

4. [\*\*\*]

5. [\*\*\*]

6.  **<u>Miscellaneous</u>** .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. This Amendment, together with the exhibits attached hereto, constitute the entire understanding of the parties
with respect to the subject matter hereof, and any other prior or contemporaneous agreements, whether written or oral, are expressly superseded hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Amendment may be executed in any number of counterparts, each of which shall be deemed an original and all
of which, taken together, shall constitute one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Except as specifically stated herein, all other terms and conditions of the Agreement shall remain in full
force and effect. In the event of any conflict between the terms of this Amendment and the Agreement, the terms of this Amendment shall prevail.

*{Signatures appear on following page)* 

------

IN WITNESS WHEREOF, the parties have executed this Amendment by their undersigned duly authorized representatives:

---

| | | | |
|:---|:---|:---|:---|
| Republic Airways Holdings Inc. | Republic Airways Holdings Inc. | Delta Air Lines, Inc. | Delta Air Lines, Inc. |
| By: | /s/ Paul Kinstedt | By: | /s/ Jim Graham |
| Name: | Paul Kinstedt | Name: | Jim Graham |
| Title: | SVP/COO | Title: | SVP Delta Connection |

---

---

| | |
|:---|:---|
| Republic Airways, Inc. | Republic Airways, Inc. |
| By: | /s/ Paul Kinstedt |
| Name: | Paul Kinstedt |
| Title: | SVP/COO |

---

------

**<u>EXHIBIT A</u>**

[\*\*\*]

## Exhibit 10.26

**Exhibit 10.26.23** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

**AMENDMENT NUMBER TWENTY-TWO TO** 

**DELTA CONNECTION AGREEMENT** 

This Amendment Number Twenty-Two (this "Amendment"), dated as of March 31, 2022, to the Delta Connection Agreement dated and effective January 13, 2005 (as amended from time to time, the "Agreement"), is among Delta Air Lines, Inc., 1030 Delta Boulevard, Atlanta, Georgia 30320 ("Delta"), Republic Airways Inc. (as successor by merger to Shuttle America Corporation and f/k/a Republic Airline Inc.) ("Operator"), 8909 Purdue Road, Suite 300, Indianapolis, Indiana 46268 and Republic Airways Holdings Inc. ("Republic"), 8909 Purdue Road, Suite 300, Indianapolis, Indiana 46268.

WHEREAS, Delta, Operator and Republic are parties to the Agreement; and

WHEREAS, Delta, Operator and Republic desire to [\*\*\*] pursuant to the terms and conditions set forth in this Amendment; and

NOW, THEREFORE, for and in consideration of the mutual undertakings set forth herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Delta, Operator and Republic, intending to be legally bound, hereby agree to amend the Agreement as follows:

1.  **<u>Defined Terms</u>.** All capitalized terms used but not defined herein shall have the meaning
ascribed to such terms in the Agreement.

2. [\*\*\*]

3.  **<u>Miscellaneous</u>** <u>.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. This Amendment, together with Schedule 1, constitutes the entire understanding of the parties with respect to
the subject matter hereof, and any other prior or contemporaneous agreements, whether written or oral, are expressly superseded hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Amendment may be executed in any number of counterparts, including via electronic signature, each of which
shall be deemed an original and all of which, taken together, shall constitute one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Except as specifically stated herein, all other terms and conditions of the Agreement shall remain in full
force and effect. In the event of any conflict between the terms of this Amendment and the Agreement, the terms of this Amendment shall prevail.

------

IN WITNESS WHEREOF, the parties have executed this Amendment by their undersigned duly authorized representatives.

---

| | |
|:---|:---|
| Republic Airways Holdings Inc. | Delta Air Lines, Inc. |
| By: <u>/s/ Matt Koscal</u> | By: <u>/s/ Jim Graham</u> |
| Name: Matt Koscal | Name: Jim Graham |
| Title: EVP – CAO | Title: SVP Delta Connection |

---

---

| | |
|:---|:---|
| Republic Airways Inc. | Republic Airways Inc. |
| By: | <u>/s/ Matt Koscal</u> |
| Name: Matt Koscal | Name: Matt Koscal |
| Title: EVP - CAO | Title: EVP - CAO |

---

[*signature page to Amendment Number Twenty-Two*]

------

**<u>SCHEDULE 1</u>**

[\*\*\*]

## Exhibit 10.26

**Exhibit 10.26.24** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

**AMENDMENT NUMBER TWENTY-THREE TO** 

**DELTA CONNECTION** 

**AGREEMENT** 

This Amendment Number Twenty-Three (this "**Amendment**" or "**Amendment 23**"), dated as of January 18, 2023 (the "**Amendment 23 Effective Date**"), to the Delta Connection Agreement dated and effective January 13, 2005 (as amended from time to time, the "**Agreement**"), is among Delta Air Lines, Inc., 1030 Delta Boulevard, Atlanta, Georgia 30320 ("**Delta**"), Republic Airways Inc. (as successor by merger to Shuttle America Corporation and f/k/a Republic Airline Inc.) ("**Operator**"), 8909 Purdue Road, Suite 300, Indianapolis, Indiana 46268 and Republic Airways Holdings Inc. ("**Republic**"), 8909 Purdue Road, Suite 300, Indianapolis, Indiana 46268.

WHEREAS, the parties desire to amend certain provisions of the Agreement pursuant to the terms and conditions set forth in this Amendment; and

NOW, THEREFORE, for and in consideration of the mutual undertakings set forth herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Delta, Operator and Republic, intending to be legally bound, hereby agree as follows:

**1.**  **<u>Defined Terms</u>** . All capitalized terms used, but not defined, herein shall have the meaning
ascribed to such terms in the Agreement. As used in this Amendment, the following terms have the following meanings:

"**Amendment 12**" means Amendment Number Twelve to the Agreement dated as of May 9, 2019.

"**Amendment 19**" means Amendment Number Nineteen to the Agreement dated as of June 29, 2021.

[\*\*\*]

**2.** [\*\*\*]

**3.** [\*\*\*]

**4.** [\*\*\*]

**5.**  **<u>Amendment to Certain Provisions</u>** .

[\*\*\*]

------

**6.**  **<u>Miscellaneous</u>** .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. This Amendment, together with the exhibits attached hereto, constitute the entire understanding of the parties
with respect to the subject matter hereof, and any other prior or contemporaneous agreements, whether written or oral, are expressly superseded hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Amendment may be executed in any number of counterparts, each of which shall be deemed an original and all
of which, taken together, shall constitute one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Except as specifically stated herein, all other terms and conditions of the Agreement shall remain in full
force and effect. In the event of any conflict between the terms of this Amendment and the Agreement, the terms of this Amendment shall prevail.

*{Signatures appear on following page}* 

------

IN WITNESS WHEREOF, the parties have executed this Amendment by their undersigned duly authorized representatives:

---

| | |
|:---|:---|
| Republic Airways Holdings Inc. | Delta Air Lines, Inc. |
| By: <u>/s/ Matt Koscal</u> | By: <u>/s/ Jim Graham</u> |
| Name: Matt Koscal | Name: Jim Graham |
| Title: EVP - CAO | Title: SVP Delta Connection |

---

---

| | |
|:---|:---|
| Republic Airways Inc. | Republic Airways Inc. |
| By: | /s/ Matt Koscal |
| Name: | Matt Koscal |
| Title: | EVP - CAO |

---

------

**<u>EXHIBIT A</u>**

[\*\*\*]

## Exhibit 10.26

**Exhibit 10.26.25** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

**AMENDMENT NUMBER TWENTY-FOUR TO** 

**DELTA CONNECTION** 

**AGREEMENT** 

This Amendment Number Twenty-Four (this "**Amendment**"), dated as of July 23, 2024, to the Delta Connection Agreement dated and effective January 13, 2005 (as amended from time to time, the "Agreement"), is among Delta Air Lines, Inc., 1030 Delta Boulevard, Atlanta, Georgia 30320 ("**Delta**"), Republic Airways Inc. (as successor by merger to Shuttle America Corporation and f/k/a Republic Airline Inc.) ("**Operator**"), 8909 Purdue Road, Suite 300, Indianapolis, Indiana 46268 and Republic Airways Holdings Inc. ("**Republic**"), 8909 Purdue Road, Suite 300, Indianapolis, Indiana 46268.

WHEREAS, Delta, Operator and Republic are parties to the Agreement; and

WHEREAS, the parties desire to add [\*\*\*] Embraer ERJ-175 aircraft within the scope of the Agreement and amend certain provisions of the Agreement pursuant to the terms and conditions set forth in this Amendment; and

NOW, THEREFORE, for and in consideration of the mutual undertakings set forth herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Delta, Operator and Republic, intending to be legally bound, hereby agree as follows:

1.  **<u>Defined Terms</u>** . All capitalized terms used, but not defined, herein shall have the meaning
ascribed to such terms in the Agreement.

2.  **<u>Addition of</u>** [\*\*\*] <u> </u>  **<u>ERJ-175 Aircraft</u>** .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Pursuant to Sections 1(A) and 17 of the Agreement, the Embraer ERJ-175 aircraft set forth below shall be added as [\*\*\*] (the "[\*\*\*] **Aircraft**") under, and subject to the terms and conditions of, the Agreement, as amended by this Amendment.

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| | |
|:---|:---|
| **FAA Registration**<br> **Number** | **In-Service Date** |
| [\*\*\*] | [\*\*\*] |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The [\*\*\*] Aircraft shall be included as an Aircraft under, and subject to the terms and conditions of, the
Agreement (as amended by this Amendment) as of the "In-Service Date" set forth in Section 2.A above. The term of the [\*\*\*] Aircraft shall commence on the In-Service Date and expire on [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. [\*\*\*]

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. [\*\*\*]

3.  **<u>Miscellaneous</u>** .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. This Amendment, together with the exhibits attached hereto, constitute the entire understanding of the parties
with respect to the subject matter hereof, and any other prior or contemporaneous agreements, whether written or oral, are expressly superseded hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Amendment may be executed in any number of counterparts, each of which shall be deemed an original and all
of which, taken together, shall constitute one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Except as specifically stated herein, all other terms and conditions of the Agreement shall remain in full
force and effect. In the event of any conflict between the terms of this Amendment and the Agreement, the terms of this Amendment shall prevail.

*{Signatures appear on following page}* 

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IN WITNESS WHEREOF, the parties have executed this Amendment by their undersigned duly authorized representatives:

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| | |
|:---|:---|
| Republic Airways Holdings, Inc. | Delta Air Lines, Inc. |
| By: <u>/s/ Matt Koscal</u> | By: <u>/s/ Jim Graham</u> |
| Name: Matt Koscal | Name: Jim Graham |
| Title: EVP - CAO | Title: SVP Delta Connection |

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| | |
|:---|:---|
| Republic Airways Inc. | Republic Airways Inc. |
| By: | /s/ Matt Koscal |
| Name: Matt Koscal | Name: Matt Koscal |
| Title: EVP - CAO | Title: EVP - CAO |

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## Exhibit 10.27

**Exhibit 10.27.1** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

December 28, 2006

**United Express<sup>®</sup> Agreement** 

**between** 

**United Air Lines, Inc.** 

**and** 

**Shuttle America Corp.** 

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**TABLE OF CONTENTS** 

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| | | |
|:---|:---|:---|
| **ARTICLE** | **TITLE** | **PAGE** |
| I. | DEFINITIONS | 7 |
| II. | SCOPE, TERM, AND CONDITIONS | 9 |
| A. | SCOPE | 9 |
| B. | TERM | 9 |
| C. | CONDITIONS | 10 |
| D. | BANKRUPTCY PROVISION | 10 |
| III. | SUPPORT SERVICES AND FACILITIES | 11 |
| A. | GENERAL | 11 |
| B. | SPECIAL SUPPORT SERVICES | 12 |
| C. | COMMUNICATIONS | 12 |
| D. | RESERVATIONS | 13 |
| E. | OPERATIONS | 14 |
| F. | STATION SUPPORT SERVICES | 16 |
| G. | TARIFFS AND SCHEDULE PUBLICATION | 16 |
| H. | ADVERTISING AND PROMOTIONS | 17 |
| I. | AUTOMATION | 18 |
| J. | CONTRACTOR ASSISTANCE | 20 |
| IV. | AIR SERVICES TO BE PROVIDED BY CONTRACTOR | 21 |
| A. | AIRCRAFT TO BE USED | 21 |
| B. | TECHNICAL SPECIFICATIONS | 21 |

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ii

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| | | |
|:---|:---|:---|
| C. | SCHEDULES AND CHARTERS TO BE OPERATED BY CONTRACTOR | 22 |
| D. | INVENTORY | 24 |
| E. | FLIGHT CREWS TO BE USED | 24 |
| F. | INFLIGHT SALES | 24 |
| V. | OPERATING RESTRICTIONS | 25 |
| A. | UNITED EXPRESS OPERATIONS ONLY | 25 |
| B. | CODE SHARE LIMITATION | 25 |
| C. | NO OPERATION OUTSIDE AGREEMENT | 25 |
| D. | SEVERABILITY AND REMEDY | 25 |
| VI. | LICENSE | 26 |
| A. | GRANT OF LICENSE | 26 |
| B. | TERMS AND CONDITIONS GOVERNING LICENSE | 26 |
| C. | INFRINGEMENT | 27 |
| VII. | ADDITIONAL UNDERTAKINGS | 27 |
| A. | PASS THROUGH COSTS | 27 |
| B. | BULK PURCHASES | 28 |
| C. | FUEL | 28 |
| D. | UNIFORMS | 28 |
| E. | PASSES AND REDUCED RATE TRAVEL | 28 |
| F. | ENVIRONMENTAL | 28 |
| VIII. | RATES PAYABLE TO CONTRACTOR | 29 |
| A. | RATES | 29 |
| B. | MARKUP | 31 |
| C. | OPERATING GOALS | 31 |

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iii

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| | | |
|:---|:---|:---|
| D. | WIRE TRANSFER AND RECONCILIATION | 34 |
| IX. | FEES PAYABLE TO UNITED | 35 |
| A. | GOVERNMENT ASSISTANCE | 35 |
| X. | MAINTENANCE AND FUELING | 35 |
| XI. | U.S. MAIL | 35 |
| XII. | INSURANCE | 36 |
| A. | INSURANCE TYPES | 36 |
| B. | 30-DAY NOTICE | 36 |
| C. | ALTERATIONS | 36 |
| D. | FAILURE TO MAINTAIN INSURANCE | 36 |
| XIII. | LIABILITY AND INDEMNIFICATION | 37 |
| A. | EMPLOYER'S LIABILITY AND WORKERS' COMPENSATION | 37 |
| B. | INDEMNIFICATION BY CONTRACTOR | 37 |
| C. | INDEMNIFICATION BY UNITED | 37 |
| D. | CONTRACTOR'S SUPPLIES LIABILITY | 38 |
| E. | INDEMNITY FOR INFORMATION | 38 |
| F. | CERTAIN DEFINITIONS | 38 |
| XIV. | REPORTS | 39 |
| A. | BOARDING INFORMATION | 39 |
| B. | OPERATING PERFORMANCE | 39 |
| C. | CORPORATE AUDIT | 39 |
| D. | FINANCIAL STATEMENTS | 39 |
| E. | BENCHMARKING | 40 |
| F. | GOVERNMENT FILINGS | 40 |

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iv

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| | | |
|:---|:---|:---|
| XV. | INDEPENDENT CONTRACTORS AND UNAUTHORIZED OBLIGATIONS | 40 |
| A. | INDEPENDENT CONTRACTORS | 40 |
| B. | EMPLOYEES | 41 |
| C. | UNAUTHORIZED OBLIGATIONS | 41 |
| D. | CONTRACTOR OPERATED FLIGHTS | 41 |
| XVI. | DEFAULT AND TERMINATION | 42 |
| A. | OPERATIONS DEFAULT | 42 |
| B. | COVENANT DEFAULT | 42 |
| C. | DEFAULT BY CONTRACTOR | 43 |
| D. | SIMILAR AGREEMENTS | 43 |
| E. | NON-COMPLIANCE WITH STANDARDS | 43 |
| F. | CONSEQUENCES OF TERMINATION | 43 |
| H. | RESTRICTED ACTIONS | 44 |
| I. | CALL OPTION | 44 |
| XVII. | ASSIGNMENT, MERGER AND ACQUISITION | 47 |
| A. | ASSIGNMENT | 47 |
| B. | MERGER | 47 |
| C. | ACQUISITION | 47 |
| XVIII. | CHANGE OF LAW | 48 |
| XIX. | TAXES, PERMITS AND LICENSES | 49 |
| A. | TRANSACTION TAXES | 49 |
| B. | PAYROLL TAXES | 49 |
| C. | PERMITS AND LICENSES | 49 |
| XX. | REVIEW | 49 |

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v

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| | | |
|:---|:---|:---|
| XXI. | JURISDICTION | 50 |
| XXII. | NOTICES | 50 |
| XXIII. | APPROVALS AND WAIVERS | 51 |
| XXIV. | GOVERNING LAW | 51 |
| XXV. | CUMULATIVE REMEDIES | 51 |
| XXVI. | FORCE MAJEURE | 51 |
| A. | FORCE MAJEURE | 51 |
| B. | EFFECT ON MARKUP | 52 |
| C. | FIXED AND OVERHEAD REDUCTION | 52 |
| XXVII. | SEVERABILITY AND CONSTRUCTION | 52 |
| XVIII. | ACKNOWLEDGMENT | 52 |
| XXIX. | CONFIDENTIALITY | 52 |
| XXX. | RELATED AND THIRD PARTY AGREEMENTS | 53 |
| XXXI. | ENTIRE AGREEMENT | 53 |
| XXXIII. | REFERENCES TO TIME PERIODS | 53 |
|  APPENDIX A | APPENDIX A | 55 |
|  APPENDIX B | APPENDIX B | 56 |
|  APPENDIX E | APPENDIX E | 59 |
|  DEFINITIONS | DEFINITIONS | 61 |
|  APPENDIX F | APPENDIX F | 65 |
|  APPENDIX G | APPENDIX G | 66 |
|  APPENDIX H | APPENDIX H | 68 |
|  APPENDIX I | APPENDIX I | 69 |
|  APPENDIX J | APPENDIX J | 77 |

---

vi

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**UNITED EXPRESS<sup>®</sup> AGREEMENT** 

This Agreement between United Airlines Inc. ("United") and Shuttle America Corp. ("Contractor") dated as of December 28, 2006, (a) amends and supercedes the United Express<sup>®</sup> Agreement between United and Republic Airline Inc., dated as of February 13, 2004, as previously amended (the "Republic Agreement") and (b) amends and supercedes the United Express<sup>®</sup> Agreement between United and Shuttle America Corp, dated as of February 13, 2004 as previously amended (the "Shuttle America Agreement")

WITNESSETH:

WHEREAS, United holds a certificate of public convenience and necessity issued pursuant to the Federal Aviation Act of 1958 authorizing United to engage in air transportation of persons, property and mail, and is a major airline providing scheduled air service in both national and international markets;

WHEREAS, Contractor is an air carrier holding a certificate of public convenience and necessity to be issued pursuant to the Federal Aviation Act of 1958 that will authorize it to engage in air transportation of persons and property and provide high frequency, short-haul scheduled service in particular regions;

WHEREAS, United owns various trademarks, service marks, trade names, logos, emblems, uniform designs and distinctive exterior and interior color decor and patterns for its aircraft, including, but not limited to, the service mark United Express (hereinafter referred to individually and collectively as **"United Marks"** or **"Marks"**);

WHEREAS, United has entered into agreements with several regional carriers to provide air transportation services under the United Express mark for city pairs where it is generally uneconomic for United to operate such services;

WHEREAS, United will provide Contractor, pursuant to the terms of this Agreement, a non- exclusive license to use one or more of the United Marks in connection with Contractor's United Express Services.

NOW, THEREFORE, in consideration of the foregoing premises, mutual covenants and obligations hereinafter contained, the parties agree as follows:

**I.** **DEFINITIONS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. "Aircraft Used in United Express Service"** means any type and amount of aircraft set forth in Appendix B.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. "Apollo Services"** means the computerized Apollo Reservations and Ticketing Service (or any similar or substitute service offered by or on behalf of United), which performs flight, hotel, rental car and other travel related services, reservations and ticket issuance functions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. "Carrier Controlled Costs"** means those types and categories of costs deemed within the control of Contractor as provided in Appendix E.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D. "Contractor's United Express Services"** means the services or operations provided and maintained by Contractor in connection with providing scheduled air transportation service as a United Express Carrier and related ground and other services to United and its affiliates pursuant to the terms of this Agreement (including, without limitation, the services required under Article IV).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E. "Default"** means, individually or collectively, a Section A Default, a Section B Default, a Section C Default, a Section D Default, or a Section E Default, each as defined in Article XVI.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**F. [Intentionally Omitted]** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**G. "Effective Date" means February 13, 2004.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**H. "Environmental Laws"** means all federal, state, local and foreign laws and regulations, and airport rules, regulations and policies relating to pollution or the environment, including, without limitation, laws and regulations relating to emissions to the air, discharges to surface and subsurface waters, safe drinking water, the storage, release, disposal, transport or handling of chemicals, pollutants, contaminants, wastes, hazardous substances, petroleum and petroleum products, and aircraft noise, vibration, exhaust and overflight.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**I. "Ground Handling"** means the provision of duties applicable to one or more of the following: (1) customer service ticket counter, (2) customer service gates (3) ground handling ramp, including mail and freight, (4) gate receipt and dispatch; all in accordance with United Express Service Standards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**J. "Joint Location" means any airport terminal where Contractor provides Contractor's United Express Services pursuant to this Agreement and both United and Contractor have employees stationed.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**K. "Marks" or "United Marks"** shall have the meaning set forth in the recitals of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**L. "Pass Through Cost"** means those type and categories of costs deemed not to be within the control of Contractor, as specified in Appendix E.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**M. "Rates"** shall have the meanings set forth in Article VIII.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**N. "Related Agreements"** shall have the meaning set forth in Article XXX

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**O. "Revenue Passenger"** means each passenger traveling on Contractor in connection with Contractor's United Express Services who holds a ticket (electronic or otherwise), flight coupon, voucher or other form of document that (i) entitles that passenger to board an aircraft and (ii) is issued pursuant to or in connection with a published or unpublished fare. Passengers traveling on a purchased ticket (including ID50 airline industry reduced rate tickets), wholesaler voucher, or voucher issued as denied boarding compensation, shall be considered to be Revenue Passengers. In addition, passengers traveling on a free ticket as (or as part of) a Mileage Plus<sup>®</sup> award or a free ticket issued in conjunction with a two- for-one fare or other similar fare established by United, shall be considered to be Revenue Passengers. A passenger traveling on any other type of free or service charge-based ticket, including, but not limited to, a site inspection ticket, or wholesaler compensation ticket, any travel agent or wholesaler traveling on a positive space or space available ticket, and any employee of United, Contractor or any other carrier traveling on either a positive space or space available ticket, shall not be considered a Revenue Passenger. All Revenue Passengers shall be considered when calculating any Monthly Incentive Payment.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**P. "Support Services"** means those activities set forth in Article III which are related to the operation of airline services except during flight.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Q. "Termination Date"** shall mean, with respect to the Article II specified aircraft types and ground operations, the applicable expiration, removal, or cancellation dates set forth in Article II.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**R. "United Express Best Practice Operating Performance"** means for each of the four operating performance metrics outlined in Article VIII.C, the simple average of the calendar year's twelve operating performance levels (or results) generated by using the best operating performance attained (whether "best" is the highest or the lowest, as applicable) for each performance metric of all United Express Carriers in each month.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**S. "United Express Carrier"** means an air carrier which has been contractually given a non- exclusive license to use the mark United Express and one or more other United Marks in connection with providing air transportation service to United pursuant to an agreement between United and such air carrier.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**T. "United Express Service Standards" or "Service Standards"** means the procedures prescribed by United that describe United's approved standards, policies, requirements and procedures for various activities relating to the provision of air transportation services. These Service Standards are provided in Appendix I.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**U. "United Location"** means any airport terminal facility where Contractor and United both have operations and United, but not Contractor, has employees stationed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**V. "United's Actual Cost"** means any and all costs or expenses actually incurred by United, not including any markup by United, any allocation of administrative or overhead expenses, or any administrative service charge imposed by United.

**II.** **SCOPE, TERM, AND CONDITIONS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. SCOPE** 

The scope of this Agreement pertains to the type and amount of Contractor's aircraft set forth on **Appendix B** hereto, and as such, operations may be amended in accordance herewith from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. TERM** This Agreement is effective as of the Effective Date, and shall terminate with respect to the applicable aircraft types and amounts as set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Regional Jets Term.** For any ERJ-170 regional jet aircraft subject to this Agreement, the aircraft shall be divided into two (2) tranches. The term of this Agreement for the first ERJ tranche (the first eight aircraft delivered) shall expire on June 30, 2014. The term of the Agreement for the second ERJ tranche (the next [\*\*\*] aircraft) shall expire on June 30, 2015.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. CONDITIONS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Renewal Option for Regional Jets**. Upon expiration of the term of this Agreement for each tranches of ERJ aircraft as described in **Article II.B.1**, United may renew the term for all or none of the ERJ aircraft covered under the terms of this Agreement, for an additional term of five (5) years or less, by providing written notice to Contractor by no later than December 31, 2012 which notice shall specify the period of the renewal term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **[INTENTIONALLY OMITTED]**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Ground Operations**. Contractor agrees to be ground handled by ground service providers of United's choosing. Notwithstanding this, Contractor's incentive goals will be based on the operating performance at all stations for which it provides air service. United shall issue a Standards of Service document to all ground service providers, which will outline United's expectations for the ground service provider's responsibilities, duties, and processes and procedures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **Pilot Consideration for 70-seat Regional Jet Employment for Furloughed United Pilots**. Contractor acknowledges that United has been required to furlough some of its pilots over the past several years. As additional consideration, Contractor has agreed to provisions outlined in Letter Number 03-22, "Job Opportunities for Furloughed United Pilots" between United and the Air Line Pilot Association dated August 21, 2003, the express terms of which are incorporated herein by reference. United retains the right to recall furloughed pilots hired by Contractor. Any additional expenses borne by Contractor due to (a) incremental wages that must be paid to furloughed pilots and (b) incremental training expenses (determined in the manner specified below) will be reimbursed by United. Incremental training expenses for furloughed United Pilots, which shall be determined at the end of each calendar quarter during the term of this Agreement, shall be the remaining unamortized prorated portion of training expenses (which the parties agree shall be [\*\*\*] per pilot) for any furloughed pilot that is recalled within 24 months of that furloughed pilot's commencement of work with Contractor. United agrees that it shall provide Contractor at least 90 days prior notice before it recalls furloughed United pilots employed by Contractor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D. BANKRUPTCY PROVISION** 

Except as provided in this paragraph, United's obligations under this Agreement shall be allowable post-petition, administrative expense obligations of United's bankruptcy estate under Section 503 of the Bankruptcy Code. If United breaches this Agreement before the effective date of its plan of reorganization, Contractor shall have, subject to objection as provided below, allowed post- petition administrative expense claims as provided in the Bankruptcy Code. In addition, and notwithstanding the foregoing, this Agreement shall be terminated upon the happening of either of the following events: (i) United's plan of reorganization (the "Plan") in its Chapter 11 bankruptcy case (the "Case") under which United continues to operate as an airline is not confirmed by the Bankruptcy Court and United discontinues all or substantially all flight operations, or (ii) the Case is dismissed or converted to a case under Chapter 7 of the Bankruptcy Code and United suspends or discontinues flight operations. In the event of such termination, United shall be deemed to have breached the Agreement as of the effective date of such termination (the "Breach Date") and Contractor shall have, subject to objection as provided below, allowed administrative expense claims (the "Claims") (a) for any obligations of United under this Agreement arising before the Breach Date, provided, however, that this administrative expense claim shall

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be limited to actual services rendered at the contract rate and shall not include any claim for future damages or lost profits resulting from such termination, (b) for any amounts paid or required to be paid by Contractor (i) to United Express passengers, (ii) under interline and clearinghouse agreements and (iii) to Contractor's United Express employees in each case for which Contractor has not already been reimbursed by United; (c) for any sums paid or required to be paid by Contractor to third parties in connection with the manufacture, purchase, lease or financing of aircraft undertaken as part of Contractor's commitments under this Agreement and any maintenance equipment or services or spare parts associated with such aircraft , including, but not limited to, deposits, down payments, prepayments and financing and similar fees; (d) for two year's aircraft ownership costs, calculated as provided in Section VIII.A.8 for each aircraft as to which Contractor has taken delivery prior to the Breach Date, provided that if Contractor is able to utilize such aircraft in some other manner then United will only be responsible for the variance between the cost stated in section VIII.A.8 and the aircraft ownership costs recovered by Contractor during such two year period in connection with such utilization; (e) for [\*\*\*] in respect of Contractor's reasonable startup costs and expenses such as pilot training expenses and certification costs; provided, however, that Contractor shall take commercially reasonable actions to mitigate its damages from the the categories of activities set forth in clauses (a) through (d) above upon a termination of this Agreement. All of Contractor's obligations to United under the Agreement shall immediately terminate as of the Breach Date. Any party in interest, including United, shall retain the right, during the normal claims objection process, to object to the amount (but not the administrative claim character or priority) of any claim filed by Contractor except with respect to the damages set forth in clause (e) above. In addition, subject to Contractor's rights of setoff and recoupment under Section 553 of the Bankruptcy Code, Contractor agrees to refund to United any amounts prepaid on account of services to be performed after the Breach Date by Contractor or its agents pursuant to this Agreement, but only to the extent such services are not subsequently performed upon request of United and that Contractor realizes an actual savings by not performing such services. United agrees to file and diligently prosecute a motion seeking bankruptcy court approval of the terms and conditions of this Agreement. In the event United does not obtain such bankruptcy court approval in an order in form and substance satisfactory to Contractor by no later than March 19, 2004, Contractor shall have the right to terminate this Agreement. Unless waived by United, Contractor must make such termination decision by March 23, 2004.

**III.** **SUPPORT SERVICES AND FACILITIES** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. GENERAL** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Support Services.**

United and Contractor will provide Support Services and facilities to the extent and in the manner set forth in the subsequent provisions of this **Article III**. All such Support Services and facilities set forth in this **Article III** will be furnished only with respect to Contractor's United Express Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Approval of Support Services.**

United reserves the right to approve or disapprove the implementation of any Support Services or facilities offered to Contractor for Contractor's United Express Services by any third party at any location. Such approval shall not be unreasonably withheld.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. SPECIAL SUPPORT SERVICES** 

In addition to other services to be made available to or provided to Contractor pursuant to this Agreement, and as summarized in and in accordance with **Appendix C** (Ground Handling) and **Appendix D** (Contractor Support Services), United agrees that it or its designees will provide and Contractor agrees to use the following services and facilities for Contractor's United Express Services, be they provided by United or its designee:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Use of the United Designator Code**. All scheduled air transportation provided by Contractor as a part of Contractor's United Express Services will be displayed by United in Apollo Services, the Official Airline Guide ("**OAG**") and all other computerized reservations systems, using the appropriate United designator code, **"UA" or "UA\*,"** and a flight number within a range of flight numbers assigned by United.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Use of Apollo Services.** In providing Contractor's United Express Services, Contractor will only use Apollo Services, including United's automated check-in, United's ticketing (including United's electronic ticketing service, E-TicketSM) and boarding passes, advance seat reservation system and United's automated baggage tag printing and baggage tracing systems.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Participating in United's Mileage Plus<sup>®</sup> Program**. At United's discretion, all passengers with paid tickets traveling on a flight segment included in Contractor's United Express Services, whether or not in conjunction with a United flight segment, will be awarded mileage credits for United's Mileage Plus Program or any other frequent flyer program as specifically approved by United. Contractor shall not participate in the frequent traveler program of any other carrier in connection with Contractor's United Express Services, unless otherwise mutually agreed between United and Contractor in writing. United has sole discretion concerning decisions relating to accrual or redemption of award travel on Contractor's United Express flights. In addition, United will bear the cost of providing redemption travel and receive all revenue and benefits from the sale of frequent flyer credits (e.g. miles) related to Contractor's United Express service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **[Intentionally omitted.]**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **Customer Service Training**. On a schedule, at a place, to an extent, for a number of persons, and in a manner determined by United, United will provide training for Contractor's instructors that United deems sufficient to permit Contractor's instructors to be able to provide and train others to provide customer services for Contractor's United Express Services. Contractor will have no obligation to pay United for such training. However, Contractor agrees to adhere to the United Express Service Standards as outlined in **Appendix I** for all Customer Service of their United Express flights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. COMMUNICATIONS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Telephone and Data Lines**. United, at its expense, will provide and maintain or arrange for the provision of reservations telephone lines connecting the cities served by Contractor in connection with Contractor's United Express Services with United's Reservations Centers. United, at its expense, will establish, operate and maintain or arrange for the provision of the data circuits from Contractor's mutually agreed upon locations linking the United-approved data processing equipment at those locations with Apollo Services. United, at its expense, will also provide and arrange for Contractor's SOC Communication with Apollo Services. United will determine, at its sole discretion, the necessity and feasibility of installing all such communications equipment. All other telephone expenses, such as Contractor's long distance expenses shall be borne by Contractor as a station operating expense.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Protection of Circuits**. Contractor will take all necessary precautions to protect the data circuits provided for Contractor's use pursuant to this Agreement by United or its designee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D. RESERVATIONS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Reservations Functions.** United agrees to provide, at its expense, the following reservations functions for Contractor's United Express Services:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Answering reservations telephones, providing information regarding schedules and fares, making bookings and providing other services normally associated with airline reservations services in accordance with United's established procedures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Providing personnel so that telephone calls are answered at a service level determined by United.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Answering all calls terminating on specified telephone lines as United or United Express, at United's option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. To the extent practicable, re-accommodating and notifying passengers of confirmation on United, Contractor and other airlines and clearance from wait-list.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Reviewing and processing inbound prepaid ticket advices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Providing reservations services to the hearing impaired via a special telephone number during normal business hours.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. Comply with DOT disclosure requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Apollo Services Activities**. Contractor agrees to use Apollo Services for the following activities for Contractor's United Express Services, which are to be provided by United:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Establishment, maintenance, display and change of passenger name records (PNRs).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Confirmation of passengers against seat inventory on Contractor's United Express Services and United's scheduled flights and on other airlines where flight availability is maintained in Apollo Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Maintenance of seat availability for Contractor's United Express Services scheduled flights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Transmission of availability status messages (AVS) for Contractor's United Express Services scheduled flights to other airlines with which United has an agreement in accordance with Standard Industry Passenger Procedures (SIPP).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Process inbound reservations messages received from ARINC addressed to Contractor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Routing of all inbound messages received from ARINC, other than as stated in **Article III.D.2.e** above, to a computer message queue.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **CRS Fees**. Computer Reservations System fees ("**CRS Fees**") charged to Contractor as a result of passengers booked on Contractor's United Express service will be direct billed to and payable by United.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **Travel Agent Commissions**. United will be responsible for and shall pay directly all travel agent commissions charged in connection with the sale of tickets or other services on Contractor's United Express Service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E. OPERATIONS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Scheduled Service Update.** Following the departure of a Contractor's United Express flight the Contractor will provide accurate updates of its flights' planned and actual departure and arrival times (including updates of irregularities) in Apollo Services as soon as the planned flight schedule is changed and the flight departs and arrives or suffers an irregularity. Specifically, this includes updating via ACARS or if ACARS is malfunctioning via a mutually agreed upon manual process the out, off, on and in times for the aircraft within [\*\*\*] minutes of the occurrence of each event. In the event of a Contractor's controllable flight delays, cancellations or other schedule irregularities affecting Contractor's United Express Service flights, and as soon as information concerning such irregularities is available, Contractor shall update Apollo Services and, when requested by United, notify the designated United organization. On board delayed flights, Contractor shall provide updates to Customers in no less than [\*\*\*] minute intervals. For purposes of this Agreement, such scheduled and actual departure and arrival and irregularity information shall be known as "FLIFO." United will notify Contractor in writing as soon as practicable after United determines that Contractor has failed to update FLIFO in a timely and accurate manner. If Contractor fails [\*\*\*] times in any consecutive [\*\*\*] period (the "FLIFO Threshold") to update FLIFO in a timely and accurate manner as soon as it becomes evident to Contractor that a schedule deviation shall take place, then upon notification by United to Contractor, Contractor shall pay United damages of [\*\*\*] for each occurrence over and above the first [\*\*\*] occurrences during such [\*\*\*] period United agrees to bill Contractor any amount owed under this Section within [\*\*\*] after the end of each calendar [\*\*\*] period during which Contractor has exceeded the FLIFO Threshold. Such damages shall be United's exclusive remedy for Contractor's non-compliance with this paragraph and may be collected by setoffs against other amounts owed by United to Contractor hereunder. Contractor shall not be responsible for any costs or failure by the Ground Handlers to update FLIFO information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Denied Boarding (Payload Range Restrictions).** Contractor is required to provide to United, upon specific written request from United, specific station best estimates regarding the weight restrictions and aircraft limitations, which could reasonably be expected to routinely result in denied boardings. Such requests shall be made by United's Revenue Management Department (WHQIM) and responses from Contractor shall be provided within two (2) weeks of such request. In the event Contractor fails to respond to such requests or such responses are materially inaccurate, United reserves the right to bill Contractor, and Contractor shall reimburse United, for denied boarding expenses resulting from weight restrictions relating to such failure to respond or materially inaccurate response.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **No Flight Dispatch Duty.** Contractor will be solely responsible for, and United will have no obligations or duties with respect to, the dispatch of Contractor's flights. For the purposes of this Article III, the term "dispatch" will include, but will not be limited to, all planning of aircraft itineraries and routings, fueling and flight release.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **Compliance with Statutes.** Contractor hereby represents, warrants and covenants that all air transportation services performed by it pursuant to this Agreement or otherwise will be conducted in full compliance with all applicable statutes, orders, rules and regulations, whether now in effect or hereafter promulgated, of all governmental agencies having jurisdiction over Contractor's operations, including, but not limited to, the Federal Aviation Administration ("FAA") and the Department of Transportation ("DOT"). Contractor's compliance with such governmental statutes, orders, rules and regulations will be the sole and exclusive obligation of Contractor and United will have no obligation, responsibility or liability, whether direct or indirect, with respect to such matters except as otherwise expressly provided herein. Additionally, Contractor will comply during the term of this Agreement with the United/United Express Safety Standards, as described on Appendix H.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **Weather Information Service.** From time to time and upon the request of Contractor or its flight crews, United may furnish Contractor's flight crews with such U.S. Weather Bureau information or data as may be available to United; provided that (i) in furnishing any such weather information or data to Contractor, neither United nor its employees or agents will be responsible or liable for the accuracy thereof and, (ii) any and all costs or expenses associated with such weather information or data are carrier controlled costs and will be paid by Contractor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **Diversions.** United will pay Contractor for all diversions completed within [\*\*\*] hours of the scheduled arrival time based on the actual block hours flown from the original departure city to the diversion point and from the diversion point to the original destination city. A diversion flight will also be considered completed if the passengers arrive at the scheduled arrival city within [\*\*\*] hours of the scheduled arrival time via ground transportation from the diversion point to the original destination city. The cost of busing to the originally scheduled airport will be borne by Contractor. Contractor will use its best efforts to assure that no bus segment exceeds 100 air miles as defined in the Apollo mileage database. United will pay Contractor for a diverted flight that is completed via ground transportation based on the original scheduled block hour time for that segment. In the event a diverted flight is not completed within the [\*\*\*] hour time frame, no payment is due for the diverted flight segment (e.g. flight segment will be excluded from the monthly operating statistics used in calculating payments to Contractor). In addition, United will not pay any costs associated with aircraft repositioning.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **Ground Delay Program.** Contractor will participate in United's ground delay program, which stipulates that United may request Contractor to cancel, and Contractor shall cancel, flights to free ATC slots at a hub when the FAA or United's Station Control Center has initiated a Ground Delay Program ("GDP"). For cancellations requested by United as part of the GDP, and in accordance with Article VIII, United shall pay Contractor only a portion of the amounts normally due had the flights not been cancelled. United will pay [\*\*\*] of the Completed Block Hour and Completed Departure rates (Carrier Controlled Costs only). All payments will be based upon the scheduled block hours and departures for such scheduled flights. No payments will be made with respect to Pass Through Costs in these categories. (e.g. fixed overhead).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **Significantly Delayed Flights.** In the event that Contractor operates a flight more than [\*\*\*] hours late from the scheduled departure time with a revenue passenger load factor of less than [\*\*\*], OR, more than [\*\*\*] hours late with [\*\*\*] revenue passengers ("Significantly Delayed Flight"). Contractor shall not be reimbursed for such flight (e.g. flight segment will be excluded from the monthly operating statistics used in calculating payments to Contractor). United and Contractor will make good faith efforts to establish a process by which Contractor may solicit and receive United's concurrence to be paid for an otherwise Significantly Delayed Flight.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **Station Operations Center (SOC) – Hub Locations.** At United's request and expense (and not included in the rates outlined in Appendix E), Contractor will provide adequate staffing in the United Airlines SOC of each designated hub city. If the number of departures in any single hub city exceeds [\*\*\*] per day, Contractor will provide a full-time representative at United's request and at United's expense (in additional to the rates outlined in Appendix E). Such staffing will be provided during all normal hours of operation. If the number of daily departures does not exceed [\*\*\*] per day, then Contractor will provide a point of contact and make a representative available on a limited basis as requested by United.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**F. STATION SUPPORT SERVICES** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. If United would like Contractor to provide station support services Contractor will provide a bid for these
services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Contractor agrees to be ground handled by ground service providers of United's choosing provided that the
ground handler complies with Contractor's procedures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. United shall issue a Standards of Service document to all ground service providers, which outline United's
expectations of the ground service providers responsibilities, duties and processes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Contractor agrees to participate in the creation of United Express Regional Ground Operations Manual and will
subsequently seek acceptance of the manual from the FAA as Contractor's own ramp handling procedures. Within a reasonable period of time, Contractor will obtain approval from the FAA and will participate in the current United Airlines Deicing
Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Contractor is required to participate in CORA and United will be responsible for slot management of
Contractor's United Express flights

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**G. TARIFFS AND SCHEDULE PUBLICATION** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **General.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. United shall have the sole right and power to establish and modify, from time to time, the fare/rate classes and fare/rate levels (including through fares) and fare/rate descriptions for all Contractor's United Express Services in the city pairs operated by Contractor under this Agreement, in a manner consistent with pricing (including joint fares) established by United. United shall comply with applicable governmental regulations pertaining to public disclosure of fares, rates and rules tariffs and shall pay for any fines or civil penalties incurred by Contractor as a result of violations by United thereof, and for the cost of defense of such claims of violations including the cost of defending or negotiating the terms of a consent order or decree.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Passenger Fare Tariffs.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. United shall be entitled to 100% of the fares and prorates received by United or Contractor in connection with any fares attributable to passengers who travel on Contractor's United Express Services. All passenger fare tariffs published for Contractor's United Express Services shall be included as part of United's tariffs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Contractor shall notify the Airline Tariff Publishing Company or any successor company performing the same or equivalent services (**"ATPCO"**) that United is authorized to supply, modify or withdraw such rates with ATPCO. United may file changes to such fares from time to time with ATPCO as UA fares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Air Freight and Mail Rates.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. For all markets operated by Contractor under this Agreement, United shall have the sole right and power to establish and modify from time to time all air freight and cargo rates and mail rates covering mail, general commodity, Small Package Dispatch <sup>TM</sup> (SPD) and priority air freight shipments and all other air transportation services (other than mail delivery) for Contractor's United Express Services in these markets. All such airfreight rates for Contractor's United Express Services shall be included as part of United's airfreight and cargo rates tariffs. Contractor shall notify ATPCO that United is authorized to supply, modify or withdraw such rates with ATPCO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. United shall be entitled to 100% of the fares and prorates received by United or Contractor in connection with any fares attributable to mail or freight shipped on Contractor's United Express Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **Timetables.** United will reflect Contractor's United Express Services in computerized reservations systems, United's internal reservations system and Contractor's United Express Services flight connections to United will be listed as UA connections. United will provide information such that references in computerized reservations systems and United's internal reservations system to Contractor's United Express Services will also contain notations indicating that such services are performed by Contractor as an independent contractor under the appropriate United Marks. A similar notation will be made in the OAG or any successor publication commonly used by the airline industry for the dissemination of schedule information. Such notations shall comply with all applicable regulations of DOT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**H. ADVERTISING AND PROMOTIONS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Travel Certificate Program.** United will allow Contractor to accept, and Contractor agrees to accept, United/United Express Amenities, Promotional Discount(s) and/or Free Travel Certificates on Contractor's United Express flight segments, whether or not such Amenities, Promotional Discount(s) and/or Free Travel Certificates are in conjunction with a United flight segment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Right to Advertise Using Marks.** To the extent Contractor is licensed to use the Marks, Contractor may in its capacity as a United Express Carrier and at its sole expense, with no reimbursement from United, use the marks to advertise Contractor's United Express Services. However, any and all such advertisements using one or more of the United Marks will identify United as the owner of those United Marks (including in any state company name registrations required of Contractor), and to the extent that any Mark is registered, will so specify. Notwithstanding the above, no advertisement, solicitation, document or other material using any United Mark will be published or otherwise

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promulgated without United's prior inspection and approval. No advertising that relates in any way to United, United Express or Contractor's United Express Services will be placed by Contractor with an outside advertising agency unless United has given its prior consent regarding copy, layout and the specific media plan. In addition, where United has agreed to share the costs of any such advertising, Contractor will obtain the prior consent of United regarding the funds to be expended for such advertising.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Prior Approval of United.** Contractor agrees that it will not use (or attempt to register) any United trade name or service mark, including, but not limited to, the names "UNITED AIR LINES, INC.," "UNITED AIRLINES," or "UNITED," or United's logo in any advertising, or other document or material without first obtaining United's prior approval of each such use.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**I. AUTOMATION** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Use and Protection.** When Contractor uses internal United Apollo Services automation, Contractor agrees to comply with and abide by all terms and restrictions imposed by United on the use of Apollo Services and associated Automation Equipment, as defined below. Contractor agrees that all instructions, procedures and manuals provided by United in connection with Contractor's use of Apollo Services and Automation Equipment ("Automation Information") are and will remain the property of United. Contractor acknowledges that Apollo Services contains software, which is confidential and proprietary information of United or its affiliates (such as Galileo International) or any successor thereto. Contractor further agrees that it will not (or cause any third party to) duplicate, copy or otherwise reproduce any such software or Automation Information or furnish or disclose any such software or Automation Information to any other party or to Contractor's employees other than such employees who have a need to know and who are aware of and understand the confidential and proprietary nature of the software and Automation Information unless mandated by the government.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Installation and Training.** United shall install or cause to be installed a minimum of one terminal plus associated equipment for printing messages, data, air tickets, boarding passes and baggage tags ("Automation Equipment") at Contractor's airport locations and selected administrative locations. United will determine, in the exercise of its sole discretion and judgment, the necessity and feasibility of installing and upgrading Automation Equipment, so long as the quantity and quality of Automation Equipment installed at Contractor's airport locations are sufficient to permit Contractor to satisfy the standards for Contractor's United Express Services under this Agreement. Any and all modifications, enhancements, improvements or developments pertaining to the Automation Equipment, or other new related technology, may be made available to Contractor by United, in its sole discretion, under terms and conditions to be determined by United on a case-by-case basis. United will train Contractor's instructors, as applicable, in the proper use of Apollo Services and Automation Equipment as described in the Customer Service/Reservations Handbook or any other related United guidelines. Contractor agrees to establish a training program with internal instructors. Only qualified personnel who have satisfactorily completed a United prescribed training program will be permitted to operate any Automation Equipment (hereinafter "Designated Users"). United may, at its discretion, monitor or test the proficiency level of Designated Users. If United determines that their proficiency levels are insufficient for the proper use of the Automated Equipment or Apollo Services, then Contractor must arrange for its Designated Users to undertake any further training which United determines necessary to bring such Designated Users to the desired proficiency level.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Standards of Use.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. To maintain an effective interconnection between Apollo Services and the Automation Equipment and to prevent misuse thereof, when Contractor uses Apollo Services and the Automation Equipment, Contractor must use and operate these (a) in strict accordance with operating instructions provided by United or its affiliates in the Customer Services Policies and Procedures, United's Computer Security Regulations, and any other related United or affiliate guidelines, and (b) solely for the performance of the specific business functions designated by United. Any undesignated business use and all non-business uses are strictly prohibited. Prohibited uses include, but are not limited to, personal messages, servicing subscribers, travel agencies, or any other third party, training any other party or any other use designated as prohibited in the Apollo Services Manual. Contractor will maintain a list of all employees and agents who have access to Apollo Services and their assigned file numbers and passwords. United may at any time deny access to Apollo Services to any employee of Contractor if such employee is found by United to have abused Apollo Services or the Automation Equipment. Contractor will take all precautions necessary to prevent unauthorized operation or use of Apollo Services and the Automation Equipment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Contractor will not alter or change the Apollo Services display as provided by United or its affiliate without the written consent of United. Contractor may not provide Apollo Services or its database to any other person or entity without the written consent of United.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Except as expressly permitted in this Agreement or other written agreement with United, Contractor will not cause any Apollo Services (including, but not limited to, its software, data bases, intellectual property, and customer information) to be used (as a basis for any software development or otherwise), commercially exploited, copied, redistributed, retransmitted, published, sold, rented, leased, marketed, sublicensed, pledged, assigned, disposed of, encumbered, transferred, or otherwise altered, modified or enhanced, without the express written permission of United.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Contractor will not engage in any speculative booking or reservation of space for any airline, hotel, rental car company, or any other vendor's service or product available through Apollo Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **Maintenance, Repair and Modification.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. United will provide or cause to be provided to Contractor repair and maintenance services required for the Automation Equipment at United's expense. To maintain an effective interconnection between the Automation Equipment and Apollo Services and to preserve the functional integrity of the Automation Equipment, neither Contractor nor any third party, other than a third party designated by United, will perform or attempt to perform maintenance, repair work, alterations or modifications, of any nature whatsoever, to the Automation Equipment. Contractor will provide free positive space travel on Contractor's United Express flights for United's Computer Terminal Technicians or replacements when such travel is for the purpose of repairing Apollo Services or any Automation Equipment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Contractor will reimburse United for the costs of any such repairs or maintenance attributable to Contractor's willful misconduct, gross negligence, or persistent, negligent acts or omissions.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. United or its designee will have the right to enter upon any Contractor location during Contractor's business hours for the purpose of monitoring Contractor's operation of the Automation Equipment and Apollo Services, inspecting the Automation Equipment, performing such repairs or maintenance as may be necessary or removing the Automation Equipment; provided, however, that United will not during the course of such monitoring, inspection, repair, or removal unreasonably interfere with Contractor's business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **Downtime.** United will notify Contractor of any scheduled or pre-announced downtimes of Apollo Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **No Warranty; Release.**

UNITED MAKES NO WARRANTY, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION, ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO THE AUTOMATION EQUIPMENT OR APOLLO SERVICES.

CONTRACTOR HEREBY WAIVES AND RELEASES UNITED AND ITS AFFILIATES, AND THEIR SUCCESSORS FROM ANY AND ALL OTHER OBLIGATIONS AND LIABILITIES AND ALL RIGHTS, CLAIMS AND REMEDIES OF CONTRACTOR AGAINST UNITED OR ITS AFFILIATES, EXPRESS OR IMPLIED, ARISING BY LAW OR OTHERWISE, DUE TO ANY DEFECTS, ERRORS (INCLUDING, WITHOUT LIMITATION, ANY ERRORS IN RESERVATIONS AVAILABILITY RECORDS), MALFUNCTIONS OR INTERRUPTIONS OF SERVICE TO APOLLO SERVICES OR THE AUTOMATION EQUIPMENT, INCLUDING ANY LIABILITY, OBLIGATION, RIGHT, CLAIM OR REMEDY IN TORT, AND INCLUDING ANY LIABILITY, OBLIGATION, RIGHT, CLAIM OR REMEDY FOR LOSS OF REVENUE OR PROFIT OR ANY OTHER DIRECT, INDIRECT, INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES.

Contractor shall not be liable for, and United releases Contractor from, any liability for any flight cancellation or delay, to the extent it results from any malfunction in or interruption of Apollo Services or the Automation Equipment; and, notwithstanding any other provision hereof, no such cancellation or delay shall be included in any performance calculation relating to operating goals except for occasions to the extent such failure is the result of Contractor's own misuse or negligence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **Ownership and Liens.** It is understood and agreed that: (i) all Automation Equipment will remain the sole property of United; (ii) Contractor will not remove any identifying marks from any Automation Equipment; (iii) Contractor will not subject the Automation Equipment to any lien or encumbrance; and (iv) Contractor will return the Automation Equipment to United immediately upon the termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**J. CONTRACTOR ASSISTANCE** 

Contractor will furnish United with all information in Contractor's possession or that can be reasonably produced by Contractor that United may require to carry out the services and functions contemplated by this **Article III**.

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**IV.** **AIR SERVICES TO BE PROVIDED BY CONTRACTOR** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. AIRCRAFT TO BE USED** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Aircraft Types**. Unless otherwise agreed by United, Contractor will provide Contractor's United Express Services, in accordance with its United Express Schedule as referenced in **Article IV.B.1,** and as amended from time to time in accordance with the terms of this Agreement, using the type and amount of aircraft set forth in **Appendix B**. The aircraft will be scheduled, taking into account heavy scheduled maintenance requirements, the spare ratio indicated in **Article IV.B.2** below, and the schedule requirements in Appendix K:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. In accordance with the terms and conditions of this Agreement, Contractor is authorized to fly the following aircraft under Contractor's United Express Services:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. [\*\*\*] ERJ-170 aircraft which Contractor shall cause to be delivered in a timeline substantially consistent with the schedule set forth on **Appendix B**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. TECHNICAL SPECIFICATIONS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Technical Specifications

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Any aircraft used in United Express service by Contractor pursuant to **Article IV.A** will bear those United Marks which are expressly designated by United, whether included on **Appendix A** or otherwise established by United. Technical specifications covering aircraft colors, schemes, United Marks and other elements of exterior and interior aircraft decor will be provided to Contractor by United. Except as provided herein, Contractor will have all aircraft used to provide Contractor's United Express Services painted and decorated with the exterior and interior color decors and patterns specified by United at Contractor's sole expense. In accordance with the technical specifications referenced in this **Article IV.B.1**, Contractor will be responsible for maintaining all of its aircraft.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. In addition to the use of the United Marks on its aircraft, Contractor will use and display a suitable sign or insignia on the exterior of its aircraft that identifies Contractor as the operator of the services being provided pursuant to this Agreement. The use and display of such sign or insignia will be subject to the prior written approval of United, such approval not to be unreasonably withheld or delayed, as to its nature, size and location on Contractor's aircraft.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. **Aircraft Communications Addressing and Reporting System –ACARS.** Contractor is required to use an ACARS system on all United Express flights for the purpose of providing timely, automated, and accurate off, on, in and out times. Contractor agrees to cover the cost of the equipment (excluding systems programming, integration or IT related expense related to installation) and the ongoing operation of the equipment (excluding any periodic IT related expenses due to the integration of ACARS with United systems.)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Spare Aircraft.** In addition to the aircraft referenced in **Article IV.A.1** above, if requested by United, Contractor will use reasonable efforts to arrange for and make available for its use such spare aircraft as are required to effectively maintain Contractor's United Express Services. Pursuant to this Agreement, a spare aircraft shall be provided such that the ratio of "aircraft in schedule" divided by "aircraft in fleet" shall not exceed [\*\*\*] for all aircraft types. United shall pay costs that are consistent with every other aircraft in the program, including aircraft ownership costs and one-time startup costs relating to such spare aircraft. This is equivalent to one spare for every [\*\*\*] aircraft. Notwithstanding the preceding sentence, Contractor will be authorized to operate the thirteenth regional jet put into service as a spare aircraft. [\*\*\*] Additionally, all other airlines that Contractor provides service for must have a spare ratio equal to or greater than United's.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Mark Change.** United may from time to time change the Marks to be used for United Express Carriers. At any time during the term of this Agreement, and in the sole discretion of United, Contractor may be required to use such new or different Marks, external or internal color decors and patterns on its aircraft and uniform design as United may determine and to discontinue use of old marks, external and internal color decors and patterns, and uniform designs. Upon written notice from United, which will include the specifications for any such changes in Marks or exterior or interior aircraft decor and patterns or uniform designs, Contractor will effect such changes in accordance with the schedule mutually agreed to by the parties. United will pay all costs incurred in complying with the requirements established in this paragraph.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Substitute Aircraft.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. In the event that a scheduled aircraft is down-gauged to a smaller aircraft, United will pay the rates for the smaller aircraft that actually flies the departure. In the event that a scheduled aircraft is up-gauged to a larger aircraft, United will pay the rate for the originally scheduled departure for both the original and return flight, if applicable. If United requests in writing that a larger aircraft is substituted for a smaller scheduled aircraft, United will pay the rates for the larger aircraft. United will not pay for any additional substitutions that are a result of the original United requested substitution beyond those approved by United. Contractor will provide to United along with the normal reconciliation support materials, copies of United's request to substitute aircraft.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Subject to the provisions of IV.B.2, in the event Contractor is unable to operate a particular scheduled frequency with an aircraft bearing United Marks, Contractor will notify United of such event and the circumstances of Contractor's inability to operate and Contractor will be permitted to operate an aircraft bearing different elements of aircraft exterior decor than those specified above. If such operations extend beyond a continuous forty-eight (48) hour period, Contractor must seek and obtain United's approval for such aircraft substitutions; provided that if Contractor purchases or leases a used aircraft which does not contain appropriate United Marks, Contractor will notify United and Contractor may operate such aircraft without United's Marks for up to 60 days after the date of purchase or lease of such aircraft by Contractor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. SCHEDULES AND CHARTERS TO BE OPERATED BY CONTRACTOR** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **United Express Schedule.** Commencing on the in service date of the first aircraft, Contractor will provide Contractor's United Express Services in the markets determined by United. Subsequently, United will provide at least sixty (60) days notice of any planned scheduled changes. United may under extraordinary circumstances provide less than sixty (60) days notice on city pairs to be served, which Contractor shall use commercially reasonable efforts to accommodate. For any new cities, Contractor and United will determine a mutually viable ramp-up plan for implementation of service.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **United Schedule Consent Required.** United may adjust Contractor's schedule from time to time subject to (i) a minimum of sixty (60) days' prior written notice to Contractor except for schedule changes that introduce new international or FAA Designated Special Training Airports, for which United will provide a minimum of ninety (90) days' notice to Contractor. Should Contractor be unable to start service, due to a legal or regulatory constraint, Contractor will provide United notice of this within 7 days after receipt of original notice, and (ii) compliance with any regulatory requirements with respect to service to affected airports. Contractor will ensure that any of its requests for changes in the use by Contractor of the "UA" or "UA\*" code on future routes or in the flight frequencies or city pairs, or any of them, as operated or served by Contractor (whether necessitated by altered connections, operating experience or other reason) must be submitted to United within 14 days from the date that the proposed schedule is delivered to the Contractor. Contractor and United will work to complete Contractor's review at least ninety (90) days prior to the effective date of such change. All such changes must be approved in advance by United. The requests for such changes, and the approvals thereof, must be made in writing, by mail, facsimile, telegram, telecopy or other electronic message transmittal. If upon review of Contractor's request, the parties mutually agree to make a Contractor requested change, and the automation equipment needed to implement the change is available, then such change will be made as soon as reasonably practicable within the aforementioned ninety (90) day period. Within the operating capability of the aircraft used by Contractor, as described in **Article IV.A**, and subject to the provisions with respect to changes in city pairs as provided above, Contractor will comply with all requests by United to increase, decrease or in any other way adjust or terminate the flight frequencies or city pairs, or both, as operated and served by Contractor pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Charter.** Contractor may provide charter flights in any aircraft used in Contractor's United Express Services and shall be permitted to retain all revenues from such charters, provided that Contractor agrees to pay United a fee of [\*\*\*] per block hour for use of any aircraft covered under the terms of this Agreement (both United Express liveried and spare aircraft) and provided that operation of such charter services do not impede in any way the ability of Contractor to provide United Express services and operations required by this Agreement. In the case of each such charter, Contractor hereby agrees that it will not (and it will not permit others to) operate, promote or otherwise market the charter under the United Express name, the UA or UA\* designator code or any other United Marks or identification (excepting only the unavoidable use of United Express liveried aircraft and permanent airport signage). Contractor shall provide written notice to United of any charter flight using aircraft used in Contractor's United Express Services not later than the later of (i) the thirtieth day prior to the date of such charter flight or (ii) three business days after Contractor finalizes the arrangements for such charter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **Changes Input to Reservations Systems.** Changes to Contractor's schedules as set forth in this **Article IV.C** and which otherwise are in accordance with the terms and conditions of this Agreement will be submitted by Contractor for input into United's internal reservations system and computerized reservations systems. At no time may Contractor make any changes to flights operated by United or any other carrier.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **Operating Commitment.** Contractor agrees to operate Contractor's United Express Services in order to provide air transportation services scheduled pursuant to this **Article IV.C** (as modified from time to time) throughout the term of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D. INVENTORY** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. United will have the sole right to use, set and control availability, levels and use of all seat inventory for the aircraft used by Contractor in Contractor's United Express Services. United will take all revenue and inventory risk and will maintain inventory and pricing responsibility. Contractor is prohibited from providing positive space leisure travel, or any other confirmed leisure travel that requires removal of a seat from inventory, to any person other than the people outlined in **Appendix J**, on Contractor's United Express flights without the prior written consent of United. All positive space and leisure travel must be ticketed on United approved ticket stock with Contractor's full IATA serial and ticketing numbers. Positive space travel is permitted for Contractor's, Contractor's affiliates and United's employees for actual business purposes, including deadheading flight crews, and for Contractor's employees and Contractor's affiliates and Eligibles in emergency situations only. Contractor may not issue positive space business travel to anyone other than Contractor's own employees and Contractor's affiliates' employees and only in connection with business purposes and emergency situations related to United Express Services. If in any way Contractor issues tickets in violation of this provision in any form, within two (2) years of each such violation, Contractor may be billed via the ACH, and Contractor will pay United, the full unrestricted fare for the class of service provided on such route for any such inappropriate ticketing. Contractor also agrees to comply with all rules and regulations for positive space and space available travel as outlined in the Related Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E. FLIGHT CREWS TO BE USED** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Flight Crew.** All of Contractor's United Express Services will be operated with crews consisting of a captain or pilot, and a first officer or co-pilot. All such crew members will at all times meet all currently applicable governmental requirements, as such requirements may be amended from time to time during the life of this Agreement, and will be fully licensed and qualified for the services to be performed hereunder. In addition, each of Contractor's captains will hold a current Airline Transport Pilot Certificate and an adequate number of Flight Crews to be used in United Express service must be qualified to fly between all city pairs that Contractor will be serving hereunder. Crewmembers will also meet all requirements imposed by the insurance policies that are to be maintained pursuant to **Article XII.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Flight Attendants.** Contractor's flight attendants will at all times possess all necessary training and meet all currently applicable governmental requirements, as such requirements may be amended from time to time during the life of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**F. INFLIGHT SALES** 

Contractor may, at United's request, be required to sell beer, liquor and other goods on flights included in Contractor's United Express Service. Any additional goods or services Contractor would like to sell or promote onboard the aircraft are subject to United's approval. Contractor agrees that such in- flight sales shall be conducted in a manner consistent with in-flight sales provided on United's flights. For beer and liquor sales only, Contractor will be solely responsible for the direct costs associated with such in-flight sales and shall be entitled to all revenues generated from such in-flight sales (except SkyMall). For all other products, services or food put on the aircraft at United's request, United shall be responsible for the incremental costs of such products, services or food and shall be entitled to all of the revenue associated with such products, services or food. United shall use its commercially reasonable efforts to assist Contractor in securing an economical price for the in-flight items.

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**V.** **OPERATING RESTRICTIONS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. UNITED EXPRESS OPERATIONS ONLY** 

Other than pursuant to this Agreement, including **Article V.B** below, Contractor shall not, and directly or indirectly, engage or attempt to engage, on its or their own behalf or on behalf of a third party, in the business of providing air transportation at any of United's Hubs (DEN, IAD, LAX, ORD, SEA, SFO) for any carrier that has or attempts to have hub operations at any of those same hubs in connection with such hub operations of such carrier.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. CODE SHARE LIMITATION** 

Other than code share or marketing agreements operated for US Airways and Delta Airlines prior to the date of the Agreement, Contractor will not operate any additional regional jets (50 seat or larger) or Turbo Props pursuant to a marketing or code share relationship with any party other than United at the following airports: DEN, LAX, SFO, ORD, IAD or SEA for the term of this agreement. Should United decide to cease major hub operations at any aforementioned airport, Code Share Limitations will not apply at that airport. Notwithstanding the foregoing, Contractor may only fly to aforementioned hubs under codeshare or marketing relationships with another carrier as a 'spoke service' from another carrier's hubs from an airport other than those aforementioned. To the extent Contractor terminates any existing Delta Airlines or US Airways agreements, which contractually provide for service obligations at the aforementioned airports, Contractor may not recommence operations with that party which allow hub flying at aforementioned airports at any later time for the duration of the term of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. NO OPERATION OUTSIDE AGREEMENT** 

Without the prior written consent of United, Contractor will not use any of the services (excluding maintenance service) afforded to Contractor by United to provide air transportation or related services to other carriers or affiliates of Contractor without the consent of United. Under no circumstances will Contractor be permitted to operate aircraft bearing the United Marks in city pairs other than those specified by United pursuant to **Article IV**, without the prior written consent of United, other than charters operated as provided in **Article IV.C.3** hereof. Contractor will not, without United's prior written consent, permit any third party, whether under a lease arrangement or otherwise, to operate any aircraft bearing the United Marks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D. SEVERABILITY AND REMEDY** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. If the restrictions set forth in **Article V.A or V.B or V.C** or any part thereof should, for any reason whatsoever, be declared invalid by a court of competent jurisdiction, the validity or enforceability of the remainder of such restrictions shall not thereby be adversely affected. In the event that any time, scope or territorial limitation is deemed to be unreasonable by a court of competent jurisdiction, then Contractor agrees and submits to the reduction of either said time, scope or territorial limitation to such a time period, scope or area as said court shall deem reasonable. In the event the Contractor shall be in violation of the aforementioned restrictive covenants, then the time limitation thereof shall be extended for a period of time equal to the period of time during which such breach or breaches should occur.

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**VI.** **LICENSE** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. GRANT OF LICENSE** 

Contractor will conduct all operations described in **Article IV.B**, and any additional operations undertaken by subsequent amendment hereto, under the Marks set forth in **Appendix A** or other marks designated by United pursuant to this **Article VI.A** and subject to **Article IV.A.** In consideration for the services to be provided by Contractor under this Agreement, United hereby grants to Contractor, upon the terms and conditions herein contained, a nonexclusive, nontransferable, non sub-licensable right and license to use the United Marks, and Contractor hereby undertakes the obligation to use the licensed United Marks in connection with the services to be rendered by Contractor under this Agreement; provided, however, that at any time during the term of this Agreement, United may alter, amend or revoke the license hereby granted and require Contractor's use of any new or different Marks in conjunction with the air transportation services provided hereunder as United may determine in the exercise of its sole discretion and judgment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. TERMS AND CONDITIONS GOVERNING LICENSE** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **United Marks**. Contractor hereby acknowledges United's ownership of the United Marks, further acknowledges the validity of the United Marks and agrees that it will not do anything in any way to infringe or abridge United's rights in its marks or directly or indirectly to challenge the validity of the United Marks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Service Standards**. Contractor agrees that, in providing services under this Agreement in conjunction with one or more of the United Marks, it will comply with all service quality standards prescribed by United for United Express Carriers ("**United Express Service Standards or Service**"). United Express Service Standards include, but are not limited to, United standards for (a) aircraft types, as referenced in **Article IV.A**, (b) customer service, as set forth in United's Customer Service Policies and Procedures, (c) minimum customer service training requirements consistent with United's customer service practices and procedures, (d) in-flight amenities and service, (e) aircraft appearance, (f) United/United Express safety programs (and Contractor will enter into any agreements relating to such programs that are similar to those offered to other United Express Carriers), (g) any other quality control measures designated by United, as such standards may be prescribed by United from time to time and (h) customer problem resolution ("**CPR**"). As necessary, United will provide training to Contractor's designated instructors in the requirements of United's Customer Service Policies and Procedures and CPR programs; provided that United will at its expense provide a trainer and materials, and United agrees that the Service Standards prescribed by it will not be unreasonable in light of the facilities and aircraft available to Contractor. United will have the right, from time to time, to inspect Contractor's United Express Services to determine if they conform to the United Express Service Standards. In the event United determines that Contractor is not in compliance with the Service Standards United will notify Contractor and Contractor will promptly rectify any such noncompliance. Failure on the part of United to conduct such inspections will not relieve Contractor of its obligations to conform to United's Service Standards. If Contractor fails to comply with any material part of the Service Standards and such failure is not corrected as soon as practicable (and, in any event, within 30 days or with respect to a failure that cannot be corrected within 30 days, if Contractor has not commenced corrective action within 30 days) after Contractor's receipt of written notice of such failure from United, then United may, at its discretion, following 30 days prior written notice to Contractor restrict or eliminate Contractor's pleasure travel privileges, require Contractor to bear costs reasonably related to such failure in excess of normal guidelines, suspend Contractor's authority to serve specified city pair markets, or impose other available remedies. The United Express Service Standards are outlined in **Appendix I**, and may be changed by United upon notice given to Contractor from time to time.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. [Intentionally omitted.]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **Liability for Operations**. Nothing in this **Article VI.B** is intended to nor will be construed so as to relieve Contractor of any liability or to impose any liability on United for Contractor's United Express Services by virtue of any of United's rights under **Article VI.B.2**, whether exercised or not.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **Non-Exclusivity**. Nothing in this Agreement is intended nor will be construed to give Contractor the exclusive right to use the United Marks, or to abridge United's right to use or to license the Marks, and United hereby reserves the right to continue use of the United Marks and to license such other uses of such Marks as United may desire.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **Reversion of Marks**. Upon termination of this Agreement for any reason, the right to use herein granted for the United Marks will immediately revert back to United, and Contractor will have no right to use such Marks in any way. Further, Contractor will, at its sole cost and expense immediately upon termination of this Agreement, remove all United Marks from its aircraft, its other vehicles, the uniforms of its personnel, its facilities and from any and all other places or things controlled or formerly controlled by Contractor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. INFRINGEMENT** 

United will, at its expense, defend, indemnify, release, protect, save and hold Contractor, its officers, directors, agents and employees harmless from and against any and all liabilities, damages, expenses, losses, claims, demands, suits, fines or judgments, including but not limited to attorneys' and witnesses' fees, costs and expenses incident thereto, which may be suffered by, accrue against, be charged to or be recovered from Contractor as a result of any third-party claim that the use by Contractor of any United Mark in accordance with the terms of this Agreement infringes a registered trademark or service mark of any third party in the United States, and will pay all costs, damages and attorneys' fees that a court finally awards as a result of such claim. To qualify for such defense and payment, Contractor must (i) give United prompt written notice of any such claim and (ii) allow United to control the defense of the claim and all related settlement negotiations and fully cooperate with United in its defense of the claim and the conduct of any settlement negotiations. United's obligation hereunder is conditioned on Contractor's agreement that if any Mark becomes, or in United's opinion is likely to become, the subject of such a claim, Contractor will not dispute that United, at its option, may either procure the right for Contractor to continue using such Mark or to replace or modify such Mark so that it becomes non- infringing. If a United Mark is changed, it is United's responsibility to compensate Contractor for any incremental costs due to the Mark being changed. This **Article VI.C** states United's entire obligation to Contractor regarding infringement or the like.

**VII.** **ADDITIONAL UNDERTAKINGS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. PASS THROUGH COSTS** 

From time to time and at anytime, United reserves the right to assume responsibility from Contractor for purchasing of all Pass Through Cost products and services used by Contractor pursuant to this Agreement, including the right to return such responsibility to Contractor with reasonable notice not to exceed 365 days.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. BULK PURCHASES** 

Each party may assist the other in obtaining goods and services useful to the other party, including, without limitation, fuel, uniforms, supplies and ground equipment, in a more economical manner. If United identifies opportunities for cost savings as a result of bulk purchasing on behalf of Contractor, Contractor is obligated to participate in the new cost saving initiative. Contractor and United shall agree on a case-by-case basis how to share the benefits of any cost savings initiatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. FUEL** 

United, by or through it's subsidiaries, agents or affiliates, shall have the option to procure fuel and fuel services for or on behalf of Contractor. Contractor agrees to assist United, its subsidiaries, agents or affiliates in identifying fuel or fuel service procurement opportunities, to provide data or analysis pursuant thereto, and to enter into agreements for the provision of said fuel or fuel services, including any provisions therein, at the direction of United. United shall use its best efforts to accommodate any operational or other requirements of Contractor related to fuel or fuel services procured for or on behalf of Contractor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D. UNIFORMS** 

Contractor, at its own expense, shall pay for and require all of its Flight Crews, defined as all Pilots, First Officers, and Flight Attendants who provide Contractor's United Express Services, to wear uniforms which are in the United Express colors and styles, as approved by United, such approval not to be unreasonably withheld or delayed, while performing Contractor's United Express Services and as outlined in **Appendix I**. Contractor agrees that all such Flight Crews employed by Contractor shall wear the above-described uniforms while performing United Express services. Any other employees of Contractor who are visible to the public, other Flight Crews, will wear uniforms reviewed and approved by United, which approval shall not be unreasonably withheld. If United develops or designs new uniforms for United Express operations, United will cover any incremental costs to Contractor of such new uniforms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E. PASSES AND REDUCED RATE TRAVEL** 

Each party will comply with the terms of a separate agreement between them under which are granted to certain employees of the other party certain passes and reduced rate pleasure travel privileges. However, United has the right to retain all revenue generated from reduced rate travel, including companion passes, both on United and United Express operated flights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**F. ENVIRONMENTAL** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. With respect to all matters that relate to or may affect the environment, Contractor agrees to conduct its operations in a prudent manner, taking reasonable preventive measures to avoid environmental liabilities, including, without limitations, measures to prevent unpermitted releases to the environment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Contractor agrees, at its own expense, to conduct its operations in compliance with all local, state, and federal environmental laws and regulations, including all environmental rules, regulations, and policies dictated by the applicable airport authority, including ensuring its employees are trained in the procedures required to meet all environmental laws and regulations.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. To the extent associated with Contractor's activities (or its agents, provided that ground service providers or its agents shall not be deemed agents of Contractor), Contractor shall be responsible, and will indemnify United, for any and all environmental liabilities, including, without limitation, any penalties or costs associated with any enforcement action, airport authority action, or private claim, any remediation or restoration costs, any investigation costs, legal or environmental consultant costs, or any property damage costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. For any leased areas that are jointly operated by both Contractor and United, the following additional provisions apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Contractor shall ensure its own activities comply with Environmental Laws, which may include, when appropriate, coordination with United, such as to identify spill prevention procedures for any shared equipment. If any tanks for ground support equipment ("GSE") fueling are shared, both parties must ensure the fuel complies with the sulfur concentration limitations required under Section 211(g) of the Clean Air Act, and its implementing regulations at 40 CFR Part 80, (including any amendments, revisions, or succeeding statues and regulations), and provide documentation if requested.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Except for de minimis amounts, Contractor shall promptly notify United's facility Environmental Coordinator of any spills or leaks of hazardous substances, including petroleum substances, and provide copies of any written reports provided to the applicable agencies and airport authorities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Contractor shall provide copies of any notices of violations for environmental compliance received from any environmental agency or airport authorities.

**VIII.** **RATES PAYABLE TO CONTRACTOR** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. RATES** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Consideration.** For and in consideration of the transportation services, facilities and other services to be provided by Contractor hereunder, the right of United to (i) control all aspects of inventory as described in **Article IV.D**, (ii) receive and retain all air fares, cargo rates and mail charges received by Contractor and United, and (iii) receive and retain all other revenue received by Contractor and United as provided in this Agreement, and other valuable consideration provided under this Agreement, United shall pay Contractor specified **"Carrier Controlled Costs"** (together with "Markup" as defined in **Article VIII.B**) and specified **"Pass Through Costs"** for the Reimbursement Categories as detailed in **Appendix E** for each aircraft type.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Definitions.** Contractor and United agree to the definitions for both **Carrier Controlled** and **Pass Through Costs** as defined in **Appendix E**. Except as otherwise provided herein, Contractor is responsible for any and all other costs necessary to operate the aircraft covered under the terms of this Agreement in accordance with the "United Express Service Standards." United is not responsible for any other costs not specifically covered in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Reimbursement Categories**. The Pass Through Costs and Carrier Controlled Costs are grouped by "**Reimbursement Categories"** for each aircraft type. Within each Reimbursement Category, are specific kinds or types of expenses as outlined in **Appendix E**.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **Unit Rate**. Each Reimbursement Category, whether the costs are Pass Through Costs or Carrier Controlled Costs, is expressed in terms of one or more "**Unit Rates**.**"** The Unit Rates express the basic measurement and constitute the driver of costs for each Reimbursement Category. Each Reimbursement Category has specific Unit Rates as outlined in **Appendix E**.

The Unit Rates in Appendix E are effective from March 1, 2005 through December 31, 2005 and incorporate the 2005 Annual Adjustment Factor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **Commercially Reasonable Efforts**. Contractor agrees to use commercially reasonable efforts to control its Carrier Controlled Costs and Pass Through Costs. The parties agree to discuss any failure by Contractor to use reasonable efforts to control costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Aircraft Ownership Costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. **Regional Jet Aircraft Rent.** United will pay actual aircraft ownership costs for the ERJ-170 fleet provided the fleet average remains between [\*\*\*] and [\*\*\*]. United also reserves the right to finance any aircraft allocated for United Express Services subject to the requirements of paragraph c below. Contractor agrees to share on a [\*\*\*] basis the cost savings generated from monthly average fleet ownership costs, which fall below [\*\*\*] per month per aircraft. Contractor will also share on a [\*\*\*] basis the burden of cost increases due to monthly average fleet ownership costs, which rise above [\*\*\*] per month per aircraft. In the event Contractor leases an aircraft, the aircraft ownership costs for such aircraft shall be the amount payable by Contractor under the respective lease. In the event Contractor owns an aircraft subject to debt financing, the aircraft ownership costs for such aircraft shall be the amount payable by Contractor as debt service payments in respect of such Aircraft, calculated as if [\*\*\*] of the aircraft purchase price was financed by such debt. In the event that the amounts financed under such lease or debt financing do not include Contractor's third party costs and expenses incurred in connection with the acquisition and financing of such aircraft, the aircraft ownership costs shall include, in addition to the amount of such lease or debt service payments, the additional costs that would have been reflected in the lease or debt service payments under the terms of the respective lease or debt financing for such costs and expenses not to exceed [\*\*\*] of the aircraft purchase price (the "**Additional Financing Amount**"). Notwithstanding the above, at no time will United's total aircraft ownership cost per aircraft exceed a fleet average of [\*\*\*] per aircraft per month excluding Markup.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. **Amended** [\*\*\*]. Republic Airways Holdings Inc. ("Republic") shall provide United with an amended [\*\*\*] (the "Amended [\*\*\*]") calculated and applied as provided herein. The Amended [\*\*\*] shall be (a) [\*\*\*] per month for each aircraft operated in revenue service (i.e. excluding spares) by Chautauqua Airlines Inc. or Contractor under a United Express Agreement [\*\*\*] aircraft and up to a total of [\*\*\*] aircraft, and (b) [\*\*\*] per month for each aircraft operated in revenue service (i.e. excluding spares) by Chautauqua or Contractor under a United Express Agreement in excess of [\*\*\*] aircraft. For purposes of calculating the Amended [\*\*\*], the Amended [\*\*\*] will be prorated when an aircraft is introduced into service or removed from service after the start of the month. In addition, irrespective of the ERJ170 spare count shown on Exhibit B, the actual number of aircraft operated in revenue service will be used to determine the basis for the Amended [\*\*\*].

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. **Right to Finance.** Before finalization of any and all aircraft purchase and financing agreements, Contractor will advise United of expected, estimated ownership costs for aircraft covered under proposed aircraft purchase and financing agreements. Should United be able to secure financing such that the ownership cost to United (excluding Markup) be less than the [\*\*\*] of the estimated costs (excluding markup) provided by Contractor, United reserves the right to finance those aircraft to be covered by the Contractor's proposed aircraft purchase and financing agreements. In the event United exercises such right, (i) it shall provide written notice to Contractor within [\*\*\*] after receipt of notice from Contractor of the proposed aircraft purchase and financing agreements, and (ii) for each such aircraft it shall make a [\*\*\*] monthly payment to Contractor in lieu of any Markup on the ownership cost of such aircraft.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. MARKUP** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Markup**. Markup will remain fixed for the duration of this Agreement. Markup will be applied only to Carrier Controlled Costs (excluding aircraft ownership).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Operating goals will be set consistent with the methodology outlined in **Article VIII.C**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. "A" level performance in all categories will result in a [\*\*\*] markup

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. "B" level performance in all categories will result in a [\*\*\*] markup

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. "C" level performance in all categories will result in a [\*\*\*] markup

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. "D" level performance in all categories will result in a [\*\*\*] markup

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **One-Time Markup on New Aircraft.** With any new aircraft brought in the United system, United shall pay a markup of [\*\*\*] on only the one-time startup costs noted in **Appendix E.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Markup on Aircraft Ownership Costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Markup on Aircraft. United agrees to pay actual aircraft ownership costs on Aircraft plus a markup of [\*\*\*], not to exceed [\*\*\*] per aircraft per month.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. OPERATING GOALS** 

For each calendar month and for Contractor's entire United Express operations, Contractor's actual Performance Level shall be measured as the combined performance of Contractor's and Chautauqua Airlines, Inc.'s United Express operations with respect to each of four Operating Goals. To establish the **Total Markup** to be applied hereunder, add together the four applicable Markup Points (percentage figures) associated with the relevant Performance Metrics set forth on **Appendix F**, yielding a sum that is designated as the **Total Markup Factor**. Multiply the Total Markup Factor by the total aggregate Carrier Controlled Costs for the month in question, and the resultant amount is designated as the **Markup** as detailed in **Appendix F**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Operating Goals Methodology.** Up until the earlier of i.) the time at which Contractor first has [\*\*\*] aircraft in schedule for United Express or ii.) Contractor has operated for [\*\*\*] months for United Express, Contractor will be paid a "B" level markup across all operating goals. After which the Contractor's Monthly Operating Goals for the calendar year will be established using one of the two predetermined methodologies set forth below and will take effect on January 1 of each year.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. When United's annual Mainline performance (defined as performance for United Airlines' domestic, mainline flights, weighted by departures) for any of the four Operating Goals for the most recent calendar year completed is better than United Express Best Practice Operating Performance for the most recent calendar year completed, the below methodology shall be used to determine the goal for upcoming calendar year for that individual Operating Goal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Contractor's On-Time Zero (**"On-Time Zero or On-Time"**) Operating Goal is calculated as equal to United's Operating Mainline Performance (United Airlines' domestic mainline flights, weighted by departures), adjusted downwards [\*\*\*] percentage points then adjusted for regional differences. Regional differences will be accounted for by taking the resulting goal generated by the previous sentence and multiplying that number by the quotient of the weighted average of United Mainline On Time Zero performance for the hubs in which Contractor operates (weighted by Contractor hub departures) and the United Mainline System On Time Zero Performance (performance for United Airlines' domestic mainline flights, weighted by departures).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Contractor's Controllable Flight Completion (**"Controllable Completion" or "Controllable Flight Completion**") Operating Goal is equal to United's system-wide Mainline Operating Performance (United Airlines' domestic mainline flights, weighted by departures) for its own operation adjusted downward by [\*\*\*] percentage points. Controllable Flight Completion excludes cancellations due to weather, Air Traffic Control ("ATC") cancellations, requests by United to cancel flights in conjunction with the **Ground Delay Program**, acts or omissions by United, its agents and ground service providers and emergency airworthiness directives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. Contractor's Mishandled Bag (**"Mishandled Bags"**) Operating Goal is calculated as equal to United's system-wide Operating Performance (domestic performance, weighted by departures) for its own operation adjusted upward by [\*\*\*] points then adjusted for regional differences. Regional differences will be accounted for by taking the resulting goal generated by the previous sentence and multiplying that number by the quotient of the weighted average of United Mainline Mishandled Bag performance (domestic flights, for the hubs in which Contractor operates (weighed by Contractor hub departures) and the United Mainline System Mishandled Bag Performance (domestic performance, weighted by departures.)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. Contractor's Year 1 Repurchase Intent (**"Repurchase Intent** or **RPI"**) Operating Goal will be United Express Best Practice minus [\*\*\*] percentage points. Concurrent with the annual goal setting process, starting in year [\*\*\*] and ending in year [\*\*\*], the [\*\*\*] percentage points referenced in the previous sentence will be reduced by [\*\*\*] percentage points each year such that in year [\*\*\*], and for every year thereafter Contractor's Repurchase Intent ("Repurchase Intent or RPI") Operating Goal will be United Express Best Practice Performance minus [\*\*\*] percentage points.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. When United's Mainline performance (domestic mainline flights, weighted by departures) for any of the four Operating Goals for the most recent calendar year completed is worse than United Express Best Practice Operating Performance for the most recent calendar year completed, the below methodology shall be used to determine the goal for the upcoming year for that individual Operating Goal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Contractor's On-Time Zero **("On-Time Zero** or **On-Time")** Operating Goal is calculated as equal to the United Express Best Practice Operating Performance (where individual United Express Carrier Performance has been regionally normalized) adjusted down [\*\*\*] percentage points then re-adjusted for regional differences accounting for regions in which Contractor operates. Regional differences will be accounted for by taking the resulting goal generated by the previous sentence and multiplying that number by the quotient of the weighted average of United Mainline On Time Zero performance (domestic mainline flights, weighted by departures) for the hubs in which Contractor operates (weighted by Contractor hub departures) and the United Mainline System On Time Zero Performance (domestic mainline flights, weighted by departures)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Contractor's Controllable Flight Completion (**"Controllable Completion"** or **"Controllable Flight Completion"**) Operating Goal is equal to United Express Best Practice Performance adjusted downward by [\*\*\*] percentage points. Controllable Flight Completion excludes cancellations due to weather, Air Traffic Control ("**ATC**") cancellations, requests by United to cancel flights in conjunction with the Ground Delay Program, acts or omissions by United and emergency airworthiness directives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. Contractor's Mishandled Bag **("Mishandled Bags")** Operating Goal is calculated as equal to United Express Best Practice Performance (where individual United Express Carrier Performance has been regionally normalized) adjusted upward by [\*\*\*] points then re-adjusted for regional differences accounting for regions in which Contractor operates. Regional differences will be accounted for by taking the resulting goal generated by the previous sentence and multiplying that number by the quotient of the weighted average of United Mainline Mishandled Bag performance (domestic flights, weighted by departures) for the hubs Contractor operates in (weighed by Contractor hub departures) and the United Mainline System Mishandled Bag Performance (domestic flights, weighted by departures).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. Contractor's Year 1 Repurchase Intent (**"Repurchase Intent** or **RPI"**) Operating Goal will be United Express Best Practice minus [\*\*\*] percentage points. Concurrent with the annual goal setting process, starting in year [\*\*\*] and ending in year [\*\*\*], the [\*\*\*] percentage points referenced in the previous sentence will be reduced by [\*\*\*] percentage points each year such that in year [\*\*\*], and for every year thereafter Contractor's Repurchase Intent ("Repurchase Intent or RPI") Operating Goal will be United Express Best Practice Performance minus [\*\*\*] percentage points.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **B- Level Performance.** Contractor's Monthly Operating Goals, as defined above in **Article VIII.C.1** and adjusted for seasonality (as outlined in **Article VIII.C.6,** (below), define the minimum performance necessary to achieve at least **B–Level Performance.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Performance Grade Widths.** "**Grade Widths**" (the range between the lowest end of each Performance Level) remain constant and will not be changed over the entire Term of this Agreement and are as set forth in **Appendix F.**

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **Example.** The Grade Width for A, C and D level performance will be automatically computed on an annual basis once the numbers for the bottom of B Performance Levels are established. For example, if the Contractor's Monthly Operating Goal for the Controllable Completion Operating Category is determined to be [\*\*\*], that is the bottom of the B-Performance Level. Applying the methodology, in the performance Grade Width table referenced above, the bottom of the A- Performance Level would be [\*\*\*] ([\*\*\*] plus [\*\*\*]). Furthermore, the bottom of the C Performance Level would be [\*\*\*] ([\*\*\*] minus [\*\*\*]). Based on these numbers the Grade Widths, before application of any Seasonality Adjustment Factors would be as follows:

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| | | |
|:---|:---|:---|
| Level A | = | [\*\*\*] |
| Level B | = | [\*\*\*] |
| Level C | = | [\*\*\*] |
| Level D | = | [\*\*\*] |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. United and Contractor have developed a Monthly Incentive Payment ("**Markup**") program ("Incentive Program") that is based upon Contractor's scheduled operating goals established herein ("Operating Goals" or "Monthly Operating Goals"). Contractor's performance is evaluated with respect to actual (i) on-time performance, (ii) controllable flight completion rates (iii) baggage handling, and (iv) customer repurchase intent on all flights operated by Contractor as United Express. Contractor's actual performance (**"Performance Level" or "Level of Performance"**) with respect to each of these four operating goals will be used to determine the amount of Markup applicable to the Carrier Controlled Costs pursuant to the procedures set forth herein

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **Seasonality Adjustment**. At the beginning of each year, after Contractor's Monthly Operating Goals for the year have been calculated by the methodology outlined above but before Contractor's Monthly Operating Goals are finalized, Contractor may create the final Performance Level goals by multiplying any of the three Contractor's Monthly Operating Goals by a seasonality factor developed by Contractor provided that the twelve (12) month straight average of each of Contractor's Monthly Operating Goals remains unchanged after seasonality factors are applied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D. WIRE TRANSFER AND RECONCILIATION** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. On a monthly basis and in a format to be set by United, Contractor will provide an estimate of its monthly Carrier Controlled Costs with Markup, assuming C Level Performance and assuming a [\*\*\*] Completion factor and a [\*\*\*] load factor, plus its Pass Through Costs (which are never subject to Markup) with the exception of Markup on aircraft ownership costs and Markup on the one-time start-up costs for new aircraft, each of which shall be paid in full. This estimate will be based upon the schedule to be operated during the upcoming month and shall be provided no later than 7 days prior to the start of the month in which the wire transfers shall be made. [\*\*\*] If such day falls on a Saturday the payment will be made the previous business day. If such day falls on a Sunday or Holiday the payment will be made on the following business day. If United objects to such estimate, United retains the right to withhold payment of only such costs that are objected to by United, which will then be subject to the reconciliation process outlined in **Article VIII.D.2.** If United objects to such estimate, it shall provide written notice of such objection, which shall include a detailed statement of the specific grounds for its objection, within 3 business days after its receipt of such estimate.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Complete Reconciliation of Carrier Controlled Costs (and associated Markup) according to actual Performance Levels, and Pass Through Costs paid under **Article VIII.D.1** and as established in accordance with the terms of this Agreement, shall be completed by United on a monthly basis, but no later than 180 days after month's end:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Monthly Reconciliation – Carrier Controlled Costs. On or before the thirtieth (30<sup>th</sup>) day after the last day of each calendar month, Contractor shall submit to United a report detailing actual operational statistics pertaining to the payment of Carrier Controlled Costs, with a content reasonably determined by United, in a format mutually agreeable to United and Contractor. United and Contractor agree to make a good faith effort to reconcile any differences in operational statistics data used to calculate reconciliation payments and if necessary round to the nearest 1/10<sup>th</sup> of 1%, or if equidistant, to the nearest even 1/10<sup>th</sup> of 1%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Monthly Reconciliation – Pass Through Costs. On or before the ninetieth (90<sup>th</sup>) day after the last day of each calendar month, Contractor shall submit to United (in a format to be determined by United) documentation sufficient to support its actual expenses for Pass Through Costs items, including copies of invoices. Upon submission of the information, Contractor must notify United in writing if any 3<sup>rd</sup> party information is missing from the submission information, and provide an explanation for the delay. Under no circumstances will Contractor be reimbursed by United for Pass Through Costs claimed more than six (6) months after the expense was incurred and payable. United agrees to submit payment no more than 30 (thirty) days after receipt of this information. United will make objections to Pass Through Cost reconciliation no later than 180 days after the expense was incurred.

**IX.** **FEES PAYABLE TO UNITED** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. GOVERNMENT ASSISTANCE** 

Any and all direct or indirect assistance received by Contractor as a result of government assistance or bail-out plans that cover costs not incurred by the Contractor or revenues that are generated by passengers carried by Contractor and pertaining to Contractor's United Express Service will be forwarded directly to United. Examples include, but are not limited to, direct payments to Contractor, loan programs, reimbursement of security fees, and waivers of any and all fees and taxes.

**X.** **MAINTENANCE AND FUELING** 

United will have no responsibility under this Agreement for maintenance or fueling of Contractor's aircraft.

**XI.** **U.S. MAIL** 

United and Contractor agree to cooperate in making bids for mail carriage.

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**XII.** **INSURANCE** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. INSURANCE TYPES** 

During the term of this Agreement, Contractor agrees to procure and maintain in full force and effect, at its own expense, policies of insurance with insurers of recognized reputation and responsibility, which provide, unless otherwise provided in the Aircraft Leases, at a minimum the following insurance:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Comprehensive Airline Liability Insurance, including but not limited to Aircraft Liability, Passenger Liability, Comprehensive General Liability Insurance, War Risk and Allied perils, including both passengers and other third parties, Cargo Liability and Baggage Liability Insurance, with combined single limits for each and every loss and each aircraft of not less than (i) U.S. $300,000,000, or (ii) U.S. $3,000,000 per available seat or (iii) the limits that Contractor has in place, whichever is greatest. Any policies of insurance carried in accordance with this **Article XII.A.1** will also contain or be endorsed to contain those provisions set forth in the attached **Appendix G**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Aircraft Hull All Risks Insurance, including ground and flight coverage on Contractor's aircraft, including its engines and all its parts when installed or temporarily detached from Contractor's aircraft on a repair-or-replace basis with a deductible United has reasonably deemed appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Contractor agrees to maintain Workers' compensation in statutory amounts required by each state in which any work is performed, in whole or in part; Employers' Liability, with policy limits not less than $1,000,000 combined single limit, for all of Contractor's United Express employees. United shall in no way be liable for any workers' compensation claims paid by Contractor related to any of Contractor's operations. The Contractor's insurer agrees to waive rights of subrogation against United with respect to worker's compensation claims.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Contractor agrees to maintain Commercial Automobile Liability Insurance covering all owned, non-owned leased, and hired automobiles, trucks and trailers, with policy limits of not less than $5,000,000 combined single limit per occurrence to cover Contractor's entire United Express operation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Contractor will be responsible for the first $1,000,000 of loss or damage to all automation equipment provided by United to Contractor. Contractor will evidence property insurance and name United as loss payee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. 30-DAY NOTICE** 

On or before the Effective Date of this Agreement, and not less than thirty (30) days and seven (7) days notice with respect to war risk, before the expiration or termination date of any insurance required to be maintained by Contractor under **Article XII.A** above, Contractor will furnish United with certificates of insurance, substantially in the form of the attached **Appendix G**, evidencing compliance with the foregoing requirements, unless otherwise provided in writing between the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. ALTERATIONS** 

United has the right to make reasonable alterations in the requirements set forth in this **Article XII** above, in respect of the types and scope of coverage and amounts of insurance, any such alteration being deemed reasonable if readily available and if it becomes the custom in the industry.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D. FAILURE TO MAINTAIN INSURANCE** 

In the event that Contractor fails to acquire or maintain insurance as herein provided, United may at its option secure such insurance on Contractor's behalf at Contractor's expense.

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**XIII.** **LIABILITY AND INDEMNIFICATION** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. EMPLOYER'S LIABILITY AND WORKERS' COMPENSATION** 

Each party hereto assumes full responsibility for its employer's liability and workers' compensation liability to its own officers, directors, employees or agents on account of injury or death resulting from or sustained in the performance of their respective service under this Agreement. Each party, with respect to its own employees, accepts full and exclusive liability for the payment of workers' compensation and employer's liability insurance premiums with respect to such employees, and for the payment of all taxes, contributions or other payments for unemployment compensation or old age benefits, pensions or annuities now or hereafter imposed upon employers by the government of the United States or by any state or local governmental body with respect to such employees measured by the wages, salaries, compensation or other remuneration paid to such employees, or otherwise, and each party further agrees to make such payments and to make and file all reports and returns, and to do everything to comply with the laws imposing such taxes, contributions or other payments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. INDEMNIFICATION BY CONTRACTOR** 

Contractor hereby assumes liability for and agrees to indemnify, release, defend, protect, save and hold United and its officers, directors, agents and employees harmless from and against any and all liabilities, damages, expenses, losses, claims, demands, suits, fines or judgments, including but not limited to, attorneys' and witnesses' fees, costs and expenses incident thereto, which may be suffered by, accrue against, be charged to or be recovered from United or its officers, directors, employees or agents, by reason of any injuries to or deaths of persons, except for injury or death of United employees, or the loss of, damage to or destruction of property, including the loss of use thereof, arising out of, in connection with or in any way related to any act, error, omission, operation, performance or failure of performance of Contractor or its officers, directors, employees and agents, regardless of any contributory negligence either active, passive or otherwise on the part of United or its officers, directors, employees or agents (but excluding the reckless and willful misconduct or gross negligence of United or its officers, directors, employees or agents), which is in any way related to the services of Contractor contemplated by or provided pursuant to this Agreement. United will give Contractor prompt and timely notice of any claim made or suit instituted against United which in any way results in indemnification hereunder, and Contractor will have the right to compromise or participate in the defense of same to the extent of its own interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. INDEMNIFICATION BY UNITED** 

United hereby assumes liability for and agrees to indemnify, release, defend, protect, save and hold Contractor and its officers, directors, agents and employees harmless from and against any and all liabilities, damages, expenses, losses, claims, demands, suits, fines or judgments, including but not limited to, attorneys' and witnesses' fees, costs and expenses incident thereto, which may be suffered by, accrue against, be charged to or be recovered from Contractor or its officers, directors, employees or agents, by reason of any injuries to or deaths of persons, except for injury or death of Contractor's employees, or the loss of, damage to or destruction of property, including the loss of use thereof, arising out of, in connection with or in any way related to any act, error, omission, operation, performance or failure of performance of United or its officers, directors, employees or agents regardless of any contributory negligence either active, passive or otherwise on the part of Contractor or its officers, directors, employees, or agents (but excluding the reckless and willful misconduct or gross negligence of Contractor or its officers, directors, employees or agents), which is in any way related to the services of United contemplated by or provided pursuant to this Agreement. Contractor will give United prompt and timely notice of any claim made or suit instituted against Contractor which in any way results in indemnification hereunder, and United will have the right to compromise or participate in the defense of same to the extent of its own interest.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D. CONTRACTOR'S SUPPLIES LIABILITY** 

Contractor hereby assumes liability for and agrees to indemnify, release, defend, protect, save and hold United and its officers, directors, agents and employees from and against any and all liabilities, damages, losses, claims, demands, suits, fines or judgments, including but not limited to attorneys' and witnesses' fees, costs and expenses incident thereto, which may be suffered by, accrue against, be charged to or be recovered from United or its officers, directors, employees, or agents by reason of any losses or damages incurred on account of the loss, misapplication, theft or forgery of passenger tickets, exchange orders or other supplies furnished by or on behalf of United to Contractor, or the proceeds thereof, whether or not such proceeds have been deposited in a bank and whether or not such loss is occasioned by the insolvency or bankruptcy of a bank in which Contractor may have deposited such proceeds, other than a loss caused by a bank to which funds have been transmitted at the express direction of United. Contractor's responsibility hereunder for passenger tickets, exchange orders and other supplies will commence immediately upon the delivery of said passenger tickets, exchange orders, and other supplies into the possession of Contractor or any duly authorized officer, agent or employee of Contractor. United will furnish Contractor prompt and timely notice of any claims made or suits instituted against United which in any way may result in the indemnification hereunder, and Contractor will have the right to compromise or participate in the defense of same to the extent of its own interest. This paragraph does not apply in situations to the extent the losses or damages are caused by the willful misconduct or gross negligence of United or its officers, directors, employees, or agents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E. INDEMNITY FOR INFORMATION** 

Each party hereby assumes liability for and agrees to release, defend, protect, save, indemnify and hold the other party, its officers, directors, employees and agents harmless from all liabilities, damages, losses, claims, demands, suits, fines or judgments including, but not limited to, attorneys' and witness' fees, costs and expenses incident thereto, of such party and any third person, express or implied, arising by law or otherwise, as a result of, or related to, any material errors in information provided by the other party under this Agreement, regardless of any contributory negligence of the other party either active, passive or otherwise (but excluding the gross negligence or willful misconduct of the other party or its officers, directors, employees or agents). Each party's waiver and release to the other party in this Article XIII.F applies to any liability, obligation, right, claim, or remedy in tort and including any liability, obligation, right, claim, or remedy for loss of revenue or profit or any other direct, indirect, incidental, special, or consequential damages, notwithstanding the above, this paragraph does not apply to losses or damages to the extent they are under [\*\*\*] per year or to the extent they are in excess of [\*\*\*] per year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**F. CERTAIN DEFINITIONS** 

As used in this **Article XIII** for purposes of identifying an indemnified party, all references to United include United's parent company, and any wholly-owned subsidiary of United or its parent, and their respective employees, officers, directors and agents, and all references to Contractor include Contractor's parent company, and any wholly-owned subsidiary of Contractor or its parent, and their respective employees, officers, directors and agents. For purposes of this **Article XIII** any passenger who

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connects in any city from a flight on United or Contractor (the **"Carrying Party"**) within four (4) hours after the end of such flight to a flight of the other party (the **"Connecting Party"**) become passengers of the Connecting Party when such passenger enters the hold room or waiting area to which they were deplaned in such city from the Carrying Party's flight to such on-line city. A passenger of the Carrying Party who does not have a connecting flight with the other party hereto and prior to entering the hold room or waiting area after deplaning from the Carrying Party's flight in the Connection City is a passenger of the Carrying Party. For purposes of this **Article XIII**, neither loading bridges, hallways, stairways, nor ramp areas will be considered part of the hold room or waiting area.

**XIV.** **REPORTS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. BOARDING INFORMATION** 

Information reports containing data covering boarding, and other information agreed to by the parties for Contractor's operations hereunder will be produced from the close-out entries and provided by United to Contractor on a monthly basis 15 days after the month end.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. OPERATING PERFORMANCE** 

Contractor will furnish to United within ten (10) working days after the end of each month a detailed report of its operating performance, this report will include information on Contractor's performance during the preceding month for each of the items designated by United, including, but not limited to, Operating Performance Standards and aircraft appearance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. CORPORATE AUDIT** 

United may inspect and audit Contractor's corporate records related to Pass Through Costs at any time, provided that such inspections do not unreasonably interfere with Contractor's business. Additionally, United may inspect and audit all of Contractor's corporate records and accounts solely related to Contractor's United Express Services, in conjunction with the benchmarking studies conducted in 2009 and 2013 provided that such inspections do not unreasonably interfere with Contractor's business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D. FINANCIAL STATEMENTS** 

Contractor will furnish to United, (i) within 45 days after the end of each calendar quarter, unaudited financial statements, including Contractor's then current corporate balance sheet and profit and loss statement, either separately or on a consolidated basis, and (ii) within 90 days after the end of the Contractor's fiscal year, Contractor's then current, audited financial statements including, either separately or on a consolidated basis, the balance sheet and the profit and loss statement, together with associated footnotes, and a copy of the independent auditor's report. If Contractor fails to provide financial statements within the 45-day or 90-day period, as outlined above, United may withhold all reconciliation payments pending the receipt of financial documents. Contractor may satisfy its obligations under this provision by providing United with copies of filings by Contractor or an affiliate on SEC Forms 10K or 10Q that include Contractor's financial performance.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E. BENCHMARKING** 

In 2009 and 2013, Contractor agrees to participate diligently in a detailed update of Contractor's United Express expenses. Contractor agrees not to provide United Costs data to any other carrier or third party and United agrees not to provide Contractor cost data to any other carrier or third party except as required by law (including federal or state securities laws or regulations) or by the rules and regulations of any stock exchange or association on which securities of either party or any of its affiliates are traded, or in any proceeding to enforce the provisions of this Agreement. In the event either party believes it is required to disclose the other party's cost data to any other carrier or third party, it shall provide to the owner of such data prior written notice of such contemplated disclosure in sufficient time to enable the owner to seek a protective order or other appropriate protection, and upon the owner's request, the disclosing party shall cooperate with any such effort by the owner. Nothing in this paragraph is intended to override any non-disclosure obligation of either party to protect the confidential information of the other party that is in its possession.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**F. GOVERNMENT FILINGS** 

Contractor will be responsible for filing all reports relating to its operations with the DOT, FAA and other applicable government agencies (other than any such reports for which United has assumed the responsibility to file them on Contractor's behalf), and commencing at such time as it commenced United Express flight operations, Contractor will promptly furnish United with copies of all such reports and such other available traffic and operating reports as United may request from time to time during the life of this Agreement. To the extent only United is in possession of relevant statistics used in such reports, United will provide such available statistics to Contractor as necessary for Contractor to complete these filings. If United fails to provide such statistics to Contractor sufficiently in advance of the applicable deadline for such filings, and Contractor is unable to submit such filings by the deadline because of such delay, United will reimburse Contractor for any fines or penalties incurred by Contractor as a result of its failure to submit such filings by the deadline.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**G. COPY OF GOVERNMENT REPORTS** 

Contractor will promptly furnish United with a copy of every final report that Contractor prepares, whether or not such report is filed with the FAA, NTSB or any other governmental agency, relating to any accident or incident involving an aircraft used by Contractor pursuant to this Agreement, when such accident or incident is claimed to have resulted in the death or injury to any person or the loss of, major damage to or destruction of any property.

**XV.** **INDEPENDENT CONTRACTORS AND UNAUTHORIZED OBLIGATIONS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. INDEPENDENT CONTRACTORS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The employees, agents and independent contractors of each party hereto (the "Employer") engaged in performing any of the services the Employer is to perform pursuant to this Agreement are employees, agents, and independent contractors of the Employer for all purposes and under no circumstances will be deemed to be employees or agents or independent contractors of the other Party (the "non-Employer"). The Non-Employer will have no supervision or control over any such Employer's employees, agents and independent contractors and any complaint or requested change in procedure made by the Non-Employer will be transmitted by it to the Employer's designated representatives. In its performance under this Agreement, each party will act for all purposes, as an independent contractor and not as an agent for the other party.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Notwithstanding the fact that Contractor has agreed to follow certain procedures, instructions and United Express Service Standards pursuant to this Agreement, United will have no supervisory power or control over any employees, agents or independent contractors engaged by Contractor in connection with its performance hereunder, and all complaints or requested changes in procedures made by United will, in all events, be transmitted by United to Contractor's designated representatives. Nothing contained in this Agreement is intended to limit or condition Contractor's control over its operations or the conduct of its business as an air carrier, and Contractor and its principals assume all risks of financial losses which may result from the operation of the air services to be provided by Contractor hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. EMPLOYEES** 

The employees, agents and independent contractors of United engaged in performing any of the services United is to perform pursuant to this Agreement are employees, agents and independent contractors of United for all purposes and under no circumstances will be deemed to be employees, agents or independent contractors of Contractor. Contractor will have no supervision or control over any such United employees, agents and independent contractors and any complaint or requested change in procedure made by Contractor will be transmitted by Contractor to United's designated representatives. In its performance under this Agreement, United will act, for all purposes, as an independent contractor and not as an agent for Contractor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. UNAUTHORIZED OBLIGATIONS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Nothing in this Agreement authorizes United to make any contract, agreement, warranty or representation on Contractor's behalf, or to incur any debt or obligation in Contractor's name ("**Contractor Unauthorized Obligation**"); and United hereby agrees to defend, indemnify, save, release and hold Contractor and its officers, directors, employees and agents harmless from any and all liabilities, claims, judgments and obligations which arise as a result of or in connection with or by reason of any such Contractor Unauthorized Obligation made by United or its officers, directors, employees, agents or independent contractors (other than Contractor) in the conduct of United's operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Nothing in this Agreement authorizes Contractor to make any contract, agreement, warranty or representation on United's behalf, or to incur any debt or obligation in United's name ("**United Unauthorized Obligation**"); and Contractor hereby agrees to defend, indemnify, save, release and hold United and its officers, directors, employees and agents harmless from any and all liabilities, claims, judgments and obligations which arises as a result of or in connection with or by reason of any such United Unauthorized Obligation made by Contractor or its officers, directors, employees, agents or independent contractors (other than United) in the conduct of Contractor's operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D. CONTRACTOR OPERATED FLIGHTS** 

The fact that Contractor's operations are conducted under the United Marks and listed under the UA designator code will not affect their status as flights operated by Contractor, and Contractor and United agree to advise all third parties, including passengers, of this fact.

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**XVI.** **DEFAULT AND TERMINATION** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. OPERATIONS DEFAULT** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. If either party becomes insolvent; is not regularly paying its bills when due without just cause; takes any step leading to its cessation as a going concern; makes an assignment of substantially all of its assets for the benefit of creditors or a similar disposition of the assets of the business; or either ceases or suspends operations for reasons other than an **Article XXVI** Force Majeure condition (a **"Section A Default"**), then the other party (the **"Insecure Party"**) may terminate this Agreement on not less than 10 days written notice (the "Notice Period") to such party (the **"Section A Defaulting Party"**) unless the Section A Defaulting Party immediately gives adequate assurance of the future performance of this Agreement within the Notice Period by establishing an irrevocable letter of credit-issued by a U.S. bank acceptable to the Insecure Party, on terms and conditions acceptable to the Insecure Party, and in an amount sufficient to cover all amounts potentially due from the Section A Defaulting Party under this Agreement-that may be drawn upon by the Insecure Party if the Section A Defaulting Party does not fulfill its obligations under this Agreement in a timely manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. If bankruptcy proceedings are commenced with respect to the Section A Defaulting Party and if this Agreement has not otherwise terminated, then to the extent permitted by the Bankruptcy Court, the Insecure Party may upon ninety (90) days' prior written notice suspend all further performance of this Agreement until the Section A Defaulting Party assumes or rejects this Agreement pursuant to Section 365 of the Bankruptcy Code or any similar or successor provision. Any such suspension of further performance by the Insecure Party pending the Section A Defaulting Party's assumption or rejection will not be a breach of this Agreement and will not affect the Insecure Party's right to pursue or enforce any of its rights under this Agreement or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. COVENANT DEFAULT** 

If either party (the **"Section B Defaulting Party"**) shall refuse, neglect or fail to perform, observe, or keep any material covenants, agreements, terms or conditions contained herein on its part to be performed, observed, and kept (other than any such covenant or agreement for which this Agreement provides an exclusive remedy and other than the covenants described in **Article XVI.D**), and such refusal, neglect or failure (individually and collectively, a **"Breach"**) shall continue for a period of thirty (30) days after written notice to cure such Breach to the Section B Defaulting Party thereof or such longer period as may be demonstrably necessary to complete the cure of such failure (but such longer period may not exceed 60 days after the receipt of the notice to cure) (a **"Section B Default"**) then the other party may upon thirty (30) days' notice to the Section B Defaulting Party terminate this Agreement. If a notice of Breach is delivered and a notice of termination is not delivered within forty-five (45) days after the end of the 30 or 60 day cure period, as applicable, the other party shall be deemed to have waived its right hereunder to terminate for the particular occurrence of Breach for which the Section B Defaulting Party received notice. Notwithstanding the foregoing, if United shall permanently cease operations as a certificated air carrier, Contractor may give written notice and terminate the Agreement effective immediately after such cessation of operations.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. DEFAULT BY CONTRACTOR** 

If Contractor shall refuse, neglect or fail to cure or perform any one of the following conditions outlined in **Article XVI.C.1** or **Article XVI,C.2** below , United may give Contractor written notice to correct such condition or cure such breach. Upon written notice of breach, Contractor shall have thirty (30) days in order to cure such breach, and if any such condition or breach shall continue beyond thirty

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(30) days after notice to Contractor thereof (a **"Section C Default"**), then United may terminate this Agreement upon thirty (30) days' written notice to Contractor if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Contractor's operations fall below C level performance in all of the following three goals for a period of three (3) consecutive months OR for a period of 6 months within a 12-month period:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Controllable Flight Completion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Mishandled Bags; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. On-Time Zero;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Contractor knowingly maintains falsified books or records or submits false reports of a material nature

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D. SIMILAR AGREEMENTS** 

United may immediately terminate this Agreement (i) if Contractor is in breach of the terms of **Article V.A.** (United Express Operations Only) or (ii) if Contractor is in breach of the terms of **Article V.B** (Code Share Limitation) (a **"Section D Default"**).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E. NON-COMPLIANCE WITH STANDARDS** 

If Contractor shall refuse, neglect, or fail to perform or observe the provisions of the United Express Service Standards or Aircraft Ground Handling Procedures to be performed, observed, and kept with regard to one or more city pairs under this Agreement, and such refusal, neglect or failure shall continue for a period of sixty (60) days after United delivers written notice to cure such default to Contractor thereof (a **"Section E Default"**) then United may upon thirty (30) days' notice to Contractor terminate this Agreement with regard to the city pairs involved or ninety (90) days' notice to Contractor as to the entire Agreement at United's discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**F. CONSEQUENCES OF TERMINATION** 

Any termination pursuant to one or more of the provisions of this Agreement will be without additional liability to the party initiating such termination and will not be construed so as to relieve either party hereto of any debts or obligations, monetary or otherwise, to the other party that accrued hereunder prior to the effective date of such termination. Each party will be entitled to any and all damages recoverable and remedies under law or in equity against the other for any breach by the other party of this Agreement, regardless of whether the non-breaching party elects to terminate this Agreement; provided that the liquidated damages provided for in **Article XVI.G** shall constitute full payment and the exclusive remedy for any damages suffered by United in the event it terminates this Agreement pursuant to the terms of this **Article XVI sections A, B, C.2 or D.**

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**G. LIQUIDATED DAMAGES** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Except as otherwise provided hereunder, if United terminates this Agreement pursuant to the terms of this **Article XVI** as a result of a Section A Default, a Section B Default, a Section C.2 default or a Section D default by Contractor, then Contractor will be obligated to pay United liquidated damages. Such liquidated damages will be calculated in the manner provided herein and shall not constitute a penalty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. If United is entitled to collect liquidated damages from Contractor as a result of Contractor's material breach of this Agreement, United's liquidated damages shall be calculated as follows: lost contribution (which shall be conclusively deemed to be [\*\*\*] of United's average monthly net revenue, defined as total Origination and Destination revenue minus taxes and commissions, from Contractor's United Express flights during the immediately preceding [\*\*\*] period) multiplied by the following percentages for each month in the following periods – (a) [\*\*\*] for the first [\*\*\*] following the termination of the Agreement, (b) [\*\*\*] for the next [\*\*\*], and (b) [\*\*\*] for the next [\*\*\*]. Such amounts shall be subject to mitigation to the extent United can replace Contractor's United Express services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The provisions of this Section XVI.G shall not apply to any termination as a result of a Section C.1 default, or a Section E default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**H. RESTRICTED ACTIONS** 

Contractor shall not take, nor agree to take, any of the following actions without United's prior written consent: (a) dispose of any of United's assets, or (b) enter into any agreements with third parties which create liens, claims or encumbrances on any of United's assets. To the extent that Contractor engages in, invests in or otherwise is responsible (financially or otherwise) for any business, activity or operation other than Contractor's United Express Services, and unless otherwise expressly agreed in writing with United, Contractor will ensure that the costs and expenses associated with or allocable to such other businesses, activities or operations are not charged to or recovered from United in any way.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**I. CALL OPTION** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. United will have the option to assume Contractor's ownership or leasehold interest, as the case may be, in certain aircraft as more fully described in **Article XVI.I.** (the "**Call Option**") in any one or more of the following circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. If Contractor wrongfully terminates this Agreement, (in which event United will also be entitled to Liquidated Damages to the extent provided in **Article XVI.G**); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. If United terminates this Agreement for Contractor's breach of this Agreement for any one or more of the following reasons (in which event United will also be entitled to Liquidated Damages to the extent provided in **Article XVI.G**)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Contractor's operating performance falls below the following two levels for three consecutive months or any 6 month period within a rolling 12 month period:

(a).less than [\*\*\*] controllable completion factor (excluding cancellations caused solely by weather, ATC, United caused problems, and/or labor actions); and

(b).less than [\*\*\*] on-time zero;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Contractor enters into a new codeshare with another airline in breach of **Article V.A** or **V.B**; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. Contractor breaches its obligations contained in **Article V.A** or **V.B**; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. Contractor's operating certificate is revoked or suspended by the FAA, for safety issues or concerns, for a period of four consecutive months.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Such Call Option will be governed by the terms set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. The Call Option shall apply to any or all regional jet aircraft operated by Contractor as United Express pursuant to the terms of this Agreement at the time of the event or events described in Article XVI.I.1 above, provided that if United exercises the Call Option for less than all of such regional jet aircraft, it shall not exercise such Call Option for at least [\*\*\*] such aircraft which are to be selected by United.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. United shall deliver notice of its election to exercise the Call Option no later than 45 days following the date of notice of termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Within [\*\*\*] business days following its receipt of a notice by United of its notice of termination, Contractor shall provide United with: (i) copies of documentation relating to interests to be assumed by United or retired at United's expense as a result of an aircraft lease assignment, sublease or purchase; (ii) lease rates and other financial information relevant to the assignment, sublease or purchase; and (iii) the identity of and contact information for all parties with an interest in said aircraft.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. [Intentionally Omitted.]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. In the event United exercises its Call Option (i) with respect to aircraft that are owned by Contractor or an affiliate of Contractor, Contractor or such affiliate shall sell the aircraft to United for the purchase price set forth in paragraph f below, and (ii) with respect to aircraft that are leased by Contractor, (A) if the leases to such aircraft may be assigned to United, United shall assume the leases with respect to such aircraft, and (B) if the leases to such aircraft may not be assigned to United or a consent required cannot be obtained, United shall sublease such aircraft from Contractor pursuant to a sublease with terms and conditions that are the same for the remaining term as they are in the lease under which Contractor leases the aircraft. The effective date of any such sale, lease, or sublease shall occur promptly after United's election to exercise the Call Option but no later than [\*\*\*] days after the notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. In the event of a sale of an aircraft under paragraph e(i) above, the purchase price for the aircraft shall be [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. In the event of a lease assumption under sub paragraph e(ii)(A) above, Contractor shall be entitled to either a full release from all liabilities and obligations under such lease other than obligations relating to periods prior to the date of assignment to United or United shall indemnify the Contractor from liabilities and obligations arising after the date of assignment. Contractor shall indemnify United from all liabilities and obligations arising prior to the date of the assignment.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. In the event of either a lease assumption under paragraph e(ii)(A) above or a sublease under paragraph e(ii)(B) above United will indemnify Contractor against all liabilities arising from and after such assignment or sublease as the case may be. Contractor shall indemnify United from all liabilities and obligations arising prior to the date of the assignment or sublease, as the case may be. United shall also attempt to obtain a termination of all guarantees and return to Contractor (or reimburse) all applicable deposits, letters of credit, or other collateral, but such release shall not include (and instead Contractor shall assign to the extent assignable to United without further compensation, and if not assignable, Contractor shall subrogate its rights regarding any such deposits or reserves held by or subject to the security interest of third parties to United or otherwise put United in the same position as if such rights were assignable) any deposits or reserves held by or subject to the security interest of third parties related to the maintenance or operation of the aircraft (including the airframe, any engine, any landing gear, or other component or part). United shall assume all obligations of Contractor with respect to such lease or sublease as of the date of assignment or sublease and adjustments shall be made between the parties for advance or arrears payment of rent. Such adjustment shall be the difference between: (i) the cash amount of rent actually paid under the lease during its entire term as of the time of the assignment, and (ii) the total rent due during the entire term of the lease times the percentage of the number of days since the beginning of the lease to the total number of days in the entire term of the lease. In the event that United and the Contractor working together are unable to obtain a release, for the benefit of Contractor, then United shall indemnify Contractor from and against all losses and liabilities of any kind arising from and after such assignment or sublease in the same manner contemplated above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Following a notice of termination from United, provided that Contractor does not operate the aircraft in a manner that is prohibited under the terms of this Agreement, United shall continue to pay aircraft ownership costs as provided in Section VIII.A.8 hereof in respect of all aircraft subject to United's exercise of its Call Option until (a) in the event United exercises its Call Option, the effective date of the sale, lease or sublease of the respective aircraft as provided herein, or (b) in the event that United does not exercise its Call Option, the date of expiration of its Call Option, the date of United's written notice providing United's early release of its rights to such Call Option, or the date of United's revocation of its exercise of the Call Option as provided under paragraph f, in each case with respect to any particular aircraft.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j. For each aircraft that United acquires pursuant to the Call Option, United will purchase from the Contractor and take delivery of a mutually-selected, proportional share of Contractor's spare engines, rotable and expendable spare parts, and tools, owned by Contractor to support the operation of the aircraft type. The aggregate proportional share of Contractor's spare engines, spare parts and tools shall be determined as the number of aircraft acquired by United as a percentage of the Contractor's fleet, by aircraft type. Spare parts, spare engines and tools will be purchased by United at fair market value in "as is where is" condition with fair market value determined in the manner provided in paragraph f above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k. In the event United exercises its Call Option with respect to any aircraft as to which Contractor has prepaid rent under the terms of any lease or financing agreement, United shall reimburse Contractor for all prepaid rent to the extent not previously included in the aircraft ownership costs previously paid by United or otherwise.

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**XVII.** **ASSIGNMENT, MERGER AND ACQUISITION** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. ASSIGNMENT** 

This Agreement may be terminated by either United or Contractor (the **"First Party"**) if the other party assigns this Agreement or any of its rights, duties or obligations under this Agreement (except an assignment of the right to money to be received hereunder and except to any affiliate of Contractor) without the prior written consent of the First Party. In the event that this Agreement is assigned in violation of this **Article XVII**, without such consent having been given in writing, the First Party will have the right to terminate this Agreement immediately by telegraphic or written notice to the other party; provided, however, that a corporate reorganization that does not result in a material change in the ultimate ownership of Contractor from the ownership that existed prior to such transaction will not be considered an assignment as long as all of the entities succeeding to any of the assets or liabilities of Contractor prior to such corporate reorganization agree to be bound by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. MERGER** 

In the event Contractor or Republic merges with, or if control of Contractor or Republic is acquired by, another air carrier, or a corporation directly or indirectly owning or controlling or directly or indirectly owned or controlled by another air carrier (a **"Holding Company"**), or a corporation directly or indirectly owned or controlled by any such Holding Company, United will have the option to terminate this Agreement without liability to Contractor, but shall have no such option if (1) Contractor or Republic is the acquiring or surviving entity in such merger or acquisition, (2) the ultimate beneficial ownership of the surviving entity immediately following such transaction is substantially similar (i.e. at least [\*\*\*] common ownership) to the ultimate beneficial ownership of Contractor or Republic as the case may be immediately prior to such transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. ACQUISITION** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. For purposes of this **Article XVII.C,** a **"Qualifying Transaction"** means any actual, contemplated or proposed (a) merger of Contractor or Republic with another company, (b) sale, transfer or lease by Contractor of substantially all its assets, rights or powers (other than in the ordinary course of business), or (c) issuance or sale of stock of Contractor or Republic representing a [\*\*\*] of beneficial ownership or voting control (other than the issuance or sale of stock in Contractor or Republic in a registered public offering under the Securities Act of 1933, as amended) in a single transaction or series of related transactions; provided, however, that a Qualifying Transaction shall not include (d) a corporate reorganization or other transaction that does not result in a change of over [\*\*\*] in the ultimate beneficial ownership or voting control of Contractor or Republic from the ownership that existed prior to such transaction, (e) a transaction in which Contractor or Republic is the surviving entity, (f) a transaction in which the surviving entity is controlled, directly or indirectly, by Wexford Capital LLC, provided that in each case the surviving entity agrees to be bound by this Agreement or (g) any proposed sale or disposition by Contractor of its aircraft or assets that: (i) have become worn out or obsolete or are no longer used and useful in Contractor's day-to-day business; provided, however, that such sale or disposition does not impair or negatively affect Contractor's ability to complete scheduled service on a day to day basis under this Agreement; or (ii) are being replaced with other assets of a similar type which are at least of equal quality and utility to Contractor in carrying on its day to day business and meeting its obligation under this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Contractor and Republic each agrees that if it desires to engage in a Qualifying Transaction, it shall (a) give United written notice of its intention to engage in such Qualifying Transaction together with the material terms and conditions of such proposed transaction (the **"Notice"**), (b) negotiate in good faith with United to determine terms and conditions on which Contractor or Republic and United could complete such Qualifying Transaction and (c) grant United or any United affiliated entity a right of refusal or of offer (the "**United ROFR**") regarding such proposed Qualifying Transaction, subject to any conflicting prior right of refusal granted by Contractor, Republic or any of their affiliates before January 27, 2004. The United ROFR shall give United or any United affiliated entity the right to enter into a Qualifying Transaction upon the terms set forth in the Notice; provided that if United is unable to match such terms due to United's inability to provide the specific types of consideration (e.g., stock, rights or assets) to be delivered by a third party thereunder, Contractor agrees to negotiate promptly in good faith in order to determine an amount and type of consideration with an equivalent after-tax economic value to Contractor or its affiliates which could be paid or delivered to Contractor or its affiliates in lieu of such specific consideration. Contractor agrees that any and all information provided to any third party in connection with a Qualifying Transaction will be provided to United with the Notice or as promptly as possible thereafter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. United shall deliver to Contractor written notice of its preliminary election to exercise the United ROFR (a "**ROFR Notice**") not later than 10 business days after the receipt of the Notice by United. Within 10 business days after the later of (a) United's delivery of a ROFR Notice, or (b) the delivery to United by Contractor of the information referred to in paragraph 2, United shall have the right to withdraw its ROFR Notice. If (c) United does not issue a timely ROFR Notice, (d) withdraws a ROFR Notice, or (e) notwithstanding United's issuance and failure to withdraw a ROFR Notice, United and Contractor or Republic are unable to agree on terms and conditions of a Qualifying Transaction among themselves, Contractor or Republic shall have the right to enter into the Qualifying Transaction with a third party, but may not do so on any terms more beneficial to such third party than was offered to United.

**XVIII.** **CHANGE OF LAW** 

Notwithstanding anything herein to the contrary, in the event there is any change in the statutes governing the economic regulation of air transportation, or in the applicable rules, regulations or orders or interpretation of any such rule, regulation or order of the DOT or other department of the government having jurisdiction over air transportation, which change or changes materially affect the rights or obligations of either party hereto under the terms of this Agreement, then the parties hereto will consult, no later than thirty (30) days after any of the occurrences described herein, in order to determine what, if any, changes to this Agreement are necessary or appropriate, including but not limited to the early termination of this Agreement. If the parties hereto are unable to agree whether any change or changes to this Agreement are necessary and proper, or as to the terms of such changes, or whether this Agreement should be terminated in light of the occurrences described above, and such failure to reach agreement continues for a period of thirty (30) days following the commencement of the consultations provided for by this **Article XVIII**, then this Agreement may be terminated by either party immediately upon providing the other party thirty (30) days' prior written notice of such termination. Any such termination will be without additional obligation or liability to both parties except that such termination will not relieve either party of any debt or obligation, monetary or otherwise, accruing hereunder prior to the effective date of termination.

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**XIX.** **TAXES, PERMITS AND LICENSES** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. TRANSACTION TAXES** 

Contractor agrees to indemnify and hold United harmless from any and all penalties or interest arising out of any real and personal property, sales and use, occupational, gross receipts, value added, income, franchise and any other taxes, customs, duties, excise taxes, fees, charges or assessments, of any nature whatsoever imposed by any federal, state, local or foreign government or taxing authority upon Contractor or United with respect to Contractor's performance of this Agreement, or to Contractor's operations, or the equipment contained therein or services provided thereby, or the revenues derived therefrom (except for penalties or interests arising out of any tax upon or measured by United's revenues, net income or any franchise tax). If a claim is made against United for any penalties or interest referred to above, United will promptly notify Contractor and request payment of such claim. If requested by Contractor in writing, United will upon receipt of indemnity and evidence that Contractor has made adequate provision for the payment of such penalties or interest, reasonably satisfactory to United, contest the validity, applicability or amount of such penalties or interest, taxes and other charges at Contractor's expense. Contractor shall pay United upon demand for all expenses incurred (including, without limitation, all costs, expenses, losses, legal and accountants' fees, penalties and interest) in making payment, in protesting or seeking refund of such penalties or interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. PAYROLL TAXES** 

Contractor acknowledges that it is responsible for and will pay to the appropriate authority, and will indemnify and hold United harmless from, any and all federal or state payroll taxes, FICA, unemployment tax, state unemployment compensation contribution, disability benefit payments, insurance costs and any other assessments or charges which relate directly or indirectly to the employment by Contractor of Contractor's employees. United acknowledges that it is responsible for and will pay to the appropriate authority, and will indemnify and hold Contractor harmless from, any and all federal or state payroll taxes, FICA, unemployment tax, state unemployment compensation contribution, disability benefit payments, insurance costs and any other assessments or charges which relate directly or indirectly to the employment by United of United's employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. PERMITS AND LICENSES** 

Contractor will comply with all federal, state and local laws, rules and regulations, will timely obtain and maintain any and all permits, certificates or licenses necessary for the full and proper conduct of its operations, and will pay all fees assessed for airport use including but not limited to landing fees, user airport fees and prorated airport facility fees. Contractor further agrees to comply with all mandatory resolutions issued by the Air Transport Association of America (**"ATA"**) and all non-binding recommended resolutions of the ATA, which are adopted by United.

**XX.** **REVIEW** 

During the term of this Agreement United may, at any time at its discretion, require a joint review of Contractor's aircraft and facilities to determine whether Contractor's United Express Services are meeting the requirements of this Agreement. Such review can include an obligation for Contractor to respond to information requests and to provide relevant documents. This review is not intended nor shall it be construed to relieve Contractor of its responsibility to provide a quality and airworthy aircraft that satisfies all FAA regulations. In addition, upon request by United, within thirty (30) days after each calendar quarter United and Contractor will meet to review Contractor's United Express Services during the preceding calendar quarter.

------

**XXI.** **JURISDICTION** 

With respect to any lawsuit, action, proceeding or claim relating to this Agreement or any other agreement between United and Contractor (hereinafter, any such lawsuit, action, proceeding or claim is referred to as a **"Lawsuit"**), each of the parties hereto irrevocably (i) submits to the exclusive jurisdiction of the courts of the State of Illinois and the United States District Court located in the City of Chicago, Illinois, and (ii) waives any objection which it may have at any time to the laying of venue of any Lawsuit brought in any court, waives any claim that any Lawsuit has been brought in any inconvenient forum, and further waives the right to object, with respect to any Lawsuit, that such court does not have jurisdiction over such party. Nothing in this Agreement precludes either party hereto from bringing Lawsuits in any other jurisdiction in order to enforce any judgment obtained in any Lawsuit referred to in the preceding sentence, nor will the bringing of such enforcement Lawsuit in any one or more jurisdictions preclude the bringing of any enforcement Lawsuit in any other jurisdiction.

**XXII.** **NOTICES** 

Any and all notices, approvals or demands required to be given in writing by the parties hereto will be sufficient if sent by facsimile, certified mail, postage prepaid, overnight delivery by a nationally recognized delivery company or hand delivery, to United, addressed to:

United Air Lines, Inc.

1200 E. Algonquin Road

Elk Grove Township, Illinois 60007

Attn: – Director, United Express

Fax: 847-364-6728

and to Contractor, addressed to:

Shuttle America Corp.

8909 Purdue Road, Suite 300

Indianapolis, Indiana 46268

Attn: Chief Executive Officer

Fax: 317-484-6047

With a copy to:

Wexford Capital LLC

411 West Putnam Avenue

Greenwich, CT 06830

Attn: President & General Counsel

Fax Nos.: 203-862-7320

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;203-862-7310

or to such other addresses in the continental United States as the parties may specify in writing.

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**XXIII.** **APPROVALS AND WAIVERS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.** Whenever this Agreement requires the prior approval or consent of United, Contractor will make a timely request to United therefore and the consent will be obtained in writing. United will also consider, in its sole discretion, other reasonable requests individually submitted in writing by Contractor for United's consent to a waiver of any obligation imposed by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.** United assumes no liability or obligations to Contractor by providing any waiver, approval, consent or suggestion to Contractor in connection with this Agreement, or by reason of any neglect, delay or denial of any request therefore.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C.** Except as otherwise provided for in this Agreement, no failure by either party to execute any power reserved to it by this Agreement, or to insist upon strict compliance by the other party with any obligation or condition hereunder, and no custom or practice of the parties at variance with the terms hereof will constitute a waiver of such party's right to demand exact compliance with any of the terms herein. Waiver by such party of any particular default by the other party will not affect or impair such party's rights with respect to any subsequent default of the same, similar or different nature, nor will any delay, forbearance or omission of such party to exercise any power or right arising out of any breach or default by the other party of any of the terms or provisions hereof will affect or impair such party's right to exercise the same or constitute a waiver by such party of any right hereunder or the right to declare any subsequent breach or default and to terminate this Agreement prior to the expiration of its term. Subsequent acceptance by such party of any payments due to it hereunder will not be deemed to be a waiver by such party of any preceding breach by the other party of any terms, covenants or conditions of this Agreement.

**XXIV.** **GOVERNING LAW** 

This Agreement and any dispute arising hereunder, including any action in tort, will be governed by and construed and enforced in accordance with the internal laws of the State of Illinois.

**XXV.** **CUMULATIVE REMEDIES** 

Unless and to the extent as may be otherwise expressly stated in this Agreement, no right or remedy conferred upon or reserved to Contractor or United by this Agreement is intended to be, nor shall be deemed, exclusive of any other right or remedy herein or by law or equity provided or permitted, but each will be cumulative of every other right or remedy.

**XXVI.** **FORCE MAJEURE** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. FORCE MAJEURE.** 

Neither party shall be liable for delays or failure in performance hereunder caused by acts of God, acts of terrorism or hostilities, war, strike, labor dispute, work stoppage, fire, act of government, court order or any other cause, whether similar or dissimilar, individually or collectively, "Force Majeure" events beyond the control of Contractor or United.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. EFFECT ON MARKUP.** 

In the event of a Force Majeure or other disruption resulting in at least a one-day suspension of greater than [\*\*\*] of Contractor's United Express scheduled flights for a period of more than [\*\*\*], United retains the right to reduce Contractor's Markup to [\*\*\*] for A, B, or C level performance, and to [\*\*\*] for D level performance, for the lesser of the duration of effect of the Force Majeure event or [\*\*\*]. The adjusted Markup under a Force Majeure event will be part of a broader United Express program where all carriers provide assistance at levels that are proportionate to their United Express operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. FIXED AND OVERHEAD REDUCTION.** 

In the event of a Force Majeure event, resulting in a suspension of greater than [\*\*\*] of Contractor's United Express scheduled flights for a period of more than [\*\*\*], upon providing prior written notice to Contractor United shall have the right after the date of such notice to apply an equivalent percentage reduction to all Fixed and Overhead cost categories (Non-Aircraft), for the duration of the Force Majeure event. This reduction will become permanent in the event a permanent schedule reduction is necessary. The reduction in fixed and overhead costs under a Force Majeure event will be part of a broader United Express program where all carriers provide assistance at levels that are proportionate to their United Express operations.

**XXVII.** **SEVERABILITY AND CONSTRUCTION** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.** Each term or provision of this Agreement will be considered severable, and if, for any reason, any such term or provision herein is determined to be invalid and contrary to, or in conflict with, any existing or future law or regulation by a court or agency having valid jurisdiction, such will not impair the operation of, or have any other effect upon, other terms or provisions of this Agreement as may remain otherwise enforceable, and the latter will continue to be given full force and effect and bind the parties hereto, and said invalid terms or provisions will be deemed not to be a part of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.** The captions appearing in this Agreement have been inserted for convenience only and will not control, define, limit, enlarge or affect the meaning of this Agreement or any of its provisions.

**XXVIII.** **ACKNOWLEDGMENT** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.** Each party expressly disclaims the making of, and acknowledges that it has not received, any warranty or guarantee, express or implied, as to the potential volume, profits or success of the business venture contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.** Each party acknowledges that it has received, read and understood this Agreement and the Appendices hereto.

**XXIX.** **CONFIDENTIALITY** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.** Except as required by law (including federal or state securities laws or regulations) or by the rules and regulations of any stock exchange or association on which securities of either party or any of its affiliates are traded, or in any proceeding to enforce the provisions of this Agreement, or is required in connection with a S-1 filing with redactions as agreed upon by both parties, United and Contractor hereby agree not to publicize or disclose to any third party the terms or conditions of this Agreement or any of the Related Agreements without the prior written consent of the other parties thereto.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.** Except as required by law (including federal or state securities laws or regulations) or by the rules and regulations of any stock exchange or association on which securities of either party or any of its affiliates are traded, or in any proceeding to enforce the provisions of this Agreement, United and Contractor hereby agree not to disclose to any third party any confidential information or data, both oral and written, received from the other and designated as such by the other without the prior written consent of the party providing such confidential information or data.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C.** If either party is served with a subpoena or other process requiring the production or disclosure of any of the agreements, information or data described in **Article XXVIII.A** or **Article XXVIII.B**, then the party receiving such subpoena or other process, before complying with such subpoena or other process, shall immediately notify the other party of same and permit said other party a reasonable period of time to intervene and contest or limit disclosure or production, and upon the request of such party shall cooperate with any such effort to contest or limit disclosure or production.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D.** Upon termination of this Agreement, each party must return to the other any confidential information or data received from the other and designated as such by the party providing such confidential information or data which is still in the recipient's possession or control.

**XXX.** **RELATED AND THIRD PARTY AGREEMENTS** 

United and Contractor shall enter into agreements listed below in this **Article XXX** (the "**Related Agreements**"). All such Related Agreements will automatically terminate contemporaneously with the termination of this Agreement unless termination shall otherwise be effected in accordance with the terms of such Related Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Reciprocal Interline Agreement/Space Available Employee and Eligible Travel Agreement (United Contract No. 165980)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. United Express Positive Space Travel Agreement (United Contract No. 165979)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Emergency Response Agreement (United Contract No. 165981)

**XXXI.** **ENTIRE AGREEMENT** 

This Agreement, together with the Related Agreements, including any Appendices, Attachments and Exhibits attached hereto and thereto, contains the complete, final and exclusive agreement between the parties hereto with respect to the subject matter hereof, and supersedes all previous agreements and understandings, oral and written, with respect to such specific matter and said Agreement will not be modified, amended or terminated by mutual agreement or in any manner except by an instrument in writing, executed by the parties hereto.

**XXXII.** **REFERENCES TO TIME PERIODS** 

All references to the term **"year"** in this Agreement shall mean contract year unless specifically stated otherwise. All references to the term **"month"** in this Agreement shall mean a full calendar month; provided that if the Effective Date shall be other than the first day of a calendar month, then the first **"month"** of this Agreement shall commence on the Effective Date and end on the last day of the month in which the Effective Date occurs. All references to the term **"quarter"** in this Agreement shall mean a calendar quarter; provided that the first **"quarter"** of this Agreement shall commence on the Effective Date and terminate on the last day of the calendar quarter in which the Effective Date occurs. Calendar quarters shall be January 1 through March 31, April 1 through June 30, July 1 through September 30, and October 1 through December 31.

------

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

---

| | | | |
|:---|:---|:---|:---|
| **SHUTTLE AMERICA CORP.** | **SHUTTLE AMERICA CORP.** | **UNITED AIR LINES, INC.** | **UNITED AIR LINES, INC.** |
| By: | /s/ Bryan K. Bedford | By: | /s/ Frederic F. Brace |

---

Name: Bryan K. Bedford Name: Frederic F. Brace <br> Title: Chief Executive Officer Title: Executive Vice President and Chief Financial Officer

---

| | |
|:---|:---|
| Accepted & Agreed<br> as to Sections XVII B & C only | Accepted & Agreed<br> as to Sections XVII B & C only |
| **REPUBLIC AIRWAYS HOLDINGS INC.** | **REPUBLIC AIRWAYS HOLDINGS INC.** |
| By: | /s/ Bryan K. Bedford |

---

Name: Bryan K. Bedford <br> Title: Chief Executive Officer

------

**<u>APPENDIX A</u>**

**<u>UNITED MARKS</u>**

UNITED EXPRESS

Stylized UNITED EXPRESS lettering

UNITED EXPRESS colors

Stylized letters UA

Uniform Design

Aircraft exterior and interior color decor

Other United Marks approved by United for use by Contractor

------

**<u>APPENDIX B</u>**

**<u>RJ- 70FLEET PLAN</u>**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Units** | **In-Service** | **Spare** | **Total<br>Deliveries** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Delivery Dates: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10/17/2004 | 3 | 2 | 1 | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11/1/2004 | 2 | 4 | 1 | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11/21/2004 | 2 | 6 | 1 | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12/1/2004 | 1 | 7 | 1 | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12/19/2004 | 2 | 9 | 1 | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1/2/2005 | 2 | 11 | 1 | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1/16/2005 | 1 | 12 | 1 | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2/1/2005 | 1 | 13 | 1 | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3/1/2005 | 1 | 14 | 1 | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4/1/2005 | 1 | 15 | 1 | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5/1/2005 | 1 | 16 | 1 | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6/1/2005 | 1 | 17 | 1 | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6/12/2005 | 1 | 18 | 1 | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7/1/2005 | 1 | 19 | 1 | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6/7/2005 | 1 | 19 | 2 | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6/25/2005 | 1 | 20 | 2 | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7/1/2005 | 1 | 21 | 1 | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sep-05 | 1 | 22 | 1 | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Oct-05 | 1 | 23 | 1 | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nov-05 | 1 | 24 | 1 | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nov-05 | 1 | 25 | 1 | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dec-05 | 1 | 26 | 1 | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total** | **28** | **26** | **2** | **28** |

---

Note: Contractor shall not be liable for any aircraft delivery delays resulting from verifiable manufacturer caused actions.

------

**<u>APPENDIX C</u>**

**<u>GROUND HANDLING\*\*\*</u>**

Table left intentionally blank

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Airport** | **Customer Service/<br>Ticket Counter\*** | **Customer**<br> **Service/Gates** | **Ground**<br> **Handling/Ramp** | **Receipt/Dispatch** |

---

*\** *Includes Small Package Dispatch (SPD)* 

*\*\*\** *For purposes of the table above, Contractor or United, as applicable, shall provide or cause to be provided the designated services as shown in the table.* 

------

**<u>APPENDIX D</u>**

**<u>Contractor Support Services</u>**

At all locations not set forth on **Appendix C** where Contractor operates scheduled air transportation as a United Express Carrier (i.e., Contractor Locations), Contractor will provide the following minimum services:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Contractor's employees shall be fully qualified personnel to handle Contractor's operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Posting of signage and decor appointment as specified by United.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Adequate check-in areas including passenger waiting room facilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Security facilities, personnel and passenger screening procedures as are required by applicable orders, rules and regulations of the FAA or other government agencies and those standards specified by United.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Capability of operating Automation Equipment (Apollo Services) for the purpose of providing passenger processing and operations in the configuration and under the procedures specified by United.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Baggage handling, delivery and tracing in accordance with procedures issued by United.

------

**<u>APPENDIX E</u>**

**<u>REIMBURSEMENT CATEGORIES</u>**

CARRIER CONTROLLED COSTS IN 2005 ECONOMICS

United shall pay Contractor the following Reimbursement Category Unit Rates for Contractor's United Express flights operated using the aircraft set forth below:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **[\*\*\*]** | **[\*\*\*]** | **[\*\*\*]** | **[\*\*\*]** | **[\*\*\*]** |
|  |  |  | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |

---

------

**<u>REIMBURSEMENT CATEGORIES</u>**

***PASS-THRU COSTS***

---

| | | | |
|:---|:---|:---|:---|
| **[\*\*\*]** | **[\*\*\*]** | **[\*\*\*]** | **[\*\*\*]** |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |

---

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**<u>DEFINITIONS</u>**

**Descriptions of Carrier Controlled Costs** 

**General Statement:** Notwithstanding the following descriptions, any costs incurred by Contractor that are described as Pass-Through Costs on this Exhibit E shall not be considered Carrier Controlled Costs. Any costs incurred by Contractor that are not Pass-Through Costs under the Agreement, regardless of whether such costs are described below, shall be considered Carrier Controlled Costs, except for those costs that are typically considered the responsibility of the Ground Handling Provider as defined in United's contracts for ground handling services. The characterization of any cost as a Carrier Controlled Cost in the following descriptions shall not impair any provision of the Agreement that specifically requires United to reimburse Contractor for such cost.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) Flight Crews (Captains, First Officers and Flight Attendants)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Wages, benefits (including health insurance, pensions, 401k, and any other benefits), payroll associated taxes and incentives (premiums for longevity, geography, certificates/licenses, profit sharing, bonuses and any other incentives) for all paid hours (including but not exclusive of hours for reserve employees, overtime, vacation, holidays, sick days, and paid leave) for the following work categories:

ii) Pilots and Flight Attendants for all equipment types, including reserve crews and any other crews on the Contractor payroll.

iii) Pilot and Flight Attendant Administration and Management, including senior management crew scheduling, labor relations management.

iv) Domicile administration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) All uniform related charges for all of the above work categories, including purchase, repair, and cleaning charges.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) All training associated with the work groups above, including but not exclusive of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v) Recurring and Attrition: Any training expense that occurs annually for all types of employees, new planes or attrition. Includes Labor payments to those employees being trained (including all types of charges mentioned in paragraph i.a), trainer time and salary, equipment and facility rental, training administration costs associated with recurring training, and any training materials required. Excludes expenses associated with bringing new aircraft into the system.

vi) Ramp-up: Training expense that occurs due to new planes taken on. Includes Labor payments to those employees being trained (including all items in paragraph i.a); Trainer time and salary; Equipment and facility rental; Training administration costs associated with one-time training; Any training materials required; Uniforms & headsets; Pilot navigational charts.

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vii) Maintenance:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Maintenance labor for all labor categories of aircraft mechanics, (e.g., engine specialists, parts clerks, etc.), including base wages, benefits, payroll associated taxes and incentives (premiums for longevity, geography, certificates/licenses, profit sharing, bonuses and any other incentives) for all paid hours (including but not exclusive of overtime, holidays, vacation, sick days and paid leave).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Maintenance Overhead: All hangar, parts/storage shop and maintenance management office rent and maintenance facility charges. All sundry and clerical items associated with the management of Contractor's maintenance function, including but not exclusive of office supplies and furniture, maintenance schematic drawings and manuals, maintenance IT hardware/software.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Maintenance Management Overhead: Labor for all management and administration associated with the Contractor's management of the maintenance function, including base wages, benefits, payroll associated taxes and incentives (including premiums for longevity, geography, certificates/licenses, profit sharing, bonuses and any other incentives) for all paid hours (including but not exclusive of overtime, vacation, holidays, sick days and paid leave).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Outsource Maintenance Services: All charges net of warranty reimbursement for any and all services and/or products (including but not exclusive of components, line, engine, airframe, C&D checks, avionics, APU) provided by a third party for the maintenance of Contractor's aircraft or maintenance functions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) Other Maintenance: Parts, spares, tools, equipment and any other personnel, service or material expenses, associated with the maintenance of Contractor's aircraft or maintenance functions.

viii) Operations

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) RON (Remain Over Night): Hotel, transportation, and per diem for all pilots and flight attendants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Interrupted Trip Expense: Includes all mishandled bag related expenses and all hotel, transportation and meal accommodation expenses for any passenger traveling on Contractor's flights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Catering and on-board services: Includes all cost associated with providing food (snack and beverage service) for passengers, excluding liquor. This includes but is not limited to costs for the food and beverages, catering supplies

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Crew Scheduling: Labor for all management and administration associated with the Contractor's crew scheduling function, including base wages, benefits, payroll associated taxes and incentives (including premiums for longevity, geography, certificates/licenses, profit sharing, bonuses and any other incentives) for all paid hours (including but not exclusive of overtime, vacation, holidays, sick days and paid leave). All Information Technology related charges (e.g., systems, software and hardware) and other costs associated with crew scheduling functions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) Dispatch/flight operations center: Flight operations center and all costs associated with it including personnel, facilities, management and systems.

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ix) Corporate Overhead

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Headquarters Facilities: All corporate real estate rent and associated facility charges

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Management overhead: Labor for all management and administration whether or not based in Indianapolis, Indiana, including base wages, benefits, payroll associated taxes and incentives (including premiums for longevity, geography, certificates/licenses, profit sharing, bonuses and any other incentives) for all paid hours (including but not exclusive of overtime, vacation, holidays, sick days and paid leave).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Other: Out-sourced corporate overhead services (e.g., consulting, legal expenses), other depreciation and any other overhead costs spread over multiple cost categories (e.g., memberships, office supplies, employee testing, IT, insurance costs that are not Pass-Through Costs, other repairs and maintenance, software licensing, parking, safety office, flight standards, communications, etc.); includes non-aircraft interest expense, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;x) Aircraft Ownership

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) All charges, except Aircraft Property Taxes (as described in the description of Pass- Through Costs), associated with aircraft ownership including but not exclusive of lease, depreciation, other financing expense, and related start-up costs (including painting).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) All spare engine ownership expense

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Hull Insurance – consists of premiums and other charges of insurers for Aircraft Hull All Risks Insurance as described in the Agreement, plus fees and expenses of insurance brokers in connection with the procurement or maintenance of such insurance, and surplus lines tax.

**Descriptions of Pass-Through Costs** 

1. Fuel and Oil – consists of the cost of all aircraft fuel and oil, plus fuel flow charges, into-plane fees, and de-fueling charges, and all applicable taxes on any of the foregoing.

2. Landing Fees – consists of all airport landing fees, Aircraft Rescue Fire Fighter (ARFF) charges or similar charges, apron fees, and any other fees charged by airport operators to cover airfield costs or other airport facilities.

3. War Risk Insurance – consists of premiums and other charges of insurers for War Risk and Allied Perils Insurance, plus fees and expenses of insurance brokers in connection with the procurement or maintenance of such insurance.

4. Liability Insurance – consists of premiums and other charges of insurers for all other liability insurance as described in the Agreement, plus fees and expenses of insurance brokers in connection with the procurement or maintenance of such insurance.

5. Aircraft Property Taxes – consists of all property taxes (however designated, including excise or franchise taxes imposed on the ownership of property, ad valorem taxes, and special assessments or levies) related to aircraft, spare parts and engines.

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6. Security Charges – consists of all charges imposed by governmental agencies, including the Transportation Security Administration (TSA) or any other entity performing functions of the TSA, or by any third-party contractor of any governmental agency, with respect to airport security services

7. Engine LLP Coverage – a part with a limitation on use stated in cumulative engine flight hours or cycles, established by the OEM or the Federal Aviation Administration.

8. [\*\*\*]

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**<u>APPENDIX F</u>**

**<u>INCENTIVE PROGRAM</u>**

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**<u>APPENDIX G</u>**

**<u>LIABILITY INSURANCE</u>**

Issued by:

Date of Issue:

THIS IS TO CERTIFY TO: UNITED AIR LINES, INC.

that Insurers are providing 100% of the following Aircraft Hull & Liability Insurances:

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| | |
|:---|:---|
| NAME INSURED: |  |
| PERIOD OF INSURANCE: |  |
| INSURERS: |  |
| POLICY NUMBER: |  |
| GEOGRAPHICAL LIMITS: | Worldwide Hull War limited to Western Hemisphere with commercial and or FAA provided insurance; territorial limitations not defined in FAA policy. |
| AIRCRAFT INSURED: | All aircraft owned or operated by the Named Insured. |
| DESCRIPTION OF COVERAGE: | Comprehensive Airline Liability Insurance, Contractual Liability, including Aircraft Liability, Passenger Liability, War Risk should the FAA stop carrying it, including both Passengers and Other Third Parties, Cargo Liability and Comprehensive General Liability, including Hangarkeepers, Excess Automobile, Host Liquor Liability, Personal Injury, and Products Liability/Completed Operations coverage. All Risk Physical Damage Hull Coverage. |
| LIMIT OF LIABILITY | Combined Single Limits to be specified consistent with Article I.2.1. Aircraft Hull All Risk per the Agreed Value, or up to $300,000,000 per added aircraft. |
| <u>SPECIAL PROVISIONS</u>: |  |

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The insurers agree that coverage under this policy, by formal endorsement or otherwise, is extended to insure all relevant terms and conditions of the United Express Agreement, subject to the policy terms, conditions, limitations and exclusions, between Contractor and United concerning Contractor's Aircraft, (hereinafter referred to as "Agreement"), including, inter alia:

1. The Insurers accept and insure the Indemnity and Hold Harmless provisions of the Agreement, subject to the policy terms, conditions, limitations and exclusions.

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2. United, its affiliates, and their respective directors, officers, employees, agents and indemnitees are named as additional insureds to the extent of the liability assumed by Contractor under the Agreement, subject to the policy terms, conditions, limitations and exclusions.

3. The Insurers agree that United shall not be liable for, nor have any obligation to pay any premium due hereunder, and Insurers further agree that they shall not offset or counter-claim any unpaid premium against the interest of United.

4. The Insurers agree that all provisions of this insurance, except for the limits of liability, shall operate in the same manner as if there were a separate policy issued to each Insured.

5. The Insurers agree that this insurance shall be primary insurance without any right of contribution from any other insurance which is carried by United.

6. The Insurers agree to waive their rights of subrogation against United, its officers, directors, employees and indemnitees, to the extent the Contractor has waived and released its rights under the Agreement.

7. The Insurers agree that as respects the interest of United, its directors, officers, employees and indemnitees, this insurance shall not be invalidated by any action or inaction of the Contractor, its officers, directors or employees, and shall insure United, its directors, officers, employees and indemnitees regardless of any breach or violation of any warranties, declarations, conditions or exclusions contained in the policy by the Contractor, its officers, directors or employees.

8. In the event of cancellation for any reason whatever or if any change of a restrictive nature is made affecting the insurance certified hereunder, or if this insurance is allowed to lapse due to non-payment of premium, such cancellation, change or lapse shall not be effective as to United, its directors, officers, employees and indemnitees for at least thirty (30) days (ten (10) days in the case of non-payment of premiums, seven (7) days notice of cancellation with respect to war risk) after written notice by registered mail of such cancellation, change or lapse shall have been mailed to United.

9. With respect to claims or causes of action in favor of United or its directors, officers, agents or employees, they shall not be considered as additional insured thereunder.

**Dated:<u> </u>** 

**Authorized Representative:<u> </u>** 

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**<u>APPENDIX H</u>**

**<u>SAFETY STANDARDS FOR UNITED AIRLINES AND UNITED EXPRESS CARRIERS</u>**

We have developed common safety standards to evaluate and effectively manage safety. We will commit to:

Contractor represents and warrants that it is in compliance with the U.S. Department of Defense (DoD) Quality and Safety Requirements (and any other applicable governmental quality or safety requirement) and continues to comply with all applicable Federal Aviation Regulations (F.A.R.). Contractor further warrants that it shall maintain compliance with these requirements for the term of this Agreement. Any failure to maintain such compliance shall immediately be brought to United's attention together with the corrective actions taken by Contractor or a correction action plan. Any non-compliance with any safety requirements or corrective action plans shall be grounds for partial or complete suspension or termination by United, without further liability, of this Agreement or any of the terms or conditions of this Agreement; but, with reservation of all other rights and remedies available to United. Additional safety reviews and audits may be required at United's discretion and Contractor shall cooperate with all such reviews and audits.

In addition, Contractor agrees to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Mutual support of one another in implementing these standards by sharing safety data, information and expertise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Quality maintenance and operations training programs

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A carrier internal evaluation program to monitor key safety issues, including maintenance practices, required
inspection items, technical document control, dangerous goods handling, training records and qualifications for all personnel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Quality programs to manage outsourcing of services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A formalized maintenance quality assurance program.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Implementation of a program to rectify FAA inspection findings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Presence of a voluntary disclosure program.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Formal process to routinely bring safety and compliance issues to the attention of carrier's senior
management.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Anonymous safety hazard reporting system.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A Senior Management policy statement supporting open safety reporting by employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Director of Safety, reporting to the highest levels of management, overseeing the carrier's safety programs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Process for managing required corrective actions from FAA and internal audit program as well as employee
disclosure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Ongoing flight safety education/feedback program.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Ground safety program in airport operating areas.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Incident investigation process that includes accountability, recommendations and actions taken.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Establishment and maintenance of emergency response procedures and manual.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Participation in UAL/industry safety information exchange forum.

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**<u>APPENDIX I</u>**

**<u>UNITED EXPRESS SERVICE STANDARDS</u>**

These Service Standards are meant to provide an overview for United Express carriers of the service expectations established by United Airlines for the day-to-day delivery of United's product. This document is not intended to be an all inclusive manual of regulations, but to instead serve as a simple, helpful source of information. The Service Standards outlined herein may change from time to time, subject to the needs of the operation and our product delivery objectives. Any changes to these standards are at the sole discretion of United Airlines and are not subject to contractual negotiations as to United's right to change the standards. Provided, however, since the parties have agreed to specific compensation formulas and performance goals in this Agreement, it follows that the parties would agree that the standards shall not be altered or changed, if such changes would affect the Contractor's economics within the Agreement. If such changes are mutually deemed by United and the Contractor to materially affect the economics of the Agreement, then the parties will agree upon the economic changes required to compensate the Contractor for the change in the standards. If, after 30 days, no agreement can be reached between the parties as to either materiality or cost impact, an independent arbitrator will be mutually agreed to and assigned to settle the dispute.

It is the responsibility of each United Express carrier to maintain an adequate number of employees at each station to operate in a safe and reliable manner, which serves the customer at the levels of service outlined by these Service Standards.

**CUSTOMER SERVICE** 

<u>Uniforms:</u> United Express employees are required to wear the United designated uniform for Customer Service personnel. There is to be no deviation from this uniform and it is to be worn at all times while on duty. Employees in uniform, on or off duty are not allowed to drink intoxicating beverages, give the appearance of being intoxicated or visit any establishment whose primary purpose is to dispense liquor (e.g. bars, saloons, cocktail lounges, liquor stores). "Uniform" refers to any uniform apparel bearing the United brand or insignia, or which can be in any way identified with United Airlines or United Express. Because the actions and appearance of employees influence, to a considerable extent, the public's opinion of the United brand, uniformed employees must be mindful of this and conduct themselves accordingly. For complete information on the uniform and accessory items, review the Customer Service Uniform Appearance Guidelines.

United may elect to change the United Express uniform from time to time, and may request that old uniform items be eliminated as an approved uniform item. Following such a change in the designated uniform, United will compensate the Contractor and/or its employees for the value lost on the retired uniform item(s).

<u>Training:</u> Each United Express carrier is responsible to train all Customer Service Representative (CSR) employees of the Contractor, including employees of another carrier who may be contracted to perform these duties on behalf of the Contractor, using the same training modules and computer assisted training provided by United Airlines. This training will include, but is not limited to, all functional aspects for customer handling at the ticket counter, gate, or baggage service The Contractor, in stations where the Contractor is not the United designated United Express Customer Service provider, will be responsible for the training the employees of the designated Customer Service provider regarding the difference in the Contractors procedures and policies, and the handling of the Contractors Aircraft.

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United Airlines will provide the necessary "Train the Trainer" support, but it is the responsibility of each United Express carrier to maintain trainer proficiency, knowledge and skill level.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Each new hire or newly assigned CSR of the Contractor, must receive formal Express customer service training as
soon as possible, but not later than 30 days from the date of employment or 30 days after his or her assignment. In either case, training must be specific to the employee's job function and task assignment. An employee may not work in an area
in which he or she has not been properly trained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Each CSR of the Contractor must maintain proficiency in product knowledge, delivery and skill level.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Each United Express carrier may add to the United training curriculum to meet its individual carrier needs, but
it may not delete any portion of the United designated curriculum without written approval by United Airlines.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• All CSRs of the Contractor must complete TL17/17 lessons each week within 7 days of issuance.

<u>Service Delivery:</u> In the most basic interaction with the customer, United's service standards encompass the foundation of service, which is: 1) Greet the customer. 2) Use the customer's name. 3) Listen to the customer and respond to their needs. 4) Give direction to the next step. 5) Acknowledge the customer's importance to United and thank them for flying United Express.

<u>Goals:</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Lobby line wait time: 10 minutes

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Jet bridge delivery time: 1 minute

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Meet the inbound aircraft (non-jet bridge locations) and open aircraft
passenger door within 2 minutes of block time.

<u>Service Tools:</u> Customer Problem Resolution, or CPR, was created as a means to provide customer service employees with the ability to resolve customer problems on the spot, as they occur. CPR may include certificates for a free drink, a credit of Mileage Plus miles to a customer's Mileage Plus account, or a Travel Certificate to be used towards the purchase of future airline tickets. Other tools may also include accommodation vouchers for hotels, cab/bus, or meals. It is the responsibility of the Express carrier to use and manage these tools within United Airlines guidelines. The Express carrier is accountable for the safeguarding and appropriate use of these very important customer tools. As long as CPR tools are used appropriately, the Contractor will not be charged by United for the cost associated with such usage.

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<u>Flight Close Out:</u> In any city in which the Contractor is hired to perform ground handling, the Contractor is responsible for ensuring all flights are closed out in Apollo/ACI immediately after departure. This includes making the appropriate PB, PFS and PD entries. All passenger counts, including revenue and non-revenue passengers, denied boardings, as well as an accounting of any bags held off due to weight/space restrictions, should be noted in the open comments field of the flight close out message. Flight close out must be completed within 10 minutes of flight departure.

<u>Flight Information (FLIFO):</u> All flights must be updated with OUT/OFF/ON/IN times within ten (10) minutes of actual occurrence to ensure accurate information to customers and to employees making operational decisions. The ground handling agent must also enter all ETAs and ETDs within ten (10) minutes of the scheduled departure/arrival, and at every 10 minute interval thereafter for ongoing or rolling delayed flights.

<u>Customer Service Supplies:</u> A carrier designated by United to perform Customer Service functions at a location must maintain an adequate amount of Customer Service supplies to conduct its day-to-day business operation. Such carrier will use United Airlines designated supplies and vendors and is responsible for the purchase of those supplies, except where United handles that carrier.

**RAMP SERVICE** 

<u>Uniforms:</u> United Express employees are required to wear the United designated uniform for Ramp Service personnel. There is to be no deviation from this uniform and it is to be worn at all times while on duty. Employees in uniform, on or off duty are not allowed to drink intoxicating beverages, give the appearance of being intoxicated or visit any establishment whose primary purpose is to dispense liquor (e.g. bars, saloons, cocktail lounges, liquor stores). "Uniform" refers to any uniform apparel bearing the United brand or insignia, or which can be in any way identified with United Airlines or United Express. Because the actions and appearance of employees influence, to a considerable extent, the public's opinion of the United brand, uniformed employees must be mindful of this and conduct themselves accordingly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In a line station, employees may combine pieces of the customer service uniform with pieces of the ramp uniform
as long as the shirt or blouse is either the customer service shirt or blouse, or the ramp knit shirt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In a hub station, ramp personal must wear combinations of the United ramp uniform only.

For a review of the Ramp Service uniform, review the Ramp Service Uniform Guide.

United may elect to change the United Express uniform from time to time, and may request that old uniform items be eliminated as an approved uniform item. Following such a change in the designated uniform, United will compensate the Contractor and/or its employees for the value lost on the retired uniform item(s).

<u>Training:</u> It is the responsibility of each Express carrier to train its Ramp Service employees including employees of another carrier who may be contracted to perform these duties on behalf of the Contractor. This training will include, but is not limited to, load planning, baggage handling, ramp safety and security, ramp driving, aircraft familiarization, aircraft servicing, receipt and dispatch of aircraft, baggage make-up, baggage transfer, claim area delivery, baggage scanning, live animal handling, dangerous goods and aircraft de-icing. The Contractor, in stations where the Contractor is not the United designated United Express Ramp Service provider, will be responsible for the training the employees of the designated Ramp Service provider regarding the difference in the Contractors procedures and policies, and the handling of the Contractors Aircraft.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Each new hire, or newly assigned Ramp Service employee of the Contractor, must receive formalized training as
soon as possible, but not later than 30 days after his or her date of employment or date of assignment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Each Ramp Service employee of the Contractor must maintain product and delivery proficiency, knowledge and skill
level.

<u>Baggage Transfer:</u> In a Hub or connecting station, the United designated Ramp Service provider is responsible for the transfer of all baggage/mail/cargo to United, other United Express carriers and other airlines. Transferred bags are delivered as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Carry-on (security checked) bags placed in the pit/hole, are to be
removed and delivered to the customers immediately at planeside.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 'City Bags' are to be delivered directly to the baggage claim area.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 'Hot Bags', whose window of time is determined on a local level by United Airlines, are to be delivered
to the connecting flight at the gate. The gate drop point is to be determined locally by United.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 'Cold Bags', bags outside the Hot Bag window, are to be delivered to the designated sorter belt or
transfer point.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 'Interline Bags' (non United or United Express connecting bags) are to be delivered to the designated
interline drop point.

<u>Goals for the United Designated Ramp Service Provider:</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Claim Area Baggage Delivery:* Priority Bags delivered First; Last City bag delivered within 20 minutes of
flight Block time

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Scanning:* 97% scanning rate uploaded within 10 minutes of departure of each flight

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *MBTA (Mishandled Baggage Trend Analysis or the ratio of passengers mishandled per 1000 boarded.):* Rates
are determined in conjunction with United's corporate goal on an annual basis

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Message or meter to downline station with the transfer bag loading placements referred to as XBUE (Express Baggage loading message):* Sent within 10 minutes of the departure of each flight

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Baggage Loading Audits:* 95% compliance

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<u>Ground Handling:</u> United Express carriers are responsible for obtaining all applicable federal, state, and local regulatory approvals for conducting business at each location from which they operate. In addition, carriers will ensure their ground handling procedures will satisfy all federal, state, and local regulations. Each carrier will provide United with a copy of its station and ground handling procedures.

From time to time, it may become necessary for United to ground handle United Express, or on very limited occasions for United Express to handle United.. It is the responsibility of the Contractor to train the ground handling carrier in all aspects of the required work to be performed to support the Contractors procedures and policies, and the handling of the Contractors Aircraft. . Such work may include, but is not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Receipt and dispatch of aircraft, ramp safety, ramp driving, aircraft differences, aircraft servicing (potable
water and lavatory), aircraft cleaning, towing, baggage handling, baggage loading and transferring, live animal handling, deicing, weight and balance, and dangerous goods.

Required training may be done one-on-one, group, or train-the-trainer. In the case of train-the-trainer, it is then the responsibility of the ground-handling carrier to train other additional personnel. The ground handling carrier will ensure that proper training records are initiated, retained and current.

The ground-handling carrier will ensure that all required licenses and logs are maintained and retained as necessary.

Each carrier is responsible for acquiring its required licenses.

The ground handling carrier will cooperate with any required governmental or corporate inspection or audit, and will correct any deficiencies found in an immediate and timely manner.

The Contractor is responsible for managing all performance related criteria. However, the ground handling carrier will make every "best faith" effort to ensure that all performance requirements are met and that the operation of the Contractor is given the same priority as that given it's own operation and the operation of other United Express carriers.

The ground handler agrees to keep the Contractor informed of any deficiencies, irregularities and breach of procedures or problems of any type that may negatively impact the Contractor or carrier's certificate. Further, if an employee(s) of ground handler are found to be responsible for a breach that results in a fine to the Contractor, then United will use reasonable efforts to require the ground handling carrier to compensate the Contractor for the amount of the fine.

The ground handler will immediately advise the Contractor of any material change in space, parking location, manpower, or any other shortcoming that may impact its operation or costs. The ground handler will make every "best faith" effort to ensure that all performance requirements are met and that the operation of the Contractor is given the same priority as that given it's own operation and the operation of other United Express carriers.

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The ground handler will use its own ground equipment wherever possible. However, if specialized equipment (i.e. equipment specific to Contractor's operations of ERJ-170s as opposed to standard equipment required for the operation of ERJ-170s) for the Contractor's particular aircraft is needed, it is the responsibility of the Contractor to provide said equipment at no cost to the ground handler. However, United will compensate the Contractor for the cost of providing specialized equipment as defined above, provided United has the opportunity in advance to approve such specialized equipment.

**IN FLIGHT** 

<u>Uniforms:</u> United Express Flight Attendants are required to wear the United designated uniform. Notwithstanding this, United and the Contractor have agreed to modifications in the uniform requirements as outlined in Section VII.D of the Agreement. Employees in uniform, on or off duty are not allowed to drink intoxicating beverages, give the appearance of being intoxicated or visit any establishment whose primary purpose is to dispense liquor (e.g. bars, saloons, cocktail lounges, liquor stores). "Uniform" refers to any uniform apparel bearing the United brand or insignia, or which can be in any way identified with United Airlines or United Express. Because the actions and appearance of employees influence, to a considerable extent, the public's opinion of the United brand, uniformed employees must be mindful of this and conduct themselves accordingly. For complete information on the uniform and accessory items, review the Customer Service Uniform Appearance Guidelines.

United may elect to change the United Express uniform from time to time, and may request that old uniform items be eliminated as an approved uniform item. Following such a change in the designated uniform, United will compensate the Contractor and/or its employees for the value lost on the retired uniform item(s).

<u>Training:</u> It is the responsibility of each United Express carrier to train its own Flight Attendants in accordance with its FAA Certified program.

<u>In Flight Service:</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Wherever possible, snack and beverage items should be consistent with the products served by United Airlines.
United acknowledges that Contractor has priced its rates for in flight service to provide a soft drink and a peanut-like snack to each passenger. Any changes to this level of in flight service will require an adjustment to the catering cost
category.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Each United Express aircraft will be supplied by United with an adequate supply of Hemispheres and SkyMall
Magazines. United Express must place these two magazines in the designated seat pocket of each seat. Hemisphere and SkyMall magazines are the only magazines authorized in the seat pockets. Exceptions must be approved in writing by United

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In all on board announcements, it is appropriate to announce the United Express carrier's name, but the name
"United Express" must be included. For example, "On behalf of Shuttle America, we would like to thank you for flying United Express today".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• While the contract carrier provides basic announcements, United may request that United Express make promotional
announcements on behalf of United from time to time. Such requests will be honored and executed.

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**OPERATIONAL GOALS** 

There are four (4) primary operational Goals that each Express carrier is expected to achieve: On-time-zero; Controllable Completion (less Weather/ATC/UA Requested Cancellations); MBTA, and Repurchase Intent. These goals are set at the beginning of each calendar year and may be adjusted year over year. In addition, other target goals may be added to help improve the operation, such as: STAR, Arrival: 14, Block Time, etc. It is expected that each carrier use its "best faith effort" in achieving these goals, whether contractual or otherwise, provided that the addition or changes to the goals do not affect the economics of the Agreement. Such goals may be changed or added to, as operational needs demand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Controllable Completion:* The Controllable flight completion goal shall be defined as to exclude all
cancellations due to weather, ATC restrictions, acts or omissions caused by United or its employees or agents, cancellations resulting from emergency airworthiness directives, and requests made by United to cancel flights to free up ATC slots.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *On Time Zero:* The On Time Zero goal is the carriers system wide On Time Performance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Mishandled Baggage-MBTA:* (See above definition)

<u>Repurchase Intent (RPI) – Marketrak:</u> United Airlines receives feedback from our customers through the "Marketrak" survey program on their satisfaction in flying United Express. Each United Express carrier participates fully in this program. Ratings for RPI are not compared between carriers. Each carrier's individual rating is compared to its own historical performance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Repurchase Intent (RPI):* RPI is based upon customer response to their intent to repurchase or use again
the United Express product as reflected in the Marketrak survey

**MISCELLANEOUS** 

<u>ACARS:</u> The Contractor is expected to use an ACARS system on all United Express flights for the purpose of providing timely and accurate Flight Information (FLIFO). United agrees that the cost of ACARS unit will be part of the Aircraft Ownership cost of the airplanes, and that United will assume responsibility for the one time connectivity cost of the ACARS system.

<u>Signage:</u> It is the responsibility of the designated United Express ground handler to provide appropriate and adequate brand signage, which is designated and approved by United Airlines. Brand name(s) to be used on signage is as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *United Handled City:* All signage will reflect the United Airlines brand. United Express signs may be used
at the departure gate for United Express flights at the discretion of United.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Shared United/United Express Handled City:* All signage at the ticket counter will reflect the United
Airlines brand. Signage at the United Express handled gate(s) will reflect the United Express brand. Signage on the approach to the airport and on the curb to the airport terminal will primarily reflect United Airlines, but may, if appropriate,
reflect United Express as well.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *United Express Handled City:* All signage will reflect the United Express brand.

It is the responsibility of the designated United Express ground handler to ensure that all federally mandated signage is in place in accordance with regulations at each United Express station. The Contractor will be responsible for such signage on the aircraft.

<u>Small Package Dispatch (SPD):</u> Express carriers will participate in United's SPD program, accepting SPD shipments at the ticket counter up to 30 minutes prior to the departure of each flight and returning SPD shipments to the designated delivery point within 30 minutes of the arrival of each flight.

<u>U.S. Mail:</u> Express carriers will participate with United in the transportation of U.S. Mail in accordance with applicable guidelines. Each carrier will work with United in obtaining USPS Air System Contracts for United designated market.

<u>Station Operations Center (SOC) – Hub Locations:</u> Each United Express carrier will provide adequate staffing in the United Airlines SOC of each designated hub city where the Contractor has more than 100 daily departures. Such Staffing, when required, will be provided during all normal hours of operation.

------

**<u>APPENDIX J</u>**

**<u>OFFICER POSITION'S ENTITLED TO POSITIVE SPACE LEISURE TRAVEL ON CONTRACTOR'S UNITED EXPRESS FLIGHTS</u>**

[\*\*\*]

[\*\*\*] & Chief Operation Officer [\*\*\*]

[\*\*\*]

Does not include children or other dependents

------

**<u>APPENDIX K</u>**

**<u>SCHEDULE PARAMETERS</u>**

The weekly schedules for the aircraft specified by United must meet the following minimum and maximum schedule parameters:

---

| | | |
|:---|:---|:---|
|  | **Minimum** | **Maximum** |
| Average Scheduled Block Hours per day | [\*\*\*] | [\*\*\*] |
| Average Scheduled Departures per day |  | [\*\*\*] |

---

United will meet the following criteria in devising the schedule:

1. Aircraft Turn Times

For operations at United designated hub the minimum turn time (defined as the time from Aircraft blocking in to Aircraft unblocking) will be [\*\*\*]. For operations at a non-United hub, the minimum turn time will be [\*\*\*]. Turn times for aircraft that will have a scheduled crew change will be a minimum of [\*\*\*].

2. Aircraft Maintenance Requirements

Contractor will require the greater of [\*\*\*] aircraft or [\*\*\*] of the fleet to be scheduled for overnight maintenance for a minimum period of [\*\*\*] per day for [\*\*\*] each week (Weekday Entry). In addition, the greater of [\*\*\*] aircraft or [\*\*\*] of the fleet will be scheduled for [\*\*\*] of continuous maintenance time each week beginning on Saturday afternoon (Weekend Entry).

3. Maintenance Base(s)

Contractor will establish a single maintenance base in Indianapolis, Indiana. As the fleet expands it is expected that an additional maintenance base(s) will be required, at such time the Contractor will evaluate potential maintenance base locations. Following a review of the potential locations with United, the Contractor will determine the location and activation date of the addition maintenance base. Each maintenance base in the Contractors United Express system will have at least three (3) Weekday Entries upon full fleet implementation. Once a maintenance base is establish, then the Contractor will require a [\*\*\*] notice, if United desires to relocate the base. Further, if United requires that a base to be relocated or if a base no longer meets the Weekday Entry minimum stated above, then United will be responsible for the Contractors relocation and / or shut down cost. The Contractor will use its best efforts to minimize the cost of the relocation and / or shut down.

------

4. Crew Overnights

The Contractor's United Express schedule will allow for a single crew (two Pilots and two Flight Attendants) overnight in outstations and will not require the Contractor to schedule any continuous duty overnights. Any costs incurred by Contractor as a result of United failing to meet this parameter will be borne by United. A single crew overnight requires that the crew's scheduled rest period is at least [\*\*\*] hours.

5. Crew Bases

The Contractor will establish a single crew base for Pilots and Flight Attendants in Indianapolis, Indiana. As the fleet expands it is expected that an additional crew base(s) will be required, at such time the Contractor will evaluate potential crew base locations. Following a review of the potential locations with United, the Contractor will determine the location and activation date of the addition crew base. Each crew base in the Contractors United Express system will have at least [\*\*\*] overnight aircraft and [\*\*\*] mid-day aircraft turns. Once a crew base is establish, then the Contractor will require a [\*\*\*] notice, if United desires to relocate the base. Further, if United requires that a base be relocated or if a base no longer meets the scheduling parameters minimums stated above in this section then, United will be responsible for the Contractors relocation and / or shut down cost. The Contractor will use its best efforts to minimize the cost of the relocation and / or shut down.

6. International and New Airport Operations

The Contractor will require [\*\*\*] notice prior to the scheduled operation to any new International destination.

[\*\*\*]

## Exhibit 10.27

**Exhibit 10.27.2** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

FIRST AMENDMENT TO UNITED EXPRESS AGREEMENT

This First Amendment to the United Express Agreement (the "**Amendment**") is effective as of August 21<sup>st</sup>, 2007 by and between **UNITED AIR LINES, INC.**, a Delaware corporation, with its operations center located at 1200 East Algonquin Road, Elk Grove Township, Illinois 60007 ("**United**"), and **SHUTTLE AMERICA CORP**., having its principal mailing address at 8909 Purdue Road, Suite 300, Indianapolis, IN 46268 ("**Contractor**").

**WHEREAS,** the parties previously entered into that certain United Express Agreement dated as of December 28<sup>th</sup>, 2006, United Contract # 172884 (the "**Agreement**"); and

**WHEREAS,** pursuant to Article XXXI of the Agreement, the parties may modify or amend the Agreement; and

**WHEREAS,** Article II of the Agreement provides for the term of all ERJ-170 regional jet aircraft subject to the Agreement; and

**WHEREAS,** Article IV of the Agreement provides for the type and amount of aircraft to be used in the Agreement as outlined in Appendix B; and

**WHEREAS,** Article VIII of the Agreement provides for an annual adjustment factor to carrier controlled rates payable to the contractor as outlined in Appendix E and for specific aircraft ownership Amended credits; and

**WHEREAS,** Appendix B provides for the schedule of a Fleet Plan; and

**WHEREAS,** Appendix E provides for the schedule of Reimbursement Category Unit Rates and Annual Adjustment Factors; and

**WHEREAS,** the parties desire to amend the Agreement to provide for the addition of ten (10) ERJ-170 aircraft by Contractor in accordance with the Fleet Plan set forth on Appendix B.

**NOW THEREFORE,** for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:

I. DEFINITIONS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. <u>Defined Terms.</u> Capitalized terms used in this Amendment and not otherwise defined in this Amendment shall have the meanings assigned to them in the Agreement.

------

II. SCOPE, TERM, and CONDITIONS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Contractor and United have mutually agreed to add ten (10) ERJ-170 aircraft (aircraft [\*\*\*] through [\*\*\*]).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Article II.B.1 Regional Jets Term of the Agreement shall be deleted in its entirety and replaced with the following: For any ERJ-170 regional jet aircraft subject to this Agreement, the aircraft shall be divided into four (4) tranches. The term of this Agreement for the first ERJ-170 tranche (the first [\*\*\*] aircraft delivered) shall expire on June 30, 2016. The term of the Agreement for the second ERJ-170 tranche (the next [\*\*\*] aircraft delivered) shall expire on June 30, 2017. The term of the Agreement for the third ERJ-170 tranche (the next [\*\*\*] aircraft delivered) shall expire on June 30, 2018. The term of the Agreement for the fourth ERJ-170 tranche (the final [\*\*\*] aircraft delivered) shall expire on June 30, 2019.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Article IV.A.1.a.i Aircraft Types of the Agreement shall be deleted in its entirety and replaced with the following: [\*\*\*] ERJ-170 aircraft which Contractor shall cause to be delivered in a timeline substantially consistent with the schedule set forth on Appendix B.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. Contractor and United mutually agree that notwithstanding the provisions in Article VIII.A.8.b, Amended Credit, the two (2) references to "[\*\*\*] aircraft" in such paragraph shall be amended such that in the [\*\*\*] in which the [\*\*\*] of the [\*\*\*] ERJ-145 aircraft operating for Chautauqua Airlines are removed from service, the article will be amended to reference "[\*\*\*] Aircraft" and will be reduced by [\*\*\*] aircraft in conjunction with the early termination schedule of the remaining ERJ-145 aircraft, accordingly such reference should not fall below "[\*\*\*] aircraft", and will remain in effect through [\*\*\*]. As of [\*\*\*], Article VIII.A.8.b, Amended Credit, will revert to incorporate the initial references to "[\*\*\*] aircraft".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. Contractor and United mutually agree to the monthly aircraft ownership rate of [\*\*\*] per additional ERJ-170 as specified in this Amendment and as outlined in Attachment B to this Amendment, the revised iteration of Appendix E to the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. Attachment A to this Amendment is the revised iteration of Appendix B to the Agreement and is modified to include specifics to the additions in fleet and the related additions in schedule of aircraft.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H. Attachment B to this Amendment is the revised iteration of Appendix E to the Agreement and is modified to include specifics to the annual adjustment rates and aircraft ownership rates.

III. MISCELLANEOUS. Except as otherwise amended herein, the Agreement will remain in full force and effect. The terms of this Amendment are deemed to be incorporated in, and made a part of, the Agreement. This Amendment may be executed in any number of counterparts, by original or facsimile signature, each of which when executed and delivered shall be deemed an original and such counterparts together shall constitute one and the same instrument.

[Signature Page Follows]

------

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

---

| | | | |
|:---|:---|:---|:---|
| UNITED AIRLINES, INC. | UNITED AIRLINES, INC. | SHUTTLE AMERICA CORP | SHUTTLE AMERICA CORP |
| By: | /s/ Pete McDonald | By: | /s/ Bryan K. Bedford |
|  | Pete McDonald |  | Bryan K. Bedford |
|  | Executive Vice President & Chief Operating Officer |  | Chief Executive Officer |

---

---

| | |
|:---|:---|
| By: | /s/ Alex Marren |
|  | Vice President Operational Services,<br> United Express, and TED |

---

------

**<u>ATTACHMENT A</u>**

**<u>APPENDIX B</u>**

**<u>RJ- 70FLEET PLAN</u>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Delivery Dates** | **Units** | **In-Service** | **Spare** | **Total Deliveries** |
|  10/17/2004 | 3 | 2 | 1 | 3 |
|  11/1/2004 | 2 | 4 | 1 | 5 |
|  11/21/2004 | 2 | 6 | 1 | 7 |
|  12/1/2004 | 1 | 7 | 1 | 8 |
|  12/19/2004 | 2 | 9 | 1 | 10 |
|  1/2/2005 | 2 | 11 | 1 | 12 |
|  1/16/2005 | 1 | 12 | 1 | 13 |
|  2/1/2005 | 1 | 13 | 1 | 14 |
|  3/1/2005 | 1 | 14 | 1 | 15 |
|  4/1/2005 | 1 | 15 | 1 | 16 |
|  5/1/2005 | 1 | 16 | 1 | 17 |
|  6/1/2005 | 1 | 17 | 1 | 18 |
|  6/12/2005 | 1 | 18 | 1 | 19 |
|  7/1/2005 | 1 | 19 | 1 | 20 |
|  6/7/2005 | 1 | 19 | 2 | 21 |
|  6/25/2005 | 1 | 20 | 2 | 22 |
|  7/1/2005 | 1 | 21 | 2 | 23 |
|  Sep-05 | 1 | 22 | 2 | 24 |
|  Oct-05 | 1 | 23 | 2 | 25 |
|  Nov-05 | 1 | 24 | 2 | 26 |
|  Nov-05 | 1 | 25 | 2 | 27 |
|  Dec-05 | 1 | 26 | 2 | 28 |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |

---

Note: Contractor shall not be liable for any aircraft delivery delays resulting from verifiable manufacturer caused actions.

------

**<u>ATTACHMENT B</u>**

**<u>APPENDIX E</u>**

**<u>REIMBURSEMENT CATEGORIES</u>**

CARRIER CONTROLLED COSTS IN 2007 ECONOMICS

**United shall pay** Contractor the following Reimbursement Category Unit Rates for Contractor's United Express flights operated using the aircraft set forth below:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **[\*\*\*]** | **[\*\*\*]** | **[\*\*\*]** | **[\*\*\*]** | **[\*\*\*]** | **[\*\*\*]** |
| **[\*\*\*]** | **[\*\*\*]** | **[\*\*\*]** | **[\*\*\*]** | **[\*\*\*]** | **[\*\*\*]** |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |

---

------

<u>REIMBURSEMENT CATEGORIES</u> 

PASS-THRU COSTS

---

| | | | |
|:---|:---|:---|:---|
| **[\*\*\*]** | **[\*\*\*]** | **[\*\*\*]** | **[\*\*\*]** |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |

---

------

**DEFINITIONS** 

**Descriptions of Carrier Controlled Costs** 

**General Statement:** Notwithstanding the following descriptions, any costs incurred by Contractor that are described as Pass-Through Costs on this Exhibit E shall not be considered Carrier Controlled Costs. Any costs incurred by Contractor that are not Pass-Through Costs under.the Agreement, regardless of whether such costs are described below, shall be considered Carrier Controlled Costs, except for those costs that are typically considered the responsibility of the Ground Handling Provider as defined in United's contracts for ground handling services. The characterization of any cost as a Carrier Controlled Cost in the following descriptions shall not impair any provision of the Agreement that specifically requires United to reimburse Contractor for such cost.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) Flight Crews (Captains, First Officers and Flight Attendants)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Wages, benefits (including health insurance, pensions, 401k, and any other benefits), payroll associated taxes and incentives (premiums for longevity, geography, certificates/licenses, profit sharing, bonuses and any other incentives) for all paid hours (including but not exclusive of hours for reserve employees, overtime, vacation, holidays, sick days, and paid leave) for the following work categories:

ii) Pilots and Flight Attendants for all equipment types, including reserve crews and any other crews on the Contractor payroll.

iii) Pilot and Flight Attendant Administration and Management, including senior management crew scheduling, labor relations management.

iv) Domicile administration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) All uniform related charges for all of the above work categories, including purchase, repair, and cleaning charges.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) All training associated with the work groups above, including but not exclusive of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v) Recurring and Attrition: Any training expense that occurs annually for all types of employees, new planes or attrition. Includes Labor payments to those employees being trained (including all types of charges mentioned in paragraph i.a), trainer time and salary, equipment and facility rental, training administration costs associated with recurring training, and any training materials required. Excludes expenses associated with bringing new aircraft into the system.

vi) Ramp-up: Training expense that occurs due to new planes taken on. Includes Labor payments to those employees being trained (including all items in paragraph i.a); Trainer time and salary; Equipment and facility rental; Training administration costs associated with one-time training; Any training materials required; Uniforms & headsets; Pilot navigational charts.

------

vii) Maintenance:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Maintenance labor for all labor categories of aircraft mechanics, (e.g., engine specialists, parts clerks, etc.), including base wages, benefits, payroll associated taxes and incentives (premiums for longevity, geography, certificates/licenses, profit sharing, bonuses and any other incentives) for all paid hours (including but not exclusive of overtime, holidays, vacation, sick days and paid leave).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Maintenance Overhead: All hangar, parts/storage shop and maintenance management office rent and maintenance facility charges. All sundry and clerical items associated with the management of Contractor's maintenance function, including but not exclusive of office supplies and furniture, maintenance schematic drawings and manuals, maintenance IT hardware/software.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Maintenance Management Overhead: Labor for all management and administration associated with the Contractor's management of the maintenance function, including base wages, benefits, payroll associated taxes and incentives (including premiums for longevity, geography, certificates/licenses, profit sharing, bonuses and any other incentives) for all paid hours (including but not exclusive of overtime, vacation, holidays, sick days and paid leave).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Outsource Maintenance Services: All charges net of warranty reimbursement for any and all services and/or products (including but not exclusive of components, line, engine, airframe, C&D checks, avionics, APU) provided by a third party for the maintenance of Contractor's aircraft or maintenance functions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) Other Maintenance: Parts, spares, tools, equipment and any other personnel, service or material expenses, associated with the maintenance of Contractor's aircraft or maintenance functions.

viii) Operations

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) RON (Remain Over Night): Hotel, transportation, and per diem for all pilots and flight attendants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Interrupted Trip Expense: Includes all mishandled bag related expenses and all hotel, transportation and meal accommodation expenses for any passenger traveling on Contractor's flights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Catering and on-board services: Includes all cost associated with providing food (snack and beverage service) for passengers, excluding liquor. This includes but is not limited to costs for the food and beverages, catering supplies

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Crew Scheduling: Labor for all management and administration associated with the Contractor's crew scheduling function, including base wages, benefits, payroll associated taxes and incentives (including premiums for longevity, geography, certificates/licenses, profit sharing, bonuses and any other incentives) for all paid hours (including but not exclusive of overtime, vacation, holidays, sick days and paid leave). All Information Technology related charges (e.g., systems, software and hardware) and other costs associated with crew scheduling functions.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) Dispatch/flight operations center: Flight operations center and all costs associated with it including personnel, facilities, management and systems.

ix) Corporate Overhead

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Headquarters Facilities: All corporate real estate rent and associated facility charges

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Management overhead: Labor for all management and administration whether or not based in Indianapolis, Indiana, including base wages, benefits, payroll associated taxes and incentives (including premiums for longevity, geography, certificates/licenses, profit sharing, bonuses, and any other incentives) for all paid hours (including but not exclusive of overtime, vacation, holidays, sick days and paid leave).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Other: Out-sourced corporate overhead services (e.g., consulting, legal expenses), other depreciation and any other overhead costs spread over multiple cost categories (e.g., memberships, office supplies, employee testing, IT, insurance costs that are not Pass-Through Costs, other repairs and maintenance, software licensing, parking, safety office, flight standards, communications, etc.); includes non-aircraft interest expense, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;x) Aircraft Ownership

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) All charges, except Aircraft Property Taxes (as described in the description of Pass-Through Costs), associated with aircraft ownership including but not exclusive of lease, depreciation, other financing expense, and related start-up costs (including painting).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) All spare engine ownership expense

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Hull Insurance – consists of premiums and other charges of insurers for Aircraft Hull All Risks Insurance as described in the Agreement, plus fees and expenses of insurance brokers in connection with the procurement or maintenance of such insurance, and surplus lines tax.

**Descriptions of Pass-Through Costs** 

1. Fuel and Oil – consists of the cost of all aircraft fuel and oil, plus fuel flow charges, into-plane fees,
and de-fueling charges, and all applicable taxes on any of the foregoing.

2. Landing Fees – consists of all airport landing fees, Aircraft Rescue Fire Fighter (ARFF) charges or
similar charges, apron fees, and any other fees charged by airport operators to cover airfield costs or other airport facilities.

------

3. War Risk Insurance – consists of premiums and other charges of insurers for War Risk and Allied Perils
Insurance, plus fees and expenses of insurance brokers in connection with the procurement or maintenance of such insurance.

4. Liability Insurance – consists of premiums and other charges of insurers for all other liability insurance
as described in the Agreement, plus fees and expenses of insurance brokers in connection with the procurement or maintenance of such insurance.

5. Aircraft Property Taxes – consists of all property taxes (however designated, including excise or
franchise taxes imposed on the ownership of property, ad valorem taxes, and special assessments or levies) related to aircraft, spare parts and engines.

6. Security Charges – consists of all charges imposed by governmental agencies, including the Transportation
Security Administration (TSA) or any other entity performing functions of the TSA, or by any third-party contractor of any governmental agency, with respect to airport security services

7. Engine LLP Coverage – a part with a limitation on use stated in cumulative engine flight hours or cycles,
established by the OEM or the Federal Aviation Administration.

8. [\*\*\*]

## Exhibit 10.27

**Exhibit 10.27.3** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

<u>FOURTH AMENDMENT TO UNITED EXPRESS AGREEMENT</u> 

This Amendment to the United Express Agreement (the **"Amendment")** is effective as of March 15, 2010 (the **"Effective Date")** by and between **UNITED AIR LINES, INC.,** a Delaware corporation, with its operations center located at 1200 East Algonquin Road, Elk Grove Township, Illinois 60007 **("United"),** and **SHUTTLE AMERICA CORP.,** an Indiana corporation, having its principal mailing address at 8909 Purdue Road, Suite 300 Indianapolis, IN 46268 **("Shuttle America"** or **"Contractor").**

**WHEREAS,** the parties previously entered into that certain <u>United Express</u><u><sup>®</sup></u> <u>Agreement,</u> dated as of December 28, 2006 (United Contract# 172884) the **"Agreement";**

**WHEREAS,** pursuant to Article XXXI of the Agreement, the parties may modify or amend the Agreement;

**WHEREAS,** Article XII.A.1 details the requirements for Comprehensive Airline Liability Insurance; and

**WHEREAS,** the parties desire to further amend the Agreement to [\*\*\*] for Comprehensive Airline Liability Insurance.

**NOW THEREFORE,** for good and valuable consideration, the receipt, sufficiency, and adequacy of which are hereby acknowledged, the parties hereby agree as follows:

I. DEFINITIONS

Capitalized terms used in this Amendment and not otherwise defined in this Amendment shall have the meanings assigned to them in the Agreement.

II. SCOPE, TERM, and CONDITIONS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The text of Article XII.A.1 of the Agreement, [\*\*\*] is hereby deleted in its entirety and replaced with the
following:

"Comprehensive Airline Liability Insurance, including, but not limited to, Aircraft Liability, Passenger Liability, Comprehensive General Liability Insurance, War Risk and Other Perils (per AVN52E or its equivalent), including passengers and third parties, Cargo Liability and Baggage Liability Insurance, with combined single limits for each and every loss and each aircraft of not less than (i) [\*\*\*] or (ii) [\*\*\*] per available seat or (iii) the limits that Contractor has in place, whichever is greatest among the [\*\*\*] available options. Notwithstanding the above, the liability coverage for non-passenger personal injury shall be no less than [\*\*\*] in the annual aggregate. Any policies of insurance carried in accordance with this **Article XII.A.1** will also contain or be endorsed to contain those provisions set forth in the attached **Appendix G.**"

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Attachment A to this Amendment is the revised iteration of Appendix G, Liability Insurance, to the
Agreement and is modified [\*\*\*] for Comprehensive Airline Liability Insurance. It hereby replaces any and all prior existing iterations of Appendix G.

III. MISCELLANEOUS. Except as otherwise amended herein, the Agreement will remain in full force and effect. The terms of this Amendment are deemed to be incorporated in, and made a part of, the Agreement. This Amendment may be executed in any number of counterparts, by original or facsimile signature, each of which when executed and delivered shall be deemed an original and such counterparts together shall constitute one and the same instrument.

IN WITNESS WHEREOF, the parties hereto have by their duly authorized officers caused this Amendment to be entered into and signed as of the Effective Date.

---

| | | | |
|:---|:---|:---|:---|
| **UNITED AIR LINES, INC.** | **UNITED AIR LINES, INC.** | **SHUTTLE AMERICA CORP.** | **SHUTTLE AMERICA CORP.** |
| By: | /s/ John Tague | By: | /s/ Tim Dooley |
|  | John Tague |  | Tim Dooley |
|  | President and EVP |  | Vice President, Financial Planning and Analysis |

---

Page 2 of 3

------

**ATTACHMENT A** 

**APPENDIX G** 

[\*\*\*]

Page 3 of 3

## Exhibit 10.27

**Exhibit 10.27.4** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

<u>FIFTH AMENDMENT TO UNITED EXPRESS AGREEMENT</u> 

This Fifth Amendment to the United Express Agreement (the **''Amendment**'') is effective as of January 4, 2011 (the **"Effective Date**") by and between **UNITED AIR LINES, INC.,** a Delaware corporation, with its corporate offices located at 77 West Wacker Drive, Chicago, Illinois 60601 ("**United**"), and **SHUTTLE AMERICA CORP.,** an Indiana corporation, having its principal mailing address at 8909 Purdue Road, Suite 300 Indianapolis, IN 46268 ("**Shuttle America**" or "**Contractor**").

**WHEREAS,** the parties previously entered into that certain United Express Agreement dated as of December 28, 2006 and denominated as United Contract # 172884, as previously amended by the parties (the **"Agreement**"); and

**WHEREAS,** pursuant to Article XXXI of the Agreement, the parties may modify or amend the Agreement; and

**WHEREAS,** the parties desire to further amend the Agreement [\*\*\*]; and

**NOW THEREFORE,** for good and valuable consideration, the receipt, sufficiency, and adequacy of which arc hereby acknowledged, the parties hereby agree as follows:

I. DEFINITIONS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. <u>Defined Terms.</u> Capitalized terms used in this Amendment and not otherwise defined in this Amendment shall have the meanings assigned to them in the Agreement.

II. SCOPE, TERM, and CONDITIONS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The "MISCELLANEOUS" section of **APPENDIX** I <u>(United Express Service</u> <u>Standards)</u> to the Agreement is hereby amended by the addition of the following subsection:

<u>"CARGO PRODUCT -</u> [\*\*\*]

For all United-contracted E170 aircraft operated by Contractor under the [\*\*\*] only, when such aircraft only [\*\*\*], Contractor will accept the following for carriage:

[\*\*\*]."

III. MISCELLANEOUS. Except as otherwise amended herein, the Agreement will remain in full force and effect. The terms of this Amendment are deemed to be incorporated in, and made a part of, the Agreement. This Amendment may be executed in any number of counterparts, by original or facsimile signature, each of which when executed and delivered shall be deemed an original and such counterparts together shall constitute one and the same instrument.

------

IN WITNESS WHEREOF, the parties hereto have by their duly authorized officers caused this Amendment to be entered into and signed as of the Effective Date.

---

| | | | |
|:---|:---|:---|:---|
| **UNITED AIR LINES, INC.** | **UNITED AIR LINES, INC.** | **SHUTTLE AMERICA CORP.** | **SHUTTLE AMERICA CORP.** |
| By: | /s/ Alex Marren | By: | /s/ Timothy Dooley |
|  | Alex Marren |  | Timothy Dooley |
|  | SVP System Ops Control & United Express |  | Vice President, Financial Planning and Analysis |

---

## Exhibit 10.27

**Exhibit 10.27.5** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

**SIXTH AMENDMENT TO UNITED EXPRESS AGREEMENT** 

This Sixth Amendment to the United Express Agreement (the "Amendment") is effective as of June 20, 2011 by and between **UNITED AIR LINES, INC.**, a Delaware corporation, with its corporate offices located at 77 West Wacker Drive, Chicago, Illinois 60601 ("**United**"), and **SHUTTLE AMERICA CORP.**, having its principal mailing address at 8909 Purdue Road, Suite 300, Indianapolis, IN 46268 ("**Contractor**").

**WHEREAS,** the parties previously entered into that certain United Express Agreement dated as of December 28th, 2006, United Contract # 172884 (the "**Agreement**"); and

**WIIEREAS,** pursuant to Article XXXI of the Agreement. the parties may modify or amend the Agreement; and

**WHEREAS,** Article IV. F. details the requirements for Inflight Sales; and

**WHEREAS,** the parties desire to further amend the Agreement [\*\*\*]; and

**NOW THEREFORE**, for good and valuable consideration, the receipt, sufficiency, and adequacy of which are hereby acknowledged, the parties hereby agree as follows:

I. DEFINITIONS

Capitalized terms used in this Amendment and not otherwise defined in this Amendment shall have the meanings assigned to them in the Agreement.

II. SCOPE, TERM, and CONDITIONS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The Agreement is hereby amended to add a new **Appendix 1** to the Agreement, attached to this Amendment as Schedule 1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The text of Article IV. F. of the Agreement, titled "Inflight Sales" is hereby deleted in its entirety and replaced with the following:

"<u>INFLIGHT SALES</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. General. Contractor may, at United's request, be required to sell [\*\*\*], [\*\*\*], [\*\*\*], or any other [\*\*\*], food and any other goods ("Inflight Products") on flights included in Contractor's United Express Services. Contractor agrees that such in-flight sales shall be conducted in a manner consistent with in-flight sales provided on United's flights and in accordance with the requirements set forth by United for Contractor's United Express Services, as further described in **Appendix L ("Inflight Product Sales Program")**. Contractor acknowledges and agrees that all revenues generated from or in

------

connection with the in-flight sale of any product [\*\*\*] are the sole property of United and will be retained by United, or, if received by Contractor or any of its affiliates, shall be promptly remitted to United. United will be solely responsible for the direct costs associated with such in-flight sales. The technology, processes, and responsibilities associated with the Inflight Product Sales Program are set forth in **Appendix L**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Sales of Alcoholic Beverage Products. Contractor agrees that it shall comply with all federal, state, and local laws, rules and regulations and Contractor shall obtain and maintain all permits, certifications and licenses necessary for the full and proper conduct of its operations relating to the sale, distribution, storage, or service of any Alcoholic Beverage Product by Contractor. [\*\*\*]."

III. MISCELLANEOUS. Except as otherwise amended herein, the Agreement will remain in full force and effect. The terms of this Amendment are deemed to be incorporated in, and made a part of, the Agreement. This Amendment may be executed in any number of counterparts, by original or facsimile signature, each of which when executed and delivered shall be deemed an original and such counterparts together shall constitute one and the same instrument.

------

IN WITNESS WHEREOF, the parties hereto have by their duly authorized officers caused this Amendment to be entered into and signed as of the Effective Date.

---

| | | | |
|:---|:---|:---|:---|
| **UNITED AIR LINES, INC.** | **UNITED AIR LINES, INC.** | **SHUTTLE AMERICA CORP.** | **SHUTTLE AMERICA CORP.** |
| By: | /s/ Alex Marren | By: | /s/ Timothy Dooley |
|  | Alex Marren |  | Timothy P. Dooley |
|  | SVP System Ops Control & United Express |  | SVP, Chief Executive Officer |

---

------

Schedule I

**<u>APPENDIX L</u>**

**<u>INFLIGHT PRODUCT SALES PROGRAM</u>**

United will market a portfolio of inflight products for purchase on United Express flights which includes [\*\*\*], [\*\*\*], [\*\*\*], food, or other product offerings. Contractor will administer the program related to such in-flight sales (the "Inflight Product Sales Program") as United's representative following all policies and procedures of United. The initial policies and procedures established by United for the sale of products onboard Contractor's flights under the Agreement with United are set forth below. United reserves the right to change the product offerings, policies and procedures associated with the Inflight Product Sales Program at any time and in its sole discretion.

TECHNOLOGY

The sale of product onboard Contractor's flights under the Agreement will involve non-cash transactions. United will provide a single hand held device (each such device, an "HHD" and collectively, the "HHD units") necessary to process credit and debit card transactions for each aircraft in Contractor's fleet operating as United Express. Contractor shall only swipe the customer's credit or debit card into the HHD unit for the purpose of processing the customer's transaction and shall not otherwise use or record the customer information. The HHD units provided by United shall only be used for United's business purposes.

The HHD units and the information contained therein shall be deemed the confidential and proprietary information of United and its licensors and shall be subject to the confidentiality terms and conditions set forth in the Agreement for other types of confidential information of United. Contractor shall not, and shall not permit others to, reverse engineer, decompile, disassemble or translate the HHD units, including any firmware or software that is loaded upon the units, or otherwise attempt to view, display or print the source code embedded in the HHD units, or any firmware or software loaded on the HHD units.

Upon the earlier to occur of (i) the termination of United's Inflight Product Sales Program, (ii) the termination of this Agreement, or (iii) the cessation of the use of the HHD units by Contractor, as determined by United in its sole discretion, Contractor shall cooperate with United or its designated vendor for the collection and return of all HHD units to United at the address designated by United, at Contractor's cost. Contractor shall return the HHD units in as good a condition as possible, except for reasonable wear and tear thereof.

The HHD unites will be inventoried and secured by Contractor as a part of the ship's equipment.

Contractor will be responsible for the security of the HHD on each aircraft. Contractor agrees to notify United immediately (which in no event shall be longer than [\*\*\*]) whenever any HHD unit has been, or Contractor reasonably believes or suspects that any HHD unit has been, lost, acquired, destroyed, modified, used, disclosed or accessed by any person in an unauthorized manner or for an unauthorized purpose (collectively, "Security Breach"). Contractor further agrees to provide all reasonable assistance requested by United or United's designated representatives, in the furtherance of any correction, remediation, investigation, enforcement or litigation with respect to a Security Breach, including but not limited to, any notification that United may determine appropriate to send to individuals impacted or potentially impacted by a Security Breach.

------

Lost equipment will be replaced at Contractor's expense. Any equipment that is unaccounted for and for which no transactions have been logged for [\*\*\*] will be considered "lost" and United reserves the right to [\*\*\*] provided for in Article VIII. D. 1. of the Agreement.

Any HHD that is damaged beyond reasonable wear and tear will be replaced at Contractor's expense and United reserves the right to [\*\*\*] provided for in Article VIII. D. 1. of the Agreement. Any HHD that becomes inoperable in the absence of damage beyond reasonable wear and tear will be replaced at United's expense, and provided Contractor is not provided any spare HHD units, United agrees that Contractor will not be assessed any penalty (financial or otherwise) during the time it takes for United to provide a replacement HHD.

United, at its cost, will provide or cause to be provided by a vendor or United's choice the maintenance and battery replacement for the HHD units. Such maintenance and battery replacement will be provided at predetermined intervals designed to maximize HHD and battery useful life, and Contractor will have the right to request maintenance at different times than the predetermined intervals or additional battery replacement at Contractor's cost upon request. In the event Contractor's request for maintenance is related to a faulty or defective HHD unit, Contractor shall [\*\*\*] for such non-routine service call.

United, at its cost, will provide Contractor's designated "trainers" initial "train the trainer" training on the use of the HHD units. Contractor will be required to (i) [\*\*\*] and (ii) [\*\*\*].

PRODUCT LOSS AND PILFERAGE

United will establish procedures aimed at limiting product loss. At a minimum, it is required that Contractor's Flight Attendants record opening and closing inventories of each product to be sold onboard, accounting for all sales and complimentary items distributed.

Seals may be required to prevent tampering with product inventories and to deter pilferage. United will monitor all inventories and reserves the right to charge Contractor for identified pilferage. Any discrepancies in inventories, seal numbers recorded, or excessive complimentary activity for any product sold must be reported at the hub for use in pilferage investigations. Contractor's failure to provide documentation as requested by United or its representatives will result in Contractor being charged for pilferage as determined by United in its sole discretion and United reserves the right to set off the value of the pilferage, which will be at United's cost of product, by taking a credit in the amount of such pilferage through the Settlement process provided for in Article VIII. D. 1. of the Agreement.

All product loss and pilferage procedures established by United must be adhered to by Contractor. Contractor shall be liable for replacing all products that are lost, damaged or pilfered while such products are in the care, custody and/or control of Contractor based upon such products actual replacement costs. United reserves the right to set off such costs and/or lost revenues by taking a credit in the amount of such costs and/or lost revenues through the Settlement process provided for in Article VIII. D. I. of the Agreement. In the event of any conflict or discrepancy between Contractor's documentation and United's documentation. United's documentation shall control, unless Contractor produces conclusive evidence that United documentation is incorrect.

------

United may, at any time during operating hours inspect, monitor, or audit Contractor's administration of the Inflight Product Sales Program described in this Appendix or in other policies and procedures, in order to verify that Contractor is in compliance with United's requirements for the Inflight product Sales program. Contractor will work with United to ensure appropriate controls exist to ensure compliance with United's documentation and will ensure corrective actions are in place as necessary.

LIQUOR, BEER AND WINE PROGRAM

The Alcoholic Beverage Products offering will be determined by United and provided for in the liquor kit supplied to each aircraft. Except as otherwise agreed by United and Contractor due to the various applicable liquor license laws and regulations, the Alcoholic Beverage Products will be purchased by United, stored and distributed by United and/or United's vendors prior to being placed onboard Contractor's aircraft and sold onboard all United Express flights designated by United.

Once onboard Contractor's aircraft, liquor drawers are considered a part of ship's equipment and will be used for the distribution of United's inflight products.

[\*\*\*]

Contractor shall not serve any Alcoholic Beverage Product(s) on the ground without United's consent. Contractor will obtain and maintain liquor licenses in the states where they board and/or unload any Alcoholic Beverage Product. Unless otherwise agreed by the parties, Contractor will not [\*\*\*].

Virginia Procedures

In Virginia, [\*\*\*].

**<u>FOOD AND OTHER PRODUCTS</u>**

United reserves the right to introduce other products for sale onboard including food offerings. Food offerings may come in a variety of packaging options and will be integrated into the entire portfolio with regards to specifications and procedures established by United.

Provisioning of product offering will follow United's procedures at distribution points.

## Exhibit 10.27

**Exhibit 10.27.6** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

**SEVENTH AMENDMENT TO UNITED EXPRESS AGREEMENT** 

This Seventh Amendment to the United Express Agreement (this "**Amendment**") is dated as of September 16, 2014 by and between **UNITED AIRLINES, INC.**, a Delaware corporation, with its corporate offices located at 233 South Wacker Drive, Chicago, Illinois 60606 ("**United**"), and **SHUTTLE AMERICA CORPORATION**, an Indiana corporation. with its corporate offices located at 8909 Purdue Road, Suite 300, Indianapolis, Indiana 46268 ("**Contractor**").

**WHEREAS,** the parties previously entered into that certain United Express Agreement dated as of December 28<sup>th</sup>, 2006, United Contract # 172884 (as amended previously by the parties thereto, the "**Agreement**"); and

**WHEREAS,** pursuant to Article XXXI of the Agreement, the parties may modify or amend the Agreement; and

**WHEREAS,** the parties desire to amend the Agreement to provide for the operation of fifty (50) ERJ-175 aircraft and up to fifty (50) additional ERJ-175 aircraft;

**NOW, THEREFORE,** for good and valuable consideration, the receipt, sufficiency, and adequacy of which are hereby acknowledged, the parties hereby agree as follows:

I. DEFINITIONS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. <u>Defined Terms</u>. Capitalized terms used in this Amendment and not otherwise defined in this Amendment
shall have the meanings assigned to them in the Agreement.

II. SCOPE, TERM, and CONDITIONS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Article II.B.A new Article II.B.2 titled "ERJ-175 Regional Jets
Term" shall be added to the Agreement as follows: "The term of the Agreement for each ERJ-175 aircraft delivered under this Agreement shall be twelve (12) years from the date such ERJ-175 aircraft enters into Contractor's United Express Services under this Agreement."

Article II.C.2 of the Agreement is hereby amended by inserting the following: "United shall have the option, on a per tranche basis, to extend the term of the Agreement for ERJ-175 aircraft in tranches of ten (10) aircraft [\*\*\*] for an additional term of four (4) years for each tranche, [\*\*\*]. Ownership costs for any such extended ERJ-175 Aircraft shall be determined as set forth in Schedule 5.2 attached to the Letter Agreement Regarding Certain Financial Terms dated September 16, 2014 between Contractor and United."

------

For the avoidance of doubt, Article II.C.1 of the Agreement shall not apply to any of the ERJ-170 aircraft or the ERJ-175 aircraft.

Article II of the Agreement is hereby further amended by adding a new Article II.E., as follows:

"**E. PURCHASE OPTION FOR ERJ-175 AIRCRAFT**

United shall have the right, at its option. to purchase any or all of the ERJ-175 aircraft at the expiration of the term of the Agreement for such aircraft at a purchase price equal to the then current net book value of such aircraft at the expiration of the Agreement for such aircraft by giving Contractor written notice of its election to exercise such option not less than one (1) year prior to the expiration of the Agreement for such aircraft."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Article II.D (Bankruptcy Provision) is hereby deleted from the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Upon not less than 90 days' prior written notice to United. Contractor shall have the right to assign the
Agreement to Republic Airline Inc. ("Republic") *provided* that Republic agrees to assume, and does assume, all of Contractor's obligations under the Agreement as amended. Concurrently with such assignment and assumption, Article
V (Operating Restrictions) of the Agreement shall be deleted in its entirety and replaced with "RESERVED<sup>".</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Contractor shall operate as Contractor's United Express Services with no fewer than (once all aircraft are
delivered) fifty (50) ERJ-175 aircraft (the "New Aircraft") for United (excluding during the ramp-up and ramp-down periods reflected in the delivery and
exit schedule set forth in Schedule 1 attached hereto). The New Aircraft shall be inducted into Contractor's United Express Services on the schedule set forth in Schedule 1 attached hereto (subject to such acceleration or other variation as
United and Contractor may mutually agree in writing from time to time, each party acting reasonably, to meet each parties' operational requirements). [\*\*\*].

In addition to the fifty (50) New Aircraft, United may on or before December 31, 2016 amend Schedule 1 to the Agreement unilaterally to add up to 50 additional ERJ-175 aircraft ("<u>Growth Aircraft</u>") to be utilized by the Contactor for Contractor's United Express Services under the Agreement at the then current rates, terms and conditions applicable to the New Aircraft (except that there shall be no ownership costs for Growth Aircraft that. United provides at its cost) by giving Contractor written notice of United's exercise of such right (the "<u>Growth Aircraft Option Notice</u>"), [\*\*\*]. Growth Aircraft may be sourced either from aircraft that as of the date hereof United owns or has on firm order or from the option ERJ-175 aircraft to which Contractor currently has a contractual right under its aircraft purchase agreement with Embraer or to which Contractor acquires a contractual right in the future, including but not limited to by means of United's assigning or otherwise making available to Contractor option positions that United has under its

------

own aircraft purchase agreement(s) with Embraer. If Growth Aircraft are added from aircraft that United provides, then United and Contractor shall enter into a lease agreement for such aircraft on the same terms and conditions as described in Section II.E below. The term of the Agreement with respect to such Growth Aircraft shall be for twelve years each, and they shall be delivered over a staggered delivery and exit schedule, as determined by United, [\*\*\*]. If any new Growth Aircraft are option aircraft and are sourced under Contractor's or United's respective aircraft purchase agreement with Embraer, the parties shall consult and agree on the addition of any such Growth Aircraft [\*\*\*].

Contractor shall ensure that the New Aircraft and the Growth Aircraft shall materially conform to United's specifications [\*\*\*], including but not limited to specifications for aircraft configuration, galley, seats, winglets, etc. Subject to reasonable operating constraints (including regulatory constraints) and normalizing for reasonable differences among various carriers' operations and equipment, if they exist, Contractor shall ensure that the New Aircraft and the Growth Aircraft perform materially consistent with other United Express Carriers operating similarly equipped ERJ-175 aircraft with respect to reliability, fuel management, weight and balance, and stage length.

Contractor shall deliver and operate such New Aircraft and Growth Aircraft as part of Contractor's United Express Services it provides under the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. For the New Aircraft and Growth Aircraft, United shall pay Contractor aircraft ownership per month per aircraft
according to Schedule 5.0 attached to the Letter Agreement Regarding Certain Financial Terms dated September 12, 2014 between Contractor and United (the "Letter Agreement"). [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. Article VIII.A.5 of the Agreement, Annual Adjustment Factors, of the Agreement, shall be amended to provide
annual escalation of Carrier Controlled Costs (excluding aircraft ownership) at a rate equal to [\*\*\*], not to exceed [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H. Article VIII.A.8.b "Amended [\*\*\*]" shall not apply to ERJ-170 aircraft during the extension term or to any ERJ-175 aircraft.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. Article VII.F (Environmental) of the Agreement shall be deleted in its entirety and replaced with the following
new Article VII.F:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. " <u>Definitions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The term "<u>Environmental Laws</u>" means all applicable federal, state, local and foreign laws and regulations, including airport [\*\*\*] rules, regulations, policies, [\*\*\*] relating to the prevention of pollution, protection of the environment or occupational health and safety, or remediation of environmental contamination, including, without limitation, laws, regulations and rules relating to emissions to the air, discharges to surface and subsurface soil and waters, regulation of potable or drinking water, the use, storage, release, disposal, transport or handling of Hazardous Materials, protection of endangered species, and aircraft noise, vibration, exhaust and overflight. [\*\*\*]

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The term "<u>Hazardous Materials</u>" means any substances, whether solid, liquid or gaseous, which are listed and/or regulated as hazardous, toxic, or similar terminology under any Environmental Laws or which otherwise cause or pose threat or hazard to human health, safety or the environment, including, but not limited to, petroleum and petroleum products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. <u>Contractor Obligations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Contractor shall conduct its operations in a prudent manner, taking reasonable preventative measures to avoid liabilities under any Environmental Laws or harm to human health or the environment, including, without limitation, measures to prevent unpermitted releases of Hazardous Materials to the environment, adverse environmental impacts to on-site or off-site properties and the creation of any public nuisance. In the course of conducting services under this Agreement, if Contractor encounters adverse environmental conditions that could reasonably be expected to give rise to liability for United or Contractor under any Environmental Laws or which otherwise could reasonably be expected to result in harm to human health or the environment, Contractor shall promptly notify United of such conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. [\*\*\*], Contractor shall conduct its operations in compliance with applicable Environmental Laws, including obtaining any needed permits or authorizations for Contractor's operations. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Contractor shall use its commercially reasonable efforts to perform its services under this Agreement so as to minimize the unnecessary generation of waste materials, including consideration of source reduction and re-use or recycling options, and coordination with United on a cabin service recycling program. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. For any leased areas or other equipment that are jointly used or operated by Contractor and United (and/or other United contractors), Contractor and United shall use their respective commercially reasonable efforts to coordinate their activities with United and/or United contractors and otherwise perform such activities to ensure compliance with applicable Environmental Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Except for de minimis amounts of Hazardous Materials which are immediately and fully remediated to pre-existing conditions, Contractor shall promptly notify United of any spills or leaks of Hazardous Materials arising out of Contractor's provision of services under this Agreement, and, if requested, Contractor shall provide copies to United of any written reports

------

provided by Contractor or on Contractor's behalf to any governmental agencies and airport authorities under any Environmental Laws regarding same. Contractor shall promptly undertake all reasonable commercial actions to remediate any such spills or leaks to the extent Contractor is required to do so by applicable Environmental Laws, by the relevant airport authority, or in order to comply with a lease obligation. If Contractor fails to fulfill its remediation obligations under this paragraph and United may otherwise be prejudiced or adversely affected as a result of such failure (such as involving United leased property), [\*\*\*]. Contractor shall reimburse United for such costs and expenses promptly upon Contractor's receipt of a written request for reimbursement for them by United. The remediation requirements in this paragraph shall not apply to Contractor to the extent the spill or leak of Hazardous Materials is caused by (i) the reckless or willful misconduct, or gross negligence, of United, or (ii) the negligence of a third party contracted by United to perform fueling or other support to Contractor under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Contractor shall promptly provide United with written copies of any notices of violation issued or other claims from a third party asserted pursuant to Environmental Laws or associated with a potential release of Hazardous Materials and related to or associated with the provision of services by Contractor under this Agreement. Contractor shall promptly undertake all actions necessary to resolve such matters, including, without limitation, the payment of fines and penalties, and promptly addressing any noncompliance identified; *provided*, however, that Contractor may contest any notice of violation or other alleged violation and defend any claim that it believes is untrue, improper or invalid. In the event that Contractor fails to fulfill its obligations under this paragraph and United may otherwise be prejudiced or adversely affected, United may undertake such actions as are reasonable or legally required at the cost and expense of Contractor. Such costs and expenses shall be promptly paid upon Contractor's receipt of a written request for reimbursement for them by United. The requirements in this paragraph (other than providing copies of notices) shall not apply to Contractor to the extent the notices of violation issued or claims are caused by (i) the reckless or willful misconduct, or gross negligence, of United, or (ii) the negligence of a third party contracted by United to perform fueling or other support to Contractor under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. If Contractor's services provided under the Agreement include providing bulk (nonbottled) potable water for crew or passenger consumption, Contractor shall ensure compliance with the Aircraft Drinking Water Regulation, FDA requirements, and other similar applicable laws (collectively, the "<u>Drinking Water Requirements</u>"), including without limitation using its commercially reasonable efforts to ensure that all water handling equipment is properly and regularly disinfected and kept in sanitary condition. If Contractor relies upon another contractor to load water

------

onto its aircraft or to maintain water handling equipment, it shall inquire with such contractors to ensure they meet these Drinking Water Requirements as well. Contractor shall notify United as soon as practicable if it becomes aware of practices or conditions that may negatively impact potable water quality, regardless of the provider or the source of such potable water (including whether such source is an airport, ground handler or aircraft water system). [\*\*\*] Upon the termination of operations at a space used to support the provision of Contractor services under this Agreement, Contractor shall use its commercially reasonable efforts to ensure the removal and proper management of any and all Hazardous Materials associated with Contractor's operations (including its subcontractors) and will comply with any other applicable Environmental Laws applicable to the provision of Contractor services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. Contractor has reviewed United's Environmental Commitment Statement (found at www.united.com/ecoskies) and agrees to use commercially reasonable efforts to cooperate with United in meeting these commitments in effect as of the date hereof and in responding to reasonable information requests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. Contractor shall be responsible for and will indemnify, defend, and hold harmless United, United Continental Holdings, Inc., their respective subsidiaries and their respective officers, directors, agents, servants and employees, from and against any and all claims, liabilities, damages, costs, losses, penalties, and judgments (in this paragraph referred to as "Claims"), including costs and expenses incident thereto under Environmental Laws or due to the release of a Hazardous Material, which may be suffered or incurred by, accrue against, be charged to, or recoverable from United or its officers, agents, servants and employees arising out of an act or omission of Contractor (or its subcontractor) related to Contractor's provision of services under this Agreement, except to the extent such Claims are caused by (A) the acts or omissions of a fuel service vendor where such fuel service vendor is contracted by United to perform fueling services for Aircraft Used in United Express Service under this Agreement (such vendors referred to herein as "Fuel Vendor Contracted by United") and (B) the reckless or willful misconduct, or gross negligence, of United. After the execution of this Agreement by United, United shall use commercially reasonable efforts in the negotiation of new into-plane fueling services agreements with any Fuel Vendors Contracted by United to include Contractor as an indemnified party when such Fuel Vendor Contracted by United is providing an indemnity to United covering provision of fueling services and/or releases of hazardous materials with respect to the Aircraft Used in United Express Service; further, to the extent that (x) any into-plane fuel servicing agreements with any Fuel Vendors Contracted by United in force as of the date of this Agreement that contain indemnity provisions naming Contractor or otherwise including Contractor as an indemnified party, United shall inform Contractor of its rights (if any) as a third beneficiary of such indemnification provisions, and (y) United provides a reciprocal indemnity

------

to a Fuel Vendor Contracted by United, Contractor agrees to be bound by such reciprocal indemnity to the same extent as United is required to indemnify such Fuel Vendor Contracted by United with respect to provision of fueling services and/or releases of hazardous materials with respect to the Aircraft Used in United Express Service.

All notices to be provided by Contractor to United under this **Article VII.F** shall be provided as indicated in **Article XXII** of this Agreement, with a copy to Managing Director–Environmental Affairs, United Airlines. Inc., 233 South Wacker Drive-HDQSE. Chicago, IL 60606."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;J. Article VII of the Agreement is hereby amended by adding a new subsection G, which is set forth in Schedule 4
attached hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;K. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;L. Article VIII.A.8.c) of the Agreement is hereby amended to add the following new paragraph at the end of such
subsection as follows:

"In connection with any new ERJ-175 aircraft purchase order of Contractor to be operated as part of Contractor's United Express Services under the Agreement, United shall have the right, in its sole discretion, upon advance notice to Contractor by (i) no later than December 31, 2014 in the case of the first group of 25 of such new ERJ-175 aircraft to be delivered and (ii) no later than December 31, 2015 in the case of the second group of 25 of such new ERJ-175 aircraft to be delivered [\*\*\*], to purchase directly from the manufacturer prior to delivery any of the ERJ-175 aircraft covered under any such order and this Agreement [\*\*\*]. The notice of such an election by United shall be irrevocable once given. Contractor shall fully cooperate with United in regard to such purchase by United. In such event, such ERJ-175 aircraft shall be operated by Contractor hereunder and United and Contractor shall enter into a lease agreement on the same terms and conditions as described in Section II.E above. [\*\*\*]

[\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;M. The Agreement is amended to add the following new provision at the end of Article X of the Agreement:

"Prior to Contractor engaging a third party for any heavy maintenance, repair or overhaul with respect to any aircraft operating under this Agreement (including without limitation any structural repair of an aircraft, in each case which maintenance, repair or overhaul is for scheduled activities (i.e., this provision will not apply to unexpected work requests) and primarily relates to engines, landing gear, composites and/or certain components as such components may be agreed upon by the parties, each party acting reasonably (collectively, the "United Maintenance"), Contractor shall offer United an opportunity to bid in respect of such United Maintenance. [\*\*\*] Contractor also agrees that United shall have the right of first refusal to provide United Maintenance for any ERJ-175 aircraft

------

operating for United under this Agreement. Pursuant to this right of first refusal, if Contractor solicits bids from third parties to provide any of such United Maintenance or receives a bona fide written offer from a third party to provide any of such United Maintenance, then Contractor shall give United written notice of the solicitation of such bids or the receipt by Contractor of such offer (to the extent permitted by applicable confidentiality constraints) and the material terms thereof, and United shall have the right to match or better any such offer. If [\*\*\*], United shall inform Contractor of its interest in matching said offer, then Contractor agrees that it will proceed in good faith to negotiate, [\*\*\*], a binding agreement for such United Maintenance. If United declines to match such offer with such period, then Contractor may enter into a definitive agreement for the provision of such United Maintenance with such third party.<sup>"</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N. Article XII (Insurance) shall be amended by deleting the [\*\*\*] amount in Article XII.A.1(i) and replacing such
amount with [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;O. Article XIII (Liability and Indemnification) of the Agreement shall be deleted and replaced with the new
Article XIII attached hereto as Schedule 6 attached hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;P. Article XVI.C of the Agreement shall be deleted and replaced with the following new Article XVI.C:

"C. (i) If Contractor shall refuse, neglect or fail to cure or perform any one of the following conditions outlined in **Article XVI.C.(i)1** or **Article XVI.C.(i)2** below, United may give Contractor written notice to correct such condition or cure such breach. Upon written notice of breach, Contractor shall have [\*\*\*] in order to cure such breach, and if any such condition or breach shall continue beyond [\*\*\*] after notice to Contractor thereof (a **"Section C Default"**), then United may terminate this Agreement upon [\*\*\*] written notice to Contractor if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Contractor's operations fall below [\*\*\*] performance in all of the following [\*\*\*] for a period of [\*\*\*] months OR for a period of [\*\*\*]:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Controllable Flight Completion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Mishandled Bags; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. On-Time Zero;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Contractor knowingly maintains falsified books or records or submits false reports of a material nature

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) [\*\*\*]"

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Q. Article XVI.F of the Agreement is hereby amended by deleting from the last sentence thereof the words
"sections A, B, C.2 or D". Article XVI.G of the Agreement is hereby amended as follows: Article XVI.G.1 is hereby amended by deleting the first sentence thereof and replacing with the following new sentence:

------

"If United terminates this Agreement pursuant to the terms of this **Article XVI**, then Contractor will be obligated to pay United liquidated damages." Article XVI.G.2 is hereby deleted in its entirety and replaced with the following:

"2. If United is entitled to collect liquidated damages from Contractor as a result of Contractor's material breach of this Agreement, United's liquidated damages shall be calculated as follows: lost contribution (which shall be conclusively deemed to be [\*\*\*] of United's average monthly net revenue, defined as total origination and destination revenue minus taxes and commissions, from Contractor's United Express flights during the immediately preceding [\*\*\*] period) multiplied by the following percentages for each month in the following periods – (a) [\*\*\*] for the first [\*\*\*] following the termination of the Agreement, (b) [\*\*\*] for the next [\*\*\*], and (c) [\*\*\*] for the next [\*\*\*]. Such amounts shall be subject to mitigation to the extent United can replace Contractor's United Express Services taking into account the cost of such replacement services."

In addition, Article XVI.G.3 is hereby deleted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;R. Article XVI.I (Call Option) is hereby amended by deleting Subsections i through iii of Section XVI.I.b and
replacing such Subsections with a new Subsection b.i. that reads as follows: "(i) if United terminates this Agreement for any reason allowed hereunder; or" and by renumbering Subsection b.iv as Subsection b.ii.

The parties also agree that Article XVI.I shall apply to the New Aircraft.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;S. Article XVIII of the Agreement is hereby deleted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;T. Article XIX.C. of the Agreement is hereby amended by the addition of the following language at the end of such
subarticle:

**"Without limiting the foregoing, Contractor and its subcontractors shall abide by the requirements of 41 CFR §§ 60-1.4(a), 60-300.5(a) and 60-741.5(a). These regulations prohibit discrimination against qualified individuals based on their status as protected veterans or individuals with disabilities, and prohibit discrimination against all individuals based on their race, color, religion, sex, or national origin. Moreover, these regulations require that covered prime contractors and subcontractors take affirmative action to employ and advance in employment individuals without regard to race, color, religion, sex, national origin, protected veteran status or disability."**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U. Article XXVI.A. of the Agreement is hereby deleted and replaced with the following:

"A. Neither party shall be liable for delays or failure in performance hereunder caused by acts of God, acts of terrorism or hostilities, war, strike, labor dispute, work stoppage, fire, act of government, court order or any other similar cause, that is in each case beyond the reasonable control of such party ('Force Majeure'); [\*\*\*].

------

Each of the parties acknowledges that it may or may not realize the full economic or other benefits that it expects to realize from this Agreement and that any failure to realize any or all of such benefits in and of itself shall not constitute a Force Majeure.<sup>"</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;V. Appendix E of the Agreement is hereby deleted in its entirety and replaced with the revised Appendix E attached
to this Amendment; for the avoidance of doubt, the "Definitions" section is not part of Appendix E and remains in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W. Appendix F of the Agreement is hereby deleted in its entirety and replaced with the revised Appendix F attached
to this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;X. Republic Airways Holdings Inc. ("Parent") shall execute and deliver a guaranty of Contractor's
obligations under the Agreement in the form attached hereto as Exhibit A. Without derogating from any other terms of the Agreement, if Contractor or Parent participates in any transaction or series of transactions after giving effect to which
Contractor will become the subsidiary of another person or entity, at the time such transactions are consummated, the entity with respect to which Contractor is or will be a subsidiary shall execute and deliver to United a guarantee of the
obligations of Contractor under the Agreement and any related agreements substantially in the form of Exhibit A attached hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Y. United shall have the right to schedule, and Contractor shall be obligated to fly, charter flights on behalf of
United, at the rates set forth in Appendix E to the Agreement (as attached to this Amendment), but subject to Schedule Parameters in Appendix K to the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Z. Contractor shall pay to United, and United shall be subrogated to any and all rights in respect of any and all
rights and remedies [\*\*\*] with respect to, and Contractor shall take any and all reasonable actions to facilitate United's exercise of any and all such rights and remedies, [\*\*\*]. In connection with the foregoing, at Contractor's request,
United shall use commercially reasonable efforts to coordinate with Contractor in regard to any such claim(s), including engaging Contractor in strategic discussions regarding litigation and/or settlement strategy in regard to such claim(s).

AA. United's specifications for cleanliness and aircraft refurbishment as listed in Appendix M attached hereto is hereby incorporated in the Agreement as a new Appendix M. [\*\*\*]

BB. On or prior to September 30, 2015, Contractor shall ensure that all scheduled flights including charter flights conducted under the Agreement are [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CC. Extension of Term of Agreement for ERJ-170 aircraft. Notwithstanding
anything to the contrary in Article II.C.1 of the Agreement or otherwise, the term of the Agreement under Article II.B.1 of the Agreement with respect to each ERJ-170 aircraft shall be extended as set forth in
Schedule 7 attached to the Letter Agreement, at the monthly ownership rates set forth therein.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DD. The Agreement is amended to add an early brake release provision as follows to the end of **Article VIII.C:** 

"7. **Early Brake Release (EBR).**

United shall gather all Aircraft Communication and Reporting System (ACARS) data for each individual ERJ-170 aircraft and ERJ-175 aircraft operated by Contractor for United under the Agreement that has had its Airline Modifiable Interface (AMI) modified to capture such information relating to the measurement of the time periods elapsed (any such elapsed period, an "<u>EBR Period</u>") between aircraft brake release and aircraft wheel movement for departures of all scheduled flights for ERJ-170 aircraft and ERJ-I 75 aircraft as measured by ACARS included on all in-service ERJ-170 aircraft and ERJ-175 aircraft. [\*\*\*] Subject to any confidentiality constraints imposed on United, Contractor shall have the right, upon reasonable request, to audit such data that United has gathered.

The following provisions of this paragraph shall apply from and after [\*\*\*]. The time period goal for EBR Periods (the "<u>EBR Goal</u>") for scheduled flights operated by Contractor for United under the Agreement [\*\*\*]

The above provisions shall equally apply to the ERJ-170 aircraft and ERJ-175 aircraft operated by Contractor in Contractor's United Express Services under the Agreement."

III. CONDITIONS TO EFFECTIVENESS. This Amendment shall become effective upon the last to occur of the following
conditions precedent (the satisfaction of the conditions shall be confirmed by an email or other written exchange between Contractor and United confirming that each party agrees that the conditions hereto have been satisfied):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Approval of this Amendment by Contractor and Parent's respective Board of Directors by September 16,
2014;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Execution and delivery by Republic and United of the amendment to the Q400 CPA and satisfaction of the
conditions precedent thereunder by September 16, 2014; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Execution and delivery of a purchase agreement (or amendment to an existing purchase agreement) between
Republic and Embraer by September 16, 2014 providing for delivery of the 50 ERJ-175 aircraft, on commercial terms set forth in Schedule 5.0 attached to the Letter Agreement, on the delivery schedule
attached hereto.

------

IV. MISCELLANEOUS. Except as otherwise amended herein, the Agreement will remain in full force and effect. The
terms of this Amendment are deemed to be incorporated in, and made a part of, the Agreement. This Amendment may be executed in any number of counterparts, by original or facsimile signature, each of which when executed and delivered shall be deemed
an original and such counterparts together shall constitute on and the same instrument.

[Signature Page Follows.]

------

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

---

| | |
|:---|:---|
| **SHUTTLE AMERICA CORPORATION** | **SHUTTLE AMERICA CORPORATION** |
| **By:** | /s/ Ethan Blank |
| **Name:** Ethan J. Blank<br> **Title:** Vice President General Counsel | **Name:** Ethan J. Blank<br> **Title:** Vice President General Counsel |
| **UNITED AIRLINES, INC.** | **UNITED AIRLINES, INC.** |
| By: | /s/ Gerard Lederman |
| Name: Gerard Lederman<br> Title: Senior Vice President Finance, Procurement & Treasurer | Name: Gerard Lederman<br> Title: Senior Vice President Finance, Procurement & Treasurer |

---

------

**SCHEDULE 1** 

**NEW AIRCRAFT INDUCTION SCHEDULE<sup>1</sup>** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| AC # | Delivery Month | AC # | Delivery Month | AC # | Delivery Month |
| 1 | Jul/15 | 16 | [\*\*\*] | 36 | [\*\*\*] |
| 2 | [\*\*\*] | 17 | [\*\*\*] | 37 | [\*\*\*] |
| 3 | [\*\*\*] | 18 | [\*\*\*] | 38 | [\*\*\*] |
| 4 | [\*\*\*] | 19 | [\*\*\*] | 39 | [\*\*\*] |
| 5 | [\*\*\*] | 20 | [\*\*\*] | 40 | [\*\*\*] |
| 6 | [\*\*\*] | 21 | [\*\*\*] | 41 | [\*\*\*] |
| 7 | [\*\*\*] | 22 | [\*\*\*] | 42 | [\*\*\*] |
| 8 | [\*\*\*] | 23 | [\*\*\*] | 43 | [\*\*\*] |
| 9 | [\*\*\*] | 24 | [\*\*\*] | 44 | [\*\*\*] |
| 10 | [\*\*\*] | 25 | [\*\*\*] | 45 | [\*\*\*] |
| 11 | [\*\*\*] | 26 | [\*\*\*] | 46 | [\*\*\*] |
| 12 | [\*\*\*] | 27 | [\*\*\*] | 47 | [\*\*\*] |
| 13 | [\*\*\*] | 28 | [\*\*\*] | 48 | [\*\*\*] |
| 14 | [\*\*\*] | 29 | [\*\*\*] | 49 | [\*\*\*] |
| 15 | [\*\*\*] | 30 | [\*\*\*] | 50 | Aug/17 |
|  |  | 31 | [\*\*\*] |  |  |
|  |  | 32 | [\*\*\*] |  |  |
|  |  | 33 | [\*\*\*] |  |  |
|  |  | 34 | [\*\*\*] |  |  |
|  |  | 35 | [\*\*\*] |  |  |

---

<sup>1</sup> Induction will be approximately [\*\*\*] after delivery; United shall be responsible for ownership costs during the induction period, not to exceed [\*\*\*]. Contractor shall use reasonable efforts to minimize the time to induct such aircraft. AC [\*\*\*] shall be the first spare operational aircraft with each [\*\*\*] aircraft inducted beyond [\*\*\*] designated as the next spare aircraft. [\*\*\*] 

------

**Appendix E – REIMBURSEMENT CATEGORIES** 

**CARRIER CONTROLLED COSTS IN JANUARY 1, 2014 ECONOMICS** 

United shall pay Contractor the following Reimbursement Category Unit Rates for Contractor's United Express flights (including charters) operated using the aircraft set forth below:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **[\*\*\*]** | **Carrier Controlled Costs** | **Unit (Driver)** | **Carrier**<br> **Controlled**<br> **Cost**<br> **(Growth)** | **Annual Adjustment**<br> **Factor** |
| **[\*\*\*]** | **Carrier Controlled Costs** | **Unit (Driver)** | **RJ-**<br> **170s/175s** | **Annual Adjustment**<br> **Factor** |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*]<br> [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*]<br> [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*]<br> [\*\*\*]<br> [\*\*\*]<br> [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*]<br> [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*]<br> [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*]<br> [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] |  |  |  |  |

---

------

**PASS-THROUGH COSTS** 

---

| | | | |
|:---|:---|:---|:---|
| **[\*\*\*]** | **[\*\*\*]** | **[\*\*\*]** | **[\*\*\*]** |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*]<br> [\*\*\*]<br> [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*]<br> [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] |  |  |  |

---

------

**<u>APPENDIX F</u>**

<u>INCENTIVE PROGRAM</u> 

[\*\*\*]

[\*\*\*]

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | [\*\*\*] |  |  |  | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] |  |  |  |  |  |  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |

---

[\*\*\*]

------

**APPENDIX M** 

**Aircraft Cleanliness and Refurbishment Standards** 

**Aircraft Cleanliness Standards** 

[\*\*\*]

**Aircraft Refurbishment Standards** 

[\*\*\*]

------

---

| | | | |
|:---|:---|:---|:---|
|  | **[\*\*\*]Statement of Work** | **[\*\*\*]Statement of Work** | **[\*\*\*]Statement of Work** |
|  | **[\*\*\*]** | **[\*\*\*]** | **[\*\*\*]** |
| [\*\*\*] |  |  |  |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] |  |  |  |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] |  |  |  |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] |  |  |  |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] |  |  |  |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] |  |  |  |
| [\*\*\*] |  |  |  |

---

[\*\*\*]

**[\*\*\*]** 

------

**SCHEDULE 4** 

[\*\*\*]

------

**Schedule 6** 

**XIII. LIABILITY AND INDEMNIFICATION** 

**A. CONTRACTOR INDEMNIFICATION OF' UNITED** 

**Contractor** shall be liable for and hereby agrees to fully defend. release, discharge. indemnify and hold harmless United, United Continental Holdings, Inc. (<sup>"</sup>United's Parent"), their respective subsidiaries and their respective directors, officers, employees and agents, from and against any and all claims, demands, damages, liabilities, suits, judgments, actions, causes of action, losses, fines, penalties, costs and expenses of any kind, character or nature whatsoever, including reasonable attorneys' fees, costs and expenses in connection therewith and expenses of investigation and litigation thereof, which may be suffered by, accrued against, charged to, or recoverable from United, United's Parent, their respective subsidiaries or their respective directors, officers, employees or agents, including but not limited to, any such losses, costs and expenses involving (i) death or injury (including claims of emotional distress and other non-physical injury by passengers) to any person including any of Contractor's, United's, United's Parent's or their respective subsidiaries' directors, officers, employees or agents, (ii) loss of, damage to, or destruction of property (including real, tangible and intangible property, and specifically including regulatory property such as route authorities, slots and other landing rights), including any loss of use of such property, and (iii) damages due to delays in any manner, in each case arising out of, connected with, or attributable to (w) any act or omission by Contractor or any of its directors, officers, employees or agents relating to the provision of Contractor's United Express Services, (x) the performance, improper performance, or non-performance of any and all obligations to be undertaken by Contractor or any of its directors, officers, employees or agents pursuant to this Agreement, or (y) the operation, non-operation, or improper operation of the Aircraft Used in United Express Service or Contractor's equipment or facilities at any location, in each case excluding only claims, demands, damages, liabilities, suits, judgments, actions, causes of action, losses, costs and expenses to the extent resulting from the gross negligence or willful misconduct of United or its directors, officers, agents or employees (other than gross negligence or willful misconduct imputed to such indemnified person by reason of its interest in a Aircraft Used in United Express Service). Contractor will use commercially reasonable efforts to cause and assure that Contractor will at all times be and remain in custody and control of all aircraft, equipment, and facilities of, or operated by, Contractor, and United and its directors, officers, employees and agents shall not, for any reason, be deemed to be in custody or control, or a bailee, of such aircraft, equipment or facilities.

**B. UNITED INDEMNIFICATION OF CONTRACTOR** 

United shall be liable for and hereby agrees fully to defend, release, discharge, indemnify, and hold harmless Contractor, Contractor's Parent, their respective directors, officers, employees, and agents from and against any and all claims, demands, damages, liabilities, suits, judgments, actions, causes of action, losses, fines, penalties, costs and expenses of any kind, character or nature whatsoever, including reasonable attorneys' fees, costs and expenses in connection therewith and expenses of investigation and litigation thereof, which may be suffered by, accrued against, charged to, or recoverable from Contractor, Contractor's Parent or their respective directors, officers, employees or agents, including but not limited to, any such losses, costs and

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expenses involving (i) death or injury (including claims of emotional distress and other non-physical injury by passengers) to any person including any of Contractor's, Contractor's Parent's, United's or United's Parent's directors, officers, employees or agents (excluding Contractor as such an agent), (ii) loss of, damage to, or destruction of property (including any loss of use of such property including real, tangible and intangible property, and specifically including regulatory property such as route authorities, slots and other landing rights), and (iii) damages due to delays in any manner, in each case arising out of, connected with, or attributable to, (x) the performance, improper performance, or nonperformance of any and all obligations to be undertaken by United or any of its directors, officers, employees or agents (excluding Contractor as such an agent) pursuant to this Agreement, (y) the operation, non-operation or improper operation of United's aircraft, equipment or facilities (excluding, for the avoidance of doubt, Aircraft Used in United Express Service and any equipment or facilities leased or subleased by United to Contractor) at any location, in each case excluding only claims, demands, damages, liabilities, suits judgments, actions, causes of action, losses, fines, penalties, costs and expenses to the extent resulting from the negligence or willful misconduct of Contractor or its directors, officers, agents or employees. United will use commercially reasonable efforts to cause and assure that United will at all times be and remain in custody and control of any aircraft, equipment and facilities of, or operated by, United (excluding United aircraft operated by Contractor hereunder), and Contractor and its directors, officers, employees and agents shall not, for any reason, be deemed to be in the custody or control, or a bailee, of such aircraft, equipment or facilities.

**C. INDEMNIFICATION CLAIMS** 

A party (the "<u>Indemnified Party</u>") entitled to indemnification from another party under the terms of this Agreement (the "<u>Indemnifying Party</u>") shall provide the Indemnifying Party with prompt written notice (an "<u>Indemnity Notice</u>") of any third party claim which the Indemnified Party believes gives rise to a claim for indemnity against the Indemnifying Party hereunder. Notwithstanding the foregoing, the failure of an Indemnified Party to promptly provide an Indemnity Notice shall not constitute a waiver by the Indemnified Party to any right to indemnification or otherwise relieve such Indemnifying Party from any liability hereunder unless and only to the extent that the Indemnifying Party is materially prejudiced as a result thereof. The Indemnifying Party shall be entitled, if it accepts financial responsibility for the third party claim, to control the defense of or to settle any such third party claim at its own expense and by its own counsel; *provided* that no settlement by the Indemnifying Party of such a claim will be binding on the Indemnified Party for purposes of the indemnification provisions hereof without the prior written consent of such Indemnified Party to such settlement, which consent may not be unreasonably withheld, conditioned or delayed. The Indemnified Party shall provide the Indemnifying Party with such information as the Indemnifying Party shall reasonably request to defend any such third party claim and shall otherwise cooperate with the Indemnifying Party in the defense of any such third party claim. Except as set forth in this **Article XIII.C**, no settlement or other compromise or consent to a judgment by the Indemnified Party with respect to a third party claim as to which the Indemnifying Party is asserted to have an indemnity obligation hereunder will be binding on the Indemnifying Party for purposes of the indemnification provisions hereof without the prior written consent of such Indemnifying Party to such settlement, which consent may not be unreasonably withheld, conditioned or delayed, it being agreed however that it shall be reasonable for the Indemnifying Party to withhold or delay its consent if the Indemnifying Party reasonably asserts that the claim is not fully covered by the indemnity provided

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hereunder, and the entering into of any settlement or compromise or the consent to any judgment in violation of the foregoing shall constitute a waiver by the Indemnified Party of its right to indemnity hereunder to the extent the Indemnifying Party was prejudiced thereby. Any Indemnifying Party shall be subrogated to the rights of the Indemnified Party to the extent that the Indemnifying Party pays for any loss, damage or expense suffered by the Indemnified Party hereunder. If the Indemnifying Party does not accept financial responsibility for the third party claim or fails to defend against the third party claim that is the subject of an Indemnity Notice within 30 days of receiving such notice (or sooner if the nature of the third party claim so requires), or otherwise contests its obligation to indemnify the Indemnified Party in connection therewith, the Indemnified Party may, upon providing written notice to the Indemnifying Party, pay, compromise or defend such third party claim without the prior consent of the (otherwise) Indemnifying Party. In the latter event, the Indemnified Party, by proceeding to defend itself or settle the matter, does not waive any of its rights hereunder to later seek reimbursement from the Indemnifying Party.

**D. EMPLOYER'S LIABILITY; INDEPENDENT CONTRACTORS; WAIVER OF CONTROL** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Employer's Liability and Workers' Compensation.</u>* Each party hereto assumes full responsibility for its employer's and workers' compensation liability to its respective officers, directors, employees or agents on account of injury or death resulting from or sustained in the performance of their respective service under this Agreement. Each party, with respect to its own employees, accepts full and exclusive liability for the payment of workers' compensation and employer's liability insurance premiums with respect to such employees, and for the payment of all taxes, contributions or other payments for unemployment compensation or old age or retirement benefits, pensions or annuities now or hereafter imposed upon employers by the government of the United States or any other governmental body, including state, local or foreign, with respect to such employees measured by the wages, salaries, compensation or other remuneration paid to such employees, or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Employees, etc., of Contractor</u>.* The employees, agents, and independent contractors of Contractor engaged in performing any of the services Contractor is to perform pursuant to this Agreement are employees, agents, and independent contractors of Contractor for all purposes, and under no circumstances will be deemed to be employees, agents or independent contractors of United. In its performance under this Agreement, Contractor will act, for all purposes, as an independent contractor and not as an agent for United. Notwithstanding the fact that Contractor has agreed to follow certain procedures, instructions and standards of service of United pursuant to this Agreement, United will have no supervisory power or control over any employees, agents or independent contractors engaged by Contractor in connection with its performance hereunder, and all complaints or requested changes in procedures made by United will, in all events, be transmitted by United to Contractor's designated representative. Nothing contained in this Agreement is intended to limit or condition Contractor's control over its operations or the conduct of its business as an air carrier.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>Employees, etc., of United.</u>* The employees, agents, and independent contractors of United engaged in performing any of the services United is to perform pursuant to this Agreement are employees, agents, and independent contractors of United *for* all purposes, and under no circumstances will be deemed to be employees, agents, or independent contractors of Contractor. Contractor will have no supervision or control over any such United employees, agents and independent contractors and any complaint or requested change in procedure made by Contractor will be transmitted by Contractor to United's designated representative. In its performance under this Agreement, United will act, for all purposes, as an independent contractor and not as an agent for Contractor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *<u>Contractor Flights.</u>* The fact that Contractor's operations are conducted under United's Marks and listed under the flight code designated by United will not affect their status as flights operated by Contractor for purposes of this Agreement or any other agreement between the parties, and Contractor and United agree to advise all third parties, including passengers, of this fact.

**E. SURVIVAL** 

The provisions of this Article XIII shall survive the termination of this Agreement for a period of seven years.

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**EXHIBIT A** 

**Form of Guarantee of Parent** 

THIS GUARANTEE AGREEMENT (this "***Guarantee***")*,* ****effective as of September *<u>16</u>,* ****2014 (the "***Effective*** ***Date***") ****by REPUBLIC AIRWAYS HOLDINGS INC., a Delaware corporation ("***Guarantor***")*,* ****for the benefit of UNITED AIRLINES, INC., a Delaware corporation ("***United***").

**RECITALS** 

WHEREAS United and Shuttle America Corporation, an Indiana corporation ("***Contractor***") have previously entered into that certain United Express Agreement dated as of December 28<sup>th</sup>, 2006, United Contract # 172884 (as amended previously by the parties thereto, the "***CPA***");

WHEREAS, pursuant to the CPA, Contractor is obligated, among other things, to provide United Express services to United and, in certain circumstances, to make certain reconciliation or indemnity payments to United;

WHEREAS, Contractor is the wholly-owned subsidiary of Guarantor; and WHEREAS, United and Contractor are entering into the Seventh Amendment to the CPA (the "Seventh Amendment") as of the date hereof, and it is a condition precedent to such Seventh Amendment that Guarantor execute and deliver this Guarantee;

NOW, THEREFORE, for and in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which Guarantor acknowledges, Guarantor covenants and agrees for the benefit of United as follows:

**ARTICLE I** 

**DEFINITIONS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>Certain Definitions</u>. Any terms not defined herein shall have the definition given such term in the CPA. As used in this Agreement, the following terms have the following meanings:

***"Beneficiaries"*** has the meaning given to that term in Section 3.07.

***"Contractor"*** has the meaning given to that term in the Recitals.

***"CPA"*** has the meaning given to that term in the Recitals.

***"Default Interest"*** has the meaning given to that term in Section 3.06.

***"Documents"*** has the meaning given to that term in Section 2.02(b).

***"Effective Date"*** has the meaning given to that term in the preamble.

***"Guarantee"*** has the meaning given to that term in the preamble.

***"Guarantor"*** has the meaning given to that term in the preamble.

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***"United<sup>"</sup>*** has the meaning given to that term in the Recitals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. <u>Other Definitions.</u> Other terms defined in this Guarantee have the meanings so given them. Capitalized terms used but not defined herein shall the same meaning herein as in the CPA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. <u>Terminology.</u> Unless the context of this Guarantee clearly requires otherwise, (a) pronouns, wherever used herein, and of whatever gender, shall include natural persons and corporations, partnerships, limited liability companies and entities of every kind and character, (b) the singular shall include the plural wherever and as often as may be appropriate, (c) the word "***includes***" or "***including***" ****shall mean "***including without limitation***", ****and (d) the words "***hereof***", ****"***herein***", ****"***hereunder***", ****and similar terms in this Guarantee shall refer to this Guarantee as a whole and not any particular section or article in which such words appear. The section, article, and other headings in this Guarantee are for reference purposes and shall not control or affect the construction of this Guarantee or the interpretation hereof in any respect. Article, section, subsection, and exhibit references are to this Guarantee unless otherwise specified. All exhibits attached to this Guarantee constitute a part of this Guarantee and are incorporated herein. All references to a specific time of day in this Guarantee shall be based upon Central Standard Time or Central Daylight Time, whichever is applicable.

**ARTICLE II** 

**GUARANTEE** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>Guarantee of Obligations.</u> Guarantor unconditionally, absolutely and irrevocably guarantees unto the Beneficiaries the timely payment and performance by Contractor and Guarantor of all of their respective obligations under the CPA, including the obligation to provide United Express services, to provide ground handling services, and to make all indemnification payments and reconciliation payments that Contractor or Guarantor is required to make pursuant to the CPA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. <u>Guarantee Absolute.</u> This Guarantee is absolute, continuing and independent of, and in addition to, any and all rights and remedies United may have under the CPA and any other guaranties or documents now or hereafter given in connection therewith by Guarantor or others. Except as otherwise expressly herein provided, the enforceability of Guarantor's obligations hereunder in accordance with the terms hereof shall not in any way be discharged, impaired or otherwise affected by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Any change in the time, manner or place of payment of amounts due under the CPA, or any other change or
modification in or of any terms, provisions, covenants or conditions of any or all of them;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. The entering into, or the modification or amendment in **  or of, any lease or sublease of any aircraft or
engine, any contract or arrangement for the maintenance or refurbishment of any aircraft or engine, any contract or arrangement for the provision of ground handling services, any lease, sublease or other agreement relating to the use of any terminal
or non-terminal airport facility, or any loan agreement, note, deed of trust, assignment, contract or other document or agreement entered into by Contractor or Guarantor relating to the provision of United
Express Service (together with the CPA, the "  ***Documents*** ");

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. Any lack of validity or enforceability of any of the Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. Any release or amendment or waiver of or consent to the modification of any other guarantee of payment or
performance of all or any obligations under the CPA, or any sale or transfer by Contractor of any of its interest in the CPA (without implying that Contractor has consented or will consent to any such sale or transfer);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. Any sale or transfer by Guarantor of any of its interest in Contractor (without implying that Guarantor has
consented or will consent to any such sale or transfer);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. Any release or waiver of or delay in the enforcement of rights against Contractor, Guarantor or any other
person or entity under any of the Documents or against any security thereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vii. The exercise by United of any of its rights or remedies under any one or more of the Documents; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;viii. Any other circumstance which might otherwise constitute a defense available to, or discharge of, Guarantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. <u>Guarantee of Payment</u>. This Guarantee is a guarantee of payment and performance and not merely a guarantee of collection, and Guarantor's liabilities and obligations under this Guarantee are and shall at all times continue to be absolute, irrevocable and unconditional in all respects in accordance with the terms of this Guarantee, and shall at all times be valid and enforceable without set off, deduction or counterclaim irrespective of any other agreements or circumstances of any nature whatsoever which might otherwise constitute a defense to this Guarantee or the obligations of Guarantor under this Guarantee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. <u>Financial Statements</u>. Not later than ninety (90) days following the end of each calendar year, Guarantor shall deliver to United a copy of Guarantor's audited consolidated financial statements for such calendar year, certified by Guarantor as being true, correct and complete, together with a report thereon of Guarantor's independent auditors; *provided,* that Guarantor shall not be required to deliver financial statements pursuant to this sentence if it is a reporting issuer pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, and such financial statements are timely filed with the Securities and Exchange Commission pursuant thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. <u>Representations</u>. Guarantor represents, warrants and covenants that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. All financial statements heretofore delivered to United with respect to Guarantor are, and all financial
statements hereafter delivered to United by Guarantor will be, true and correct in all material respects and fair presentations of Guarantor as of the respective dates thereof;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. No material adverse change has occurred in the financial condition of Guarantor since December 31, 2013;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. Guarantor is a duly organized and validly existing corporation in good standing under the laws of the State of
Delaware. Guarantor has the corporate power and authority to enter into and perform its obligations under this Guarantee. Guarantor is duly qualified to do business as a foreign corporation under the laws of each jurisdiction that requires such
qualification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. This Guarantee has been duly executed and delivered by Guarantor and constitutes the legal, valid and binding
obligation of Guarantor, fully enforceable against Guarantor in accordance with the terms hereof except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the rights of creditors and subject
to the principles of equity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. Neither the execution or delivery of this Agreement nor the performance by Guarantor of the transactions
contemplated hereby will (i) violate, conflict with, or constitute a default under any of the terms of Guarantor's certificate of incorporation, by-laws, or any provision of, or result in the
acceleration of any obligation under, any material contract, sales commitment, license, purchase order, security agreement, mortgage, note, deed, lien, lease or other agreement to which Guarantor is a party or by which any of them or any of their
respective properties or assets may be bound, (ii) result in the creation or imposition of any lien, charge or encumbrance in favor of any third person or entity, (iii) violate any law, statute, judgment, decree, order, rule or regulation
of any governmental authority or body, or (iv) constitute any event which, after notice or lapse of time or both, would result in such violation, conflict, default, acceleration or creation or imposition of liens, charges or encumbrances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. No consent of any other person and no consent, license, permit, approval or authorization of, exemption by,
notice or report to, or registration, filing or declaration with, any governmental authority, bureau or agency is required in connection with the execution, delivery or performance by Guarantor, the enforceability against Guarantor, or the validity,
of this Guarantee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vii. Guarantor has, independently and with advice of counsel of Guarantor's choice and without reliance upon
United, and based upon such documents and information as Guarantor has deemed appropriate, made its own analysis and decision to enter into this Guarantee;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;viii. The financial statements (including the related notes and supporting schedules) of Guarantor delivered (or, if
filed with the Securities and Exchange Commission, made available) to United immediately prior to the date hereof fairly present in all material respects the consolidated financial position of Guarantor and its results of operations as of the dates
and for the periods specified therein. Since the date of the latest of such financial statements, there has been no material adverse change nor any development or event involving a prospective material adverse change with respect to Guarantor. Such
financial statements have been prepared in accordance with generally accepted accounting principles in the United States consistently applied throughout the periods involved, except to the extent disclosed therein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ix. Guarantor is insured by insurers of recognized financial responsibility against such losses and risks and in
such amounts and with such deductibles as are customary in the businesses in which it is engaged, and Guarantor has not received notice of cancellation or non-renewal of such insurance. All such insurance is
outstanding and duly in force on the date hereof. Guarantor has no reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be
necessary to continue its business at a cost that would not have a material adverse effect on Guarantor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;x. No litigation, arbitration, investigation or administrative proceeding of or before any court, arbitrator or
governmental authority, bureau or agency is currently pending or, to the knowledge of Guarantor, threatened: (i) with respect to this Guarantee or any of the transactions contemplated by this Guarantee; (ii) with respect to the CPA or any
of the transactions contemplated thereby; or (iii) against or affecting Guarantor, or any of its property or assets, which, if adversely determined, would have a material adverse effect on the ability of Guarantor to perform its obligations
hereunder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;xi. Guarantor has filed or caused to be filed all tax returns required to be filed, and has paid all taxes due on
said returns or on any assessments made against Guarantor, which if not filed or not paid would have a material adverse effect on the business, operations, assets or condition, financial or otherwise, of Guarantor (other than those being contested
in good faith by appropriate proceedings for which adequate reserves have been provided for in accordance with generally accepted accounting principles).

Without limiting the other remedies of the Beneficiaries as a result of a breach of any of the foregoing representations and warranties, Guarantor hereby agrees to indemnify the Beneficiaries, their Affiliates and their respective officers, directors, partners, members, employees and agents, and hold them harmless from and against any and all losses, claims, damages, liabilities, expenses (including without limitation reasonably legal fees and expenses), judgments, fines and settlements any of them may incur as a result of any material breach of any representation or warranty contained herein.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. <u>Reinstatement</u>. This Guarantee shall continue to be effective, or be reinstated (as the case may be) if at any time payment by Contractor or Guarantor of all or any part of any sum payable pursuant to the CPA, this Guarantee or the other Documents is rescinded or otherwise must be returned by United upon Contractor's insolvency, bankruptcy or reorganization, all as though such payment had not been made. Until all of the obligations guaranteed hereunder shall have been paid or performed in full, Guarantor shall have no right of subrogation or any other right to enforce any remedy which any of the Beneficiaries now has or may hereafter have against Contractor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j. <u>Self-Help Rights.</u> If Guarantor fails or refuses to perform any or all monetary or non-monetary obligations that are guaranteed hereunder and, in the case of any non-monetary obligations, such failure or refusal continues for twenty (20) days following written notice thereof to Guarantor, then, in addition to any other rights and remedies which any Beneficiary may have hereunder or elsewhere, and ****not in limitation thereof, any Beneficiary shall have the right (but without any obligation so to do) to take action (including the payment of amounts due to any third party) to satisfy such obligation either before or after the exercise of any right or remedy of United against Contractor or Guarantor. The amounts of any and all expenditures so made by United in satisfaction of such obligation **(INCLUDING ANY SUCH EXPENDITURE ARISING FROM OR IN CONNECTION WITH UNITED'S NEGLIGENCE IN TAKING SUCH ACTION, BUT <u>EXCEPTING</u> ANY SUCH EXPENDITURES TO THE EXTENT PROVEN TO HAVE BEEN CAUSED BY OR ARISING FROM THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF UNITED)** shall be immediately due and payable to United by Guarantor.

**ARTICLE III** 

**MISCELLANEOUS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k. <u>Exhausting Recourse.</u> United shall not be obligated to pursue or exhaust its recourse against Contractor or any other Person or guarantor, or any security it may have for satisfaction of the obligations guarantied hereunder, before being entitled to performance by Guarantor of each and every one of the obligations hereunder. No delay on the part of Beneficiaries in exercising any right or remedy under this Guarantee or failure to exercise the same shall operate as a waiver in whole or in part of any such right or remedy. No notice to or demand on Contractor or failure to give any such notice to or make any such demand on Contractor shall be deemed to be a waiver of the obligations of Guarantor hereunder or of the right of Beneficiaries to take further action without notice or demand as provided in this Guarantee. No course of dealing between Guarantor and Beneficiaries shall change, modify or discharge, in whole or in part, this Guarantee or any of the obligations of Guarantor hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;l. <u>Guarantee Remains Effective.</u> This Guarantee shall remain in full force and effect, notwithstanding any invalidity, irregularity, or unenforceability of any one or more of the CPA. No release or discharge of Contractor in any receivership, bankruptcy, winding-up or other creditor proceedings shall affect, diminish or otherwise impair or otherwise be a defense to the enforcement of this Guarantee by the Beneficiaries. The liability of Guarantor shall not be affected by United causing work necessary for the provision of United Express Service to be done, nor by United's pursuing any other remedies provided for in the Documents.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;m. <u>No Conditions.</u> This Guarantee has been delivered free of any conditions and, except as otherwise expressly set forth herein, no representations have been made to Guarantor affecting or limiting the liability of Guarantor hereunder except as expressly provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;n. <u>No Bar or Defense; Waiver of Defenses</u>. No action or proceeding brought or instituted under this Guarantee and no recovery in pursuance thereof shall be a bar or defense to any further action or proceeding which may be brought under this Guarantee by reason of any further default or defaults hereunder or in the performance and observance of the terms, covenants, conditions, and provisions in the Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o. <u>Liability Independent</u>. The liability of Guarantor hereunder is independent of any other bonds or guaranties or other obligations at any time in effect with respect to the Documents and may be enforced regardless of the existence, validity, enforcement or non-enforcement of any such other guaranties or other obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;p. <u>Expenses</u>. Any and all amounts due and owing by Guarantor to United hereunder that are not paid in full to United within ten (10) days following the earlier of the due date or demand therefor shall bear interest from the date such amounts were due hereunder until paid in full at the highest contract rate of interest permitted by applicable law (the ***"Default Interest***").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;q. <u>Binding Effect</u>. Neither this Guarantee nor any provisions hereof may be amended, modified, waived, discharged, or terminated orally, except by an instrument in writing duly signed by or on behalf of the party against whom enforcement of such amendment, modification, waiver, discharge or termination is sought. This Guarantee shall inure to the benefit of United and its successors and assigns (collectively, the "***Beneficiaries***"), and shall be binding upon Guarantor and its successors and assigns; *provided, however,* that Guarantor shall in no event have the right to assign or transfer Guarantor's obligations and liabilities under this Guarantee in whole or part and any such attempted assignment or transfer without the prior written consent of United shall be null and void and of no force or effect. This Guarantee is intended to be for the benefit of, and shall be enforceable by, only the Beneficiaries and not by any third parties (including creditors of the Beneficiaries).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;r. <u>Entire Agreement</u>. This Guarantee, together with the CPA, to the extent references are made thereto in this Guarantee, contain the undersigned's sole and entire understanding and agreement with respect to its entire subject matter, and all prior negotiations, discussions, commitments, representations, agreements and understandings heretofore had between United and Guarantor with respect thereto are merged herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;s. <u>Governing Law.</u> This instrument shall be governed by and construed in accordance with the laws of the State of Illinois.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;t. <u>Reliance</u>. Guarantor acknowledges that United will rely upon this Guarantee in entering into the Seventh Amendment of even date herewith.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;u. <u>Notices</u>. Unless otherwise expressly permitted by the terms of this Guarantee, all notices**,** consents, approvals and other communications required or permitted hereunder shall be in writing and shall be deemed to have been properly given if delivered by hand personally to the addressee or sent overnight by a nationally recognized air courier, and

*If directed to Guarantor, addressed to*:

Republic Airways Holdings Inc.

8909 Purdue Road, Suite 300

Indianapolis, IN 46268

Attention: President and Chief Executive Officer

Telecopy No.: [\*\*\*]

*with a copy to*:

Republic Airways Holdings Inc.

8909 Purdue Road, Suite 300

Indianapolis, IN 46268

Attention: Vice President, General Counsel

Telecopy No.: [\*\*\*]

*If directed to United, addressed to*:

United Airlines, Inc.

233 South Wacker Drive

Chicago, IL 60606

Attention: Senior Vice President – United Express

Facsimile No.: [\*\*\*]

*with a copy to*:

United Airlines. Inc.

233 South Wacker Drive

Chicago, IL 60606

Attention: Associate General Counsel – Commercial Transactions, Finance & Fleet

or to such other address as last designated by a party by notice in writing to the other party hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. <u>Waiver of Jury Trial</u>. **Guarantor and United each hereby knowingly, voluntarily and intentionally waive the right to a trial by jury in respect of any litigation based hereon, arising out of, under or in connection with this Guarantee. This waiver is a material inducement for Guarantor to deliver and United to accept this Guarantee.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;w. <u>Drafting of Guarantee</u>. Guarantor represents and warrants that (i) it was represented by counsel of its choice, who has reviewed this Guarantee and advised it of the contents and meaning; (ii) it is signing this Guarantee voluntarily and with full understanding of its contents and meaning; (iii) it waives any claim or defense that this Guarantee should be construed more strictly against the other party as the drafter thereof.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;x. <u>Severability</u>. If any provision of this Guarantee or its application to any Person or circumstance is held invalid or unenforceable to any extent, the remainder of this Guarantee and the application of that provision to other Persons or circumstances is not affected in that provision shall be enforced to the greatest extent permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;y. <u>Further Assurances</u>. In connection with this Guarantee and the transactions contemplated by it, Guarantor shall execute and deliver any additional documents and instruments and perform any additional acts that may be necessary or appropriate to effectuate and perform the provisions of this Guarantee and those transactions.

Without derogating from any other terms of the CPA, Guarantor hereby agrees that it shall not participate in any transaction or series of transactions if, after giving effect to such transaction or series of transactions, Contractor will become the subsidiary of another person or entity, unless at the time such transactions are consummated the entity with respect to which Contractor is or will be a subsidiary executes and delivers to United a guarantee of the obligations of Contractor under the CPA and all related agreements substantially in the form of this Guarantee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;z. <u>Multiple Counterparts.</u> This Guarantee may be executed in any number of counterparts and with the same effect as if all signing parties had signed the same document. All counterparts shall be construed together and constitute the same instrument.

------

EXECUTED as of the Effective Date.

---

| | |
|:---|:---|
| GUARANTOR: | GUARANTOR: |
| REPUBLIC AIRWAYS HOLDINGS INC. | REPUBLIC AIRWAYS HOLDINGS INC. |
| By: |  |
|  | Name: Bryan Bedford |
|  | Title: Chairman, President & CEO |

---

## Exhibit 10.27

**Exhibit 10.27.7** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

**EIGHTH AMENDMENT TO UNITED EXPRESS AGREEMENT** 

This Eighth Amendment to the United Express Agreement (the "**Amendment**") is dated as of August 24, 2015 by and between **UNITED AIRLINES,** INC., a Delaware corporation, with its corporate offices located at 233 South Wacker Drive, Chicago, Illinois 60606 ("**United**"), and **SHUTTLE AMERICA CORPORATION**, an Indiana corporation, with its corporate offices located at 8909 Purdue Road, Suite 300, Indianapolis, IN 46268 ("**Contractor**").

**WHEREAS**, the parties previously entered into that certain United Express Agreement dated as of December 28th, 2006, United Contract # 172884 (as amended previously by the parties hereto the "**Agreement**"); and

**WHEREAS**, pursuant to Article XXXI of the Agreement, the parties may modify or amend the Agreement; and

**WHEREAS**, the parties desire to further amend the Agreement to remove the rate in Carrier Controlled Costs related to completed flight hours and to restore the rate related to completed block hours that was in effect prior to the Seventh Amendment to the Agreement dated September 16, 2014 by and between the parties (the "Seventh Amendment") in accordance with the terms and conditions of this Amendment; and

**NOW THEREFORE,** for good and valuable consideration, the receipt, sufficiency, and adequacy of which are hereby acknowledged, the parties hereby agree as follows:

I. DEFINITIONS

Capitalized terms used in this Amendment and not otherwise defined in this Amendment shall have the meanings assigned to them in the Agreement.

II. SCOPE, TERM, and CONDITTONS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Article VIII.C.7 (Early Brake Release) of the Agreement is hereby amended by deleting [\*\*\*] and replacing it
with the following:

[\*\*\*]

III. MISCELLANEOUS. Except as otherwise amended herein, the Agreement will remain in full force and effect. The terms of this Amendment are deemed to be incorporated in and made a part of, the Agreement. This Amendment may be executed in any number of counterparts, by original or facsimile signature, each of which when executed and delivered shall be deemed .an original and such counterparts together shall constitute one and the same instrument.

------

**IN WITNESS WHEREOF**, the parties hereto have by their duly authorized officers caused this Amendment to be entered into and signed as of the effective date first above written.

---

| | | | |
|:---|:---|:---|:---|
| **UNITED AIR LINES, INC.** | **UNITED AIR LINES, INC.** | **SHUTTLE AMERICA CORP.** | **SHUTTLE AMERICA CORP.** |
| By: | /s/ Bradford R. Rich | By: | /s/ Bryan K. Bedford |
|  | Bradford R. Rich |  | Bryan K. Bedford |
|  | Senior Vice President, United Express |  | Chief Executive Officer |

---

------

Attachment 1

[\*\*\*]

------

[\*\*\*]

## Exhibit 10.27

**Exhibit 10.27.8** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

**TENTH AMENDMENT TO UNITED EXPRESS AGREEMENT** 

This Tenth Amendment to the United Express Agreement (the "**Amendment**") is dated as of October 13, 2015 by and between **UNITED AIRLINES, INC.**, a Delaware corporation, with its corporate offices located at 233 S. Wacker Drive, Chicago, Illinois 60606 ("**United**"), and **SHUTTLE AMERICA CORPORATION**, an Indiana corporation**.** with its corporate offices at 8909 Purdue Road, Suite 300, Indianapolis, IN 46268 ("**Contractor**").

**WHEREAS,** the parties previously entered into that certain United Express Agreement dated as of December 28<sup>th</sup>, 2006, United Contract *#* 172884 (together with all prior amendments thereto, the "**Agreement**"); and

**WHEREAS,** pursuant to Article XXXI of the Agreement, the parties may modify or amend the Agreement; and

**WHEREAS,** the parties desire to amend the Agreement, [\*\*\*];

**NOW THEREFORE**, for good and valuable consideration, the receipt, sufficiency, and adequacy of which are hereby acknowledged, the parties hereby agree as follows:

I. DEFINITIONS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. <u>Defined terms.</u> Capitalized terms used in this Amendment and not otherwise defined in this Amendment
shall have the meanings assigned to them in the Agreement.

II. SCOPE, TERM, and CONDITIONS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The number of New Aircraft (as such term is defined in Section II.D. of the Seventh Amendment of the Agreement
dated September 16, 2014 by and between the parties (the "Seventh Amendment")) to be operated by Contractor under the Agreement is hereby amended [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Schedule 1 of the Agreement is hereby deleted and replaced in its entirety by the attached Schedule 1, which is
incorporated herein by reference.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Article VIII.D.1 of the Agreement is hereby deleted in its entirety and replaced with the following:

[\*\*\*]

------

III. MISCELLANEOUS. Except as otherwise amended herein, the Agreement will remain in full force and effect. The
terms of this Amendment are deemed to be incorporated in, and made a part of, the Agreement, and the Agreement and this Amendment shall constitute a single integrated agreement. This Amendment may be executed in any number of counterparts, by
original or facsimile signature, each of which when executed and delivered shall be deemed an original and such counterparts together shall constitute one and the same instrument.

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

------

---

| | | | |
|:---|:---|:---|:---|
| UNITED AIRLINES, INC. | UNITED AIRLINES, INC. | SHUTTLE AMERICA CORPORATION | SHUTTLE AMERICA CORPORATION |
| By: | /s/ Bradford R. Rich | By: | /s/ Bryan K. Bedford |
| Bradford R. Rich | Bradford R. Rich | Bryan K. Bedford | Bryan K. Bedford |
| Senior Vice President, United Express | Senior Vice President, United Express | Chief Executive Officer | Chief Executive Officer |

---

------

**SCHEDULE 1** 

[\*\*\*]

## Exhibit 10.27

**Exhibit 10.27.9** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

**ELEVENTH AMENDMENT TO UNITED EXPRESS AGREEMENT** 

This Eleventh Amendment to the United Express Agreement (the "**Amendment**") is dated as of December 10, 2015 by and between **UNITED AIRLINES, INC.**, a Delaware corporation, with its corporate offices located at 233 S. Wacker Drive, Chicago, Illinois 60606 ("**United**"), and **SHUTTLE AMERICA CORPORATION**, an Indiana corporation, with its corporate offices at 8909 Purdue Road, Suite 300, Indianapolis, IN 46268 ("**Contractor**").

**WHEREAS,** the parties previously entered into that certain United Express Agreement dated as of December 28th, 2006, United Contract # 172884 (together with all prior amendments thereto, the **"Agreement");** and

**WHEREAS,** pursuant to Article XXXI of the Agreement, the parties may modify or amend the Agreement; and

**WHEREAS,** the parties desire to amend the Agreement, [\*\*\*] as set forth in this Amendment;

**NOW THEREFORE,** for good and valuable consideration, the receipt, sufficiency, and adequacy of which are hereby acknowledged, the parties hereby agree as follows:

I. DEFINITIONS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. <u>Defined terms</u>. Capitalized terms used in this Amendment and not otherwise defined in this Amendment
shall have the meanings assigned to them in the Agreement.

II. SCOPE. TERM, and CONDITIONS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Schedule 1 of the Agreement is hereby deleted and replaced in its entirety by the attached Schedule 1, which is
incorporated herein by reference.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Article XVII.A of the Agreement, [\*\*\*] is hereby deleted in its entirety and replaced with the following.

[\*\*\*]

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. The first paragraph of Appendix M of the Agreement is hereby amended as follows:

"United Express requires Contractor to adhere to certain aircraft interior deep clean standards provided by United to Contractor from time to time (the "Deep Clean Scope of Work"). The elements of the Deep Clean Scope of Work shall be performed by Contractor according to a work schedule set forth by United. The Deep Clean Scope of Work is comprised of the minimum required interior deep clean work required of Contractor, itemized by type of aircraft and identifies the items in scope for all interior aircraft cleaning work over and above routine Rest Over Night (RON) cleaning standards, e.g., carpets, seats, cabin interior, lavatories etc. United retains the right to audit Contractor's compliance with United's standards set forth in the Deep Clean Scope of Work and the performance of Contractor or its deep clean service provider, as well as any of the aircraft upon the completion of the Deep Clean Scope of Work. [\*\*\*]. When United is to perform normal RON cleaning on behalf of Contractor, United is responsible for meeting the applicable cleaning standards set forth in this Appendix M."

III. MISCELLANEOUS. Except as otherwise amended herein, the Agreement will remain in full force and effect. The
terms of this Amendment are deemed to be incorporated in, and made a part of, the Agreement, and the Agreement and this Amendment shall constitute a single integrated agreement. This Amendment may be executed in any number of counterparts, by
original or facsimile signature, each of which when executed and delivered shall be deemed an original and such counterparts together shall constitute one and the same instrument.

------

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

---

| | | | |
|:---|:---|:---|:---|
| UNITED AIRLINES, INC. | UNITED AIRLINES, INC. | SHUTTLE AMERICA CORPORATION | SHUTTLE AMERICA CORPORATION |
| By: | /s/ Bradford R. Rich | By: | /s/ Joseph P. Allman |
| Bradford R. Rich | Bradford R. Rich | Joseph P. Allman | Joseph P. Allman |
| Senior Vice President, United Express | Senior Vice President, United Express | Chief Financial Officer | Chief Financial Officer |

---

------

**SCHEDULE 1** 

[\*\*\*]

## Exhibit 10.27

**Exhibit 10.27.10** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

**TWELFTH AMENDMENT TO UNITED EXPRESS AGREEMENT** 

This Twelfth Amendment to the United Express Agreement (the "**Amendment**") is dated as of May 1, 2015 by and between UNITED AIRLINES, INC., a Delaware corporation, with its corporate offices located at 233 S. Wacker Drive, Chicago, Illinois 60606 ("**United**"), and **SHUTTLE AMERICA CORPORATION**, an Indiana corporation, with its corporate offices at 8909 Purdue Road, Suite 300, Indianapolis, IN 46268 ("**Contractor**").

**WHEREAS,** the parties previously entered into that certain United Express Agreement dated as of December 28th, 2006, United Contract # 172884 (together with all prior amendments thereto, the "Agreement"); and

**WHEREAS,** pursuant to Article XXXI of the Agreement, the parties may modify or amend the Agreement; and

**WHEREAS,** the parties desire to further amend the Agreement in accordance with the terms and conditions of this Amendment; and

**NOW THEREFORE,** for good and valuable consideration, the receipt, sufficiency, and adequacy of which are hereby acknowledged, the parties hereby agree as follows:

I. DEFINITIONS

Capitalized terms used in this Amendment and not otherwise defined in this Amendment shall have the meanings assigned to them in the Agreement.

II. SCOPE, TERM, and CONDITIONS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. [\*\*\*]. In addition, [\*\*\*]. For the avoidance of doubt, the [\*\*\*] is hereby [\*\*\*] under the Agreement with
respect to Contractor's United Express Services from and after the date of this Amendment, and Contractor shall [\*\*\*]. [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Appendix L is hereby deleted in its entirety and replaced with the revised Appendix L to the Agreement,
attached hereto and incorporated herein by reference as Attachment 2.

------

III. MISCELLANEOUS. Except as otherwise amended herein, the Agreement will remain in full force and effect. The terms of this Amendment are deemed to be incorporated in, and made a part of, the Agreement, and the Agreement and this Amendment shall constitute a single integrated agreement. This Amendment may be executed in any number of counterparts, by original or facsimile signature, each of which when executed and delivered shall be deemed an original and such counterparts together shall constitute one and the same instrument.

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

---

| | | | |
|:---|:---|:---|:---|
| UNITED AIRLINES, INC. | UNITED AIRLINES, INC. | SHUTTLE AMERICA CORPORATION | SHUTTLE AMERICA CORPORATION |
| By: | /s/ Bradford R. Rich | By: | /s/ Paul Kinstedt |
| Bradford R. Rich | Bradford R. Rich | Paul Kinstedt | Paul Kinstedt |
| Senior Vice President – United Express | Senior Vice President – United Express | Chief Operating Officer | Chief Operating Officer |

---

------

Attachment 1

[\*\*\*]

------

Attachment 2

**<u>APPENDIX L</u>**

**<u>INFLIGHT PRODUCT SALES PROGRAM</u>**

United will market a portfolio of inflight products for purchase on United Express flights which includes [\*\*\*], [\*\*\*], [\*\*\*], food, or other product offerings. Contractor will administer the program related to such in-flight sales (the "Inflight Product Sales Program") as United's representative following all policies and procedures of United. The initial policies and procedures established by United far the sale of products onboard Contractor's flights under the Agreement with United are set forth below. United reserves the right to change the product offerings, policies and procedures associated with the Inflight Product Sales Program at any time and in its sole discretion.

[\*\*\*]

**<u>TECHNOLOGY</u>**

The sale of product onboard Contractor's flights under the Agreement will involve non-cash transactions, United will provide a single hand held device (each such device, an "HHD" and collectively, the '"HHD units") necessary to process credit and debit card transactions for each aircraft in Contractor's fleet operating as United Express. Contractor shall only swipe the customer's credit or debit card into the HHD unit for the purpose of the customer's transaction and shall not otherwise use or record the customer information. The HHD units provided by United shall only be used for United's business purposes.

The HHD units and the information contained therein shall be deemed the confidential and proprietary equipment and information of United and its licensors and shall be subject to the confidentiality terms and conditions set forth in the Agreement for other types of confidential information of United. Contractor shall not, and shall not permit others to, reverse engineer, decompile, disassemble or translate the HHD units, including any firmware or software that is loaded upon the units, or otherwise attempt to view, display or print the source code embedded in the HHD units, or any firmware or software loaded on the HHD units, Contractor shall ensure that any and all HHD units and all other supplies and equipment of United or its licensors that are provided by or on behalf of United in connection with United's Inflight Product Sales Program remain free and clear from any liens attributable to Contractor.

Upon the earlier to occur of (i) the termination of United's Inflight Product Sales Program, (ii) the termination of this Agreement, or (iii) the cessation of the use of the HHD units by Contractor, as determined by United in its sole discretion, Contractor shall cooperate with United or its designated vendor for the collection and return of all HHD units to United at the address designated by United, at Contractor's cost. Contractor shall return the HHD units in as good a condition as possible, except for reasonable wear and tear thereof.

The HHD units will be inventoried and secured by Contractor as a part of the ship's equipment.

------

Contractor will be responsible for the security of the HHD on each aircraft. Contractor agrees to notify United immediately (which in no event shall be longer than [\*\*\*]) whenever any HHD unit has been, or Contractor reasonably believes or suspects that any HHD unit has been, lost, acquired, destroyed, modified, used, disclosed or accessed by any person in an unauthorized manner or for an unauthorized purpose (collectively, "Security Breach"). Contractor further agrees to provide all reasonable assistance requested by United or United's designated representatives, in the furtherance of any correction, remediation, investigation, enforcement or litigation with respect to a Security Breach, including but not limited to, any notification that United may determine appropriate to send to individuals impacted or potentially impacted by a Security Breach.

Lost equipment will be replaced at Contractor's expense. Any equipment that is unaccounted for and for which no transactions have been logged for [\*\*\*] will be considered "lost" and United reserves the right to [\*\*\*] provided for in Article VIII.D.1. of the Agreement.

Any HHD that is damaged beyond reasonable wear and tear will be replaced at Contractor's expense and United reserves the right to [\*\*\*] provided for in Article VIII.D.1. of the Agreement. Any HHD that becomes inoperable lathe absence of damage beyond reasonable wear and tear will be replaced at United's expense, and provided Contractor is not provided any spare HHD units, United agrees that Contractor will not be assessed any penalty (financial or otherwise) during the time it takes for United to provide a replacement HHD.

United, at its own cost, will provide or cause to be provided by a vendor of United's choice the maintenance and battery replacement for the HHD units. Such maintenance and battery replacement will be provided at predetermined intervals designed to maximize HHD and battery useful life, and Contractor will have the right to request maintenance at different times than the predetermined intervals or additional battery replacement at Contractor's cost upon request. In the event Contractor's request for maintenance is related to a faulty or defective HHD unit, Contractor shall [\*\*\*] for such non-routine service call.

United, at its cost, will provide Contractor's designated "trainers" initial "train the trainer" training on the use of the HHD units. Contractor will be required to (i) [\*\*\*] and (ii) [\*\*\*].

**<u>PRODUCT LOSS AND PILFERAGE</u>**

United will establish procedures aimed at limiting product loss. At a minimum, it is required that Contractor's Flight Attendants record opening and closing inventories of each product to be sold onboard, accounting for all sales and complimentary items distributed.

Seals may be required to prevent tampering with product inventories and to deter pilferage. United will monitor all inventories and reserves the right to charge Contractor for identified pilferage. Any discrepancies in inventories, seal numbers recorded, or excessive complimentary activity for any product sold must be reported at the hub for use in pilferage investigations. Connector's failure to provide documentation as requested by United or its representatives will result in Contractor being charged for pilferage as determined by United in its sole discretion and United reserves the right to set off the value of the pilferage, which will be at United's cost of product, by taking a credit in the amount of such pilferage through the Settlement process provided for in Article VIII.D.1. of the Agreement.

------

All product loss and pilferage procedures established by United must be adhered to by Contractor. Contractor shall be liable for replacing all products that are lost, damaged or pilfered while such products are in the care, custody and/or control of Contractor based upon such products actual replacement costs. United reserves the right to set off such costs and/or lost revenues by taking a credit in the amount of such costs and/or lost revenues through the Settlement process provided for in Article VIII.D.1. of the Agreement. In the event of any conflict or discrepancy between Contractor's documentation and United's documentation, United's documentation shall control, unless Contractor produces conclusive evidence that United documentation is incorrect.

United may, at any time during operating hours inspect, monitor, or audit Contractor's administration of the Inflight Product Sales Program described in this Appendix or in other policies and procedures, in order to verify that Contractor is in compliance with United's requirements for the Inflight product Sales program. Contractor will work with United to ensure appropriate controls exist to couture compliance with United's requirements and will ensure corrective actions are in place as necessary.

**<u>LIOUOR, BEER AND WINE PROGRAM</u>**

The Alcoholic Beverage Products offering will be determined by United and provided for in the liquor kit supplied to each aircraft. Except as otherwise agreed by United and Contractor due to the various applicable liquor license laws and regulations, the Alcoholic Beverage Products will be purchased by United, stored and distributed by United and/or United's vendors prior to being placed onboard Contractor's aircraft and sold onboard all United Express flights designated by United.

Once onboard Contractor's aircraft, liquor drawers are considered a part of ship's equipment and will be used for the distribution of United's inflight products.

[\*\*\*]

Contractor shall not serve any Alcoholic Beverage Product(s) on the ground without United's consent. Contractor will obtain and maintain liquor licenses in the states where they board and/or unload any Alcoholic Beverage Product. Unless otherwise agreed by the parties, Contractor will not [\*\*\*].

Virginia Procedures

In Virginia, [\*\*\*].

**<u>FOOD AND OTHER PRODUCTS</u>**

United reserves the right to introduce other products for sale onboard including food offerings. Food offerings may come in a variety of packaging options and will be integrated into the entire portfolio with regards to specifications and procedures established by United.

Provisioning of product offering will follow United's procedures at distribution points.

## Exhibit 10.27

**Exhibit 10.27.11** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

**THIRTEENTH AMENDMENT TO UNITED EXPRESS AGREEMENT** 

This Thirteenth Amendment to the United Express Agreement (the "**Amendment**") is dated as of February 5, 2016 by and between **UNITED AIRLINES, INC.**, a Delaware corporation, with its corporate offices located at 233 South Wacker Drive. Chicago. Illinois 60606 ("**United**"), and **SHUTTLE AMERICA CORP.**, an Indiana corporation, with its corporate offices located at 8909 Purdue Road, Suite 300, Indianapolis, IN 46268 ("**Contractor**").

**WHEREAS,** the parties previously entered into that certain United Express Agreement dated as of December 28<sup>th</sup>, 2006, United Contract # 172884 (as amended previously by the parties hereto the "**Agreement**"); and

**WHEREAS,** pursuant to Article XXXI of the Agreement, the parties may modify or amend the Agreement; and

**WHEREAS,** the parties desire to further amend the Agreement in accordance with the terms and conditions of this Amendment; and

**NOW THEREFORE,** for good and valuable consideration, the receipt, sufficiency, and adequacy of which are hereby acknowledged, the parties hereby agree as follows:

I. DEFINITIONS

Capitalized terms used in this Amendment and not otherwise defined in this Amendment or the Credit Agreement (as defined below) shall have the meanings assigned to them in the Agreement.

II. SCOPE, TERM, and CONDITIONS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Article I of the Agreement is hereby amended by revising the definition of Termination Date, as follows:

<u>"Termination Date"</u> means the date of early termination of this Agreement, as provided in a notice delivered from one party to the others pursuant to [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Article XVI.C of the Agreement is hereby amended to add a new subsection (iii), as follows:

[\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. For the avoidance of doubt, Contractor and United agree that [\*\*\*].

------

III. MISCELLANEOUS. Except as otherwise amended herein, the Agreement will remain in full force and effect. The terms of this Amendment are deemed to be incorporated in, and made a part of the Agreement. This Amendment may be executed in any number of counterparts, by original or facsimile signature, each of which when executed and delivered shall be deemed an original and such counterparts together shall constitute one and the same instrument.

[Signature page follows]

------

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

---

| | | | |
|:---|:---|:---|:---|
| **UNITED AIRLINES, INC.** | **UNITED AIRLINES, INC.** | **SHUTTLE AMERICA CORP.** | **SHUTTLE AMERICA CORP.** |
| By: | /s/ Brad Rich | By: | /s/ Bryan K. Bedford |
| Brad Rich | Brad Rich | Bryan K. Bedford | Bryan K. Bedford |
| Senior Vice President, United Express | Senior Vice President, United Express | Chief Executive Officer | Chief Executive Officer |

---

## Exhibit 10.27

**Exhibit 10.27.12** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

**FOURTEENTH AMENDMENT TO UNITED EXPRESS AGREEMENT** 

This Fourteenth Amendment to the United Express Agreement (the "**Amendment**") is dated as of May 27, 2016 by and between **UNITED AIRLINES, INC.**, a Delaware corporation, with its corporate offices located at 233 S. Wacker Drive, Chicago, IL 60606 ("**United**"), **REPUBLIC AIRLINE INC.**, an Indiana corporation, with its corporate offices at 8909 Purdue Road, Suite 300, Indianapolis, IN 46268, and **SHUTTLE AMERICA CORPORATION**, an Indiana corporation, with its corporate offices at 8909 Purdue Road, Suite 300, Indianapolis, IN 46268 ("**Contractor**").

**WHEREAS**, the parties previously entered into that certain United Express Agreement dated as of December 28th, 2006, United Contract # 172884 (together with all prior amendments thereto, the "**Agreement**") (the parties acknowledge that amendments 2, 3 and 9 are intentionally omitted); and

**WHEREAS**, pursuant to Article XXXI of the Agreement, the parties may modify or amend the Agreement; and

**WHEREAS,** the parties desire to further amend the Agreement in accordance with the terms and conditions of this Amendment; and

**NOW THEREFORE**, for good and valuable consideration, the receipt, sufficiency, and adequacy of which are hereby acknowledged, the parties hereby agree as follows:

I. DEFINITIONS

Capitalized terms used in this Amendment and not otherwise defined in this Amendment shall have the meanings assigned to them in the Agreement or other written agreements by and between the parties as noted.

II. SCOPE, TERM, and CONDITIONS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Article I of the Agreement is hereby amended by adding new definitions, as follows: [\*\*\*].

"<u>Existing ERJ-170 Aircraft</u>" means [\*\*\*] ERJ-170 aircraft operated pursuant to the Agreement as of immediately prior to the date of this Amendment.

"<u>GAAP</u>" means generally accepted accounting principles in the United States of America, consistently applied.

[\*\*\*]

------

[\*\*\*]

"<u>Pre-Owned ERJ-170 Aircraft</u>" means [\*\*\*] ERJ-170 aircraft.

[\*\*\*]

Notwithstanding anything to the contrary in this Agreement (including in the Seventh Amendment (as such term is defined in the Fourteenth Amendment)), "Republic" shall mean Republic Airways Holdings Inc. and "Republic Airline" shall mean Republic Airline Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Article IV of the Agreement is hereby amended [\*\*\*] as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. [\*\*\*]

III. [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. [\*\*\*]

IV. MISCELLANEOUS.

Except as otherwise amended herein, the Agreement will remain in full force and effect. The terms of this Amendment are deemed to be incorporated in, and made a part of, the Agreement, and the Agreement and this Amendment shall constitute a single integrated agreement. This Amendment supersedes that certain Letter of Intent Dated February 22, 2016 by and among United, on the one hand, and Contractor, its Parent and affiliates, on the other hand (the "**February 2016 LOI**"), except that the Binding Provisions (as such term is defined in the February 2016 LOI) included in the February 2016 LOI shall continue to apply in accordance with their terms. This Amendment may be executed in any number of counterparts, by original or facsimile signature, each of which when executed and delivered shall be deemed an original and such counterparts together shall constitute one and the same instrument.

[Signature page follows]

------

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

---

| | | | |
|:---|:---|:---|:---|
| UNITED AIRLINES, INC. | UNITED AIRLINES, INC. | SHUTTLE AMERICA CORPORATION | SHUTTLE AMERICA CORPORATION |
| By: | /s/ Gerald Laderman | By: | /s/ Joseph P. Allman |
| Name: Gerald Laderman  | Name: Gerald Laderman  | Name: Joseph P. Allman  | Name: Joseph P. Allman  |
| Title: Senior Vice President — Finance and acting Chief Financial Officer | Title: Senior Vice President — Finance and acting Chief Financial Officer | Title: Senior Vice President, CFO | Title: Senior Vice President, CFO |
|  |  | Republic Airways Holdings Inc. consents to the foregoing Amendment and agrees that its guaranty of the Agreement shall apply to the Agreement as amended by this Amendment. Republic Airways Holdings Inc. also reconfirms its guaranty of the Operative Agreements (as defined in the Credit Agreement). | Republic Airways Holdings Inc. consents to the foregoing Amendment and agrees that its guaranty of the Agreement shall apply to the Agreement as amended by this Amendment. Republic Airways Holdings Inc. also reconfirms its guaranty of the Operative Agreements (as defined in the Credit Agreement). |
|  |  | REPUBLIC AIRWAYS HOLDINGS INC. | REPUBLIC AIRWAYS HOLDINGS INC. |
|  |  | By: | /s/ Joseph P. Allman |
|  |  | Name: Joseph P. Allman  | Name: Joseph P. Allman  |
|  |  | Title: Senior Vice President, CFO | Title: Senior Vice President, CFO |

---

---

| | |
|:---|:---|
| REPUBLIC AIRLINES INC. | REPUBLIC AIRLINES INC. |
| By: | /s/ Ethan J. Blank |
| Name: Ethan J. Blank | Name: Ethan J. Blank |
| Title: VP, General Counsel | Title: VP, General Counsel |

---

------

Attachment 1

[\*\*\*]

------

Attachment 2

[\*\*\*]

------

Attachment 3

**<u>APPENDIX N</u>**

**<u>UNITED WI-FI</u>**

**1.**  **<u>General Installation</u>** 

United has contracted with Gogo, Inc. ("Gogo") to provide air-to-ground internet service inflight ("United's Wi-Fi Agreement"). Pursuant to United's Wi-Fi Agreement, Gogo or one of its subcontractors will install the Gogo Wi-Fi and inflight entertainment equipment, including associated software ("Wi-Fi Equipment") on the ERJ 170 and ERJ175 Aircraft. For purposes of this Amendment, Wi-Fi and inflight entertainment services will be defined as "Wi-Fi Services". As of the date of this Amendment, Gogo has subcontracted with STS Line Maintenance ("STS") to perform the actual installation of the Wi-Fi Equipment. Contractor and United agree that the Wi-Fi Equipment will be installed on selected Contractor aircraft that provide United Express regional airline services as such aircraft are determined by United from time to time; such initially selected aircraft are defined by tail number and identified in Exhibit A to this Attachment 3 and may be referred to throughout this Amendment as "Equipped Aircraft". United has purchased, or will purchase, all Wi-Fi Equipment installed. Contractor agrees that United shall remain the sole owner of the Wi-Fi Equipment installed on Contractor aircraft and Contractor agrees not to assert any claim of ownership or a lien on such Wi-Fi Equipment. United will purchase all Wi-Fi Equipment from Gogo. Contractor agrees to use its commercially reasonable efforts to make its selected aircraft available to Gogo and/or STS (or other installation vendor as applicable) to enable the installation of the Wi-Fi Equipment to occur as expeditiously as possible without interfering with Contractor's operations (and United agrees to reasonably cooperate with Contractor in this regard with respect to scheduling of the aircraft to facilitate such installation).

**2.**  **<u>Revenues from the Sale of Wi-Fi service</u>** 

**3.**  **<u>Purchase Order Details</u>** 

[\*\*\*]

------

**4.**  **<u>Compliance with Laws and Certification</u>** 

Contractor will comply with all laws and regulations applicable to Contractor in performing Contractor's obligations under this Agreement and will cooperate, to the extent reasonably necessary, with Gogo, at no cost or charge to Contractor or United, for Gogo and Gogo subcontractors to comply with all laws and regulations applicable to Gogo and its subcontractors. Contractor will also provide Gogo or its subcontractors, at no cost or charge to Gogo or United, with access at reasonable times and on reasonable prior notice to the Equipped Aircraft and provide such assistance as Gogo reasonably requests to obtain and maintain any legally required certification of the Wi-Fi Equipment and Gogo Services at all times during the Term.

**5.**  **<u>Warranty Conditions</u>** 

Contractor shall notify United and Gogo as soon as practicable when it becomes aware of any failure in performance, malfunction, defect, loss of or damage to the Wi-Fi Equipment with reasonable details (it being acknowledged that United may be precluded from claiming a breach of the warranty included in the United Wi-Fi Agreement without such information). Contractor shall not take any action that would (i) cause a failure or defect of the Wi-Fi Equipment by combining it with equipment, software, or services not supplied, authorized or specified by Gogo, (ii) cause Wi-Fi Equipment to be subjected to any misuse, neglect, accident or improper maintenance by Contractor or subcontractors, or (iii) cause an infringement or misappropriation of a third party's intellectual property by combining the Wi-Fi Equipment with any content, materials, equipment or software provided by or on behalf of Contractor that is not authorized or approved by Gogo. Contractor shall not itself, nor knowingly permit any other party to, modify or tamper with the Wi-Fi Equipment, other than Gogo or its subcontractors.

**6.**  **<u>Defective Equipment and Software</u>** 

In the event of a defect in the Wi-Fi Equipment covered by the warranty, Contractor agrees to use its commercially reasonable efforts to ship such Wi-Fi Equipment to Gogo within [\*\*\*] if requested by Gogo to do so (and the reasonable shipping costs shall be reimbursed to Contractor by United).

**7.**  **<u>Maintenance and Support</u>** 

For a period of time under the United Wi-Fi Agreement, Gogo or its subcontractor will provide touch labor to correct any malfunctioning or defective Wi-Fi Equipment, including any associated software. Following the expiration of this initial warranty period, United may either (i) continue to have Gogo or its subcontractor provide touch labor or (ii) elect to provide touch labor for maintenance of Wi-Fi Equipment on Equipped Aircraft. Gogo may dispatch Gogo personnel or its subcontractors to the Contractor's designated Wi-Fi Equipment maintenance location to troubleshoot maintenance issues with such Wi-Fi Equipment; the cost of such maintenance services shall be mutually agreed upon between United and Gogo and will be at United expense.

------

**8.**  **<u>Contractor Responsibilities For Maintenance Support</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. After installation occurs, Contractor will as soon as practicable notify Gogo when it becomes aware that Wi-Fi Equipment is malfunctioning, inoperative or defective. Contractor shall make such Equipped Aircraft available for maintenance services as required, in a timely manner as operationally practical, and shall use
its commercially reasonable efforts to make such Equipped Aircraft available for service within [\*\*\*] of notifying Gogo (it being acknowledged that maintenance touch labor by Gogo or its subcontractors will require a minimum of [\*\*\*] of maintenance
touch time in most cases to avoid [\*\*\*]).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Contractor shall use its commercially reasonable efforts to make the Equipped Aircraft available to Gogo from
time to time at Contractor's facilities for purposes of refreshing the onboard streaming video content.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Contractor shall provide to Gogo, or its subcontractors, electronic access to all specific and customized
technical manuals and documents in order to perform installation, maintenance and repairs including but not limited to its Aircraft Maintenance Manual (AMM), Illustrated Parts Catalog (IPC) and Wiring Diagram Manual (WDM) and any other documents
requested which are essential for Gogo or its designated subcontractor to provide maintenance and repair services on the Wi-Fi Equipment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Contractor shall use commercially reasonable efforts to provide day-to-day communication to United and Gogo as to any non-performance of Gogo Services and the system (e.g., the system is inoperative, the system is restored) as
necessary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. Contractor shall provide Gogo with the applicable manual reference and procedures for any Service Bulletins
relevant to the Gogo Services outlining the appropriate handling procedures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. Contractor will be responsible for ensuring that all applicable Contractor requirements for repair and
maintenance stations (such as any FAA required certifications) per Contractor's maintenance manual are met.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. Contractor shall complete all required work for Service Bulletins and associated engineering authorizations
(EA) applicable to Contractor related to the Wi-Fi Equipment [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H. Contractor shall store spare parts to repair and maintain the Wi-Fi Equipment in a secure, environmentally stable location. Contractor shall maintain adequate levels of insurance against loss or damage while such spare parts are in Contractor's custody and control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. Contractor will provide a program contact and such other human resources with respect to the Wi-Fi Services, including resources onsite at certain locations at certain times, as may reasonably be required to work cooperatively with Gogo and its subcontractors in support of the program plan and schedule.

**9.**  **<u>Contractor Responsibilities- Other</u>** 

Contractor's inflight crews shall not knowingly interfere with the operation of the Wi-Fi Equipment [\*\*\*].

------

**10.**  **<u>Release of Leased Aircraft</u>** 

[\*\*\*]

**11.**  **<u>Confidentiality</u>** 

[\*\*\*]

**12.**  **<u>Liability/Risk of Loss</u>** 

Contractor shall as soon as practicable notify United and Gogo of any damage (except normal wear and tear), destruction, loss (including after any event of default under a Contractor financing agreement that results in the loss of such Wi-Fi Equipment, including as a result of the foreclosure of any lien or the exercise of remedies by any financing party), theft, or governmental taking of any Wi-Fi Equipment or spare parts in Contractor's custody upon Contractor's becoming aware thereof and, whether or not covered by Contractor's insurance ("**Event of Loss**") if an Event of Loss occurs, [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. As between United and Contractor, United agrees to be responsible to Contractor for any damage to a Contractor
aircraft that might occur during the installation or maintenance of the Wi-Fi Equipment, in each case caused by or resulting from [\*\*\*]. If any such damage occurs during such installation or maintenance, upon
receipt from Contractor of a claim for the repair of any such damage to a Contractor aircraft or for reimbursement for the cost for repairing any such damage, together with reasonably detailed substantiating details for the amount of any such claim,
United agrees to cause such damage to be repaired or to reimburse Contractor for the cost of repairing such damage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Without limiting any of Contractor's obligations contained herein, Contractor shall have risk of loss for
any Wi-Fi Equipment and related equipment, spares and/or supplies while stored at Contractor's facilities. In addition, Contractor shall be liable to United for any and all damage or loss of Wi-Fi Equipment installed on Contractor aircraft caused by or resulting from Contractor's [\*\*\*].

**13.**  **<u>Installation Schedule and Support for Revenue Launch</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. <u>Fleet Availability.</u> Contractor shall make its aircraft available to install the Wi-Fi Equipment, and for testing and certification of the Wi-Fi Equipment in accordance with the schedule set forth in Exhibit B to this Attachment 3. If Gogo requests an
Equipped Aircraft inspection, then Gogo will provide Contractor with at least [\*\*\*] notice prior to requesting Contractor to perform such aircraft inspection. If at least [\*\*\*] prior notice is not practical under the circumstances, Contractor will
use commercially reasonable efforts to conduct such inspection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. <u>Contractor Resources.</u> Contractor will (i) make engineering resources reasonably available to Gogo
on an agreed-upon schedule to assist with technical aircraft and cabin surveys, and (ii) provide information on existing aircraft systems and design-for-maintenance knowledge.

------

**14.**  **<u>Marketing Plan</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. <u>Initiatives.</u> Contractor will use its commercially reasonable efforts to inform and direct their
employees to keep the Wi-Fi Equipment turned on at all times. Contractor's employees will: (a) make timely announcements to passengers on Equipped Aircraft regarding the availability of Wi-Fi Services for customers to use; and (b) keep the seatbacks on the Equipped Aircraft stocked with seatback cards containing information about Wi- Fi Services at all
times. United shall supply Contractor with a sufficient amount of such seatback cards so that Contractor can comply with this obligation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. <u>Marketing and Publicity.</u> Contractor will not use Gogo's or United's logotypes, trade names,
trademarks, service marks, or other proprietary marks or words, in any public statements, press releases, advertising or promotional materials with respect to the Wi-Fi Services or this Amendment without the
respective party's consent, except where a specific use has been approved in advance and in writing (e-mail will constitute a writing for this purpose).

**15.**  **<u>Wi-Fi Installation Costs</u>** 

United agrees to timely purchase and pay for all materials, consumables, equipment, shipping and reasonable labor costs for the installation project, including all engineering and certification services, necessary or appropriate to complete the installation of the Wi-Fi Equipment as quickly as possible. United will reimburse Contractor for certain reasonable out-of-pocket costs incurred by Contractor related to the items in this <u>Section</u> <u>15;</u> *provided*, [\*\*\*]

**16.**  **<u>Removal of Wi-Fi Equipment</u>** 

At United's cost and expense, United may remove the Wi-Fi Equipment at any time [\*\*\*], and upon any such removal, United shall as soon as practicable repair any damage to the Contractor aircraft caused by such removal, [\*\*\*], except to the extent any such cost or expense is directly and proximately caused by or is resulting from the negligence or willful misconduct of Contractor or its agents, which shall be borne by Contractor.

**17.**  **<u>Ownership of Wi-Fi Equipment and Related Covenants.</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. United will own, at all times, the Wi-Fi Equipment; *provided*,
that, with respect to any Aircraft Used in United Express Services leased by Contractor from third parties or owned by Contractor, unless otherwise agreed between United and Contractor at such time, at the termination of the lease United may elect
to remove such equipment upon notice from Contractor at United's cost and expense and will repair any damage caused by such removal, except to the extent any such cost or expense is directly and proximately caused by or is resulting from any
negligence or willful misconduct of Contractor or its agents (excluding United, Gogo and their respective agents), which shall be borne by Contractor.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Wi-Fi Equipment will be free from all liens or other encumbrances

the Wi-Fi Equipment at the time such Wi-Fi Equipment is added to the aircraft.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. United agrees, on United's behalf and on behalf of Gogo, its subcontractors, or any other party claiming
an interest in the Wi-Fi Equipment, that none of such parties shall acquire or claim, as against the owners of the Contractor aircraft or any third party providing financing with respect to the Contractor
aircraft, any right, title or interest in the Contractor aircraft or any portion thereof (other than the Wi-Fi Equipment and related parts and supplies) by reason of the installation of such Wi-Fi Equipment on Contractor aircraft.

------

Exhibit A to Attachment 3

[\*\*\*]

------

Exhibit B to Attachment 3

[\*\*\*]

------

Attachment 4

[\*\*\*]

------

Attachment 5

[\*\*\*]

------

Attachment 6

[\*\*\*]

## Exhibit 10.27

**Exhibit 10.27.13** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

**FIFTEENTH AMENDMENT TO UNITED EXPRESS AGREEMENT** 

This Fifteenth Amendment to the United Express Agreement (the "**Amendment**") is dated as of November 15, 2016 by and among **UNITED AIRLINES, INC.**, a Delaware corporation, with its corporate offices located at 233 S. Wacker Drive, Chicago, IL 60606 ("**United**"), **REPUBLIC AIRLINE INC.**, an Indiana corporation, with its corporate offices at 8909 Purdue Road, Suite 300, Indianapolis, IN 46268 ("**Republic Airline**"), and **SHUTTLE AMERICA CORPORATION**, an Indiana corporation, with its corporate offices at 8909 Purdue Road, Suite 300, Indianapolis, IN 46268 ("**Contractor**").

**WHEREAS**, the parties previously entered into that certain United Express Agreement dated as of December 28th, 2006, United Contract # 172884 (together with all prior amendments thereto, the "**Agreement**") (the parties acknowledge that amendments 2, 3 and 9 are intentionally omitted); and

**WHEREAS**, pursuant to Article XXXI of the Agreement, the parties may modify or amend the Agreement; and

**WHEREAS,** the parties desire to further amend the Agreement in accordance with the terms and conditions of this Amendment; and

**WHEREAS**, as of immediately prior to the date hereof, it was contemplated that [\*\*\*] under the Agreement, it being understood that [\*\*\*];

**WHEREAS**, the parties desire to amend the Agreement [\*\*\*]; and

**NOW THEREFORE**, for good and valuable consideration, the receipt, sufficiency, and adequacy of which are hereby acknowledged, the parties hereby agree as follows:

I. DEFINITIONS

Capitalized terms used in this Amendment and not otherwise defined in this Amendment shall have the meanings assigned to them in the Agreement or other written agreements by and between the parties as noted.

II. SCOPE, TERM, and CONDITIONS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Schedule 1 of the Agreement is hereby [\*\*\*].

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Appendix E of the Agreement is hereby [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. The Agreement is hereby amended to add the following [\*\*\*]:

[\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. The Agreement is hereby amended to add the following [\*\*\*]:

[\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. Contractor and Republic Airline acknowledge and agree [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H. The Agreement is hereby amended to add the following [\*\*\*]:

[\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. The Agreement is hereby amended to add the following [\*\*\*]:

[\*\*\*]

III. [\*\*\*].

IV. MISCELLANEOUS.

Except as otherwise amended herein, the Agreement will remain in full force and effect. The terms of this Amendment are deemed to be incorporated in, and made a part of, the Agreement, and the Agreement and this Amendment shall constitute a single integrated agreement. This Amendment may be executed in any number of counterparts, by original or facsimile signature, each of which when executed and delivered shall be deemed an original and such counterparts together shall constitute one and the same instrument.

[Signature page follows]

------

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

---

| | | | |
|:---|:---|:---|:---|
| UNITED AIRLINES, INC. | UNITED AIRLINES, INC. | SHUTTLE AMERICA CORPORATION | SHUTTLE AMERICA CORPORATION |
| By: | /s/ Gerald Laderman | By: | /s/ Ethan J. Blank  |
| Name: Gerald Laderman | Name: Gerald Laderman | Name: Ethan J. Blank  | Name: Ethan J. Blank  |
| Title: Senior Vice President – Finance, Procurement & Treasurer | Title: Senior Vice President – Finance, Procurement & Treasurer | Title: VP, General Counsel | Title: VP, General Counsel |
|  |  | Republic Airways Holdings Inc. consents to the foregoing Amendment and agrees that its guaranty of the Agreement shall apply to the Agreement (as amended by this Amendment) and all New Aircraft Leases. Republic Airways Holdings Inc. also reconfirms its guaranty of the Operative Agreements (as defined in the Credit Agreement). | Republic Airways Holdings Inc. consents to the foregoing Amendment and agrees that its guaranty of the Agreement shall apply to the Agreement (as amended by this Amendment) and all New Aircraft Leases. Republic Airways Holdings Inc. also reconfirms its guaranty of the Operative Agreements (as defined in the Credit Agreement). |
|  |  | REPUBLIC AIRWAYS HOLDINGS INC. | REPUBLIC AIRWAYS HOLDINGS INC. |
|  |  | By: | /s/ Bryan K. Bedford |
|  |  | Name: Bryan K. Bedford  | Name: Bryan K. Bedford  |
|  |  | Title: President, Chairman & CEO | Title: President, Chairman & CEO |
| REPUBLIC AIRLINE INC.  | REPUBLIC AIRLINE INC.  |  |  |
| By: | /s/ Ethan J. Blank  |  |  |
| Name: Ethan J. Blank  | Name: Ethan J. Blank  |  |  |
| Title: VP, General Counsel | Title: VP, General Counsel |  |  |

---

------

Attachment 1

[\*\*\*]

------

Attachment 2

[\*\*\*]

## Exhibit 10.27

**Exhibit 10.27.14** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

**SIXTEENTH AMENDMENT TO UNITED EXPRESS AGREEMENT** 

This Sixteenth Amendment to the United Express Agreement (the "**Amendment**") is dated as of August<u> </u>, 2020 (the "**Sixteenth Amendment Effective Date**"), by and among **UNITED AIRLINES, INC.**, a Delaware corporation, with its corporate offices located at 233 S. Wacker Drive, Chicago, IL 60606 ("**United**"), **REPUBLIC AIRWAYS INC.** (f/k/a REPUBLIC AIRLINE INC**.)**, an Indiana corporation, with its corporate offices at 8909 Purdue Road, Suite 300, Indianapolis, IN 46268 ("**Republic Airways**"), and **SHUTTLE AMERICA CORPORATION**, formerly an Indiana corporation which merged into Republic Airways Inc. effective January 31, 2017("**Contractor**" and, together with United and Republic Airways, the "**parties**").

**WHEREAS**, the parties previously entered into that certain United Express Agreement dated as of December 28th, 2006, United Contract # 172884 (together with all prior amendments thereto, the "**Agreement**") (the parties acknowledge that amendments 2, 3 and 9 are intentionally omitted);

**WHEREAS**, pursuant to Article XXXI of the Agreement, the parties may modify or amend the Agreement;

**WHEREAS,** the parties desire to further amend the Agreement in accordance with the terms and conditions of this Amendment; and

**NOW THEREFORE**, for good and valuable consideration, the receipt, sufficiency, and adequacy of which are hereby acknowledged, the parties hereby agree as follows:

I. DEFINITIONS

Capitalized terms used in this Amendment and not otherwise defined in this Amendment shall have the meanings assigned to them in the Agreement or other written agreements by and between the parties as noted.

II. SCOPE, TERM, and CONDITIONS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Effective as of April 1, 2020 (the "**Amendment Effective Date**") through and including
[\*\*\*] (the "**Deferral Period** "), and subject to Section II.D below in this Amendment, Appendix E of the Agreement is hereby replaced in its entirety by the Appendix E attached as Attachment 1 to this Amendment. For the avoidance of
doubt, [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. In respect of the period commencing [\*\*\*], the Minimum Average Scheduled Block Hours per day in the table set
forth on Appendix K of the Agreement shall be [\*\*\*].

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. In respect of the period commencing [\*\*\*], the Minimum Average Scheduled Block Hours per day in the table set
forth on Appendix K of the Agreement shall be [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. (1) The parties hereby agree to [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) From and after [\*\*\*], and for so long as the [\*\*\*] contemplated by [\*\*\*], United's obligation pursuant to
[\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. If, prior to April 1, 2021, [\*\*\*]

[\*\*\*]

III. MISCELLANEOUS.

Except as otherwise amended herein, the Agreement will remain in full force and effect. The terms of this Amendment are deemed to be incorporated in, and made a part of, the Agreement, and the Agreement and this Amendment shall constitute a single integrated agreement. This Amendment may be executed in any number of counterparts, by original or facsimile signature, each of which when executed and delivered shall be deemed an original and such counterparts together shall constitute one and the same instrument.

[Signature page follows]

------

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

---

| | | | |
|:---|:---|:---|:---|
| UNITED AIRLINES, INC. | UNITED AIRLINES, INC. | Republic Airways Holdings Inc. consents to the foregoing Amendment and agrees that its guaranty of the Agreement shall apply to the Agreement (as amended by this Amendment) and all New Aircraft Leases. Republic Airways Holdings Inc. also reconfirms its guaranty of the Operative Agreements (as defined in the Credit Agreement). | Republic Airways Holdings Inc. consents to the foregoing Amendment and agrees that its guaranty of the Agreement shall apply to the Agreement (as amended by this Amendment) and all New Aircraft Leases. Republic Airways Holdings Inc. also reconfirms its guaranty of the Operative Agreements (as defined in the Credit Agreement). |
| By: | /s/ Sarah Murphy | Republic Airways Holdings Inc. consents to the foregoing Amendment and agrees that its guaranty of the Agreement shall apply to the Agreement (as amended by this Amendment) and all New Aircraft Leases. Republic Airways Holdings Inc. also reconfirms its guaranty of the Operative Agreements (as defined in the Credit Agreement). | Republic Airways Holdings Inc. consents to the foregoing Amendment and agrees that its guaranty of the Agreement shall apply to the Agreement (as amended by this Amendment) and all New Aircraft Leases. Republic Airways Holdings Inc. also reconfirms its guaranty of the Operative Agreements (as defined in the Credit Agreement). |
| Name: Sarah Murphy | Name: Sarah Murphy | Republic Airways Holdings Inc. consents to the foregoing Amendment and agrees that its guaranty of the Agreement shall apply to the Agreement (as amended by this Amendment) and all New Aircraft Leases. Republic Airways Holdings Inc. also reconfirms its guaranty of the Operative Agreements (as defined in the Credit Agreement). | Republic Airways Holdings Inc. consents to the foregoing Amendment and agrees that its guaranty of the Agreement shall apply to the Agreement (as amended by this Amendment) and all New Aircraft Leases. Republic Airways Holdings Inc. also reconfirms its guaranty of the Operative Agreements (as defined in the Credit Agreement). |
| Title: SVP-UAX | Title: SVP-UAX | Republic Airways Holdings Inc. consents to the foregoing Amendment and agrees that its guaranty of the Agreement shall apply to the Agreement (as amended by this Amendment) and all New Aircraft Leases. Republic Airways Holdings Inc. also reconfirms its guaranty of the Operative Agreements (as defined in the Credit Agreement). | Republic Airways Holdings Inc. consents to the foregoing Amendment and agrees that its guaranty of the Agreement shall apply to the Agreement (as amended by this Amendment) and all New Aircraft Leases. Republic Airways Holdings Inc. also reconfirms its guaranty of the Operative Agreements (as defined in the Credit Agreement). |
|  |  | REPUBLIC AIRWAYS HOLDINGS INC. | REPUBLIC AIRWAYS HOLDINGS INC. |
|  |  | By: | /s/ Joseph P. Allman |
|  |  | Name: Joseph P. Allman | Name: Joseph P. Allman |
|  |  | Title: SVP and CFO | Title: SVP and CFO |

---

---

| | |
|:---|:---|
| REPUBLIC AIRWAYS INC. | REPUBLIC AIRWAYS INC. |
| By: | /s/ Joseph P. Allman |
| Name: Joseph P. Allman | Name: Joseph P. Allman |
| Title: SVP and CFO | Title: SVP and CFO |

---

------

Attachment 1

[\*\*\*]

## Exhibit 10.27

**Exhibit 10.27.15** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

**SEVENTEENTH AMENDMENT TO UNITED EXPRESS AGREEMENT** 

This Seventeenth Amendment to the United Express Agreement (the "**Amendment**") is dated as of December 30th, 2020 (the "**Amendment Effective Date**"), by and among **UNITED AIRLINES, INC.,** a Delaware corporation, with its corporate offices located at 233 S. Wacker Drive, Chicago, IL 60606 ("**United**"), **REPUBLIC AIRWAYS INC.** (f/k/a REPUBLIC AIRLINE INC.), an Indiana corporation, with its corporate offices at 8909 Purdue Road, Suite 300, Indianapolis, IN 46268 ("**Republic Airways**"), and **SHUTTLE AMERICA CORPORATION,** formerly an Indiana corporation which merged into Republic Airways Inc. effective January 31, 2017 ("**Contractor**" and, together with United and Republic Airways, the "**parties**").

**WHEREAS,** the parties previously entered into that certain United Express Agreement dated as of December 28th, 2006, United Contract # 172884 (together with all prior amendments thereto, the "**Agreement**") (the parties acknowledge that amendments 2, 3 and 9 are intentionally omitted);

**WHEREAS,** pursuant to Article XXXI of the Agreement, the parties may modify or amend the Agreement;

**WHEREAS,** the parties desire to further amend the Agreement in accordance with the terms and conditions of this Amendment; and

**NOW THEREFORE,** for good and valuable consideration, the receipt, sufficiency, and adequacy of which are hereby acknowledged, the parties hereby agree as follows:

I. DEFINITIONS

Capitalized terms used in this Amendment and not otherwise defined in this Amendment shall have the meanings assigned to them in the Agreement or other written agreements by and between the parties as noted.

II. SCOPE, TERM, and CONDITIONS

A. Effective as of October 1 **,** 2020, Paragraph 7 of Section VIII.C (Early Brake Release) of the Agreement
shall be amended and restated in its entirety as follows:

"7. **Early Brake Release (EBR)**

United shall gather all Aircraft Communication and Reporting System (ACARS) data for each individual ERJ-170 aircraft and ERJ-175 aircraft operated by Contractor for United under the Agreement that has had its Airline Modifiable Interface (AMI) modified to

------

capture such information relating to the measurement of the time periods elapsed (any such elapsed period, an "**EBR Period**") between aircraft brake release and aircraft wheel movement for departures of all scheduled flights for ERJ-170 aircraft and ERJ-175 aircraft as measured by ACARS included on all in-service ERJ-170 aircraft and ERJ-175 aircraft. Contractor shall use commercially reasonable efforts to obtain as expeditiously as practicable a modification to the AMI for each individual ERJ-170 aircraft and ERJ-175 aircraft.

[\*\*\*]"

B. Effective as of [\*\*\*], [\*\*\*] shall be deleted in its entirety.

C. Effective as of [\*\*\*], [\*\*\*] shall be deleted in its entirety.

D. In the event Contractor [\*\*\*].

E. Solely with respect to the period commencing [\*\*\*]

F. [\*\*\*]

III. MISCELLANEOUS.

Except as otherwise amended herein, the Agreement will remain in full force and effect. The terms of this Amendment are deemed to be incorporated in, and made a part of, the Agreement, and the Agreement and this Amendment shall constitute a single integrated agreement. This Amendment may be executed in any number of counterparts, by original or facsimile signature, each of which when executed and delivered shall be deemed an original and such counterparts together shall constitute one and the same instrument.

[Signature page follows]

------

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

---

| | | | |
|:---|:---|:---|:---|
| UNITED AIRLINES, INC. | UNITED AIRLINES, INC. | Republic Airways Holdings Inc. consents to the foregoing Amendment and agrees that its guaranty of the Agreement shall apply to the Agreement (as amended by this Amendment) and all New Aircraft Leases. Republic Airways Holdings Inc. also reconfirms its guaranty of the Operative Agreements (as defined in the Credit Agreement). | Republic Airways Holdings Inc. consents to the foregoing Amendment and agrees that its guaranty of the Agreement shall apply to the Agreement (as amended by this Amendment) and all New Aircraft Leases. Republic Airways Holdings Inc. also reconfirms its guaranty of the Operative Agreements (as defined in the Credit Agreement). |
| By: | /s/ Gerry Laderman | Republic Airways Holdings Inc. consents to the foregoing Amendment and agrees that its guaranty of the Agreement shall apply to the Agreement (as amended by this Amendment) and all New Aircraft Leases. Republic Airways Holdings Inc. also reconfirms its guaranty of the Operative Agreements (as defined in the Credit Agreement). | Republic Airways Holdings Inc. consents to the foregoing Amendment and agrees that its guaranty of the Agreement shall apply to the Agreement (as amended by this Amendment) and all New Aircraft Leases. Republic Airways Holdings Inc. also reconfirms its guaranty of the Operative Agreements (as defined in the Credit Agreement). |
|  Name: Gerry Laderman | Name: Gerry Laderman | Republic Airways Holdings Inc. consents to the foregoing Amendment and agrees that its guaranty of the Agreement shall apply to the Agreement (as amended by this Amendment) and all New Aircraft Leases. Republic Airways Holdings Inc. also reconfirms its guaranty of the Operative Agreements (as defined in the Credit Agreement). | Republic Airways Holdings Inc. consents to the foregoing Amendment and agrees that its guaranty of the Agreement shall apply to the Agreement (as amended by this Amendment) and all New Aircraft Leases. Republic Airways Holdings Inc. also reconfirms its guaranty of the Operative Agreements (as defined in the Credit Agreement). |
|  Title: EVP and Chief Financial Officer | Title: EVP and Chief Financial Officer | Republic Airways Holdings Inc. consents to the foregoing Amendment and agrees that its guaranty of the Agreement shall apply to the Agreement (as amended by this Amendment) and all New Aircraft Leases. Republic Airways Holdings Inc. also reconfirms its guaranty of the Operative Agreements (as defined in the Credit Agreement). | Republic Airways Holdings Inc. consents to the foregoing Amendment and agrees that its guaranty of the Agreement shall apply to the Agreement (as amended by this Amendment) and all New Aircraft Leases. Republic Airways Holdings Inc. also reconfirms its guaranty of the Operative Agreements (as defined in the Credit Agreement). |
|  |  | REPUBLIC AIRWAYS HOLDINGS INC. | REPUBLIC AIRWAYS HOLDINGS INC. |
|  |  | By: | /s/ Joseph P. Allman |
|  |  | Name: Joseph P. Allman | Name: Joseph P. Allman |
|  |  | Title: SVP and CFO | Title: SVP and CFO |

---

---

| | |
|:---|:---|
|  REPUBLIC AIRWAYS INC. | REPUBLIC AIRWAYS INC. |
| By: | /s/ Joseph P. Allman |
|  Name: Joseph P. Allman | Name: Joseph P. Allman |
|  Title: SVP and CFO | Title: SVP and CFO |

---

## Exhibit 10.27

**Exhibit 10.27.16** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

**EIGHTEENTH AMENDMENT TO UNITED EXPRESS AGREEMENT** 

This Eighteenth Amendment to the United Express Agreement (this "**Amendment**") is dated as of September <u>29</u>, 2021 (the "**Eighteenth Amendment Effective Date**"), by and among **UNITED AIRLINES, INC.**, a Delaware corporation, with its corporate offices located at 233 S. Wacker Drive, Chicago, IL 60606 ("**United**"), **REPUBLIC AIRWAYS INC.** (f/k/a REPUBLIC AIRLINE INC**.)**, an Indiana corporation, with its corporate offices at 8909 Purdue Road, Suite 300, Indianapolis, IN 46268 ("**Republic Airways**"), and **SHUTTLE AMERICA CORPORATION**, formerly an Indiana corporation which merged into Republic Airways Inc. effective January 31, 2017 ("**Contractor**" and, together with United and Republic Airways, the "**parties**").

**WHEREAS**, the parties previously entered into that certain United Express Agreement dated as of December 28th, 2006, United Contract # 172884 (together with all prior amendments thereto, the "**Agreement**") (the parties acknowledge that amendments 2, 3 and 9 are intentionally omitted);

**WHEREAS**, pursuant to Article XXXI of the Agreement, the parties may modify or amend the Agreement;

**WHEREAS,** the parties desire to further amend the Agreement in accordance with the terms and conditions of this Amendment; and

**NOW THEREFORE**, for good and valuable consideration, the receipt, sufficiency, and adequacy of which are hereby acknowledged, the parties hereby agree as follows:

I. DEFINITIONS

Capitalized terms used in this Amendment and not otherwise defined in this Amendment shall have the meanings assigned to them in the Agreement or other written agreements by and between the parties as noted.

II. SCOPE, TERM, and CONDITIONS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Effective as of [\*\*\*] (the "**Amendment Effective Date**") through and including [\*\*\*] (the
" **Concession Period** "), [\*\*\*]; provided, however that [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. In respect of the period commencing [\*\*\*], the Minimum Average Scheduled Block Hours per day in the table set
forth on Appendix K of the Agreement shall be [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. [\*\*\*]

------

III. MISCELLANEOUS.

Except as otherwise amended herein, the Agreement will remain in full force and effect. The terms of this Amendment are deemed to be incorporated in, and made a part of, the Agreement, and the Agreement and this Amendment shall constitute a single integrated agreement. This Amendment may be executed in any number of counterparts, by original or facsimile signature, each of which when executed and delivered shall be deemed an original and such counterparts together shall constitute one and the same instrument.

[Signature page follows]

------

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

---

| | | | |
|:---|:---|:---|:---|
| UNITED AIRLINES, INC. | UNITED AIRLINES, INC. | Republic Airways Holdings Inc. consents to the foregoing Amendment and agrees that its guaranty of the Agreement shall apply to the Agreement (as amended by this Amendment) and all New Aircraft Leases. Republic Airways Holdings Inc. also reconfirms its guaranty of the Operative Agreements (as defined in the Credit Agreement). | Republic Airways Holdings Inc. consents to the foregoing Amendment and agrees that its guaranty of the Agreement shall apply to the Agreement (as amended by this Amendment) and all New Aircraft Leases. Republic Airways Holdings Inc. also reconfirms its guaranty of the Operative Agreements (as defined in the Credit Agreement). |
| By: | /s/ Sarah Rae Murphy | Republic Airways Holdings Inc. consents to the foregoing Amendment and agrees that its guaranty of the Agreement shall apply to the Agreement (as amended by this Amendment) and all New Aircraft Leases. Republic Airways Holdings Inc. also reconfirms its guaranty of the Operative Agreements (as defined in the Credit Agreement). | Republic Airways Holdings Inc. consents to the foregoing Amendment and agrees that its guaranty of the Agreement shall apply to the Agreement (as amended by this Amendment) and all New Aircraft Leases. Republic Airways Holdings Inc. also reconfirms its guaranty of the Operative Agreements (as defined in the Credit Agreement). |
| Name: Sarah Rae Murphy | Name: Sarah Rae Murphy | Republic Airways Holdings Inc. consents to the foregoing Amendment and agrees that its guaranty of the Agreement shall apply to the Agreement (as amended by this Amendment) and all New Aircraft Leases. Republic Airways Holdings Inc. also reconfirms its guaranty of the Operative Agreements (as defined in the Credit Agreement). | Republic Airways Holdings Inc. consents to the foregoing Amendment and agrees that its guaranty of the Agreement shall apply to the Agreement (as amended by this Amendment) and all New Aircraft Leases. Republic Airways Holdings Inc. also reconfirms its guaranty of the Operative Agreements (as defined in the Credit Agreement). |
| Title: SVP, United Express | Title: SVP, United Express | Republic Airways Holdings Inc. consents to the foregoing Amendment and agrees that its guaranty of the Agreement shall apply to the Agreement (as amended by this Amendment) and all New Aircraft Leases. Republic Airways Holdings Inc. also reconfirms its guaranty of the Operative Agreements (as defined in the Credit Agreement). | Republic Airways Holdings Inc. consents to the foregoing Amendment and agrees that its guaranty of the Agreement shall apply to the Agreement (as amended by this Amendment) and all New Aircraft Leases. Republic Airways Holdings Inc. also reconfirms its guaranty of the Operative Agreements (as defined in the Credit Agreement). |
|  |  | REPUBLIC AIRWAYS HOLDINGS INC. | REPUBLIC AIRWAYS HOLDINGS INC. |
|  |  | By: | /s/ Joseph P. Allman |
|  |  | Name: Joseph P. Allman | Name: Joseph P. Allman |
|  |  | Title: SVP and CFO | Title: SVP and CFO |

---

---

| | |
|:---|:---|
| REPUBLIC AIRWAYS INC. | REPUBLIC AIRWAYS INC. |
| By: | /s/ Joseph P. Allman |
| Name: Joseph P. Allman | Name: Joseph P. Allman |
| Title: SVP and CFO | Title: SVP and CFO |

---

------

Attachment 1

[\*\*\*]

------

[\*\*\*]

------

Attachment 2

[\*\*\*]

------

[\*\*\*]

## Exhibit 10.27

**Exhibit 10.27.17** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

**NINETEENTH AMENDMENT TO UNITED EXPRESS AGREEMENT** 

This Nineteenth Amendment to the United Express Agreement (this "**Amendment**") is dated as of September 30, 2021 (the "**Nineteenth Amendment Effective Date**"), by and among **UNITED AIRLINES, INC.**, a Delaware corporation, ("**United**"), **REPUBLIC AIRWAYS INC.**, an Indiana corporation ("**Contractor**"), and **REPUBLIC AIRWAYS HOLDINGS INC.**, a Delaware corporation ("**Republic**" and, together with United and Contractor, the "**parties**").

**WHEREAS**, the parties previously entered into that certain United Express Agreement dated as of December 28th, 2006, United Contract # 172884 (together with all amendments thereto, the "**Agreement**") (the parties acknowledge that amendments 2, 3 and 9 are intentionally omitted);

**WHEREAS**, concurrently with the execution and delivery of this Amendment, each party is also entering into that certain Capacity Purchase Agreement dated of even date herewith for the provision of regional airline services thereunder as to Embraer 175 aircraft (the "**E175 CPA**"), with the intent that, from and after the execution and delivery of this Amendment and the E175 CPA, the Agreement shall solely govern the performance by Contractor for United of regional airline services utilizing Embraer 170 aircraft and the E175 CPA shall solely govern the performance by Contractor for United of regional airline services utilizing Embraer 175 aircraft;

**WHEREAS**, certain terms and conditions contained in the E175 CPA are intended by the parties to be incorporated into the Agreement, in each case pursuant to the express terms and conditions set out below in this Amendment;

**WHEREAS**, pursuant to Article XXXI of the Agreement, the parties may modify or amend the Agreement;

**WHEREAS,** the parties desire to further amend the Agreement in accordance with the terms and conditions of this Amendment; and

**NOW THEREFORE**, for good and valuable consideration, the receipt, sufficiency, and adequacy of which are hereby acknowledged, the parties hereby agree as follows, in all cases effective as of the Nineteenth Amendment Effective Date:

I. DEFINITIONS

Capitalized terms used in this Amendment and not otherwise defined in this Amendment shall have the meanings assigned to them in the Agreement or other written agreements by and between the parties as noted.

------

II. SCOPE, TERM, and CONDITIONS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Article IV.C of the Agreement is deleted in its entirety and replaced with the following: "The parties
acknowledge and agree that scheduling for Contractor's United Express Services utilizing Embraer 170 aircraft (but not any other aircraft) under this Agreement shall be conducted pursuant to the scheduling requirements set out in Sections 2.01
and 2.09 of that certain Capacity Purchase Agreement dated as of September 30, 2021 by and among United, Contractor and Republic for the operation of Embraer 175 aircraft (the "**E175 CPA** "), together with all other provisions of
the E175 CPA necessary to give meaning to the applicable provisions in such Sections 2.01 and 2.09 [\*\*\*], in each case *mutatis mutandis*."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Article VIII of the Agreement is deleted in its entirety and replaced with the following: "The parties
acknowledge and agree that payments under this Agreement as to Contractor's United Express Services utilizing Embraer 170 aircraft (but not any other aircraft) shall be made pursuant to the rates set out on Appendix E (as amended by the
Nineteenth Amendment) and otherwise pursuant to the applicable provisions of Article III and Schedule 3 of the E175 CPA, including the incentive provisions set forth therein, in each case *mutatis mutandis.* "

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Article XXVI of the Agreement is deleted in its entirety and replaced with the following: "The parties
acknowledge and agree that the provisions regarding Force Majeure set out in Section 10.27 of the E175 CPA are incorporated by reference into this Agreement, *mutatis mutandis.* "

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Appendix B of the Agreement is hereby [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. Appendix E of the Agreement is hereby [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. Appendix K of this Agreement is hereby amended and restated in its entirety with the following: "The
parties acknowledge and agree that the provisions set out in Exhibit R (*Reasonable Operating Constraints*) of the E175 CPA are incorporated herein by reference, *mutatis mutandis.* "

III. MISCELLANEOUS.

Except as otherwise amended herein, the Agreement will remain in full force and effect. The terms of this Amendment are deemed to be incorporated in, and made a part of, the Agreement, and the Agreement and this Amendment shall constitute a single integrated agreement. This Amendment may be executed in any number of counterparts, by original or facsimile signature, each of which when executed and delivered shall be deemed an original and such counterparts together shall constitute one and the same instrument.

[Signature page follows]

------

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

---

| | | | |
|:---|:---|:---|:---|
| UNITED AIRLINES, INC. | UNITED AIRLINES, INC. | Republic Airways Holdings Inc. consents to the foregoing Amendment and agrees that its guaranty of the Agreement shall apply to the Agreement (as amended by this Amendment) | Republic Airways Holdings Inc. consents to the foregoing Amendment and agrees that its guaranty of the Agreement shall apply to the Agreement (as amended by this Amendment) |
| By: | /s/ Gerald Laderman | Republic Airways Holdings Inc. consents to the foregoing Amendment and agrees that its guaranty of the Agreement shall apply to the Agreement (as amended by this Amendment) | Republic Airways Holdings Inc. consents to the foregoing Amendment and agrees that its guaranty of the Agreement shall apply to the Agreement (as amended by this Amendment) |
| Name: Gerald Laderman | Name: Gerald Laderman | Republic Airways Holdings Inc. consents to the foregoing Amendment and agrees that its guaranty of the Agreement shall apply to the Agreement (as amended by this Amendment) | Republic Airways Holdings Inc. consents to the foregoing Amendment and agrees that its guaranty of the Agreement shall apply to the Agreement (as amended by this Amendment) |
| TTitle: EVP and CFO | TTitle: EVP and CFO | Republic Airways Holdings Inc. consents to the foregoing Amendment and agrees that its guaranty of the Agreement shall apply to the Agreement (as amended by this Amendment) | Republic Airways Holdings Inc. consents to the foregoing Amendment and agrees that its guaranty of the Agreement shall apply to the Agreement (as amended by this Amendment) |
|  |  | REPUBLIC AIRWAYS HOLDINGS INC. | REPUBLIC AIRWAYS HOLDINGS INC. |
|  |  | By: | /s/ Joseph P. Allman |
|  |  | Name: Joseph P. Allman | Name: Joseph P. Allman |
|  |  | Title: SVP and CFO | Title: SVP and CFO |

---

---

| | |
|:---|:---|
| REPUBLIC AIRWAYS INC. | REPUBLIC AIRWAYS INC. |
| By: | /s/ Joseph P. Allman |
| Name: Joseph P. Allman | Name: Joseph P. Allman |
| Title: SVP and CFO | Title: SVP and CFO |

---

------

Attachment 1

[\*\*\*]

------

Attachment 2

**[\*\*\*]**

## Exhibit 10.27

**Exhibit 10.27.18** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

**TWENTIETH AMENDMENT TO UNITED EXPRESS AGREEMENT** 

This Twentieth Amendment to the United Express Agreement (this "**Amendment**") is dated as of January 25, 2023 (the "**Twentieth Amendment Effective Date**"), by and among **UNITED AIRLINES, INC.**, a Delaware corporation, ("**United**"), **REPUBLIC AIRWAYS INC.**, an Indiana corporation ("**Contractor**"), and **REPUBLIC AIRWAYS HOLDINGS INC.**, a Delaware corporation ("**Republic**" and, together with United and Contractor, the "**parties**").

**WHEREAS**, the parties previously entered into that certain United Express Agreement dated as of December 28th, 2006, United Contract # 172884 (together with all amendments thereto, the "**Agreement**") (the parties acknowledge that amendments 2, 3 and 9 are intentionally omitted);

**WHEREAS**, pursuant to Article XXXI of the Agreement, the parties may modify or amend the Agreement;

**WHEREAS,** the parties desire to further amend the Agreement in accordance with the terms and conditions of this Amendment; and

**NOW THEREFORE**, for good and valuable consideration, the receipt, sufficiency, and adequacy of which are hereby acknowledged, the parties hereby agree as follows, in all cases effective as of the Twentieth Amendment Effective Date:

I. DEFINITIONS

Capitalized terms used in this Amendment and not otherwise defined in this Amendment shall have the meanings assigned to them in the Agreement or other written agreements by and between the parties as noted.

II. SCOPE, TERM, and CONDITIONS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Article VIII of the Agreement is deleted in its entirety and replaced with the following: "The parties
acknowledge and agree that payments under this Agreement as to Contractor's United Express Services utilizing Embraer 170 aircraft (but not any other aircraft) shall be made pursuant to the rates set out on Appendix E (as amended by the
Twentieth Amendment) and otherwise pursuant to the applicable provisions of Article III and Schedule 3 of the E175 CPA, including the incentive provisions set forth therein, in each case *mutatis mutandis.* The parties further acknowledge and
agree that [\*\*\*]."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Appendix E of the Agreement is hereby [\*\*\*].

------

III. MISCELLANEOUS.

Except as amended by this Amendment, the Agreement remains in full force and effect. The terms of this Amendment are deemed to be incorporated in, and made a part of, the Agreement, and the Agreement and this Amendment shall constitute a single integrated agreement. This Amendment may be executed in counterparts, all of which together shall constitute an agreement binding on all the parties hereto, notwithstanding that all such parties are not signatories to the original or the same counterpart. This Amendment (together with any attachments attached hereto) constitutes the entire agreement between the parties with respect to the subject matter hereof, and supersedes any other agreements, representations, warranties, covenants, communications, or understandings, in each case whether oral or written (including, but not limited to, electronic correspondence), that may have been made or entered into by or between the parties or any of their respective affiliates or agents relating in any way to the subject matter of this Amendment.

[Signature page follows]

------

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

---

| | | | |
|:---|:---|:---|:---|
| UNITED AIRLINES, INC. | UNITED AIRLINES, INC. | Republic Airways Holdings Inc. consents to the foregoing Amendment and agrees that its guaranty of the Agreement shall apply to the Agreement (as amended by this Amendment) | Republic Airways Holdings Inc. consents to the foregoing Amendment and agrees that its guaranty of the Agreement shall apply to the Agreement (as amended by this Amendment) |
| By: | /s/ Gerald Laderman | Republic Airways Holdings Inc. consents to the foregoing Amendment and agrees that its guaranty of the Agreement shall apply to the Agreement (as amended by this Amendment) | Republic Airways Holdings Inc. consents to the foregoing Amendment and agrees that its guaranty of the Agreement shall apply to the Agreement (as amended by this Amendment) |
| Name: Gerald Laderman | Name: Gerald Laderman |  |  |
| TTitle: EVP and CFO | TTitle: EVP and CFO |  |  |
|  |  | REPUBLIC AIRWAYS HOLDINGS INC. | REPUBLIC AIRWAYS HOLDINGS INC. |
|  |  | By: | /s/ Joseph P. Allman |
|  |  | Name: Joseph P. Allman | Name: Joseph P. Allman |
|  |  | Title: SVP and CFO | Title: SVP and CFO |

---

---

| | |
|:---|:---|
| REPUBLIC AIRWAYS INC. | REPUBLIC AIRWAYS INC. |
| By: | /s/ Joseph P. Allman |
| Name: Joseph P. Allman | Name: Joseph P. Allman |
| Title: SVP and CFO | Title: SVP and CFO |

---

------

Attachment 1

**[\*\*\*]**

## Exhibit 10.27

**Exhibit 10.27.19** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

**TWENTY-FIRST AMENDMENT TO UNITED EXPRESS AGREEMENT** 

This Twenty-First Amendment to the United Express Agreement (this "**Amendment**") is dated as of May 31, 2024 (the "**Twenty-First Amendment Effective Date**"), by and among **UNITED AIRLINES, INC.**, a Delaware corporation, ("**United**"), **REPUBLIC AIRWAYS INC.**, an Indiana corporation ("**Contractor**"), and **REPUBLIC AIRWAYS HOLDINGS INC.**, a Delaware corporation ("**Republic**" and, together with United and Contractor, the "**parties**").

**WHEREAS,** the parties previously entered into that certain United Express Agreement dated as of December 28th, 2006, United Contract # 172884 (together with all amendments thereto, the "**Agreement**") (the parties acknowledge that amendments 2, 3 and 9 are intentionally omitted);

**WHEREAS,** pursuant to Article XXXI of the Agreement. the parties may modify or amend the Agreement;

**WHEREAS,** the parties desire to further amend the Agreement in accordance with the terms and conditions of this Amendment; and

**NOW THEREFORE,** for good and valuable consideration. the receipt, sufficiency, and adequacy of which are hereby acknowledged, the parties hereby agree as follows, in all cases effective as of the Twenty-First Amendment Effective Date:

I. DEFINITIONS

Capitalized terms used in this Amendment and not otherwise defined in this Amendment shall have the meanings assigned to them in the Agreement or other written agreements by and between the parties as noted.

II. REMOVAL OF AIRCRAFT

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Contractor and United agree to remove [\*\*\*] as of the Twenty-First Amendment Effective Date (the
" **Removed Aircraft** "). [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Amended Expiration Date in the line designated as [\*\*\*] in Appendix B to the Agreement, as last amended by
and reflected in Attachment 1 of Amendment 19 to the Agreement, is hereby [\*\*\*]

------

III. MISCELLANEOUS.

Except as amended by this Amendment, the Agreement remains in full force and effect. The terms of this Amendment are deemed to be incorporated in, and made a part of, the Agreement, and the Agreement and this Amendment shall constitute a single integrated agreement. This Amendment may be executed in counterparts, all of which together shall constitute an agreement binding on all the parties hereto, notwithstanding that all such parties are not signatories to the original or the same counterpart. This Amendment (together with any attachments attached hereto) constitutes the entire agreement between the parties with respect to the subject matter hereof, and supersedes any other agreements, representations, warranties, covenants, communications, or understandings, in each case whether oral or written (including, but not limited to, electronic correspondence), that may have been made or entered into by or between the parties or any of their respective affiliates or agents relating in any way to the subject matter of this Amendment.

------

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

---

| | | | |
|:---|:---|:---|:---|
| UNITED AIRLINES, INC. | UNITED AIRLINES, INC. | Republic Airways Holdings Inc. consents to the foregoing Amendment and agrees that its guaranty of the Agreement shall apply to the Agreement (as amended by this Amendment) | Republic Airways Holdings Inc. consents to the foregoing Amendment and agrees that its guaranty of the Agreement shall apply to the Agreement (as amended by this Amendment) |
| By: | /s/ Jonathan Ireland | Republic Airways Holdings Inc. consents to the foregoing Amendment and agrees that its guaranty of the Agreement shall apply to the Agreement (as amended by this Amendment) | Republic Airways Holdings Inc. consents to the foregoing Amendment and agrees that its guaranty of the Agreement shall apply to the Agreement (as amended by this Amendment) |
| Name: Jonathan Ireland | Name: Jonathan Ireland |  |  |
| Title: SVP, Finance | Title: SVP, Finance |  |  |
|  |  | REPUBLIC AIRWAYS HOLDINGS INC. | REPUBLIC AIRWAYS HOLDINGS INC. |
|  |  | By: | /s/ Chad Pulley |
|  |  | Name: Chad Pulley | Name: Chad Pulley |
|  |  | Title: SVP, General Counsel | Title: SVP, General Counsel |

---

---

| | |
|:---|:---|
|  REPUBLIC AIRWAYS INC. | REPUBLIC AIRWAYS INC. |
| By: | /s/ Chad Pulley |
|  Name: Chad Pulley | Name: Chad Pulley |
|  Title: SVP, General Counsel | Title: SVP, General Counsel |

---

## Exhibit 10.27

**Exhibit 10.27.20** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

**AMENDED AND RESTATED** 

**CAPACITY PURCHASE AGREEMENT** 

**AMONG** 

**UNITED AIRLINES, INC.** 

**AND** 

**REPUBLIC AIRWAYS INC.** 

**AND** 

**REPUBLIC AIRWAYS HOLDINGS INC.** 

**DATED AS OF JANUARY 25, 2023** 

------

---

| | | |
|:---|:---|:---|
| ARTICLE I DEFINITIONS | ARTICLE I DEFINITIONS | 1 |
| ARTICLE II CAPACITY PURCHASE, SCHEDULES AND FARES | ARTICLE II CAPACITY PURCHASE, SCHEDULES AND FARES | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 2.01* | *<u>Capacity Purchase</u>* | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 2.02* | *<u>Flight-Related Revenues</u>* | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 2.03* | *<u>Pass and Reduced Rate Travel</u>* | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 2.04* | *<u>Conversion of Aircraft Livery</u>* | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 2.05* | *<u>Non-Discrimination</u>* | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 2.06* | *<u>[\*\*\*]</u>* | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 2.07* | *<u>Diversions</u>* | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 2.08* | *<u>Ground Delay Program</u>* | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 2.09* | *<u>Staffing</u>* | 8 |
| ARTICLE III CONTRACTOR COMPENSATION | ARTICLE III CONTRACTOR COMPENSATION | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 3.01* | *<u>Base and Incentive Compensation</u>* | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 3.02* | *<u>Contractor Expenses</u>* | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 3.03* | *<u>United Expenses</u>* | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 3.04* | *<u>Audit Rights; Financial Information</u>* | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 3.05* | *<u>Billing and Payment; Reconciliation</u>* | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 3.06* | *<u>[\*\*\*]</u>* | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 3.07* | *<u>Reports</u>* | 12 |
| ARTICLE IV CONTRACTOR OPERATIONS AND AGREEMENTS WITH UNITED | ARTICLE IV CONTRACTOR OPERATIONS AND AGREEMENTS WITH UNITED | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 4.01* | *<u>Governmental Regulations; Maintenance</u>* | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 4.02* | *<u>Quality of Service</u>* | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 4.03* | *<u>Incidents or Accidents</u>* | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 4.04* | *<u>Emergency Response</u>* | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 4.05* | *<u>Safety Matters</u>* | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 4.06* | *<u>Codeshare Terms</u>* | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 4.07* | *<u>Slots and Route Authorities</u>* | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 4.08* | *<u>Use of United Marks</u>* | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 4.09* | *<u>Use of Contractor Marks</u>* | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 4.10* | *<u>Catering Standards</u>* | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 4.11* | *<u>Fuel Efficiency Program</u>* | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 4.12* | *<u>Engine Costs; Engine LLP Costs</u>* | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 4.13* | *<u>Unauthorized Payments</u>* | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 4.14* | *<u>Environmental</u>* | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 4.15* | *<u>Lease, Use and Modification of Airport Facilities</u>* | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 4.16* | *<u>Fuel Procurement and Fuel Services</u>* | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 4.17* | *<u>Ground Handling</u>* | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 4.18* | *<u>Flight Crews</u>* | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 4.19* | *<u>[\*\*\*]</u>* | 22 |

---

------

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 4.20* | *<u>Uniforms; ALPA Letter Observance</u>* | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 4.21* | *<u>Operations Specifications Certificate</u>* | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 4.22* | *<u>Information Technology</u>* | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 4.23* | *<u>[\*\*\*]</u>* | 22 |
| ARTICLE V CERTAIN RIGHTS OF UNITED | ARTICLE V CERTAIN RIGHTS OF UNITED | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 5.01* | *<u>Use of Covered Aircraft</u>* | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 5.02* | *<u>No Operation Outside Agreement, Charters</u>* | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 5.03* | *<u>Change of Control</u>* | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 5.04* | *<u>[\*\*\*]</u>* | 23 |
| ARTICLE VI INSURANCE AND TAXES | ARTICLE VI INSURANCE AND TAXES | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 6.01* | *<u>Minimum Insurance Types</u>* | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 6.02* | *<u>Endorsements</u>* | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 6.03* | *<u>Evidence of Insurance Coverage</u>* | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 6.04* | *<u>Failure to Maintain Insurance</u>* | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 6.05* | *<u>Taxes</u>* | 25 |
| ARTICLE VII INDEMNIFICATION | ARTICLE VII INDEMNIFICATION | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 7.01* | *<u>Contractor Indemnification of United</u>* | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 7.02* | *<u>United Indemnification of Contractor</u>* | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 7.03* | *<u>Indemnification Claims</u>* | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 7.04* | *<u>Employer's Liability; Independent Contractors; Waiver of Control</u>* | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 7.05* | *<u>Unauthorized Obligations</u>* | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 7.06* | *<u>Survival</u>* | 29 |
| ARTICLE VIII TERM, TERMINATION AND DISPOSITION OF AIRCRAFT | ARTICLE VIII TERM, TERMINATION AND DISPOSITION OF AIRCRAFT | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 8.01* | *<u>Term</u>* | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 8.02* | *<u>Early Termination</u>* | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 8.03* | *<u>Disposition of Aircraft during Wind-Down Period</u>* | 31 |
| ARTICLE IX REPRESENTATIONS, WARRANTIES AND COVENANTS | ARTICLE IX REPRESENTATIONS, WARRANTIES AND COVENANTS | 34 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 9.01* | *<u>Representations, Warranties and Covenants of Contractor</u>* | 34 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 9.02* | *<u>Representations and Warranties of United</u>* | 36 |
| ARTICLE X MISCELLANEOUS | ARTICLE X MISCELLANEOUS | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 10.01* | *<u>No Dispositions of Contractor Owned E175 Aircraft and New E175LR Tranche 1 Covered Aircraft</u>* | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 10.02* | *<u>Notices</u>* | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 10.03* | *<u>Binding Effect; Assignment</u>* | 38 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 10.04* | *<u>Amendment and Modification</u>* | 38 |

---

------

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 10.05* | *<u>Waiver</u>* | 38.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 10.06* | *<u>Interpretation</u>* | 39.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 10.07* | *<u>Confidentiality</u>* | 39.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 10.08* | *<u>Arbitration</u>* | 40.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 10.09* | *<u>Confidentiality</u>* | 42.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 10.10* | *<u>Counterparts</u>* | 42.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 10.11* | *<u>Severability</u>* | 42.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 10.12* | *<u>Equitable Remedies</u>* | 42.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 10.13* | *<u>Relationship of Parties</u>* | 43.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 10.14* | *<u>Entire Agreement; No Third Party Beneficiaries</u>* | 43.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 10.15* | *<u>Governing Law</u>* | 43.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 10.16* | *<u>Right of Set-Off</u>* | 43.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 10.17* | *<u>Cooperation with Respect to Reporting</u>* | 43.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 10.18* | *<u>United Owned Aircraft Lease; Delivery; Acceptance</u>* | 44.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 10.19* | *<u>Placement into Service</u>* | 44.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 10.20* | *<u>Early Brake Release</u>* | 44.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 10.21* | *<u>Cumulative Remedies</u>* | 44.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 10.22* | *<u>[\*\*\*]</u>* | 45.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 10.23* | *<u>Force Majeure</u>* | 45.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 10.24* | *<u>United Wifi</u>* | 45.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 10.25* | *<u>Certain Amendments to 2006 United Express Agreement</u>* | 45.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 10.26* | *<u>Manufacturer Guarantees</u>* | 45.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Section 10.27* | *<u>Punitive Damages</u>* | 45.0 |

---

---

| | |
|:---|:---|
| SCHEDULE 1: | Covered Aircraft |
| SCHEDULE 2: | Amended Expiration Dates for Expiring Aircraft under 2006 United Express Agreement |
| SCHEDULE 3: | Compensation |
| EXHIBIT A: | Definitions |
| EXHIBIT B: | [\*\*\*] |
| EXHIBIT C: | United Owned Aircraft Leases |
| EXHIBIT D: | Terms of Codeshare Arrangements |
| EXHIBIT E: | Non-Revenue Pass Travel |
| EXHIBIT F: | United Directed Charter Flight Operations |
| EXHIBIT G: | Use of United Marks and Other Identification |
| EXHIBIT H: | Use of Contractor Marks |
| EXHIBIT I: | Catering Standards |
| EXHIBIT J: | Aircraft Cleanliness and Refurbishment Standards |
| EXHIBIT K: | [\*\*\*] |
| EXHIBIT L: | Fuel Efficiency Program |
| EXHIBIT M: | [\*\*\*] |
| EXHIBIT N: | Call Option Purchase Price |
| EXHIBIT O: | Safety Standards for United and United Express Carriers |
| EXHIBIT P: | Ground Handler Indemnity |

---

------

---

| | |
|:---|:---|
| EXHIBIT Q: | Form of Parent Guarantee |
| EXHIBIT R: | Reasonable Operating Constraints |
| EXHIBIT S: | United WiFi |
| EXHIBIT T: | Cyber Data Risk Contractor Requirements |
| EXHIBIT U: | [\*\*\*] |
| EXHIBIT V: | [\*\*\*] |
| EXHIBIT W: | [\*\*\*] |

---

------

**Amended and Restated Capacity Purchase Agreement** 

This **Amended and Restated Capacity Purchase Agreement** (this "**<u>Agreement</u>**"), dated as of January 25, 2023 (the "**<u>Effective Date</u>**"), is among United Airlines, Inc., a Delaware corporation (together with its successors and assigns, "**<u>United</u>**"), Republic Airways Inc., an Indiana corporation ("**<u>Contractor</u>**"), and Republic Airways Holdings Inc., a Delaware corporation ("**<u>Parent</u>**").

**WHEREAS**, United and Contractor entered into that certain Capacity Purchase Agreement, dated as of September 30, 2021, as amended by Amendment No. 1 thereto (the "**<u>Existing Agreement</u>**");

**WHEREAS**, United and Contractor desire to enter into new terms and conditions relating to Contractor's provision of Regional Airline Services for the operation of Scheduled Flights using certain New E175LR Tranche 1 aircraft;

**WHEREAS**, the parties have previously entered into, or will, subsequent to the execution and delivery of this Agreement, enter into, Ancillary Agreements (as defined below), including the aircraft leases, in each case intending that each such Ancillary Agreement be considered, and they are, an integral part of this Agreement.

**NOW**, **THEREFORE**, in consideration of the foregoing premises and the mutual covenants and obligations hereinafter contained, the parties agree to:

**ARTICLE I** 

**DEFINITIONS** 

Capitalized terms used in this Agreement (including, unless otherwise defined therein, in the Schedules, Appendices and Exhibits to this Agreement) shall have the meanings set forth in <u>Exhibit</u> <u>A</u> and <u>Schedule 3</u> hereto, as applicable.

**ARTICLE II** 

**CAPACITY PURCHASE, SCHEDULES AND FARES** 

*Section 2.01 <u>Capacity Purchase</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Capacity</u>.* Subject to the terms and conditions of this Agreement, (i) United agrees to purchase the capacity (both passenger and cargo capacity) of the Covered Aircraft for the Term for the consideration described in this Agreement (including in <u>Article</u> <u>III</u>), and (ii) Contractor shall provide all of the capacity of the Covered Aircraft solely to United and use the Covered Aircraft solely to operate the Scheduled Flights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Fares, Rules and Seat Inventory</u>*. United shall establish and publish all fares and related tariff rules for all seats on the Covered Aircraft. Contractor shall not publish any fares, tariffs, or related information for the Covered Aircraft. In addition, United shall have complete control over all seat inventory and inventory and revenue management decisions for the Covered Aircraft, including overbooking levels, discount seat levels and allocation of seats among various fare buckets. Both parties agree to comply with all applicable terms and conditions outlined in the Related Agreements relating to positive space and space available travel.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>Flight Schedules</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) United shall, in its sole discretion, establish and publish all flight schedules for the Covered Aircraft (such scheduled flights, together with United Directed Charter Flights and ferry flights required to accommodate such scheduled flights and United Directed Charter Flights or otherwise made at United's request, referred to herein as "**<u>Scheduled Flights</u>**"), including determining the city-pairs served, frequencies, utilization and timing of scheduled arrivals and departures, and shall, in its sole discretion, make all determinations regarding the establishment and scheduling of any United Directed Charter Flights; *provided* that such schedules shall be subject to Reasonable Operating Constraints and the provisions of this <u>Section</u> <u>2.01</u>; *provided further* that Contractor shall operate United Directed Charter Flights on behalf of United, if any, at rates set forth in <u>Appendix 1</u> to <u>Schedule</u> <u>3</u>. United shall also be entitled, in its sole discretion and at any time prior to takeoff, to direct Contractor to delay or cancel a Scheduled Flight, including for delays and cancellations that are ATC or weather related, and Contractor shall take all necessary action to give effect to any such direction, *provided* that if United, following delivery of a Final Monthly Schedule for such calendar month, directs the cancellation of flights (each, a "**<u>United Cancelled Flight</u>**" and collectively, the "**<u>United Cancelled Flights</u>**") below and that flight cancellation is coded as a United Cancelled Flight in United's systems as a United initiated cancellation, then United shall pay Contractor in accordance with the rates set forth in <u>Schedule 3</u> for each United Cancelled Flight, as if each such United Cancelled Flight had been operated as contemplated in the Final Monthly Schedule as the sole compensation for such flight, and United Cancelled Flights shall be Uncontrollable Cancellations for all purposes hereunder (for the avoidance of doubt, this proviso shall not apply to cancellations caused solely by schedule reduction requests submitted by Contractor). Contractor shall be entitled to make such maintenance, ferry and repositioning flights as may reasonably be required to facilitate the proper maintenance of the Covered Aircraft or to accommodate the Scheduled Flights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) At least [\*\*\*] prior to the first day of each month to which a proposed Final Monthly Schedule relates, Contractor and United shall meet to review the planned flight schedules for the Available Covered Aircraft for such month (the "**<u>Initial Proposed Monthly Schedule</u>**"), and United shall also present a non-binding estimate of the aggregate Block Hours forecasted by United to be flown by Contractor pursuant to this Agreement during the rolling [\*\*\*] following the date of such meeting. Without limiting any of United's rights or remedies set forth in this Agreement, United shall review and consider in good faith any changes to the planned flight schedule for the Available Covered Aircraft, including changes (x) to the Initial Proposed Monthly Schedule and (y) as suggested in good faith and in writing by Contractor (which United agrees may be in the form of an email communication if in compliance with <u>Section</u> <u>10.02</u>) to United in regards to Staffing Incapacity (as defined below). "**<u>Staffing Incapacity</u>**" means the inability of Contractor to [\*\*\*].

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Not later than [\*\*\*] prior to the beginning of the calendar month to which an Initial Proposed Monthly Schedule relates, United will deliver to Contractor the proposed Final Monthly Schedule (the "**<u>Proposed Final Monthly Schedule</u>**"). Following such delivery of the Proposed Final Monthly Schedule, however, on reasonable notice to Contractor, United may make such adjustments to the Proposed Final Monthly Schedule as it deems appropriate (subject to Reasonable Operating Constraints); *provided* that such adjustments requested by United shall not increase, decrease or otherwise modify the aggregate Scheduled Flights in the Proposed Final Monthly Schedule [\*\*\*], except that [\*\*\*] shall be considered in good faith by Contractor but shall remain subject to Contractor's prior written consent [\*\*\*]. In the event the Proposed Final Monthly Schedule is revised in accordance with this <u>Section</u> <u>2.01(c)(iii)</u>, United shall deliver a revised Proposed Final Monthly Schedule to Contractor as soon as reasonably practicable and in any event not less than [\*\*\*] to the beginning of the calendar month to which such Proposed Final Monthly Schedule relates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Upon the date which is [\*\*\*] prior to the beginning of the calendar month to which the most recent Proposed Final Monthly Schedule relates, such Proposed Final Monthly Schedule shall be deemed to be the final monthly schedule (the "**<u>Final Monthly Schedule</u>**"). Following such delivery of the Final Monthly Schedule, however, on reasonable notice to Contractor, United may make such adjustments to the Final Monthly Schedule as it deems appropriate (subject to Reasonable Operating Constraints); *provided* that such adjustments requested by United shall not increase, decrease or otherwise modify the aggregate Scheduled Flights in the Final Monthly Schedule [\*\*\*]. Any downward adjustment to the Final Monthly Schedule shall be coded as a United Cancelled Flight in accordance with <u>Section</u> <u>2.01(c)(i)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) With respect to each Initial Proposed Final Monthly Schedule, each Proposed Final Monthly Schedule and each Final Monthly Schedule, Contractor shall deliver to United a statement [\*\*\*]. In each such statement, Contractor shall include [\*\*\*]. If Contractor fails to submit a statement as to any such schedule, then Contractor shall be deemed to have confirmed that Contractor has sufficient pilots to allow Contractor to accommodate such schedule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) For the purposes of <u>Section</u> <u>5.05</u> and <u>Section</u> <u>8.02(b)(iv)</u>, any reduction of Block Hours to any Proposed Final Monthly Schedule or Final Monthly Schedule solely as a result of United's reductions under <u>Section</u> <u>2.01(c)(iii)</u> or <u>Section</u> <u>2.01(c)(iv)</u> shall not be calculated as implied cancellations in the determination of Contractor's Controllable Completion Factor for the calendar months in which such Block Hours are reduced under this <u>Section</u> <u>2.01(c)</u>. For the avoidance of doubt, other than (A) United Cancelled Flights; (B) cancelations for which United has expressly waived Controllable Cancellation status in a written waiver; (C) any other Uncontrollable Cancellation; and (D) as provided for in <u>Section</u> <u>2.01(f)</u>, any reduction of Block Hours due to a cancelation of Scheduled Flights shall be [\*\*\*] for all purposes of this Agreement.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *<u>Aircraft Removal Rights</u>*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *<u>Aircraft Removal Rights in the Event of Certain Schedule Reduction Requests</u>.* Upon each request by Contractor for a schedule reduction and to the extent thereof, United shall have the right, exercisable at its sole option, to remove a number of Available Covered Aircraft from this Agreement proportional to any such schedule reductions sought by Contractor, by providing Contractor a written notice within [\*\*\*] of the beginning of such schedule reduction, specifying the number of aircraft to be removed, and the withdrawal date(s) of any such aircraft so removed; *provided* that, if United elects such option under this <u>Section</u> <u>2.01(e)(i)</u>, then United Owned Aircraft shall be removed before other Covered Aircraft, followed by Contractor Owned E175 Aircraft, and subsequently by New E175LR Tranche 1 Covered Aircraft or E170 Aircraft; and *provided further* that, without limiting the foregoing proviso, as to individual tail selection of Covered Aircraft removed under this <u>Section</u> <u>2.01(e)(i)</u> and the sequencing thereof, (x) as to United Owned Aircraft, United shall [\*\*\*], (y) as to Contractor Owned E175 Aircraft, New E175LR Tranche 1 Covered Aircraft and E170 Aircraft, Contractor shall [\*\*\*], *provided* that, in each case of the foregoing <u>clauses (x)</u> and <u>(y)</u>, each [\*\*\*], and (z) in either case of the foregoing <u>clauses (x)</u> and <u>(y)</u>, if [\*\*\*], then the parties shall use good faith efforts to resolve any disagreements as quickly as practicable. Each such notice of removal from United shall specify the number of aircraft to be removed, the withdrawal date(s) of any such aircraft so removed, and such withdrawal date(s) shall be within [\*\*\*] from the delivery of such notice. If any Contractor Owned Covered Aircraft or New E175LR Tranche 1 Covered Aircraft are selected to be removed, then [\*\*\*]. For the avoidance of doubt, the provisions in this <u>Section</u> <u>2.01(e)(i)</u> are in addition to, and not in lieu of, the provisions set forth in <u>Section</u> <u>2.01(d)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *<u>Certain Schedule Adjustments</u>*. If, after United's delivery of the Final Monthly Schedule, United has fully complied with the scheduling requirements set forth in <u>Section</u> <u>2.01(c)</u>, either (x) at Contractor's request, including requests pursuant to <u>Section</u> <u>2.05</u>, after consulting with Contractor's COO in an effort to resolve any concerns regarding Contractor's ability to perform, that such flight would have resulted in a Controllable Cancellation, or (y) United reasonably believes that Contractor will be unable to perform the Final Monthly Schedule as presented and Contractor failed to operate [\*\*\*] for [\*\*\*] months immediately preceding the delivery of such Final Monthly Schedule, then, in each case, United shall have the right to adjust the Final Monthly Schedule in accordance with <u>Section</u> <u>2.01(c)(iv)</u> and in good faith, any cancellations directed by United in connection with any such adjustment shall be deemed to be Controllable Cancellations; *provided, however,* that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) no such Controllable Cancellations designated under this <u>Section</u> <u>2.01(f)</u> shall be [\*\*\*], and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) in the case of a Subject Schedule, the number of Controllable Cancellations [\*\*\*] shall be limited to the extent that the Subject Schedule [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) *<u>Charter Flights</u>*. Contractor shall procure no later than [\*\*\*] following the Effective Date, and shall maintain from and after such procurement, all certifications, permits, licenses, certificates, exemptions, approvals, plans, and insurance required by Governmental Authorities and airport authorities necessary or appropriate to operate charter flights in North America, including approvals required pursuant to Part 121 of the Federal Aviation Regulations set forth in 14 C.F.R. §§ 121.1 – 121.1500 with respect to supplemental operations. Contractor shall be obligated to operate charter flights pursuant to <u>Exhibit</u> <u>F</u> as directed by United in United's sole discretion ("**<u>United Directed Charter Flights</u>***"),* it being understood that scheduling of United Directed Charter Flights shall be included in the Initial Proposed Monthly Schedule and the Final Monthly Schedule in accordance with <u>2.01(c)</u> and Reasonable Operating Constraints set forth on <u>Exhibit R</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) *<u>Presenting Covered Aircraft for Service; Certain Agreements Regarding Financing; Liquidated Damages</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Contractor shall present each Covered Aircraft for service under this Agreement on the Actual In-Service Date determined with respect to such aircraft pursuant to <u>Table 1</u> in <u>Schedule 1</u> (for the Contractor Owned E175 Aircraft), the Actual In-Service Date determined with respect to such aircraft pursuant to <u>Table</u> <u>2</u> in <u>Schedule 1</u> (for the United Owned Aircraft), and the New E175LR Tranche 1 Committed In-Service Date set forth on <u>Table 3</u> in <u>Schedule 1</u> (for the New E175LR Tranche 1 Covered Aircraft). With respect to the New E175LR Tranche 1 Covered Aircraft, Contractor represents that the provisions in this Agreement setting the schedule for Contractor to begin to provide Regional Airline Services afford sufficient time for Contractor to be able to provide such services in a safe and reliable manner consistent with the requirements set forth in <u>Article IV</u> and <u>Exhibit</u> <u>O</u> and as otherwise required by this Agreement, including sufficient time for Contractor to obtain all certifications, permits, licenses, certificates, exemptions, approvals, plans and insurance required in order for it provide Regional Airline Services and for Contractor to train its flight and cabin crews, maintenance personnel and other staff as necessary for the safe and reliable provision of Regional Airline Services. Contractor acknowledges that United is relying on this representation in connection with entering into this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Without limiting, and in addition to and in furtherance of, the foregoing, Contractor and Parent shall work together in good faith and use commercially reasonable efforts to obtain aircraft financing to ensure the delivery of all of the New E175LR Tranche 1 Covered Aircraft in a manner that accommodates the New E175LR Tranche 1 Committed In-Service Dates. At United's request from time to time, Contractor and Parent shall [\*\*\*]. Neither Parent nor Contractor may [\*\*\*].

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) If, due to any act or omissions of Contractor, Contractor fails to place in-service an New E175LR Tranche 1 Covered Aircraft by the New E175LR Tranche 1 Committed In-Service Date for such aircraft, then [\*\*\*], with respect to each such aircraft, (x) Contractor shall pay to United, as liquidated damages [\*\*\*], and (y) in addition, if Contractor [\*\*\*], with respect to each such aircraft, then United [\*\*\*]. The parties agree that the damages to be suffered by United in the scenarios described above would be difficult to calculate, and that the liquidated damages set forth above are good faith and reasonable estimates of such damages, and that such liquidated damages are not intended to be a penalty. United's right to indemnification pursuant to <u>Article VII</u> for claims brought by third parties shall not be limited in any way by this <u>Section</u> <u>2.01(h)(iii)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) At any time from time to time, by submission of written notice to Contractor (but no advance notice shall be required), United shall have the right to [\*\*\*]. For the avoidance of doubt, this provision will not apply to any New E175LR Tranche 1 Covered Aircraft [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *<u>Spare Aircraft</u>*. Notwithstanding anything in this <u>Section</u> <u>2.01</u> or elsewhere in this Agreement to the contrary but subject to the provisions below in this <u>Section</u> <u>2.01(i)</u>, with respect to the Covered Aircraft, Contractor shall maintain the number of spare regional jet aircraft equal to the quotient obtained by dividing (w) the sum of the number of E175 Covered Aircraft plus the New E175LR Tranche 1 Covered Aircraft at such time by (x) [\*\*\*], rounding the quotient to the nearest whole number; *provided* that a quotient ending in 0.50 shall be rounded down. In addition, subject to applicable Reasonable Operating Constraints and pilot availability, Contractor will use commercially reasonable efforts to utilize such Spare Aircraft to operate flights as directed by United (unless such Spare Aircraft was, prior to such direction by United, already scheduled pursuant to a Final Monthly Schedule), including flights originally scheduled to be operated by United or other United service providers; *provided further* that if a Scheduled Flight is delayed or cancelled due to the unavailability of a Spare Aircraft which unavailability would not have occurred but for Contractor's use of such Spare Aircraft at United's direction pursuant to this sentence, then, each such delay or cancellation occurring within a reasonable period after such unavailability shall be deemed an Uncontrollable Delay or an Uncontrollable Cancellation. Notwithstanding anything to the contrary in this Agreement, Contractor must obtain United's prior written consent before it operates a Spare Aircraft for a Scheduled Flight and such Spare Aircraft's aircraft type has fewer seats than the aircraft type for the aircraft originally scheduled to operate such Scheduled Flight.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) *<u>Station Operations Center (SOC)</u>*. Upon United's delivery of a written request from time to time, which request shall be revocable by United at any time upon United providing Contractor with at least [\*\*\*] prior notice (and in addition to the rates outlined in <u>Schedule 3</u>), Contractor will provide: (i) adequate staffing in the United Airlines Stations Operations Center of each city in which a Hub Airport is located, and United shall reimburse Contractor for its reasonable documented incremental costs actually incurred and solely attributable to Contractor's compliance with United's request under this <u>paragraph (j)</u> and solely to the extent such costs were approved by United in writing in advance; (ii) Contractor will provide a full-time representative in the United Airlines

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Stations Operations Center of each city in which a Hub Airport is located and at which the number of Departures in any such city exceeds [\*\*\*] and Contractor's average daily flights at such Hub exceed [\*\*\*] in any 90 day period prior to the delivery of such request by United, and United shall reimburse Contractor for its reasonable documented incremental costs actually incurred and solely attributable to Contractor's compliance with United's request under this <u>paragraph (j)</u> and solely to the extent such costs were approved by United in writing in advance; and (iii) a point of contact and make a representative available on a limited basis in the United Airlines Stations Operations Center of each city in which a Hub Airport is located and at which the number of Departures in such city is less than [\*\*\*] in any 90 day period prior to the delivery of such request by United. United shall reimburse for Contractor for its reasonable documented incremental costs actually and incurred solely attributable to Contractor's compliance with United's request under this <u>paragraph (j)</u> and solely to the extent such costs were approved by United in writing in advance.

*Section 2.02 <u>Flight-Related Revenues</u>*. Contractor acknowledges and agrees that all revenues resulting from the sale and issuance of passenger tickets associated with the operation of the Covered Aircraft and all other sources of revenue associated with the operation of the Covered Aircraft, including revenues relating to United Directed Charter Flights, the transportation of cargo or mail, the sale of food, beverages and onboard entertainment, checked baggage fees, duty-free services, exterior and interior advertising and guaranteed or incentive payments from airport or Governmental Authorities, civic associations or other third parties in connection with scheduling flights to such airport or locality are the sole property of and shall be retained by United (or, if received by Contractor, shall be promptly remitted to United, free and clear of claims of any third party arising by, through or under Contractor or its affiliates). Contractor agrees that it shall reasonably cooperate with United so as to permit United to receive all revenues of the types described above.

*Section 2.03 <u>Pass and Reduced Rate Travel</u>*. Each party will comply with the terms of that certain United Express Interline Agreement Space Available Pleasure Travel Program. However, United has the right to retain all revenue generated from reduced rate travel, including companion passes, both on United and United Express operated flights. All pass travel and other non-revenue travel on any Scheduled Flight shall be administered in accordance with <u>Exhibit E</u>.

*Section 2.04 <u>Conversion of Aircraft Livery</u>*. If, at any time from time to time, United delivers a written request to Contractor for one or more Covered Aircraft to be prepared by Contractor in the livery as required by <u>Paragraph</u> <u>8</u> of <u>Exhibit</u> <u>G</u>, then Contractor and United shall consult in order to find a mutually agreeable timeline to prepare such Covered Aircraft in accordance with <u>Paragraph</u> <u>8</u> of <u>Exhibit</u> <u>G</u>. Prior to commencing any work and incurring any expenses in connection with this <u>Section</u> <u>2.04</u>, Contractor shall request United's written approval regarding the scope and anticipated reimbursable costs for such work and expenses (the work and expenses detailed in any such written approval from United, the "**<u>Approved Work Scope</u>**"), such approval not to be unreasonably withheld. Contractor agrees to consult with United in advance of performing work or incurring expenses with respect to additional work beyond the Approved Work Scope. Following the completion of such livery preparation, Contractor shall deliver an invoice identifying Contractor's actual, out-of-pocket costs incurred in compliance with the Approved Work Scope, and, reasonably promptly thereafter, United shall reimburse Contractor for any applicable costs incurred in compliance with this <u>Section</u> <u>2.04</u> set forth in such invoice as pass through costs pursuant to <u>Paragraph</u> <u>E</u> of <u>Schedule</u> <u>3</u>.

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*Section 2.05 <u>Non</u><u>-Discrimination</u> .* Contractor agrees that any schedule reduction requested by Contractor under this Agreement shall be [\*\*\*]. Notwithstanding the foregoing, nothing in this <u>Section</u> <u>2.05</u> shall be construed to grant Contractor any right to implement schedule reductions, or to request the reduction of scheduled flying, or to limit any rights of United in respect of any such implementation of, or request for, schedule reductions.

*Section 2.06* [\*\*\*]

*Section 2.07 <u>Diversions</u>*. United will pay Contractor for all diversions completed within [\*\*\*] of the scheduled arrival time based on the actual Block Hours flown from the original departure city to the diversion point and from the diversion point to the original destination city. A diversion flight will also be considered completed if the passengers arrive at the scheduled arrival city within [\*\*\*] of the scheduled arrival time via ground transportation from the diversion point to the original destination city. The cost of busing to the originally scheduled airport will be borne by Contractor. Contractor will use its best efforts to assure that no bus segment exceeds [\*\*\*]. United will pay Contractor for a diverted flight that is completed via ground transportation based on the original scheduled Block Hour time for that segment. In the event a diverted flight is not completed within the [\*\*\*] time frame, no payment is due for the diverted flight segment (e.g. flight segment will be excluded from the monthly operating statistics used in calculating payments to Contractor). In addition, United will [\*\*\*] related to diverted flight segments.

*Section 2.08 <u>Ground Delay Program</u>.* Subject to the applicable provisions set forth in <u>Schedule 3</u> as to the treatment of ground delay program cancellations, Contractor will participate in United's ground delay program, which stipulates that United may request Contractor to cancel, and Contractor shall cancel, flights to free ATC slots at a hub when the FAA or United's Station Control Center has initiated a Ground Delay Program ("**<u>GDP</u>**").

*Section 2.09 <u>Staffing</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) So long as Contractor has at all times complied in full with <u>Section</u> <u>2.05</u> and <u>Section</u> <u>2.09(b)</u>, the remedies provided in <u>Sections 2.01(d)</u>, <u>2.01(e)</u>, and <u>2.06</u> shall be the sole and exclusive remedies available to United in respect of Staffing Incapacity. For the avoidance of doubt, the foregoing sentence is not intended to and shall not be construed to modify, waive or restrict United's rights to exercise any remedies available at law or in equity for Contractor's breach of this Agreement for reasons other than Staffing Incapacity. Upon the request of any party from time to time, the parties shall use commercially reasonable efforts to meet and confer to consider alternative approaches to <u>Article II</u> submitted in good faith by the requesting party, including as may relate to optimizing Contractor's performance of Regional Airline Services under this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Until the first point in time in which Contractor has communicated (or deemed to have communicated) to United, in accordance with <u>Section</u> <u>2.01(c)(v)</u> that it does not have a Staffing Incapacity [\*\*\*], Contractor [\*\*\*]. Further, if, at any time from time to time, Contractor [\*\*\*]. Contractor and Parent hereby acknowledge and agree that the covenants contained in this <u>Section</u> <u>2.09(b)</u> are reasonable in scope and duration, do not unduly restrict Contractor's ability to conduct its business, and that United's execution and delivery of this Agreement has been induced by the covenants contained in this <u>Section</u> <u>2.09(b)</u>. Contractor and Parent acknowledge that a breach of such covenants would cause a loss to the United for which it could not reasonably or adequately be compensated by damages in an action at law, that remedies other than injunctive relief could not fully compensate the United for a breach of those covenants and that, accordingly, the United shall be entitled to injunctive relief to prevent any breach or continuing breaches of Contractor's covenants as set forth above in this <u>Section</u> <u>2.09(b)</u>. It is the intention of the parties that if, in any such action before any court empowered to enforce such covenants, any term, restriction, covenant, or promise is found to be illegal, invalid or unenforceable under any present or future law, then such term, restriction, covenant, or promise shall be deemed modified to the extent necessary to make it enforceable to the maximum extent permitted by applicable law.

**ARTICLE III** 

**CONTRACTOR COMPENSATION** 

*Section 3.01 <u>Base and Incentive Compensation</u>*. For and in consideration of the transportation services, facilities and other services to be provided by Contractor hereunder, United shall pay Contractor the base and incentive compensation as provided in <u>Paragraphs A</u> and <u>C</u> of <u>Schedule</u> <u>3</u> hereto, subject to the terms and conditions set forth in this <u>Article</u> <u>III</u>.

*Section 3.02 <u>Contractor Expenses</u>*. Except as provided otherwise in <u>Section</u> <u>3.03</u>, Contractor shall pay in accordance with commercially reasonable practices all expenses incurred in connection with Contractor's provision of Regional Airline Services.

*Section 3.03 United Expenses*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Certain Expenses</u>*. United shall incur directly those expenses relating to the Regional Airlines Services that are described in <u>Paragraph</u> <u>D</u> of <u>Schedule</u> <u>3</u> and shall be responsible for the pass through costs actually paid by Contractor, pursuant to <u>Paragraph</u> <u>E</u> of <u>Schedule</u> <u>3</u>. In addition, basic rent otherwise payable under any United Owned Aircraft Lease shall be [\*\*\*] as provided in and subject to <u>Section</u> <u>10.18(ii)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Design Changes</u>*. Contractor shall operate the Covered Aircraft in United livery and other brand standards. United will pay all incremental out-of-pocket costs incurred by Contractor arising from interior and exterior design changes to the Covered Aircraft (after their initial placement into service hereunder) and other product-related changes, including enhancements to United Quality of Service Practices, facility-related design changes and the cost of changes in uniforms and other livery; *provided, however*, that such incremental and out-of-pocket costs shall be reimbursable by United only if and to the extent that both (x) such requested changes are performed in the manner approved by United in writing in advance of being incurred, and (y) such requested changes and corresponding costs incurred are incremental and in addition to Contractor's normal aircraft and facility refurbishment program (including scheduled heavy maintenance).

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*Section 3.04 <u>Audit Rights; Financial Information</u>*. Contractor shall make available for inspection by United and its outside auditors and advisors, within a reasonable period of time after United makes a written request therefor, all of Contractor's books and records (including all financial and accounting records and operations reports, and records of other subsidiaries or affiliates of Contractor, if any), but specifically limited to those records as necessary to audit: (i) any payments made or amounts or setoff pursuant to this Agreement, (ii) costs or expenses for which United is obligated to pay directly or indirectly, pursuant to the terms of this Agreement, (iii) any information delivered by Contractor to United pursuant to <u>Article II</u>, including in connection with schedule reduction requests and Staffing Incapacity, (iv) any funds received as contemplated by <u>Section</u> <u>5.04</u>, and (v) Contractor's provision of Regional Airline Services to United or any of Contractor's other obligations under this Agreement, including relating to the performance, regulatory and operational standards in <u>Sections 4.01</u>, <u>4.02</u>, <u>4.04</u>, <u>4.05</u>, <u>4.10</u>, <u>4.11</u>, <u>4.12</u>, and <u>10.20</u>, (all such books and records, collectively, the "**<u>CPA Records</u>**"). Only to the extent reasonably necessary and in connection with United's audit rights under this <u>Section</u> <u>3.04</u>, United and its outside auditors shall be entitled to [\*\*\*]. Upon the reasonable written request of United or its outside auditors, Contractor will cooperate with United and its outside auditors to permit United and its outside auditors reasonable access to Contractor's outside auditors for purposes of reviewing such records. In addition, Contractor shall deliver or cause to be delivered to United (I) as soon as available, but in any event within [\*\*\*] after the end of each fiscal year, a copy of the consolidated balance sheet of Contractor, as at the end of such year, and the related consolidated statements of income and retained earnings and of cash flows of Contractor for such year, setting forth in each case in comparative form the figures for the previous year, reported on by an independent certified public accountants in good standing and unanimously approved by the members of Contractor's board of directors; and (II) as soon as available, but in any event not later than [\*\*\*] after the end of each of the first three quarterly periods of each fiscal year, the unaudited consolidated balance sheet of Contractor, as at the end of such quarter, and the related unaudited consolidated statements of income and retained earnings and of cash flows of Contractor for such quarter and the portion of the fiscal year through the end of such quarter, setting forth in each case in comparative form the figures for the previous year, certified by a responsible officer of Contractor, as being fairly stated in all material respects (subject to normal year-end audit adjustments); *provided*, that Contractor shall not be required to deliver financial statements pursuant to this sentence at any time that Contractor is a reporting issuer pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, and such financial statements are timely filed with the Securities and Exchange Commission pursuant thereto. All financial statements delivered hereunder shall be complete and correct in all material respects and shall be prepared in reasonable detail and in accordance with GAAP applied consistently throughout the periods reflected therein and with prior periods (except as approved by such accountants or officer, as the case may be, and disclosed therein). By delivering written notice to United from time to time, Contractor shall have the right to make reasonable requests to verify any calculations made solely by United under this Agreement*.* ****

*Section 3.05 <u>Billing and Payment; Reconciliation</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Billing and Payment</u>*. On the next Business Day after Contractor receives the Final Monthly Schedule from United pursuant to <u>Section</u> <u>2.01(c)</u>, Contractor shall present a reasonably detailed written invoice for amounts due under this Agreement in respect of the Base Compensation for the Scheduled Flights during the month to which

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such Final Monthly Schedule pertains. United shall pay Contractor the amount due under such invoice (the "**<u>Invoiced Amount</u>**"), subject to United's right to dispute any calculations set forth on such invoice that do not comply with the terms of this Agreement, and net of amounts owed by Contractor to United, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) [\*\*\*] of the Invoiced Amount shall be payable by United to Contractor, by electronic transfer of funds to a bank account designated by Contractor, available on or before the first Wednesday of the month (or if such day is not a Business Day, the next Business Day) to which such invoice relates, as adjusted by <u>Section</u> <u>3.05(b)</u> below;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) [\*\*\*] of the Invoiced Amount shall be payable by United to Contractor, by electronic transfer of funds to a bank account designated by Contractor, available on or before the second Wednesday of the month (or if such day is not a Business Day, the next Business Day) to which the invoice relates, as adjusted by <u>Section</u> <u>3.05(b)</u> below;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) [\*\*\*] of the Invoiced Amount shall be payable by United to Contractor, by electronic transfer of funds to a bank account designated by Contractor, available on or before the third Wednesday of the month (or if such day is not a Business Day, the next Business Day) to which the invoice relates, as adjusted by <u>Section</u> <u>3.05(b)</u> below; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) [\*\*\*] of the Invoiced Amount shall be payable by United to Contractor, by electronic transfer of funds to a bank account designated by Contractor, available on or before the fourth Wednesday of the month (or if such day is not a Business Day, the next Business Day) to which the invoice relates, as adjusted by <u>Section</u> <u>3.05(b)</u> below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Monthly True-Up</u>*. Not later than [\*\*\*] following the end of each month, Contractor and United shall determine the net amount due to Contractor for such month (the "**<u>Net Monthly Payment Amount</u>**") after taking into account all of the payments to which Contractor is entitled, as well as all of the credits to which United is entitled, in each case pursuant to the terms and conditions set forth in <u>Schedule</u> <u>3</u>. As applicable, (i) if the Net Monthly Payment Amount is positive, then United shall pay such amount to Contractor on or before the [\*\*\*] following the end of the month applicable to the Net Monthly Payment Amount (or if such day is not a Business Day, the next Business Day), or (ii) if the Net Monthly Payment Amount is negative, then the absolute value of such amount shall, at United's election exercisable in its sole discretion by delivery of written notice to Contractor, either (x) be paid by Contractor to United or (y) set off by United against any other amounts owed by United to Contractor under this Agreement or any Ancillary Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>Discrepancy Escalation.</u>* In the event that any reconciliation under this <u>Section</u> <u>3.05</u> is disputed and remains unresolved as between Contractor and United beyond the date that is [\*\*\*] after the due date of any such Net Monthly Payment Amount, such dispute shall be escalated to a meeting of the Directors of Finance of both United and the

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Contractor. Should such dispute continue beyond the date that is [\*\*\*] after the due date of such Net Monthly Payment Amount, such dispute shall be escalated to a meeting of [\*\*\*]. Should such dispute continue to remain unresolved beyond the date that is [\*\*\*] after the due date of such Net Monthly Payment Amount, such dispute shall be escalated to a meeting of [\*\*\*].

*Section 3.06* [\*\*\*]

*Section 3.07 <u>Reports</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Monthly Reports</u>*. Contractor will furnish to United within [\*\*\*] after the end of each month a detailed report of its operating performance for such month, which report will include information on Contractor's performance during the preceding month for each of the items designated by United from time to time as required to be included in such monthly report, including regarding operating performance standards, aircraft appearance, boarding information, engine fleet configuration (on an Engine by Engine and aircraft by aircraft basis), forecasted changes in Engine placement, and actual changes in Engine placement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Annual Engine Reports</u>*. Contractor will provide, no later than [\*\*\*] following the end of each calendar year, a written report providing reasonable detail and supporting documentation regarding all changes in Engines for such year (including ESN, Installation date, removal date, ETT, ETC, TSL, CSI at time of removal, Planned or unplanned, scheduled or unscheduled, and removal reason), including, for each Engine, the number of hours since the most recent performance restoration for such Engine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>Accidents and Incidents</u>*. Promptly following the preparation thereof, Contractor will promptly furnish United with a copy of every final report that Contractor prepares, whether or not such report is filed with the FAA, NTSB or any other governmental agency, relating to any accident or incident involving an aircraft used by Contractor pursuant to this Agreement, when such accident or incident is claimed to have resulted in the death or injury to any person or the loss of, major damage to or destruction of any property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *<u>Denied Boardings</u>*. Upon United's request from time to time, Contractor will provide promptly, but not later than [\*\*\*] following any such request, station-specific best estimates regarding weight restrictions and aircraft limitations which could reasonably be expected to routinely result in denied boardings. If Contractor fails to respond to any such request, or if Contractor's responses are materially inaccurate or inadequate, then United shall have the right, exercisable in its sole discretion, to require Contractor to reimburse United for denied boarding expenses attributable to weight restrictions relating to any such failure to respond, inaccuracy, or inadequacy.

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**ARTICLE IV** 

**CONTRACTOR OPERATIONS AND AGREEMENTS WITH UNITED** 

*Section 4.01 <u>Governmental Regulations; Maintenance</u>*. Contractor has, or, in the case of New E175LR Tranche 1 Covered Aircraft, will have not later than [\*\*\*] prior to the first Scheduled In-Service Date of a Covered Aircraft hereunder, and shall maintain thereafter, all certifications, permits, licenses, certificates, exemptions, approvals, plans, and insurance required by Governmental Authorities and airport authorities, including FAA, DOT and TSA, to enable Contractor to perform the Contractor Services. All flight operations, dispatch operations, maintenance and all other operations and services undertaken by Contractor pursuant to this Agreement shall be conducted, operated and provided by Contractor in compliance with all governmental laws, regulations and requirements of applicable Governmental Authorities and airport authorities (foreign and domestic), including those relating to airport security, the use and transportation of Hazardous Materials and dangerous goods, crew qualifications, crew training and crew hours, the carriage of persons with disabilities, and passenger/bag weight programs, and without any violation of U.S. or foreign laws, regulations or governmental prohibitions. Contractor shall exercise overall operational control of, and remain responsible for, the airworthiness, safe operation, and maintenance of, all Covered Aircraft. Without limiting Contractor's obligations under any United Owned Aircraft Lease, all Covered Aircraft shall be operated and maintained by Contractor in compliance with all laws, regulations and governmental requirements or applicable Governmental Authorities and airport authorities (foreign and domestic), Contractor's own operations manuals and maintenance manuals and procedures, all applicable provisions of any aircraft lease, mortgage or sublease, and all applicable equipment manufacturers' manuals, instructions, airworthiness directives and service bulletins. Contractor shall provide United with prompt notice of any Covered Aircraft that are unavailable to provide Scheduled Flights for purposes of unscheduled maintenance. Upon any issuance by the FAA of an airworthiness directive or change in regulation requiring Contractor to make capital improvements to any Covered Aircraft, or upon Contractor's receipt of written instructions from United to make modifications to any Covered Aircraft, (i) prior to making any investment or modification, Contractor will consult with United and agree upon the reasonable costs of such capital improvements or modifications, (ii) Contractor shall pay for such capital improvements or modifications, and (iii) upon completion of such capital improvements or modifications with respect to the Covered Aircraft, United shall reimburse Contractor for the agreed-upon costs of such capital improvements or modifications as a pass through cost pursuant to <u>Paragraph</u> <u>E</u> of <u>Schedule</u> <u>3</u>. In connection with any capital improvements to any Covered Aircraft, Contractor shall [\*\*\*]. In connection with any grounding of any of the Covered Aircraft, Contractor shall [\*\*\*].

*Section 4.02 <u>Quality of Service</u>*. Without limiting Contractor's operational control of all aspects of its flight operations, United procedures, performance standards and means of measurement thereof concerning the provision of air passenger and air cargo services shall be applicable to all Regional Airline Services provided by Contractor; *provided* that all such procedures and means of measurement shall be no more stringent than those used by United with respect to the performance of all other operators of regional aircraft for United. Contractor shall achieve at least the comparable quality of airline service and standards of care as provided by United or generally required by United of the Other United Express Carriers, subject to limitations imposed by the type of aircraft used by Contractor and its route network. Contractor shall comply with all airline customer service commitments and policies of United as of the date hereof, including "Our United Customer Commitment", and employee conduct, appearance and training policies in place as of the date hereof, and shall handle customer-related services in a professional, businesslike and courteous manner. In connection therewith, Contractor shall maintain aircraft cleaning cycles and policies, shall comply with the provisions set forth in <u>Exhibit</u> <u>J</u>, and without limiting <u>Article II</u>, shall maintain adequate staffing levels, to ensure at least a comparable level of

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customer service and operational efficiency that United achieves or generally requires of the Other United Express Carriers, including in respect of customer complaint response and boarding timing, and handling of irregular operations. In addition, at the request of United, Contractor shall comply with all such airline customer service commitments, policies and standards of care of United as adopted, amended or supplemented after the date hereof. As necessary, United will provide training to Contractor's designated instructors in the requirements of United's customer service policies and Procedures and customer problem resolution programs; *provided* that United will [\*\*\*], and United agrees that [\*\*\*]. Contractor shall ensure that all Covered Aircraft are equipped with an aircraft communications system addressing and reporting system that provides operational information in a form acceptable to United. Additionally, in the event that United requires Contractor to deliver any incremental training to its employees, United will reimburse Contractor for any incremental direct costs incurred as a result of providing such training provided that United has approved such costs in writing prior to such costs being incurred. Contractor shall provide United with timely communication regarding the status of all Scheduled Flights, and shall perform closeout procedures at service levels at least as high as those of United at comparably-sized airports. Contractor shall ensure that all Scheduled Flights are capable of operating in Category 2 Conditions. Contractor will use United's standard procedures for processing and adjudicating all claims for which Contractor is responsible in an effort to avoid such matters becoming the subject of claims, litigation or an investigation by a governmental agency or authority. At either party's request, Contractor and United will meet to discuss and review Contractor's customer service and handling procedures and policies and its employees' conduct, appearance and training standards and policies. United shall give Contractor not less than [\*\*\*] prior written notice which notice identifies specifically the quality of service failures asserted by United and provides Contractor with an opportunity to cure of any non-safety related breach of this <u>Section</u> <u>4.02</u> prior to exercising any remedy regarding such breach. Contractor acknowledges that United may implement programs to evaluate the delivery of customer service and adherence to customer service standards established by United and Contractor hereby agrees to [\*\*\*]. Contractor also agrees to participate in the United Cargo Program.

*Section 4.03 <u>Incidents or Accidents</u>*. Contractor shall promptly notify United of all irregularities involving a Scheduled Flight or Covered Aircraft operated by Contractor, including aircraft accidents and incidents, which result in any damage to Persons and/or property or may otherwise result in a complaint or claim by passengers or an investigation by a governmental agency or authority. Contractor shall furnish to United as much detail as practicable concerning such irregularities and shall cooperate with United at Contractor's own expense in any appropriate investigation.

*Section 4.04 <u>Emergency Response</u>*. Contractor shall adopt United's Emergency Response Plan for aircraft accidents or incidents involving a Covered Aircraft or Scheduled Flight. In the event of an accident or incident involving a Covered Aircraft or Scheduled Flight, United and Contractor agree to work together in a combined and coordinated emergency response, as outlined in the parties' Emergency Response Agreement (United Contract No. 165981) (and the parties shall abide by the applicable terms and conditions set forth therein *mutatis mutandis* as if the reference therein to the "United Express Agreement" were instead a reference to this Agreement).

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*Section* 4.05 *<u>Safety Matters</u>*. Contractor hereby represents, warrants and covenants that all air transportation services performed by it pursuant to this Agreement or otherwise will be conducted in full compliance with all applicable statutes, orders, rules and regulations, whether now in effect or hereafter promulgated, of all governmental agencies having jurisdiction over Contractor's operations, including, but not limited to, the Federal Aviation Administration ("**<u>FAA</u>**") and the Department of Transportation ("**<u>DOT</u>**"). Contractor's compliance with such governmental statutes, orders, rules and regulations will be the sole and exclusive obligation of Contractor and United will have no obligation, responsibility or liability, whether direct or indirect, with respect to such matters except as otherwise expressly provided herein. Additionally, Contractor will comply during the term of this Agreement with the United/United Express Safety Standards, as described on <u>Exhibit O</u>. Contractor represents and warrants that it has successfully undergone an International Air Transport Authority ("**<u>IATA</u>**") Operational Safety Audit ("**<u>IOSA</u>**"). Contractor hereby covenants (i) to maintain its membership in the IOSA registry and (ii) to comply and maintain compliance with the requirements of IOSA audits within the timeframe required by IATA. Contractor shall bring any failure to maintain compliance immediately to United's attention along with corrective actions taken or a corrective action plan. Although the IOSA audit is to be completed biennially, United in its sole discretion may require, and Contractor shall comply with, additional safety review audits, the costs of which will be reimbursed by United as pass through costs pursuant to <u>Paragraph</u> <u>E</u> of <u>Schedule</u> <u>3</u>. Nothing in <u>Exhibit</u> <u>O</u>, this <u>Section</u> <u>4.05</u>, or otherwise in this Agreement is intended or shall be interpreted to make United responsible for such safety matters.

*Section 4.06 <u>Codeshare Terms</u>*. Contractor agrees to operate all Scheduled Flights using the United flight code and flight numbers assigned by United, or such other flight codes and flight numbers as may be assigned by United (to accommodate, for example, a United alliance partner), and otherwise under the codeshare terms set forth in <u>Exhibit</u> <u>D</u>, and to cooperate reasonably with United to implement any modifications to the foregoing from time to time.

*Section 4.07 <u>Slots and Route Authorities</u>*. Contractor is required to participate in CORA and United will be responsible for slot management of Contractor's United Express flights. Only with respect to any takeoff or landing slots transferred to Contractor by United, at the request of United made during the Term or upon termination of this Agreement, Contractor shall use its commercially reasonable efforts to transfer to United or its designee, to the extent permitted by law, any airport takeoff or landing slots, route authorities or other similar regulatory authorizations that were previously transferred to Contractor by United at no cost to Contractor and which were used in connection with Scheduled Flights (it being acknowledged that there is no obligation of Contractor to purchase any slot, authority, or authorization for Scheduled Flights). Contractor's obligations pursuant to the immediately preceding sentence shall survive the termination of this Agreement for so long as any transfer requested pursuant to this <u>Section</u> <u>4.07</u> shall not have been completed. For the avoidance of doubt, the provisions of this <u>Section</u> <u>4.07</u> shall not apply to any takeoff or landing slots, route authorities or other similar regulatory authorizations owned by Contractor (and which were not previously transferred to Contractor by United), regardless of whether such takeoff or landing slots, route authorities or other similar regulatory authorizations are being used in connection with the provision of Regional Airline Services by Contractor under this Agreement, and such Contractor-owned takeoff and landing slots, route authorities or other similar regulatory authorizations shall remain the sole property of Contractor.

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*Section 4.08 <u>Use of United Marks</u>*. United hereby grants to Contractor the non- exclusive and non-transferable rights to use the United Marks and other Identification as provided in, and Contractor shall use the United Marks and other Identification in accordance with the terms and conditions of, <u>Exhibit</u> <u>G.</u> It is acknowledged and agreed that United may from time to time substitute other marks for the United Marks and in such instance the provisions of this <u>Section</u> <u>4.08</u> shall apply with full effect to any such substituted marks. As an example of the foregoing, it is agreed that United has advised Contractor that the livery of the Covered Aircraft shall initially be in "United Express" livery, as contemplated by <u>Exhibit</u> <u>G.</u>

*Section 4.09 <u>Use of Contractor Marks</u>*. Contractor hereby grants to United the non-exclusive and non-transferable rights to use the Contractor Marks as provided in, and United shall use the Contractor Marks in accordance with the terms and conditions of, <u>Exhibit</u> <u>H</u>.

*Section 4.10 <u>Catering Standards</u>*. United and Contractor shall comply with the catering requirements set forth on <u>Exhibit</u> <u>I</u> hereto.

*Section 4.11 <u>Fuel Efficiency Program</u>*. Contractor shall use commercially reasonable efforts to promptly adopt and adhere to a fuel efficiency program as described on <u>Exhibit</u> <u>L</u> hereto and United agrees to reimburse Contractor for any United Fuel Efficiency Expenses. Contractor shall implement any incentive program that United requests to be implemented where United agrees in writing to pay [\*\*\*].

*Section 4.12 <u>Engine Costs; Engine LLP Costs</u>*. Notwithstanding anything to the contrary in this Agreement, [\*\*\*]. With respect to Engine LLP on each Engine, United shall pay Contractor [\*\*\*]. United shall reimburse Contractor for [\*\*\*]. In the event of a Foreign Object Damage ("**<u>FOD</u>**") or similar damage to an Engine LLP that significantly shortens the original expected life of the Engine LLP, United will [\*\*\*]. For the avoidance of doubt, the obligation for United to pay Contractor [\*\*\*].

*Section 4.13 <u>Unauthorized Payments</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In connection with any performance under this Agreement, neither Contractor, nor any officer, employee, or agent of Contractor, will make any payment, or offer, promise, give or authorize any payment, of any money or other article of value, to any official, employee, or representative of United or any government official or representative, or to any Person or entity doing business with United, in order either to obtain or retain business under this Agreement, or to direct United's business under this Agreement to a third party, or to influence any act or decision of any employee or representative of United as pertaining to this Agreement or any government official or representative to perform or to fail to perform his or her duties, in each case, under this Agreement, or to enlist the aid of any third party to do any of the foregoing. The parties agree that incidental expenses incurred for business meetings, meals and other minor business related expenses shall not, in each case, violate this paragraph ("**<u>Permitted Actions</u>**").

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In connection with any performance under this Agreement, neither Contractor, nor any officer, employee, or agent of Contractor, will solicit or receive any amount of cash or negotiable paper, or any item, service or favor of value (a "gift") from United. Contractor will refuse to accept all such gifts and, if received, will return such gifts to the donor. In all such cases Contractor will notify United promptly of such gift or offer thereof. If United deems it necessary, Contractor will turn over such gifts to United for further handling. The parties agree that Permitted Actions shall not violate this paragraph.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In connection with any performance under this Agreement, Contractor will at all times comply fully with all of the terms and provisions of the Foreign Corrupt Practices Act (15 U.S.C. §§ 78dd-1, et seq.) and any related or successor statute, regulation, or governmental directive regarding payments to foreign nationals or other Persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Contractor hereby certifies and represents that no inducements of monetary or other value were offered or given to any United officer, employee or agent, except as is stated in writing to the United official designated to sign this Agreement or except as otherwise stated in this Agreement, prior to execution of this Agreement. Contractor further certifies and represents no official, employee or agent of Contractor shall receive or has received any inducement of monetary or other value from any vendor or contractor of United or has a significant ownership or other interest in a vendor or contractor of United which is or could be perceived by a reasonable person as a conflict of interest, except as is stated in writing to the United official designated to sign this Agreement, prior to execution. The parties agree that Permitted Actions shall not violate this paragraph.

*Section 4.14 <u>Environmental</u>*(a) Contractor shall conduct its operations in a prudent manner, taking reasonable preventative measures to avoid liabilities under any Environmental Laws or harm to human health or the environment, including measures to prevent unpermitted releases of Hazardous Materials to the environment, adverse environmental impacts to on- site or off-site properties and the creation of any public nuisance. If, in the course of conducting services under this Agreement, Contractor encounters adverse environmental conditions that could reasonably be expected to give rise to liability for United or Contractor under any Environmental Laws or which otherwise could reasonably be expected to result in harm to human health or the environment, Contractor shall promptly notify United of such conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Contractor shall, at its own expense, conduct its operations in compliance with applicable Environmental Laws, including obtaining any needed permits or authorizations for Contractor's operations. If United provides any information, instruction, or materials to Contractor relating to its obligations under any Environmental Laws, Contractor agrees that this shall not in any way relieve Contractor of its obligation to comply with Environmental Laws; *provided* that United shall use commercially reasonable efforts to avoid giving any such information, instruction, or materials to Contractor that conflict with Environmental Law and provided further that Contractor shall not be deemed to be in breach of this Agreement if Contractor does not follow such information, instruction or material if in Contractor's reasonable judgment such information, instruction or material violates Environmental Laws. Contractor further agrees that it shall otherwise preserve the proprietary nature of any such information that is identified by United as proprietary and confidential and shall use its commercially reasonable efforts to ensure that the information is not disclosed to any third parties (other than disclosures required by applicable law, rule or regulation) without first obtaining the written consent of United.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Contractor shall use its commercially reasonable efforts to perform its services under this Agreement so as to minimize the unnecessary generation of waste materials, including consideration of source reduction and re-use or recycling options, and coordination with United on a cabin service recycling program. If requested by United, Contractor shall replace specific products used in its operations with less toxic products, as long as such requested changes do not unreasonably interfere with Contractor's operations, burden Contractor with additional cost, and there is a reasonable replacement available at a similar cost, or if the product is not at a similar cost, provide United the option to agree to pay the difference. If requested by United, Contractor shall take reasonable efforts to provide quantitative data on materials recycled and waste disposed to facilitate coordination and enhancement of cabin service recycling where feasible. Contractor shall ensure that any waste materials generated in connection with the services performed by Contractor under this Agreement are managed in accordance with all applicable Environmental Laws, with Contractor assuming responsibility as the legal generator of such wastes; *provided*, *however*, this provision does not apply should United or another vendor of United be the entity who has, in fact, independently generated the wastes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) For any leased areas or other equipment that are jointly used or operated by Contractor and United (and/or other United contractors), Contractor and United shall use their respective commercially reasonable efforts to coordinate its activities with United and/or United contractors and otherwise perform such activities to ensure compliance with applicable Environmental Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Except for de minimis amounts of Hazardous Materials which are immediately and fully remediated to pre-existing conditions, Contractor shall promptly notify United of any spills or leaks of Hazardous Materials arising out of Contractor's provision of services under this Agreement, and, if requested, shall provide copies to United of any written reports provided by Contractor or on Contractor's behalf to any governmental agencies and airport authorities under any Environmental Laws regarding same. Contractor shall promptly undertake all reasonable commercial actions to remediate any such spills or leaks to the extent Contractor is required to do so by applicable Environmental Laws, by the relevant airport authority, or in order to comply with a lease obligation. In the event that Contractor fails to fulfill its remediation obligations under this paragraph and United may otherwise be prejudiced or adversely affected as a result of such failure (such as involving United leased property), United may undertake such actions as are reasonable at the cost and expense of Contractor. Such costs and expenses shall be promptly paid upon Contractor's receipt of a written request for reimbursement for them by United. For the avoidance of doubt, nothing in this <u>Section</u> <u>4.14(e)</u> will limit Contractor's rights or remedies under <u>Section</u> <u>7.02</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Contractor shall promptly provide United with written copies of any notices of violation issued or other claims from a third party asserted pursuant to Environmental Laws or associated with a potential release of Hazardous Materials and related to or associated with the provision of services by Contractor under this Agreement. Contractor shall promptly undertake all actions necessary to resolve such matters, including the payment of fines and penalties, and promptly addressing any noncompliance identified; *provided*, *however*, that Contractor may contest any notice of violation or other alleged

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violation and defend any claim that it believes is untrue, improper or invalid. In the event that Contractor fails to fulfill its obligations under this paragraph and United may otherwise be prejudiced or adversely affected, United may undertake such actions as are reasonable or legally required at the cost and expense of Contractor. Such costs and expenses shall be promptly paid upon Contractor's receipt of a written request for reimbursement for them by United. For the avoidance of doubt, nothing in this <u>Section</u> <u>4.14(f)</u> will limit Contractor's rights or remedies under <u>Section</u> <u>7.02</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) If requested by United, Contractor shall conduct a review and provide information to United regarding Contractor's compliance with the requirements of this <u>Section</u> <u>4.14</u>. Such review will not be required more frequently than once each year unless there are circumstances that warrant an additional review as reasonably determined by United after consultation with Contractor. This review may include the completion of an environmental compliance audit of Contractor's activities or an environmental site assessment, each subject to a work plan approved by United, such approval not to be unreasonably withheld. Contractor shall provide United with a summary of the results of this audit, provide United an opportunity to review any report generated in connection with such an audit, and will promptly use its commercially reasonable efforts to address any noncompliance or liability identified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) In the event that Contractor Services include providing bulk (non-bottled) potable water for crew or passenger consumption, Contractor shall ensure compliance with the Aircraft Drinking Water Regulation, FDA requirements, and other similar applicable laws (collectively, the "**<u>Drinking Water Requirements</u>**"), including using its commercially reasonable efforts to ensure that all water handling equipment is properly and regularly disinfected and kept in sanitary condition. If Contractor relies upon another contractor to load water onto its aircraft or to maintain water handling equipment, it shall inquire with such contractors to ensure they meet these Drinking Water Requirements as well. Contractor shall notify United as soon as practicable if it becomes aware of practices or conditions that may reasonably be expected to negatively impact potable water quality, regardless of the provider or the source of such potable water (including whether such source is an airport, ground handler or aircraft water system). Contractor shall maintain records relating to its compliance with Environmental Laws under this Agreement for the longer of three years or such period of time as is required by Environmental Laws. Contractor shall, at the request of United and with reasonable advance notice, provide United with reasonable access to Contractor's operations, documents, and employees for the sole purpose of allowing United to assess Contractor's compliance with its obligations with this <u>Section</u> <u>4.14</u>, including responding to reasonable information requests. Upon the termination of operations at a space used to support the provision of Contractor Services under this Agreement, Contractor shall use its commercially reasonable efforts to ensure the removal and proper management of any and all Hazardous Materials associated with Contractor's operations (including its subcontractors) and will comply with any other applicable Environmental Laws applicable to the provision of Contractor Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Contractor has reviewed United's Environmental Commitment Statement (found at https://www.united.com/ual/en/us/fly/company/global-citizenship/environment.html) and agrees to use commercially reasonable efforts to cooperate with United in meeting these commitments in effect as of the date hereof and in responding to reasonable information requests.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Contractor shall be responsible for and will indemnify, defend, and hold harmless United, including its officers, agents, servants and employees, from and against any and all claims, liabilities, damages, costs, losses, penalties, and judgments, including costs and expenses incident thereto under Environmental Laws or due to the release of a Hazardous Material, which may be suffered or incurred by, accrue against, be charged to, or recoverable from United or its officers, agents, servants and employees arising out of an act or omission of Contractor (or its subcontractor) related to Contractor's provision of services under this Agreement, except to the extent the foregoing are caused by (A) the acts or omissions of a fuel service vendor where such fuel service is contracted by United to perform fueling services for Covered Aircraft used in United Express Service under this Agreement and (B) the reckless or willful misconduct, or gross negligence, of United, its officers, or employees. Notwithstanding anything to the contrary set forth in this Agreement, such damages may include the payment of consequential, special or exemplary damages for claims under Environmental Laws or due to the release of Hazardous Materials to the extent an applicable lease agreement, sublease or other similar agreement requires the payment of such damages. Any indemnification claims arising under this <u>Section</u> <u>4.14(j)</u> shall be administered pursuant to the procedures set forth in <u>Section</u> <u>7.03</u> hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) All notices to be provided by Contractor to United under this <u>Section</u> <u>4.14</u> shall be provided as indicated in <u>Section</u> <u>10.02</u> of this Agreement, with a copy to Managing Director–Environmental Affairs, United Airlines, Inc., 233 South Wacker Drive-WHQSE, Chicago, IL 60606.

*Section 4.15 <u>Lease, Use and Modification of Airport Facilities</u>*. United and Contractor agree that United shall at its direction provide all Terminal Facilities at all Applicable Airports for use by Contractor for the provision of Regional Airline Services. United agrees to take commercially reasonable efforts to place crew rooms, maintenance personnel and parts in the Terminal Facilities, to the extent available, at which Contractor performs Regional Airline Services, and United and Contractor acknowledge that United is currently providing such Terminal Facilities to Contractor.

*Section 4.16 <u>Fuel Procurement and Fuel Services</u>*(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) United and Contractor agree that United shall, at its direction, provide all Fuel Services for use by Contractor for the provision of Regional Airline Services. United and Contractor acknowledge that United is currently providing such Fuel Services to Contractor. The parties will cooperate in identifying (i) fuel savings opportunities, (ii) providers of aircraft fuel and (iii) providers of Fuel Services. Prior to Contractor entering into agreements with any such providers as shall be directed by United to provide fuel services for more than [\*\*\*] (or as ratably adjusted in the event that the Covered Aircraft fleet is amended following the Effective Date) of fuel consumed for the operation of the Covered Aircraft, United and Contractor shall discuss in good faith the allocation of procurement of such fuel services. Contractor shall provide any data or analysis of its fuel procurement and Fuel Services as reasonably requested by United.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The costs of such procurement, or such arranging for procurement of aircraft fuel, as applicable (in each case including the cost of procuring the aircraft fuel) shall be [\*\*\*]. If United so directs, then Contractor shall procure, or arrange for the procurement of aircraft fuel, and such costs shall be [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) United and Contractor acknowledge and agree that any fuel provided to Contractor pursuant to an agreement between United and a fuel supplier is provided "as is" and without warranty of any kind, including the warranties of merchantability and fitness for a particular purpose, by, through or under United, and that no warranties by, through or under United shall be implied by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) United and Contractor acknowledge and agree that any aircraft fuel procured, or arranged for procurement, for on behalf of Contractor by United shall not be deemed to have been procured, purchased or otherwise acquired for on behalf of Contractor, and Contractor shall in no event have any claim to or interest in, any fuel procured by United or its agents, unless and until such fuel is delivered into a Covered Aircraft, except as otherwise may be provided in a Fuel Services agreement, if any, between United and Contractor.

*Section 4.17 <u>Ground Handling</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) United shall provide or cause to be provided Ground Handling Services for all Scheduled Flights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All expenses for Ground Handling Services shall be incurred directly by United, pursuant to <u>Paragraph</u> <u>D(6)</u> of <u>Schedule</u> <u>3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Contractor shall cooperate in all reasonable respects with any ground handling provider(s) as shall be directed by United. In addition, at United's direction, mainline ground support equipment ("**<u>GSE</u>**") and GSE processes shall be used in connection with Contractor's performance of Regional Airlines Services; *provided* that such GSE and GSE processes shall be modified to be compatible with the Covered Aircraft if necessary, such determination to be made by United.

*Section 4.18 <u>Flight Crews</u>*. All of the Regional Airline Services to be performed by Contractor will be operated with crews consisting of a captain or pilot, and a first officer or co-pilot. Contractor will ensure that all such crew members, as well as all flight attendants, will at all times meet all currently applicable governmental requirements and remain fully licensed and qualified for the services to be performed under this Agreement. In addition, Contractor will ensure that each of Contractor's captains will hold a current Airline Transport Pilot Certificate and that an adequate number of flight crews will be qualified to fly between all city pairs that Contractor is required to serve pursuant to this Agreement. Contractor will also ensure that all flight crew members will meet all requirements imposed by the insurance policies set forth in <u>Article VI</u>.

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*Section 4.19* [\*\*\*]

*Section 4.20 <u>Uniforms; ALPA Letter Observance</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Contractor, at its own expense, shall pay for and require all of its flight crews, defined as all pilots, first officers, and flight attendants who provide Contractor's Regional Airline Services, to wear uniforms which are in the United Express colors and styles, as approved by United, such approval not to be unreasonably withheld or delayed, while performing Contractor Services. Contractor agrees that all flight crews employed by Contractor shall wear the above-described uniforms while performing Regional Airline Services. Any other employees of Contractor who are visible to the public will wear uniforms reviewed and approved by United, which approval shall not be unreasonably withheld. If United develops or designs new uniforms for United Express operations, then United will reimburse the reasonably documented incremental costs actually incurred by Contractor that are solely attributable to the implementation of such new uniforms; provided that such reimbursement obligation will only be applicable to costs approved in advance in writing by United.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) [\*\*\*]

*Section 4.21 <u>Operations Specifications Certificate</u>*. Contractor shall add each Covered Aircraft set forth on <u>Schedule</u> <u>1</u> as of the Effective Date (to the extent not already on Contractor's operations specifications certificate), or added to <u>Schedule</u> <u>1</u> from time to time thereafter (as shall be mutually agreed by Contractor and United), to Contractor's operations specifications certificate as soon as reasonably practicable and, with respect to the E175 Covered Aircraft, in no event later than [\*\*\*] before the Scheduled In-Service Date for each such aircraft set forth on <u>Schedule</u> <u>1</u>. Contractor shall maintain operating authority with respect to North America (including Mexico and Canada) on its operations specifications at all times during the Term.

*Section 4.22 <u>Information Technology</u>*. At all times during the Term, Contractor shall use commercially reasonable efforts to maintain its information technology infrastructure [\*\*\*]. Contractor shall comply with the United's information technology incident, problem and change management processes in effect as of the Effective Date, along with the Cyber Data Risk Requirements attached hereto as <u>Exhibit T</u> [\*\*\*].

*Section 4.23* [\*\*\*]

**ARTICLE V** 

**CERTAIN RIGHTS OF UNITED** 

*Section 5.01 <u>Use of Covered Aircraft</u>*. Contractor agrees that, except as otherwise directed by United in accordance with the terms and conditions of this Agreement, the Covered Aircraft (other than Covered Aircraft that are Spare Aircraft which may be used as provided in <u>Section</u> <u>2.01(i)</u>), may be used only to provide Regional Airline Services. Without the written consent of United, the Covered Aircraft may not be used by Contractor for any other purpose, including flying for any other airline or on Contractor's own behalf.

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*Section 5.02 <u>No Operation Outside Agreement, Charters</u>*. Without prior written consent of United, Contractor will not use any of the services (excluding maintenance service) afforded to Contractor by United to provide air transportation or related services to other carriers or affiliates of Contractor. Under no circumstances will Contractor be permitted to operate aircraft bearing the United Marks in city pairs other than those marks specified by United pursuant to <u>Section</u> <u>4.08</u>, without the prior written consent of United.

*Section 5.03 <u>Change of Control</u>*. Upon the occurrence of a Change of Control without the prior written consent of United, the provisions of <u>Section</u> <u>8.02(e)</u> shall apply. Notwithstanding the foregoing, a "Change of Control" shall not include any merger of Contractor with or into any direct or indirect wholly owned Subsidiary of Contractor or Parent, regardless of whether Contractor, such Subsidiary or Parent is the surviving entity; *provided*, that if any such Subsidiary is not a direct Subsidiary of Parent, then each Subsidiary in the chain of ownership between Parent and Contractor's successor shall be directly or indirectly wholly-owned by Parent and shall have executed a guarantee in the form of <u>Exhibit Q</u> concurrently with such merger; and *provided further* that such successor to Contractor shall have assumed all of Contractor's obligations arising under this Agreement, whether by operation of law or otherwise.

*Section 5.04* [\*\*\*]

**ARTICLE VI** 

**INSURANCE AND TAXES** 

*Section 6.01 <u>Minimum Insurance Types</u>*. During the Term, in addition to any insurance required to be maintained by Contractor pursuant to the terms of any aircraft lease (including each United Owned Aircraft Lease), or by any applicable governmental airport authority, Contractor shall maintain, or cause to be maintained, in full force and effect policies of insurance with insurers of recognized reputation and responsibility, in each case to the extent available on a commercially reasonable basis, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Comprehensive aircraft hull and liability insurance, including aircraft third party, passenger liability (including passengers' baggage and personal effects), cargo and mail legal liability, and all-risk ground and flight physical damage, with a combined single limit of not less than the greater of (i) [\*\*\*] per occurrence and (ii) the highest single limit per occurrence of any aircraft hull and liability insurance maintained by Contractor under any other capacity purchase arrangement, and a minimum limit in respect of personal injury for non-passengers (per clause AVN 60 or its equivalent) of [\*\*\*] per occurrence and in the aggregate, and war risk hull and liability insurance as provided by the FAA program or by commercial providers of such insurance with a combined single limit no less than the greater of (i) [\*\*\*] per occurrence and (ii) the highest single limit per occurrence of any war risk hull and liability insurance maintained by Contractor under any other capacity purchase arrangement;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Workers' compensation as required by the appropriate jurisdiction and employer's liability with a limit of not less than [\*\*\*] combined single limit; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Other property and liability insurance coverages of the types and in the amounts that would be considered reasonably prudent for a business organization of Contractor's size and nature, under the insurance market conditions in effect at the time of placement, but in any event of the type and the amount that United may reasonably require to prevent or minimize a disruption in the provision of Regional Airline Services resulting from a casualty or liability incident related to Contractor's operations. All coverages described in this <u>Section</u> <u>6.01</u> shall be placed with deductibles reasonably prudent for a business organization of Contractor's size and nature, under the insurance market conditions in effect at the time of placement.

*Section 6.02 <u>Endorsements</u>*. Unless Contractor and United are participating in a combined policy placement, Contractor shall cause the policies described in <u>Section</u> <u>6.01</u> to be duly and properly endorsed by Contractor's insurance underwriters with respect to Contractor's flights and operations as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) To provide that the underwriters shall waive subrogation rights against United, its directors, officers, agents, employees and other authorized representatives, except for their gross negligence or willful misconduct (excluding aircraft hull coverage);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To provide that United, its directors, officers, agents, employees and other authorized representatives shall be endorsed as additional insured parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To provide that insurance shall be primary to and without right of contribution from any other insurance which may be available to the additional insureds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) To include a breach of warranty provision in favor of the additional insureds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) To accept and insure Contractor's hold harmless and indemnity undertakings set forth in this Agreement, but only to the extent of the coverage afforded by the policy or policies; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) To provide that such policies shall not be canceled, terminated or materially altered, changed or amended until [\*\*\*] (but [\*\*\*] or such lesser period as may be available in respect of war risk and allied perils and [\*\*\*] in the case of a cancellation for nonpayment of premium) after written notice shall have been sent to United.

*Section 6.03 <u>Evidence of Insurance Coverage</u>*. Promptly following the Effective Date, upon renewal and at United's request at any time from time to time, Contractor shall furnish to United evidence reasonably satisfactory to United of such insurance coverage and endorsements referenced above in this <u>Article</u> <u>VI</u>, including (i) certificates certifying that such insurance and endorsements are in full force and effect, (ii) all premiums, exposures and rates for United flights (which shall reflect planned exposure at plan inception and actual exposure thereafter) and (iii) a letter from Contractor's broker with excerpts from the applicable insurance policies verifying the information set forth in <u>clause</u> <u>(ii)</u>. If Contractor fails to acquire or maintain insurance in a manner that is reasonable and prudent for an entity of Contractor's size as herein provided, then, without limiting United's remedies pursuant to this Agreement with respect to such failure, United may at its option and its own cost secure such insurance on Contractor's behalf at Contractor's expense.

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*Section 6.04 <u>Failure to Maintain Insurance</u>*. In the event that Contractor fails to acquire or maintain insurance as provided herein, United may at its option secure such insurance on Contractor's behalf at Contractor's expense at levels of coverage that are standard in the airline market for operators of the same size as the Contractor's fleet of Covered Aircraft.

*Section 6.05 <u>Taxes</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Transaction Taxes</u>.* Contractor agrees to indemnify and hold United harmless from any and all penalties or interest arising out of any real and personal property, sales and use, occupational, gross receipts, value added, income, franchise and any other taxes, customs, duties, excise taxes, fees, charges or assessments, of any nature whatsoever imposed by any federal, state, local or foreign government or taxing authority upon Contractor or United with respect to Contractor's performance of this Agreement, or to Contractor's operations, or the equipment contained therein or services provided thereby, or the revenues derived therefrom (except for [\*\*\*]). If a claim is made against United for any penalties or interest referred to above, United will promptly notify Contractor and request payment of such claim. If requested by Contractor in writing, United will upon receipt of indemnity and evidence that Contractor has made adequate provision for the payment of such penalties or interest, reasonably satisfactory to United, contest the validity, applicability or amount of such penalties or interest, taxes and other charges at Contractor's expense. Contractor shall pay United upon demand for all expenses incurred (including all costs, expenses, losses, legal and accountants' fees, penalties and interest) in making payment, in protesting or seeking refund of such penalties or interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Payroll Taxes</u>.* Contractor acknowledges that it is responsible for and will pay to the appropriate authority, and will indemnify and hold United harmless from, any and all federal or state payroll taxes, FICA, unemployment tax, state unemployment compensation contribution, disability benefit payments, insurance costs and any other assessments or charges which relate directly or indirectly to the employment by Contractor of Contractor's employees. United acknowledges that it is responsible for and will pay to the appropriate authority, and will indemnify and hold Contractor harmless from, any and all federal or state payroll taxes, FICA, unemployment tax, state unemployment compensation contribution, disability benefit payments, insurance costs and any other assessments or charges which relate directly or indirectly to the employment by United of United's employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>Permits and Licenses</u>*. Contractor will comply with all federal, state and local laws, rules and regulations, will timely obtain and maintain any and all permits, certificates or licenses necessary for the full and proper conduct of its operations, and will pay all fees assessed for airport use including but not limited to landing fees, user airport fees and prorated airport facility fees. Contractor further agrees to comply with all mandatory resolutions issued by the Air Transport Association of America ("**<u>ATA</u>**") and all non-binding recommended resolutions of the ATA, which are adopted by United.

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**ARTICLE VII** 

**INDEMNIFICATION** 

*Section 7.01 <u>Contractor Indemnification of United</u>*. Contractor shall be liable for and hereby agrees to fully defend, release, discharge, indemnify and hold harmless United, United Airlines Holdings, Inc. ("**<u>United</u><u>'</u><u>s Parent</u>**"), their respective subsidiaries and their respective directors, officers, employees and agents from and against any and all claims, demands, damages, liabilities, suits, judgments, actions, causes of action, losses, fines, penalties, costs and expenses of any kind, character or nature whatsoever, including reasonable attorneys' fees, costs and expenses in connection therewith and expenses of investigation and litigation thereof, which may be suffered by, accrued against, charged to, or recoverable from United, United's Parent, their respective subsidiaries or their respective directors, officers, employees or agents, including any such losses, costs and expenses involving (i) death or injury (including claims of emotional distress and other non-physical injury by passengers) to any Person including any of Contractor's, United's, United's Parent's or their respective subsidiaries' directors, officers, employees or agents, (ii) loss of, damage to, or destruction of property (including real, tangible and intangible property, and specifically including regulatory property such as route authorities, slots and other landing rights), including any loss of use of such property, and (iii) damages due to delays in any manner, in each case arising out of, connected with, or attributable to (x) any act or omission by Contractor or any of its directors, officers, employees or agents relating to the provision of Regional Airline Services, (y) the performance, improper performance, or non-performance of any and all obligations to be undertaken by Contractor or any of its directors, officers, employees or agents pursuant to this Agreement, or (z) the operation, non-operation, or improper operation of the Covered Aircraft or Contractor's equipment or facilities at any location, in each case [\*\*\*]. Contractor will use commercially reasonable efforts to cause and assure that Contractor will at all times be and remain in custody and control of all aircraft, equipment, and facilities of, or operated by, Contractor, and United and its directors, officers, employees and agents shall not, for any reason, be deemed to be in custody or control, or a bailee, of such aircraft, equipment or facilities.

*Section 7.02 <u>United Indemnification of Contractor</u>*. United shall be liable for and hereby agrees fully to defend, release, discharge, indemnify, and hold harmless Contractor, Parent and their respective directors, officers, employees, and agents from and against any and all claims, demands, damages, liabilities, suits, judgments, actions, causes of action, losses, fines, penalties, costs and expenses of any kind, character or nature whatsoever, including reasonable attorneys' fees, costs and expenses in connection therewith and expenses of investigation and litigation thereof, which may be suffered by, accrued against, charged to, or recoverable from Contractor, Parent or their respective directors, officers, employees or agents, including any such losses, costs and expenses involving (i) death or injury (including claims of emotional distress and other non-physical injury by passengers) to any Person including any of Contractor's, Parent's, United's or United's Parent's directors, officers, employees or agents (excluding Contractor as such an agent), (ii) loss of, damage to, or destruction of property (including any loss of use of such property including real, tangible and intangible property, and specifically including regulatory property such as route authorities, slots and other landing rights), and (iii) damages due to delays in any manner, in each case arising out of, connected with, or attributable to, (x) the performance, improper performance, or nonperformance of any and all obligations to be undertaken by United or any of its directors, officers, employees or agents (excluding Contractor as such an agent) pursuant to this Agreement, (y) the operation, non- operation or improper operation of United's

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aircraft, equipment or facilities (excluding, for the avoidance of doubt, Covered Aircraft and any equipment or facilities leased or subleased by United to Contractor) at any location, in each case [\*\*\*]. United will use commercially reasonable efforts to cause and assure that United will at all times be and remain in custody and control of any aircraft, equipment and facilities of, or operated by, United, and Contractor and its directors, officers, employees and agents (excluding Contractor as such an agent) shall not, for any reason, be deemed to be in the custody or control, or a bailee, of such aircraft, equipment or facilities.

*Section 7.03 <u>Indemnification Claims</u>*. A party (the "**<u>Indemnified Party</u>**") entitled to indemnification from another party under the terms of this Agreement (the "**<u>Indemnifying Party</u>**") shall provide the Indemnifying Party with prompt written notice (an "**<u>Indemnity Notice</u>**") of any third party claim which the Indemnified Party believes gives rise to a claim for indemnity against the Indemnifying Party hereunder. Notwithstanding the foregoing, the failure of an Indemnified Party to promptly provide an Indemnity Notice shall not constitute a waiver by the Indemnified Party to any right to indemnification or otherwise relieve such Indemnifying Party from any liability hereunder unless and only to the extent that the Indemnifying Party is materially prejudiced as a result thereof. The Indemnifying Party shall be entitled, if it accepts financial responsibility for the third party claim, to control the defense of or to settle any such third party claim at its own expense and by its own counsel; *provided* that, unless a settlement includes an unconditional release of an Indemnified Party, no settlement by the Indemnifying Party of such a claim will be binding on such Indemnified Party for purposes of the indemnification provisions hereof without the prior written consent of such Indemnified Party to such settlement, which consent may not be unreasonably withheld, conditioned or delayed. The Indemnified Party shall provide the Indemnifying Party with such information as the Indemnifying Party shall reasonably request to defend any such third party claim and shall otherwise cooperate with the Indemnifying Party in the defense of any such third party claim. Except as set forth in this <u>Section</u> <u>7.03</u>, no settlement or other compromise or consent to a judgment by the Indemnified Party with respect to a third party claim as to which the Indemnifying Party is asserted to have an indemnity obligation hereunder will be binding on the Indemnifying Party for purposes of the indemnification provisions hereof without the prior written consent of such Indemnifying Party to such settlement, which consent may not be unreasonably withheld, conditioned or delayed, it being agreed however that it shall be reasonable for the Indemnifying Party to withhold or delay its consent if the Indemnifying Party reasonably asserts that the claim is not fully covered by the indemnity provided hereunder, and the entering into of any settlement or compromise or the consent to any judgment in violation of the foregoing shall constitute a waiver by the Indemnified Party of its right to indemnity hereunder to the extent the Indemnifying Party was prejudiced thereby. Any Indemnifying Party shall be subrogated to the rights of the Indemnified Party to the extent that the Indemnifying Party pays for any loss, damage or expense suffered by the Indemnified Party hereunder. If the Indemnifying Party does not accept financial responsibility for the third party claim or fails to defend against the third party claim that is the subject of an Indemnity Notice within 30 days of receiving such notice (or sooner if the nature of the third party claim so requires), or otherwise contests its obligation to indemnify the Indemnified Party in connection therewith, then the Indemnified Party may, upon providing written notice to the Indemnifying Party, pay, compromise or defend such third party claim without the prior consent of the (otherwise) Indemnifying Party. In the latter event, the Indemnified Party, by proceeding to defend itself or settle the matter, does not waive any of its rights hereunder to later seek reimbursement from the Indemnifying Party.

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*Section 7.04 <u>Employer</u><u>'</u><u>s Liability; Independent Contractors; Waiver of Control</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Employer</u><u>'</u><u>s Liability and Workers</u><u>'</u> <u>Compensation</u>*. Each party hereto assumes full responsibility for its employer's and workers' compensation liability to its respective officers, directors, employees or agents on account of injury or death resulting from or sustained in the performance of their respective service under this Agreement. Each party, with respect to its own employees, accepts full and exclusive liability for the payment of workers' compensation and employer's liability insurance premiums with respect to such employees, and for the payment of all taxes, contributions or other payments for unemployment compensation or old age or retirement benefits, pensions or annuities now or hereafter imposed upon employers by the government of the United States or any other governmental body, including state, local or foreign, with respect to such employees measured by the wages, salaries, compensation or other remuneration paid to such employees, or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Employees, etc., of Contractor</u>*. The employees, agents, and independent contractors of Contractor engaged in performing any of the services Contractor is to perform pursuant to this Agreement are employees, agents, and independent contractors of Contractor for all purposes, and under no circumstances will be deemed to be employees, agents or independent contractors of United. In its performance under this Agreement, Contractor will act, for all purposes, as an independent contractor and not as an agent for United. Notwithstanding the fact that Contractor has agreed to follow certain procedures, instructions and standards of service of United pursuant to this Agreement, United will have no supervisory power or control over any employees, agents or independent contractors engaged by Contractor in connection with its performance hereunder and Contractor shall defend, indemnify and hold harmless United and its directors, officers, employees and agents from and against any and all claims alleging that United is the employer of any said employees, agents or independent contractors engaged by Contractor. All complaints or requested changes in procedures made by United will, in all events, be transmitted by United to Contractor's designated representative. Nothing contained in this Agreement shall be construed as joint employment or is intended to limit or condition Contractor's control over its operations or the conduct of its business as an air carrier.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>Employees, etc., of United</u>*. The employees, agents, and independent contractors of United engaged in performing any of the services United is to perform pursuant to this Agreement are employees, agents, and independent contractors of United for all purposes, and under no circumstances will be deemed to be employees, agents, or independent contractors of Contractor. Contractor will have no supervision or control over any such United employees, agents and independent contractors and any complaint or requested change in procedure made by Contractor will be transmitted by Contractor to United's designated representative. In its performance under this Agreement, United will act, for all purposes, as an independent contractor and not as an agent for Contractor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *<u>Contractor Flights</u>*. The fact that Contractor's operations are conducted under United Marks and listed under the flight code designated by United will not affect their status as flights operated by Contractor for purposes of this Agreement or any other agreement between the parties, and Contractor and United agree to advise all third parties, including passengers, of this fact.

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*Section 7.05 <u>Unauthorized Obligations</u>*. Notwithstanding anything to the contrary in this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) nothing in this Agreement authorizes United to make any contract, agreement, warranty or representation on Contractor's behalf, or to incur any debt or obligation in Contractor's name (a "**<u>Contractor Unauthorized Obligation</u>**"), and United hereby agrees to defend, indemnify, save, release and hold Contractor and its officers, directors, employee and agents harmless from any and all liabilities, claims, judgments and obligations which arise as a result of or in connection with or by reason of any such Contractor Unauthorized Obligation made by United or its officers, directors, employees, agents or independent contractors (other than Contractor) in the conduct of United's operations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) nothing in this Agreement authorizes Contractor to make any contract, agreement, warranty or representation on United's behalf, or to incur any debt or obligation in United's name, or to dispose of any of United's assets, or to enter into agreements with third parties which create liens, claims or encumbrances on any of United's assets (a "**<u>United Unauthorized Obligation</u>**"), and Contractor hereby agrees to defend, indemnify, save, release and hold United and its officers, directors, employee and agents harmless from any and all liabilities, claims, judgments and obligations which arise as a result of or in connection with or by reason of any such United Unauthorized Obligation made by Contractor or its officers, directors, employees, agents or independent contractors in the conduct of Contractor's operations.

*Section 7.06 <u>Survival</u>*. The provisions of this <u>Article</u> <u>VII</u> shall survive the termination of this Agreement for a period of seven years.

**ARTICLE VIII** 

**TERM, TERMINATION AND DISPOSITION OF AIRCRAFT** 

*Section 8.01 <u>Term</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Initial Term</u>*. Unless earlier terminated or extended as provided under this Agreement, the term of this Agreement shall commence on the Effective Date and continue until the date on which there are no Covered Aircraft performing Regional Airline Services under this Agreement (the "**<u>Term</u>**"); *provided* that the Term applicable to any specific aircraft shall commence on the date that such aircraft is listed as a "Covered Aircraft" on <u>Schedule</u> <u>1</u> (as amended from time to time) and shall continue until the withdrawal of such Covered Aircraft from the capacity purchase provisions of this Agreement pursuant to this <u>Article</u> <u>VIII</u>, or as otherwise expressly set forth on <u>Schedule</u> <u>1</u> or otherwise in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Extension</u>*. Notwithstanding <u>Section</u> <u>8.01(a)</u>, at any time and from time to time [\*\*\*]

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*Section 8.02 <u>Early Termination</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>By United for Cause</u>*. United shall have the right to terminate this Agreement, immediately upon written notice (but without any prior notice), which notice may specify a termination of this Agreement with respect to all or a portion of the Covered Aircraft, following the occurrence of any event that constitutes Cause. Any termination pursuant to this <u>Section</u> <u>8.02(a)</u> shall supersede any other termination pursuant to any other provision of this Agreement (even if such other right of termination shall already have been exercised), and the date of such notice shall specify the Termination Date for purposes of this Agreement (and such Termination Date pursuant to this <u>Section</u> <u>8.02(a)</u> shall supersede any other Termination Date that may have been previously established pursuant to another termination.*<u> </u>*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>By United for Breach</u>*. United may terminate this Agreement with respect to [\*\*\*], upon the occurrence of a material breach of this Agreement by Contractor [\*\*\*]. The parties agree that, without limiting the circumstances or events that may constitute a material breach, each of the following shall constitute a material breach of this Agreement by Contractor:

[\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>By Contractor for Breach</u>*. Contractor may terminate this Agreement [\*\*\*], *provided* that United [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *<u>Waiver of Breach</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Except as otherwise provided in <u>Section</u> <u>8.02(b)</u>, if a notice of termination under <u>Section</u> <u>8.02(b)(iii)</u> is not delivered by United within [\*\*\*] after the end of the cure period relating solely to the default described in such relevant provision under <u>Section</u> <u>8.02(b)(iii)</u>, then United shall be deemed to have conclusively waived its right hereunder to terminate solely as to the particular circumstance triggering <u>Section</u> <u>8.02(b)(iii)</u> (it being understood, for the avoidance of doubt, that such waiver shall not apply to subsequent or other circumstances even if a calendar month in such subsequent or other performance default also was implicated in the performance default subject to such waiver).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If a notice of termination under <u>Section</u> <u>8.02(c)</u> is not delivered by Contractor within [\*\*\*] after the end of the applicable cure period (or occurrence of such breach if there is not a cure period provided pursuant to <u>Section</u> <u>8.02(a)</u>, <u>Section</u> <u>8.02(b)</u>, or <u>Section</u> <u>8.02(c)</u>), then Contractor shall be deemed to have conclusively waived its right hereunder to terminate for any such breach.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *<u>By United for Convenience</u>*. United shall have the right to terminate the Agreement as specifically provided herein:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) With respect to [\*\*\*], United may terminate this Agreement [\*\*\*], by providing written notice to Contractor that [\*\*\*]. Following such termination [\*\*\*].

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) United shall have the right to terminate the Agreement [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *<u>Survival During Wind-Down Period</u>*. With respect to a Covered Aircraft that is terminated under <u>Article VIII</u>, this Agreement shall survive in full force and effect (and the Term shall continue), beyond the Termination Date until the end of the Wind-Down Period, and the rights and obligations of the parties under this Agreement, including applicable payments expressly required hereunder and remedies available upon the occurrence of events constituting Cause or material breach, shall continue with respect to the Covered Aircraft until they are withdrawn from this Agreement and otherwise until the later of the Termination Date and the end of the Wind-Down Period, if any; *provided* that, automatically upon the expiration of the Wind-Down Period with respect to such aircraft, this Agreement shall have terminated in its entirety with respect to such aircraft.

*Section 8.03 <u>Disposition of Aircraft during Wind-Down Period</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Termination by United for Cause</u>*. If this Agreement is terminated pursuant to <u>Section</u> <u>8.02(a)</u>, [\*\*\*] shall apply. If this Agreement is terminated pursuant to <u>Section</u> <u>8.02(a)</u> and United does not make the foregoing election, then the Covered Aircraft shall be withdrawn from the capacity purchase provisions of this Agreement in accordance with the following terms and conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) As of the Termination Date, the number of Covered Aircraft specified in the termination notice delivered by United to Contractor pursuant to <u>Section</u> <u>8.02(a)</u> shall automatically be withdrawn from the capacity purchase provisions of this Agreement and shall cease to be Covered Aircraft as of such date. As to United Owned Aircraft, Contractor shall on the withdrawal date for such aircraft deliver possession of such aircraft to United or its designee and all of the United Owned Aircraft Leases for withdrawn United Owned Aircraft will, upon such delivery, be terminated in accordance with the terms of the United Owned Aircraft Leases. The provisions of this <u>Section</u> <u>8.03(a)(i)</u> shall supersede any Wind-Down Schedule delivered pursuant to any other provision of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Upon the withdrawal of each Covered Aircraft that is being returned to United (or its designee) pursuant to this <u>Section</u> <u>8.03(a)</u>, Contractor shall remain [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Termination by United for Breach, Etc</u>*. If this Agreement is terminated by United under <u>Section</u> <u>8.02(b)</u>, then [\*\*\*] shall be withdrawn from the capacity purchase provisions of this Agreement in accordance with the following terms and conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Within [\*\*\*] of delivery of any notice of termination delivered pursuant to <u>Section</u> <u>8.02(b)</u>, United shall deliver to Contractor an irrevocable written Wind-Down Schedule, providing for the withdrawal of such Covered Aircraft from the capacity purchase provisions of this Agreement, delineating the number of each aircraft type to be withdrawn by month.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) United shall deliver to Contractor the Wind-Down Schedule within [\*\*\*] of providing the applicable notice pursuant to <u>Section</u> <u>8.02(b)</u>; *provided* that the Wind- Down Schedule (x) may not commence until the Termination Date, (y) may not provide for the withdrawal of any Covered Aircraft prior to the date that is [\*\*\*] after the date of delivery of the Wind-Down Schedule and (z) may not provide for the withdrawal of any Covered Aircraft for more than [\*\*\*] after the date of delivery of the notice of termination delivered pursuant to <u>Section</u> <u>8.02(b)</u>. The Wind-Down Schedule may not provide for the withdrawal of more than [\*\*\*] Covered Aircraft per calendar month. United shall have complete discretion in the selection of the particular Covered Aircraft to be withdrawn in any month. Upon the date for withdrawal of a Covered Aircraft specified in the Wind-Down Schedule established pursuant to this <u>Section</u> <u>8.03(b)</u>, such aircraft shall cease to be a Covered Aircraft, and, in the case of each United Owned Aircraft, Contractor shall deliver possession of such aircraft to United (or its designee) on such withdrawal date for such aircraft and the United Owned Aircraft Lease with respect to such aircraft shall, upon such delivery, be terminated in accordance with the terms of such United Owned Aircraft Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>Termination by Contractor for Breach</u>*. If this Agreement is terminated by Contractor under <u>Section</u> <u>8.02(c)</u>, then the Covered Aircraft shall be withdrawn from the capacity purchase provisions of this Agreement in accordance with the following terms and conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The notice of termination delivered by Contractor to United pursuant to <u>Section</u> <u>8.02(c)(i)</u> shall be irrevocable and shall contain a Termination Date that is not more than [\*\*\*] after the date of such notice; *provided* that such termination notice shall be void and of no further effect automatically upon the payment by United prior to such Termination Date of all unpaid amounts giving rise to the default under <u>Section</u> <u>8.02(c)(i)</u>. As of the Termination Date set forth in a notice of termination delivered pursuant to <u>Section</u> <u>8.02(c)(i)</u>, [\*\*\*]. Within [\*\*\*] of delivering such termination notice pursuant to <u>Section</u> <u>8.02(c)(i)</u>, Contractor shall deliver to United a Wind-Down Schedule. The Wind-Down Schedule shall [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The notice of termination delivered by Contractor to United pursuant to <u>Section</u> <u>8.02(c)(ii)</u> shall be irrevocable and shall contain a Termination Date that is at least [\*\*\*] after the date of such notice. Within [\*\*\*] of delivering such termination notice pursuant to <u>Section</u> <u>8.02(c)(ii)</u>, Contractor shall deliver to United a Wind-Down Schedule. The Wind-Down Schedule shall [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The notice of termination delivered by Contractor to United pursuant to <u>Section</u> <u>8.02(c)(iii)</u> shall be irrevocable and shall contain a Termination Date that is at least [\*\*\*] after the date of such notice. Within [\*\*\*] of delivering such termination notice pursuant to <u>Section</u> <u>8.02(c)(iii)</u>, Contractor shall deliver to United a Wind-Down Sched1u1le. The Wind-Down Schedule shall [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) United Owned Aircraft being returned following a termination notice delivered pursuant to <u>Section</u> <u>8.02(c)(ii)</u> shall be returned to United in accordance with Contractor's Wind-Down Schedule delivered pursuant to <u>Section</u> <u>8.03(c)(ii)</u>, and each such aircraft shall cease to be a Covered Aircraft as of the date of such withdrawal.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *<u>Termination by United for Convenience</u>*. If this Agreement is terminated by United under <u>Section</u> <u>8.02(e)</u>, then the applicable New E175LR Tranche 1 Covered Aircraft shall be withdrawn from the capacity purchase provisions of this Agreement in accordance with the following terms and conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) At the time of delivery of any notice to Contractor of termination delivered pursuant to <u>Section</u> <u>8.02(e)</u>, United shall [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Wind-Down Schedule may [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) United shall [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) United shall be obligated to [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) [\*\*\*] *<u>Certain Terminations</u>*. Upon:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the expiration of the applicable Term [\*\*\*], United shall [\*\*\*]; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) United's termination for convenience pursuant to <u>Section</u> <u>8.02(e)(ii)</u>, United shall [\*\*\*]; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the termination of this Agreement prior to the expiration of the applicable Term of a Covered Aircraft by United pursuant to the terms herein (other than pursuant to <u>Section</u> <u>8.02(e)</u>, in which case the applicable provisions of <u>Section</u> <u>10.22</u> shall apply), then United shall [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *<u>Other Remedies in Lieu of Termination for Labor Strike and Other Circumstances</u>*. In the event of the occurrence of (i) a Labor Strike or (ii) the mandatory grounding of any portion of the Covered Aircraft [\*\*\*], then, so long as United has not provided a termination notice to Contractor pursuant to <u>Section</u> <u>8.02(b)</u>, then United shall [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) *<u>Damages; Rescission.</u>* EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT (INCLUDING, FOR THE AVOIDANCE OF DOUBT, THE ENTITLEMENT TO LIQUIDATED DAMAGES UNDER THIS AGREEMENT, WHICH SHALL NOT BE LIMITED IN ANY MANNER WHATSOEVER BY THIS <u>SECTION 8.03(h)</u>), NO PARTY TO THIS AGREEMENT OR ANY OF ITS AFFILIATES SHALL BE LIABLE TO ANY OTHER PARTY HERETO OR ANY OF

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ITS AFFILIATES FOR CLAIMS FOR CONSEQUENTIAL, PUNITIVE, SPECIAL OR EXEMPLARY DAMAGES, ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY, REGARDLESS WHETHER A CLAIM IS BASED ON CONTRACT, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY, VIOLATION OF ANY APPLICABLE DECEPTIVE TRADE PRACTICES ACT OR SIMILAR LAW OR ANY OTHER LEGAL OR EQUITABLE PRINCIPLE, AND EACH PARTY RELEASES THE OTHERS AND THEIR RESPECTIVE AFFILIATES FROM LIABILITY FOR ANY SUCH DAMAGES; *PROVIDED* THAT THE FOREGOING LIMITATION SHALL NOT APPLY TO LIMIT THE LIABILITY OF ANY PARTY FOR THE CONSEQUENTIAL DAMAGES SUFFERED BY ANY OTHER PARTY IF THE FIRST PARTY ACTED IN BAD FAITH. NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THE FOREGOING, NOTHING IN THIS <u>SECTION 8.03(h)</u> SHALL LIMIT [\*\*\*]. NO PARTY SHALL BE ENTITLED TO RESCISSION OF THIS AGREEMENT AS A RESULT OF BREACH OF ANY OTHER PARTY'S REPRESENTATIONS, WARRANTIES, COVENANTS OR AGREEMENTS, OR FOR ANY OTHER MATTER.

**ARTICLE IX** 

**REPRESENTATIONS, WARRANTIES AND COVENANTS** 

*Section 9.01 <u>Representations, Warranties and Covenants of Contractor</u>*. Contractor represents, warrants and covenants to United as of the date hereof as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Organization and Qualification</u>*. Contractor is a duly organized and validly existing corporation in good standing under the laws of the State of Indiana and Contractor has the power and authority to own, operate and use its assets and to provide the Regional Airline Services. Contractor is duly qualified to do business as a foreign entity under the laws of each jurisdiction that requires such qualification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Authority Relative to this Agreement</u>*. Contractor has the corporate power and authority to execute and deliver this Agreement and to consummate the transactions contemplated hereby in accordance with the terms hereof. The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by all necessary corporate action on the part of Contractor. This Agreement has been duly and validly executed and delivered by Contractor and is, assuming due execution and delivery thereof by United and that United has legal power and right to enter into this Agreement, a valid and binding obligation of Contractor, enforceable against Contractor in accordance with its terms, except as enforcement hereof may be limited by bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws relating to or affecting the enforcement of creditors' rights generally and legal principles of general applicability governing the availability of equitable remedies (whether considered in a proceeding in equity or at law or otherwise under applicable law).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>Conflicts</u>*. Neither the execution or delivery of this Agreement nor the performance by Contractor of the transactions contemplated hereby will (i) violate, conflict with, or constitute a default under any of the terms of Contractor's certificate of incorporation, by-laws, or any provision of, or result in the acceleration of any obligation under, any material contract, sales commitment, license, purchase order, security agreement, mortgage, note, deed, lien, lease or other agreement to which Contractor is a party or by which it or any of its properties or assets may be bound, (ii) result in the creation or imposition of any lien, charge or encumbrance in favor of any third Person or entity, (iii) violate any law, statute, judgment, decree, order, rule or regulation of any Governmental Authority or body, or (iv) constitute any event which, after notice or lapse of time or both, would result in such violation, conflict, default, acceleration or creation or imposition of liens, charges or encumbrances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *<u>No Default</u>*. To the knowledge of Contractor, Contractor is not (i) in violation of its certificate of formation or limited liability company agreement, (ii) in breach or default in any material respect, and no event has occurred which, with notice or lapse of time or both, would constitute such a breach or default, in the due performance or observance of any term, covenant or condition contained in any indenture, mortgage, deed of trust, loan agreement or other material agreement or instrument to which it is a party or by which it is bound or to which any of its properties or assets is subject or (iii) in violation of any law, ordinance, governmental rule, regulation or court decree to which it or its property or assets may be subject or has failed to obtain any material license, permit, certificate, franchise or other governmental authorization or permit necessary to the ownership of its property or to the conduct of its business, where such violation, breach, default or failure would have a material adverse effect on Contractor or on its ability to provide Regional Airlines Services and otherwise perform its obligations hereunder. To the knowledge of Contractor, no third party to any indenture, mortgage, deed of trust, loan agreement, lease or other agreement or instrument that is material to Contractor to which Contractor is a party or by which any of them are bound or to which any of their properties are subject, is in default in any material respect under any such agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *<u>Broker</u>*. Contractor has not retained or agreed to pay any broker or finder with respect to this Agreement and the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *<u>Insurance</u>*. Contractor is insured by insurers of recognized financial responsibility against such losses and risks and in such amounts and with such deductibles as are customary in the businesses in which they are engaged. Contractor has not received notice of cancellation or non-renewal of such insurance. All such insurance is outstanding and duly in force on the date hereof. Contractor has no reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business at a cost that would not have a material adverse effect on Contractor

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) *<u>No Proceedings</u>*. There are no legal or governmental proceedings pending, or investigations commenced of which Contractor has received notice, in each case to which Contractor is a party or of which any property or assets of Contractor is the subject which, if determined adversely to Contractor, would individually or in the aggregate have a material adverse effect on Contractor or on its ability to provide Regional Airlines Services and otherwise perform its obligations hereunder; and to the best knowledge of Contractor, no such proceedings are threatened or contemplated by Governmental Authorities or threatened by others.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) *<u>No Labor Dispute; No Collective Bargaining Agreement</u>*. No labor dispute with the employees of Contractor exists or, to the knowledge of Contractor, is imminent which would reasonably be expected to have a material adverse effect on Contractor or on its ability to provide Regional Airlines Services and otherwise perform their respective obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *<u>Permits</u>*. Contractor possesses all material certificates, authorizations and permits issued by FAA and other applicable federal, state or foreign regulatory authorities necessary to conduct its business, to provide Regional Airlines Services and otherwise to perform its obligations hereunder, and Contractor has not [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) *<u>Sanctions and Trade Compliance</u>*. None of Contractor, its subsidiaries or affiliates will enter into any agreement, transaction or dealing in violation of, or in a manner that could expose United, its subsidiaries or affiliates to Losses under applicable Law [\*\*\*].

Contractor represents that it has [\*\*\*].

*Section 9.02 <u>Representations and Warranties of United</u>*. United represents and warrants to Contractor as of the date hereof as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Organization and Qualification</u>*. United is a duly incorporated and validly existing corporation in good standing under the laws of the State of Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Authority Relative to this Agreement</u>*. United has the corporate power and authority to execute and deliver this Agreement and to consummate the transactions contemplated hereby in accordance with the terms hereof. The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by all necessary corporate action on the part of United. This Agreement has been duly and validly executed and delivered by United and is, assuming due execution and delivery thereof by Contractor and that Contractor has legal power and right to enter into this Agreement, a valid and binding obligation of United, enforceable against United in accordance with its terms, except as enforcement hereof may be limited by bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws relating to or affecting the enforcement of creditors' rights generally and legal principles of general applicability governing the availability of equitable remedies (whether considered in a proceeding in equity or at law or otherwise under applicable law).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>Conflicts; Defaults</u>*. Neither the execution or delivery of this Agreement nor the performance by United of the transactions contemplated hereby will (i) violate, conflict with, or constitute a default under any of the terms of United's certificate of incorporation, by-laws, or any provision of, or result in the acceleration of any obligation under, any material contract, sales commitment, license, purchase order, security agreement, mortgage, note, deed, lien, lease or other agreement to which United is a party or by which it or its properties or assets may be bound, (ii) result in the creation or imposition of any lien, charge or encumbrance in favor of any third Person or entity, (iii) violate any law, statute, judgment, decree, order, rule or regulation of any Governmental Authority, or (iv) constitute any event which, after notice or lapse of time or both, would result in such violation, conflict, default, acceleration or creation or imposition of liens, charges or encumbrances.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *<u>Broker</u>*. United has not retained or agreed to pay any broker or finder with respect to this Agreement and the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *<u>No Proceedings</u>*. There are no legal or governmental proceedings pending, or investigations commenced of which United has received notice, in each case to which United is a party or of which any property or assets of United is the subject which, if determined adversely to United, would individually or in the aggregate have a material adverse effect on United or on its ability to perform its obligations hereunder; and to the best knowledge of United, no such proceedings are threatened or contemplated by Governmental Authorities or threatened by others.

**ARTICLE X** 

**MISCELLANEOUS** 

*Section 10.01 <u>No Dispositions of Contractor Owned E175 Aircraft and New E175LR Tranche 1 Covered Aircraft</u>*. From and after the Effective Date, Contractor and Parent shall not permit, effect or otherwise agree to any sale, assignment, transfer, encumbrance or other disposition (in each case whether by means of a sale/leaseback transaction or otherwise) with respect to any Contractor Owned E175 Aircraft or any New E175LR Tranche 1 Covered Aircraft, [\*\*\*].

*Section 10.02 <u>Notices</u>*. All notices or other communications required or permitted hereunder shall be given in writing and given by (i) certified or registered mail, return receipt requested, (ii) nationally recognized overnight delivery service, (iii) e-mail delivery (including delivery of a document in portable document format) with electronic delivery confirmation received by the sender or (iv) personal delivery against receipt to the party to whom it is given, in each case, at such party's physical or e-mail address set forth below or such other physical address or e-mail address as such party may hereafter specify by written notice to the other parties hereto given in accordance with this <u>Section</u> <u>10.02</u>. Any such notice or other communication shall be deemed to have been given as of the date so personally delivered or transmitted by e-mail delivery (or, if delivered or transmitted after normal business hours, on the next Business Day) or on the next Business Day when sent by overnight delivery services or five days after the date so mailed if by certified or registered mail.

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| |
|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; if to United: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; United Airlines, Inc. <br>Willis Tower <br>233 S. Wacker Drive <br>Chicago, IL 60606 <br>Attention: UAX Notices <br>[\*\*\*]<br>|

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; if to Contractor:<br>Republic Airways Inc. <br>8909 Purdue Road, Suite 300<br> Indianapolis, Indiana 46268<br> Attn: Chief Executive Officer<br> [\*\*\*]<br>And to:<br> Republic Airways Inc. <br>8909 Purdue Road, Suite 300 <br>Indianapolis, Indiana 46268 <br>Attn: Senior Vice President and Chief Financial Officer<br> [\*\*\*]<br>With a copy to:<br> Republic Airways Inc. <br>8909 Purdue Road, Suite 300 <br>Indianapolis, Indiana 46268 <br>Attn: Vice President and General Counsel<br> [\*\*\*]<br>

or to such other address as a party hereto may have furnished to the other party by a notice in writing in accordance with this <u>Section</u> <u>10.02</u>.

*Section 10.03 <u>Binding Effect; Assignment</u>*. This Agreement and all of the provisions hereof shall be binding upon the parties hereto and inure to the benefit of the parties hereto and their respective successors and permitted assigns. Neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned by any party hereto without the prior written consent of the other parties; *provided* that United may assign without Contractor's prior written consent this Agreement or any or all of its rights and obligations hereunder to any direct or indirect wholly-owned subsidiary of United's Parent.

*Section 10.04 <u>Amendment and Modification</u>*. This Agreement may not be amended or modified in any respect except by a written agreement signed by the parties hereto that specifically states that it is intended to amend or modify this Agreement.

*Section 10.05 <u>Waiver</u>*. The observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively) by the party entitled to enforce such term, but such waiver shall be effective only if it is in writing signed by the party against which such waiver is to be asserted that specifically states that it is intended to waive such term. Unless otherwise expressly provided in this Agreement, no delay or omission on the part of any party in exercising any right or privilege under this Agreement shall operate as a waiver thereof, nor shall any waiver on the part of any party of any right or privilege under this Agreement operate as a waiver of any other right or privilege under this Agreement nor shall any single or partial exercise of any right or privilege preclude any other or further exercise thereof or

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the exercise of any other right or privilege under this Agreement. No failure by any party to take any action or assert any right or privilege hereunder shall be deemed to be a waiver of such right or privilege in the event of the continuation or repetition of the circumstances giving rise to such right unless expressly waived in writing by each party against whom the existence of such waiver is asserted.

*Section 10.06 <u>Interpretation</u>*. The table of contents and the section and other headings and subheadings contained in this Agreement and in the exhibits and schedules hereto are solely for the purpose of reference, are not part of the agreement of the parties hereto, and shall not in any way affect the meaning or interpretation of this Agreement or any exhibit or schedule hereto. All references to days or months shall be deemed references to calendar days or months. All references to "$" shall be deemed references to United States dollars. Unless the context otherwise requires, any reference to an "Article," a "Section," an "Exhibit," or a "Schedule" shall be deemed to refer to a section of this Agreement or an exhibit or schedule to this Agreement, as applicable. The words "hereof," "herein" and "hereunder" and words of similar import referring to this Agreement refer to this Agreement as a whole and not to any particular provision of this Agreement. Whenever the words "include," "includes" or "including" are used in this Agreement, unless otherwise specifically provided, they shall be deemed to be followed by the words "without limitation." This Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation against the party drafting or causing the document to be drafted. Unless specified otherwise, all references in this Agreement to an "option", a right of "consent" or "election" (including terms correlative to the foregoing), or to other similar rights shall be deemed to be consents, rights to elections or options, or other similar rights, as applicable, that may be withheld, conditioned or delayed at the sole discretion of the party holding such option or right of consent or election, or other similar right, as the case may be.

*Section 10.07 <u>Confidentiality</u>*. Except as required by law or stock exchange or other regulation or in any proceeding to enforce the provisions of this Agreement, or as otherwise provided below, each party hereby agrees not to publicize or disclose to any third party the existence, terms (including the names of the parties) or conditions of this Agreement or any of the Ancillary Agreements, or any exhibit, schedule or appendix hereto or thereto, or any CPA Records, without the prior written consent of the other parties thereto (except that (i) a party may disclose such information to its existing and potential lenders, lessors and other financing parties, its third-party consultants, its advisors and its representatives, in each case who are themselves bound to keep such information confidential and (ii) United may disclose any information to its organized labor groups and their third-party consultants, advisors and representatives as required pursuant to applicable collective bargaining agreements). Except as required by law or stock exchange or other regulation or in any proceeding to enforce the provisions of this Agreement or any of the Ancillary

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Agreements, or as otherwise provided below, each party hereby agrees not to disclose to any third party any confidential information or data, both oral and written, received from the other, whether pursuant to or in connection with this Agreement or any of the Ancillary Agreements, and designated as such by the other without the prior written consent of the party providing such confidential information or data (except that a party may disclose such information to its third party consultants, advisors and representatives, in each case who are themselves bound to keep such information confidential). Each party hereby agrees not to use any such confidential information or data of the other party other than in connection with performing their respective obligations or enforcing their respective rights under this Agreement or any of the Ancillary Agreements, or as otherwise expressly permitted or contemplated by this Agreement or any of the Ancillary Agreements. If either party is served with a subpoena or other process requiring the production or disclosure of any of such agreements or information, then the party receiving such subpoena or other process, before complying with such subpoena or other process, shall immediately notify the other parties hereto of the same and permit said other parties a reasonable period of time to intervene and contest disclosure or production. Upon termination of this Agreement, each party must return to each other any confidential information or data received from the other and designated as such by the party providing such confidential information or data which is still in the recipient's possession or control. Without limiting the foregoing, no party shall be prevented from disclosing in any government filing the following terms of this Agreement: the existence of this Agreement, number of aircraft subject hereto, the periods for which such aircraft are subject hereto, and any termination provisions contained herein. Notwithstanding anything to the contrary in the foregoing, prior to the disclosure of any information relating to this Agreement to a third party or Governmental Authority (even if such disclosure is permitted by the provisions set forth above), Contractor shall provide reasonable advance notice to United, and shall consider in good faith reasonable limitations on disclosure proposed by United (including redactions or the omission of certain schedules or exhibits), it being acknowledged by the parties that the omission or redaction of information customarily contemplated as commercially sensitive (including numerical figures for Base Compensation Rates) shall be deemed to constitute reasonable limitations in all events. Prior to making any public filing of this Agreement or any amendment hereto, or any portion of any of the foregoing, Contractor and Parent shall afford United three Business Days to propose the redaction of any commercially sensitive information contained therein, and Contractor will consider any such redactions from United in good faith and will use reasonable best efforts to incorporate such redactions into such public filing; *provided* that nothing in this sentence shall limit the right of Contractor or Parent to make any disclosure that it determines in good faith, upon the advice of its outside counsel, is necessary pursuant to applicable law or stock exchange. The provisions of this <u>Section</u> <u>10.07</u> shall survive the termination of this Agreement for a period of 10 years.

*Section 10.08 <u>Arbitration</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Agreement to Arbitrate</u>*. Subject to the equitable remedies provided under <u>Section</u> <u>10.12</u>, any and all claims, demands, causes of action, disputes, controversies and other matters in question (all of which are referred to herein as "**<u>Claims</u>**") arising out of or relating to this Agreement, shall be resolved by binding arbitration pursuant to the procedures set forth by the AAA. Each of the parties agrees that arbitration under this <u>Section</u> <u>10.08</u> is the exclusive method for resolving any Claim and that it will not commence an action or proceeding based on a Claim hereunder, except to enforce the arbitrators' decisions as provided in this <u>Section</u> <u>10.08</u>, to compel any other party to participate in arbitration under this <u>Section</u> <u>10.08</u>. The governing law for any such action or proceeding shall be the law set forth in <u>Section</u> <u>10.08(f)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Initiation of Arbitration</u>*. If any Claim has not been resolved by mutual agreement on or before the 15<sup>th</sup> day following the first notice of the Claim to or from a disputing party, then the arbitration may be initiated by one party by providing to the other party a written notice of arbitration specifying the Claim or Claims to be arbitrated. If a party refuses to honor its obligations to arbitrate under this provision, the other party may compel arbitration in either federal or state court in Chicago, Illinois and seek recovery of its attorneys' fees and court costs incurred if the arbitration is ordered to proceed.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>Place of Arbitration</u>*. The arbitration proceeding shall be conducted in New York, New York, or some other location mutually agreed upon by the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *<u>Selection of Arbitrators</u>*. The arbitration panel (the "**<u>Panel</u>**") shall consist of three arbitrators who are qualified to hear the type of Claim at issue. They may be selected by agreement of the parties within 30 days of the notice initiating the arbitration procedure, or from the date of any order compelling such arbitration to proceed. If the parties fail to agree upon the designation of any or all the Panel, then the parties shall request the assistance of the AAA. The Panel shall make all of its decisions by majority vote. Evident partiality on the part of an arbitrator exists only where the circumstances are such that a reasonable person would have to conclude there in fact existed actual bias, and a mere appearance or impression of bias will not constitute evident partiality or otherwise disqualify an arbitrator. The decision of the Panel will be binding and non-appealable, except as permitted under the Federal Arbitration Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *<u>Choice of Law as to Procedural Matters</u>*. The enforcement of this agreement to arbitrate, and all procedural aspects of the proceeding pursuant to this agreement to arbitrate, including the issues subject to arbitration (i.e., arbitrability), the scope of the arbitrable issues, and the rules governing the conduct of the arbitration, unless otherwise agreed by the parties, shall be governed by and construed pursuant to the Federal Arbitration Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *<u>Choice of Law as to Substantive Claims</u>*. In deciding the substance of the parties' Claims, the arbitrators shall apply the substantive laws of the State of New York (excluding New York choice-of-law principles that might call for the application of the law of another jurisdiction).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) *<u>Procedure</u>*. It is contemplated that the arbitration proceeding will be self- administered by the parties and conducted in accordance with procedures jointly determined by the Panel and the parties; *provided*, *however*, that if either or both parties believes the process will be enhanced if it is administered by the AAA, then either or both parties shall have the right to cause the process to become administered by the AAA and, thereafter, the arbitration shall be conducted, where applicable or appropriate, pursuant to the administration of the AAA. In determining the extent of discovery, the number and length of depositions, and all other pre-hearing matters, the Panel shall endeavor to the extent possible to streamline the proceedings and minimize the time and cost of the proceedings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) *<u>Final Hearing</u>*. The final hearing shall be conducted within 120 days of the selection of the entire Panel. The final hearing shall not exceed 10 Business Days, with each party to be granted one-half of the allocated time to present its case to the arbitrators, unless otherwise agreed by the parties.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *<u>Damages</u>*. Only actual damages may be awarded. It is expressly agreed that the Panel shall have no authority to award treble, exemplary or punitive damages of any type under any circumstances regardless of whether such damages may be available under the applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) *<u>Decision of the Arbitration</u>*. The Panel shall render its final decision and award in writing within 20 days of the completion of the final hearing completely resolving all of the Claims that are the subject of the arbitration proceeding. The Panel shall certify in its decision that no part of its award includes any amount for treble, exemplary or punitive damages. The Panel's decision and award shall be final and non-appealable to the maximum extent permitted by law. Any and all of the Panel's orders and decisions will be enforceable in, and judgment upon any award rendered in the arbitration proceeding may be confirmed and entered by, any federal or state court in Chicago, Illinois having jurisdiction.

*Section 10.09 <u>Confidentiality</u>*. All proceedings conducted hereunder and the decision and award of the Panel shall be kept confidential by the Panel and the parties

*Section 10.10 <u>Counterparts</u>*. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument notwithstanding that United and Contractor are not signatories to the original or the same counterpart. This Agreement may be executed by facsimile signature. Each of United and Contractor shall become bound by this Agreement immediately upon affixing its signature hereto, independently of the signature of any other party.

*Section 10.11 <u>Severability</u>*. Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof. Any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

*Section 10.12 <u>Equitable Remedies</u>*. Each party acknowledges and agrees that, under certain circumstances, the breach by a party of a term or provision of this Agreement will materially and irreparably harm the other party, that money damages will accordingly not be an adequate remedy for such breach and that the non-defaulting party, in its sole discretion and in addition to its rights under this Agreement and any other remedies it may have at law or in equity, may apply to any court of law or equity of competent jurisdiction (without posting any bond or deposit) for specific performance and/or other injunctive relief in order to enforce or prevent any breach of the provisions of this Agreement. Neither the right of any party to terminate this Agreement, nor the exercise of such right, shall constitute a limitation on such party's right to seek damages or such other legal redress to which such party may otherwise be entitled; *provided* that [\*\*\*]. For the avoidance of doubt, except as expressly provided otherwise in the immediately foregoing sentence, the occurrence of an event of Cause shall constitute a "breach" for all purposes of determining applicable damages payable pursuant to this Agreement.

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*Section 10.13 <u>Relationship of Parties</u>*. Nothing in this Agreement shall be interpreted or construed as establishing between the parties a partnership, joint venture or other similar arrangement.

*Section 10.14 <u>Entire Agreement; No Third Party Beneficiaries</u>*. This Agreement (including the exhibits and schedules hereto) and the Ancillary Agreements are intended by the parties as a complete statement of the entire agreement and understanding of the parties with respect to the subject matter hereof, as well as all matters between the parties related to the subject matter herein or therein set forth, and supersedes any other agreements, representations, warranties, covenants, communications, or understandings, in each case whether oral or written (including electronic correspondence), that may have been made or entered into by or between the parties or any of their respective affiliates or agents relating in any way to the subject matter of this Agreement. This Agreement is made among, and for the benefit of, the parties hereto, and the parties do not intend to create any third-party beneficiaries hereby, and no other Person shall have any rights arising under, or interests in or to, this Agreement.

*Section 10.15 <u>Governing Law</u>*. Except with respect to matters referenced in <u>Section</u> <u>10.08(e)</u> (which shall be governed by and construed pursuant to the Federal Arbitration Act), this Agreement shall be governed by and construed in accordance with the laws of the State of New York (excluding New York choice-of-law principles that might call for the application of the law of another jurisdiction) as to all matters, including matters of validity, construction, effect, performance and remedies. Except as otherwise provided in <u>Section</u> <u>10.08(e)</u>, any action arising out of this Agreement or the rights and duties of the parties arising hereunder may be brought, if at all, only in the state or federal courts located in the United States District Court for the Northern District of Illinois or the County of Cook, Illinois, as applicable. Each party further agrees to waive any right to a trial by jury.

*Section 10.16 <u>Right of Set-Off</u>*. If (i) any party hereto shall be in default hereunder to any other party or (ii) [\*\*\*], then in any such case the non-defaulting party shall be entitled to set off from any payment owed by such non-defaulting party to the defaulting party hereunder any amount owed by the defaulting party to the non-defaulting party thereunder; *provided* that [\*\*\*]. Upon completion of any such set-off, [\*\*\*].

*Section 10.17 <u>Cooperation with Respect to Reporting</u>*. Contractor shall be responsible for filing all reports relating to its operations that arc required by the DOT, FAA or other applicable government agencies (other than any such reports for which United, where permitted by law, has assumed, by written notice to Contractor, the responsibility to file on Contractor's behalf), and Contractor shall promptly furnish United with copies of all such reports and such other available traffic and operating reports as United may request from time- to-time. Each of the parties hereto agrees to use its commercially reasonable efforts to cooperate with each other party in providing necessary data, to the extent in the possession of the first party, required by such other party in order to meet any reporting requirements to, or otherwise in connection with any filing with or provision of information to be made to, any regulatory agency or other Governmental Authority. If a party [\*\*\*]. Unless Contractor is otherwise notified by United in writing not less than [\*\*\*] prior to the filing deadline (the "**<u>Tarmac Delay Notice</u>**"), Contractor and United agree that United will file the DOT filing required under 49 U.S.C. 4230l(h) on Contractor's behalf. United will be liable for any fines assessed by the DOT attributable to United's failure to file this report by the deadline for such report, unless (i) that failure is caused by or otherwise results from Contractor's failure to provide United in a timely manner with the necessary data required by United in connection with the filing or (ii) United had provided the Tarmac Delay Notice specified above. The obligations under this <u>Section</u> <u>10.17</u> shall survive the termination of this Agreement.

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*Section 10.18 <u>United Owned Aircraft Lease; Delivery; Acceptance</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>United Owned Aircraft Lease</u>*. The following provisions shall apply to all United Owned Aircraft:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) At or prior to the time a United Owned Aircraft becomes subject to the terms of this Agreement, United and Contractor shall enter into a United Owned Aircraft Lease for such aircraft as an integral part of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Basic rent otherwise payable by Contractor to United pursuant to the United Owned Aircraft Lease with respect to each United Owned Aircraft shall be [\*\*\*] in accordance with the terms of the relevant United Owned Aircraft Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Upon the termination of each United Owned Aircraft Lease, Contractor shall comply with all of the provisions of the United Owned Aircraft Lease applicable at such time. [\*\*\*].

*Section 10.19 <u>Placement into Service</u>*. Prior to Contractor engaging a third party for any heavy maintenance, repair or overhaul with respect to any United Owned Aircraft operating under this Agreement [\*\*\*], Contractor shall [\*\*\*].

*Section 10.20 <u>Early Brake Release</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) United shall gather all Aircraft Communication and Reporting System (ACARS) data for each Covered Aircraft that has had its Airline Modifiable Interface (AMI) modified to capture such information relating to the measurement of the time periods elapsed (any such elapsed period, an "**<u>EBR Period</u>**") between aircraft brake release and aircraft wheel movement for departures of all Scheduled Flights as measured by ACARS included on all in-service Covered Aircraft. United shall gather such data under the same parameters for all United Express carriers operating E175 and New E175LR Tranche 1 aircraft whose aircraft technology allows for similar measurements. Subject to any confidentiality constraints imposed on United, Contractor shall have the right, upon reasonable request, to audit such data that United has gathered. [\*\*\*]

*Section 10.21 <u>Cumulative Remedies</u>*. Unless and to the extent as may be otherwise expressly stated in this Agreement (including, but not limited to, <u>Section</u> <u>2.01(d)</u>, <u>Section</u> <u>2.01(e)</u>, <u>Section</u> <u>2.01(h)(iii)</u>, <u>Section</u> <u>8.03(f)</u> and <u>Section</u> <u>8.03(g)</u>), no right or remedy conferred upon or reserved to Contractor or United by this Agreement is intended to be, nor shall be deemed, exclusive of any other right or remedy herein or by law or equity provided or permitted, but each will be cumulative of every other right or remedy.

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*Section 10.22* [\*\*\*]

*Section 10.23 <u>Force Majeure</u>*. Without prejudice to United's rights of termination set forth herein, neither party will be deemed to be in default or breach of this Agreement, in the event and to the extent that its delay or failure to perform as required under this Agreement is caused by a result of any Act of God, [\*\*\*] ("**<u>Force Majeure</u>**"); *provided* that (i) in the event of a Force Majeure that is a [\*\*\*], United shall not [\*\*\*], and (ii) in the event of a Labor Strike, [\*\*\*]. Each of the parties acknowledges that it may or may not realize the full economic or other benefits that it expects to realize from this Agreement and that any failure to realize any or all of such benefits in and of itself shall not constitute Force Majeure. The party affected by an event of Force Majeure, upon prompt written notice given to the other party, shall [\*\*\*].

*Section 10.24 <u>United Wifi</u>*. The parties shall comply with the terms and conditions set forth on <u>Exhibit S</u>.

*Section 10.25 <u>Certain Amendments to 2006 United Express Agreement</u>*. The parties hereby acknowledge and agree that all terms and conditions set forth in that certain United Express Agreement, dated as of December 28, 2006 (as amended thereafter, the "**<u>2006 United Express Agreement</u>**") relating to the Contractor Owned E175 Aircraft and the United Owned Aircraft are [\*\*\*]. The parties acknowledge and agree that, as of the "Effective Date" of the 2006 United Express Agreement, Appendix B (Fleet Plan) thereto was amended such that the expiration dates of the ERJ-170 aircraft were as set forth on <u>Schedule 2</u>.

*Section 10.26 <u>Manufacturer Guarantees</u>.* Contractor shall comply with all manufacturers' warranty and guaranty programs applicable to all Covered Aircraft (all such programs, the "**<u>Manufacturer Programs</u>**") and shall [\*\*\*]. Without limiting the foregoing in this <u>Section</u> <u>10.26</u> and without limiting any of Contractor's other obligations pursuant to this Agreement, in the event that any payment, amount, credit or other benefit (any such payment, amount, credit or benefit, a "**<u>Manufacturer Program Benefit</u>**") is [\*\*\*], then United and Contractor shall [\*\*\*].

*Section 10.27 <u>Punitive Damages</u>*. No party to this Agreement or any of its affiliates shall be liable to any other party hereto or any of its affiliates for claims for punitive, special or exemplary damages, arising out of or relating to this Agreement or the transactions contemplated hereby, regardless of whether a claim is based on contract, tort (including negligence), strict liability, violation of any applicable deceptive trade practices act or similar law or any other legal or equitable principle, and each party releases the others and their respective affiliates from liability for any such damages. No party shall be entitled to rescission of this Agreement as a result of breach of any other party's representations, warranties, covenants or agreements, or for any other matter; *provided* that nothing in this <u>Section</u> <u>10.27</u> shall restrict the right of any party to exercise any right to terminate this Agreement pursuant to any other provision in this Agreement or any rights or remedies at law or in equity specifically relating to the exercise of any such termination right.

[*Signature Page to Follow*]

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IN WITNESS WHEREOF, the parties hereto have caused this Capacity Purchase Agreement to be duly executed and delivered as of the date and year first written above.

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| | |
|:---|:---|
| **UNITED AIRLINES, INC.** | **UNITED AIRLINES, INC.** |
| By: | /s/ Gerald Laderman |
| Name: | Gerald Laderman |
| Title: | EVP and CFO |
| **REPUBLIC AIRWAYS INC.** | **REPUBLIC AIRWAYS INC.** |
| By: | /s/ Matt J. Koscal |
| Name: | Matt J. Koscal |
| Title: | Executive Vice President, CAO |
| **REPUBLIC AIRWAYS HOLDINGS INC.** | **REPUBLIC AIRWAYS HOLDINGS INC.** |
| By: | /s/ Matt J. Koscal |
| Name: | Matt J. Koscal |
| Title: | Executive Vice President, CAO |

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Signature Page to

Capacity Purchase Agreement

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**<u>SCHEDULE 1</u>**

**Covered Aircraft** 

**<u>Table 1: Covered Aircraft – Contractor Owned E175 Aircraft</u>**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Covered Aircraft Number** | **Aircraft Type** | **Tail<br>Number** | **ESN#1** | **ESN#2** | **Actual In-<br>Service Date** | **Scheduled<br>Expiration Date** |
| 1 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 2 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 3 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 4 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 5 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 6 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 7 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 8 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 9 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 10 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 11 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 12 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 13 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 14 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 15 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 16 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |

---

**<u>Table 2: Covered Aircraft – United Owned Aircraft</u>**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Covered Aircraft Number** | **Aircraft Type** | **Tail<br>Number** | **ESN#1** | **ESN#2** | **Actual In-<br>Service Date** | **Scheduled<br>Expiration Date** |
| 1 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 2 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 3 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 4 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 5 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 6 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 7 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 8 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 9 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 10 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 11 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 12 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |

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Schedule 1-1

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Covered Aircraft Number** | **Aircraft Type** | **Tail<br>Number** | **ESN#1** | **ESN#2** | **Actual In-**<br>**Service Date<sup>1</sup>** | **Scheduled<br>Expiration Date** |
| 1 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 2 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 3 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 4 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| 5 | [\*\*\*] |  |  |  | [\*\*\*] | [\*\*\*] |
| 6 | [\*\*\*] |  |  |  | [\*\*\*] | [\*\*\*] |
| 7 | [\*\*\*] |  |  |  | [\*\*\*] | [\*\*\*] |
| 8 | [\*\*\*] |  |  |  | [\*\*\*] | [\*\*\*] |
| 9 | [\*\*\*] |  |  |  | [\*\*\*] | [\*\*\*] |
| 10 | [\*\*\*] |  |  |  | [\*\*\*] | [\*\*\*] |
| 11 | [\*\*\*] |  |  |  | [\*\*\*] | [\*\*\*] |
| 12 | [\*\*\*] |  |  |  | [\*\*\*] | [\*\*\*] |
| 13 | [\*\*\*] |  |  |  | [\*\*\*] | [\*\*\*] |
| 14 | [\*\*\*] |  |  |  | [\*\*\*] | [\*\*\*] |
| 15 | [\*\*\*] |  |  |  | [\*\*\*] | [\*\*\*] |
| 16 | [\*\*\*] |  |  |  | [\*\*\*] | [\*\*\*] |
| 17 | [\*\*\*] |  |  |  | [\*\*\*] | [\*\*\*] |
| 18 | [\*\*\*] |  |  |  | TBD | IS+12 years |
| 19 | [\*\*\*] |  |  |  | TBD | IS+12 years |
| 20 | [\*\*\*] |  |  |  | TBD | IS+12 years |
| 21 | [\*\*\*] |  |  |  | TBD | IS+12 years |
| 22 | [\*\*\*] |  |  |  | TBD | IS+12 years |
| 23 | [\*\*\*] |  |  |  | TBD | IS+12 years |
| 24 | [\*\*\*] |  |  |  | TBD | IS+12 years |
| 25 | [\*\*\*] |  |  |  | TBD | IS+12 years |
| 26 | [\*\*\*] |  |  |  | TBD | IS+12 years |
| 27 | [\*\*\*] |  |  |  | TBD | IS+12 years |
| 28 | [\*\*\*] |  |  |  | TBD | IS+12 years |
| 29 | [\*\*\*] |  |  |  | TBD | IS+12 years |
| 30 | [\*\*\*] |  |  |  | TBD | IS+12 years |
| 31 | [\*\*\*] |  |  |  | TBD | IS+12 years |
| 32 | [\*\*\*] |  |  |  | TBD | IS+12 years |
| 33 | [\*\*\*] |  |  |  | TBD | IS+12 years |
| 34 | [\*\*\*] |  |  |  | TBD | IS+12 years |
| 35 | [\*\*\*] |  |  |  | TBD | IS+12 years |
| 36 | [\*\*\*] |  |  |  | TBD | IS+12 years |
| 37 | [\*\*\*] |  |  |  | TBD | IS+12 years |
| 38 | [\*\*\*] |  |  |  | TBD | IS+12 years |

---

<sup>1</sup> These dates are indicative dates only. Promptly following the date on which each New E175LR Tranche 1 Covered Aircraft actually commences revenue service flight operations under this Agreement, the parties shall update Table 3 to Schedule 1 to reflect such date as the Actual In-Service Date for such aircraft, and shall confirm such update in writing pursuant to a communication (which may be via email) in compliance with Section 10.02. 

Schedule 1-2

------

**<u>Table 3: Covered Aircraft – New E175LR Tranche 1 Aircraft</u>**

The following provisions shall apply to the New E175LR Tranche 1 Covered Aircraft:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No later than [\*\*\*] prior to the scheduled delivery month for each New E175LR Tranche 1 Covered Aircraft as set
forth on <u>Table 3</u> to <u>Schedule 1</u>, or as soon as practically possible for any of the New E175LR Tranche 1 Covered Aircraft, as set forth in <u>Table 3</u> to <u>Schedule</u> <u>1</u> (the "  **<u>New E175LR Tranche</u> <u>1 Scheduled Delivery Date</u>** "), Contractor and United shall meet to discuss the dates that are likely to be selected as the committed in-service date for each
of the New E175LR Tranche 1 Covered Aircraft (the "  **<u>New E175LR Tranche</u> <u>1 Committed In-Service Date</u>** "), it being understood that (x) such
discussions shall not be binding for purposes of selecting the actual New E175LR Tranche 1 Committed In-Service Date pursuant to clause (e) below, and (y) such dates shall be used by Contractor
and United in anticipating aircraft available to schedule and with respect to any applicable Final Monthly Schedule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Contractor shall [\*\*\*] to provide United with notice regarding the delivery status of each New E175LR Tranche 1
Covered Aircraft from time to time in advance of the New E175LR Tranche 1 Scheduled Delivery Date with respect to such New E175LR Tranche 1 Covered Aircraft, including information relating to the commencement of the delivery inspection period,
delays in delivery, or otherwise relating to the delivery of such aircraft.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) [\*\*\*] prior to the New E175LR Tranche 1 Scheduled Delivery Date for each of the New E175LR Tranche 1 Covered
Aircraft as set forth on <u>Table 3</u> to <u>Schedule 1</u>, and reasonably frequently from time to time thereafter, Contractor shall provide United with notice regarding the delivery status of such New E175LR Tranche 1 Covered Aircraft,
including information relating to the commencement of the delivery inspection period (which notice is anticipated to be given no later than [\*\*\*] prior to actual delivery date of such aircraft), delays in delivery, or otherwise relating to the
delivery of such aircraft.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) With respect to each New E175LR Tranche 1 Covered Aircraft, Contractor shall provide a final notice of the
actual delivery date of any New E175LR Tranche 1 Covered Aircraft to United no later than [\*\*\*] thereafter, and which determination shall be confirmed in writing by the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Following the determination of the actual delivery date for an New E175LR Tranche 1 Covered Aircraft pursuant
to <u>clause (d)</u> above, the parties shall determine an New E175LR Tranche 1 Committed In-Service Date, which shall be not later than [\*\*\*].

Schedule 1-3

------

**<u>Table 4: Spare Engines</u>**

---

| | | | |
|:---|:---|:---|:---|
| **Spare Engine Number** | **ESN** | **Actual In-Service Date** | **Scheduled Expiration Date** |
| 1 |  |  |  |
| 2 |  |  |  |
| 3 |  |  |  |
| 4 |  |  |  |
| 5 |  |  |  |
| 6 |  |  |  |
| 7 |  |  |  |
| 8 |  |  |  |
| 9 |  |  |  |
| 10 |  |  |  |

---

Schedule 1-4

------

**<u>SCHEDULE 2</u>**

**Amended Expiration Dates for Expiring Aircraft under 2006 United Express Agreement** 

Attached.

Schedule 2-1

------

**<u>SCHEDULE 3</u>**

**Compensation** 

[\*\*\*]

Schedule 3-2

------

**<u>EXHIBIT A</u>**

**Definitions** 

"**<u>2006 United Express Agreement</u>**" – is defined in <u>Section</u> <u>10.25</u>.

"**<u>AAA</u>**" – is defined in <u>Section</u> <u>8.03(e)</u>.

"**<u>Act of God</u>**" – means an unpreventable natural catastrophe resulting in material consequences, such, without limitation, as an earthquake, a tidal wave, a volcanic eruption, or a tornado (it being understood that [\*\*\*] shall not constitute an Act of God). For the avoidance of doubt, the parties agree that the term "Act of God" shall only be relevant in this Agreement specifically where it is used.

"**<u>Actual In-Service Date</u>**" – means, with respect to any specific Covered Aircraft, the date on which such aircraft first enters service under this Agreement (it being understood that, with respect to the Contractor Owned E175 Aircraft and the United Owned Aircraft, the Actual In-Service Dates occurred prior to the execution and delivery of this Agreement).

"**<u>Agreement</u>**" – is defined in the preamble.

[\*\*\*]

"**<u>Amendment 20</u>**" – means that certain Twentieth Amendment to the E170 CPA dated as of the Effective Date of this Agreement.

"**<u>Ancillary Agreements</u>**" – means all of the United Owned Aircraft Leases entered into by Contractor and United in accordance with <u>Section</u> <u>10.18</u>, the Parent Guarantee, and each of the other agreements entered into by United and Contractor pursuant hereto, together with all amendments, exhibits, schedules and annexes thereto.

[\*\*\*]

[\*\*\*]

"**<u>Applicable Airport</u>**" – means any airport into or from which Scheduled Flights are scheduled to arrive or depart.

"**<u>Approved Work Scope</u>**" – is defined in <u>Section</u> <u>2.04</u>.

"**<u>Available Covered Aircraft</u>**" – means, as of any date of determination, a Covered Aircraft available to schedule for revenue service pursuant to <u>Section</u> <u>2.01(c)</u>, excluding the then-current number of Spare Aircraft and aircraft not available due to heavy maintenance, overhauls and modifications and the continuous maintenance line.

"**<u>Aviation Insurance</u>**" – means any aviation insurance pursuant to <u>Section</u> <u>6.01(a)</u>.

[\*\*\*]

"**<u>Base Compensation</u>**" – is defined in <u>Schedule</u> <u>3</u>.

Exhibit A-1

------

"**<u>Base Compensation Rates</u>**" – means the rates set forth on <u>Appendix 1</u> to <u>Schedule</u> <u>3</u> in respect of Base Compensation.

"**<u>BIS</u>**" – means the U.S. Department of Commerce's Bureau of Industry and Security.

"**<u>Business Day</u>**" – means each Monday, Tuesday, Wednesday, Thursday and Friday unless such day shall be a day when financial institutions in New York, New York or Houston, Texas are authorized by law to close.

[\*\*\*]

"**<u>Cause</u>**" – means (i) the suspension for [\*\*\*] or longer as a result of the revocation of Contractor's authority to operate as a scheduled airline, (ii) the ceasing of Contractor's operations as a scheduled airline, other than [\*\*\*]; (iii) the occurrence of a Labor Strike that shall have continued for [\*\*\*] or longer, (iv) a willful or intentional material breach of this Agreement by Contractor that [\*\*\*], (v) Contractor knowingly [\*\*\*], or (vi) a breach of any of [\*\*\*].

"**<u>CFO</u>**" – is defined in <u>Section</u> <u>3.04</u>.

"**<u>Change of Control</u>**" – means, with respect to Contractor or Parent (each of the foregoing being referred to in this definition as "Contractor"):

(i) Contractor consolidates with, or merges with or into, a Prohibited Person or conveys, transfers, leases or
otherwise disposes of all or substantially all of its assets to a Prohibited Person, or a Prohibited Person consolidates with, or merges with or into, Contractor in any such event pursuant to a transaction in which the voting securities of
Contractor are converted into or exchanged for cash or securities of a Prohibited Person, except where the holders of voting securities of Contractor immediately prior to such transaction own not less than [\*\*\*] of the voting securities of the
surviving or transferee corporation immediately after such transaction, in each case other than any such transaction between Contractor on the one hand, and United and/or any of its Subsidiaries on the other;

(ii) the direct or indirect acquisition by any Person or "group" (as such term is used in
Section 13(d) of the Securities Exchange Act of 1934), resulting in such Person or group having a total beneficial ownership of more than [\*\*\*];

(iii) the liquidation or dissolution of Contractor in connection with which Contractor ceases operations as an air
carrier;

(iv) the sale, transfer or other disposition of all or substantially all of the airline assets of Contractor on a
consolidated basis directly or indirectly to a Prohibited Person or its affiliate, whether in a single transaction or a series of related transactions; or

(v) the execution of bona fide definitive agreements, the consummation of the transactions contemplated by which
would result in a transaction being described in any of the immediately preceding clauses (other than any agreement which expressly provides that the consummation of the transaction contemplated by such agreement is conditioned upon the prior
written consent of United under this Agreement).

Exhibit A-2

------

"**<u>Claim</u>**" – is defined in <u>Section</u> <u>10.08(a)</u>.

"**<u>Compliance Dispute</u>**" includes (a) any threatened, pending or completed action, suit, proceeding, penalty, or alternative dispute resolution mechanism, whether civil, criminal, administrative, arbitrative, investigative or other, and whether made pursuant to federal, state or other law; or (b) any inquiry, hearing or investigation that Indemnitee determines might lead to the institution of any such action, suit, proceeding, penalty, or alternative dispute resolution mechanism.

"**<u>Contractor</u>**" – is defined in the preamble.

"**<u>Contractor Engines</u>**" – means (i) each of the engines associated with each Covered Aircraft as listed in Schedule 1, as may be amended or supplemented by the parties from time-to-time, but excluding any United Engines, and (ii) each of the spare engines listed in Table 4 of Schedule 3.

"**<u>Contractor Fleet</u>**" – means Embraer aircraft constituting all or part of the Covered Aircraft.

"**<u>Contractor Owned E175 Aircraft</u>**" means, collectively, the aircraft set forth on <u>Table 1</u> to <u>Schedule 1</u>. For the avoidance of doubt, the United Owned Aircraft are mutually exclusive to the New E175LR Tranche 1 Covered Aircraft and the Contractor Owned E175 Aircraft.

"**<u>Contractor Services</u>**" – means (i) Regional Airline Services and (ii) any other services provided by Contractor pursuant to this Agreement or any Ancillary Agreement.

"**<u>Contractor Unauthorized Obligation</u>**" – is defined as <u>Section</u> <u>7.05(a)</u>.

"**<u>Controllable Cancellation</u>**" – means a cancellation of a Scheduled Flight that is not an Uncontrollable Cancellation; *provided, however*, that [\*\*\*].

"**<u>Controllable Completion Factor</u>**" – means, for any period of determination, the number of actual departures completed divided by the number of scheduled departures, excluding [\*\*\*].

"**<u>Controllable Delay</u>**" – means a delay categorized as Airport Operations, Flight Operations, Technical Operations, or Technology, which are within Contractor's control.

"**<u>Controllable On-Time Departure</u>**" – means a flight departing precisely on or before the scheduled departure time during such period.

"**<u>Controllable On-Time Departure Rate</u>**" – means, for any period of determination, the percentage of flights that are Controllable On-Time Departures; *provided* that [\*\*\*].

"**<u>Covered Aircraft</u>**" – means all aircraft listed on <u>Schedule</u> <u>1</u> (as such schedule is amended from time to time pursuant to the provisions of this Agreement), as adjusted from time to time for withdrawals pursuant to <u>Article</u> <u>VIII</u>.

"**<u>CPA Records</u>**" – is defined in <u>Section</u> <u>3.04</u>.

[\*\*\*]

"**<u>Cure Quantity</u>**" means [\*\*\*].

Exhibit A-3

------

"**<u>DDTC</u>**" – means the U.S. Department of State's Directorate of Defense Trade Controls.

"**<u>DOT</u>**" – means the United States Department of Transportation.

"**<u>Drinking Water Requirements</u>**" – is defined in <u>Section</u> <u>4.14(h)</u>.

"**<u>E170 CPA</u>**" – means that certain United Express Agreement dated as of December 28, 2006, United Contract #172884 (together with all amendments thereto; *provided* that amendments 2, 3 and 9 are intentionally omitted).

"**<u>E175 Covered Aircraft</u>**" – means, collectively, all of the Embraer E175 aircraft listed on <u>Tables</u> <u>1</u> and <u>2</u> of <u>Schedule 1</u> (as such schedule is amended from time to time pursuant to the provisions of this Agreement), as adjusted from time to time for withdrawals pursuant to <u>Article</u> <u>VIII</u>, or any acceptable substitute aircraft agreed to in writing by United and presented for Regional Airline Services by Contractor.

"**<u>EBR Block Hour Rate</u>**" means, as applicable, (i) for calendar year 2021, [\*\*\*], (ii) for the period commencing January 1, 2022 and ending on October 15, 2022, [\*\*\*], and (iii) for the period commencing October 16, 2022 and ending on December 31, 2022, [\*\*\*]; provided that [\*\*\*].

"**<u>EBR Goal</u>**" – is defined in <u>Section</u> <u>10.20(b)</u>.

"**<u>EBR Performance</u>**" – is defined in <u>Section</u> <u>10.20(b)</u>.

"**<u>EBR Period</u>**" – is defined in <u>Section</u> <u>10.20(a)</u>.

"**<u>Effective Date</u>**" – is defined in the preamble.

"**<u>Embraer</u>**" – means Empresa Brasileira de Aeronautica S.A., a Brazilian corporation with its principal place of business in Sao Paulo, Brazil.

"**<u>Engines</u>**" – means all Contractor Engines and United Engines.

"**<u>Engine LLP</u>**" – is defined in <u>Section</u> <u>4.12</u>.

"**<u>Engine Maintenance Account</u>**" – is defined in <u>Section</u> <u>4.19(b)</u>.

"**<u>Environmental Laws</u>**" means all applicable federal, state, local and foreign laws and regulations, guidance documents and policy statements of the Centers for Disease Control, the Occupational Health and Safety Administration, the Department of Transportation, and the Federal Aviation Administration, as well as any airport rules or any other applicable regulations, policies, or lease requirements relating to the prevention of pollution, protection of the environment or occupational health and safety, or remediation of environmental contamination, including laws, regulations and rules relating to emissions to the air, discharges to surface and subsurface soil and waters, regulation of potable or drinking water, the use, storage, release, disposal, transport or handling of Hazardous Materials, protection of endangered species, and aircraft noise, vibration, exhaust and over flight.

Exhibit A-4

------

[\*\*\*]

"**<u>FAA</u>**" – means the United States Federal Aviation Administration.

"**<u>FOD</u>**" – is defined in <u>Section</u> <u>4.12</u>.

"**<u>Final Monthly Schedule</u>**" – means the final schedule of Scheduled Flights for the next calendar month delivered by United to Contractor pursuant to <u>Section</u> <u>2.01(c)</u>.

"**<u>Force Majeure</u>**" – is defined in <u>Section</u> <u>10.23</u>.

"**<u>Fuel Services</u>**" – means the act of putting fuel product into an aircraft and taking fuel product out of an aircraft, and any other incidental tasks as are customarily required from time to time in connection therewith; *provided* that the cost of aircraft fuel shall not be included as a cost of Fuel Services.

"**<u>GAAP</u>**" – means U.S. generally accepted accounting principles, consistently applied.

"**<u>GDP</u>**" – is defined in <u>Section</u> <u>2.08</u>.

[\*\*\*].

"**<u>Governmental Authority</u>**" – means any federal, state, local, maritime, municipal, or other government; any governmental, regulatory or administrative agency, commission, body, or other authority exercising or entitled to exercise any administrative, executive, judicial, legislative, regulatory or taxing authority or power; and any court or governmental tribunal having or asserting jurisdiction.

"**<u>Governmental Entity</u>**" – means any United States or foreign (i) federal, state, local, municipal or other government, (ii) governmental or quasi-governmental entity of any nature (including any governmental agency, branch, department, official, or entity and any court or other tribunal) or (iii) body exercising, or entitled to exercise any administrative, executive, judicial, legislative, police, regulatory, or taxing authority or power of any nature, including any arbitral tribunal.

"**<u>Ground Handling Services</u>**" – means the ground handling services performed in connection with regional and/or mainline airline services, which services will typically (but not necessarily) include the following: (i) gate check-in activities, (ii) passenger enplaning/deplaning activities, (iii) sky cap and wheelchair services, (iv) aircraft loading/unloading services, (v) passenger ticketing, (vi) jetbridge maintenance, (vii) janitorial services, (viii) deicing and glycol services, (ix) pushback, (x) airstarts, (xi) aircraft overnight cleaning, including lavatory service and water service, (xii) aircraft cleaning and lavatory service during the operating day, and (xiii) catering supplies and paper goods.

"**<u>GSE</u>**" – is defined in <u>Section</u> <u>4.17(c)</u>.

Exhibit A-5

------

"**<u>Hazardous Materials</u>**" – means any substances, whether solid, liquid or gaseous, which are listed and/or regulated as hazardous, toxic, or similar terminology under any Environmental Laws or which otherwise cause or pose threat or hazard to human health, safety or the environment, including petroleum and petroleum products.

"**<u>Hub Airport</u>**" – means, as of any date of determination, (i) [\*\*\*], (ii) [\*\*\*], (iii) [\*\*\*]and (iv) any other airport at which Contractor [\*\*\*].

"**<u>IATA</u>**" – is defined in <u>Section</u> <u>4.05</u>.

"**<u>Identification</u>**" – means the United Marks, the aircraft livery set forth on <u>Exhibit</u> <u>H</u>, the United flight code and other trade names, trademarks, service marks, graphics, logos, employee uniform designs, distinctive color schemes and other identification selected by United in its sole discretion for the Regional Airline Services to be provided by Contractor, whether or not such identification is copyrightable or otherwise protected or protectable under federal law.

[\*\*\*]

"**<u>Indemnified Party</u>**" – is defined in <u>Section</u> <u>7.03</u>.

"**<u>Indemnifying Party</u>**" – is defined in <u>Section</u> <u>7.03</u>.

"**<u>Indemnity Notice</u>**" – is defined in <u>Section</u> <u>7.03</u>

"**<u>Initial Proposed Monthly Schedule</u>**" – is defined in <u>Section</u> <u>2.01(c)(ii)</u>.

"**<u>Invoiced Amount</u>**" – is defined in <u>Section</u> <u>3.05(a)</u>.

"**<u>IOSA</u>**" – is defined in <u>Section</u> <u>4.05</u>.

"**<u>Labor Strike</u>**" – means a labor dispute, as such term is defined in 29 U.S.C. Section 113(c) involving Contractor and some or all of its employees, which [\*\*\*].

"**<u>Law</u>**" – means any law, rule, regulation, code, ordinance and order of a Governmental Entity.

"**<u>Losses</u>**" – means any and all expenses, damages, losses, liabilities, judgments, fines, penalties (whether civil, criminal or other), amounts paid or payable in settlement, and all other charges paid or payable in connection with investigating, defending, being a witness in or participating in (including on appeal), or preparing to defend, be a witness or participate in, any Compliance Dispute.

"**<u>Manufacturer Program Benefit</u>**" – is defined in <u>Section</u> <u>10.26</u>.

"**<u>Manufacturer Programs</u>**" – is defined in <u>Section</u> <u>10.26</u>.

"**<u>Net Monthly Payment Amount</u>**" – is defined in <u>Section</u> <u>3.05(b)</u>.

"**<u>New E175LR Tranche 1 Committed In-Service Date</u>**" – is defined in <u>Schedule 1</u>.

Exhibit A-6

------

"**<u>New E175LR Tranche 1 Covered Aircraft</u>**" – means all of the Embraer E175LL aircraft listed on <u>Schedule 1</u> (as such schedule is amended from time to time pursuant to the provisions of this Agreement), as adjusted from time to time for withdrawals pursuant to <u>Article</u> <u>VIII</u>, or any acceptable substitute aircraft agreed to in writing by United and presented for Regional Airline Services by Contractor. For the avoidance of doubt, the E175LL Covered Aircraft are mutually exclusive to the Contractor Owned E175 Aircraft and the United Owned Aircraft.

"**<u>New E175LR Tranche 1 Scheduled Delivery Date</u>**" – is defined in <u>Schedule 1</u>.

[\*\*\*]

"**<u>OFAC</u>**" – means the U.S. Department of Treasury's Office of Foreign Asset Control.

[\*\*\*]

"**<u>Other Carrier</u>**" – is defined in <u>Section</u> <u>5.07</u>.

"**<u>Other United Express Carriers</u>**" shall mean all contractors providing regional airline services to United under a capacity purchase agreement (or similar agreement).

[\*\*\*]

"**<u>Panel</u>**" – is defined in <u>Section</u> <u>10.08(d)</u>.

"**<u>Parent</u>**" – is defined in the preamble.

"**<u>Parent Guarantee</u>**" – means that certain guarantee delivered by Republic Airways Holdings Inc. concurrently with the execution and delivery of this Agreement, in the form attached hereto as <u>Exhibit Q</u>.

"**<u>Permitted Actions</u>**" – is defined in <u>Section</u> <u>4.13(a)</u>.

"**<u>Person</u>**" – means an individual, partnership, limited liability company, corporation, joint stock company, trust, estate, joint venture, association or unincorporated organization, or any other form of business or professional entity.

"**<u>Pilot Rate Increase Terms</u>**" – is defined in <u>Section</u> <u>5.07</u>.

[\*\*\*]

"**<u>Prohibited Person</u>**" – means [\*\*\*].

"**<u>Proposed Final Monthly Schedule</u>**" – is defined in <u>Section</u> <u>2.01(c)(iii)</u>.

"**<u>Purchase Date</u>**" – is defined in <u>Section</u> <u>10.22(a)</u>.

"**<u>Qualifying PBH</u>**" – is defined in <u>Section</u> <u>4.19(a)</u>.

"**<u>QT Notice</u>**" – is defined in <u>Section</u> <u>5.06(a)</u>.

Exhibit A-7

------

"**<u>Qualifying Transaction</u>**" – means any (a) merger of Contractor or Parent with another Person, (b) sale, transfer or lease by Contractor of substantially all its assets, rights or powers (other than in the ordinary course business), (c) issuance or sale of stock in Contractor or Parent representing [\*\*\*] or more of Contractor's beneficial ownership or voting control (other than the issuance or sale of stock in Contractor in a registered public offering under the Securities Act of 1933, as amended) in a single transaction or a series of related transactions, or (e) the sale, transfer, disposition or encumbrance of Contractor's FAA-issued operating certificate. Notwithstanding the foregoing, however, (i) solely with respect to the foregoing <u>clause (a)</u>, a corporate reorganization that does not result in a change of over [\*\*\*] in the ultimate beneficial ownership or voting control of Contractor will not be considered a "Qualifying Transaction", (ii) solely with respect to the foregoing <u>clause (a)</u>, a transaction in which Contractor or Parent is the surviving entity will not be a "Qualifying Transaction" so long as the surviving entity agrees in writing to be bound by all of the terms and conditions contained in this Agreement, and (iii) solely with respect to the foregoing <u>clause (b)</u>, a "Qualifying Transaction" will not be triggered solely by the sale or disposition by Contractor of its aircraft or assets that either (x) are being replaced with other assets of a similar type which are at least of equal quality and utility to Contractor in carrying on its day to day business and meeting its obligations under this Agreement, or (y) have become worn out or obsolete.

"**<u>Reasonable Operating Constraints</u>**" – means the requirements set forth on <u>Exhibit</u> <u>R</u>.

"**<u>Regional Airline Services</u>**" – means the provisioning by Contractor to United of Scheduled Flights and related ferrying using the Covered Aircraft in accordance with this Agreement.

"**<u>Related Agreements</u>**" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Reciprocal Interline Agreement/Space Available Employee and Eligible Travel Agreement (United Contract No. 165980)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) United Express Positive Space Travel Agreement (United Contract No. 165979); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Emergency Response Agree1ment (United Contract No. 165981).

[\*\*\*]

"**<u>Sanctions</u>**" – means any restriction imposed by a Governmental Entity on trade, financial dealings or other transactions with any person, territory or country, including the restrictions administered by OFAC, BIS, and/or DDTC, to the extent such restriction is applicable to a Party to this Agreement; compliance with a Sanctions includes avoidance of acts or transactions that would expose a Party to potential designation as a target of a Sanctions or to punitive measures including fines or legal proceedings.

"**<u>Scheduled Flight</u>**" – is defined in <u>Section</u> <u>2.01(c)(i)</u>.

"**<u>Scheduled In-Service Date</u>**" – means, as to an New E175LR Tranche 1 Covered Aircraft, the date set forth under the column entitled "Scheduled In-Service Date" as set forth on <u>Table 3</u> of <u>Schedule 1</u>.

Exhibit A-8

------

"**<u>Spare Aircraft</u>**" – means any Covered Aircraft that is designated by Contractor as spare aircraft pursuant to <u>Section</u> <u>2.01(i)</u>, which may be used by Contractor to replace another aircraft in the operation of a Scheduled Flight that otherwise would be cancelled or as otherwise provided in <u>Section</u> <u>2.01(i)</u>.

"**<u>Staffing Incapacity</u>**" – is defined in <u>Section</u> <u>2.01(c)(ii)</u>.

"**<u>Subject Schedule</u>**" – is defined in <u>Section</u> <u>2.01(f)</u>.

"**<u>Subsidiary</u>**" – means, as to any Person, (a) any corporation more than [\*\*\*] of whose stock of any class or classes having by the terms thereof ordinary voting power to elect a majority of the directors of such corporation (irrespective of whether or not at the time, any class or classes of such corporation shall have or might have voting power by reason of the happening of any contingency) is at the time owned by such Person directly or indirectly through Subsidiaries and (b) any partnership, association, joint venture, limited liability company, joint stock company or any other form of business or professional entity, in which such Person directly or indirectly through Subsidiaries has more than [\*\*\*] equity interest at any time.

"**<u>System Flight Disruption</u>**" – means the failure by Contractor to complete at least [\*\*\*] of the aggregate Scheduled Flights in any [\*\*\*], or at least [\*\*\*] of the aggregate Scheduled Flights in any [\*\*\*] period, in each case [\*\*\*].

"**<u>Tarmac Delay Notice</u>**" – is defined in <u>Section</u> <u>10.17</u>.

"**<u>Term</u>**" – has the meaning set forth in <u>Section</u> <u>8.01(a)</u>, as earlier terminated pursuant to <u>Section</u> <u>8.02</u>, if applicable, and any Wind-Down Period.

"**<u>Terminal Facilities</u>**" – means all terminal facilities and spaces leased, subleased or otherwise retained or used by a party at an Applicable Airport, including all baggage makeup areas, inbound baggage areas and other terminal facilities.

"**<u>Termination Date</u>**" – means the date of early termination of this Agreement, as provided in a notice delivered from one party to the others pursuant to <u>Section</u> <u>8.02</u>, or, if no such early termination shall have occurred, the date of the end of the Term.

"**<u>TSA</u>**" – means the United States Transportation Security Administration.

"**<u>Uncontrollable Cancellation</u>**" – means a cancellation of a Scheduled Flight that is solely weather-related, or ATC-related, or a United Cancelled Flight as described in the first paragraph of Section 2.01(c).

"**<u>Uncontrollable Delay</u>**" – means a delay of a Scheduled Flight for any reason that, if it resulted in the cancellation of such flight, would constitute an Uncontrollable Cancellation.

"**<u>United</u>**" – is defined in the preamble.

[\*\*\*]

Exhibit A-9

------

"**<u>United Cancelled Flight</u>**" – is defined in <u>Section</u> <u>2.01(c)(i).</u>

"**<u>United Cargo Program</u>**" – means United's "QuickPak" and "Petsafe" programs and/or any additional or replacement cargo program implemented by United from time to time, pursuant to which: (i) Contractor shall accept for carriage all baggage and shipments, whether from the ticket counter or cargo facility, that are permitted under United's DOT and FAA approved Dangerous Goods ("DG") management program, (ii) Contractor shall have access to United's required training records and DG procedures and/or forms as necessary to permit Contractor to integrate such procedures into its existing flight crew training and acceptance procedures, (iii) Contractor shall accept and maintain compliance with United's Hazardous Training Program for Scheduled Flights, and any training in connection therewith may be utilized to meet Contractor's requirements under 14 CFR 121.1001-1007, Subpart Z, and (iv) Contractor shall be permitted to transport its aircraft parts which are shipped as Company Material (COMAT) on Scheduled Flights, which shipments shall be tendered and/or accepted for shipment only by United's employees or agents who have satisfactorily completed United's required DG training and are authorized to perform such tendering and/or acceptance functions.

"**<u>United Directed Charter Flights</u>**" – is defined in <u>Section</u> <u>2.01(g)</u>.

"**<u>United Engine</u>**" – means any of the engines associated with the Covered Aircraft listed on <u>Table</u> <u>2</u> of <u>Schedule 1</u>.

"**<u>United Fuel Efficiency Expenses</u>**" means any expenses incurred or reimbursable (subject to pre-approval) by United under the terms of any fuel efficiency program entered into pursuant to <u>Section</u> <u>4.11</u> for the development, implementation or management of such program by Contractor.

"**<u>United Maintenance</u>**" – is defined in <u>Section</u> <u>10.19</u>.

"**<u>United Marks</u>**" – is defined in <u>Exhibit</u> <u>G</u>.

"**<u>United Owned Aircraft</u>**" means, collectively, the Embraer E175 aircraft that are owned by United and leased to Contractor, all of which are set forth in <u>Table 2</u> to <u>Schedule 1</u>. For the avoidance of doubt, the United Owned Aircraft are mutually exclusive to the New E175LR Tranche 1 Covered Aircraft and the Contractor Owned E175 Aircraft.

"**<u>United Owned Aircraft Lease</u>**" means those certain aircraft leases listed on <u>Exhibit C</u>.

"**<u>United's Parent</u>**" – is defined in <u>Section</u> <u>7.01</u>.

"**<u>United ROFR</u>**" is defined in <u>Section</u> <u>5.06(a)</u>.

"**<u>United Unauthorized Obligation</u>**" – is defined in <u>Section</u> <u>7.05(b)</u>.

"**<u>Wind-Down Period</u>**" – means the period after the Termination Date and until the later to occur of (x) the time when all Covered Aircraft have been withdrawn from the capacity purchase provisions of this Agreement and (y) the time when the last Covered Aircraft subject to a United Owned Aircraft Lease has been returned to United (or its designee).

Exhibit A-10

------

"**<u>Wind-Down Schedule</u>**" – means the schedule, determined as provided in <u>Article</u> <u>VIII</u> of this Agreement, for Covered Aircraft to be either (x) in the case of aircraft not subject to a United Owned Aircraft Lease, withdrawn from the capacity purchase provisions of this Agreement or (y) in the case of aircraft subject to a United Owned Aircraft Lease, returned to United (or its designee).

Exhibit A-11

------

**<u>EXHIBIT B</u>**

**[\*\*\*]** 

[\*\*\*]

Exhibit B-1

------

**<u>EXHIBIT C</u>**

**United Owned Aircraft Leases** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Aircraft** | **Lease Title** | **Date** | **Lessor** | **Lessee** |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |

---

Exhibit C-1

------

**<u>EXHIBIT D</u>**

**Terms of Codeshare Arrangements** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. *<u>Contractor's use of UA code</u>*. During the Term of the Agreement, United shall place its designator code, "UA", on all Scheduled Flights operated by Contractor. United may suspend the display of its code on flights operated by Contractor if Contractor is in breach of any of its safety-related obligations, or material breach of any of its operational obligations, under the Agreement during the period that such breach continues. All Contractor operated flights that display the UA code are referred to herein as "UA\* Flights".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. *<u>Contractor's display of UA code</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All UA\* Flights will be included in the schedule, availability and fare displays of all computerized
reservations systems in which United and Contractor participate, the Official Airline Guide (to the extent agreed upon) and United's and Contractor's internal reservation systems, under the UA code, to the extent possible. United and
Contractor will take the appropriate measures necessary to ensure the display of the schedules of all UA\* Flights in accordance with the preceding sentence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) United and Contractor will disclose and identify the UA\* Flights to the public as actually being a flight of
and operated by Contractor, in at least the following ways:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a symbol will be used in timetables and computer reservation systems indicating that UA\* Flights are actually
operated by Contractor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to the extent reasonable, messages on airport flight information displays will identify Contractor as the
operator of flights shown as UA\* Flights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) United and Contractor advertising concerning UA\* Flights and United and Contractor reservationists will
disclose Contractor as the operator of each UA\* Flight; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) in any other manner prescribed by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. *<u>Terms and Conditions of Carriage</u>*. In all cases the contract of carriage between a passenger and a carrier will be that of the carrier whose code is designated on the ticket. United and Contractor shall each cooperate with the other in the exchange of information necessary to conform each carrier's contract of carriage to reflect service offered by the other carrier.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. *<u>Notification of irregularities in operations</u>*. Contractor shall promptly notify United of all irregularities involving a UA\* Flight which result in any material damage to persons or property as soon as such information is available and shall furnish to United as much detail as practicable. For purposes of this section, notification shall be made as follows:

United Airlines Dispatch

233 South Wacker Drive, 27th Floor

Chicago, IL 60606

Attention: Operations Director

[\*\*\*]

Exhibit D-1

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. *<u>Code Sharing License</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Grant of License</u>* . Subject to the terms and conditions of the Agreement, United hereby grants to
Contractor a nonexclusive, nontransferable, revocable license to use the UA\* designator code on all of its flights operated as a UA\* Flight.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Control of UA\* Flights</u>* . Subject to the terms and conditions of the Agreement, Contractor shall
have sole responsibility for and control over, and United shall have no responsibility for, control over or obligations or duties with respect to, each and every aspect of Contractor's operation of UA\* Flights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Display of other codes</u>. During the Term of the Agreement, United shall have the exclusive right to determine which other airlines ("**<u>Alliance Airlines</u>**"), if any, may place their two letter designator codes on flights operated by Contractor with Covered Aircraft and to enter into agreements with such Alliance Airlines with respect thereto. Contractor will cooperate with United and any Alliance Airlines in the formation of a code share relationship between Contractor and the Alliance Airlines and enter into reasonably acceptable agreements and make the necessary governmental filings, as requested by United, with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Our United Customer Commitment</u>. During the period that United places its designator code on flights operated by Contractor, Contractor will adopt and follow plans and policies comparable (to the extent applicable and permitted by law and subject to operational constraints) to "Our United Customer Commitment" as presently existing and hereafter modified. Contractor acknowledges that it has received a copy of United's presently existing "Our United Customer Commitment". United will provide Contractor with any modifications thereto promptly after they are made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Network Operations Center (NOC) Playbook</u>. During the period that United places its designator code on flights operated by Contractor, Contractor will work with the United network operations center to incorporate United's policies and procedures into Contractor's business policies to drive operational performance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>International Routes to and from Mexico</u>. Subject to the availability of the relevant traffic rights under that certain Air Transport Agreement between the Government of the United States of America and the Government of the United Mexican States, executed December 18, 2015 (as the same may be amended, restated, supplemented or replaced after the Effective Date), at any time from time to time, if United directs Contractor to operate one or more specific international routes into or out of Mexico, then United and Contractor shall promptly execute a supplemental agreement designating such routes to be operated by Contractor on behalf of United.

Exhibit D-2

------

**<u>EXHIBIT E</u>**

**Non-Revenue Pass Travel** 

United will have the sole right to design, implement and oversee a pass travel program for the Regional Airline Services.

Exhibit E-1

------

**<u>EXHIBIT F</u>**

**United Directed Charter Flight Operations** 

Subject to the provisions of <u>Section</u> <u>2.01</u> establishing, without limitation, that United shall, in its sole discretion, establish all schedules for United Directed Charter Flights, including determining the city-pairs served, frequencies, utilization and timing of scheduled arrivals and departures, and shall, in its sole discretion, make all determinations regarding the establishment and scheduling of any United Directed Charter Flights, and that Contractor shall operate such United Directed Charter Flights pursuant to the terms of the Agreement, each of Contractor and United agrees to the following:

1. United agrees to schedule United Directed Charter Flights using only aircraft that are available to schedule,
including remain overnight ("  **<u>RON</u>**") aircraft that are not otherwise in maintenance.

2. United Directed Charter Flights shall be performed at the rates as set forth on <u>Appendix 1</u> to <u>Schedule 3</u>; provided that the parties, acting in good faith, shall determine an increase, if any, in such rates to compensate Contractor for any reasonably documented excess costs incurred by Contractor as a result of such United Directed
Charter Flights and not otherwise contemplated by the rates set forth on <u>Schedule</u> <u>3</u>; provided further that (x) United shall pay Contractor for any reasonably documented incremental costs incurred by Contractor as a
result of a termination or cancellation directed by United of a United Directed Charter Flight occurring after the delivery of the Final Monthly Schedule, and (y) Contractor shall use commercially reasonable efforts to minimize the incremental
costs incurred by Contractor as a result of such cancellation.

3. Contractor agrees to have its System Operations Control ("  **<u>SOC</u>**") employees work directly
with United to successfully operate United Directed Charter Flights.

4. Contractor's SOC will ensure Charter Briefings provided by United are distributed to and reviewed by its
crews before the operation of any United Directed Charter Flight.

5. Contractor agrees to provide United's Charter Operations Planner aircraft routing and assigned crew
information (including contact information for the crew) [\*\*\*] before the start of any United Directed Charter Flight.

6. Contractor agrees to withhold United Directed Charter Flights from its normal monthly crew bid, in order to
minimize re-crewing costs in the event that United should need to alter the schedule of a United Directed Charter Flight or cancel the United Directed Charter Flight altogether.

7. Contractor's SOC will remain in constant contact with United's Charter Operations Planners while
conducting any United Directed Charter Flight on behalf of United, advising them of weather, maintenance issues, and other factors that could impact, delay, or cause the cancellation of any United Directed Charter Flight.

8. United personnel will be the sole contact with the charterer and will advise the customer of any delay or
cancellation to a United Directed Charter Flight.

Exhibit F-1

------

9. Contractor will provide operations engineering support capable of providing United Directed Charter Flight
approval for new airports and routes within [\*\*\*] of the initial request from United.

Exhibit F-2

------

**<u>EXHIBIT G</u>**

**Use of United Marks and Other Identification** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. *<u>Grant</u>*. United hereby grants to Contractor, and Contractor accepts, a non- exclusive, personal, non-transferable, royalty-free right and license to adopt and use the United Marks and other Identification in connection with the rendering by Contractor of Regional Airline Services, subject to the conditions and restrictions set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. *<u>Ownership of the United Marks and Other Identification</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) United shall at all times remain the owner of the United Marks and the other Identification and any
registrations thereof and Contractor's use of any United Marks or other Identification shall clearly identify United as the owner of such marks (to the extent practical) to protect United's interest therein. All use by Contractor of the
United Marks and the other Identification shall inure to the benefit of United. Nothing in this Agreement shall give Contractor any right, title, or interest in the United Marks or the other Identification other than right to use the United Marks
and the other Identification in accordance with the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Contractor acknowledges United's ownership of the United Marks and the other Identification and further
acknowledges the validity of the Identification. Contractor agrees that it will not do anything that in any way infringes or abridges United's rights in the Identification or directly or indirectly challenges the validity of the Identification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. *<u>Use of the United Marks and the Other Identification</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Contractor shall use the United Marks and other Identification only as authorized herein by United and in
accordance with such standards of quality as United may establish.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Contractor shall use the Identification on all Covered Aircraft (other than the Spare Aircraft) and all
facilities, equipment and printed materials used in connection with the Regional Airline Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Contractor shall not use the Identification for any purpose other than as set forth in this <u>Exhibit G</u>,
and specifically shall have no right to use the United Marks or other Identification on or in any aircraft other than Covered Aircraft or in connection with any other operations of Contractor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) United shall have exclusive control over the use and display of the United Marks and other Identification, and
may change the Identification at any time and from time to time (including by adding or deleting marks from the list specified in this <u>Exhibit G</u>), in which case Contractor shall as soon as practicable make such changes as are requested by
United to utilize the new Identification; provided that United shall either pay directly the reasonable costs of making such changes to the Identification or shall promptly reimburse Contractor for its reasonable expenses incurred in making such
changes.

Exhibit G-1

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Nothing shall abridge United's right to use and/or to license the Identification, and United reserves the
right to the continued use of all the Identification, to license such other uses of the Identification and to enter into such agreements with other carriers providing for arrangements similar to those with Contractor as United may desire. No term or
provision of this Agreement shall be construed to preclude the use of the United Marks or other Identification by other persons or for similar or other uses not covered by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. *<u>United-Controlled Litigation</u>*. United at its sole expense shall take all steps that in its opinion and sole discretion are necessary and desirable to protect the United Marks and other Identification against any infringement or dilution. Contractor agrees to cooperate fully with United in the defense and protection of the United Marks and other Identification as reasonably requested by United. Contractor shall report to United any infringement or imitation of, or challenge to, the United Marks and other Identification, immediately upon becoming aware of same. Contractor shall not be entitled to bring, or compel United to bring, an action or other legal proceedings on account of any infringements, imitations, or challenges to any element of the United Marks and other Identification without the written agreement of United. United shall not be liable for any loss, cost, damage or expense suffered or incurred by Contractor because of the failure or inability to take or consent to the taking of any action on account of any such infringements, imitations or challenges or because of the failure of any such action or proceeding. If United shall commence any action or legal proceeding on account of such infringements, imitations or challenges, Contractor agrees to provide all reasonable assistance requested by United in preparing for and prosecuting the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. *<u>Revocation of License</u>*. United shall have the right to cancel the license provided herein in whole or in part at any time and for any reason, in which event all terminated rights to use the Identification provided Contractor herein shall revert to United and the United Marks and the other Identification shall not be used by Contractor in connection with any operations of Contractor. The following provisions shall apply to the termination of the license provided herein: (i) in the case of a termination of the license to use the globe element of the United Marks, Contractor shall cease all use of the globe element of the United Marks with respect to each Covered Aircraft within [\*\*\*] of such aircraft being withdrawn from the capacity purchase provisions of the Agreement, and shall cease all use of the globe element of the United Marks in all other respects within [\*\*\*] of last Covered Aircraft being returned to United (or its designee) (unless this Agreement is terminated for Cause or pursuant to <u>Section</u> <u>8.01(a)</u> or the first sentence of <u>Section</u> <u>8.02(b)</u>, in which case Contractor shall cease all use of the globe element of the United Marks within [\*\*\*] of the earlier of; (i) the Termination Date or (ii) the final day of any such Wind-Down Period); (ii) in the case of a termination of the license to use any other United Marks and Identification, Contractor shall cease all use of such other United Marks and Identification within [\*\*\*] of the termination of the license for such other United Marks and other Identification. Within such specified period, Contractor shall cease all use of such other United Marks and Identification, and shall change its facilities, equipment, uniforms and supplies to avoid any customer confusion or the appearance that Contractor is continuing to have an operating relationship with United, and Contractor shall not thereafter make use of any word, words, term, design, name or mark confusingly similar to the United Marks or other Identification or take actions that otherwise may infringe the United Marks and the other Identification.

Exhibit G-2

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. *<u>Assignment</u>*. The non-exclusive license granted by United to Contractor is personal to Contractor and may not be assigned, sub-licensed or transferred by Contractor in any manner without the written consent of a duly authorized representative of United.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. *<u>United Marks</u>*. The United Marks are as follows:

UNITED EXPRESS'S LOGO (DESIGN) IN COLOR

![LOGO](g944307g0810043129618.jpg)

UNITED EXPRESS'S LOGO (DESIGN) IN BLACK & WHITE

![LOGO](g944307g0810043129985.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. *<u>Aircraft Livery</u>*. The aircraft livery shall be as follows, unless otherwise directed by United: The colors blue, gray and white are used on the aircraft. The color white appears on the top approximate 2/3 of the body of the aircraft; the color gray appears below the color white on the remainder of the bottom portion of the body of the aircraft; the color blue is used as a stripe or band dividing the white and gray colors. The tail of the aircraft is primarily blue with the globe logo design in a blue and white combination and the trade name is written in blue and gray on the white portion of the body of the aircraft. The engines of the aircraft are blue. Interior décor shall be as directed by United. Except as required by law or regulation, there shall be no Contractor Marks displayed on the aircraft exterior or in the aircraft interior, including any marks on any backwall or cabin separator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. *<u>Survival</u>*. The provisions of this <u>Exhibit</u> <u>G</u> shall survive the termination of this Agreement for a period of [\*\*\*].

Exhibit G-3

------

**<u>EXHIBIT H</u>**

**Use of Contractor Marks** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. *<u>Grant</u>*. Contractor hereby grants to United, and United accepts, a non-exclusive, personal, non-transferable, royalty-free right and license to adopt and use the Contractor Marks (as defined below) in connection with United's entering into this Agreement, subject to the conditions and restrictions set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. *<u>Ownership of the Contractor Marks</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Contractor shall at all times remain the owner of the Contractor Marks and any registrations thereof and
United's use of any Contractor Marks shall clearly identify Contractor as the owner of such marks (to the extent practical) to protect Contractor's interest therein. All use by United of the Contractor Marks shall inure to the benefit of
Contractor. Nothing in this Agreement shall give United any right, title, or interest in the Contractor Marks other than right to use the Contractor Marks in accordance with the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) United acknowledges Contractor's ownership of the Contractor Marks and further acknowledges the validity
of the Contractor Marks. United agrees that it will not do anything that in any way infringes or abridges Contractor's rights in the Contractor Marks or directly or indirectly challenges the validity of the Contractor Marks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. *<u>Use of the Contractor Marks</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) United shall use the Contractor Marks only as authorized herein by Contractor and in accordance with such
standards of quality as Contractor may establish.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) United shall use the Contractor Marks as necessary or appropriate in United's sole discretion in
connection with the Regional Airline Services, including the sale or disposition by United of the seat inventory of the Scheduled Flights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) United shall not use the Contractor Marks for any purpose other than as set forth in this <u>Exhibit H</u>, and
specifically shall have no right to use the Contractor Marks in connection with any other operations of United.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Contractor may change the Contractor Marks at any time and from time to time (including by adding or deleting
marks from the list specified in this <u>Exhibit H</u>), in which case United shall as soon as practicable make such changes as are requested by Contractor to utilize the new Contractor Marks; provided that Contractor shall either pay directly the
reasonable costs of making such changes to the Contractor Marks or shall promptly reimburse United for its reasonable expenses incurred in making such changes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Nothing shall abridge Contractor's right to use and/or to license the Contractor Marks, and Contractor
reserves the right to the continued use of all the Contractor Marks, to license such other uses of the Contractor Marks and to enter into such agreements with other carriers providing for arrangements similar to those with United as Contractor may
desire. No term or provision of this Agreement shall be construed to preclude the use of the Contractor Marks by other persons or for other similar uses not covered by this Agreement.

Exhibit H-1

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. *<u>Contractor-Controlled Litigation</u>*. Contractor at its sole expense shall take all steps that in its opinion and sole discretion are necessary and desirable to protect the Contractor Marks against any infringement or dilution. United agrees to cooperate fully with Contractor in the defense and protection of the Contractor Marks as reasonably requested by Contractor. United shall report to Contractor any infringement or imitation of, or challenge to, the Contractor Marks, immediately upon becoming aware of same. United shall not be entitled to bring, or compel Contractor to bring, an action or other legal proceedings on account of any infringements, imitations, or challenges to any element of the Contractor Marks without the written agreement of Contractor. Contractor shall not be liable for any loss, cost, damage or expense suffered or incurred by United because of the failure or inability to take or consent to the taking of any action on account of any such infringements, imitations or challenges or because of the failure of any such action or proceeding. If Contractor shall commence any action or legal proceeding on account of such infringements, imitations or challenges, United agrees to provide all reasonable assistance requested by Contractor in preparing for and prosecuting the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. *<u>Revocation of License</u>*. Contractor shall have the right to cancel the license provided herein in whole or in part at any time and for any reason, in which event all terminated rights to use the Contractor Marks provided United herein shall revert to Contractor and the Contractor Marks shall not be used by United in connection with any operations of United. United shall cease all use of the Contractor Marks in all respects upon the last Covered Aircraft being delivered to United (or its designee). United shall not thereafter make use of any word, words, term, design, name or mark confusingly similar to the Contractor Marks or take actions that otherwise may infringe the Contractor Marks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. *<u>Assignment</u>*. The non-exclusive license granted by Contractor to United is personal to United and may not be assigned, sub-licensed or transferred by United in any manner without the written consent of a duly authorized representative of Contractor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. *<u>Contractor Marks</u>.* The Contractor Marks are as follows:

Exhibit H-2

------

![LOGO](g944307g0810043130242.jpg)

![LOGO](g944307g0810043130242.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. *<u>Survival</u>*. The provisions of this <u>Exhibit</u> <u>H</u> shall survive the termination of this Agreement for a period of [\*\*\*].

Exhibit H-3

------

**<u>EXHIBIT I</u>**

**Catering Standards** 

**<u>INFLIGHT PRODUCT SALES PROGRAM</u>**

United will market a portfolio of inflight products for purchase on United Express flights which includes [\*\*\*], [\*\*\*], [\*\*\*] food, or other product offerings. Contractor will administer the program related to such in-flight sales (the "**<u>Inflight Product Sales Program</u>**") as United's representative following all policies and procedures of United. The initial policies and procedures established by United for the sale of products onboard Contractor's flights under the Agreement with United are set forth below. United reserves the right to change the product offerings, policies and procedures associated with the Inflight Product Sales Program at any time and in its sole discretion.

**<u>Station Services</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• United, or United's catering agent, will provide catering services as directed by United.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• United or its catering agent will provide supplies, food, [\*\*\*] beverage, and other product uplift as necessary
and will remove, store and re-board perishable supply and beverage items on Remain Over Night (RON)/originating flights at airports designated by United as catering airports.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In respect of all catering items (including the Inflight Product Sales Programs), Contractor will coordinate and
communicate with United or United's catering agent regarding all flight activity, cancellations and irregular operations providing necessary information in a timely manner.

**<u>Onboard Services</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• United has right to determine meal/beverage and other product offering service parameters and scheduling for
Scheduled Flights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• United has right to conduct onboard service audits on Scheduled Flights to ensure service standards are being
met.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Contractor shall ensure that all flight attendants providing Regional Airline Services are trained on meal and
beverage service procedures, including liquor and duty-free sales and cash handling, and will collect all on-board revenue for food, liquor, duty-free sales and/or any other products for sale.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Contractor will provide, at Contractor's cost and expense, certain initial and replacement galley service
ship's equipment to operate, such as hot jugs, coffee makers and trash bins.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• United will provide the initial shipset of United CATLAS model galley carts and associated carrier boxes, drawers
and inserts. United will provide all supplemental United CATLAS galley carts, carrier boxes, drawers and inserts as well as replacements sufficient to operate cart exchange operations. All galley carts, carrier boxes, drawers and inserts used for
the United inflight services will be maintained by United per United's maintenance program.

Exhibit I-1

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• United will provide all liveried catering items, including cups, napkins, etc. as well as all products in the
Inflight Product Sales Program.

**<u>TECHNOLOGY</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Republic will provide each of their Flight Attendants a handheld device on a 1-to-1 basis (status quo).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• All costs related to the devices including maintenance/lost/stolen/insurance/etc. are all the sole responsibly of
contractor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• United will provide training materials for United Applications to contractor. Contractor should ensure Flight
Attendants receive such materials.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Contractor agrees to work with United's technology team to load United's applications in timely
fashion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If Republic decides to replace existing iPhone XR devices, Contractor agrees to meet and discuss with United on
replacement solutions and also provide United with sufficient time to coordinate application development changes and IT security checks.

**<u>PRODUCT LOSS AND PILFERAGE</u>** 

United will establish procedures aimed at limiting product loss. At a minimum, it is required that Contractor's flight attendants record opening and closing inventories of each product to be sold onboard, accounting for all sales and complimentary items distributed.

Seals may be required to prevent tampering with product inventories and to deter pilferage. United will monitor all inventories and reserves the right to charge Contractor for identified loss (including breakage and other damage) and pilferage on a cost (non-mark-up) basis determined monthly. Any discrepancies in inventories, seal numbers recorded, or excessive complimentary activity for any product sold must be reported at the hub for use in pilferage investigations by United. Contractor's failure to provide documentation as reasonably requested by United or its representatives will result in Contractor being charged for pilferage as reasonably determined by United on a cost basis. United reserves the right to set off the value of the loss and/or pilferage on a cost (non-mark-up) basis, by taking a credit of such loss and/or pilferage pursuant to the procedures set forth in <u>Section</u> <u>10.16</u> of the Agreement. All reasonable product loss and pilferage procedures established by United must be adhered to by Contractor.

United may, at any time during normal operating hours inspect, monitor, or audit Contractor's administration of the Inflight Product Sales Program described in this Appendix or in other policies and procedures, in order to verify that Contractor is in compliance, in all material respects, with United's requirements for the Inflight Product Sales Program. Contractor will work with United to ensure reasonably appropriate controls exist designed to comply with United's requirements and will ensure corrective actions are in place as necessary.

Exhibit I-2

------

**<u>LIQUOR, BEER AND WINE PROGRAM</u>** 

The Alcoholic Beverage Products offering will be determined by United and provided for by United in the liquor kit supplied to each aircraft. Except as prohibited by law or otherwise agreed by United and Contractor due to the various applicable liquor license laws and regulations, the Alcoholic Beverage Products will be purchased by United prior to being placed onboard Contractor's aircraft and sold onboard all United Express flights designated by United.

Once onboard Contractor's aircraft, liquor drawers, bags or other liquor containment mechanisms used by Contractor, as determined by Contractor, are considered a part of ship's equipment and will be used for the distribution of United's inflight products.

Contractor shall not serve any Alcoholic Beverage Product(s) on the ground without United's consent. Contractor will obtain and maintain liquor licenses in the states where they board and/or unload any Alcoholic Beverage Product. Unless otherwise agreed by the parties, Contractor will not [\*\*\*].

**<u>VIRGINIA ALCOHOLIC BEVERAGE HANDLING PROCEDURES</u>** 

Contractor will comply with Virginia's liquor purchase procedures. In Virginia, [\*\*\*].

**<u>FOOD AND OTHER PRODUCTS</u>** 

United reserves the right to introduce other products for sale onboard including food offerings. Food offerings may come in a variety of packaging options and will be integrated into the entire portfolio with regards to specifications and procedures established by United.

Provisioning of product offering will follow United's procedures at distribution points.

Exhibit I-3

------

**<u>EXHIBIT J</u>**

**Aircraft Cleanliness and Refurbishment Standards** 

**<u>AIRCRAFT CLEANLINESS STANDARDS</u>**

United requires Contractor to adhere to certain aircraft interior deep clean standards provided by United to Contractor from time to time (the <u>"</u>**<u>Deep Clean Scope of Work</u>**") consistent with and not materially more burdensome than what United requires of its other E175 regional partners. With the exception of certain heavy cleaning events which will occur during heavy maintenance and shall be incorporated into the C-check schedule, the elements of the Deep Clean Scope of Work shall be performed by Contractor according to a work schedule set forth by United but no less than every [\*\*\*]. The Deep Clean Scope of Work comprises the minimum required interior deep clean work required of Contractor and identifies the items in scope for all interior aircraft cleaning work over and above routine RON cleaning standards, including carpets, seats, cabin interior, lavatories etc. Contractor will audit the deep clean provider and provide monthly written results to United in a format determined by United. United retains the right to audit Contractor's compliance with United's deep clean standards and the performance of the deep clean provider, as well as any of the aircraft upon the completion of the Deep Clean Scope of Work. Items identified through United's audit will be corrected by Contractor within [\*\*\*] of United's written notification or any other mutually agreed upon date. United will charge Contractor [\*\*\*] for each day that the Deep Clean Scope of Work standards are not corrected after the later of such five day correction period or such other mutually agreed upon date. When United is to perform normal RON cleaning on behalf of Contractor, United is responsible for meeting the applicable cleaning standards set forth in this Exhibit J.

At the end of each flight, the flight attendants will ensure that the aircraft is left in a clean condition. If this is not accomplished by other personnel at the station, then the flight attendants are responsible for removal of all trash, including all floors, galley trash and lavatory trash. Flight attendants will comply with all appropriate station protocol for garbage disposal.

**United Express Deep Clean Minimum Specifications** 

The minimum standards outlined here serve as an auditable baseline standardizing this clean type. Contractor is responsible for the Deep Clean programs and cycle times and may choose to have standards above and beyond those listed in this section. Any audits performed on United Express Deep Clean missions will be based on these minimum standards.

Deep Cleans are the most intense and thorough clean missions, including complete provisioning change out of linens, headsets, etc., with new or refurbished product. Scheduled at approved intervals, Deep Clean events are performed in designated stations during the aircraft's overnight layover by authorized personnel that receive scheduled available aircraft.

**Interior Cabin Security Search** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Perform aircraft security check as contained in the AOSSP or published security directives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Security searches are integrated with United's cleaning standard operating procedures for each clean
mission, including deep cleans. As a result, security checks must be performed as outlined in the Aircraft Appearance Cabin Interior Search procedures during the course of accomplishing the cleaning tasks outlined hereinafter.

Exhibit J-1

------

**Flight Deck** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. While it is true all aspects of cleaning require safety awareness, cleaning personnel must give special
attention to safety during the flight deck cleaning process, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Notify maintenance immediately should you accidentally move or trip a switch/circuit breaker.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Do not spray liquids on instruments or dashboards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Do not dampen brush or cloth excessively as water may come in contact with electrical equipment and cause
injury to personnel and damage to the aircraft.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Dip sponge or cleaning rag into cleaning solution and scrub surfaces until soil loosens. Repeat procedure on
stubborn stains.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Avoid getting surfaces excessively wet.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Dry all surfaces.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Remove trash and debris from flight deck.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Remove and replace trash bag.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Vacuum clean the following areas:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Seats, seat pockets

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Creases around and between seat cushion areas

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Floor, seat tracks, seat assemblies and vent grills

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Clean and remove soil from the following areas:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Ceiling panels and vents

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Sidewall panels

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Floor, seat tracks, seat assemblies and vent grills

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Front, back and side of flight deck door

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Damp wipe and dry the following areas assuring a streak free appearance:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Glare-shield; sun-visors

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Windshield / side windows interior (Sani-Coms replacement)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Clean and dry the following areas:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Recessed areas instrument panels; center console

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Control yokes and columns

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Base plate and nose gear steering wheel

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Captains and 1st Officers rudder pedals

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Captains, 1st Officers, 1st Observer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Cup / drink holders

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. Log compartments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. Engineers table

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Crew coatroom

Exhibit J-2

------

**Cabin** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Remove all trash from seats, seat pockets, floor, overheads, shelves, closets and overhead bins.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Inspect seat covers. Report covers with any size stain or tear into local maintenance for replacement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Brush crumbs off seats. Seat cushions to be left in the upright position, exposing the seat frame for pre-departure security inspection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Pull up seat cushions; vacuum all sides to remove crumbs, lint, etc. Place in overhead bin.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Vacuum / brush seat pan free of crumbs and debris.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Scrub seat frames including all exterior surfaces of seat panels, armrests, luggage restraints, seat legs,
connect points, seat control panels, seat shroud and gap between seats. Rinse, dry.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Return seat cushions to original position.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Place armrest in DOWN position and cross seatbelts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. Vacuum and scrub seat tracks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. Scrub seat tracks covers. Rinse, dry and reinstall.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. Spray cleaning solution on the cloth and clean emergency aisle path track lighting. Do not spray solution
directly on the path lighting system. Follow by wiping the cover with a clean cloth dampened in clean rinse water and dry.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. Vacuum and scrub stowage wells, including tray table wells.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. Scrub tray tables including latch area on seatback, edging, hinges, mating surfaces, bridges and arms. Rinse
and dry before stowing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. Scrub center seat console areas; side stowage coves. Rinse, dry.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. Remove trash and seat back pocket materials. Vacuum seat pockets. Tuck any loose seat cover flaps into the seat
shroud.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. Scrub clean passenger service units, reading lights, call button, air vents and panel. Rinse, dry.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. Scrub clean sidewalls and sidewall air vents. Rinse, dry.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. Clean and dry windows, window shades, and window shade tracks with approved cleaner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. Scrub clean flight attendant jump seat area(s); including the call station, phone entry walls, ceiling,
compartments and floors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. Provision and organize seat pockets with literature and supplies. Discard and replace worn or dog-eared literature and/or when missing. Replace Hemispheres/Play guides with new after the 10<sup>th</sup> day of the month.

1 - SAFETY INFORMATION CARD – As required by Contractor 2 - MAGAZINE(S) – As required by Contractor

3 - AIR SICK BAG – As required by Contractor Replace soiled blankets with clean ones and place neatly on top as designated in the provisioning chart (UF only on 2-cabin AC).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. Vacuum air vent covers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. Vacuum sidewall upper and lower air vents and section dividers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. Overhead Bins, Ceilings, Closets, Bassinets, Storage Areas

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Remove trash from overhead bins, storage areas, closets.

Exhibit J-3

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Scrub clean inside of overhead bins, all exposed surfaces of overhead bin doors, latches, hinges and inner rim
that runs perimeter of bin. Rinse, dry.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Scrub ceilings, centerline ceiling vents, curtain class dividers. Rinse, dry.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Vacuum storage areas, closets to remove dust, debris.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Scrub clean inside of storage areas, closets, exterior doors and latches. Rinse, dry.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Onboard wheelchair compartment, remove wheelchair, wipe clean and dry (when applicable).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. Vacuum inside onboard wheelchair compartment. Scrub interior/exterior door and latches. Rinse, dry (when
applicable).

**Galley** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Remove and dispose of all trash.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Clean counters, storage doors and galley extension tables.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Spot wipe walls, ceiling and doors to remove fingerprints, scuff marks, spills, graffiti, etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Scrub interior and exterior of storage space. Pay particular attention to all protrusions, corners, cracks,
crevices, sliding tracks, hinges, latches, control panel, etc. Rinse with clean water and dry with clean cloth.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. If applicable, empty all ice and water drawers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Vacuum and damp mop the floor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Thoroughly scrub, wash, rinse and dry the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Serving carts and folding meal carts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Interior and exterior of trash compartments and trash chutes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. All light fixtures and cover lights and air vents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Thoroughly scrub (eraser pad), wash, rinse and dry the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. Wipe clean coffee makers, hot plates and spigots when applicable. (Coffee pots to be handled and cleaned by
catering).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Note: Interior of coffeepots is not to be cleaned by cleaning personnel, only by catering staff.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. Cleaning personnel to clean interior and exterior of all compartments (pay particular attention to latches,
corner hinges and locks).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Interior and exterior of trash compartments and trash chute.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. All light fixtures, cove lights, and air vents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Clean exterior of coffee makers/hot jugs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Walls, ceiling, air vents, service door and floor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Polish stainless steel areas with approved Airline's chemical (appendix 1).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Thoroughly scrub walls, ceiling and floors. Rinse with clean water and dry with clean rag.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. Scrub the galley entry door, doorframe, sill and rubber seal on bottom of door.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. Ensure the drain holes on the sill are clear and free of debris.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Replenish galley paper towel dispensers (where applicable).

Exhibit J-4

------

**Lavatory** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Remove trash and other debris from counters, bin and floor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Scrub, wash and rinse all of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Toilet bowl, shroud and chute.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Toilet seat cover and hinges.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Inside and outside of storage compartments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Walls, ceiling, door and floor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Clean all stainless steel or hard surface areas; basin, counter, sink, light fixtures and toilet chute.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Clean and dry mirror.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Clean all exposed surfaces of fold down diaper changing table (if applicable).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Restock supply dispenser and storage bins.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Deodorize with air freshener spray.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Replace deodorant disk.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. All paper supplies, soap and hand sanitizer, as applicable (if no certified potable water available please
utilize waterless hand sanitizer).

**Entrance Areas and Doors** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Scrub aircraft door, hinge, handle area, sills, walls, ceilings and floor. Ensure weep holes on the sill are
clean and free of debris.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Clean all exposed surfaces of entrance doors: remove all fingerprints, grease stains and graffiti.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Scrub entryway floor and doorsill. Rinse, dry or vacuum if carpeted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Damp wipe ceiling air vent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Clean rubber seal on bottom of door.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Clean inside door windows.

**Carpets and Curtains (When Applicable)** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Remove gum spots on carpeting using approved chemical.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Clip any frayed or raveled carpet strings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Vacuum all carpeted areas.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Vacuum top of all cabin curtains.

**Aircraft Refurbishment Standards** 

United requires Contractor to adhere to certain aircraft interior cabin refurbishment standards described in this <u>Exhibit</u> <u>J</u>, which such standards are outlined in the table below (the "**<u>Refurbishment Scope of Work</u>**"). The elements of the Refurbishment Scope of Work shall be performed by Contractor according to a work schedule set forth by United. The Refurbishment Scope of Work is comprised of the minimum required interior cabin refurbishment work required of Contractor, itemized by type of aircraft service visit, e.g., heavy maintenance, RON (as such term is defined in this <u>Exhibit</u> <u>J</u>). The Refurbishment Scope of Work identifies the items in scope for all interior refurbishment work, e.g., carpets, seats, cabin decor/interior, lavatories etc., as specifically set forth in the table below, as well as the timing of when such refurbishment work shall be performed by Contractor.

Subject to the consent of Contractor (such consent not to be unreasonably withheld or delayed), United may change the Refurbishment Scope of Work. Upon such consent of Contractor, such change shall be made part of the Refurbishment Scope of Work.

Exhibit J-5

------

All refurbishment work performed by Contractor with respect to the Refurbishment Scope of Work set forth below, whether replacement, repair, or reconditioning/cleaning, must result in like-new interior cabin condition of the refurbished aircraft. United may, from time-to-time, or at any time, monitor and audit the interior cabin refurbishment work undertaken by Contractor pursuant to the Refurbishment Scope of Work, in order to ensure that the interior cabins of the Contractor- refurbished aircraft are in like-new condition post-refurbishment. If United reasonably determines that any Contractor-refurbished interior cabins are not returned to like-new condition, then United will require Contractor to repeat the refurbishment work on that specific aircraft, whether such work requires replacement, repair, or reconditioning/cleaning, at Contractor's sole cost and expense, until such aircraft interior cabin is returned to like-new condition. Items identified through United's audit will be corrected by Contractor within [\*\*\*] of United's written notification or any other mutually agreed upon date. United will charge Contractor [\*\*\*] for each day that the Refurbishment Scope of Work standards are not corrected after the later of such [\*\*\*] correction period or such other mutually agreed upon date.

**Interval for refurbishment work by type of aircraft service visit:** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Heavy maintenance category should be similar to the carrier "C Check" interval timeframe, which occurs
at approximately every [\*\*\*] hours of flight time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Intermediate category should be similar to half of the "C Check" interval timeframe, which occurs at
approximately every [\*\*\*] hours of flight time, or about every [\*\*\*] "A Check" interval.

Note: These definitions/intervals are guidelines and are subject to change by United, with any such change subject to consent of the Contractor (such consent not to be unreasonably withheld or delayed).

Exhibit J-6

------

---

| | | | |
|:---|:---|:---|:---|
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] |  |  |  |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] |  |  |  |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] |  |  |  |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] |  |  |  |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] |  |  |  |
|  [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  [\*\*\*] |  |  |  |
|  [\*\*\*] |  |  |  |
|  [\*\*\*] |  |  |  |

---

Exhibit J-7

------

**<u>EXHIBIT K</u>**

**[\*\*\*]** 

[\*\*\*]

Exhibit K-1

------

**<u>EXHIBIT L</u>**

**Fuel Efficiency Program** 

Contractor shall use commercially reasonable efforts to develop and maintain a comprehensive fuel efficiency program, acceptable to United, in a timely manner and with the overall objective of operating and maintaining the Covered Aircraft in a manner that maximizes fuel efficiency, with due consideration to other performance objectives. The program will include applicable data collection and trend analysis, and will set and track target metrics. United shall audit Contractor's program at its discretion, but at no less than annual intervals, and Contractor and United shall work together to revise and adjust such program from time to time so that such program remains acceptable to United; provided, in all events, any such program shall not, in Contractor's reasonable determination, compromise the safety of the operation of the Covered Aircraft. Such audits will be based on applicable manufacturer material, United's own fuel efficiency program applicable to its own fleet, and any other material standard in the industry.

Contractor's fuel efficiency program shall emphasize at least the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. A "cost index" (CI) based flight planning system, or as an alternative a flight planning system that adequately balances the cost of fuel (which United shall supply to Contractor) versus the cost of time on a segment specific basis to be optimized from United's perspective. The ability to provide the system with current and accurate applicable costs is required. Cost Index values will be updated monthly and will include delay cost if provided by United. Decisions to include Contractor's operational circumstances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Flight planning technology that accurately predicts fuel burn and optimizes both lateral and vertical profiles for takeoff and landing runway, climb, cruise, and descent while considering ATC crossing restrictions, special use airspace, preferred routings (where applicable), and letters of agreements. United periodically evaluates city pair routings and provides optimized routes which shall be incorporated into the flight planning software to provide greater flexibility to determine the least cost routes. Contractor commits to work in good faith with United to establish an audit process to ensure that least cost routing option is selected, provided such actions do not impose any additional burden or cost on Contractor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Development of a comprehensive fuel policy which is appropriate, well documented, and thoroughly trained policies and procedures for dispatchers, pilots, load planners, station agents, mechanics and management that maximize opportunities for fuel efficiency. Policy shall be reviewed with United annually.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. An active interface with appropriate air traffic control ("**<u>ATC</u>**") facilities, management, and other personnel to minimize operational restrictions, and improve ATC handling of Contractor flights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Well-defined and fully integrated flight planning fuel policies, including statistical tracking of fuel added by pilots and dispatchers, efficient reserves, guidelines for efficient alternate selection, a "no-alternate" policy, and target "fuel on deck".

Exhibit L-1

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Thorough and effective pilot and dispatcher training on aerodynamics, cruise performance and overall fuel efficient flying in initial, transition, upgrade, and recurrent programs, with an emphasis on operating the aircraft at the most efficient speeds and altitudes as well as correct descent and approach planning.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Maximized use of on-board flight management systems or performance management computers as an in-flight fuel efficiency tool. Applicable thorough and effective training is required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. An effective fuel tankering program, including automated tankering suggestions and calculations, using validated methods and formulas. Tankered flights to be identified and supplied to United.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. Thorough ACARS-based statistical tracking, analysis and measurement of fuel efficiency using actual data, data from flight plans, with a comprehensive plan to identify and correct deficiencies. All such data will be provided to United.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. A designated manager charged with overall responsibility for fuel efficiency either as a standalone position, or as a substantial element of an individual job description. Manager will audit carrier's efficiency and provide fuel synopsis to United in a format provided by United. Manager will discuss audit results and fuel efficiency initiatives monthly with United.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. The inclusion of fuel efficiency issues and targets in appropriate job descriptions and performance objectives. Applicable work groups include, but are not limited to, pilots, dispatchers, SOCC managers, and gate and ramp personnel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. A weight management program that prevents the carriage of unnecessary galley supplies, spare parts and equipment, customer service items, unless approved by United.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. A center of gravity management system that considers the most efficient center of gravity in load distribution and aircraft loaded utilizing this data.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. Adequate ground equipment and an APU management program that prevents unnecessary or costly operation of the APU.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. Subject to the capability of the ERJ-175 aircraft to provide the following, operational participation (including the provision or ACARS-based data to United) in APU reduction program by utilizing ground power and PC Air at stations when supplied. If available, APU run data by station will be reported to United monthly. The parties will meet and agree with respect to any Airline Modifiable Interface (AMI) change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. Subject to the availability of systems for the ERJ-175 aircraft to collect such data, an engine-out taxi program (which shall include the provision of ACARS-based data to United) both before takeoff and after landing. The parties will meet and agree with respect to any AMI change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. Fuel- and operationally-efficient takeoff and landing flap selection priorities.

Exhibit L-2

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. Proof of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Fuel efficiency management structure

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Existing fuel efficiency programs

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Pilot/dispatcher fuel efficiency communications from prior [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Fuel efficiency training syllabi (stand-alone, recurrent, upgrade, initial)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Monitor the fuel efficiency program to provide modifications to fuel efficiency training

In addition to the above, Contractor agrees to provide the following to United:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Copies of applicable OEM flight manuals and OEM dispatch manuals for study by United fuel team.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Information regarding the following fuel efficiency metrics, broken out by month

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Average planned and actual arrival endurance for flights without filed alternates

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Average planned and actual fuel burn by fleet and city pair

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Percentage of flights with filed alternates

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Subject to the availability of systems for the Covered Aircraft to collect such data, percentage of flights utilizing single-engine taxi

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Average filed/flown altitude, by aircraft type.

Exhibit L-3

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**<u>EXHIBIT M</u>**

Exhibit M-1

------

**<u>EXHIBIT N</u>**

[\*\*\*]

Exhibit N-1

------

**<u>EXHIBIT O</u>**

**Safety Standards for United and United Express Carriers** 

Contractor agrees and, as applicable, represents and warrants, to each of the following:

1. Contractor is in compliance with, has obtained the applicable air carrier approvals with respect to, and shall
remain in compliance throughout the Term of this Agreement, with the U.S. Department of Defense (DoD) Quality and Safety Requirements (including 32 CFR Part 861 and any other applicable governmental quality or safety requirement), and will maintain
approval and continue to comply with all applicable Federal Aviation Regulations (F.A.R.). In the event any change to such compliance or status occurs at any time during the Term, Contractor shall [\*\*\*].

2. Any non-compliance with any safety requirements or corrective action
plans shall be grounds for partial or complete suspension by United, without further liability, of this Agreement or any of the terms or conditions of this Agreement; but, with reservation of all other rights and remedies available to United.

3. Additional safety reviews and audits may be required at United's discretion and Contractor shall cooperate
with all such reviews and audits.

4. Contractor shall perform all operations in accordance with United Airlines Policies and Procedures and Regional
Ground Operations Manual (RGOM).

5. In all facets of operations, SAFETY shall be Contractor's #1 priority. Contractor shall ensure all
personnel maintain this same standard during the course of performing their duties.

6. In addition, Contractor agrees to implement or maintain, as applicable, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Mutual support of one another in implementing these standards by sharing safety data, information and
expertise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Quality maintenance and operations training programs

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. A carrier internal evaluation program to monitor all operational divisions to include, at a minimum, key safety
issues, dangerous goods handling, and training records and qualifications for all personnel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Quality programs to manage outsourcing of services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. A formalized maintenance quality assurance program to monitor all maintenance and maintenance support
activities including maintenance practices, required inspection items and technical document control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Implementation of a program to rectify FAA inspection findings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. Presence of a voluntary self-disclosure reporting program.

Exhibit O-1

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. Formal process to routinely bring safety and compliance issues to the attention of carrier's senior
management.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Anonymous and non-punitive safety hazard reporting system.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j. A senior management policy statement supporting open safety reporting by employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k. Director of Safety, reporting to the highest levels of management, overseeing the carrier's safety
programs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;l. Process for managing corrective actions from FAA and internal audit program as well as employee disclosure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;m. Ongoing flight safety education/feedback program.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;n. Ground safety program in airport operating areas.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o. Incident investigation process that includes accountability, recommendations and corrective actions taken.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;p. Establishment and maintenance of emergency response procedures and manual.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;q. Participation in UAL/industry safety information exchange forum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;r. Compliance with the safety standards set forth by the International Air Transport Authority (IATA) Operational
Safety Audit (IOSA) and shall not [\*\*\*]

Exhibit O-2

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**<u>EXHIBIT P</u>**

**Ground Handler Indemnity** 

Unless superseded by another agreement between a United Ground Handler (as defined below) and Contractor, the following provisions shall apply with respect to the actions of United, or any of United's affiliates, or subcontractors retained by United to provide Ground Handling Services, in each case only to the extent that such person is acting directly in the capacity as a ground handler (a "**<u>United Ground Handler</u>**") for Contractor.

1. *<u>Indemnification</u>* . The United Ground Handler (the "  **<u>Indemnitor</u>** "), on the one
hand, shall indemnify, defend and hold harmless Contractor and its directors, officers and employees, on the other hand (the "  **<u>Indemnitees</u>** "), from and against any and all losses or liabilities incurred by Indemnitee arising
out of physical loss of or damage to the Covered Aircraft (hereinafter, a "  **<u>Claim</u>**") resulting from the negligence of the Indemnitor in providing Ground Handling Services to Indemnitees, except to the extent caused by the
negligence or willful misconduct of any Indemnitee; provided that the Indemnitor's liability pursuant to this <u>Exhibit P</u> with respect to any such Claim shall not exceed, in the aggregate, [\*\*\*]; provided further, that the Indemnitor shall
not indemnify Indemnitee for any individual Claim [\*\*\*]. FOR THE AVOIDANCE OF DOUBT, EXCEPT FOR CLAIMS FOR WHICH INDEMNITY IS OWED PURSUANT TO THE FOREGOING SENTENCE, CONTRACTOR AGREES TO WAIVE ALL CLAIMS FOR PROPERTY DAMAGE ARISING OUT OF THE
PROVISION OF GROUND HANDLING SERVICES AGAINST UNITED OR ANY UNITED GROUND HANDLER (OR THEIR RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, OR SUBCONTRACTORS), WHETHER OR NOT ATTRIBUTABLE TO THE NEGLIGENCE OR FAULT OF ANY SUCH PARTY.

2. *<u>Exclusion of Consequential Damages</u>* . THE INDEMNITOR SHALL NOT BE LIABLE TO ANY PERSON PURSUANT TO
THIS <u>EXHIBIT P</u> FOR ANY INDIRECT, INCIDENTAL, PUNITIVE, SPECIAL, CONSEQUENTIAL OR EXEMPLARY DAMAGES, INCLUDING DAMAGES FOR LOSS OF REVENUE OR LOST PROFITS, EVEN IF THE INDEMNITOR HAD BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, AND EACH
INDEMNITEE HEREBY RELEASES AND WAIVES ANY CLAIMS AGAINST THE INDEMNITOR REGARDING SUCH DAMAGES.

3. *<u>Prompt Notification</u>* . Any Indemnitee seeking indemnification hereunder shall give prompt and
timely notification to the Indemnitor of any such claim, fine, penalty, action or proceeding, and allow the Indemnitor the right to compromise or participate in the defense of same.

Exhibit P-1

------

**<u>EXHIBIT Q</u>**

**Form of Parent Guarantee** 

Attached.

Exhibit Q-1

------

**<u>EXHIBIT R</u>**

**Reasonable Operating Constraints** 

The schedules for the Covered Aircraft shall meet all of the following requirements:

1. <u>Minimum</u> <u>& Maximum Scheduling Parameters</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The following parameters shall apply at all times:

---

| | | |
|:---|:---|:---|
|  | **Minimum** | **Maximum** |
| Average Scheduled Block Hours per Available Covered Aircraft per day | [\*\*\*]\* | [\*\*\*]\* |
| Average Scheduled Departures per day | [\*\*\*] | [\*\*\*] |

---

\* Notes: The above maximum schedule parameter applies only to Covered Aircraft in revenue service. The above maximum schedule parameter is calculated on the Final Monthly Schedule average across all Available Covered Aircraft. In the event of a Force Majeure, the Block Hour Minimum outlined in the immediately preceding table shall be [\*\*\*]; *provided, however*, that [\*\*\*] (such [\*\*\*], the "**<u>Relief Terms</u>**") and such Relief Terms have [\*\*\*]. The parties will work together [\*\*\*]. 

2. <u>Aircraft Turn Times</u>.

Minimum turn times (defined as the time from Aircraft blocking in to Aircraft unblocking) for both a United designated hub and non-hub airport will be [\*\*\*].

3. <u>Aircraft Maintenance Requirements</u>.

Contractor will require [\*\*\*] to be scheduled for overnight maintenance. United will schedule [\*\*\*] each week (Weekday Entry). In addition, [\*\*\*] will be scheduled for [\*\*\*] each week beginning on Saturday afternoon (Weekend Entry).

4. <u>Crew Overnights</u>

The Contractor's United Express schedule will allow for a [\*\*\*] overnight in outstations and will not require the Contractor to schedule any continuous duty overnights. Any costs incurred by Contractor as a result of United failing to meet this parameter will be borne by United. [\*\*\*].

5. <u>Maintenance Bases</u>.

Contractor will establish maintenance bases within the operating network. Currently the established maintenance bases are [\*\*\*]. As the fleet expands additional maintenance base(s) may be required, at such time the Contractor will evaluate potential maintenance base locations. Following a review of the potential locations with United, the Contractor will determine the location and activation date of the addition maintenance base. Each maintenance base in the Contractor's United Express system will have [\*\*\*] Weekday Entries upon full fleet implementation. Once a maintenance base is established, then the Contractor will require [\*\*\*] if United desires to relocate the base. Further, if United requires that a base be relocated or if a base no longer, meets the Weekday Entry minimum stated above, then United will [\*\*\*]. United shall consider in good faith any proposals from Contractor regarding the use of maintenance bases and for operations at such maintenance bases.

Exhibit R-1

------

6. <u>Crew Bases</u>.

The Contractor will establish crew bases for pilots and flight attendants within the operating network. Currently the established crew bases are [\*\*\*]. As the fleet expands it is expected that an additional crew base(s) may be required, at such time the Contractor will evaluate potential crew base locations. Following a review of the potential locations with United, the Contractor will determine the location and activation date of the additional crew base(s). Each crew base in the Contractor's United Express system will have [\*\*\*]. Once a crew base is established, then the Contractor will require [\*\*\*] if United desires to relocate the base. Further, if United requires that [\*\*\*] then, United will [\*\*\*].

7. <u>International and New Airport Operations</u>.

The Contractor will require a minimum [\*\*\*] notice prior to the scheduled operation to any new International destination. Contractor will use commercial reasonable effort to obtain required authorizations to initiate the new service. When the Contractor is requested to serve a new airport the Contractor will advise United, within [\*\*\*], if there are any conditions that will limit the Contractor's ability to operate into the requested airport within [\*\*\*]. While the Contractor cannot assure United, it will [\*\*\*].

8. <u>Maintenance Aircraft</u>.

Upon [\*\*\*], Contractor shall inform United of Covered Aircraft that need to be removed from providing Scheduled Flights for purposes of accomplishing heavy maintenance, mutually agreed-upon overhauls and mutually agreed-upon modifications. Such aircraft will not be considered Available Covered Aircraft while removed from providing Scheduled Flights.

9. <u>Technicians</u>.

For the period from and after the Effective Date until the [\*\*\*], if (x) there occurs any [\*\*\*], then [\*\*\*] United shall give due consideration to reasonable [\*\*\*].

Exhibit R-2

------

**<u>EXHIBIT S</u>**

**United Wi-Fi** 

**1.**  **<u>General Installation</u>** 

United has contracted with Intelsat Inflight LLC (f/k/a Gogo LLC) ("Gogo") to provide air-to-ground internet service inflight ("United's Wi-Fi Agreement"). Pursuant to United's Wi-Fi Agreement, Gogo/Intelsat or one of its subcontractors will install the Gogo/Intelsat Wi-Fi and inflight entertainment equipment, including associated software ("Wi-Fi Equipment") on the E175 Aircraft. For purposes of this Amendment, Wi-Fi and inflight entertainment services will be defined as "Wi-Fi Services". United has purchased, or will purchase, all Wi-Fi Equipment installed. Contractor agrees that United shall remain the sole owner of the Wi-Fi Equipment installed on Contractor aircraft and Contractor agrees not to assert any claim of ownership or a lien on such Wi-Fi Equipment. United will purchase all Wi-Fi Equipment. Contractor agrees to use its commercially reasonable efforts to make its selected aircraft available to Gogo/Intelsat or the installation vendor to enable the installation of the Wi-Fi Equipment to occur as expeditiously as possible without interfering with Contractor's operations.

**2.**  **<u>Revenues from the Sale of Wi-Fi service</u>** 

**3.**  **<u>Purchase Order Details</u>** 

At United's direction, Contractor shall issue a no-cost Wi-Fi purchase order to Gogo/Intelsat in accordance with, and subject to, the provisions of United's Wi-Fi Agreement as such provisions have been provided by United to Contractor for (i) the quantity of shipsets ordered; (ii) requested delivery dates; (iii) point of delivery; (iv) a listing of the aircraft (by tail number) onto which the Wi-Fi Equipment is to be installed; (v) any special requirements relating to the order; and (vi) a purchase order number and date. Each such purchase order shall be at no stated cost to Contractor, and Gogo/Intelsat will issue invoices related to such purchase order(s) issued by Contractor directly to United pursuant to and in accordance with the terms and conditions of United's Wi-Fi Agreement. If there is any information missing from the purchase order at the time of issuance, Contractor understands that it may affect Gogo/Intelsat's ability to process and accept the purchase order.

Exhibit S-1

------

**4.**  **<u>Compliance with Laws and Certification</u>** 

Contractor will comply with all laws and regulations applicable to Contractor in performing Contractor's obligations under this Agreement and will cooperate, to the extent reasonably necessary, with Gogo/Intelsat, for Gogo/Intelsat and Gogo/Intelsat subcontractors to comply with all laws and regulations applicable to Gogo/Intelsat and its subcontractors. Contractor will provide Gogo/Intelsat or its subcontractors with access to the Equipped Aircraft and provide such assistance as Gogo/Intelsat reasonably request to obtain and maintain any legally required certification of the Wi-Fi Equipment and Gogo/Intelsat Services at all times during the Term. At the Effective Date of this Agreement, there are no known direct cost associated with this **Section 4**. Should Contractor become aware of any direct cost pursuant to its obligations in Appendix I, Contractor will review those cost with United before they are incurred such that Contractor and United can work towards agreement on cost responsibility.

**5.**  **<u>Warranty Conditions</u>** 

Contractor shall notify United and Gogo/Intelsat promptly when it becomes aware of any failure in performance, malfunction, defect, loss of or damage to the Wi-Fi Equipment with reasonable details (it being acknowledged that United may be precluded from claiming a breach of the warranty included in the United Wi-Fi Agreement without such information). Contractor shall not take any action that would (i) cause a failure or defect of the Wi-Fi Equipment by combining it with equipment, software, or services not supplied, authorized or specified by Gogo/Intelsat, (ii) cause Wi-Fi Equipment to be subjected to any misuse, neglect, accident or improper maintenance by Contractor or subcontractors, or (iii) cause an infringement or misappropriation of a third party's intellectual property by combining the Wi-Fi Equipment with any content, materials, equipment or software provided by or on behalf of Contractor that is not authorized or approved by Gogo/Intelsat. Contractor shall not itself, nor knowingly permit any other person to, modify or tamper with the Wi-Fi Equipment, other than Gogo/Intelsat or its subcontractors.

**6.**  **<u>Defective Equipment and Software</u>** 

In the event of a defect in the Wi-Fi Equipment covered by the warranty, Contractor agrees to use its commercially reasonable efforts to ship such Wi-Fi Equipment to Gogo/Intelsat within [\*\*\*] if requested by Gogo/Intelsat to do so (and the shipping cost shall be reimbursed to Contractor by United).

**7.**  **<u>Maintenance and Support</u>** 

For a period of time under the United Wi-Fi Agreement, Gogo/Intelsat or its subcontractor will provide touch labor to correct any malfunctioning or defective Wi-Fi Equipment, including any associated software. Following the expiration of this initial warranty period, United may either (i) continue to have Gogo/Intelsat or its subcontractor provide touch labor or (ii) elect to provide touch labor for maintenance of Wi-Fi Equipment on Equipped Aircraft. Gogo/Intelsat may dispatch Gogo/Intelsat personnel or its subcontractors to the Contractor's designated Wi-Fi Equipment maintenance location to troubleshoot maintenance issues with such Wi-Fi Equipment; the cost of such maintenance services shall be mutually agreed upon between United and Gogo/Intelsat and will be at United expense.

Exhibit S-2

------

**8.**  **<u>Contractor Responsibilities for Maintenance Support</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. After installation occurs, Contractor will promptly notify Gogo/Intelsat when it becomes aware that Wi-Fi Equipment is malfunctioning, inoperative or defective. Contractor shall make such Equipped Aircraft available for maintenance services as required, in a timely manner as operationally practical (it being
acknowledged that maintenance touch labor by Gogo/Intelsat or its subcontractors will require a minimum of [\*\*\*] of maintenance touch time in most cases to avoid [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Contractor shall use its commercially reasonable efforts to make the Equipped Aircraft available to
Gogo/Intelsat from time to time at Contractor's facilities for purposes of refreshing the onboard streaming video content.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Contractor shall provide the applicable information as agreed between Gogo/Intelsat and Contractor to
Gogo/Intelsat, or its subcontractors, electronic access to all specific and customized technical manuals and documents in order to perform installation, maintenance and repairs including its Aircraft Maintenance Manual (AMM), Illustrated Parts
Catalog (IPC) and Wiring Diagram Manual (WDM) and any other documents requested which are essential for Gogo/Intelsat or its designated subcontractor to provide maintenance and repair services on the Wi-Fi Equipment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Contractor shall use commercially reasonable efforts to provide day-to-day communication to United and Gogo/Intelsat as to any non-performance of Gogo/Intelsat Services and the system (e.g., the system is inoperative, the system is
restored) as necessary and to the extent Contractor becomes aware of the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. Contractor shall provide the applicable information as agreed between Gogo and Contractor to Gogo/Intelsat with
the applicable manual reference and procedures for any service bulletins relevant to the Gogo/Intelsat Services outlining the appropriate handling procedures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. Contractor shall have the right to audit and approve any subcontractor that Gogo/Intelsat or United may select
prior to performing maintenance on contractor's aircraft. Contractor will be responsible for ensuring that all applicable Contractor requirements for repair and maintenance stations (such as any FAA required certifications) per
Contractor's maintenance manual are met.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. For any Wi-Fi repairs or alterations that are required that are not
already accepted / approved as part of the instructions for continued airworthiness (maintenance manual), Contractor shall supply the required acceptance / approval of that work, including any required engineering orders, no later than two weeks
following the request. Gogo/Intelsat shall supply all required substantiating data (service bulletins, service letters, etc.) so that Contractor can authorize the work to be performed. Contractor shall store spare parts to repair and maintain the Wi-Fi Equipment in a secure, environmentally stable location. Contractor shall maintain adequate levels of insurance against loss or damage while such spare parts are in Contractor's custody and control.

Exhibit S-3

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H. Contractor will provide a program contact and such other human resources with respect to the Wi-Fi Services, including resources onsite at certain locations at certain times, as may reasonably be required to work cooperatively with Gogo/Intelsat and its subcontractors in support of the program plan and
schedule, United will [\*\*\*] incurred in providing Gogo/Intelsat or its subcontractors such support. At the Effective Date of this Agreement, there are no known direct cost associated with this <u>Section</u> <u>8(H)</u>. Should
Contractor become aware of any direct cost pursuant to its obligations in Appendix I, Contractor will review those cost with United before they are incurred such that Contractor and United can work towards agreement on cost responsibility.

**9.**  **<u>Contractor Responsibilities- Other</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Contractor's inflight crews shall not knowingly interfere with the operation of the Wi-Fi Equipment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Contractor shall use reasonable efforts to inform its inflight crews such that the crews are reasonably
knowledgeable of the Wi-Fi Services and are able to answer general customer questions regarding such services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Contractor's inflight crews shall make timely announcements to passengers on Equipped Aircraft regarding
the availability of Wi-Fi Services

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Contractor shall keep the seatbacks on the Equipped Aircraft stocked with seatback cards containing information
about Wi- Fi Services.

**10.**  **<u>Release of Leased Aircraft</u>** 

With respect to any Equipped Aircraft (leased by Contractor from third parties or owned by Contractor) that ceases operating as United Express service, unless otherwise agreed by United and Contractor at such time, Contractor acknowledges that United or its subcontractors may de-install the Wi-Fi Equipment from such aircraft, and return such aircraft to a condition that satisfies Contractor at United's expense, it being understood that [\*\*\*]. Contractor shall make the Equipped Aircraft available for such uninstallation services as and where reasonably required by Contractor.

**11.**  **<u>Liability/Risk of Loss</u>** 

Contractor shall promptly notify United and Gogo/Intelsat of any damage (except normal wear and tear), destruction, loss (including after any event of default under a Contractor financing agreement that results in the loss of such Wi-Fi Equipment, including as a result of the foreclosure of any lien or the exercise of remedies by any financing party), theft, or governmental taking of any Wi-Fi Equipment or spare parts in Contractor's custody upon Contractor's becoming aware thereof and, whether or not covered by Contractor's insurance. In all respects, Contractor shall store, maintain and care for the Wi-Fi Equipment [\*\*\*].

Exhibit S-4

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. As between United and Contractor, United agrees to be responsible to Contractor for any damage to a Contractor
aircraft that might occur during the installation, uninstallation or maintenance of the Wi-Fi Equipment, in each case caused by or resulting from [\*\*\*]. If any such damage occurs during such installation or
maintenance, upon receipt from Contractor of a claim for the repair of any such damage to a Contractor aircraft or for reimbursement for the cost for repairing any such damage, together with reasonably detailed substantiating details for the amount
of any such claim, United agrees to cause such damage to be repaired or to reimburse Contractor for the cost of repairing such damage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Without limiting any of Contractor's obligations contained in Appendix I, Contractor shall have risk of
loss for any Wi-Fi Equipment and related equipment, spares and/or supplies while stored at Contractor's facilities. In addition, Contractor shall be liable to United for any and all damage or loss of Wi-Fi Equipment installed on Contractor aircraft caused by or resulting from Contractor's [\*\*\*].

**12.**  **<u>Installation Schedule and Support for Revenue Launch</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. <u>Fleet Availability</u>. If Gogo/Intelsat request an Equipped Aircraft inspection, then Gogo/Intelsat will
provide Contractor with at least [\*\*\*] notice prior to requesting Contractor to perform such aircraft inspection. If at least [\*\*\*] prior notice is not practical under the circumstances, Contractor will use commercially reasonable efforts to conduct
such inspection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. <u>Contractor Resources</u>. Contractor will (i) make engineering resources reasonably available to
Gogo/Intelsat on an agreed-upon schedule to assist with technical aircraft and cabin surveys, and (ii) provide information on existing aircraft systems and design-for-maintenance knowledge.

**13.**  **<u>Marketing Plan</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. <u>Initiatives</u>. Contractor will use its commercially reasonable efforts to inform and direct their
employees to keep the Wi-Fi Equipment turned on at all times. Contractor will use its commercially reasonable efforts to inform and direct their employees to: (a) make timely announcements to passengers
on Equipped Aircraft regarding the availability of Wi-Fi Services for customers to use; and (b) keep the seatbacks on the Equipped Aircraft stocked with seatback cards containing information about Wi-Fi Services at all times.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. <u>Marketing and Publicity</u>. Contractor will not use Gogo/Intelsat's or United's logotypes, trade
names, trademarks, service marks, or other proprietary marks or words, in any public statements, press releases, advertising or promotional materials with respect to the Wi-Fi Services or this Agreement
without the respective party's consent, except where a specific use has been approved in advance and in writing (e-mail will constitute a writing for this purpose).

Exhibit S-5

------

**14.**  **<u>Wi-Fi Installation Cost</u>** 

United agrees to timely purchase and pay for all materials, consumables, equipment, shipping and reasonable labor cost for the installation project, including all engineering and certification services, necessary or appropriate to complete the installation of the Wi-Fi Equipment as quickly as possible. United will reimburse Contractor for those out-of-pocket cost incurred by Contractor related to the items in this <u>Section</u> <u>15</u>.

**15.**  **<u>Removal of Wi-Fi Equipment</u>** 

At United's cost and expense, United may remove the Wi-Fi Equipment at any time, and upon any such removal, United shall repair any damage to the Contractor aircraft caused by such removal, except to the extent any such cost or expense is caused by or is resulting from the willful misconduct of Contractor or its agents, which shall be borne by Contractor.

**16.**  **<u>Ownership of Wi-Fi Equipment and Related Covenants</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. United will own, at all times, the Wi-Fi Equipment; <u>provided</u>,
that with respect to any Covered Aircrafts leased by Contractor from third parties or owned by Contractor, unless otherwise agreed between United and Contractor at such time, at the termination of the lease United may elect to remove such equipment
upon notice from Contractor at United's cost and expense and will repair any damage caused by such removal, except to the extent any such cost or expense is caused by or is resulting from any willful misconduct of Contractor or its agents,
which shall be borne by Contractor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Wi-Fi Equipment will be free from all liens or other encumbrances

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. United agrees, on United's behalf and on behalf of Gogo/Intelsat, its subcontractors, or any other party
claiming an interest in the Wi-Fi Equipment, that none of such parties shall acquire or claim, as against the owners of the Contractor aircraft or any third party providing financing with respect to the
Contractor aircraft, any right, title or interest in the Contractor aircraft or any portion thereof (other than the Wi-Fi Equipment and related parts and supplies) by reason of the installation of such Wi-Fi Equipment on Contractor aircraft.

Exhibit S-6

------

**<u>EXHIBIT T</u>**

**Cyber Data Risk Contractor Requirements** 

A. DATA SECURITY

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Contractor shall establish and maintain, data security procedures and technical, physical, administrative and
other safeguards to protect against the destruction, loss, and unauthorized access, use, possession or alteration of United Confidential Information in the possession of Contractor. Such procedures and practices shall be compliant, at a minimum,
with (a) to the extent applicable, all applicable laws, rules, regulations, directives, ordinances, codes or similar enactments that apply to United in the conduct of its business ("Data Security Laws"). All such procedures and
practices shall take into account the nature of the United Confidential Information and the commensurate risks associated with such United Confidential Information. Contractor shall maintain a complete audit trail of all access to, and use of,
United Confidential Information including, but not limited to, transactions and activities associated with United Confidential Information. Contractor also shall implement and maintain appropriate business continuity, contingency and disaster
recovery plans in order to maintain the availability, security and confidentiality of United Confidential Information and restore normal operating procedures as promptly as possible in the event of a major disruption, business interruption or
failure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Contractor shall maintain a complete, [\*\*\*] audit trail of all access to, and use of, United Confidential
Information including, but not limited to, transactions and activities associated with United Confidential Information. Contractor agrees to complete, within [\*\*\*] of receipt, an audit questionnaire provided by United or United's designee
regarding Contractor's information security program.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. No less than annually, in lieu of an on-site audit, upon request by
United, Contractor agrees to complete, within [\*\*\*] of receipt, an audit questionnaire provided by United or United's designee regarding Contractor's information security program. Contractor shall have conducted an external penetration
test of its information security program at least annually and anytime there is a significant infrastructure or application upgrade or modification (e.g., new system component installations, addition of a sub-network, or web server) and provide such findings to United, all at the Contractor's sole expense. Contractor shall implement at its sole expense any remedial actions as identified by United or as a
result of the penetration testing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. All United Confidential Information must be stored only on computer systems located in the continental United
States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. United has the right, in its sole and absolute discretion at any time and from time to time for any reason, to
restrict, discontinue, suspend, cancel, terminate or modify Contractor's right to use, obtain, access, hold or process United Confidential Information, in order to protect and secure United Confidential Information. Upon termination or
United's request, Contractor

Exhibit T-1

------

shall return in a manner and format reasonably requested by United, or, if specifically directed by United, shall destroy, United Confidential Information in Contractor's possession, power or control, in a manner that assures same is rendered unintelligible and unrecoverable. Upon termination or United's instruction to destroy or return all United Confidential Information, all copies of United Confidential Information shall be permanently removed from all of Contractor's, its agents', subcontractors' or third parties' facilities, systems, records, archives and backups, and all subsequent use of such information by Contractor, its agents, subcontractors or third parties shall cease. Contractor shall remove all United Confidential Information from any media taken out of service and shall destroy or securely erase such media in accordance with the requirements in this Agreement. No media on which United Confidential Information is stored may be used or re-used to store data of any other customer of Contractor or to deliver data to a third party, including another Contractor customer, unless securely erased in accordance with the requirements in this Agreement. If Contractor disposes of any paper or electronic record containing United Confidential Information for any reason Contractor agrees that disposal or reuse of all magnetic media (e.g. hard disk, floppy disk, removable media, etc.) that may have contained United Confidential Information shall be subject to a data sanitization process which meets or exceeds DoD 5220.28-M 3-pass specifications. Certification of the completion of data sanitization shall be provided to United within [\*\*\*] of completion. Acceptance of Certification of Data Sanitization by United's IT Security & Risk Management team is required prior to media reuse or disposal. Contractor agrees that all other materials which contain United Confidential Information shall be physically destroyed and shredded in accordance to NIST Special Publication 800-88, Guidelines for Media Sanitization, specifications.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Contractor agrees to be responsible for safekeeping all keys, access codes, passwords, combinations, access
cards, personal identification numbers and similar security codes and identifiers issued to Contractor's employees, agents or Contractors. Contractor agrees to require its employees, agents, or Contractors to promptly report a lost or stolen
device which contains, stores or has access to United Confidential Information to their primary business contact and to [\*\*\*].

B. System Connections

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. In addition to the Contractor's obligations under this Agreement related to the safe-keeping of United
Confidential Information and in order to protect United's automated information technology assets Consultant agrees that it shall comply with the provisions of this Section.11. B.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Minimum Standard for Data at Rest and Data in Motion. Contractor agrees, at a minimum, to comply, with National
Institute of Standards and Technology (NIST) Special Publication 800-53 Moderate Level Control or ISO 27001/27002 standards. Contractor further acknowledges that valid encryption processes for data in motion
(e.g., transmitted through a network) are those which comply with NIST Special Publications 800-52, Guidelines for the Selection and Use of Transport Layer Security Implementation; 800-77, Guide to IPsec VPNs; or 800-113, Guide to SSL VPNs, or others which are Federal Information Processing Standards (FIPS) 140-2 validated.

Exhibit T-2

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Requirement to Maintain Security Program. Contractor shall be responsible for establishing and maintaining an
information security program that is designed to: (i) ensure the security and confidentiality of United Confidential Information and United's automated information assets; (ii) protect against any anticipated threats or hazards to the
security or integrity of United Confidential Information and United's automated information assets; (iii) protect against unauthorized access to or use of United Confidential Information and United's automated information assets;
(iv) ensure the proper disposal of United Confidential Information; and, (v) ensure that all Contractors of Contractor, if any, comply with all of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. As part of the security program Contractor will establish a vulnerability management program to ensure critical
and high vulnerabilities are remediated within [\*\*\*] of discovery. Contractor will also address vulnerabilities identified by United or an independent researcher within [\*\*\*].

Exhibit T-3

------

**<u>EXHIBIT U</u>**

**[\*\*\*]** 

Exhibit U-1

------

**<u>EXHIBIT V</u>**

**[\*\*\*]** 

[\*\*\*]

Exhibit V-1

------

**<u>EXHIBIT W</u>**

[\*\*\*]

[\*\*\*]

Exhibit W-1

## Exhibit 10.27

**Exhibit 10.27.21** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

April 4, 2025

United Airlines, Inc.

233 S. Wacker Drive

Chicago, Illinois 60606

Re: Amendment No. 1 to A&R CPA — Aircraft Ownership/month rate for New E175LR Tranche 1 Aircraft 20-38, and other amendments

Ladies and Gentlemen,

Reference is made to that certain Amended and Restated Capacity Purchase Agreement (the "**<u>Agreement</u>**") dated as of January 25, 2023, by and among United Airlines, Inc., a Delaware corporation (together with its successors and assigns, "**<u>United</u>**"), Republic Airways Inc., an Indiana corporation ("**<u>Contractor</u>**"), and Republic Airways Holdings Inc., a Delaware corporation ("**<u>Parent</u>**"). When fully executed, this "**<u>Amendment</u>**" will evidence our mutual understanding and agreement that, effective as of January 15, 2025, the Agreement is hereby amended as set forth below. Capitalized terms used in this Amendment but not defined herein shall have the meanings ascribed to those terms in the Agreement.

1. <u>Change of [\*\*\*] rate [\*\*\*]</u>. [\*\*\*]

2. <u>Table 3 to Schedule 1</u>. <u>Schedule 1</u> of the Agreement is hereby amended by adding the following
header in front of the table that appears on page 2 of Schedule 1: "Table 3: Covered Aircraft – New E175LR Tranche 1 Aircraft."

3. <u>Early Removal or Non-Comp Aircraft Selection</u>. The parties agree
that in the event United elects, in accordance with the rights available to United in the Agreement, to remove a New E175LR Tranche 1 Covered Aircraft [\*\*\*].

4. <u>[\*\*\*]</u>. No later than 60 days following the date of this Agreement, United shall offer to Contractor a
proposed [\*\*\*].

5. <u>Enforceability</u>. Each of Contractor and United represents and warrants that this Amendment is fully
effective and enforceable as of the date of this Amendment upon its full execution by the parties.

------

6. <u>Miscellaneous</u>. This Amendment is an intended amendment to the Agreement and complies in full with
Section 10.04 (*Amendment and Modification*) of the Agreement. The terms set forth above are deemed to be incorporated in and made a part of the Agreement. This Amendment and the information contained herein are subject to the restrictions
set forth in Section 10.07 (*Confidentiality*) of the Agreement, which shall apply hereto; and the provisions of Section 10.15 (*Governing Law*) of the Agreement shall apply to this Amendment. It is hereby expressly understood
and agreed between Contractor and United that all other terms and conditions of the Agreement will remain in full force and effect. This Amendment may be signed by counterparts by each party hereto, each of which is deemed an original hereof, and
delivered by electronic mail in .pdf format. Notwithstanding anything to the contrary in this Amendment, the terms and provisions of this Amendment are intended solely for the benefit of the parties, and it is not the intention of the parties to
confer third party beneficiary rights upon any other person. This Amendment (together with the attached exhibits) constitutes the entire agreement between the parties, and supersedes any other agreements, representations, warranties, covenants,
communications, or understandings, whether oral or written (including, but not limited to, e-mail and other electronic correspondence), that may have been made or entered into by or between the parties or any
of their respective affiliates or agents relating in any way to the transactions contemplated by this Amendment.

If you are in agreement with the foregoing, indicate your assent by signing a counterpart of this Amendment in the space below provided for that purpose.

[*Signature Page Follows.*]

------

---

| | |
|:---|:---|
| REPUBLIC AIRWAYS INC. | REPUBLIC AIRWAYS INC. |
| By: | /s/ Joesph P. Allman |
| Name: | Joseph P. Allman |
| Title: | SVP, CFO |
| REPUBLIC AIRWAYS HOLDINGS INC. | REPUBLIC AIRWAYS HOLDINGS INC. |
| By: | /s/ Joesph P. Allman |
| Name: | Joseph P. Allman |
| Title: | SVP, CFO |

---

---

| | |
|:---|:---|
| UNITED AIRLINES, INC. | UNITED AIRLINES, INC. |
| By: | /s/ Gerald Laderman |
| Name: | Gerald Laderman |
| Title: | EVP and CFO |

---

## Exhibit 10.27

**Exhibit 10.27.22** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

April 4, 2025

United Airlines, Inc.

233 S. Wacker Drive

Chicago, Illinois 60606

Re: Mesa Airlines CPA

Ladies and Gentlemen,

This letter agreement (this "**<u>Agreement</u>**") will evidence the mutual understanding and agreement of United Airlines, Inc., a Delaware corporation (together with its successors and assigns, "**<u>United</u>**"), and Republic Airways Holdings Inc., a Delaware corporation (together with its successors and assigns, "**<u>Republic</u>**"), for United and Mesa Airlines, Inc., a Delaware corporation ("**<u>Mesa Airlines</u>**"), to enter into the Capacity Purchase Agreement in the form attached hereto as Exhibit 1 or with such changes as Republic and United may agree to make prior to the Effective Time (as defined below) (the "**<u>New CPA</u>**"), immediately upon the effectiveness of the merger (the "**<u>Merger</u>**") of Republic and Mesa Air Group, Inc, a Nevada corporation ("**<u>Mesa Topco</u>**", together with Mesa Airlines and its and their affiliates, "**<u>Mesa</u>**"), pursuant to that certain Agreement and Plan of Merger, dated as of the date hereof, between Republic and Mesa Topco (the "**<u>Merger Agreement</u>**"), a true and complete copy (together with all relevant exhibits and schedules) of which has been provided to United by Republic on or prior to the date of this Agreement. Capitalized terms used in this Agreement but not defined herein shall have the meanings ascribed to those terms in the New CPA. In reliance on the foregoing and for good and valuable consideration, the receipt, validity and sufficiency of which are hereby acknowledged by the parties, each party signatory to this Agreement agrees to the following:

1. <u>Entry into New CPA</u>. Immediately upon (and conditional upon) the effectiveness of the Merger (the
"  **<u>Effective Time</u>** "), United shall execute and deliver to Republic, and Republic shall cause Mesa Airlines to execute and deliver to United, the New CPA.

2. <u>Agreed Lease Terms</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. United acknowledges that the terms of the form of aircraft lease set forth in Exhibit C to the New CPA (the
"  **<u>Agreed Lease Form</u>**") have been negotiated and are a material part of the agreement between the parties with respect to the New CPA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Notwithstanding the foregoing, if the Agreed Lease Form requires revisions for any aircraft [\*\*\*], so that
[\*\*\*] as a result thereof.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. In connection with and for purposes of implementation of such Agreed Lease Form, and acknowledging that
preservation of existing Financings (without breach by United as a result of use of the Agreed Lease Form) is a material requirement for United, the parties further agree [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. If, following the execution and delivery of the Covered Aircraft Leases, United is required [\*\*\*] to [\*\*\*],
then Republic shall [\*\*\*].

*3.* <u>Preparations for New CPA</u>. Prior to the Effective Time, United shall use commercially reasonable
efforts to [\*\*\*] for the purpose of preparing for the commencement of the Regional Airline Services, including without limitation [\*\*\*]. Nothing in this <u>Section</u> <u>3</u> is intended to, or shall be construed to, amend or modify,
or limit any obligation under, <u>Section</u> <u>1</u> of this Agreement.

*4.* <u>Requests for Additional Information</u>. Prior to the day that is [\*\*\*] prior to the then expected
Effective Time, if Republic determines [\*\*\*], then Republic may request United to [\*\*\*]. Upon receipt of any such notice from Republic, United shall [\*\*\*]. Nothing in this <u>Section</u> <u>4</u> is intended to, or shall be construed to,
amend or modify, or limit any obligation under, <u>Section</u> <u>1</u> of this Agreement.

5. <u>Enforceability</u>. Each of Republic and United represents and warrants that this Agreement is fully
effective and enforceable as of the date of this Agreement upon its full execution by the parties.

6. <u>Termination</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. This Agreement may be terminated and the transactions contemplated hereby abandoned only in accordance with
this <u>Section</u> <u>5</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. This Agreement shall automatically be terminated upon the earlier to occur of (i) the termination of the
Merger Agreement in accordance with its terms and (ii) the termination of that certain Three Party Agreement by and among United, Republic, Mesa, and Mesa Representative dated as of the date of this Agreement (the
"  **<u>TPA</u>** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. In the event of the termination of this Agreement in accordance with this <u>Section</u> <u>6</u>,
this Agreement shall forthwith become void and have no further force or effect; <u>provided</u>, that (i) <u>Sections 6</u> and <u>7</u> shall survive the termination of this Agreement and remain in full force and effect in accordance with
their respective terms and (ii) no such termination shall relieve either party of liability for its pre-termination breach of this Agreement.

7. <u>Miscellaneous</u>. Section 5.3, Section 5.4 and Sections 6.2 through 6.13 of the TPA are hereby
incorporated by reference herein, *mutatis mutandis*. For the avoidance of doubt, nothing in this Agreement is intended to, or shall be construed to, amend or modify, or limit any obligation under, the New CPA.

If you are in agreement with the foregoing, indicate your assent by signing a counterpart of this Agreement in the space below provided for that purpose.

------

[*Signature Page Follows.*]

------

---

| | |
|:---|:---|
| REPUBLIC AIRWAYS HOLDINGS INC. | REPUBLIC AIRWAYS HOLDINGS INC. |
| By: | /s/ Joseph P. Allman |
| Name: Joseph P. Allman | Name: Joseph P. Allman |
| Title: SVP, CFO | Title: SVP, CFO |

---

---

| | |
|:---|:---|
| UNITED AIRLINES, INC. | UNITED AIRLINES, INC. |
| By: | /s/ Michael Leskinen |
| Name: Michael Leskinen | Name: Michael Leskinen |
| Title: Executive Vice President and Chief Financial Officer | Title: Executive Vice President and Chief Financial Officer |

---

------

Exhibit 1

<u>Form of Capacity Purchase Agreement</u> 

------

**CAPACITY PURCHASE AGREEMENT** 

**AMONG** 

**UNITED AIRLINES, INC.** 

**AND** 

**[NAVY OPERATING COMPANY]** 

**AND** 

**[NAVY PARENT]** 

**DATED AS OF [•], 2025** 

*This document is intended solely to facilitate discussions among the parties identified herein. It is not intended to create, and will not be deemed to create, a legally binding or enforceable offer or agreement of any type or nature prior to the duly authorized and approved execution of this document by all such parties and the delivery of an executed copy hereof by all such parties to all other parties.* 

------

---

| | | |
|:---|:---|:---|
|  ARTICLE I DEFINITIONS, AVAILABLE COVERED AIRCRAFT AT START, BRIDGING | ARTICLE I DEFINITIONS, AVAILABLE COVERED AIRCRAFT AT START, BRIDGING | 1 |
|  ARTICLE II CAPACITY PURCHASE, SCHEDULES AND FARES | ARTICLE II CAPACITY PURCHASE, SCHEDULES AND FARES | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.01 | *Capacity Purchase* | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.02 | *Flight-Related Revenues* | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.03 | *Pass and Reduced Rate Travel* | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.04 | *Conversion of Aircraft Livery* | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.05 | *Exclusivity* | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.06 | *[\*\*\*]* | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.07 | *Diversions* | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.08 | *Ground Delay Program* | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.09 | *Staffing* | 7 |
|  ARTICLE III CONTRACTOR COMPENSATION | ARTICLE III CONTRACTOR COMPENSATION | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.01 | *Base and Incentive Compensation* | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.02 | *Contractor Expenses* | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.03 | *United Expenses* | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.04 | *Audit Rights; Financial Information* | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.05 | *Billing and Payment; Reconciliation* | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.06 | *[\*\*\*]* | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.07 | *Reports* | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.08 | *[\*\*\*]* | 11 |
|  ARTICLE IV CONTRACTOR OPERATIONS AND AGREEMENTS WITH UNITED | ARTICLE IV CONTRACTOR OPERATIONS AND AGREEMENTS WITH UNITED | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.01 | *Governmental Regulations; Maintenance* | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.02 | *Quality of Service* | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.03 | *Incidents or Accidents* | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.04 | *Emergency Response* | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.05 | *Safety Matters* | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.06 | *Codeshare Terms* | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.07 | *Slots and Route Authorities* | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.08 | *Use of United Marks* | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.09 | *Use of Contractor Marks* | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.10 | *Catering Standards* | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.11 | *Fuel Efficiency Program* | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.12 | *Pass-Through Maintenance Costs* | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.13 | *Unauthorized Payments* | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.14 | *Environmental* | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.15 | *Lease, Use and Modification of Airport Facilities* | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.16 | *Fuel Procurement and Fuel Services* | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.17 | *Ground Handling* | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.18 | *Flight Crews* | 20 |

---

------

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.19 | *Intentionally omitted* | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.20 | *Uniforms; ALPA Letter Observance* | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.21 | *Operations Specifications Certificate* | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.22 | *Information Technology* | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.23 | *[\*\*\*]* | 21 |
|  ARTICLE V CERTAIN RIGHTS OF UNITED | ARTICLE V CERTAIN RIGHTS OF UNITED | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.01 | *Use of Covered Aircraft* | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.02 | *No Operation Outside Agreement, Charters* | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.03 | *Intentionally omitted* | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.04 | *[\*\*\*]* | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.05 | *[\*\*\*]* | 21 |
|  ARTICLE VI INSURANCE AND TAXES | ARTICLE VI INSURANCE AND TAXES | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.01 | *Minimum Insurance Types* | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.02 | *Endorsements* | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.03 | *Evidence of Insurance Coverage* | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.04 | *Failure to Maintain Insurance* | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.05 | *Taxes* | 23 |
|  ARTICLE VII INDEMNIFICATION | ARTICLE VII INDEMNIFICATION | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.01 | *Contractor Indemnification of United* | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.02 | *United Indemnification of Contractor* | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.03 | *Indemnification Claims* | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.04 | *Employer's Liability; Independent Contractors; Waiver of Control* | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.05 | *Unauthorized Obligations* | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.06 | *Survival* | 27 |
|  ARTICLE VIII TERM, TERMINATION AND DISPOSITION OF AIRCRAFT | ARTICLE VIII TERM, TERMINATION AND DISPOSITION OF AIRCRAFT | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.01 | *Term; United Swap Removal Right* | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.02 | *Early Termination* | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.03 | *Disposition of Aircraft during Wind-Down Period* | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.04 | *[\*\*\*]* | 32 |
|  ARTICLE IX REPRESENTATIONS, WARRANTIES AND COVENANTS | ARTICLE IX REPRESENTATIONS, WARRANTIES AND COVENANTS | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.01 | *Representations, Warranties and Covenants of Contractor* | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.02 | *Representations and Warranties of United* | 34 |
|  ARTICLE X MISCELLANEOUS | ARTICLE X MISCELLANEOUS | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.01 | *Intentionally omitted* | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.02 | *Notices* | 35 |

---

------

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.03 | *Binding Effect; Assignment* | 36.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.04 | *Amendment and Modification* | 36.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.05 | *Waiver* | 36.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.06 | *Interpretation* | 36.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.07 | *Confidentiality* | 37.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.08 | *Arbitration* | 38.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.09 | *Confidentiality* | 39.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.10 | *Counterparts* | 40.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.11 | *Severability* | 40.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.12 | *Equitable Remedies* | 40.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.13 | *Relationship of Parties* | 40.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.14 | *Entire Agreement; No Third Party Beneficiaries* | 40.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.15 | *Governing Law* | 40.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.16 | *Right of Set-Off* | 41.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.17 | *Cooperation with Respect to Reporting* | 41.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.18 | *Covered Aircraft Lease; Delivery; Acceptance; Spare Engine Lease* | 41.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.19 | *Placement into Service* | 42.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.20 | *Early Brake Release* | 42.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.21 | *Cumulative Remedies* | 42.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.22 | *Intentionally omitted* | 42.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.23 | *Force Majeure* | 42.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.24 | *United Wifi* | 42.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.25 | *Cybersecurity Addendum.* | 42.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.26 | *Manufacturer Guarantees* | 43.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.27 | *Punitive Damages* | 43.0 |

---

---

| | |
|:---|:---|
| SCHEDULE 1: | Covered Aircraft |
| SCHEDULE 2: | [\*\*\*] |
| SCHEDULE 3: | Compensation |
| EXHIBIT A: | Definitions |
| EXHIBIT B: | [\*\*\*] |
| EXHIBIT C: | Covered Aircraft Leases |
| EXHIBIT D: | Terms of Codeshare Arrangements |
| EXHIBIT E: | Non-Revenue Pass Travel |
| EXHIBIT F: | United Directed Charter Flight Operations |
| EXHIBIT G: | Use of United Marks and Other Identification |
| EXHIBIT H: | Use of Contractor Marks |
| EXHIBIT I: | Catering Standards |
| EXHIBIT J: | Aircraft Cleanliness and Refurbishment Standards |
| EXHIBIT K: | [Intentionally omitted] |
| EXHIBIT L: | Fuel Efficiency Program |

---

------

---

| | |
|:---|:---|
| EXHIBIT M: | [\*\*\*] |
| EXHIBIT N: | [Intentionally omitted] |
| EXHIBIT O: | Safety Standards for United and United Express Carriers |
| EXHIBIT P: | Ground Handler Indemnity |
| EXHIBIT Q: | [Intentionally omitted] |
| EXHIBIT R: | Reasonable Operating Constraints |
| EXHIBIT S: | United WiFi |
| EXHIBIT T: | Cyber Data Risk Contractor Requirements |
| EXHIBIT U: | [\*\*\*] |
| EXHIBIT V: | [\*\*\*] |
| EXHIBIT W: | [Intentionally omitted] |

---

------

**Capacity Purchase Agreement** 

This **Capacity Purchase Agreement** (this "**<u>Agreement</u>**"), dated as of [•], 2025 (the "**Effective Date**"), is among United Airlines, Inc., a Delaware corporation (together with its successors and assigns, "**<u>United</u>**"), [NAVY], a [Delaware] corporation ("**<u>Contractor</u>**"), and [PARENT], a [Delaware] corporation ("**<u>Parent</u>**").

**WHEREAS**, United and Contractor desire to enter into new terms and conditions relating to Contractor's provision of Regional Airline Services for the operation of Scheduled Flights using certain Embraer E175 aircraft;

**WHEREAS**, the parties have previously entered into, or will, subsequent to the execution and delivery of this Agreement, enter into, Ancillary Agreements (as defined below), including the aircraft leases, in each case intending that each such Ancillary Agreement be considered, and they are, an integral part of this Agreement.

**NOW**, **THEREFORE**, in consideration of the foregoing premises and the mutual covenants and obligations hereinafter contained, the parties agree to:

**ARTICLE I** 

**DEFINITIONS, AVAILABLE COVERED AIRCRAFT AT START, BRIDGING** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(a)</u> Capitalized terms used in this Agreement (including, unless otherwise defined therein, in the Schedules, Appendices and Exhibits to this Agreement) shall have the meanings set forth in <u>Exhibit</u> <u>A</u> and <u>Schedule 3</u> hereto, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) [\*\*\*]

**ARTICLE II** 

**CAPACITY PURCHASE, SCHEDULES AND FARES** 

*Section 2.01 <u>Capacity Purchase</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Capacity</u>.* Subject to the terms and conditions of this Agreement, (i) United agrees to purchase the capacity (both passenger and cargo capacity) of the Covered Aircraft for the Term for the consideration described in this Agreement (including in <u>Article</u> <u>III</u>), and (ii) Contractor shall provide all of the capacity of the Covered Aircraft solely to United and use the Covered Aircraft solely to operate the Scheduled Flights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Fares, Rules and Seat Inventory</u>*. United shall establish and publish all fares and related tariff rules for all seats on the Covered Aircraft. Contractor shall not publish any fares, tariffs, or related information for the Covered Aircraft. In addition, United shall have complete control over all seat inventory and inventory and revenue management decisions for the Covered Aircraft, including overbooking levels, discount seat levels and allocation of seats among various fare buckets. Both parties agree to comply with all applicable terms and conditions outlined in the Related Agreements relating to positive space and space available travel [\*\*\*].

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>Flight Schedules</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) United shall, in its sole discretion, establish and publish all flight schedules for the Covered Aircraft (such scheduled flights, together with United Directed Charter Flights and ferry flights required to accommodate such scheduled flights and United Directed Charter Flights or otherwise made at United's request, referred to herein as "**<u>Scheduled Flights</u>**"), including determining the city-pairs served, frequencies, utilization and timing of scheduled arrivals and departures, and shall, in its sole discretion, make all determinations regarding the establishment and scheduling of any United Directed Charter Flights; *provided* that such schedules shall be subject to Reasonable Operating Constraints and the provisions of this <u>Section</u> <u>2.01</u>; *provided further* that Contractor shall operate United Directed Charter Flights on behalf of United, if any, at rates set forth in <u>Appendix 1</u> to <u>Schedule</u> <u>3</u>. United shall also be entitled, in its sole discretion and at any time prior to takeoff, to direct Contractor to delay or cancel a Scheduled Flight, including for delays and cancellations that are ATC or weather related, and Contractor shall take all necessary action to give effect to any such direction, *provided* that if United, following delivery of a Final Monthly Schedule for such calendar month, directs the cancellation of flights (each, a "**<u>United Cancelled Flight</u>**" and collectively, the "**<u>United Cancelled Flights</u>**") below and that flight cancellation is coded as a United Cancelled Flight in United's systems as a United initiated cancellation, then United shall pay Contractor in accordance with the rates set forth in <u>Schedule 3</u> for each United Cancelled Flight, as if each such United Cancelled Flight had been operated as contemplated in the Final Monthly Schedule as the sole compensation for such flight, and United Cancelled Flights shall be Uncontrollable Cancellations for all purposes hereunder (for the avoidance of doubt, this proviso shall not apply to cancellations caused solely by schedule reduction requests submitted by Contractor). Contractor shall be entitled to make such maintenance, ferry and repositioning flights as may reasonably be required to facilitate the proper maintenance of the Covered Aircraft or to accommodate the Scheduled Flights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) At least [\*\*\*] prior to the first day of each month to which a proposed Final Monthly Schedule relates, Contractor and United shall meet to review the planned flight schedules for the Available Covered Aircraft for such month (the "**<u>Initial Proposed Monthly Schedule</u>**"), and United shall also present a non-binding estimate of the aggregate Block Hours forecasted by United to be flown by Contractor pursuant to this Agreement during the rolling [\*\*\*] following the date of such meeting. Without limiting any of United's rights or remedies set forth in this Agreement, United shall review and consider in good faith any changes to the planned flight schedule for the Available Covered Aircraft, including changes (x) to the Initial Proposed Monthly Schedule and (y) as suggested in good faith and in writing by Contractor (which United agrees may be in the form of an email communication if in compliance with <u>Section</u> <u>10.02</u>) to United in regards to Staffing Incapacity (as defined below). "**<u>Staffing Incapacity</u>**" means the inability of Contractor to [\*\*\*].

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Not later than [\*\*\*] prior to the beginning of the calendar month to which an Initial Proposed Monthly Schedule relates, United will deliver to Contractor the proposed Final Monthly Schedule (the "**<u>Proposed Final Monthly Schedule</u>**"). Following such delivery of the Proposed Final Monthly Schedule, however, on reasonable notice to Contractor, United may make such adjustments to the Proposed Final Monthly Schedule as it deems appropriate (subject to Reasonable Operating Constraints); *provided* that such adjustments requested by United shall not increase, decrease or otherwise modify the aggregate Scheduled Flights in the Proposed Final Monthly Schedule [\*\*\*], except that [\*\*\*] shall be considered in good faith by Contractor but shall remain subject to Contractor's prior written consent [\*\*\*]. In the event the Proposed Final Monthly Schedule is revised in accordance with this <u>Section</u> <u>2.01(c)(iii)</u>, United shall deliver a revised Proposed Final Monthly Schedule to Contractor as soon as reasonably practicable and in any event not less than [\*\*\*] to the beginning of the calendar month to which such Proposed Final Monthly Schedule relates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Upon the date which is [\*\*\*] prior to the beginning of the calendar month to which the most recent Proposed Final Monthly Schedule relates, such Proposed Final Monthly Schedule shall be deemed to be the final monthly schedule (the "**<u>Final Monthly Schedule</u>**"). Following such delivery of the Final Monthly Schedule, however, on reasonable notice to Contractor, United may make such adjustments to the Final Monthly Schedule as it deems appropriate (subject to Reasonable Operating Constraints); *provided* that such adjustments requested by United shall not increase, decrease or otherwise modify the aggregate Scheduled Flights in the Final Monthly Schedule [\*\*\*]. Any downward adjustment to the Final Monthly Schedule shall be coded as a United Cancelled Flight in accordance with <u>Section</u> <u>2.01(c)(i)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) With respect to each Initial Proposed Final Monthly Schedule, each Proposed Final Monthly Schedule and each Final Monthly Schedule, Contractor shall deliver to United a statement [\*\*\*]. In each such statement, Contractor shall [\*\*\*]. If Contractor fails to submit a statement as to any such schedule, then Contractor shall be deemed to have confirmed that Contractor has sufficient pilots to allow Contractor to accommodate such schedule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) For the purposes of <u>Section</u> <u>5.05</u> and <u>Section</u> <u>8.02(b)(iii)</u>, any reduction of Block Hours to any Proposed Final Monthly Schedule or Final Monthly Schedule solely as a result of United's reductions under <u>Section</u> <u>2.01(c)(iii)</u> or <u>Section</u> <u>2.01(c)(iv)</u> shall not be calculated as implied cancellations in the determination of Contractor's Controllable Completion Factor for the calendar months in which such Block Hours are reduced under this <u>Section</u> <u>2.01(c)</u>. For the avoidance of doubt, other than (A) United Cancelled Flights; (B) cancelations for which United has expressly waived Controllable Cancellation status in a written waiver; (C) any other Uncontrollable Cancellation; and (D) as provided for in <u>Section</u> <u>2.01(f)</u>, any reduction of Block Hours due to a cancelation of Scheduled Flights shall be [\*\*\*] for all purposes of this Agreement.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>[\*\*\*]</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *<u>Aircraft Removal Rights in the Event of Certain Schedule Reduction Requests</u>.* Upon each request by Contractor for a schedule reduction [\*\*\*], and to the extent thereof, United shall have the right, exercisable at its sole option, to remove a number of Available Covered Aircraft from this Agreement proportional to any such schedule reductions sought by Contractor, by providing Contractor a written notice within [\*\*\*] of the beginning of such schedule reduction, specifying the number of aircraft to be removed, and the withdrawal date(s) of any such aircraft so removed; *provided* that as to individual tail selection of Covered Aircraft removed under this <u>Section</u> <u>2.01(e)</u> and the sequencing thereof, United shall [\*\*\*]; *provided further, however*, that (x) [\*\*\*], and (y) if [\*\*\*], then the parties shall use good faith efforts to resolve any disagreements as quickly as practicable. Each such notice of removal from United shall specify the number of aircraft to be removed, the withdrawal date(s) of any such aircraft so removed, and such withdrawal date(s) shall be within [\*\*\*] from the delivery of such notice. For the avoidance of doubt, the provisions in this <u>Section</u> <u>2.01(e)</u> are in addition to, and not in lieu of, the provisions set forth in <u>Section</u> <u>2.01(d)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *<u>Certain Schedule Adjustments</u>*. If, after United's delivery of the Final Monthly Schedule, United has fully complied with the scheduling requirements set forth in <u>Section</u> <u>2.01(c)</u>, either (x) at Contractor's request, after consulting with Contractor's COO in an effort to resolve any concerns regarding Contractor's ability to perform, that such flight would have resulted in a Controllable Cancellation, or (y) United reasonably believes that Contractor will be unable to perform the Final Monthly Schedule as presented and Contractor failed to operate at a [\*\*\*] for [\*\*\*] immediately preceding the delivery of such Final Monthly Schedule, then, in each case, United shall have the right to adjust the Final Monthly Schedule in accordance with <u>Section</u> <u>2.01(c)(iv)</u> and in good faith, any cancellations directed by United in connection with any such adjustment shall be deemed to be Controllable Cancellations; *provided, however,* that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) no such Controllable Cancellations designated under this <u>Section</u> <u>2.01(f)</u> shall be [\*\*\*], and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) in the case of a Subject Schedule, the number of Controllable Cancellations [\*\*\*] shall be limited to the extent that the Subject Schedule [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) *<u>Charter Flights</u>*. If Contractor does not have them as of the Effective Date, Contractor shall make reasonable efforts to procure, and, once procured, shall maintain from and after such procurement, all certifications, permits, licenses, certificates, exemptions, approvals, plans, and insurance required by Governmental Authorities and airport authorities necessary or appropriate to operate charter flights in North America, including approvals required pursuant to Part 121 of the Federal Aviation Regulations set forth in 14 C.F.R. §§ 121.1 – 121.1500 with respect to supplemental operations. Contractor shall be obligated to operate charter flights pursuant to <u>Exhibit</u> <u>F</u> as directed by United in United's sole discretion ("**<u>United Directed Charter Flights</u>***"),* it being understood that scheduling of United Directed Charter Flights shall be included in the Initial Proposed Monthly Schedule and the Final Monthly Schedule in accordance with <u>2.01(c)</u> and Reasonable Operating Constraints set forth on <u>Exhibit R</u>.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) *<u>[Intentionally omitted]</u>*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *<u>Spare Aircraft</u>*. Notwithstanding anything in this <u>Section</u> <u>2.01</u> or elsewhere in this Agreement to the contrary but subject to the provisions below in this <u>Section</u> <u>2.01(i)</u>, with respect to the Covered Aircraft, Contractor shall at all times maintain the number of spare regional jet aircraft equal to the quotient obtained by dividing (x) as of any time of determination, the sum of the number of Covered Aircraft at such time by (y) [\*\*\*], rounding the quotient to the nearest whole number; *provided* that a quotient ending at or below 0.50 shall be rounded down and a quotient ending above 0.50 shall be rounded up. In addition, subject to applicable Reasonable Operating Constraints and pilot availability, Contractor will use commercially reasonable efforts to utilize such Spare Aircraft to operate flights as directed by United (unless such Spare Aircraft was, prior to such direction by United, already scheduled pursuant to a Final Monthly Schedule), including flights originally scheduled to be operated by United or other United service providers; *provided further* that if a Scheduled Flight is delayed or cancelled due to the unavailability of a Spare Aircraft which unavailability would not have occurred but for Contractor's use of such Spare Aircraft at United's direction pursuant to this sentence, then, each such delay or cancellation occurring within a reasonable period after such unavailability shall be deemed an Uncontrollable Delay or an Uncontrollable Cancellation. Notwithstanding anything to the contrary in this Agreement, Contractor must obtain United's prior written consent before it operates a Spare Aircraft for a Scheduled Flight if such Spare Aircraft's aircraft type has fewer seats than the aircraft type for the aircraft originally scheduled to operate such Scheduled Flight.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) *<u>Station Operations Center (SOC)</u>*. Upon United's delivery of a written request from time to time, which request shall be revocable by United at any time upon United providing Contractor with at least [\*\*\*] prior notice (and in addition to the rates outlined in <u>Schedule 3</u>), Contractor will provide: (i) adequate staffing in the United Airlines Stations Operations Center of each city in which a Hub Airport is located, and United shall reimburse Contractor for its reasonable documented incremental costs actually incurred and solely attributable to Contractor's compliance with United's request under this <u>paragraph (j)</u> and solely to the extent such costs were approved by United in writing in advance; (ii) Contractor will provide a full-time representative in the United Airlines Stations Operations Center of each city in which a Hub Airport is located and at which the number of Departures in any such city exceeds [\*\*\*] and Contractor's average daily flights at such Hub exceed [\*\*\*] in any 90 day period prior to the delivery of such request by United, and United shall reimburse Contractor for its reasonable documented incremental costs actually incurred and solely attributable to Contractor's compliance with United's request under this <u>paragraph (j)</u> and solely to the extent such costs were approved by United in writing in advance; and (iii) a point of contact and make a representative available on a limited basis in the United Airlines Stations Operations Center of each city in which a Hub Airport is located and at which the number of Departures in such city is less than [\*\*\*] in any 90 day period prior to the delivery of such request by United. United shall reimburse for Contractor for its reasonable documented incremental costs actually and incurred solely attributable to Contractor's compliance with United's request under this <u>paragraph (j)</u> and solely to the extent such costs were approved by United in writing in advance.

------

*Section 2.02 <u>Flight-Related Revenues</u>*. Contractor acknowledges and agrees that all revenues resulting from the sale and issuance of passenger tickets associated with the operation of the Covered Aircraft and all other sources of revenue associated with the operation of the Covered Aircraft, including revenues relating to United Directed Charter Flights, the transportation of cargo or mail, the sale of food, beverages and onboard entertainment, checked baggage fees, duty-free services, exterior and interior advertising and guaranteed or incentive payments from airport or Governmental Authorities, civic associations or other third parties in connection with scheduling flights to such airport or locality are the sole property of and shall be retained by United (or, if received by Contractor, shall be promptly remitted to United, free and clear of claims of any third party arising by, through or under Contractor or its affiliates). Contractor agrees that it shall reasonably cooperate with United so as to permit United to receive all revenues of the types described above.

*Section 2.03 <u>Pass and Reduced Rate Travel</u>*. Each party will comply with the terms of that certain United Express Interline Agreement Space Available Pleasure Travel Program. However, United has the right to retain all revenue generated from reduced rate travel, including companion passes, both on United and United Express operated flights. All pass travel and other non-revenue travel on any Scheduled Flight shall be administered in accordance with <u>Exhibit E</u>.

*Section 2.04 <u>Conversion of Aircraft Livery</u>*. If, at any time from time to time, United delivers a written request to Contractor for one or more Covered Aircraft to be prepared by Contractor in the livery as required by <u>Paragraph</u> <u>8</u> of <u>Exhibit</u> <u>G</u>, then Contractor and United shall consult in order to find a mutually agreeable timeline to prepare such Covered Aircraft in accordance with <u>Paragraph</u> <u>8</u> of <u>Exhibit</u> <u>G</u>. Prior to commencing any work and incurring any expenses in connection with this <u>Section</u> <u>2.04</u>, Contractor shall request United's written approval regarding the scope and anticipated reimbursable costs for such work and expenses (the work and expenses detailed in any such written approval from United, the "**<u>Approved Work Scope</u>**"), such approval not to be unreasonably withheld. Contractor agrees to consult with United in advance of performing work or incurring expenses with respect to additional work beyond the Approved Work Scope. Following the completion of such livery preparation, Contractor shall deliver an invoice identifying Contractor's actual, out-of-pocket costs incurred in compliance with the Approved Work Scope, and, reasonably promptly thereafter, United shall reimburse Contractor for any applicable costs incurred in compliance with this <u>Section</u> <u>2.04</u> set forth in such invoice as pass through costs pursuant to <u>Paragraph</u> <u>E</u> of <u>Schedule</u> <u>3</u>.

*Section 2.05* [\*\*\*]1.

*Section 2.06* <u>[\*\*\*]</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) 6

------

*Section 2.07 <u>Diversions</u>*. United will pay Contractor for all diversions completed within [\*\*\*] of the scheduled arrival time based on the actual Block Hours flown from the original departure city to the diversion point and from the diversion point to the original destination city. A diversion flight will also be considered completed if the passengers arrive at the scheduled arrival city within [\*\*\*] of the scheduled arrival time via ground transportation from the diversion point to the original destination city. The cost of busing to the originally scheduled airport will be borne by Contractor. Contractor will use its best efforts to assure that no bus segment exceeds [\*\*\*]. United will pay Contractor for a diverted flight that is completed via ground transportation based on the original scheduled Block Hour time for that segment. In the event a diverted flight is not completed within such [\*\*\*] time frame, no payment is due for the diverted flight segment (e.g. flight segment will be excluded from the monthly operating statistics used in calculating payments to Contractor). In addition, United will [\*\*\*] related to diverted flight segments.

*Section 2.08 <u>Ground Delay Program</u>.* Subject to the applicable provisions set forth in <u>Schedule 3</u> as to the treatment of ground delay program cancellations, Contractor will participate in United's ground delay program, which stipulates that United may request Contractor to cancel, and Contractor shall cancel, flights to free ATC slots at a hub when the FAA or United's Station Control Center has initiated a Ground Delay Program ("**<u>GDP</u>**").

*Section 2.09* Staffing. So long as Contractor has at all times complied in full with <u>Section</u> <u>2.05</u>, the remedies provided in <u>Sections 2.01(d)</u>, <u>2.01(e)</u>, and <u>2.06</u> shall be the sole and exclusive remedies available to United in respect of Staffing Incapacity. For the avoidance of doubt, the foregoing sentence is not intended to and shall not be construed to modify, waive or restrict United's rights to exercise any remedies available at law or in equity for Contractor's breach of this Agreement for reasons other than Staffing Incapacity. Upon the request of any party from time to time, the parties shall use commercially reasonable efforts to meet and confer to consider alternative approaches to <u>Article II</u> submitted in good faith by the requesting party, including as may relate to optimizing Contractor's performance of Regional Airline Services under this Agreement.

**ARTICLE III** 

**CONTRACTOR COMPENSATION** 

*Section 3.01 <u>Base and Incentive Compensation</u>*. For and in consideration of the transportation services, facilities and other services to be provided by Contractor hereunder, United shall pay Contractor the base and incentive compensation as provided in <u>Paragraphs A</u> and <u>C</u> of <u>Schedule</u> <u>3</u> hereto, subject to the terms and conditions set forth in this <u>Article</u> <u>III</u>.

*Section 3.02 <u>Contractor Expenses</u>*. Except as provided otherwise in <u>Section</u> <u>3.03</u>, Contractor shall pay in accordance with commercially reasonable practices all expenses incurred in connection with Contractor's provision of Regional Airline Services.

*Section 3.03 <u>United Expenses</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Certain Expenses</u>*. United shall incur directly those expenses relating to the Regional Airlines Services that are described in <u>Paragraph</u> <u>D</u> of <u>Schedule</u> <u>3</u> and shall be responsible for the pass through costs actually paid by Contractor, pursuant to <u>Paragraph</u> <u>E</u> of <u>Schedule</u> <u>3</u>. In addition, basic rent otherwise payable under any Covered Aircraft Lease shall be [\*\*\*] as provided in and subject to <u>Section</u> <u>10.18(ii)</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Design Changes</u>*. Contractor shall operate the Covered Aircraft in United livery and other brand standards. United will pay all incremental out-of-pocket costs incurred by Contractor arising from interior and exterior design changes to the Covered Aircraft (after their initial placement into service hereunder) and other product-related changes, including enhancements to United Quality of Service Practices, facility-related design changes and the cost of changes in uniforms and other livery; *provided, however*, that such incremental and out-of-pocket costs shall be reimbursable by United only if and to the extent that both (x) such requested changes are performed in the manner approved by United in writing in advance of being incurred, and (y) such requested changes and corresponding costs incurred are incremental and in addition to Contractor's normal aircraft and facility refurbishment program (including scheduled heavy maintenance).

*Section 3.04 <u>Audit Rights; Financial Information</u>*. Contractor shall make available for inspection by United and its outside auditors and advisors, within a reasonable period of time after United makes a written request therefor, all of Contractor's books and records (including all financial and accounting records and operations reports, and records of other subsidiaries or affiliates of Contractor, if any), but specifically limited to those records as necessary to audit: (i) any payments made or amounts or setoff pursuant to this Agreement, (ii) costs or expenses for which United is obligated to pay directly or indirectly, pursuant to the terms of this Agreement, (iii) any information delivered by Contractor to United pursuant to <u>Article II</u>, including in connection with schedule reduction requests and Staffing Incapacity, (iv) any funds received as contemplated by <u>Section</u> <u>5.04</u>, and/or (v) Contractor's provision of Regional Airline Services to United or any of Contractor's other obligations under this Agreement, including relating to the performance, regulatory and operational standards in <u>Sections 4.01</u>, <u>4.02</u>, <u>4.04</u>, <u>4.05</u>, <u>4.10</u>, <u>4.11</u>, <u>4.12</u>, and <u>10.20</u>, (all such books and records, collectively, the "**<u>CPA Records</u>**"). Only to the extent reasonably necessary and in connection with United's audit rights under this <u>Section</u> <u>3.04</u>, United and its outside auditors shall be entitled to [\*\*\*]. Upon the reasonable written request of United or its outside auditors, Contractor will cooperate with United and its outside auditors to permit United and its outside auditors reasonable access to Contractor's outside auditors for purposes of reviewing such records. In addition, Contractor shall deliver or cause to be delivered to United (I) as soon as available, but in any event within [\*\*\*] after the end of each fiscal year, a copy of the consolidated balance sheet of Contractor, as at the end of such year, and the related consolidated statements of income and retained earnings and of cash flows of Contractor for such year, setting forth in each case in comparative form the figures for the previous year, reported on by an independent certified public accountants in good standing and unanimously approved by the members of Contractor's board of directors; and (II) as soon as available, but in any event not later than [\*\*\*] after the end of each of the first three quarterly periods of each fiscal year, the unaudited consolidated balance sheet of Contractor, as at the end of such quarter, and the related unaudited consolidated statements of income and retained earnings and of cash flows of Contractor for such quarter and the portion of the fiscal year through the end of such quarter, setting forth in each case in comparative form the figures for the previous year, certified by a responsible officer of Contractor, as being fairly stated in all material respects (subject to normal year-end audit adjustments); *provided*, that Contractor shall not be required to deliver financial statements pursuant to this sentence at any time that Contractor or Parent is a reporting issuer pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, and such financial statements are timely filed with the Securities and Exchange Commission pursuant thereto. All financial statements delivered hereunder shall be complete and correct in all material respects and shall be prepared in reasonable detail and in accordance with GAAP applied consistently throughout the periods reflected therein and with prior periods (except as approved by such accountants or officer, as the case may be, and disclosed therein). By delivering written notice to United from time to time, Contractor shall have the right to make reasonable requests to verify any calculations made solely by United under this Agreement*.*

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*Section 3.05 <u>Billing and Payment; Reconciliation</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Billing and Payment</u>*. On the next Business Day after Contractor receives the Final Monthly Schedule from United pursuant to <u>Section</u> <u>2.01(c)</u>, Contractor shall present a reasonably detailed written invoice for amounts due under this Agreement in respect of the Base Compensation for the Scheduled Flights during the month to which such Final Monthly Schedule pertains. United shall pay Contractor the amount due under such invoice (the "**<u>Invoiced Amount</u>**"), subject to United's right to dispute any calculations set forth on such invoice that do not comply with the terms of this Agreement, and net of amounts owed by Contractor to United, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) [\*\*\*] of the Invoiced Amount shall be payable by United to Contractor, by electronic transfer of funds to a bank account designated by Contractor, available on or before the first Wednesday of the month (or if such day is not a Business Day, the next Business Day) to which such invoice relates, as adjusted by <u>Section</u> <u>3.05(b)</u> below;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) [\*\*\*] of the Invoiced Amount shall be payable by United to Contractor, by electronic transfer of funds to a bank account designated by Contractor, available on or before the second Wednesday of the month (or if such day is not a Business Day, the next Business Day) to which the invoice relates, as adjusted by <u>Section</u> <u>3.05(b)</u> below;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) [\*\*\*] of the Invoiced Amount shall be payable by United to Contractor, by electronic transfer of funds to a bank account designated by Contractor, available on or before the third Wednesday of the month (or if such day is not a Business Day, the next Business Day) to which the invoice relates, as adjusted by <u>Section</u> <u>3.05(b)</u> below; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) [\*\*\*] of the Invoiced Amount shall be payable by United to Contractor, by electronic transfer of funds to a bank account designated by Contractor, available on or before the fourth Wednesday of the month (or if such day is not a Business Day, the next Business Day) to which the invoice relates, as adjusted by <u>Section</u> <u>3.05(b)</u> below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Monthly True-Up</u>*. Not later than [\*\*\*] following the end of each month, Contractor and United shall determine the net amount due to Contractor for such month (the "**<u>Net Monthly Payment Amount</u>**") after taking into account all of the payments to which Contractor is entitled, as well as all of the credits to which United is entitled, in each case pursuant to the terms and conditions set forth in <u>Schedule</u> <u>3</u>. As applicable, (i) if the Net Monthly Payment Amount is positive, then United shall pay such amount to Contractor on or before the [\*\*\*] following the end of the month applicable to the Net Monthly

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Payment Amount (or if such day is not a Business Day, the next Business Day), or (ii) if the Net Monthly Payment Amount is negative, then the absolute value of such amount shall, at United's election exercisable in its sole discretion by delivery of written notice to Contractor, either (x) be paid by Contractor to United or (y) set off by United against any other amounts owed by United to Contractor under this Agreement or any Ancillary Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>Discrepancy Escalation.</u>* In the event that any reconciliation under this <u>Section</u> <u>3.05</u> is disputed and remains unresolved as between Contractor and United beyond the date that is [\*\*\*] after the due date of any such Net Monthly Payment Amount, such dispute shall be escalated to a meeting between the Director of Finance of Contractor and a senior leader within United's United Express group. Should such dispute continue beyond the date that is [\*\*\*] after the due date of such Net Monthly Payment Amount, such dispute shall be escalated to a meeting of [\*\*\*]. Should such dispute continue to remain unresolved beyond the date that is [\*\*\*] after the due date of such Net Monthly Payment Amount, such dispute shall be escalated to a meeting of [\*\*\*].

*Section 3.06* [\*\*\*]

*Section 3.07 <u>Reports</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Monthly Reports</u>*. Contractor will furnish to United within [\*\*\*] after the end of each month a detailed report of its operating performance for such month, which report will include information on Contractor's performance during the preceding month for each of the items designated by United from time to time as required to be included in such monthly report, including regarding operating performance standards, aircraft appearance, boarding information, engine fleet configuration (on an engine by engine and aircraft by aircraft basis for all United Engines), forecasted changes in engine placement, and actual changes in engine placement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Annual Engine Reports</u>*. Contractor will provide, no later than [\*\*\*] following the end of each calendar year, a written report providing reasonable detail and supporting documentation regarding all changes in United Engines for such year (including ESN, Installation date, removal date, ETT, ETC, TSL, CSI at time of removal, Planned or unplanned, scheduled or unscheduled, and removal reason), including, for each United Engine, the number of hours since the most recent performance restoration for such United Engine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>Accidents and Incidents</u>*. Promptly following the preparation thereof, Contractor will promptly furnish United with a copy of every final report that Contractor prepares, whether or not such report is filed with the FAA, NTSB or any other governmental agency, relating to any accident or incident involving an aircraft used by Contractor pursuant to this Agreement, when such accident or incident is claimed to have resulted in the death or injury to any person or the loss of, major damage to or destruction of any property.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *<u>Denied Boardings</u>*. Upon United's request from time to time, Contractor will provide promptly, but not later than [\*\*\*] following any such request, station-specific best estimates regarding weight restrictions and aircraft limitations which could reasonably be expected to routinely result in denied boardings. If Contractor fails to respond to any such request, or if Contractor's responses are materially inaccurate or inadequate, then United shall have the right, exercisable in its sole discretion, to require Contractor to reimburse United for denied boarding expenses attributable to weight restrictions relating to any such failure to respond, inaccuracy, or inadequacy.

*Section 3.08* [\*\*\*]

**ARTICLE IV** 

**CONTRACTOR OPERATIONS AND AGREEMENTS WITH UNITED** 

*Section 4.01 <u>Governmental Regulations; Maintenance</u>*. Contractor has all certifications, permits, licenses, certificates, exemptions, approvals, plans, and insurance required by Governmental Authorities and airport authorities, including FAA, DOT and TSA, to enable Contractor to perform the Contractor Services. All flight operations, dispatch operations, maintenance and all other operations and services undertaken by Contractor pursuant to this Agreement shall be conducted, operated and provided by Contractor in compliance with all governmental laws, regulations and requirements of applicable Governmental Authorities and airport authorities (foreign and domestic), including those relating to airport security, the use and transportation of Hazardous Materials and dangerous goods, crew qualifications, crew training and crew hours, the carriage of persons with disabilities, and passenger/bag weight programs, and without any violation of U.S. or foreign laws, regulations or governmental prohibitions. Contractor shall exercise overall operational control of, and remain responsible for, the airworthiness, safe operation, and maintenance of, all Covered Aircraft. Without limiting Contractor's obligations under any Covered Aircraft Lease, all Covered Aircraft shall be operated and maintained by Contractor in compliance with all laws, regulations and governmental requirements or applicable Governmental Authorities and airport authorities (foreign and domestic), Contractor's own operations manuals and maintenance manuals and procedures, all applicable provisions of any aircraft lease, mortgage or sublease, and all applicable equipment manufacturers' manuals, instructions, airworthiness directives and service bulletins. Contractor shall provide United with prompt notice of any Covered Aircraft that are unavailable to provide Scheduled Flights for purposes of unscheduled maintenance. Upon any issuance by the FAA of an airworthiness directive or change in regulation requiring Contractor to make capital improvements to any Covered Aircraft, or upon Contractor's receipt of written instructions from United to make modifications to any Covered Aircraft, or in the case of any capital improvements or modifications or other efforts pursuant to the two sentences immediately following this sentence, (i) prior to making any investment or modification, Contractor will consult with United and agree upon the reasonable costs of such capital improvements or modifications, (ii) Contractor shall pay for such capital improvements or modifications, and (iii) upon completion of such capital improvements or modifications with respect to the Covered Aircraft, United shall reimburse Contractor for the agreed-upon costs of such capital improvements or modifications as a pass through cost pursuant to <u>Paragraph</u> <u>E</u> of <u>Schedule</u> <u>3</u>. In connection with any capital improvements to any Covered Aircraft, Contractor shall [\*\*\*]. In connection with any grounding of any of the Covered Aircraft, Contractor shall [\*\*\*].

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*Section 4.02 <u>Quality of Service</u>*. Without limiting Contractor's operational control of all aspects of its flight operations, United procedures, performance standards and means of measurement thereof concerning the provision of air passenger and air cargo services shall be applicable to all Regional Airline Services provided by Contractor; *provided* that all such procedures and means of measurement shall be no more stringent than those used by United with respect to the performance of all other operators of regional aircraft for United. Contractor shall achieve at least the comparable quality of airline service and standards of care as provided by United or generally required by United of the Other United Express Carriers, subject to limitations imposed by the type of aircraft used by Contractor and its route network. Contractor shall comply with all airline customer service commitments and policies of United as of the date hereof, including "Our United Customer Commitment", and employee conduct, appearance and training policies in place as of the date hereof, and shall handle customer-related services in a professional, businesslike and courteous manner. In connection therewith, Contractor shall maintain aircraft cleaning cycles and policies, shall comply with the provisions set forth in <u>Exhibit</u> <u>J</u>, and without limiting <u>Article II</u>, shall maintain adequate staffing levels, to ensure at least a comparable level of customer service and operational efficiency that United achieves or generally requires of the Other United Express Carriers, including in respect of customer complaint response and boarding timing, and handling of irregular operations. In addition, at the request of United, Contractor shall comply with all such airline customer service commitments, policies and standards of care of United as adopted, amended or supplemented after the date hereof. As necessary, United will provide training to Contractor's designated instructors in the requirements of United's customer service policies and Procedures and customer problem resolution programs; *provided* that United will [\*\*\*], and United agrees that [\*\*\*]. Contractor shall ensure that all Covered Aircraft are equipped with an aircraft communications system addressing and reporting system that provides operational information in a form acceptable to United. Additionally, in the event that United requires Contractor to deliver any incremental training to its employees, United will reimburse Contractor for any incremental direct costs incurred as a result of providing such training provided that United has approved such costs in writing prior to such costs being incurred. Contractor shall provide United with timely communication regarding the status of all Scheduled Flights, and shall perform closeout procedures at service levels at least as high as those of United at comparably-sized airports. Contractor shall ensure that all Scheduled Flights are capable of operating in Category 2 Conditions. Contractor will use United's standard procedures for processing and adjudicating all claims for which Contractor is responsible in an effort to avoid such matters becoming the subject of claims, litigation or an investigation by a governmental agency or authority. At either party's request, Contractor and United will meet to discuss and review Contractor's customer service and handling procedures and policies and its employees' conduct, appearance and training standards and policies. United shall give Contractor not less than [\*\*\*] prior written notice which notice identifies specifically the quality of service failures asserted by United and provides Contractor with an opportunity to cure of any non-safety related breach of this <u>Section</u> <u>4.02</u> prior to exercising any remedy regarding such breach. Contractor acknowledges that United may implement programs to evaluate the delivery of customer service and adherence to customer service standards established by United and Contractor hereby agrees to [\*\*\*]. Contractor also agrees to participate in the United Cargo Program.

*Section 4.03 <u>Incidents or Accidents</u>*. Contractor shall promptly notify United of all irregularities involving a Scheduled Flight or Covered Aircraft operated by Contractor, including aircraft accidents and incidents, which result in any damage to Persons and/or property or may otherwise result in a complaint or claim by passengers or an investigation by a governmental agency or authority. Contractor shall furnish to United as much detail as practicable concerning such irregularities and shall cooperate with United at Contractor's own expense in any appropriate investigation.

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*Section 4.04 <u>Emergency Response</u>*. Contractor shall adopt United's Emergency Response Plan for aircraft accidents or incidents involving a Covered Aircraft or Scheduled Flight. In the event of an accident or incident involving a Covered Aircraft or Scheduled Flight, United and Contractor agree to work together in a combined and coordinated emergency response, as outlined in the parties' Emergency Response Agreement (United Contract No. 165981) (and the parties shall abide by the applicable terms and conditions set forth therein *mutatis mutandis* as if the reference therein to the "United Express Agreement" were instead a reference to this Agreement).

*Section 4.05 <u>Safety Matters</u>*. Contractor hereby represents, warrants and covenants that all air transportation services performed by it pursuant to this Agreement or otherwise will be conducted in full compliance with all applicable statutes, orders, rules and regulations, whether now in effect or hereafter promulgated, of all governmental agencies having jurisdiction over Contractor's operations, including, but not limited to, the Federal Aviation Administration ("**<u>FAA</u>**") and the Department of Transportation ("**<u>DOT</u>**"). Contractor's compliance with such governmental statutes, orders, rules and regulations will be the sole and exclusive obligation of Contractor and United will have no obligation, responsibility or liability, whether direct or indirect, with respect to such matters except as otherwise expressly provided herein. Additionally, Contractor will comply during the term of this Agreement with the United/United Express Safety Standards, as described on <u>Exhibit O</u>. Contractor represents and warrants that it has successfully undergone an International Air Transport Authority ("**<u>IATA</u>**") Operational Safety Audit ("**<u>IOSA</u>**"). Contractor hereby covenants (i) to maintain its membership in the IOSA registry and (ii) to comply and maintain compliance with the requirements of IOSA audits within the timeframe required by IATA. Contractor shall bring any failure to maintain compliance immediately to United's attention along with corrective actions taken or a corrective action plan. Although the IOSA audit is to be completed biennially, United in its sole discretion may require, and Contractor shall comply with, additional safety review audits, the costs of which will be reimbursed by United as pass through costs pursuant to <u>Paragraph</u> <u>E</u> of <u>Schedule</u> <u>3</u>. Nothing in <u>Exhibit</u> <u>O</u>, this <u>Section</u> <u>4.05</u>, or otherwise in this Agreement is intended or shall be interpreted to make United responsible for such safety matters.

*Section 4.06 <u>Codeshare Terms</u>*. Contractor agrees to operate all Scheduled Flights using the United flight code and flight numbers assigned by United, or such other flight codes and flight numbers as may be assigned by United (to accommodate, for example, a United alliance partner), and otherwise under the codeshare terms set forth in <u>Exhibit</u> <u>D</u>, and to cooperate reasonably with United to implement any modifications to the foregoing from time to time.

*Section 4.07 <u>Slots and Route Authorities</u>*. Contractor is required to participate in SLAM and United will be responsible for slot management of Contractor's United Express flights. Only with respect to any takeoff or landing slots transferred to Contractor by United, at the request of United made during the Term or upon termination of this Agreement, Contractor shall use its commercially reasonable efforts to transfer to United or its designee, to the extent permitted by law, any airport takeoff or landing slots, route authorities or other similar regulatory authorizations that

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were previously transferred to Contractor by United at no cost to Contractor and which were used in connection with Scheduled Flights (it being acknowledged that there is no obligation of Contractor to purchase any slot, authority, or authorization for Scheduled Flights). Contractor's obligations pursuant to the immediately preceding sentence shall survive the termination of this Agreement for so long as any transfer requested pursuant to this <u>Section</u> <u>4.07</u> shall not have been completed. For the avoidance of doubt, the provisions of this <u>Section</u> <u>4.07</u> shall not apply to any takeoff or landing slots, route authorities or other similar regulatory authorizations owned by Contractor (and which were not previously transferred to Contractor by United), regardless of whether such takeoff or landing slots, route authorities or other similar regulatory authorizations are being used in connection with the provision of Regional Airline Services by Contractor under this Agreement, and such Contractor-owned takeoff and landing slots, route authorities or other similar regulatory authorizations shall remain the sole property of Contractor.

*Section 4.08 <u>Use of United Marks</u>*. United hereby grants to Contractor the non- exclusive and non-transferable rights to use the United Marks and other Identification as provided in, and Contractor shall use the United Marks and other Identification in accordance with the terms and conditions of, <u>Exhibit</u> <u>G.</u> It is acknowledged and agreed that United may from time to time substitute other marks for the United Marks and in such instance the provisions of this <u>Section</u> <u>4.08</u> shall apply with full effect to any such substituted marks. As an example of the foregoing, it is agreed that United has advised Contractor that the livery of the Covered Aircraft shall initially be in "United Express" livery, as contemplated by <u>Exhibit</u> <u>G.</u>

*Section 4.09 <u>Use of Contractor Marks</u>*. Contractor hereby grants to United the non-exclusive and non-transferable rights to use the Contractor Marks as provided in, and United shall use the Contractor Marks in accordance with the terms and conditions of, <u>Exhibit</u> <u>H</u>.

*Section 4.10 <u>Catering Standards</u>*. United and Contractor shall comply with the catering requirements set forth on <u>Exhibit</u> <u>I</u> hereto.

*Section 4.11 <u>Fuel Efficiency Program</u>*. Contractor shall use commercially reasonable efforts to promptly adopt and adhere to a fuel efficiency program as described on <u>Exhibit</u> <u>L</u> hereto and United agrees to reimburse Contractor for any United Fuel Efficiency Expenses. Contractor shall implement any incentive program that United requests to be implemented where United agrees in writing to [\*\*\*].

*Section 4.12 <u>Pass-Through Maintenance Costs</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding anything to the contrary in this Agreement, United's sole obligation to reimburse Contractor (or to incur any expense whatsoever) with respect to maintenance of any aircraft and engines used in the performance of Contractor Services shall be as set forth in this <u>Section</u> <u>4.12</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) United shall reimburse Contractor or pay third-party service providers directly, [\*\*\*]

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*Section 4.13 <u>Unauthorized Payments</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In connection with any performance under this Agreement, neither Contractor, nor any officer, employee, or agent of Contractor, will make any payment, or offer, promise, give or authorize any payment, of any money or other article of value, to any official, employee, or representative of United or any government official or representative, or to any Person or entity doing business with United, in order either to obtain or retain business under this Agreement, or to direct United's business under this Agreement to a third party, or to influence any act or decision of any employee or representative of United as pertaining to this Agreement or any government official or representative to perform or to fail to perform his or her duties, in each case, under this Agreement, or to enlist the aid of any third party to do any of the foregoing. The parties agree that incidental expenses incurred for business meetings, meals and other minor business-related expenses shall not, in each case, violate this paragraph ("**<u>Permitted Actions</u>**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In connection with any performance under this Agreement, neither Contractor, nor any officer, employee, or agent of Contractor, will solicit or receive any amount of cash or negotiable paper, or any item, service or favor of value (a "gift") from United. Contractor will refuse to accept all such gifts and, if received, will return such gifts to the donor. In all such cases Contractor will notify United promptly of such gift or offer thereof. If United deems it necessary, Contractor will turn over such gifts to United for further handling. The parties agree that Permitted Actions shall not violate this paragraph.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In connection with any performance under this Agreement, Contractor will at all times comply fully with all of the terms and provisions of the Foreign Corrupt Practices Act (15 U.S.C. §§ 78dd-1, et seq.) and any related or successor statute, regulation, or governmental directive regarding payments to foreign nationals or other Persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Contractor hereby certifies and represents that no inducements of monetary or other value were offered or given to any United officer, employee or agent, except as is stated in writing to the United official designated to sign this Agreement or except as otherwise stated in this Agreement, prior to execution of this Agreement. Contractor further certifies and represents no official, employee or agent of Contractor shall receive or has received any inducement of monetary or other value from any vendor or contractor of United or has a significant ownership or other interest in a vendor or contractor of United which is or could be perceived by a reasonable person as a conflict of interest, except as is stated in writing to the United official designated to sign this Agreement, prior to execution. The parties agree that Permitted Actions shall not violate this paragraph.

*Section 4.14 <u>Environmenta</u>l*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Contractor shall conduct its operations in a prudent manner, taking reasonable preventative measures to avoid liabilities under any Environmental Laws or harm to human health or the environment, including measures to prevent unpermitted releases of Hazardous Materials to the environment, adverse environmental impacts to on- site or off-site properties and the creation of any public nuisance. If, in the course of conducting services under this Agreement, Contractor encounters adverse environmental conditions that could reasonably be expected to give rise to liability for United or Contractor under any Environmental Laws or which otherwise could reasonably be expected to result in harm to human health or the environment, Contractor shall promptly notify United of such conditions.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Contractor shall, at its own expense, conduct its operations in compliance with applicable Environmental Laws, including obtaining any needed permits or authorizations for Contractor's operations. If United provides any information, instruction, or materials to Contractor relating to its obligations under any Environmental Laws, Contractor agrees that this shall not in any way relieve Contractor of its obligation to comply with Environmental Laws; *provided* that United shall use commercially reasonable efforts to avoid giving any such information, instruction, or materials to Contractor that conflict with Environmental Law and provided further that Contractor shall not be deemed to be in breach of this Agreement if Contractor does not follow such information, instruction or material if in Contractor's reasonable judgment such information, instruction or material violates Environmental Laws. Contractor further agrees that it shall otherwise preserve the proprietary nature of any such information that is identified by United as proprietary and confidential and shall use its commercially reasonable efforts to ensure that the information is not disclosed to any third parties (other than disclosures required by applicable law, rule or regulation) without first obtaining the written consent of United.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Contractor shall use its commercially reasonable efforts to perform its services under this Agreement so as to minimize the unnecessary generation of waste materials, including consideration of source reduction and re-use or recycling options, and coordination with United on a cabin service recycling program. If requested by United, Contractor shall replace specific products used in its operations with less toxic products, as long as such requested changes do not unreasonably interfere with Contractor's operations, burden Contractor with additional cost, and there is a reasonable replacement available at a similar cost, or if the product is not at a similar cost, provide United the option to agree to pay the difference. If requested by United, Contractor shall take reasonable efforts to provide quantitative data on materials recycled and waste disposed to facilitate coordination and enhancement of cabin service recycling where feasible. Contractor shall ensure that any waste materials generated in connection with the services performed by Contractor under this Agreement are managed in accordance with all applicable Environmental Laws, with Contractor assuming responsibility as the legal generator of such wastes; *provided*, *however*, this provision does not apply should United or another vendor of United be the entity who has, in fact, independently generated the wastes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) For any leased areas or other equipment that are jointly used or operated by Contractor and United (and/or other United contractors), Contractor and United shall use their respective commercially reasonable efforts to coordinate its activities with United and/or United contractors and otherwise perform such activities to ensure compliance with applicable Environmental Laws.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Except for de minimis amounts of Hazardous Materials which are immediately and fully remediated to pre-existing conditions, Contractor shall promptly notify United of any spills or leaks of Hazardous Materials arising out of Contractor's provision of services under this Agreement, and, if requested, shall provide copies to United of any written reports provided by Contractor or on Contractor's behalf to any governmental agencies and airport authorities under any Environmental Laws regarding same. Contractor shall promptly undertake all reasonable commercial actions to remediate any such spills or leaks to the extent Contractor is required to do so by applicable Environmental Laws, by the relevant airport authority, or in order to comply with a lease obligation. In the event that Contractor fails to fulfill its remediation obligations under this paragraph and United may otherwise be prejudiced or adversely affected as a result of such failure (such as involving United leased property), United may undertake such actions as are reasonable at the cost and expense of Contractor. Such costs and expenses shall be promptly paid upon Contractor's receipt of a written request for reimbursement for them by United. For the avoidance of doubt, nothing in this <u>Section</u> <u>4.14(e)</u> will limit Contractor's rights or remedies under <u>Section</u> <u>7.02</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Contractor shall promptly provide United with written copies of any notices of violation issued or other claims from a third party asserted pursuant to Environmental Laws or associated with a potential release of Hazardous Materials and related to or associated with the provision of services by Contractor under this Agreement. Contractor shall promptly undertake all actions necessary to resolve such matters, including the payment of fines and penalties, and promptly addressing any noncompliance identified; *provided*, *however*, that Contractor may contest any notice of violation or other alleged violation and defend any claim that it believes is untrue, improper or invalid. In the event that Contractor fails to fulfill its obligations under this paragraph and United may otherwise be prejudiced or adversely affected, United may undertake such actions as are reasonable or legally required at the cost and expense of Contractor. Such costs and expenses shall be promptly paid upon Contractor's receipt of a written request for reimbursement for them by United. For the avoidance of doubt, nothing in this <u>Section</u> <u>4.14(f)</u> will limit Contractor's rights or remedies under <u>Section</u> <u>7.02</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) If requested by United, Contractor shall conduct a review and provide information to United regarding Contractor's compliance with the requirements of this <u>Section</u> <u>4.14</u>. Such review will not be required more frequently than once each year unless there are circumstances that warrant an additional review as reasonably determined by United after consultation with Contractor. This review may include the completion of an environmental compliance audit of Contractor's activities or an environmental site assessment, each subject to a work plan approved by United, such approval not to be unreasonably withheld. Contractor shall provide United with a summary of the results of this audit, provide United an opportunity to review any report generated in connection with such an audit, and will promptly use its commercially reasonable efforts to address any noncompliance or liability identified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) In the event that Contractor Services include providing bulk (non-bottled) potable water for crew or passenger consumption, Contractor shall ensure compliance with the Aircraft Drinking Water Regulation, FDA requirements, and other similar applicable laws (collectively, the "**<u>Drinking Water Requirements</u>**"), including using its commercially reasonable efforts to ensure that all water handling equipment is properly and regularly disinfected and kept in sanitary condition. If Contractor relies upon another contractor to load water onto its aircraft or to maintain water handling equipment, it shall

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inquire with such contractors to ensure they meet these Drinking Water Requirements as well. Contractor shall notify United as soon as practicable if it becomes aware of practices or conditions that may reasonably be expected to negatively impact potable water quality, regardless of the provider or the source of such potable water (including whether such source is an airport, ground handler or aircraft water system). Contractor shall maintain records relating to its compliance with Environmental Laws under this Agreement for the longer of three years or such period of time as is required by Environmental Laws. Contractor shall, at the request of United and with reasonable advance notice, provide United with reasonable access to Contractor's operations, documents, and employees for the sole purpose of allowing United to assess Contractor's compliance with its obligations with this <u>Section</u> <u>4.14</u>, including responding to reasonable information requests. Upon the termination of operations at a space used to support the provision of Contractor Services under this Agreement, Contractor shall use its commercially reasonable efforts to ensure the removal and proper management of any and all Hazardous Materials associated with Contractor's operations (including its subcontractors) and will comply with any other applicable Environmental Laws applicable to the provision of Contractor Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Contractor has reviewed United's Environmental Commitment Statement (found at https://www.united.com/ual/en/us/fly/company/global-citizenship/environment.html) and agrees to use commercially reasonable efforts to cooperate with United in meeting these commitments in effect as of the date hereof and in responding to reasonable information requests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Contractor shall be responsible for and will indemnify, defend, and hold harmless United, including its officers, agents, servants and employees, from and against any and all claims, liabilities, damages, costs, losses, penalties, and judgments, including costs and expenses incident thereto under Environmental Laws or due to the release of a Hazardous Material, which may be suffered or incurred by, accrue against, be charged to, or recoverable from United or its officers, agents, servants and employees arising out of an act or omission of Contractor (or its subcontractor) related to Contractor's provision of services under this Agreement, except to the extent the foregoing are caused by (A) the acts or omissions of a fuel service vendor where such fuel service is contracted by United to perform fueling services for Covered Aircraft used in United Express Service under this Agreement and (B) the reckless or willful misconduct, or gross negligence, of United, its officers, or employees. Notwithstanding anything to the contrary set forth in this Agreement, such damages may include the payment of consequential, special or exemplary damages for claims under Environmental Laws or due to the release of Hazardous Materials to the extent an applicable lease agreement, sublease or other similar agreement requires the payment of such damages. Any indemnification claims arising under this <u>Section</u> <u>4.14(j)</u> shall be administered pursuant to the procedures set forth in <u>Section</u> <u>7.03</u> hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) All notices to be provided by Contractor to United under this <u>Section</u> <u>4.14</u> shall be provided as indicated in <u>Section</u> <u>10.02</u> of this Agreement, with a copy to Managing Director–Environmental Affairs, United Airlines, Inc., 233 South Wacker Drive-WHQSE, Chicago, IL 60606.

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*Section 4.15 <u>Lease, Use and Modification of Airport Facilities</u>*. United and Contractor agree that United shall at its direction provide all Terminal Facilities at all Applicable Airports for use by Contractor for the provision of Regional Airline Services. United agrees to take commercially reasonable efforts to place crew rooms, maintenance personnel and parts in the Terminal Facilities, to the extent available, at which Contractor performs Regional Airline Services, and United and Contractor acknowledge that United is currently providing such Terminal Facilities to Contractor.

Section 4.16 *<u>Fuel Procurement and Fuel Services</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) United and Contractor agree that United shall, at its direction, provide all Fuel Services for use by Contractor for the provision of Regional Airline Services. United and Contractor acknowledge that United is currently providing such Fuel Services to Contractor. The parties will cooperate in identifying (i) fuel savings opportunities, (ii) providers of aircraft fuel and (iii) providers of Fuel Services. Prior to Contractor entering into agreements with any such providers as shall be directed by United to provide fuel services for more than [\*\*\*] (or as ratably adjusted in the event that the Covered Aircraft fleet is amended following the Effective Date) of fuel consumed for the operation of the Covered Aircraft, United and Contractor shall discuss in good faith the allocation of procurement of such fuel services. Contractor shall provide any data or analysis of its fuel procurement and Fuel Services as reasonably requested by United.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The costs of such procurement, or such arranging for procurement of aircraft fuel, as applicable (in each case including the cost of procuring the aircraft fuel) shall be [\*\*\*]. If United so directs, then Contractor shall procure, or arrange for the procurement of aircraft fuel, and such costs shall be [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) United and Contractor acknowledge and agree that any fuel provided to Contractor pursuant to an agreement between United and a fuel supplier is provided "as is" and without warranty of any kind, including the warranties of merchantability and fitness for a particular purpose, by, through or under United, and that no warranties by, through or under United shall be implied by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) United and Contractor acknowledge and agree that any aircraft fuel procured, or arranged for procurement, for on behalf of Contractor by United shall not be deemed to have been procured, purchased or otherwise acquired for on behalf of Contractor, and Contractor shall in no event have any claim to or interest in, any fuel procured by United or its agents, unless and until such fuel is delivered into a Covered Aircraft, except as otherwise may be provided in a Fuel Services agreement, if any, between United and Contractor.

*Section 4.17 <u>Ground Handling</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) United shall provide or cause to be provided Ground Handling Services for all Scheduled Flights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All expenses for Ground Handling Services shall be incurred directly by United, pursuant to <u>Paragraph</u> <u>D(6)</u> of <u>Schedule</u> <u>3</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Contractor shall cooperate in all reasonable respects with any ground handling provider(s) as shall be directed by United. In addition, at United's direction, mainline ground support equipment ("**<u>GSE</u>**") and GSE processes shall be used in connection with Contractor's performance of Regional Airlines Services; *provided* that such GSE and GSE processes shall be modified to be compatible with the Covered Aircraft if necessary, such determination to be made by United.

*Section 4.18 <u>Flight Crews</u>*. All of the Regional Airline Services to be performed by Contractor will be operated with crews consisting of a captain or pilot, and a first officer or co-pilot. Contractor will ensure that all such crew members, as well as all flight attendants, will at all times meet all currently applicable governmental requirements and remain fully licensed and qualified for the services to be performed under this Agreement. In addition, Contractor will ensure that each of Contractor's captains will hold a current Airline Transport Pilot Certificate and that an adequate number of flight crews will be qualified to fly between all city pairs that Contractor is required to serve pursuant to this Agreement. Contractor will also ensure that all flight crew members will meet all requirements imposed by the insurance policies set forth in <u>Article VI</u>.

*Section 4.19 <u>Intentionally omitted</u>*.

*Section 4.20 <u>Uniforms; ALPA Letter Observance</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Contractor, at its own expense, shall pay for and require all of its flight crews, defined as all pilots, first officers, and flight attendants who provide Contractor's Regional Airline Services, to wear uniforms which are in the United Express colors and styles, as approved by United, such approval not to be unreasonably withheld or delayed, while performing Contractor Services. Contractor agrees that all flight crews employed by Contractor shall wear the above-described uniforms while performing Regional Airline Services. Any other employees of Contractor who are visible to the public will wear uniforms reviewed and approved by United, which approval shall not be unreasonably withheld. If United develops or designs new uniforms for United Express operations, then United will reimburse the reasonably documented incremental costs actually incurred by Contractor that are solely attributable to the implementation of such new uniforms; provided that such reimbursement obligation will only be applicable to costs approved in advance in writing by United.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) [\*\*\*]

*Section 4.21 <u>Operations Specifications Certificate</u>*. Contractor shall add each Covered Aircraft set forth on <u>Schedule</u> <u>1</u> as of the Effective Date (to the extent not already on Contractor's operations specifications certificate), or added to <u>Schedule</u> <u>1</u> from time to time thereafter (as shall be mutually agreed by Contractor and United), to Contractor's operations specifications certificate as soon as reasonably practicable. Contractor shall maintain operating authority with respect to North America (including Mexico and Canada) on its operations specifications at all times during the Term.

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*Section 4.22 <u>Information Technology</u>*. At all times during the Term, Contractor shall use commercially reasonable efforts to maintain its information technology infrastructure [\*\*\*]. Contractor shall comply with the United's information technology incident, problem and change management processes in effect as of the Effective Date, along with the Cyber Data Risk Requirements attached hereto as <u>Exhibit T</u>, [\*\*\*].

*Section 4.23* [\*\*\*]

**ARTICLE V** 

**CERTAIN RIGHTS OF UNITED** 

*Section 5.01 <u>Use of Covered Aircraft</u>*. Contractor agrees that, except as otherwise directed by United in accordance with the terms and conditions of this Agreement, the Covered Aircraft (other than Covered Aircraft that are Spare Aircraft which may be used as provided in <u>Section</u> <u>2.01(i)</u>), may be used only to provide Regional Airline Services. Without the written consent of United, the Covered Aircraft may not be used by Contractor for any other purpose, including flying for any other airline or on Contractor's own behalf.

*Section 5.02 <u>No Operation Outside Agreement, Charters</u>*. Without prior written consent of United, Contractor will not use any of the services (excluding maintenance service) afforded to Contractor by United to provide air transportation or related services to other carriers or affiliates of Contractor. Under no circumstances will Contractor be permitted to operate aircraft bearing the United Marks in city pairs other than those marks specified by United pursuant to <u>Section</u> <u>4.08</u>, without the prior written consent of United.

*Section 5.03 <u>Intentionally omitted</u>*.

*Section 5.04* [\*\*\*]

*Section 5.05* [\*\*\*]

**ARTICLE VI** 

**INSURANCE AND TAXES** 

*Section 6.01 <u>Minimum Insurance Types</u>*. During the Term, in addition to any insurance required to be maintained by Contractor pursuant to the terms of any aircraft lease (including each Covered Aircraft Lease), or by any applicable governmental airport authority, Contractor shall maintain, or cause to be maintained, in full force and effect policies of insurance with insurers of recognized reputation and responsibility, in each case to the extent available on a commercially reasonable basis, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Comprehensive aircraft hull and liability insurance, including aircraft third party, passenger liability (including passengers' baggage and personal effects), cargo and mail legal liability, and all-risk ground and flight physical damage, with a combined single limit of not less than the greater of (i) [\*\*\*] per occurrence and (ii) the highest single limit per occurrence of any aircraft hull and liability insurance maintained by Contractor under any other capacity purchase arrangement, and a minimum limit in respect of personal injury for non-passengers (per clause AVN 60 or its equivalent) of [\*\*\*] per occurrence and in the aggregate, and war risk hull and liability insurance as provided by the FAA program or by commercial providers of such insurance with a combined single limit no less than the greater of (i) [\*\*\*] per occurrence and (ii) the highest single limit per occurrence of any war risk hull and liability insurance maintained by Contractor under any other capacity purchase arrangement;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Workers' compensation as required by the appropriate jurisdiction and employer's liability with a limit of not less than [\*\*\*] combined single limit; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Other property and liability insurance coverages of the types and in the amounts that would be considered reasonably prudent for a business organization of Contractor's size and nature, under the insurance market conditions in effect at the time of placement, but in any event of the type and the amount that United may reasonably require to prevent or minimize a disruption in the provision of Regional Airline Services resulting from a casualty or liability incident related to Contractor's operations. All coverages described in this <u>Section</u> <u>6.01</u> shall be placed with deductibles reasonably prudent for a business organization of Contractor's size and nature, under the insurance market conditions in effect at the time of placement.

*Section 6.02 <u>Endorsements</u>*. Unless Contractor and United are participating in a combined policy placement, Contractor shall cause the policies described in <u>Section</u> <u>6.01</u> to be duly and properly endorsed by Contractor's insurance underwriters with respect to Contractor's flights and operations as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) To provide that the underwriters shall waive subrogation rights against United, its directors, officers, agents, employees and other authorized representatives, except for their gross negligence or willful misconduct (excluding aircraft hull coverage);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To provide that United, its directors, officers, agents, employees and other authorized representatives shall be endorsed as additional insured parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To provide that insurance shall be primary to and without right of contribution from any other insurance which may be available to the additional insureds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) To include a breach of warranty provision in favor of the additional insureds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) To accept and insure Contractor's hold harmless and indemnity undertakings set forth in this Agreement, but only to the extent of the coverage afforded by the policy or policies; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) To provide that such policies shall not be canceled, terminated or materially altered, changed or amended until [\*\*\*] (but [\*\*\*] or such lesser period as may be available in respect of war risk and allied perils and [\*\*\*] in the case of a cancellation for nonpayment of premium) after written notice shall have been sent to United.

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*Section 6.03 <u>Evidence of Insurance Coverage</u>*. Promptly following the Effective Date, upon renewal and at United's request at any time from time to time, Contractor shall furnish to United evidence reasonably satisfactory to United of such insurance coverage and endorsements referenced above in this <u>Article</u> <u>VI</u>, including (i) certificates certifying that such insurance and endorsements are in full force and effect, (ii) all premiums, exposures and rates for United flights (which shall reflect planned exposure at plan inception and actual exposure thereafter) and (iii) a letter from Contractor's broker with excerpts from the applicable insurance policies verifying the information set forth in <u>clause</u> <u>(ii)</u>. If Contractor fails to acquire or maintain insurance in a manner that is reasonable and prudent for an entity of Contractor's size as herein provided, then, without limiting United's remedies pursuant to this Agreement with respect to such failure, United may at its option and its own cost secure such insurance on Contractor's behalf at Contractor's expense.

*Section 6.04 <u>Failure to Maintain Insurance</u>*. In the event that Contractor fails to acquire or maintain insurance as provided herein, United may at its option secure such insurance on Contractor's behalf at Contractor's expense at levels of coverage that are standard in the airline market for operators of the same size as the Contractor's fleet of Covered Aircraft.

*Section 6.05 <u>Taxes</u>*.

For the avoidance of doubt, this <u>Section</u> <u>6.05</u> exclusively addresses tax matters arising under this Agreement and does not in any way address taxes resulting from the merger and conversion contemplated by the Merger Agreement or arising under the other Transaction Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Transaction Taxes</u>.* Contractor agrees to indemnify and hold United harmless from any and all penalties or interest arising out of any real and personal property, sales and use, occupational, gross receipts, value added, income, franchise and any other taxes, customs, duties, excise taxes, fees, charges or assessments, of any nature whatsoever imposed by any federal, state, local or foreign government or taxing authority upon Contractor or United with respect to Contractor's performance of this Agreement, or to Contractor's operations, or the equipment contained therein or services provided thereby, or the revenues derived therefrom (except for [\*\*\*]). If a claim is made against United for any penalties or interest referred to above, United will promptly notify Contractor and request payment of such claim. If requested by Contractor in writing, United will upon receipt of indemnity and evidence that Contractor has made adequate provision for the payment of such penalties or interest, reasonably satisfactory to United, contest the validity, applicability or amount of such penalties or interest, taxes and other charges at Contractor's expense. Contractor shall pay United upon demand for all expenses incurred (including all costs, expenses, losses, legal and accountants' fees, penalties and interest) in making payment, in protesting or seeking refund of such penalties or interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Payroll Taxes</u>.* Contractor acknowledges that it is responsible for and will pay to the appropriate authority, and will indemnify and hold United harmless from, any and all federal or state payroll taxes, FICA, unemployment tax, state unemployment compensation contribution, disability benefit payments, insurance costs and any other assessments or charges which relate directly or indirectly to the employment by Contractor of Contractor's employees. United acknowledges that it is responsible for and will pay to the appropriate authority, and will indemnify and hold Contractor harmless from, any and all federal or state payroll taxes, FICA, unemployment tax, state unemployment compensation contribution, disability benefit payments, insurance costs and any other assessments or charges which relate directly or indirectly to the employment by United of United's employees.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>Permits and Licenses</u>*. Contractor will comply with all federal, state and local laws, rules and regulations, will timely obtain and maintain any and all permits, certificates or licenses necessary for the full and proper conduct of its operations, and will pay all fees assessed for airport use including but not limited to landing fees, user airport fees and prorated airport facility fees. Contractor further agrees to comply with all mandatory resolutions issued by the Air Transport Association of America ("**<u>ATA</u>**") and all non-binding recommended resolutions of the ATA, which are adopted by United.

**ARTICLE VII** 

**INDEMNIFICATION** 

*Section 7.01* <u>Contractor Indemnification of United</u>. Contractor shall be liable for and hereby agrees to fully defend, release, discharge, indemnify and hold harmless United, United Airlines Holdings, Inc. ("**<u>United</u><u>'</u><u>s Parent</u>**"), their respective subsidiaries and their respective directors, officers, employees and agents from and against any and all claims, demands, damages, liabilities, suits, judgments, actions, causes of action, losses, fines, penalties, costs and expenses of any kind, character or nature whatsoever, including reasonable attorneys' fees, costs and expenses in connection therewith and expenses of investigation and litigation thereof, which may be suffered by, accrued against, charged to, or recoverable from United, United's Parent, their respective subsidiaries or their respective directors, officers, employees or agents, including any such losses, costs and expenses involving (i) death or injury (including claims of emotional distress and other non-physical injury by passengers) to any Person including any of Contractor's, United's, United's Parent's or their respective subsidiaries' directors, officers, employees or agents, (ii) loss of, damage to, or destruction of property (including real, tangible and intangible property, and specifically including regulatory property such as route authorities, slots and other landing rights), including any loss of use of such property, and (iii) damages due to delays in any manner, in each case arising out of, connected with, or attributable to (x) any act or omission by Contractor or any of its directors, officers, employees or agents relating to the provision of Regional Airline Services, (y) the performance, improper performance, or non-performance of any and all obligations to be undertaken by Contractor or any of its directors, officers, employees or agents pursuant to this Agreement, or (z) the operation, non-operation, or improper operation of the Covered Aircraft or Contractor's equipment or facilities at any location, in each case [\*\*\*]. Contractor will use commercially reasonable efforts to cause and assure that Contractor will at all times be and remain in custody and control of all aircraft, equipment, and facilities of, or operated by, Contractor, and United and its directors, officers, employees and agents shall not, for any reason, be deemed to be in custody or control, or a bailee, of such aircraft, equipment or facilities.

*Section 7.02 <u>United Indemnification of Contractor</u>*. United shall be liable for and hereby agrees fully to defend, release, discharge, indemnify, and hold harmless Contractor, Parent and their respective directors, officers, employees, and agents from and against any and all claims, demands, damages, liabilities, suits, judgments, actions, causes of action, losses, fines, penalties, costs and expenses of any kind, character or nature whatsoever, including reasonable attorneys' fees, costs and expenses in connection therewith and expenses of investigation and litigation thereof, which may be suffered by, accrued against, charged to, or recoverable from Contractor,

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Parent or their respective directors, officers, employees or agents, including any such losses, costs and expenses involving (i) death or injury (including claims of emotional distress and other non-physical injury by passengers) to any Person including any of Contractor's, Parent's, United's or United's Parent's directors, officers, employees or agents (for the avoidance of doubt, excluding Contractor as such an agent), (ii) loss of, damage to, or destruction of property (including any loss of use of such property including real, tangible and intangible property, and specifically including regulatory property such as route authorities, slots and other landing rights), and (iii) damages due to delays in any manner, in each case arising out of, connected with, or attributable to, (x) the performance, improper performance, or nonperformance of any and all obligations to be undertaken by United or any of its directors, officers, employees or agents (for the avoidance of doubt, excluding Contractor as such an agent) pursuant to this Agreement, (y) the operation, non- operation or improper operation of United's aircraft, equipment or facilities (excluding, for the avoidance of doubt, Covered Aircraft and any equipment or facilities leased or subleased by United to Contractor) at any location, **in each case** [\*\*\*]. United will use commercially reasonable efforts to cause and assure that United will at all times be and remain in custody and control of any aircraft, equipment and facilities of, or operated by, United, and Contractor and its directors, officers, employees and agents (excluding Contractor as such an agent) shall not, for any reason, be deemed to be in the custody or control, or a bailee, of such aircraft, equipment or facilities.

*Section 7.03* Indemnification Claims. A party (the "**<u>Indemnified Party</u>**") entitled to indemnification from another party under the terms of this Agreement (the "**<u>Indemnifying Party</u>**") shall provide the Indemnifying Party with prompt written notice (an "**<u>Indemnity Notice</u>**") of any third party claim which the Indemnified Party believes gives rise to a claim for indemnity against the Indemnifying Party hereunder. Notwithstanding the foregoing, the failure of an Indemnified Party to promptly provide an Indemnity Notice shall not constitute a waiver by the Indemnified Party to any right to indemnification or otherwise relieve such Indemnifying Party from any liability hereunder unless and only to the extent that the Indemnifying Party is materially prejudiced as a result thereof. The Indemnifying Party shall be entitled, if it accepts financial responsibility for the third party claim, to control the defense of or to settle any such third party claim at its own expense and by its own counsel; *provided* that, unless a settlement includes an unconditional release of an Indemnified Party, no settlement by the Indemnifying Party of such a claim will be binding on such Indemnified Party for purposes of the indemnification provisions hereof without the prior written consent of such Indemnified Party to such settlement, which consent may not be unreasonably withheld, conditioned or delayed. The Indemnified Party shall provide the Indemnifying Party with such information as the Indemnifying Party shall reasonably request to defend any such third party claim and shall otherwise cooperate with the Indemnifying Party in the defense of any such third party claim. Except as set forth in this <u>Section</u> <u>7.03</u>, no settlement or other compromise or consent to a judgment by the Indemnified Party with respect to a third party claim as to which the Indemnifying Party is asserted to have an indemnity obligation hereunder will be binding on the Indemnifying Party for purposes of the indemnification provisions hereof without the prior written consent of such Indemnifying Party to such settlement, which consent may not be unreasonably withheld, conditioned or delayed, it being agreed however that it shall be reasonable for the Indemnifying Party to withhold or delay its consent if the Indemnifying Party reasonably asserts that the claim is not fully covered by the indemnity provided hereunder, and the entering into of any settlement or compromise or the consent to any judgment in violation of the foregoing shall constitute a waiver by the Indemnified Party of its right to indemnity hereunder to the extent the Indemnifying Party was prejudiced thereby. Any Indemnifying Party

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shall be subrogated to the rights of the Indemnified Party to the extent that the Indemnifying Party pays for any loss, damage or expense suffered by the Indemnified Party hereunder. If the Indemnifying Party does not accept financial responsibility for the third party claim or fails to defend against the third party claim that is the subject of an Indemnity Notice within 30 days of receiving such notice (or sooner if the nature of the third party claim so requires), or otherwise contests its obligation to indemnify the Indemnified Party in connection therewith, then the Indemnified Party may, upon providing written notice to the Indemnifying Party, pay, compromise or defend such third party claim without the prior consent of the (otherwise) Indemnifying Party. In the latter event, the Indemnified Party, by proceeding to defend itself or settle the matter, does not waive any of its rights hereunder to later seek reimbursement from the Indemnifying Party.

*Section 7.04 <u>Employer</u><u>'</u><u>s Liability; Independent Contractors; Waiver of Control</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Employer</u><u>'</u><u>s Liability and Workers</u><u>'</u> <u>Compensation</u>*. Each party hereto assumes full responsibility for its employer's and workers' compensation liability to its respective officers, directors, employees or agents on account of injury or death resulting from or sustained in the performance of their respective service under this Agreement. Each party, with respect to its own employees, accepts full and exclusive liability for the payment of workers' compensation and employer's liability insurance premiums with respect to such employees, and for the payment of all taxes, contributions or other payments for unemployment compensation or old age or retirement benefits, pensions or annuities now or hereafter imposed upon employers by the government of the United States or any other governmental body, including state, local or foreign, with respect to such employees measured by the wages, salaries, compensation or other remuneration paid to such employees, or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Employees, etc., of Contractor</u>*. The employees, agents, and independent contractors of Contractor engaged in performing any of the services Contractor is to perform pursuant to this Agreement are employees, agents, and independent contractors of Contractor for all purposes, and under no circumstances will be deemed to be employees, agents or independent contractors of United. In its performance under this Agreement, Contractor will act, for all purposes, as an independent contractor and not as an agent for United. Notwithstanding the fact that Contractor has agreed to follow certain procedures, instructions and standards of service of United pursuant to this Agreement, United will have no supervisory power or control over any employees, agents or independent contractors engaged by Contractor in connection with its performance hereunder and Contractor shall defend, indemnify and hold harmless United and its directors, officers, employees and agents from and against any and all claims alleging that United is the employer of any said employees, agents or independent contractors engaged by Contractor. All complaints or requested changes in procedures made by United will, in all events, be transmitted by United to Contractor's designated representative. Nothing contained in this Agreement shall be construed as joint employment or is intended to limit or condition Contractor's control over its operations or the conduct of its business as an air carrier.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>Employees, etc., of United</u>*. The employees, agents, and independent contractors of United engaged in performing any of the services United is to perform pursuant to this Agreement are employees, agents, and independent contractors of United for all purposes, and under no circumstances will be deemed to be employees, agents, or independent contractors of Contractor. Contractor will have no supervision or control over any such United employees, agents and independent contractors and any complaint or requested change in procedure made by Contractor will be transmitted by Contractor to United's designated representative. In its performance under this Agreement, United will act, for all purposes, as an independent contractor and not as an agent for Contractor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *<u>Contractor Flights</u>*. The fact that Contractor's operations are conducted under United Marks and listed under the flight code designated by United will not affect their status as flights operated by Contractor for purposes of this Agreement or any other agreement between the parties, and Contractor and United agree to advise all third parties, including passengers, of this fact.

*Section 7.05 <u>Unauthorized Obligations</u>*. Notwithstanding anything to the contrary in this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) nothing in this Agreement authorizes United to make any contract, agreement, warranty or representation on Contractor's behalf, or to incur any debt or obligation in Contractor's name (a "**<u>Contractor Unauthorized Obligation</u>**"), and United hereby agrees to defend, indemnify, save, release and hold Contractor and its officers, directors, employee and agents harmless from any and all liabilities, claims, judgments and obligations which arise as a result of or in connection with or by reason of any such Contractor Unauthorized Obligation made by United or its officers, directors, employees, agents or independent contractors (other than Contractor) in the conduct of United's operations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) nothing in this Agreement authorizes Contractor or any of its affiliates to make any contract, agreement, warranty or representation on United's behalf, or to incur any debt or obligation in United's name, or to dispose of any of United's assets, or to enter into agreements with third parties which create liens, claims or encumbrances on any of United's assets (a "**<u>United Unauthorized Obligation</u>**"), and Contractor hereby agrees to defend, indemnify, save, release and hold United and its officers, directors, employee and agents harmless from any and all liabilities, claims, judgments and obligations which arise as a result of or in connection with or by reason of any such United Unauthorized Obligation made by Contractor or any of its affiliates or any of their respective officers, directors, employees, agents or independent contractors in connection with the conduct of Contractor's operations.

*Section 7.06 <u>Survival</u>*. The provisions of this <u>Article</u> <u>VII</u> shall survive the termination of this Agreement for a period of seven years.

**ARTICLE VIII** 

**TERM, TERMINATION AND DISPOSITION OF AIRCRAFT** 

*Section 8.01 <u>Term;</u>* [\*\*\*].

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Unless earlier terminated or extended as provided under this Agreement, the term of this Agreement shall commence on the Effective Date and continue until the date on which there are no Covered Aircraft performing Regional Airline Services under this Agreement (the "**<u>Term</u>**"); *provided* that the Term applicable to any specific aircraft shall commence on the date that such aircraft commences scheduled service under this Agreement and shall continue until the withdrawal of such Covered Aircraft from the capacity purchase provisions of this Agreement pursuant to this <u>Article</u> <u>VIII</u>, or as otherwise expressly set forth on <u>Schedule</u> <u>1</u> or otherwise in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding anything to the contrary in this Agreement, at any time from time to time [\*\*\*].

*Section 8.02 <u>Early Termination</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>By United for Cause</u>*. United shall have the right to terminate this Agreement, immediately upon written notice (but without any prior notice), which notice may specify a termination of this Agreement with respect to all or a portion of the Covered Aircraft, following the occurrence of any event that constitutes Cause. Any termination pursuant to this <u>Section</u> <u>8.02(a)</u> shall supersede any other termination pursuant to any other provision of this Agreement (even if such other right of termination shall already have been exercised), and the date of such notice shall specify the Termination Date for purposes of this Agreement (and such Termination Date pursuant to this <u>Section</u> <u>8.02(a)</u> shall supersede any other Termination Date that may have been previously established pursuant to another termination).*<u> </u>*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>By United for Breach</u>*. United may terminate this Agreement with respect to [\*\*\*], upon the occurrence of a material breach of this Agreement by Contractor, [\*\*\*]. The parties agree that, without limiting the circumstances or events that may constitute a material breach, each of the following shall constitute a material breach of this Agreement by Contractor:

[\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>By Contractor for Breach</u>*. Contractor may terminate this Agreement [\*\*\*], *provided* that United [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *<u>Waiver of Breach</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Except as otherwise provided in <u>Section</u> <u>8.02(b)</u>, if a notice of termination under <u>Section</u> <u>8.02(b)(iii)</u> is not delivered by United within [\*\*\*] after the end of the cure period relating solely to the default described in such relevant provision under <u>Section</u> <u>8.02(b)(iii)</u>, then United shall be deemed to have conclusively waived its right hereunder to terminate solely as to the particular circumstance triggering <u>Section</u> <u>8.02(b)(iii)</u> (it being understood, for the avoidance of doubt, that such waiver shall not apply to subsequent or other circumstances even if a calendar month in such subsequent or other performance default also was implicated in the performance default subject to such waiver).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If a notice of termination under <u>Section</u> <u>8.02(c)</u> is not delivered by Contractor within [\*\*\*] after the end of the applicable cure period (or occurrence of such breach if there is not a cure period provided pursuant to <u>Section</u> <u>8.02(a)</u>, <u>Section</u> <u>8.02(b)</u>, or <u>Section</u> <u>8.02(c)</u>), then Contractor shall be deemed to have conclusively waived its right hereunder to terminate for any such breach; *provided* that [\*\*\*].

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *<u>Intentionally omitted</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *<u>Survival During Wind-Down Period</u>*. With respect to a Covered Aircraft that is terminated under <u>Article VIII</u>, this Agreement shall survive in full force and effect (and the Term shall continue), beyond the Termination Date until the end of the Wind-Down Period, and the rights and obligations of the parties under this Agreement, including applicable payments expressly required hereunder and remedies available upon the occurrence of events constituting Cause or material breach, shall continue with respect to the Covered Aircraft until they are withdrawn from this Agreement and otherwise until the later of the Termination Date and the end of the Wind-Down Period, if any; *provided* that, automatically upon the expiration of the Wind-Down Period with respect to such aircraft, this Agreement shall have terminated in its entirety with respect to such aircraft.

*Section 8.03 <u>Disposition of Aircraft during Wind-Down Period</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Termination by United for Cause</u>*. If this Agreement is terminated pursuant to <u>Section</u> <u>8.02(a)</u>, [\*\*\*] shall apply. If this Agreement is terminated pursuant to <u>Section</u> <u>8.02(a)</u> and United does not make the foregoing election, then the Covered Aircraft shall be withdrawn from the capacity purchase provisions of this Agreement in accordance with the following terms and conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) As of the Termination Date, the number of Covered Aircraft specified in the termination notice delivered by United to Contractor pursuant to <u>Section</u> <u>8.02(a)</u> shall automatically be withdrawn from the capacity purchase provisions of this Agreement and shall cease to be Covered Aircraft as of such date. As to Covered Aircraft, Contractor shall on the withdrawal date for such aircraft deliver possession of such aircraft to United or its designee and all of the Covered Aircraft Leases for withdrawn Covered Aircraft will, upon such delivery, be terminated in accordance with the terms of the Covered Aircraft Leases. The provisions of this <u>Section</u> <u>8.03(a)(i)</u> shall supersede any Wind-Down Schedule delivered pursuant to any other provision of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Upon the withdrawal of each Covered Aircraft that is being returned to United (or its designee) pursuant to this <u>Section</u> <u>8.03(a)</u>, Contractor shall remain [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Termination by United for Breach, Etc</u>*. If this Agreement is terminated by United under <u>Section</u> <u>8.02(b)</u>, then [\*\*\*] shall be withdrawn from the capacity purchase provisions of this Agreement in accordance with the following terms and conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Within [\*\*\*] of delivery of any notice of termination delivered pursuant to <u>Section</u> <u>8.02(b)</u>, United shall deliver to Contractor an irrevocable written Wind-Down Schedule, providing for the withdrawal of such Covered Aircraft from the capacity purchase provisions of this Agreement, delineating the number of each aircraft type to be withdrawn by month.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) United shall deliver to Contractor the Wind-Down Schedule within [\*\*\*] of providing the applicable notice pursuant to <u>Section</u> <u>8.02(b)</u>; *provided* that the Wind- Down Schedule (x) may not commence until the Termination Date, (y) may not provide for the withdrawal of any Covered Aircraft prior to the date that is [\*\*\*] after the date of delivery of the Wind-Down Schedule and (z) may not provide for the withdrawal of any Covered Aircraft for more than [\*\*\*] after the date of delivery of the notice of termination delivered pursuant to <u>Section</u> <u>8.02(b)</u>. The Wind-Down Schedule may not provide for the withdrawal of more than [\*\*\*] Covered Aircraft per calendar month. United shall have complete discretion in the selection of the particular Covered Aircraft to be withdrawn in any month. Upon the date for withdrawal of a Covered Aircraft specified in the Wind-Down Schedule established pursuant to this <u>Section</u> <u>8.03(b)</u>, such aircraft shall cease to be a Covered Aircraft, and, in the case of each Covered Aircraft, Contractor shall deliver possession of such aircraft to United (or its designee) on such withdrawal date for such aircraft and the Covered Aircraft Lease with respect to such aircraft shall, upon such delivery in accordance with the terms of such Covered Aircraft Lease, be terminated in accordance with the terms of such Covered Aircraft Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>Termination by Contractor for Breach</u>*. If this Agreement is terminated by Contractor under <u>Section</u> <u>8.02(c)</u>, then the Covered Aircraft shall be withdrawn from the capacity purchase provisions of this Agreement in accordance with the following terms and conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The notice of termination delivered by Contractor to United pursuant to <u>Section</u> <u>8.02(c)(i)</u> shall be irrevocable and shall contain a Termination Date that is not more than [\*\*\*] after the date of such notice; *provided* that such termination notice shall be void and of no further effect automatically upon the payment by United prior to such Termination Date of all unpaid amounts giving rise to the default under <u>Section</u> <u>8.02(c)(i)</u>. As of the Termination Date set forth in a notice of termination delivered pursuant to <u>Section</u> <u>8.02(c)(i)</u>, [\*\*\*]. Within [\*\*\*] of delivering such termination notice pursuant to <u>Section</u> <u>8.02(c)(i)</u>, Contractor shall deliver to United a Wind-Down Schedule. The Wind-Down Schedule shall [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The notice of termination delivered by Contractor to United pursuant to <u>Section</u> <u>8.02(c)(ii)</u> shall be irrevocable and shall contain a Termination Date that is at least [\*\*\*] after the date of such notice. Within [\*\*\*] of delivering such termination notice pursuant to <u>Section</u> <u>8.02(c)(ii)</u>, Contractor shall deliver to United a Wind-Down Schedule. The Wind-Down Schedule shall [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The notice of termination delivered by Contractor to United pursuant to <u>Section</u> <u>8.02(c)(iii)</u> shall be irrevocable and shall contain a Termination Date that is at least [\*\*\*] after the date of such notice. Within [\*\*\*] of delivering such termination notice pursuant to <u>Section</u> <u>8.02(c)(iii)</u>, Contractor shall deliver to United a Wind-Down Schedule. The Wind-Down Schedule shall [\*\*\*].

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Covered Aircraft being returned following a termination notice delivered pursuant to <u>Section</u> <u>8.02(c)(ii)</u> shall be returned to United in accordance with Contractor's Wind-Down Schedule delivered pursuant to <u>Section</u> <u>8.03(c)(ii)</u>, and each such aircraft shall cease to be a Covered Aircraft as of the date of such withdrawal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *<u>Intentionally omitted</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *<u>Intentionally omitted</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *<u>Other Remedies in Lieu of Termination for Labor Strike and Other Circumstances</u>*. In the event of the occurrence of (i) a Labor Strike or (ii) the mandatory grounding of any portion of the Covered Aircraft [\*\*\*], then, so long as United has not provided a termination notice to Contractor pursuant to <u>Section</u> <u>8.02(b)</u>, United shall [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) *<u>Damages; Rescission.</u>* EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT (INCLUDING, FOR THE AVOIDANCE OF DOUBT, THE ENTITLEMENT TO LIQUIDATED DAMAGES UNDER THIS AGREEMENT, WHICH SHALL NOT BE LIMITED IN ANY MANNER WHATSOEVER BY THIS <u>SECTION 8.03(h)</u>), NO PARTY TO THIS AGREEMENT OR ANY OF ITS AFFILIATES SHALL BE LIABLE TO ANY OTHER PARTY HERETO OR ANY OF ITS AFFILIATES FOR CLAIMS FOR CONSEQUENTIAL, PUNITIVE, SPECIAL OR EXEMPLARY DAMAGES, ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY, REGARDLESS WHETHER A CLAIM IS BASED ON CONTRACT, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY, VIOLATION OF ANY APPLICABLE DECEPTIVE TRADE PRACTICES ACT OR SIMILAR LAW OR ANY OTHER LEGAL OR EQUITABLE PRINCIPLE, AND EACH PARTY RELEASES THE OTHERS AND THEIR RESPECTIVE AFFILIATES FROM LIABILITY FOR ANY SUCH DAMAGES; *PROVIDED* THAT THE FOREGOING LIMITATION SHALL NOT APPLY TO LIMIT THE LIABILITY OF ANY PARTY FOR THE CONSEQUENTIAL DAMAGES SUFFERED BY ANY OTHER PARTY IF THE FIRST PARTY ACTED IN BAD FAITH. NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THE FOREGOING, NOTHING IN THIS <u>SECTION 8.03(h)</u> SHALL LIMIT (X) A PARTY'S ENTITLEMENT TO INDEMNIFICATION UNDER <u>ARTICLE VII</u> AS TO THIRD PARTY CLAIMS, OR (Y) THE RIGHT OF ANY PARTY EITHER TO RECOVER DIRECT DAMAGES OR TO EXERCISE ANY RIGHT TO TERMINATE THIS AGREEMENT PURSUANT TO THE TERMS OF THIS AGREEMENT. NO PARTY SHALL BE ENTITLED TO RESCISSION OF THIS AGREEMENT AS A RESULT OF BREACH OF ANY OTHER PARTY'S REPRESENTATIONS, WARRANTIES, COVENANTS OR AGREEMENTS, OR FOR ANY OTHER MATTER.

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*Section 8.04* [\*\*\*].

**ARTICLE IX** 

**REPRESENTATIONS, WARRANTIES AND COVENANTS** 

*Section 9.01 <u>Representations, Warranties and Covenants of Contractor</u>*. Contractor represents, warrants and covenants to United as of the date hereof as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Organization and Qualification</u>*. Contractor is a duly organized and validly existing corporation in good standing under the laws of the State of [Delaware] and Contractor has the power and authority to own, operate and use its assets and to provide the Regional Airline Services. Contractor is duly qualified to do business as a foreign entity under the laws of each jurisdiction that requires such qualification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Authority Relative to this Agreement</u>*. Contractor has the corporate power and authority to execute and deliver this Agreement and to consummate the transactions contemplated hereby in accordance with the terms hereof. The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by all necessary corporate action on the part of Contractor. This Agreement has been duly and validly executed and delivered by Contractor and is, assuming due execution and delivery thereof by United and that United has legal power and right to enter into this Agreement, a valid and binding obligation of Contractor, enforceable against Contractor in accordance with its terms, except as enforcement hereof may be limited by bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws relating to or affecting the enforcement of creditors' rights generally and legal principles of general applicability governing the availability of equitable remedies (whether considered in a proceeding in equity or at law or otherwise under applicable law).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>Conflicts</u>*. Neither the execution or delivery of this Agreement nor the performance by Contractor of the transactions contemplated hereby will (i) violate, conflict with, or constitute a default under any of the terms of Contractor's certificate of incorporation, by-laws, or any provision of, or result in the acceleration of any obligation under, any material contract, sales commitment, license, purchase order, security agreement, mortgage, note, deed, lien, lease or other agreement to which Contractor is a party or by which it or any of its properties or assets may be bound, (ii) result in the creation or imposition of any lien, charge or encumbrance in favor of any third Person or entity, (iii) violate any law, statute, judgment, decree, order, rule or regulation of any Governmental Authority or body, or (iv) constitute any event which, after notice or lapse of time or both, would result in such violation, conflict, default, acceleration or creation or imposition of liens, charges or encumbrances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *<u>No Default</u>*. To the knowledge of Contractor and Parent, Contractor is not (i) in violation of its certificate of [formation / incorporation] or [limited liability company agreement], (ii) in breach or default in any material respect, and no event has occurred which, with notice or lapse of time or both, would constitute such a breach or default, in the due performance or observance of any term, covenant or condition contained in any indenture, mortgage, deed of trust, loan agreement or other material agreement or

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instrument to which it is a party or by which it is bound or to which any of its properties or assets is subject or (iii) in violation of any law, ordinance, governmental rule, regulation or court decree to which it or its property or assets may be subject or has failed to obtain any material license, permit, certificate, franchise or other governmental authorization or permit necessary to the ownership of its property or to the conduct of its business, where such violation, breach, default or failure would have a material adverse effect on Contractor or on its ability to provide Regional Airlines Services and otherwise perform its obligations hereunder. To the knowledge of Contractor and Parent, no third party to any indenture, mortgage, deed of trust, loan agreement, lease or other agreement or instrument that is material to Contractor to which Contractor is a party or by which any of them are bound or to which any of their properties are subject, is in default in any material respect under any such agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *<u>Broker</u>*. Contractor has not retained or agreed to pay any broker or finder with respect to this Agreement and the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *<u>Insurance</u>*. Contractor is insured by insurers of recognized financial responsibility against such losses and risks and in such amounts and with such deductibles as are customary in the businesses in which they are engaged. Contractor has not received notice of cancellation or non-renewal of such insurance. All such insurance is outstanding and duly in force on the date hereof. Contractor has no reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business at a cost that would not have a material adverse effect on Contractor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) *<u>No Proceedings</u>*. There are no legal or governmental proceedings pending, or investigations commenced of which Contractor has received notice, in each case to which Contractor is a party or of which any property or assets of Contractor is the subject which, if determined adversely to Contractor, would individually or in the aggregate have a material adverse effect on Contractor or on its ability to provide Regional Airlines Services and otherwise perform its obligations hereunder; and to the best knowledge of Contractor and Parent, no such proceedings are threatened or contemplated by Governmental Authorities or threatened by others.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) *<u>No Labor Dispute; No Collective Bargaining Agreement</u>*. No labor dispute with the employees of Contractor exists or, to the knowledge of Contractor, is imminent which would reasonably be expected to have a material adverse effect on Contractor or on its ability to provide Regional Airlines Services and otherwise perform their respective obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *<u>Permits</u>*. Contractor possesses all material certificates, authorizations and permits issued by FAA and other applicable federal, state or foreign regulatory authorities necessary to conduct its business, to provide Regional Airlines Services and otherwise to perform its obligations hereunder, and Contractor has not [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) *<u>Sanctions and Trade Compliance</u>*. None of Contractor, its subsidiaries or affiliates will enter into any agreement, transaction or dealing in violation of, or in a manner that could expose United, its subsidiaries or affiliates to Losses under applicable Law, [\*\*\*].

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Contractor represents that it has [\*\*\*].

*Section 9.02 <u>Representations and Warranties of United</u>*. United represents and warrants to Contractor as of the date hereof as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Organization and Qualification</u>*. United is a duly incorporated and validly existing corporation in good standing under the laws of the State of Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Authority Relative to this Agreement</u>*. United has the corporate power and authority to execute and deliver this Agreement and to consummate the transactions contemplated hereby in accordance with the terms hereof. The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by all necessary corporate action on the part of United. This Agreement has been duly and validly executed and delivered by United and is, assuming due execution and delivery thereof by Contractor and that Contractor has legal power and right to enter into this Agreement, a valid and binding obligation of United, enforceable against United in accordance with its terms, except as enforcement hereof may be limited by bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws relating to or affecting the enforcement of creditors' rights generally and legal principles of general applicability governing the availability of equitable remedies (whether considered in a proceeding in equity or at law or otherwise under applicable law).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>Conflicts; Defaults</u>*. Neither the execution or delivery of this Agreement nor the performance by United of the transactions contemplated hereby will (i) violate, conflict with, or constitute a default under any of the terms of United's certificate of incorporation, by-laws, or any provision of, or result in the acceleration of any obligation under, any material contract, sales commitment, license, purchase order, security agreement, mortgage, note, deed, lien, lease or other agreement to which United is a party or by which it or its properties or assets may be bound, (ii) result in the creation or imposition of any lien, charge or encumbrance in favor of any third Person or entity, (iii) violate any law, statute, judgment, decree, order, rule or regulation of any Governmental Authority, or (iv) constitute any event which, after notice or lapse of time or both, would result in such violation, conflict, default, acceleration or creation or imposition of liens, charges or encumbrances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *<u>Broker</u>*. United has not retained or agreed to pay any broker or finder with respect to this Agreement and the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *<u>No Proceedings</u>*. There are no legal or governmental proceedings pending, or investigations commenced of which United has received notice, in each case to which United is a party or of which any property or assets of United is the subject which, if determined adversely to United, would individually or in the aggregate have a material adverse effect on United or on its ability to perform its obligations hereunder; and to the best knowledge of United, no such proceedings are threatened or contemplated by Governmental Authorities or threatened by others.

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**ARTICLE X** 

**MISCELLANEOUS** 

*Section 10.01 <u>Intentionally omitted</u>*.

*Section 10.02 <u>Notices</u>*. All notices or other communications required or permitted hereunder shall be given in writing and given by (i) certified or registered mail, return receipt requested, (ii) nationally recognized overnight delivery service, (iii) e-mail delivery (including delivery of a document in portable document format) with electronic delivery confirmation received by the sender or (iv) personal delivery against receipt to the party to whom it is given, in each case, at such party's physical or e-mail address set forth below or such other physical address or e-mail address as such party may hereafter specify by written notice to the other parties hereto given in accordance with this <u>Section</u> <u>10.02</u>. Any such notice or other communication shall be deemed to have been given as of the date so personally delivered or transmitted by e-mail delivery (or, if delivered or transmitted after normal business hours, on the next Business Day) or on the next Business Day when sent by overnight delivery services or five days after the date so mailed if by certified or registered mail.

if to United:

United Airlines, Inc.

Willis Tower

233 S. Wacker Drive

Chicago, IL 60606

Attention: UAX Notices

[\*\*\*]

if to Contractor:

Republic Airways Inc.

8909 Purdue Road, Suite 300

Indianapolis, Indiana 46268

Attn: President and Chief Executive Officer

And to:

Republic Airways Inc.

8909 Purdue Road, Suite 300

Indianapolis, Indiana 46268

Attn: Senior Vice President and Chief Financial Officer

[\*\*\*]

------

With a copy to:

Republic Airways Inc.

8909 Purdue Road, Suite 300

Indianapolis, Indiana 46268

Attn: Senior Vice President and General Counsel

[\*\*\*]

or to such other address as a party hereto may have furnished to the other party by a notice in writing in accordance with this <u>Section</u> <u>10.02</u>.

*Section 10.03 <u>Binding Effect; Assignment</u>*. This Agreement and all of the provisions hereof shall be binding upon the parties hereto and inure to the benefit of the parties hereto and their respective successors and permitted assigns. Neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned by any party hereto without the prior written consent of the other parties; *provided* that United may assign without Contractor's prior written consent this Agreement or any or all of its rights and obligations hereunder to any direct or indirect wholly-owned subsidiary of United's Parent.

*Section 10.04 <u>Amendment and Modification</u>*. This Agreement may not be amended or modified in any respect except by a written agreement signed by the parties hereto that specifically states that it is intended to amend or modify this Agreement.

*Section 10.05 <u>Waiver</u>*. The observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively) by the party entitled to enforce such term, but such waiver shall be effective only if it is in writing signed by the party against which such waiver is to be asserted that specifically states that it is intended to waive such term. Unless otherwise expressly provided in this Agreement, no delay or omission on the part of any party in exercising any right or privilege under this Agreement shall operate as a waiver thereof, nor shall any waiver on the part of any party of any right or privilege under this Agreement operate as a waiver of any other right or privilege under this Agreement nor shall any single or partial exercise of any right or privilege preclude any other or further exercise thereof or the exercise of any other right or privilege under this Agreement. No failure by any party to take any action or assert any right or privilege hereunder shall be deemed to be a waiver of such right or privilege in the event of the continuation or repetition of the circumstances giving rise to such right unless expressly waived in writing by each party against whom the existence of such waiver is asserted.

*Section 10.06 <u>Interpretation</u>*. The table of contents and the section and other headings and subheadings contained in this Agreement and in the exhibits and schedules hereto are solely for the purpose of reference, are not part of the agreement of the parties hereto, and shall not in any way affect the meaning or interpretation of this Agreement or any exhibit or schedule hereto. All references to days or months shall be deemed references to calendar days or months. All references to "$" shall be deemed references to United States dollars. Unless the context otherwise requires, any reference to an "Article," a "Section," an "Exhibit," or a "Schedule" shall be deemed to refer to a section of this Agreement or an exhibit or schedule to this Agreement, as applicable. The words "hereof," "herein" and "hereunder" and words of similar import referring to this Agreement refer to this Agreement as a whole and not to any particular provision of this Agreement. Whenever the words "include," "includes" or "including" are used in this Agreement, unless

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otherwise specifically provided, they shall be deemed to be followed by the words "without limitation." This Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation against the party drafting or causing the document to be drafted. Unless specified otherwise, all references in this Agreement to an "option", a right of "consent" or "election" (including terms correlative to the foregoing), or to other similar rights shall be deemed to be consents, rights to elections or options, or other similar rights, as applicable, that may be withheld, conditioned or delayed at the sole discretion of the party holding such option or right of consent or election, or other similar right, as the case may be.

*Section 10.07 <u>Confidentiality</u>*. Except as required by law or stock exchange or other regulation or in any proceeding to enforce the provisions of this Agreement, or as otherwise provided below, each party hereby agrees not to publicize or disclose to any third party the existence, terms (including the names of the parties) or conditions of this Agreement or any of the Ancillary Agreements, or any exhibit, schedule or appendix hereto or thereto, or any CPA Records, without the prior written consent of the other parties thereto (except that (i) a party may disclose such information to its existing and potential lenders, lessors and other financing parties, its third-party consultants, its advisors and its representatives, in each case who are themselves bound to keep such information confidential and (ii) United may disclose any information to its organized labor groups and their third-party consultants, advisors and representatives as required pursuant to applicable collective bargaining agreements). Except as required by law or stock exchange or other regulation or in any proceeding to enforce the provisions of this Agreement or any of the Ancillary Agreements, or as otherwise provided below, each party hereby agrees not to disclose to any third party any confidential information or data, both oral and written, received from the other, whether pursuant to or in connection with this Agreement or any of the Ancillary Agreements, and designated as such by the other without the prior written consent of the party providing such confidential information or data (except that a party may disclose such information to its third party consultants, advisors and representatives, in each case who are themselves bound to keep such information confidential). Each party hereby agrees not to use any such confidential information or data of the other party other than in connection with performing their respective obligations or enforcing their respective rights under this Agreement or any of the Ancillary Agreements, or as otherwise expressly permitted or contemplated by this Agreement or any of the Ancillary Agreements. If either party is served with a subpoena or other process requiring the production or disclosure of any of such agreements or information, then the party receiving such subpoena or other process, before complying with such subpoena or other process, shall immediately notify the other parties hereto of the same and permit said other parties a reasonable period of time to intervene and contest disclosure or production. Upon termination of this Agreement, each party must return to each other any confidential information or data received from the other and designated as such by the party providing such confidential information or data which is still in the recipient's possession or control. Without limiting the foregoing, no party shall be prevented from disclosing in any government filing the following terms of this Agreement: the existence of this Agreement, number of aircraft subject hereto, the periods for which such aircraft are subject hereto, and any termination provisions contained herein. Notwithstanding anything to the contrary in the foregoing, prior to the disclosure of any information relating to this Agreement to a third party or Governmental Authority (even if such disclosure is permitted by the provisions set forth above), Contractor shall provide reasonable advance notice to United, and shall consider in good faith reasonable limitations on disclosure proposed by United (including redactions or the omission of certain schedules or exhibits), it being acknowledged by the parties that the omission or redaction

------

of information customarily contemplated as commercially sensitive (including numerical figures for Base Compensation Rates) shall be deemed to constitute reasonable limitations in all events. Prior to making any public filing of this Agreement or any amendment hereto, or any portion of any of the foregoing, Contractor and Parent shall afford United seven Business Days to propose the redaction of any commercially sensitive information contained therein, and Contractor will consider any such redactions from United in good faith and will use reasonable best efforts to incorporate such redactions into such public filing; *provided* that nothing in this sentence shall limit the right of Contractor or Parent to make any disclosure that it determines in good faith, upon the advice of its outside counsel, is necessary pursuant to applicable law or stock exchange. The provisions of this <u>Section</u> <u>10.07</u> shall survive the termination of this Agreement for a period of 10 years.

*Section 10.08 <u>Arbitration</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Agreement to Arbitrate</u>*. Subject to the equitable remedies provided under <u>Section</u> <u>10.12</u>, any and all claims, demands, causes of action, disputes, controversies and other matters in question (all of which are referred to herein as "**<u>Claims</u>**") arising out of or relating to this Agreement, shall be resolved by binding arbitration pursuant to the procedures set forth by the AAA. Each of the parties agrees that arbitration under this <u>Section</u> <u>10.08</u> is the exclusive method for resolving any Claim and that it will not commence an action or proceeding based on a Claim hereunder, except to enforce the arbitrators' decisions as provided in this <u>Section</u> <u>10.08</u>, to compel any other party to participate in arbitration under this <u>Section</u> <u>10.08</u>. The governing law for any such action or proceeding shall be the law set forth in <u>Section</u> <u>10.08(f)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Initiation of Arbitration</u>*. If any Claim has not been resolved by mutual agreement on or before the 15<sup>th</sup> day following the first notice of the Claim to or from a disputing party, then the arbitration may be initiated by one party by providing to the other party a written notice of arbitration specifying the Claim or Claims to be arbitrated. If a party refuses to honor its obligations to arbitrate under this provision, the other party may compel arbitration in either federal or state court in Chicago, Illinois and seek recovery of its attorneys' fees and court costs incurred if the arbitration is ordered to proceed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>Place of Arbitration</u>*. The arbitration proceeding shall be conducted in New York, New York, or some other location mutually agreed upon by the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *<u>Selection of Arbitrators</u>*. The arbitration panel (the "**<u>Panel</u>**") shall consist of three arbitrators who are qualified to hear the type of Claim at issue. They may be selected by agreement of the parties within 30 days of the notice initiating the arbitration procedure, or from the date of any order compelling such arbitration to proceed. If the parties fail to agree upon the designation of any or all the Panel, then the parties shall request the assistance of the AAA. The Panel shall make all of its decisions by majority vote. Evident partiality on the part of an arbitrator exists only where the circumstances are such that a reasonable person would have to conclude there in fact existed actual bias, and a mere appearance or impression of bias will not constitute evident partiality or otherwise disqualify an arbitrator. The decision of the Panel will be binding and non-appealable, except as permitted under the Federal Arbitration Act.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *<u>Choice of Law as to Procedural Matters</u>*. The enforcement of this agreement to arbitrate, and all procedural aspects of the proceeding pursuant to this agreement to arbitrate, including the issues subject to arbitration (i.e., arbitrability), the scope of the arbitrable issues, and the rules governing the conduct of the arbitration, unless otherwise agreed by the parties, shall be governed by and construed pursuant to the Federal Arbitration Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *<u>Choice of Law as to Substantive Claims</u>*. In deciding the substance of the parties' Claims, the arbitrators shall apply the substantive laws of the State of New York (excluding New York choice-of-law principles that might call for the application of the law of another jurisdiction).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) *<u>Procedure</u>*. It is contemplated that the arbitration proceeding will be self- administered by the parties and conducted in accordance with procedures jointly determined by the Panel and the parties; *provided*, *however*, that if either or both parties believes the process will be enhanced if it is administered by the AAA, then either or both parties shall have the right to cause the process to become administered by the AAA and, thereafter, the arbitration shall be conducted, where applicable or appropriate, pursuant to the administration of the AAA. In determining the extent of discovery, the number and length of depositions, and all other pre-hearing matters, the Panel shall endeavor to the extent possible to streamline the proceedings and minimize the time and cost of the proceedings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) *<u>Final Hearing</u>*. The final hearing shall be conducted within 120 days of the selection of the entire Panel. The final hearing shall not exceed 10 Business Days, with each party to be granted one-half of the allocated time to present its case to the arbitrators, unless otherwise agreed by the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *<u>Damages</u>*. Only actual damages may be awarded. It is expressly agreed that the Panel shall have no authority to award treble, exemplary or punitive damages of any type under any circumstances regardless of whether such damages may be available under the applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) *<u>Decision of the Arbitration</u>*. The Panel shall render its final decision and award in writing within 20 days of the completion of the final hearing completely resolving all of the Claims that are the subject of the arbitration proceeding. The Panel shall certify in its decision that no part of its award includes any amount for treble, exemplary or punitive damages. The Panel's decision and award shall be final and non-appealable to the maximum extent permitted by law. Any and all of the Panel's orders and decisions will be enforceable in, and judgment upon any award rendered in the arbitration proceeding may be confirmed and entered by, any federal or state court in Chicago, Illinois having jurisdiction.

*Section 10.09 <u>Confidentiality</u>*. All proceedings conducted hereunder and the decision and award of the Panel shall be kept confidential by the Panel and the parties.

------

*Section 10.10 <u>Counterparts</u>*. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument notwithstanding that United and Contractor are not signatories to the original or the same counterpart. This Agreement may be executed by facsimile signature. Each of United and Contractor shall become bound by this Agreement immediately upon affixing its signature hereto, independently of the signature of any other party.

*Section 10.11 <u>Severability</u>*. Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof. Any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

*Section 10.12 <u>Equitable Remedies</u>*. Each party acknowledges and agrees that, under certain circumstances, the breach by a party of a term or provision of this Agreement will materially and irreparably harm the other party, that money damages will accordingly not be an adequate remedy for such breach and that the non-defaulting party, in its sole discretion and in addition to its rights under this Agreement and any other remedies it may have at law or in equity, may apply to any court of law or equity of competent jurisdiction (without posting any bond or deposit) for specific performance and/or other injunctive relief in order to enforce or prevent any breach of the provisions of this Agreement. Neither the right of any party to terminate this Agreement, nor the exercise of such right, shall constitute a limitation on such party's right to seek damages or such other legal redress to which such party may otherwise be entitled; *provided* that, [\*\*\*].

*Section 10.13 <u>Relationship of Parties</u>*. Nothing in this Agreement shall be interpreted or construed as establishing between the parties a partnership, joint venture or other similar arrangement.

*Section 10.14 <u>Entire Agreement; No Third Party Beneficiaries</u>*. This Agreement (including the exhibits and schedules hereto) and the Ancillary Agreements are intended by the parties as a complete statement of the entire agreement and understanding of the parties with respect to the subject matter hereof, as well as all matters between the parties related to the subject matter herein or therein set forth, and supersedes any other agreements, representations, warranties, covenants, communications, or understandings, in each case whether oral or written (including electronic correspondence), that may have been made or entered into by or between the parties or any of their respective affiliates or agents relating in any way to the subject matter of this Agreement. This Agreement is made among, and for the benefit of, the parties hereto, and the parties do not intend to create any third-party beneficiaries hereby, and no other Person shall have any rights arising under, or interests in or to, this Agreement.

*Section 10.15 <u>Governing Law</u>*. Except with respect to matters referenced in <u>Section</u> <u>10.08(e)</u> (which shall be governed by and construed pursuant to the Federal Arbitration Act), this Agreement shall be governed by and construed in accordance with the laws of the State of New York (excluding New York choice-of-law principles that might call for the application of the law of another jurisdiction) as to all matters, including matters of validity, construction, effect, performance and remedies. Except as otherwise provided in <u>Section</u> <u>10.08(e)</u>, any action arising out of this Agreement or the rights and duties of the parties arising hereunder may be brought, if at all, only in the state or federal courts located in the United States District Court for the Northern District of Illinois or the County of Cook, Illinois, as applicable. Each party further agrees to waive any right to a trial by jury.

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*Section 10.16 <u>Right of Set-Off</u>*. If (i) any party hereto shall be in default hereunder to any other party, (ii) [\*\*\*], or (iii) [\*\*\*], then in each such case the non-defaulting party shall be entitled to set off from any payment owed by such non-defaulting party to the defaulting party hereunder any amount owed by the defaulting party to the non-defaulting party thereunder, [\*\*\*]; *provided* that [\*\*\*]. Upon completion of any such set-off, [\*\*\*].

*Section 10.17 <u>Cooperation with Respect to Reporting</u>*. Contractor shall be responsible for filing all reports relating to its operations that arc required by the DOT, FAA or other applicable government agencies (other than any such reports for which United, where permitted by law, has assumed, by written notice to Contractor, the responsibility to file on Contractor's behalf), and Contractor shall promptly furnish United with copies of all such reports and such other available traffic and operating reports as United may request from time- to-time. Each of the parties hereto agrees to use its commercially reasonable efforts to cooperate with each other party in providing necessary data, to the extent in the possession of the first party, required by such other party in order to meet any reporting requirements to, or otherwise in connection with any filing with or provision of information to be made to, any regulatory agency or other Governmental Authority. If a party [\*\*\*] prior to the filing deadline (the "**<u>Tarmac</u><u> </u><u>Delay Notice</u>**"), Contractor and United agree that United will file the DOT filing required under 49 U.S.C. 4230l(h) on Contractor's behalf. United will be liable for any fines assessed by the DOT attributable to United's failure to file this report by the deadline for such report, unless (i) that failure is caused by or otherwise results from Contractor's failure to provide United in a timely manner with the necessary data required by United in connection with the filing or (ii) United had provided the Tarmac Delay Notice specified above. The obligations under this <u>Section</u> <u>10.17</u> shall survive the termination of this Agreement.

*Section 10.18 <u>Covered Aircraft Lease; Delivery; Acceptance; Spare Engine</u> <u>[\*\*\*]</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Covered Aircraft Lease</u>*. The following provisions shall apply to all Covered Aircraft:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) At or prior to the time a Covered Aircraft becomes subject to the terms of this Agreement, United and Contractor shall enter into a Covered Aircraft Lease for such aircraft as an integral part of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Basic rent otherwise payable by Contractor to United pursuant to the Covered Aircraft Lease with respect to each Aircraft shall be [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Upon the termination of each Covered Aircraft Lease, Contractor shall comply with all of the provisions of the Covered Aircraft Lease applicable at such time. [\*\*\*]

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Spare Engines.* [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) [\*\*\*].

*Section 10.19 <u>Placement into Service</u>*. Prior to Contractor engaging a third party for any heavy maintenance, repair or overhaul with respect to any Covered Aircraft operating under this Agreement [\*\*\*], Contractor shall [\*\*\*].

*Section 10.20 <u>Early Brake Release</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) United shall gather all Aircraft Communication and Reporting System (ACARS) data for each Covered Aircraft that has had its Airline Modifiable Interface (AMI) modified to capture such information relating to the measurement of the time periods elapsed (any such elapsed period, an "**<u>EBR Period</u>**") between aircraft brake release and aircraft wheel movement for departures of all Scheduled Flights as measured by ACARS included on all in-service Covered Aircraft. United shall gather such data under the same parameters for all United Express carriers operating E175 aircraft whose aircraft technology allows for similar measurements. Subject to any confidentiality constraints imposed on United, Contractor shall have the right, upon reasonable request, to audit such data that United has gathered. [\*\*\*]

*Section 10.21 <u>Cumulative Remedies</u>*. Unless and to the extent as may be otherwise expressly stated in this Agreement (including, but not limited to, <u>Section</u> <u>2.01(d)</u>, <u>Section</u> <u>2.01(e)</u>, <u>Section</u> <u>2.01(h)(ii)</u>, and <u>Section</u> <u>8.03(f)</u>), no right or remedy conferred upon or reserved to Contractor or United by this Agreement is intended to be, nor shall be deemed, exclusive of any other right or remedy herein or by law or equity provided or permitted, but each will be cumulative of every other right or remedy.

*Section 10.22 <u>Intentionally omitted</u>*.

*Section 10.23 <u>Force Majeure</u>*. Without prejudice to United's rights of termination set forth herein, neither party will be deemed to be in default or breach of this Agreement, in the event and to the extent that its delay or failure to perform as required under this Agreement is caused by a result of any Act of God, [\*\*\*] ("**<u>Force Majeure</u>**"); *provided* that in the event of a Labor Strike [\*\*\*]. Each of the parties acknowledges that it may or may not realize the full economic or other benefits that it expects to realize from this Agreement and that any failure to realize any or all of such benefits in and of itself shall not constitute Force Majeure. The party affected by an event of Force Majeure, upon prompt written notice given to the other party, shall [\*\*\*].

*Section 10.24 <u>United Wifi</u>*. The parties shall use good faith efforts to update the terms and conditions set forth on <u>Exhibit S</u> hereto to be [\*\*\*], and to comply with such updated terms and conditions, in each case as promptly as reasonably practicable following the Effective Date.

*Section 10.25 <u>Cybersecurity Addendum.</u>* The parties shall use good faith efforts to incorporate new provisions with respect to United's cybersecurity requirements that are substantially similar to those requirements set forth on Exhibit T to the Republic CPA, and to comply with such new provisions, in each case as promptly as reasonably practicable following the Effective Date.

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*Section 10.26 <u>Manufacturer Guarantees</u>.* Contractor shall comply with all manufacturers' warranty and guaranty programs that United, on or before the Effective Date, has notified Contractor still apply applicable to each Covered Aircraft (all such programs, the "**<u>Manufacturer Programs</u>**") and shall [\*\*\*]. Without limiting the foregoing in this <u>Section</u> <u>10.26</u> and without limiting any of Contractor's other obligations pursuant to this Agreement, in the event that any payment, amount, credit or other benefit (any such payment, amount, credit or benefit, a "**<u>Manufacturer Program Benefit</u>**") is [\*\*\*], then United and Contractor shall [\*\*\*].

*Section 10.27 <u>Punitive Damages</u>*. No party to this Agreement or any of its affiliates shall be liable to any other party hereto or any of its affiliates for claims for punitive, special or exemplary damages, arising out of or relating to this Agreement or the transactions contemplated hereby, regardless of whether a claim is based on contract, tort (including negligence), strict liability, violation of any applicable deceptive trade practices act or similar law or any other legal or equitable principle, and each party releases the others and their respective affiliates from liability for any such damages. No party shall be entitled to rescission of this Agreement as a result of breach of any other party's representations, warranties, covenants or agreements, or for any other matter; *provided* that nothing in this <u>Section</u> <u>10.27</u> shall restrict the right of any party to exercise any right to terminate this Agreement pursuant to any other provision in this Agreement or any rights or remedies at law or in equity specifically relating to the exercise of any such termination right.

[*Signature Page to Follow*]

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IN WITNESS WHEREOF, the parties hereto have caused this Capacity Purchase Agreement to be duly executed and delivered as of the date and year first written above.

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| |
|:---|
| **UNITED AIRLINES, INC.** |
| By: |
| Name: |
| Title: |
| **[NAVY]** |
| By: |
| Name: |
| Title: |
| **[NAVY PARENT]** |
| By: |
| Name: |
| Title: |

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Signature Page to

Capacity Purchase Agreement1

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**<u>SCHEDULE 1</u>**

**Covered Aircraft<sup>1</sup>** 

**[NTD:** *Calendar dates to be added to "Scheduled Expiration Date" column; ESNs to be confirmed***]**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Covered**<br> **Aircraft**<br> **Number** | **Aircraft<br>Type** | **Tail<br>Number** | **ESN #1** | **ESN #2** | **Actual<br>In-<br>Service<br>Date** | **Scheduled Expiration Date** |
| 1 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [DOS] | [\*\*\*] |
| 2 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [DOS] | [\*\*\*] |
| 3 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [DOS] | [\*\*\*] |
| 4 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [DOS] | [\*\*\*] |
| 5 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [DOS] | [\*\*\*] |
| 6 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [DOS] | [\*\*\*] |
| 7 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [DOS] | [\*\*\*] |
| 8 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [DOS] | [\*\*\*] |
| 9 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [DOS] | [\*\*\*] |
| 10 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [DOS] | [\*\*\*] |
| 11 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [DOS] | [\*\*\*] |
| 12 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [DOS] | [\*\*\*] |
| 13 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [DOS] | [\*\*\*] |
| 14 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [DOS] | [\*\*\*] |
| 15 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [DOS] | [\*\*\*] |
| 16 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [DOS] | [\*\*\*] |
| 17 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [DOS] | [\*\*\*] |
| 18 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [DOS] | [\*\*\*] |
| 19 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [DOS] | [\*\*\*] |
| 20 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [DOS] | [\*\*\*] |
| 21 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [DOS] | [\*\*\*] |
| 22 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [DOS] | [\*\*\*] |
| 23 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [DOS] | [\*\*\*] |
| 24 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [DOS] | [\*\*\*] |
| 25 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [DOS] | [\*\*\*] |
| 26 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [DOS] | [\*\*\*] |
| 27 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [DOS] | [\*\*\*] |
| 28 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [DOS] | [\*\*\*] |
| 29 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [DOS] | [\*\*\*] |
| 30 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [DOS] | [\*\*\*] |
| 31 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [DOS] | [\*\*\*] |
| 32 | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [DOS] | [\*\*\*] |

---

<sup>1</sup> Parties to confirm whether these are the original engines or currently installed engines. Parties to confirm order of aircraft Expiration Dates.

Schedule 1-1

------

---

| | | | |
|:---|:---|:---|:---|
| 33 | [\*\*\*] | [DOS] | [\*\*\*] |
| 34 | [\*\*\*] | [DOS] | [\*\*\*] |
| 35 | [\*\*\*] | [DOS] | [\*\*\*] |
| 36 | [\*\*\*] | [DOS] | [\*\*\*] |
| 37 | [\*\*\*] | [DOS] | [\*\*\*] |
| 38 | [\*\*\*] | [DOS] | [\*\*\*] |
| 39 | [\*\*\*] | [DOS] | [\*\*\*] |
| 40 | [\*\*\*] | [DOS] | [\*\*\*] |
| 41 | [\*\*\*] | [DOS] | [\*\*\*] |
| 42 | [\*\*\*] | [DOS] | [\*\*\*] |
| 43 | [\*\*\*] | [DOS] | [\*\*\*] |
| 44 | [\*\*\*] | [DOS] | [\*\*\*] |
| 45 | [\*\*\*] | [DOS] | [\*\*\*] |
| 46 | [\*\*\*] | [DOS] | [\*\*\*] |
| 47 | [\*\*\*] | [DOS] | [\*\*\*] |
| 48 | [\*\*\*] | [DOS] | [\*\*\*] |
| 49 | [\*\*\*] | [DOS] | [\*\*\*] |
| 50 | [\*\*\*] | [DOS] | [\*\*\*] |
| 51 | [\*\*\*] | [DOS] | [\*\*\*] |
| 52 | [\*\*\*] | [DOS] | [\*\*\*] |
| 53 | [\*\*\*] | [DOS] | [\*\*\*] |
| 54 | [\*\*\*] | [DOS] | [\*\*\*] |
| 55 | [\*\*\*] | [DOS] | [\*\*\*] |
| 56 | [\*\*\*] | [DOS] | [\*\*\*] |
| 57 | [\*\*\*] | [DOS] | [\*\*\*] |
| 58 | [\*\*\*] | [DOS] | [\*\*\*] |
| 59 | [\*\*\*] | [DOS] | [\*\*\*] |
| 60 | [\*\*\*] | [DOS] | [\*\*\*] |

---

Schedule 1-2

------

**<u>SCHEDULE 2</u>**

**[\*\*\*]** 

[\*\*\*] [\*\*\*] [\*\*\*]

Schedule 2-1

------

**<u>SCHEDULE 3</u>**

**Compensation** 

[\*\*\*]

Schedule 3-1

------

**EXHIBIT A** 

**Definitions** 

"**<u>AAA</u>**" – means the American Arbitration Association or any successor organization thereto.

"**<u>Act of God</u>**" – means an unpreventable natural catastrophe resulting in material consequences, such, without limitation, as an earthquake, a tidal wave, a volcanic eruption, or a tornado (it being understood that [\*\*\*] shall not constitute an Act of God). For the avoidance of doubt, the parties agree that the term "Act of God" shall only be relevant in this Agreement specifically where it is used.

"**<u>Actual In-Service Date</u>**" – means, with respect to any specific Covered Aircraft, the date on which such aircraft first enters service under this Agreement.

"**<u>Agreement</u>**" – is defined in the preamble.

"**<u>Aircraft Heavy Checks</u>**" means the comprehensive airframe maintenance check, including ancillary aircraft maintenance tasks that require significant downtime of the aircraft and are generally required to be conducted on an aircraft at scheduled intervals to ensure airworthiness, safety, and operational reliability.

"**<u>ALPA Letter</u>**" – is defined in <u>Section</u> <u>4.20(b)</u>.

"**<u>Ancillary Agreements</u>**" – means all of the Covered Aircraft Leases entered into by Contractor and United in accordance with <u>Section</u> <u>10.18</u>, the Parent Guarantee, and each of the other agreements entered into by United and Contractor pursuant hereto, together with all amendments, exhibits, schedules and annexes thereto.

[\*\*\*]

"**<u>Applicable Airport</u>**" – means any airport into or from which Scheduled Flights are scheduled to arrive or depart.

"**<u>Approved Work Scope</u>**" – is defined in <u>Section</u> <u>2.04</u>.

[\*\*\*]

"**<u>Available Covered Aircraft</u>**" – means, as of any date of determination, a Covered Aircraft available to schedule for revenue service pursuant to <u>Section</u> <u>2.01(c)</u>, excluding the then-current number of Spare Aircraft and aircraft not available due to heavy maintenance, overhauls and modifications and the continuous maintenance line.

"**<u>Aviation Insurance</u>**" – means any aviation insurance pursuant to <u>Section</u> <u>6.01(a)</u>.

"**<u>Base Compensation</u>**" – is defined in <u>Schedule</u> <u>3</u>.

"**<u>Base Compensation Rates</u>**" – means the rates set forth on <u>Appendix 1</u> to <u>Schedule</u> <u>3</u> in respect of Base Compensation.

Exhibit A-1

------

"**<u>BIS</u>**" – means the U.S. Department of Commerce's Bureau of Industry and Security.

"**<u>Business Day</u>**" – means each Monday, Tuesday, Wednesday, Thursday and Friday unless such day shall be a day when financial institutions in New York, New York or Houston, Texas are authorized by law to close.

"**<u>Cause</u>**" – means any of the following, each of which (except for (vii)) constitutes a breach of this Agreement: (i) the suspension for [\*\*\*] or longer as a result of the revocation of Contractor's authority to operate as a scheduled airline, (ii) the ceasing of Contractor's operations as a scheduled airline, other than [\*\*\*]; (iii) the occurrence of a Labor Strike that shall have continued for [\*\*\*] or longer, (iv) a willful or intentional material breach of this Agreement by Contractor that [\*\*\*], (v) Contractor knowingly [\*\*\*], (vi) a breach of any of [\*\*\*], or (vii) [\*\*\*]

"**<u>CFO</u>**" – is defined in <u>Section</u> <u>3.04</u>.

"**<u>Change of Control</u>**" – means, with respect to Contractor or Parent (each of the foregoing being referred to in this definition as "Contractor"), [\*\*\*]:

(i) Contractor consolidates with, or merges with or into, a Prohibited Person or conveys, transfers, leases or
otherwise disposes of all or substantially all of its assets to a Prohibited Person, or a Prohibited Person consolidates with, or merges with or into, Contractor in any such event pursuant to a transaction in which the voting securities of
Contractor are converted into or exchanged for cash or securities of a Prohibited Person, except where the holders of voting securities of Contractor immediately prior to such transaction own not less than [\*\*\*] of the voting securities of the
surviving or transferee corporation immediately after such transaction, in each case other than any such transaction between Contractor on the one hand, and United and/or any of its Subsidiaries on the other;

(ii) the direct or indirect acquisition by any Person or "group" (as such term is used in
Section 13(d) of the Securities Exchange Act of 1934), resulting in such Person or group having a total beneficial ownership of more than [\*\*\*];

(iii) the liquidation or dissolution of Contractor in connection with which Contractor ceases operations as an air
carrier;

(iv) the sale, transfer or other disposition of all or substantially all of the airline assets of Contractor on a
consolidated basis directly or indirectly to a Prohibited Person or its affiliate, whether in a single transaction or a series of related transactions; or

(v) the execution of bona fide definitive agreements, the consummation of the transactions contemplated by which
would result in a transaction being described in any of the immediately preceding clauses (other than any agreement which expressly provides that the consummation of the transaction contemplated by such agreement is conditioned upon the prior
written consent of United under this Agreement).

[\*\*\*]

"**<u>Claim</u>**" – is defined in <u>Section</u> <u>10.08(a)</u>.

Exhibit A-2

------

"**<u>Compliance Dispute</u>**" includes (a) any threatened, pending or completed action, suit, proceeding, penalty, or alternative dispute resolution mechanism, whether civil, criminal, administrative, arbitrative, investigative or other, and whether made pursuant to federal, state or other law; or (b) any inquiry, hearing or investigation that Indemnitee determines might lead to the institution of any such action, suit, proceeding, penalty, or alternative dispute resolution mechanism.

"**<u>Contractor</u>**" – is defined in the preamble.

"**<u>Contractor Fleet</u>**" – means Embraer aircraft constituting all or part of the Covered Aircraft.

"**<u>Contractor Services</u>**" – means (i) Regional Airline Services and (ii) any other services provided by Contractor pursuant to this Agreement or any Ancillary Agreement.

"**<u>Contractor Unauthorized Obligation</u>**" – is defined as <u>Section</u> <u>7.05(a)</u>.

"**<u>Controllable Cancellation</u>**" – means a cancellation of a Scheduled Flight that is not an Uncontrollable Cancellation; *provided, however*, that, [\*\*\*].

"**<u>Controllable Completion Factor</u>**" – means, for any period of determination, the number of actual departures completed divided by the number of scheduled departures, excluding [\*\*\*].

"**<u>Controllable Delay</u>**" – means a delay categorized as Airport Operations, Flight Operations, Technical Operations, or Technology, which are within Contractor's control.

"**<u>Controllable On-Time Departure</u>**" – means a flight departing precisely on or before the scheduled departure time during such period.

"**<u>Controllable On-Time Departure Rate</u>**" – means, for any period of determination, the percentage of flights that are Controllable On-Time Departures; *provided* that [\*\*\*].

"**<u>Covered Aircraft</u>**" – means all aircraft listed on <u>Schedule</u> <u>1</u> (as such schedule is amended from time to time pursuant to the provisions of this Agreement), as adjusted from time to time for withdrawals pursuant to <u>Article</u> <u>VIII</u>.

"**<u>Covered Aircraft Lease</u>**" means, for each Covered Aircraft, a lease in substantially the form of <u>Exhibit C</u>.

"**<u>CPA Records</u>**" – is defined in <u>Section</u> <u>3.04</u>.

[\*\*\*]

"**<u>Cure Quantity</u>**" means [\*\*\*].

"**<u>DDTC</u>**" – means the U.S. Department of State's Directorate of Defense Trade Controls.

"**<u>DOT</u>**" – means the United States Department of Transportation.

"**<u>Drinking Water Requirements</u>**" – is defined in <u>Section</u> <u>4.14(h)</u>.

Exhibit A-3

------

"**<u>EBR Block Hour Rate</u>**" means, as applicable, [\*\*\*]; provided that, [\*\*\*].

"**<u>EBR Goal</u>**" – is defined in <u>Section</u> <u>10.20(b)</u>.

"**<u>EBR Performance</u>**" – is defined in <u>Section</u> <u>10.20(b)</u>.

"**<u>EBR Period</u>**" – is defined in <u>Section</u> <u>10.20(a)</u>.

"**<u>Effective Date</u>**" – means [\*\*\*].

"**<u>Embraer</u>**" – means Empresa Brasileira de Aeronautica S.A., a Brazilian corporation with its principal place of business in Sao Paulo, Brazil.

"**<u>Engine Line Replaceable Unit</u>**" means a component or part that can be removed from a CF34-8E Engine and replaced in a reasonable amount of time.

"**<u>Engine LLP</u>**" any engine component determined by the FAA to be a life-limited part at any time.

"**<u>Environmental Laws</u>**" means all applicable federal, state, local and foreign laws and regulations, guidance documents and policy statements of the Centers for Disease Control, the Occupational Health and Safety Administration, the Department of Transportation, and the Federal Aviation Administration, as well as any airport rules or any other applicable regulations, policies, or lease requirements relating to the prevention of pollution, protection of the environment or occupational health and safety, or remediation of environmental contamination, including laws, regulations and rules relating to emissions to the air, discharges to surface and subsurface soil and waters, regulation of potable or drinking water, the use, storage, release, disposal, transport or handling of Hazardous Materials, protection of endangered species, and aircraft noise, vibration, exhaust and over flight.

"**<u>FAA</u>**" – means the United States Federal Aviation Administration.

"**<u>Final Monthly Schedule</u>**" – means the final schedule of Scheduled Flights for the next calendar month delivered by United to Contractor pursuant to <u>Section</u> <u>2.01(c)</u>.

"**<u>Force Majeure</u>**" – is defined in <u>Section</u> <u>10.23</u>.

"**<u>Fuel Services</u>**" – means the act of putting fuel product into an aircraft and taking fuel product out of an aircraft, and any other incidental tasks as are customarily required from time to time in connection therewith; *provided* that the cost of aircraft fuel shall not be included as a cost of Fuel Services.

"**<u>GAAP</u>**" – means U.S. generally accepted accounting principles, consistently applied.

"**<u>GDP</u>**" – is defined in <u>Section</u> <u>2.08</u>.

Exhibit A-4

------

"**<u>Governmental Authority</u>**" – means any federal, state, local, maritime, municipal, or other government; any governmental, regulatory or administrative agency, commission, body, or other authority exercising or entitled to exercise any administrative, executive, judicial, legislative, regulatory or taxing authority or power; and any court or governmental tribunal having or asserting jurisdiction.

"**<u>Governmental Entity</u>**" – means any United States or foreign (i) federal, state, local, municipal or other government, (ii) governmental or quasi-governmental entity of any nature (including any governmental agency, branch, department, official, or entity and any court or other tribunal) or (iii) body exercising, or entitled to exercise any administrative, executive, judicial, legislative, police, regulatory, or taxing authority or power of any nature, including any arbitral tribunal.

"**<u>Ground Handling Services</u>**" – means the ground handling services performed in connection with regional and/or mainline airline services, which services will typically (but not necessarily) include the following: (i) gate check-in activities, (ii) passenger enplaning/deplaning activities, (iii) sky cap and wheelchair services, (iv) aircraft loading/unloading services, (v) passenger ticketing, (vi) jetbridge maintenance, (vii) janitorial services, (viii) deicing and glycol services, (ix) pushback, (x) airstarts, (xi) aircraft overnight cleaning, including lavatory service and water service, (xii) aircraft cleaning and lavatory service during the operating day, and (xiii) catering supplies and paper goods.

[\*\*\*]

"**<u>GSE</u>**" – is defined in <u>Section</u> <u>4.17(c)</u>.

"**<u>Hazardous Materials</u>**" – means any substances, whether solid, liquid or gaseous, which are listed and/or regulated as hazardous, toxic, or similar terminology under any Environmental Laws or which otherwise cause or pose threat or hazard to human health, safety or the environment, including petroleum and petroleum products.

"**<u>Hub Airport</u>**" – means, as of any date of determination, (i) [\*\*\*], (ii) [\*\*\*], (iii) [\*\*\*]and (iv) any other airport at which Contractor [\*\*\*].

"**<u>IATA</u>**" – is defined in <u>Section</u> <u>4.05</u>.

"**<u>Identification</u>**" – means the United Marks, the aircraft livery set forth on <u>Exhibit</u> <u>H</u>, the United flight code and other trade names, trademarks, service marks, graphics, logos, employee uniform designs, distinctive color schemes and other identification selected by United in its sole discretion for the Regional Airline Services to be provided by Contractor, whether or not such identification is copyrightable or otherwise protected or protectable under federal law.

[\*\*\*]

"**<u>Indemnified Party</u>**" – is defined in <u>Section</u> <u>7.03</u>.

"**<u>Indemnifying Party</u>**" – is defined in <u>Section</u> <u>7.03</u>.

"**<u>Indemnity Notice</u>**" – is defined in <u>Section</u> <u>7.03</u>

"**<u>Initial Proposed Monthly Schedule</u>**" – is defined in <u>Section</u> <u>2.01(c)(ii)</u>.

Exhibit A-5

------

"**<u>Invoiced Amount</u>**" – is defined in <u>Section</u> <u>3.05(a)</u>.

"**<u>IOSA</u>**" – is defined in <u>Section</u> <u>4.05</u>.

"**<u>Labor Strike</u>**" – means a labor dispute, as such term is defined in 29 U.S.C. Section 113(c) involving Contractor and some or all of its employees, which [\*\*\*].

"**<u>Law</u>**" – means any law, rule, regulation, code, ordinance and order of a Governmental Entity.

"**<u>Losses</u>**" – means any and all expenses, damages, losses, liabilities, judgments, fines, penalties (whether civil, criminal or other), amounts paid or payable in settlement, and all other charges paid or payable in connection with investigating, defending, being a witness in or participating in (including on appeal), or preparing to defend, be a witness or participate in, any Compliance Dispute.

"**<u>Manufacturer Program Benefit</u>**" – is defined in <u>Section</u> <u>10.26</u>.

"**<u>Manufacturer Programs</u>**" – is defined in <u>Section</u> <u>10.26</u>.

"**<u>Merger Agreement</u>**" – means that certain Agreement and Plan of Merger between Mesa Air Group and Republic Holdings, and each agreement entered into pursuant to any such agreement on or before the Effective Date.

"**<u>Mesa Air Group</u>**" – means Mesa Air Group, Inc., prior to the merger contemplated by the Transaction Agreements.

[\*\*\*]

"**<u>Net Monthly Payment Amount</u>**" – is defined in <u>Section</u> <u>3.05(b)</u>.

[\*\*\*].

"**<u>OFAC</u>**" – means the U.S. Department of Treasury's Office of Foreign Asset Control.

"**<u>Other United Express Carriers</u>**" shall mean all contractors providing regional airline services to United under a capacity purchase agreement (or similar agreement).

"**<u>Panel</u>**" – is defined in <u>Section</u> <u>10.08(d)</u>.

"**<u>Parent</u>**" – is defined in the preamble.

"**<u>Parent Guarantee</u>**" – means that certain guarantee delivered by [Republic Airways Holdings Inc.] concurrently with the execution and delivery of this Agreement, in the form provided by Republic Airways Holdings Inc. pursuant to the Republic CPA or such other form as Parent and United may agree.

[\*\*\*]

"**<u>Permitted Actions</u>**" – is defined in <u>Section</u> <u>4.13(a)</u>.

Exhibit A-6

------

"**<u>Person</u>**" – means an individual, partnership, limited liability company, corporation, joint stock company, trust, estate, joint venture, association or unincorporated organization, or any other form of business or professional entity.

[\*\*\*]

"**<u>Prior CPA</u>**" – means that certain Third Amended and Restated Capacity Purchase Agreement among United, Contractor and Parent, dated as of December 27, 2022 (as amended from time to time).

"**<u>Prohibited Person</u>**" – means [\*\*\*].

"**<u>Proposed Final Monthly Schedule</u>**" – is defined in <u>Section</u> <u>2.01(c)(iii)</u>.

"**<u>Reasonable Operating Constraints</u>**" – means the requirements set forth on <u>Exhibit</u> <u>R</u>.

"**<u>Regional Airline Services</u>**" – means the provisioning by Contractor to United of Scheduled Flights and related ferrying using the Covered Aircraft in accordance with this Agreement.

"**<u>Related Agreements</u>**" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Reciprocal Interline Agreement/Space Available Employee and Eligible Travel Agreement (United Contract No. 165980)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) United Express Positive Space Travel Agreement (United Contract No. 165979); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Emergency Response Agreement (United Contract No. 165981).

"**<u>Republic</u>**" – means Republic Airways Inc.

"**<u>Republic CPA</u>**" – means that certain Amended and Restated Capacity Purchase Agreement among Republic Airways Holdings Inc., United, and Republic dated as of January 25, 2023 (as amended from time to time).

"**<u>Republic Holdings</u>**" – means Republic Airways Holdings, Inc., prior to the merger contemplated by the Merger Agreement.

[\*\*\*]

"**<u>Sanctions</u>**" – means any restriction imposed by a Governmental Entity on trade, financial dealings or other transactions with any person, territory or country, including the restrictions administered by OFAC, BIS, and/or DDTC, to the extent such restriction is applicable to a Party to this Agreement; compliance with a Sanctions includes avoidance of acts or transactions that would expose a Party to potential designation as a target of a Sanctions or to punitive measures including fines or legal proceedings.

"**<u>Scheduled Flight</u>**" – is defined in <u>Section</u> <u>2.01(c)(i)</u>.

Exhibit A-7

------

"**<u>Spare Aircraft</u>**" – means any Covered Aircraft that is designated by Contractor as spare aircraft pursuant to <u>Section</u> <u>2.01(i)</u>, which may be used by Contractor to replace another aircraft in the operation of a Scheduled Flight that otherwise would be cancelled or as otherwise provided in <u>Section</u> <u>2.01(i)</u>.

"**<u>Spare Engine</u>**" – means any engine [\*\*\*], in each case to be [\*\*\*].

"**<u>Staffing Incapacity</u>**" – is defined in <u>Section</u> <u>2.01(c)(ii)</u>.

"**<u>Subject Schedule</u>**" – is defined in <u>Section</u> <u>2.01(f)</u>.

"**<u>Subsidiary</u>**" – means, as to any Person, (a) any corporation more than [\*\*\*] of whose stock of any class or classes having by the terms thereof ordinary voting power to elect a majority of the directors of such corporation (irrespective of whether or not at the time, any class or classes of such corporation shall have or might have voting power by reason of the happening of any contingency) is at the time owned by such Person directly or indirectly through Subsidiaries and (b) any partnership, association, joint venture, limited liability company, joint stock company or any other form of business or professional entity, in which such Person directly or indirectly through Subsidiaries has more than [\*\*\*] equity interest at any time.

[\*\*\*]

"**<u>System Flight Disruption</u>**" – means the failure by Contractor to complete at least [\*\*\*] of the aggregate Scheduled Flights in any [\*\*\*], or at least [\*\*\*] of the aggregate Scheduled Flights in any [\*\*\*] period, in each case [\*\*\*].

"**<u>Tarmac Delay Notice</u>**" – is defined in <u>Section</u> <u>10.17</u>.

"**<u>Term</u>**" – has the meaning set forth in <u>Section</u> <u>8.01(a)</u>, as earlier terminated pursuant to <u>Section</u> <u>8.02</u>, if applicable, and any Wind-Down Period.

"**<u>Terminal Facilities</u>**" – means all terminal facilities and spaces leased, subleased or otherwise retained or used by a party at an Applicable Airport, including all baggage makeup areas, inbound baggage areas and other terminal facilities.

"**<u>Termination Date</u>**" – means the date of early termination of this Agreement, as provided in a notice delivered from one party to the others pursuant to <u>Section</u> <u>8.02</u>, or, if no such early termination shall have occurred, the date of the end of the Term.

[\*\*\*]

"**<u>Transaction Agreements</u>**" – means this Agreement, [\*\*\*], and each agreement entered into pursuant to any such agreement on or before the Effective Date.

"**<u>TSA</u>**" – means the United States Transportation Security Administration.

Exhibit A-8

------

"**<u>Uncontrollable Cancellation</u>**" – means a cancellation of a Scheduled Flight that is solely weather-related, or ATC-related, or a United Cancelled Flight as described in the first paragraph of <u>Section</u> <u>2.01(c)</u>.

"**<u>Uncontrollable Delay</u>**" – means a delay of a Scheduled Flight for any reason that, if it resulted in the cancellation of such flight, would constitute an Uncontrollable Cancellation.

"**<u>United</u>**" – is defined in the preamble.

"**<u>United Cancelled Flight</u>**" – is defined in <u>Section</u> <u>2.01(c)(i).</u>

"**<u>United Cargo Program</u>**" – means United's "QuickPak" and "Petsafe" programs and/or any additional or replacement cargo program implemented by United from time to time, pursuant to which: (i) Contractor shall accept for carriage all baggage and shipments, whether from the ticket counter or cargo facility, that are permitted under United's DOT and FAA approved Dangerous Goods ("DG") management program, (ii) Contractor shall have access to United's required training records and DG procedures and/or forms as necessary to permit Contractor to integrate such procedures into its existing flight crew training and acceptance procedures, (iii) Contractor shall accept and maintain compliance with United's Hazardous Training Program for Scheduled Flights, and any training in connection therewith may be utilized to meet Contractor's requirements under 14 CFR 121.1001-1007, Subpart Z, and (iv) Contractor shall be permitted to transport its aircraft parts which are shipped as Company Material (COMAT) on Scheduled Flights, which shipments shall be tendered and/or accepted for shipment only by United's employees or agents who have satisfactorily completed United's required DG training and are authorized to perform such tendering and/or acceptance functions.

"**<u>United Directed Charter Flights</u>**" – is defined in <u>Section</u> <u>2.01(g)</u>.

"**<u>United Engines</u>**" – means, collectively, the engines associated with the Covered Aircraft listed on <u>Schedule 1</u> and the Spare Engines.

"**<u>United Fuel Efficiency Expenses</u>**" means any expenses incurred or reimbursable (subject to pre-approval) by United under the terms of any fuel efficiency program entered into pursuant to <u>Section</u> <u>4.11</u> for the development, implementation or management of such program by Contractor.

"**<u>United Maintenance</u>**" – is defined in <u>Section</u> <u>10.19</u>.

"**<u>United Marks</u>**" – is defined in <u>Exhibit</u> <u>G</u>.

"**<u>United's Parent</u>**" – is defined in <u>Section</u> <u>7.01</u>.

[\*\*\*]

"**<u>United Unauthorized Obligation</u>**" – is defined in <u>Section</u> <u>7.05(b)</u>.

Exhibit A-9

------

"**<u>Wind-Down Period</u>**" – means the period after the Termination Date and until the later to occur of (x) the time when all Covered Aircraft have been withdrawn from the capacity purchase provisions of this Agreement and (y) the time when the last Covered Aircraft subject to a Covered Aircraft Lease has been returned to United (or its designee).

"**<u>Wind-Down Schedule</u>**" – means the schedule, determined as provided in <u>Article</u> <u>VIII</u> of this Agreement, for Covered Aircraft to be either (x) in the case of aircraft not subject to a Covered Aircraft Lease, withdrawn from the capacity purchase provisions of this Agreement or (y) in the case of aircraft subject to a Covered Aircraft Lease, returned to United (or its designee).

Exhibit A-10

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**EXHIBIT B** 

[\*\*\*]

[\*\*\*]

Exhibit B-1

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**EXHIBIT C** 

**Covered Aircraft Leases** 

[*To be inserted*]

Exhibit C-1

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**EXHIBIT D** 

**Terms of Codeshare Arrangements** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. *<u>Contractor's use of UA code</u>*. During the Term of the Agreement, United shall place its designator code, "UA", on all Scheduled Flights operated by Contractor. United may suspend the display of its code on flights operated by Contractor if Contractor is in breach of any of its safety-related obligations, or material breach of any of its operational obligations, under the Agreement during the period that such breach continues. All Contractor operated flights that display the UA code are referred to herein as "UA\* Flights".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. *<u>Contractor's display of UA code</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All UA\* Flights will be included in the schedule, availability and fare displays of all computerized
reservations systems in which United and Contractor participate, the Official Airline Guide (to the extent agreed upon) and United's and Contractor's internal reservation systems, under the UA code, to the extent possible. United and
Contractor will take the appropriate measures necessary to ensure the display of the schedules of all UA\* Flights in accordance with the preceding sentence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) United and Contractor will disclose and identify the UA\* Flights to the public as actually being a flight of
and operated by Contractor, in at least the following ways:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a symbol will be used in timetables and computer reservation systems indicating that UA\* Flights are actually
operated by Contractor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to the extent reasonable, messages on airport flight information displays will identify Contractor as the
operator of flights shown as UA\* Flights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) United and Contractor advertising concerning UA\* Flights and United and Contractor reservationists will
disclose Contractor as the operator of each UA\* Flight; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) in any other manner prescribed by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. *<u>Terms and Conditions of Carriage</u>*. In all cases the contract of carriage between a passenger and a carrier will be that of the carrier whose code is designated on the ticket. United and Contractor shall each cooperate with the other in the exchange of information necessary to conform each carrier's contract of carriage to reflect service offered by the other carrier.

Exhibit D-1

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. *<u>Notification of irregularities in operations</u>*. Contractor shall promptly notify United of all irregularities involving a UA\* Flight which result in any material damage to persons or property as soon as such information is available and shall furnish to United as much detail as practicable. For purposes of this section, notification shall be made as follows:

United Airlines Dispatch

233 South Wacker Drive, 27th Floor

Chicago, IL 60606

Attention: Operations Director

[\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. *<u>Code Sharing License</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Grant of License</u>* . Subject to the terms and conditions of the Agreement, United hereby grants to
Contractor a nonexclusive, nontransferable, revocable license to use the UA\* designator code on all of its flights operated as a UA\* Flight.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Control of UA\* Flights</u>* . Subject to the terms and conditions of the Agreement, Contractor shall
have sole responsibility for and control over, and United shall have no responsibility for, control over or obligations or duties with respect to, each and every aspect of Contractor's operation of UA\* Flights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Display of other codes</u>. During the Term of the Agreement, United shall have the exclusive right to determine which other airlines ("**<u>Alliance Airlines</u>**"), if any, may place their two letter designator codes on flights operated by Contractor with Covered Aircraft and to enter into agreements with such Alliance Airlines with respect thereto. Contractor will cooperate with United and any Alliance Airlines in the formation of a code share relationship between Contractor and the Alliance Airlines and enter into reasonably acceptable agreements and make the necessary governmental filings, as requested by United, with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Our United Customer Commitment</u>. During the period that United places its designator code on flights operated by Contractor, Contractor will adopt and follow plans and policies comparable (to the extent applicable and permitted by law and subject to operational constraints) to "Our United Customer Commitment" as presently existing and hereafter modified. Contractor acknowledges that it has received a copy of United's presently existing "Our United Customer Commitment". United will provide Contractor with any modifications thereto promptly after they are made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Network Operations Center (NOC) Playbook</u>. During the period that United places its designator code on flights operated by Contractor, Contractor will work with the United network operations center to incorporate United's policies and procedures into Contractor's business policies to drive operational performance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>International Routes to and from Mexico</u>. Subject to the availability of the relevant traffic rights under that certain Air Transport Agreement between the Government of the United States of America and the Government of the United Mexican States, executed December 18, 2015 (as the same may be amended, restated, supplemented or replaced after the Effective Date), at any time from time to time, if United directs Contractor to operate one or more specific international routes into or out of Mexico, then United and Contractor shall promptly execute a supplemental agreement designating such routes to be operated by Contractor on behalf of United.

Exhibit D-2

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**EXHIBIT E** 

**Non-Revenue Pass Travel** 

United will have the sole right to design, implement and oversee a pass travel program for the Regional Airline Services.

Exhibit E-1

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**EXHIBIT F** 

**United Directed Charter Flight Operations** 

Subject to the provisions of <u>Section</u> <u>2.01</u> establishing, without limitation, that United shall, in its sole discretion, establish all schedules for United Directed Charter Flights, including determining the city-pairs served, frequencies, utilization and timing of scheduled arrivals and departures, and shall, in its sole discretion, make all determinations regarding the establishment and scheduling of any United Directed Charter Flights, and that Contractor shall operate such United Directed Charter Flights pursuant to the terms of the Agreement, each of Contractor and United agrees to the following:

1. United agrees to schedule United Directed Charter Flights using only aircraft that are available to schedule,
including remain overnight ("  **<u>RON</u>**") aircraft that are not otherwise in maintenance.

2. United Directed Charter Flights shall be performed at the rates as set forth on <u>Appendix 1</u> to <u>Schedule</u> <u>3</u>; provided that the parties, acting in good faith, shall determine an increase, if any, in such rates to compensate Contractor for any reasonably documented excess costs incurred by Contractor as a result of such
United Directed Charter Flights and not otherwise contemplated by the rates set forth on <u>Schedule</u> <u>3</u>; provided further that (x) United shall pay Contractor for any reasonably documented incremental costs incurred by
Contractor as a result of a termination or cancellation directed by United of a United Directed Charter Flight occurring after the delivery of the Final Monthly Schedule, and (y) Contractor shall use commercially reasonable efforts to minimize
the incremental costs incurred by Contractor as a result of such cancellation.

3. Contractor agrees to have its System Operations Control ("  **<u>SOC</u>**") employees work directly
with United to successfully operate United Directed Charter Flights.

4. Contractor's SOC will ensure Charter Briefings provided by United are distributed to and reviewed by its
crews before the operation of any United Directed Charter Flight.

5. Contractor agrees to provide United's Charter Operations Planner aircraft routing and assigned crew
information (including contact information for the crew) [\*\*\*] before the start of any United Directed Charter Flight.

6. Contractor agrees to withhold United Directed Charter Flights from its normal monthly crew bid, in order to
minimize re-crewing costs in the event that United should need to alter the schedule of a United Directed Charter Flight or cancel the United Directed Charter Flight altogether.

7. Contractor's SOC will remain in constant contact with United's Charter Operations Planners while
conducting any United Directed Charter Flight on behalf of United, advising them of weather, maintenance issues, and other factors that could impact, delay, or cause the cancellation of any United Directed Charter Flight.

8. United personnel will be the sole contact with the charterer and will advise the customer of any delay or
cancellation to a United Directed Charter Flight.

Exhibit F-1

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9. Contractor will provide operations engineering support capable of providing United Directed Charter Flight
approval for new airports and routes within [\*\*\*] of the initial request from United.

Exhibit F-2

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**EXHIBIT G** 

**Use of United Marks and Other Identification** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. *<u>Grant</u>*. United hereby grants to Contractor, and Contractor accepts, a non- exclusive, personal, non-transferable, royalty-free right and license to adopt and use the United Marks and other Identification in connection with the rendering by Contractor of Regional Airline Services, subject to the conditions and restrictions set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. *<u>Ownership of the United Marks and Other Identification</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) United shall at all times remain the owner of the United Marks and the other Identification and any
registrations thereof and Contractor's use of any United Marks or other Identification shall clearly identify United as the owner of such marks (to the extent practical) to protect United's interest therein. All use by Contractor of the
United Marks and the other Identification shall inure to the benefit of United. Nothing in this Agreement shall give Contractor any right, title, or interest in the United Marks or the other Identification other than right to use the United Marks
and the other Identification in accordance with the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Contractor acknowledges United's ownership of the United Marks and the other Identification and further
acknowledges the validity of the Identification. Contractor agrees that it will not do anything that in any way infringes or abridges United's rights in the Identification or directly or indirectly challenges the validity of the Identification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. *<u>Use of the United Marks and the Other Identification</u>* .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Contractor shall use the United Marks and other Identification only as authorized herein by United and in
accordance with such standards of quality as United may establish.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Contractor shall use the Identification on all Covered Aircraft (other than the Spare Aircraft) and all
facilities, equipment and printed materials used in connection with the Regional Airline Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Contractor shall not use the Identification for any purpose other than as set forth in this <u>Exhibit</u> <u>G</u>, and specifically shall have no right to use the United Marks or other Identification on or in any aircraft other than Covered Aircraft or in connection with any other operations of Contractor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) United shall have exclusive control over the use and display of the United Marks and other Identification, and
may change the Identification at any time and from time to time (including by adding or deleting marks from the list specified in this <u>Exhibit</u> <u>G</u>), in which case Contractor shall as soon as practicable make such changes as
are requested by United to utilize the new Identification; provided that United shall either pay directly the reasonable costs of making such changes to the Identification or shall promptly reimburse Contractor for its reasonable expenses incurred
in making such changes.

Exhibit G-1

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Nothing shall abridge United's right to use and/or to license the Identification, and United reserves the
right to the continued use of all the Identification, to license such other uses of the Identification and to enter into such agreements with other carriers providing for arrangements similar to those with Contractor as United may desire. No term or
provision of this Agreement shall be construed to preclude the use of the United Marks or other Identification by other persons or for similar or other uses not covered by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. *<u>United-Controlled Litigation</u>*. United at its sole expense shall take all steps that in its opinion and sole discretion are necessary and desirable to protect the United Marks and other Identification against any infringement or dilution. Contractor agrees to cooperate fully with United in the defense and protection of the United Marks and other Identification as reasonably requested by United. Contractor shall report to United any infringement or imitation of, or challenge to, the United Marks and other Identification, immediately upon becoming aware of same. Contractor shall not be entitled to bring, or compel United to bring, an action or other legal proceedings on account of any infringements, imitations, or challenges to any element of the United Marks and other Identification without the written agreement of United. United shall not be liable for any loss, cost, damage or expense suffered or incurred by Contractor because of the failure or inability to take or consent to the taking of any action on account of any such infringements, imitations or challenges or because of the failure of any such action or proceeding. If United shall commence any action or legal proceeding on account of such infringements, imitations or challenges, Contractor agrees to provide all reasonable assistance requested by United in preparing for and prosecuting the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. *<u>Revocation of License</u>*. United shall have the right to cancel the license provided herein in whole or in part at any time and for any reason, in which event all terminated rights to use the Identification provided Contractor herein shall revert to United and the United Marks and the other Identification shall not be used by Contractor in connection with any operations of Contractor. The following provisions shall apply to the termination of the license provided herein: (i) in the case of a termination of the license to use the globe element of the United Marks, Contractor shall cease all use of the globe element of the United Marks with respect to each Covered Aircraft within [\*\*\*] of such aircraft being withdrawn from the capacity purchase provisions of the Agreement, and shall cease all use of the globe element of the United Marks in all other respects within [\*\*\*] of last Covered Aircraft being returned to United (or its designee) (unless this Agreement is terminated for Cause or pursuant to <u>Section</u> <u>8.02(a)</u> or the first sentence of <u>Section</u> <u>8.02(b)</u>, in which case Contractor shall cease all use of the globe element of the United Marks within [\*\*\*] of the earlier of; (i) the Termination Date or (ii) the final day of any such Wind-Down Period); (ii) in the case of a termination of the license to use any other United Marks and Identification, Contractor shall cease all use of such other United Marks and Identification within [\*\*\*] of the termination of the license for such other United Marks and other Identification. Within such specified period, Contractor shall cease all use of such other United Marks and Identification, and shall change its facilities, equipment, uniforms and supplies to avoid any customer confusion or the appearance that Contractor is continuing to have an operating relationship with United, and Contractor shall not thereafter make use of any word, words, term, design, name or mark confusingly similar to the United Marks or other Identification or take actions that otherwise may infringe the United Marks and the other Identification.

Exhibit G-2

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. *<u>Assignment</u>*. The non-exclusive license granted by United to Contractor is personal to Contractor and may not be assigned, sub-licensed or transferred by Contractor in any manner without the written consent of a duly authorized representative of United.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. *<u>United Marks</u>*. The United Marks are as follows:

UNITED EXPRESS'S LOGO (DESIGN) IN COLOR

![LOGO](g944307g0812075928280.jpg)

UNITED EXPRESS'S LOGO (DESIGN) IN BLACK & WHITE

![LOGO](g944307g0812075928626.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. *<u>Aircraft Livery</u>*. The aircraft livery shall be as follows, unless otherwise directed by United: The colors blue, gray and white are used on the aircraft. The color white appears on the top approximate 2/3 of the body of the aircraft; the color gray appears below the color white on the remainder of the bottom portion of the body of the aircraft; the color blue is used as a stripe or band dividing the white and gray colors. The tail of the aircraft is primarily blue with the globe logo design in a blue and white combination and the trade name is written in blue and gray on the white portion of the body of the aircraft. The engines of the aircraft are blue. Interior décor shall be as directed by United. Except as required by law or regulation, there shall be no Contractor Marks displayed on the aircraft exterior or in the aircraft interior, including any marks on any backwall or cabin separator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. *<u>Survival</u>*. The provisions of this <u>Exhibit</u> <u>G</u> shall survive the termination of this Agreement for a period of [\*\*\*].

Exhibit G-3

------

**EXHIBIT H** 

**Use of Contractor Marks** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. *<u>Grant</u>*. Contractor hereby grants to United, and United accepts, a non-exclusive, personal, non-transferable, royalty-free right and license to adopt and use the Contractor Marks (as defined below) in connection with United's entering into this Agreement, subject to the conditions and restrictions set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. *<u>Ownership of the Contractor Marks</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Contractor shall at all times remain the owner of the Contractor Marks and any registrations thereof and
United's use of any Contractor Marks shall clearly identify Contractor as the owner of such marks (to the extent practical) to protect Contractor's interest therein. All use by United of the Contractor Marks shall inure to the benefit of
Contractor. Nothing in this Agreement shall give United any right, title, or interest in the Contractor Marks other than right to use the Contractor Marks in accordance with the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) United acknowledges Contractor's ownership of the Contractor Marks and further acknowledges the validity
of the Contractor Marks. United agrees that it will not do anything that in any way infringes or abridges Contractor's rights in the Contractor Marks or directly or indirectly challenges the validity of the Contractor Marks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. *<u>Use of the Contractor Marks</u>*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) United shall use the Contractor Marks only as authorized herein by Contractor and in accordance with such
standards of quality as Contractor may establish.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) United shall use the Contractor Marks as necessary or appropriate in United's sole discretion in
connection with the Regional Airline Services, including the sale or disposition by United of the seat inventory of the Scheduled Flights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) United shall not use the Contractor Marks for any purpose other than as set forth in this <u>Exhibit</u> <u>H</u>, and specifically shall have no right to use the Contractor Marks in connection with any other operations of United.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Contractor may change the Contractor Marks at any time and from time to time (including by adding or deleting
marks from the list specified in this <u>Exhibit</u> <u>H</u>), in which case United shall as soon as practicable make such changes as are requested by Contractor to utilize the new Contractor Marks; provided that Contractor shall either
pay directly the reasonable costs of making such changes to the Contractor Marks or shall promptly reimburse United for its reasonable expenses incurred in making such changes.

Exhibit H-1

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Nothing shall abridge Contractor's right to use and/or to license the Contractor Marks, and Contractor
reserves the right to the continued use of all the Contractor Marks, to license such other uses of the Contractor Marks and to enter into such agreements with other carriers providing for arrangements similar to those with United as Contractor may
desire. No term or provision of this Agreement shall be construed to preclude the use of the Contractor Marks by other persons or for other similar uses not covered by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. *<u>Contractor-Controlled Litigation</u>*. Contractor at its sole expense shall take all steps that in its opinion and sole discretion are necessary and desirable to protect the Contractor Marks against any infringement or dilution. United agrees to cooperate fully with Contractor in the defense and protection of the Contractor Marks as reasonably requested by Contractor. United shall report to Contractor any infringement or imitation of, or challenge to, the Contractor Marks, immediately upon becoming aware of same. United shall not be entitled to bring, or compel Contractor to bring, an action or other legal proceedings on account of any infringements, imitations, or challenges to any element of the Contractor Marks without the written agreement of Contractor. Contractor shall not be liable for any loss, cost, damage or expense suffered or incurred by United because of the failure or inability to take or consent to the taking of any action on account of any such infringements, imitations or challenges or because of the failure of any such action or proceeding. If Contractor shall commence any action or legal proceeding on account of such infringements, imitations or challenges, United agrees to provide all reasonable assistance requested by Contractor in preparing for and prosecuting the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. *<u>Revocation of License</u>*. Contractor shall have the right to cancel the license provided herein in whole or in part at any time and for any reason, in which event all terminated rights to use the Contractor Marks provided United herein shall revert to Contractor and the Contractor Marks shall not be used by United in connection with any operations of United. United shall cease all use of the Contractor Marks in all respects upon the last Covered Aircraft being delivered to United (or its designee). United shall not thereafter make use of any word, words, term, design, name or mark confusingly similar to the Contractor Marks or take actions that otherwise may infringe the Contractor Marks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. *<u>Assignment</u>*. The non-exclusive license granted by Contractor to United is personal to United and may not be assigned, sub-licensed or transferred by United in any manner without the written consent of a duly authorized representative of Contractor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. *<u>Contractor Marks</u>.* The Contractor Marks are as follows:

[*to be inserted*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. *<u>Survival</u>*. The provisions of this <u>Exhibit</u> <u>H</u> shall survive the termination of this Agreement for a period of [\*\*\*].

Exhibit H-2

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**EXHIBIT I** 

**Catering Standards** 

**<u>INFLIGHT PRODUCT SALES PROGRAM</u>**

United will market a portfolio of inflight products for purchase on United Express flights which includes [\*\*\*], [\*\*\*], [\*\*\*], food, or other product offerings. Contractor will administer the program related to such in-flight sales (the "**<u>Inflight Product Sales Program</u>**") as United's representative following all policies and procedures of United. The initial policies and procedures established by United for the sale of products onboard Contractor's flights under the Agreement with United are set forth below. United reserves the right to change the product offerings, policies and procedures associated with the Inflight Product Sales Program at any time and in its sole discretion.

**<u>Station Services</u>**

• United, or United's catering agent, will provide catering services as directed by United.

• United or its catering agent will provide supplies, food, [\*\*\*], [\*\*\*] beverage, and other product uplift as
necessary and will remove, store and re-board perishable supply and beverage items on Remain Over Night (RON)/originating flights at airports designated by United as catering airports.

• In respect of all catering items (including the Inflight Product Sales Programs), Contractor will coordinate and
communicate with United or United's catering agent regarding all flight activity, cancellations and irregular operations providing necessary information in a timely manner.

**<u>Onboard Services</u>**

• United has right to determine meal/beverage and other product offering service parameters and scheduling for
Scheduled Flights.

• United has right to conduct onboard service audits on Scheduled Flights to ensure service standards are being
met.

• Contractor shall ensure that all flight attendants providing Regional Airline Services are trained on meal and
beverage service procedures, including liquor and duty-free sales and cash handling, and will collect all on-board revenue for food, liquor, duty-free sales and/or any other products for sale.

• Contractor will provide, at Contractor's cost and expense, certain initial and replacement galley service
ship's equipment to operate, such as hot jugs, coffee makers and trash bins.

• United will provide the initial shipset of United CATLAS model galley carts and associated carrier boxes, drawers
and inserts. United will provide all supplemental United CATLAS galley carts, carrier boxes, drawers and inserts as well as replacements sufficient to operate cart exchange operations. All galley carts, carrier boxes, drawers and inserts used for
the United inflight services will be maintained by United per United's maintenance program.

Exhibit I-1

------

• United will provide all liveried catering items, including cups, napkins, etc. as well as all products in the
Inflight Product Sales Program.

**<u>TECHNOLOGY</u>**

• Contractor will provide each of their Flight Attendants a handheld device on a 1-to-1 basis (status quo).

• All costs related to the devices including maintenance/lost/stolen/insurance/etc. are all the sole responsibly of
Contractor.

• United will provide training materials for United Applications to contractor. Contractor should ensure Flight
Attendants receive such materials.

• Contractor agrees to work with United's technology team to load United's applications in timely
fashion.

• If Contractor decides to replace existing devices, Contractor agrees to meet and discuss with United on
replacement solutions and also provide United with sufficient time to coordinate application development changes and IT security checks.

**<u>PRODUCT LOSS AND PILFERAGE</u>**

United will establish procedures aimed at limiting product loss. At a minimum, it is required that Contractor's flight attendants record opening and closing inventories of each product to be sold onboard, accounting for all sales and complimentary items distributed.

Seals may be required to prevent tampering with product inventories and to deter pilferage. United will monitor all inventories and reserves the right to charge Contractor for identified loss (including breakage and other damage) and pilferage on a cost (non-mark-up) basis determined monthly. Any discrepancies in inventories, seal numbers recorded, or excessive complimentary activity for any product sold must be reported at the hub for use in pilferage investigations by United. Contractor's failure to provide documentation as reasonably requested by United or its representatives will result in Contractor being charged for pilferage as reasonably determined by United on a cost basis. United reserves the right to set off the value of the loss and/or pilferage on a cost (non-mark-up) basis, by taking a credit of such loss and/or pilferage pursuant to the procedures set forth in <u>Section</u> <u>10.16</u> of the Agreement. All reasonable product loss and pilferage procedures established by United must be adhered to by Contractor.

United may, at any time during normal operating hours inspect, monitor, or audit Contractor's administration of the Inflight Product Sales Program described in this Appendix or in other policies and procedures, in order to verify that Contractor is in compliance, in all material respects, with United's requirements for the Inflight Product Sales Program. Contractor will work with United to ensure reasonably appropriate controls exist designed to comply with United's requirements and will ensure corrective actions are in place as necessary.

Exhibit I-2

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**<u>LIQUOR, BEER AND WINE PROGRAM</u>**

The Alcoholic Beverage Products offering will be determined by United and provided for by United in the liquor kit supplied to each aircraft. Except as prohibited by law or otherwise agreed by United and Contractor due to the various applicable liquor license laws and regulations, the Alcoholic Beverage Products will be purchased by United prior to being placed onboard Contractor's aircraft and sold onboard all United Express flights designated by United.

Once onboard Contractor's aircraft, liquor drawers, bags or other liquor containment mechanisms used by Contractor, as determined by Contractor, are considered a part of ship's equipment and will be used for the distribution of United's inflight products.

Contractor shall not serve any Alcoholic Beverage Product(s) on the ground without United's consent. Contractor will obtain and maintain liquor licenses in the states where they board and/or unload any Alcoholic Beverage Product. Unless otherwise agreed by the parties, Contractor will not [\*\*\*].

**<u>VIRGINIA ALCOHOLIC BEVERAGE HANDLING PROCEDURES</u>**

Contractor will comply with Virginia's liquor purchase procedures. In Virginia, [\*\*\*].

**<u>FOOD AND OTHER PRODUCTS</u>**

United reserves the right to introduce other products for sale onboard including food offerings. Food offerings may come in a variety of packaging options and will be integrated into the entire portfolio with regards to specifications and procedures established by United.

Provisioning of product offering will follow United's procedures at distribution points.

Exhibit I-3

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**EXHIBIT J** 

**Aircraft Cleanliness and Refurbishment Standards** 

**<u>AIRCRAFT CLEANLINESS STANDARDS</u>**

United requires Contractor to adhere to certain aircraft interior deep clean standards provided by United to Contractor from time to time (the <u>"</u>**<u>Deep Clean Scope of Work</u>**") consistent with and not materially more burdensome than what United requires of its other E175 regional partners. With the exception of certain heavy cleaning events which will occur during heavy maintenance and shall be incorporated into the C-check schedule, the elements of the Deep Clean Scope of Work shall be performed by Contractor according to a work schedule set forth by United but no less than every [\*\*\*]. The Deep Clean Scope of Work comprises the minimum required interior deep clean work required of Contractor and identifies the items in scope for all interior aircraft cleaning work over and above routine RON cleaning standards, including carpets, seats, cabin interior, lavatories etc. Contractor will audit the deep clean provider and provide monthly written results to United in a format determined by United. United retains the right to audit Contractor's compliance with United's deep clean standards and the performance of the deep clean provider, as well as any of the aircraft upon the completion of the Deep Clean Scope of Work. Items identified through United's audit will be corrected by Contractor within [\*\*\*] of United's written notification or any other mutually agreed upon date. United will charge Contractor [\*\*\*] for each day that the Deep Clean Scope of Work standards are not corrected after the later of such five day correction period or such other mutually agreed upon date. When United is to perform normal RON cleaning on behalf of Contractor, United is responsible for meeting the applicable cleaning standards set forth in this Exhibit J.

At the end of each flight, the flight attendants will ensure that the aircraft is left in a clean condition. If this is not accomplished by other personnel at the station, then the flight attendants are responsible for removal of all trash, including all floors, galley trash and lavatory trash. Flight attendants will comply with all appropriate station protocol for garbage disposal.

**United Express Deep Clean Minimum Specifications** 

The minimum standards outlined here serve as an auditable baseline standardizing this clean type. Contractor is responsible for the Deep Clean programs and cycle times and may choose to have standards above and beyond those listed in this section. Any audits performed on United Express Deep Clean missions will be based on these minimum standards.

Deep Cleans are the most intense and thorough clean missions, including complete provisioning change out of linens, headsets, etc., with new or refurbished product. Scheduled at approved intervals, Deep Clean events are performed in designated stations during the aircraft's overnight layover by authorized personnel that receive scheduled available aircraft.

**Interior Cabin Security Search** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Perform aircraft security check as contained in the AOSSP or published security directives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Security searches are integrated with United's cleaning standard operating procedures for each clean
mission, including deep cleans. As a result, security checks must be performed as outlined in the Aircraft Appearance Cabin Interior Search procedures during the course of accomplishing the cleaning tasks outlined hereinafter.

Exhibit J-1

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**Flight Deck** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. While it is true all aspects of cleaning require safety awareness, cleaning personnel must give special
attention to safety during the flight deck cleaning process, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Notify maintenance immediately should you accidentally move or trip a switch/circuit breaker.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Do not spray liquids on instruments or dashboards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Do not dampen brush or cloth excessively as water may come in contact with electrical equipment and cause
injury to personnel and damage to the aircraft.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Dip sponge or cleaning rag into cleaning solution and scrub surfaces until soil loosens. Repeat procedure on
stubborn stains.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Avoid getting surfaces excessively wet.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Dry all surfaces.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Remove trash and debris from flight deck.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Remove and replace trash bag.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Vacuum clean the following areas:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Seats, seat pockets

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Creases around and between seat cushion areas

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Floor, seat tracks, seat assemblies and vent grills

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Clean and remove soil from the following areas:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Ceiling panels and vents

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Sidewall panels

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Floor, seat tracks, seat assemblies and vent grills

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Front, back and side of flight deck door

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Damp wipe and dry the following areas assuring a streak free appearance:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Glare-shield; sun-visors

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Windshield / side windows interior (Sani-Coms replacement)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Clean and dry the following areas:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Recessed areas instrument panels; center console

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Control yokes and columns

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Base plate and nose gear steering wheel

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Captains and 1st Officers rudder pedals

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Captains, 1st Officers, 1st Observer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Cup / drink holders

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. Log compartments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. Engineers table

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Crew coatroom

Exhibit J-2

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**Cabin** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Remove all trash from seats, seat pockets, floor, overheads, shelves, closets and overhead bins.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Inspect seat covers. Report covers with any size stain or tear into local maintenance for replacement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Brush crumbs off seats. Seat cushions to be left in the upright position, exposing the seat frame for pre-departure security inspection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Pull up seat cushions; vacuum all sides to remove crumbs, lint, etc. Place in overhead bin.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Vacuum / brush seat pan free of crumbs and debris.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Scrub seat frames including all exterior surfaces of seat panels, armrests, luggage restraints, seat legs,
connect points, seat control panels, seat shroud and gap between seats. Rinse, dry.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Return seat cushions to original position.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Place armrest in DOWN position and cross seatbelts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. Vacuum and scrub seat tracks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. Scrub seat tracks covers. Rinse, dry and reinstall.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. Spray cleaning solution on the cloth and clean emergency aisle path track lighting. Do not spray solution
directly on the path lighting system. Follow by wiping the cover with a clean cloth dampened in clean rinse water and dry.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. Vacuum and scrub stowage wells, including tray table wells.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. Scrub tray tables including latch area on seatback, edging, hinges, mating surfaces, bridges and arms. Rinse
and dry before stowing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. Scrub center seat console areas; side stowage coves. Rinse, dry.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. Remove trash and seat back pocket materials. Vacuum seat pockets. Tuck any loose seat cover flaps into the seat
shroud.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. Scrub clean passenger service units, reading lights, call button, air vents and panel. Rinse, dry.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. Scrub clean sidewalls and sidewall air vents. Rinse, dry.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. Clean and dry windows, window shades, and window shade tracks with approved cleaner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. Scrub clean flight attendant jump seat area(s); including the call station, phone entry walls, ceiling,
compartments and floors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. Provision and organize seat pockets with literature and supplies. Discard and replace worn or dog-eared literature and/or when missing. Replace Hemispheres/Play guides with new after the 10<sup>th</sup> day of the month.

1 - SAFETY INFORMATION CARD – As required by Contractor 2—MAGAZINE(S) – As required by Contractor

3 - AIR SICK BAG – As required by Contractor

Replace soiled blankets with clean ones and place neatly on top as designated in the provisioning chart (UF only on 2-cabin AC).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. Vacuum air vent covers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. Vacuum sidewall upper and lower air vents and section dividers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. Overhead Bins, Ceilings, Closets, Bassinets, Storage Areas

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Remove trash from overhead bins, storage areas, closets.

Exhibit J-3

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Scrub clean inside of overhead bins, all exposed surfaces of overhead bin doors, latches, hinges and inner rim
that runs perimeter of bin. Rinse, dry.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Scrub ceilings, centerline ceiling vents, curtain class dividers. Rinse, dry.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Vacuum storage areas, closets to remove dust, debris.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Scrub clean inside of storage areas, closets, exterior doors and latches. Rinse, dry.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Onboard wheelchair compartment, remove wheelchair, wipe clean and dry (when applicable).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. Vacuum inside onboard wheelchair compartment. Scrub interior/exterior door and latches. Rinse, dry (when
applicable).

**Galley** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Remove and dispose of all trash.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Clean counters, storage doors and galley extension tables.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Spot wipe walls, ceiling and doors to remove fingerprints, scuff marks, spills, graffiti, etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Scrub interior and exterior of storage space. Pay particular attention to all protrusions, corners, cracks,
crevices, sliding tracks, hinges, latches, control panel, etc. Rinse with clean water and dry with clean cloth.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. If applicable, empty all ice and water drawers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Vacuum and damp mop the floor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Thoroughly scrub, wash, rinse and dry the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Serving carts and folding meal carts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Interior and exterior of trash compartments and trash chutes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. All light fixtures and cover lights and air vents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Thoroughly scrub (eraser pad), wash, rinse and dry the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. Wipe clean coffee makers, hot plates and spigots when applicable. (Coffee pots to be handled and cleaned by
catering).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Note: Interior of coffeepots is not to be cleaned by cleaning personnel, only by catering staff.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. Cleaning personnel to clean interior and exterior of all compartments (pay particular attention to latches,
corner hinges and locks).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Interior and exterior of trash compartments and trash chute.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. All light fixtures, cove lights, and air vents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Clean exterior of coffee makers/hot jugs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Walls, ceiling, air vents, service door and floor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Polish stainless steel areas with approved Airline's chemical (appendix 1).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Thoroughly scrub walls, ceiling and floors. Rinse with clean water and dry with clean rag.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. Scrub the galley entry door, doorframe, sill and rubber seal on bottom of door.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. Ensure the drain holes on the sill are clear and free of debris.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Replenish galley paper towel dispensers (where applicable).

Exhibit J-4

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**Lavatory** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Remove trash and other debris from counters, bin and floor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Scrub, wash and rinse all of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Toilet bowl, shroud and chute.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Toilet seat cover and hinges.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Inside and outside of storage compartments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Walls, ceiling, door and floor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Clean all stainless steel or hard surface areas; basin, counter, sink, light fixtures and toilet chute.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Clean and dry mirror.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Clean all exposed surfaces of fold down diaper changing table (if applicable).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Restock supply dispenser and storage bins.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Deodorize with air freshener spray.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Replace deodorant disk.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. All paper supplies, soap and hand sanitizer, as applicable (if no certified potable water available please
utilize waterless hand sanitizer).

**Entrance Areas and Doors** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Scrub aircraft door, hinge, handle area, sills, walls, ceilings and floor. Ensure weep holes on the sill are
clean and free of debris.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Clean all exposed surfaces of entrance doors: remove all fingerprints, grease stains and graffiti.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Scrub entryway floor and doorsill. Rinse, dry or vacuum if carpeted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Damp wipe ceiling air vent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Clean rubber seal on bottom of door.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Clean inside door windows.

**Carpets and Curtains (When Applicable)** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Remove gum spots on carpeting using approved chemical.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Clip any frayed or raveled carpet strings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Vacuum all carpeted areas.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Vacuum top of all cabin curtains.

**Aircraft Refurbishment Standards** 

United requires Contractor to adhere to certain aircraft interior cabin refurbishment standards described in this <u>Exhibit</u> <u>J</u>, which such standards are outlined in the table below (the "**<u>Refurbishment Scope of Work</u>**"). The elements of the Refurbishment Scope of Work shall be performed by Contractor according to a work schedule set forth by United. The Refurbishment Scope of Work is comprised of the minimum required interior cabin refurbishment work required of Contractor, itemized by type of aircraft service visit, e.g., heavy maintenance, RON (as such term is defined in this <u>Exhibit</u> <u>J</u>). The Refurbishment Scope of Work identifies the items in scope for all interior refurbishment work, e.g., carpets, seats, cabin decor/interior, lavatories etc., as specifically set forth in the table below, as well as the timing of when such refurbishment work shall be performed by Contractor.

Exhibit J-5

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Subject to the consent of Contractor (such consent not to be unreasonably withheld or delayed), United may change the Refurbishment Scope of Work. Upon such consent of Contractor, such change shall be made part of the Refurbishment Scope of Work.

All refurbishment work performed by Contractor with respect to the Refurbishment Scope of Work set forth below, whether replacement, repair, or reconditioning/cleaning, must result in like-new interior cabin condition of the refurbished aircraft. United may, from time-to-time, or at any time, monitor and audit the interior cabin refurbishment work undertaken by Contractor pursuant to the Refurbishment Scope of Work, in order to ensure that the interior cabins of the Contractor- refurbished aircraft are in like-new condition post-refurbishment. If United reasonably determines that any Contractor-refurbished interior cabins are not returned to like-new condition, then United will require Contractor to repeat the refurbishment work on that specific aircraft, whether such work requires replacement, repair, or reconditioning/cleaning, at Contractor's sole cost and expense, until such aircraft interior cabin is returned to like-new condition. Items identified through United's audit will be corrected by Contractor within [\*\*\*] of United's written notification or any other mutually agreed upon date. United will charge Contractor [\*\*\*] for each day that the Refurbishment Scope of Work standards are not corrected after the later of such [\*\*\*] correction period or such other mutually agreed upon date.

**Interval for refurbishment work by type of aircraft service visit:** 

• Heavy maintenance category should be similar to the carrier "C Check" interval timeframe, which occurs
at approximately every [\*\*\*] hours of flight time.

• Intermediate category should be similar to half of the "C Check" interval timeframe, which occurs at
approximately every [\*\*\*] hours of flight time, or about every [\*\*\*] "A Check" interval.

Note: These definitions/intervals are guidelines and are subject to change by United, with any such change subject to consent of the Contractor (such consent not to be unreasonably withheld or delayed).

Exhibit J-6

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| | | | |
|:---|:---|:---|:---|
| **[\*\*\*]** | **[\*\*\*]** | **[\*\*\*]** | **[\*\*\*]** |
|  | **[\*\*\*]** | **[\*\*\*]** | **[\*\*\*]** |
| [\*\*\*] |  |  |  |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] |  |  |  |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] |  |  |  |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] |  |  |  |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] |  |  |  |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |

---

[\*\*\*] <br> [\*\*\*]

[\*\*\*]

Exhibit J-7

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**EXHIBIT K** 

[intentionally omitted]

Exhibit K-1

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**EXHIBIT L** 

**Fuel Efficiency Program** 

Contractor shall use commercially reasonable efforts to develop and maintain a comprehensive fuel efficiency program, acceptable to United, in a timely manner and with the overall objective of operating and maintaining the Covered Aircraft in a manner that maximizes fuel efficiency, with due consideration to other performance objectives. The program will include applicable data collection and trend analysis, and will set and track target metrics. United shall audit Contractor's program at its discretion, but at no less than annual intervals, and Contractor and United shall work together to revise and adjust such program from time to time so that such program remains acceptable to United; provided, in all events, any such program shall not, in Contractor's reasonable determination, compromise the safety of the operation of the Covered Aircraft. Such audits will be based on applicable manufacturer material, United's own fuel efficiency program applicable to its own fleet, and any other material standard in the industry.

Contractor's fuel efficiency program shall emphasize at least the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. A "cost index" (CI) based flight planning system, or as an alternative a flight planning system that adequately balances the cost of fuel (which United shall supply to Contractor) versus the cost of time on a segment specific basis to be optimized from United's perspective. The ability to provide the system with current and accurate applicable costs is required. Cost Index values will be updated monthly and will include delay cost if provided by United. Decisions to include Contractor's operational circumstances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Flight planning technology that accurately predicts fuel burn and optimizes both lateral and vertical profiles for takeoff and landing runway, climb, cruise, and descent while considering ATC crossing restrictions, special use airspace, preferred routings (where applicable), and letters of agreements. United periodically evaluates city pair routings and provides optimized routes which shall be incorporated into the flight planning software to provide greater flexibility to determine the least cost routes. Contractor commits to work in good faith with United to establish an audit process to ensure that least cost routing option is selected, provided such actions do not impose any additional burden or cost on Contractor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Development of a comprehensive fuel policy which is appropriate, well documented, and thoroughly trained policies and procedures for dispatchers, pilots, load planners, station agents, mechanics and management that maximize opportunities for fuel efficiency. Policy shall be reviewed with United annually.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. An active interface with appropriate air traffic control ("**<u>ATC</u>**") facilities, management, and other personnel to minimize operational restrictions, and improve ATC handling of Contractor flights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Well-defined and fully integrated flight planning fuel policies, including statistical tracking of fuel added by pilots and dispatchers, efficient reserves, guidelines for efficient alternate selection, a "no-alternate" policy, and target "fuel on deck".

Exhibit L-1

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Thorough and effective pilot and dispatcher training on aerodynamics, cruise performance and overall fuel efficient flying in initial, transition, upgrade, and recurrent programs, with an emphasis on operating the aircraft at the most efficient speeds and altitudes as well as correct descent and approach planning.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Maximized use of on-board flight management systems or performance management computers as an in-flight fuel efficiency tool. Applicable thorough and effective training is required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. An effective fuel tankering program, including automated tankering suggestions and calculations, using validated methods and formulas. Tankered flights to be identified and supplied to United.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. Thorough ACARS-based statistical tracking, analysis and measurement of fuel efficiency using actual data, data from flight plans, with a comprehensive plan to identify and correct deficiencies. All such data will be provided to United.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. A designated manager charged with overall responsibility for fuel efficiency either as a standalone position, or as a substantial element of an individual job description. Manager will audit carrier's efficiency and provide fuel synopsis to United in a format provided by United. Manager will discuss audit results and fuel efficiency initiatives monthly with United.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. The inclusion of fuel efficiency issues and targets in appropriate job descriptions and performance objectives. Applicable work groups include, but are not limited to, pilots, dispatchers, SOCC managers, and gate and ramp personnel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. A weight management program that prevents the carriage of unnecessary galley supplies, spare parts and equipment, customer service items, unless approved by United.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. A center of gravity management system that considers the most efficient center of gravity in load distribution and aircraft loaded utilizing this data.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. Adequate ground equipment and an APU management program that prevents unnecessary or costly operation of the APU.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. Subject to the capability of the ERJ-175 aircraft to provide the following, operational participation (including the provision or ACARS-based data to United) in APU reduction program by utilizing ground power and PC Air at stations when supplied. If available, APU run data by station will be reported to United monthly. The parties will meet and agree with respect to any Airline Modifiable Interface (AMI) change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. Subject to the availability of systems for the ERJ-175 aircraft to collect such data, an engine-out taxi program (which shall include the provision of ACARS-based data to United) both before takeoff and after landing. The parties will meet and agree with respect to any AMI change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. Fuel- and operationally-efficient takeoff and landing flap selection priorities.

Exhibit L-2

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. Proof of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Fuel efficiency management structure

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Existing fuel efficiency programs

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Pilot/dispatcher fuel efficiency communications from prior [\*\*\*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Fuel efficiency training syllabi (stand-alone, recurrent, upgrade, initial)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Monitor the fuel efficiency program to provide modifications to fuel efficiency training

In addition to the above, Contractor agrees to provide the following to United:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Copies of applicable OEM flight manuals and OEM dispatch manuals for study by United fuel team.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Information regarding the following fuel efficiency metrics, broken out by month

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Average planned and actual arrival endurance for flights without filed alternates

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Average planned and actual fuel burn by fleet and city pair

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Percentage of flights with filed alternates

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Subject to the availability of systems for the Covered Aircraft to collect such data, percentage of flights utilizing single-engine taxi

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Average filed/flown altitude, by aircraft type.

Exhibit L-3

------

**EXHIBIT M** 

**[\*\*\*]** 

[\*\*\*]

Exhibit M-1

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**EXHIBIT N** 

[intentionally omitted]

Exhibit N-1

------

**EXHIBIT O** 

**Safety Standards for United and United Express Carriers** 

Contractor agrees and, as applicable, represents and warrants, to each of the following:

1. Contractor shall obtain and comply with the applicable air carrier approvals with respect to, and shall remain
in compliance throughout the Term of this Agreement, with the U.S. Department of Defense (DoD) Quality and Safety Requirements (including 32 CFR Part 861 and any other applicable governmental quality or safety requirement), and will maintain
approval and continue to comply with all applicable Federal Aviation Regulations (F.A.R.). In the event any change to such compliance or status occurs at any time during the Term, Contractor shall [\*\*\*].

2. Any non-compliance with any safety requirements or corrective action
plans shall be grounds for partial or complete suspension by United, without further liability, of this Agreement or any of the terms or conditions of this Agreement; but, with reservation of all other rights and remedies available to United.

3. Additional safety reviews and audits may be required at United's discretion and Contractor shall cooperate
with all such reviews and audits.

4. Contractor shall perform all operations in accordance with United Airlines Policies and Procedures and Regional
Ground Operations Manual (RGOM).

5. In all facets of operations, SAFETY shall be Contractor's #1 priority. Contractor shall ensure all
personnel maintain this same standard during the course of performing their duties.

6. In addition, Contractor agrees to implement or maintain, as applicable, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Mutual support of one another in implementing these standards by sharing safety data, information and
expertise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Quality maintenance and operations training programs

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. A carrier internal evaluation program to monitor all operational divisions to include, at a minimum, key safety
issues, dangerous goods handling, and training records and qualifications for all personnel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Quality programs to manage outsourcing of services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. A formalized maintenance quality assurance program to monitor all maintenance and maintenance support
activities including maintenance practices, required inspection items and technical document control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Implementation of a program to rectify FAA inspection findings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. Presence of a voluntary self-disclosure reporting program.

Exhibit O-1

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. Formal process to routinely bring safety and compliance issues to the attention of carrier's senior
management.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Anonymous and non-punitive safety hazard reporting system.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j. A senior management policy statement supporting open safety reporting by employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k. Director of Safety, reporting to the highest levels of management, overseeing the carrier's safety
programs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;l. Process for managing corrective actions from FAA and internal audit program as well as employee disclosure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;m. Ongoing flight safety education/feedback program.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;n. Ground safety program in airport operating areas.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o. Incident investigation process that includes accountability, recommendations and corrective actions taken.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;p. Establishment and maintenance of emergency response procedures and manual.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;q. Participation in UAL/industry safety information exchange forum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;r. Compliance with the safety standards set forth by the International Air Transport Authority (IATA) Operational
Safety Audit (IOSA) and shall not [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;s. [\*\*\*].

Exhibit O-2

------

**EXHIBIT P** 

**Ground Handler Indemnity** 

Unless superseded by another agreement between a United Ground Handler (as defined below) and Contractor, the following provisions shall apply with respect to the actions of United, or any of United's affiliates, or subcontractors retained by United to provide Ground Handling Services, in each case only to the extent that such person is acting directly in the capacity as a ground handler (a "**<u>United Ground Handler</u>**") for Contractor.

1. *<u>Indemnification</u>* . The United Ground Handler (the "  **<u>Indemnitor</u>** "), on the one
hand, shall indemnify, defend and hold harmless Contractor and its directors, officers and employees, on the other hand (the "  **<u>Indemnitees</u>** "), from and against any and all losses or liabilities incurred by Indemnitee arising
out of physical loss of or damage to the Covered Aircraft (hereinafter, a "  **<u>Claim</u>**") resulting from the negligence of the Indemnitor in providing Ground Handling Services to Indemnitees, except to the extent caused by the
negligence or willful misconduct of any Indemnitee; provided that the Indemnitor's liability pursuant to this <u>Exhibit</u> <u>P</u> with respect to any such Claim shall not exceed, in the aggregate, [\*\*\*]; provided further, that
the Indemnitor shall not indemnify Indemnitee for any individual Claim [\*\*\*]. FOR THE AVOIDANCE OF DOUBT, EXCEPT FOR CLAIMS FOR WHICH INDEMNITY IS OWED PURSUANT TO THE FOREGOING SENTENCE, CONTRACTOR AGREES TO WAIVE ALL CLAIMS FOR PROPERTY DAMAGE
ARISING OUT OF THE PROVISION OF GROUND HANDLING SERVICES AGAINST UNITED OR ANY UNITED GROUND HANDLER (OR THEIR RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, OR SUBCONTRACTORS), WHETHER OR NOT ATTRIBUTABLE TO THE NEGLIGENCE OR FAULT OF ANY SUCH
PARTY.

2. *<u>Exclusion of Consequential Damages</u>* . THE INDEMNITOR SHALL NOT BE LIABLE TO ANY PERSON PURSUANT TO
THIS <u>EXHIBIT P</u> FOR ANY INDIRECT, INCIDENTAL, PUNITIVE, SPECIAL, CONSEQUENTIAL OR EXEMPLARY DAMAGES, INCLUDING DAMAGES FOR LOSS OF REVENUE OR LOST PROFITS, EVEN IF THE INDEMNITOR HAD BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, AND EACH
INDEMNITEE HEREBY RELEASES AND WAIVES ANY CLAIMS AGAINST THE INDEMNITOR REGARDING SUCH DAMAGES.

3. *<u>Prompt Notification</u>* . Any Indemnitee seeking indemnification hereunder shall give prompt and
timely notification to the Indemnitor of any such claim, fine, penalty, action or proceeding, and allow the Indemnitor the right to compromise or participate in the defense of same.

Exhibit P-1

------

**EXHIBIT Q** 

**[Intentionally omitted]** 

Exhibit Q-1

------

**EXHIBIT R** 

**Reasonable Operating Constraints** 

The schedules for the Covered Aircraft shall meet all of the following requirements:

1. <u>Minimum</u> <u>& Maximum Scheduling Parameters</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The following parameters shall apply at all times:

---

| | | |
|:---|:---|:---|
|  | **Minimum** | **Maximum** |
|  Average Scheduled Block Hours per Available Covered Aircraft per day | [\*\*\*] | [\*\*\*] |
|  Average Scheduled Departures per day | [\*\*\*] | [\*\*\*] |

---

\* Notes: The above maximum schedule parameter applies only to Covered Aircraft in revenue service. The above maximum schedule parameter is calculated on the Final Monthly Schedule average across all Available Covered Aircraft. In the event of a Force Majeure, the Block Hour Minimum outlined in the immediately preceding table shall be [\*\*\*]; *provided, however*, [\*\*\*] (such [\*\*\*], the "**<u>Relief Terms</u>**") and such Relief Terms have [\*\*\*]. The parties will work together [\*\*\*]. 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Aircraft Turn Times</u>.

Minimum turn times (defined as the time from Aircraft blocking in to Aircraft unblocking) for both a United designated hub and non-hub airport will be [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Aircraft Maintenance Requirements</u>.

[Contractor will require [\*\*\*] to be scheduled for overnight maintenance. United will schedule [\*\*\*] each week (Weekday Entry). In addition, [\*\*\*] will be scheduled for [\*\*\*] each week beginning on Saturday afternoon (Weekend Entry).] **[*Parties to discuss and confirm 120 days before the expected Effective Date*]**

4. <u>Crew Overnights</u> 

The Contractor's United Express schedule will allow for a [\*\*\*] overnight in outstations and will not require the Contractor to schedule any continuous duty overnights. Any costs incurred by Contractor as a result of United failing to meet this parameter will be borne by United. A single crew overnight requires that the crew's scheduled rest period is at least 11.5 hours.

5. <u>Maintenance Bases</u>.

[Contractor will establish maintenance bases within the operating network. Currently the established maintenance bases are [\*\*\*]. As the fleet expands additional maintenance base(s) may be required, at such time the Contractor will evaluate potential maintenance base locations. Following a review of the potential locations with United, the Contractor will determine the location and activation date of the addition maintenance base. Each maintenance base in the

Exhibit R-1

------

Contractor's United Express system will have [\*\*\*] Weekday Entries upon full fleet implementation. Once a maintenance base is established, then the Contractor will require [\*\*\*], if United desires to relocate the base. Further, if United requires that a base be relocated or if a base no longer, meets the Weekday Entry minimum stated above, then United will [\*\*\*]. United shall consider in good faith any proposals from Contractor regarding the use of maintenance bases and for operations at such maintenance bases.] **[*Parties to discuss and confirm 120 days before expected Effective Date*]**

6. <u>Crew Bases</u>.

[The Contractor will establish crew bases for pilots and flight attendants within the operating network. Currently the established crew bases are [\*\*\*]. As the fleet expands it is expected that an additional crew base(s) may be required, at such time the Contractor will evaluate potential crew base locations. Following a review of the potential locations with United, the Contractor will determine the location and activation date of the additional crew base(s). Each crew base in the Contractor's United Express system will have [\*\*\*]. Once a crew base is established, then the Contractor will require [\*\*\*], if United desires to relocate the base. Further, if United requires that [\*\*\*] then, United will [\*\*\*].] **[*Parties to discuss and confirm 120 days before expected Effective Date*]**

7. <u>International and New Airport Operations</u>.

The Contractor will require a minimum [\*\*\*] notice prior to the scheduled operation to any new International destination. Contractor will use commercial reasonable effort to obtain required authorizations to initiate the new service. When the Contractor is requested to serve a new airport the Contractor will advise United, within [\*\*\*], if there are any conditions that will limit the Contractor's ability to operate into the requested airport within [\*\*\*]. While the Contractor cannot assure United, it will [\*\*\*].

8. <u>Maintenance Aircraft</u>.

Upon [\*\*\*], Contractor shall inform United of Covered Aircraft that need to be removed from providing Scheduled Flights for purposes of accomplishing heavy maintenance, mutually agreed-upon overhauls and mutually agreed-upon modifications. Such aircraft will not be considered Available Covered Aircraft while removed from providing Scheduled Flights**.**

9. <u>Technicians</u>.

For the period from and after the Effective Date until the [\*\*\*], if (x) there occurs any [\*\*\*], then, [\*\*\*].

Exhibit R-2

------

**EXHIBIT S** 

**United Wi-Fi** 

**1.**  **<u>General Installation</u>** 

United has contracted with Intelsat Inflight LLC (f/k/a Gogo LLC) ("Gogo") to provide air-to-ground internet service inflight ("United's Wi-Fi Agreement"). Pursuant to United's Wi-Fi Agreement, Gogo/Intelsat or one of its subcontractors has installed the Gogo/Intelsat Wi-Fi and inflight entertainment equipment, including associated software ("Wi-Fi Equipment") on the E175 Aircraft. For purposes of this Amendment, Wi-Fi and inflight entertainment services will be defined as "Wi-Fi Services". United has purchased all Wi-Fi Equipment installed. Contractor agrees that United shall remain the sole owner of the Wi-Fi Equipment installed on Contractor aircraft and Contractor agrees not to assert any claim of ownership or a lien on such Wi-Fi Equipment. United will purchase all Wi-Fi Equipment.

2.  **<u>Revenues from the Sale of Wi-Fi service</u>** 

3.  **<u>Purchase Order Details</u>** 

[Intentionally omitted]

4.  **<u>Compliance with Laws and Certification</u>** 

Contractor will comply with all laws and regulations applicable to Contractor in performing Contractor's obligations under this Agreement and will cooperate, to the extent reasonably necessary, with Gogo/Intelsat, for Gogo/Intelsat and Gogo/Intelsat subcontractors to comply with all laws and regulations applicable to Gogo/Intelsat and its subcontractors. Contractor will provide Gogo/Intelsat or its subcontractors with access to the Equipped Aircraft and provide such assistance as Gogo/Intelsat reasonably request to obtain and maintain any legally required certification of the Wi-Fi Equipment and Gogo/Intelsat Services at all times during the Term. At the Effective Date of this Agreement, there are no known direct cost associated with this **Section 4**. Should Contractor become aware of any direct cost pursuant to its obligations in Appendix I, Contractor will review those cost with United before they are incurred such that Contractor and United can work towards agreement on cost responsibility.

Exhibit S-1

------

5.  **<u>Warranty Conditions</u>** 

Contractor shall notify United and Gogo/Intelsat promptly when it becomes aware of any failure in performance, malfunction, defect, loss of or damage to the Wi-Fi Equipment with reasonable details (it being acknowledged that United may be precluded from claiming a breach of the warranty included in the United Wi-Fi Agreement without such information). Contractor shall not take any action that would (i) cause a failure or defect of the Wi-Fi Equipment by combining it with equipment, software, or services not supplied, authorized or specified by Gogo/Intelsat, (ii) cause Wi-Fi Equipment to be subjected to any misuse, neglect, accident or improper maintenance by Contractor or subcontractors, or (iii) cause an infringement or misappropriation of a third party's intellectual property by combining the Wi-Fi Equipment with any content, materials, equipment or software provided by or on behalf of Contractor that is not authorized or approved by Gogo/Intelsat. Contractor shall not itself, nor knowingly permit any other person to, modify or tamper with the Wi-Fi Equipment, other than Gogo/Intelsat or its subcontractors.

6.  **<u>Defective Equipment and Software</u>** 

In the event of a defect in the Wi-Fi Equipment covered by the warranty, Contractor agrees to use its commercially reasonable efforts to ship such Wi-Fi Equipment to Gogo/Intelsat within [\*\*\*] if requested by Gogo/Intelsat to do so (and the shipping cost shall be reimbursed to Contractor by United).

7.  **<u>Maintenance and Support</u>** 

For a period of time under the United Wi-Fi Agreement, Gogo/Intelsat or its subcontractor will provide touch labor to correct any malfunctioning or defective Wi-Fi Equipment, including any associated software. Following the expiration of this initial warranty period, United may either (i) continue to have Gogo/Intelsat or its subcontractor provide touch labor or (ii) elect to provide touch labor for maintenance of Wi-Fi Equipment on Equipped Aircraft. Gogo/Intelsat may dispatch Gogo/Intelsat personnel or its subcontractors to the Contractor's designated Wi-Fi Equipment maintenance location to troubleshoot maintenance issues with such Wi-Fi Equipment; the cost of such maintenance services shall be mutually agreed upon between United and Gogo/Intelsat and will be at United expense.

8.  **<u>Contractor Responsibilities for Maintenance Support</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Contractor will promptly notify Gogo/Intelsat when it becomes aware that Wi-Fi Equipment is malfunctioning, inoperative or defective. Contractor shall make such Equipped Aircraft available for maintenance services as required, in a timely manner as operationally practical (it being
acknowledged that maintenance touch labor by Gogo/Intelsat or its subcontractors will require a minimum of [\*\*\*] of maintenance touch time in most cases to avoid [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Contractor shall use its commercially reasonable efforts to make the Equipped Aircraft available to
Gogo/Intelsat from time to time at Contractor's facilities for purposes of refreshing the onboard streaming video content.

Exhibit S-2

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Contractor shall provide the applicable information as agreed between Gogo/Intelsat and Contractor to
Gogo/Intelsat, or its subcontractors, electronic access to all specific and customized technical manuals and documents in order to perform installation, maintenance and repairs including its Aircraft Maintenance Manual (AMM), Illustrated Parts
Catalog (IPC) and Wiring Diagram Manual (WDM) and any other documents requested which are essential for Gogo/Intelsat or its designated subcontractor to provide maintenance and repair services on the Wi-Fi Equipment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Contractor shall use commercially reasonable efforts to provide day-to-day communication to United and Gogo/Intelsat as to any non-performance of Gogo/Intelsat Services and the system (e.g., the system is inoperative, the system is
restored) as necessary and to the extent Contractor becomes aware of the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. Contractor shall provide the applicable information as agreed between Gogo and Contractor to Gogo/Intelsat with
the applicable manual reference and procedures for any service bulletins relevant to the Gogo/Intelsat Services outlining the appropriate handling procedures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. Contractor shall have the right to audit and approve any subcontractor that Gogo/Intelsat or United may select
prior to performing maintenance on contractor's aircraft. Contractor will be responsible for ensuring that all applicable Contractor requirements for repair and maintenance stations (such as any FAA required certifications) per
Contractor's maintenance manual are met.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. For any Wi-Fi repairs or alterations that are required that are not
already accepted / approved as part of the instructions for continued airworthiness (maintenance manual), Contractor shall supply the required acceptance / approval of that work, including any required engineering orders, no later than
two weeks following the request. Gogo/Intelsat shall supply all required substantiating data (service bulletins, service letters, etc.) so that Contractor can authorize the work to be performed. Contractor shall store spare parts to repair and
maintain the Wi-Fi Equipment in a secure, environmentally stable location. Contractor shall maintain adequate levels of insurance against loss or damage while such spare parts are in Contractor's custody
and control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H. Contractor will provide a program contact and such other human resources with respect to the Wi-Fi Services, including resources onsite at certain locations at certain times, as may reasonably be required to work cooperatively with Gogo/Intelsat and its subcontractors in support of the program plan and
schedule, United will [\*\*\*] incurred in providing Gogo/Intelsat or its subcontractors such support. At the Effective Date of this Agreement, there are no known direct cost associated with this <u>Section</u> <u>8(H)</u>. Should
Contractor become aware of any direct cost pursuant to its obligations in Appendix I, Contractor will review those cost with United before they are incurred such that Contractor and United can work towards agreement on cost responsibility.

Exhibit S-3

------

9.  **<u>Contractor Responsibilities- Other</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Contractor's inflight crews shall not knowingly interfere with the operation of the Wi-Fi Equipment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Contractor shall use reasonable efforts to inform its inflight crews such that the crews are reasonably
knowledgeable of the Wi-Fi Services and are able to answer general customer questions regarding such services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Contractor's inflight crews shall make timely announcements to passengers on Equipped Aircraft regarding
the availability of Wi-Fi Services

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Contractor shall keep the seatbacks on the Equipped Aircraft stocked with seatback cards containing information
about Wi- Fi Services.

10.  **<u>Release of Leased Aircraft</u>** 

[Intentionally omitted]

11.  **<u>Liability/Risk of Loss</u>** 

Contractor shall promptly notify United and Gogo/Intelsat of any damage (except normal wear and tear), destruction, loss, theft, or governmental taking of any Wi-Fi Equipment or spare parts in Contractor's custody upon Contractor's becoming aware thereof and, whether or not covered by Contractor's insurance. In all respects, Contractor shall store, maintain and care for the Wi-Fi Equipment [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. As between United and Contractor, United agrees to be responsible to Contractor for any damage to a Contractor
aircraft that might have occurred during the installation, uninstallation or maintenance of the Wi-Fi Equipment, in each case caused by or resulting from [\*\*\*]. If any such damage occurred during such
installation or maintenance, upon receipt from Contractor of a claim for the repair of any such damage to a Contractor aircraft or for reimbursement for the cost for repairing any such damage, together with reasonably detailed substantiating details
for the amount of any such claim, United agrees to cause such damage to be repaired or to reimburse Contractor for the cost of repairing such damage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Without limiting any of Contractor's obligations contained in Appendix I, Contractor shall have risk of
loss for any Wi-Fi Equipment and related equipment, spares and/or supplies while stored at Contractor's facilities. In addition, Contractor shall be liable to United for any and all damage or loss of Wi-Fi Equipment installed on Contractor aircraft caused by or resulting from Contractor's [\*\*\*].

12.  **<u>Installation Schedule and Support for Revenue Launch</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. <u>Fleet Availability</u>. If Gogo/Intelsat request an Equipped Aircraft inspection, then Gogo/Intelsat will
provide Contractor with at least [\*\*\*] notice prior to requesting Contractor to perform such aircraft inspection. If at least [\*\*\*] prior notice is not practical under the circumstances, Contractor will use commercially reasonable efforts to conduct
such inspection.

Exhibit S-4

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. <u>Contractor Resources</u>. Contractor will (i) make engineering resources reasonably available to
Gogo/Intelsat on an agreed-upon schedule to assist with technical aircraft and cabin surveys, and (ii) provide information on existing aircraft systems and design-for-maintenance knowledge.

13.  **<u>Marketing Plan</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. <u>Initiatives</u>. Contractor will use its commercially reasonable efforts to inform and direct their
employees to keep the Wi-Fi Equipment turned on at all times. Contractor will use its commercially reasonable efforts to inform and direct their employees to: (a) make timely announcements to passengers
on Equipped Aircraft regarding the availability of Wi-Fi Services for customers to use; and (b) keep the seatbacks on the Equipped Aircraft stocked with seatback cards containing information about Wi-Fi Services at all times.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. <u>Marketing and Publicity</u>. Contractor will not use Gogo/Intelsat's or United's logotypes, trade
names, trademarks, service marks, or other proprietary marks or words, in any public statements, press releases, advertising or promotional materials with respect to the Wi-Fi Services or this Agreement
without the respective party's consent, except where a specific use has been approved in advance and in writing (e-mail will constitute a writing for this purpose).

14.  **<u>Wi-Fi Installation Cost</u>** 

United agrees to timely purchase and pay for all materials, consumables, equipment, shipping and reasonable labor cost for the installation project, including all engineering and certification services, necessary or appropriate to complete the installation of the Wi-Fi Equipment as quickly as possible. United will reimburse Contractor for those out-of-pocket cost incurred by Contractor related to the items in this <u>Section</u> <u>15</u>.

15.  **<u>Removal of Wi-Fi Equipment</u>** 

At United's cost and expense, United may remove the Wi-Fi Equipment at any time, and upon any such removal, United shall repair any damage to the Contractor aircraft caused by such removal, except to the extent any such cost or expense is caused by or is resulting from the willful misconduct of Contractor or its agents, which shall be borne by Contractor.

16.  **<u>Ownership of Wi-Fi Equipment and Related Covenants</u>** .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. United will own, at all times, the Wi-Fi Equipment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Wi-Fi Equipment will be free from all liens or other encumbrances

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. [Intentionally left blank]

Exhibit S-5

------

**EXHIBIT T** 

**Cyber Data Risk Contractor Requirements** 

A. DATA SECURITY

1. Contractor shall establish and maintain, data security procedures and technical, physical, administrative and
other safeguards to protect against the destruction, loss, and unauthorized access, use, possession or alteration of United Confidential Information in the possession of Contractor. Such procedures and practices shall be compliant, at a minimum,
with (a) to the extent applicable, all applicable laws, rules, regulations, directives, ordinances, codes or similar enactments that apply to United in the conduct of its business. All such procedures and practices shall take into account the
nature of the United Confidential Information and the commensurate risks associated with such United Confidential Information. Contractor shall maintain a complete audit trail of all access to, and use of, United Confidential Information including,
but not limited to, transactions and activities associated with United Confidential Information. Contractor also shall implement and maintain appropriate business continuity, contingency and disaster recovery plans in order to maintain the
availability, security and confidentiality of United Confidential Information and restore normal operating procedures as promptly as possible in the event of a major disruption, business interruption or failure.

2. Starting from the Effective Date, Contractor shall maintain a complete, [\*\*\*] audit trail of all access to, and
use of, United Confidential Information including, but not limited to, transactions and activities associated with United Confidential Information. Contractor agrees to complete, within [\*\*\*] of receipt, an audit questionnaire provided by United or
United's designee regarding Contractor's information security program.

3. No less than annually, in lieu of an on-site audit, upon request by
United, Contractor agrees to complete, within [\*\*\*] of receipt, an audit questionnaire provided by United or United's designee regarding Contractor's information security program. Contractor shall have conducted an external penetration
test of its information security program at least annually and anytime there is a significant infrastructure or application upgrade or modification (e.g., new system component installations, addition of a sub-network, or web server) and provide such findings to United, all at the Contractor's sole expense. Contractor shall implement at its sole expense any remedial actions as identified by United or as a
result of the penetration testing.

4. All United Confidential Information must be stored only on computer systems located in the continental United
States.

5. United has the right, in its sole and absolute discretion at any time and from time to time for any reason, to
restrict, discontinue, suspend, cancel, terminate or modify Contractor's right to use, obtain, access, hold or process United Confidential Information, in order to protect and secure United Confidential Information. Upon termination or
United's request, Contractor shall return in a manner and format reasonably requested by United, or, if specifically directed by United, shall destroy, United Confidential Information in Contractor's possession, power or control, in a
manner that assures same is rendered unintelligible and unrecoverable. Upon

Exhibit T-1

------

termination or United's instruction to destroy or return all United Confidential Information, all copies of United Confidential Information shall be permanently removed from all of Contractor's, its agents', subcontractors' or third parties' facilities, systems, records, archives and backups, and all subsequent use of such information by Contractor, its agents, subcontractors or third parties shall cease. Contractor shall remove all United Confidential Information from any media taken out of service and shall destroy or securely erase such media in accordance with the requirements in this Agreement. No media on which United Confidential Information is stored may be used or re-used to store data of any other customer of Contractor or to deliver data to a third party, including another Contractor customer, unless securely erased in accordance with the requirements in this Agreement. If Contractor disposes of any paper or electronic record containing United Confidential Information for any reason Contractor agrees that disposal or reuse of all magnetic media (e.g. hard disk, floppy disk, removable media, etc.) that may have contained United Confidential Information shall be subject to a data sanitization process which meets or exceeds DoD 5220.28-M 3-pass specifications. Certification of the completion of data sanitization shall be provided to United within [\*\*\*] of completion. Acceptance of Certification of Data Sanitization by United's IT Security & Risk Management team is required prior to media reuse or disposal. Contractor agrees that all other materials which contain United Confidential Information shall be physically destroyed and shredded in accordance to NIST Special Publication 800-88, Guidelines for Media Sanitization, specifications.

6. Contractor agrees to be responsible for safekeeping all keys, access codes, passwords, combinations, access
cards, personal identification numbers and similar security codes and identifiers issued to Contractor's employees, agents or Contractors. Contractor agrees to require its employees, agents, or Contractors to promptly report a lost or stolen
device which contains, stores or has access to United Confidential Information to their primary business contact and to [\*\*\*].

B. System Connections

1. In addition to the Contractor's obligations under this Agreement related to the safe-keeping of United
Confidential Information and in order to protect United's automated information technology assets Contractor agrees that it shall comply with the provisions of this Section.11. B.

2. Minimum Standard for Data at Rest and Data in Motion. Contractor agrees, at a minimum, to comply, with National
Institute of Standards and Technology (NIST) Special Publication 800-53 Moderate Level Control or ISO 27001/27002 standards. Contractor further acknowledges that valid encryption processes for data in motion
(e.g., transmitted through a network) are those which comply with NIST Special Publications 800-52, Guidelines for the Selection and Use of Transport Layer Security Implementation; 800-77, Guide to IPsec VPNs; or 800-113, Guide to SSL VPNs, or others which are Federal Information Processing Standards (FIPS) 140-2 validated.

Exhibit T-2

------

3. Requirement to Maintain Security Program. Contractor shall be responsible for establishing and maintaining an
information security program that is designed to: (i) ensure the security and confidentiality of United Confidential Information and United's automated information assets; (ii) protect against any anticipated threats or hazards to the
security or integrity of United Confidential Information and United's automated information assets; (iii) protect against unauthorized access to or use of United Confidential Information and United's automated information assets;
(iv) ensure the proper disposal of United Confidential Information; and, (v) ensure that all Contractors of Contractor, if any, comply with all of the foregoing.

4. As part of the security program Contractor will establish a vulnerability management program to ensure critical
and high vulnerabilities are remediated within [\*\*\*] of discovery. Contractor will also address vulnerabilities identified by United or an independent researcher within [\*\*\*].

Exhibit T-3

------

**EXHIBIT U** 

[\*\*\*]

[\*\*\*]

Exhibit U-1

------

**EXHIBIT V** 

[\*\*\*]

[\*\*\*]

Exhibit V-1

------

**EXHIBIT W** 

**[Intentionally omitted]** 

Exhibit W-1

## Exhibit 10.28

**Exhibit 10.28.1** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

**PURCHASE AGREEMENT COM0448-18** 

**between** 

**EMBRAER S.A.** 

**and** 

**REPUBLIC AIRLINE INC.** 

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**<u>INDEX</u>**

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| | | |
|:---|:---|:---|
|  | **ARTICLE** | **PAGE** |
| **1.** | **DEFINITIONS** | **4** |
| **2.** | **SUBJECT** | **6** |
| **3.** | **PRICE** | **6** |
| **4.** | **PAYMENT** | **6** |
| **5.** | **DELIVERY** | **7** |
| **6.** | **CERTIFICATION** | **7** |
| **7.** | **ACCEPTANCE AND TRANSFER OF OWNERSHIP** | **7** |
| **8.** | **STORAGE CHARGE** | **8** |
| **9.** | **DELAYS IN DELIVERY** | **8** |
| **10.** | **DELIVERY INSPECTION** | **9** |
| **11.** | **CHANGES** | **9** |
| **12.** | **WARRANTY [\*\*\*]** | **10** |
| **13.** | **PRODUCT SUPPORT PACKAGE** | **10** |
| **14.** | **ASSIGNMENT** | **10** |
| **15.** | **RESTRICTIONS AND PATENT INDEMNITY** | **11** |
| **16.** | **INTENTIONAL OMITTED** | **12** |
| **17.** | **TAXES** | **12** |
| **18.** | **APPLICABLE LAW** | **13** |
| **19.** | **JURISDICTION** | **13** |
| **20.** | **SOVEREIGN IMMUNITY** | **13** |
| **21.** | **TERMINATION** | **13** |
| **22.** | **PURCHASE RIGHT AIRCRAFT** | **13** |
| **23.** | **[\*\*\*]** | **14** |
| **24.** | **NOTICES** | **14** |
| **25.** | **CONFIDENTIALITY** | **15** |
| **26.** | **INTEGRATED AGREEMENT** | **15** |
| **27.** | **NEGOTIATED AGREEMENT** | **15** |
| **28.** | **COUNTERPARTS** | **15** |
| **29.** | **ENTIRE AGREEMENT** | **15** |
| **30.** | **NO WAIVER** | **15** |
| **31.** | **REPRESENTATIONS AND WARRANTIES** | **16** |
| **32.** | **COMPLIANCE WITH LAWS** | **17** |
| **33.** | **FOREIGN CONTENT** | **18** |
| **34.** | **SEVERABILITY** | **18** |

---

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**<u>ATTACHMENTS</u>**

**"A1" - 175LR AIRCRAFT CONFIGURATION** 

[\*\*\*]

[\*\*\*]

**"B1" - FERRY FLIGHT ASSISTANCE AND PRODUCT SUPPORT PACKAGE** [\*\*\*]

[\*\*\*]

**"C" - WARRANTY - MATERIAL AND WORKMANSHIP** 

[\*\*\*]

**"E" - FIRM AIRCRAFT DELIVERY SCHEDULE** 

[\*\*\*]

[\*\*\*]

[\*\*\*]

[\*\*\*]

[\*\*\*]

**"J" - FORM OF APPOINTMENT OF AUTHORIZED REPRESENTATIVE** 

**"K" - FORM OF WARRANTY BILL OF SALE** 

**"L" - FORM OF GUARANTY** 

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**<u>PURCHASE AGREEMENT COM0448-18</u>**

THIS AGREEMENT IS ENTERED INTO THIS 15th DAY OF DECEMBER 2018, BY AND BETWEEN EMBRAER S.A. AND REPUBLIC AIRLINE INC., FOR THE PURCHASE AND SALE OF CERTAIN AIRCRAFT (AS DEFINED BELOW).

THE AIRCRAFT SALES COVERED BY THIS AGREEMENT SHALL BE GOVERNED SOLELY BY THE TERMS AND CONDITIONS SET FORTH IN THIS AGREEMENT.

THIS AGREEMENT SHALL NOT BE EFFECTIVE UNLESS AND UNTIL IT IS SIGNED BY AN AUTHORIZED OFFICER OF REPUBLIC AIRLINE INC. AND EXECUTED BY TWO AUTHORIZED OFFICERS OF EMBRAER S.A.

**1. DEFINITIONS** 

For the purpose of this Agreement, the following definitions are hereby adopted by the Parties:

1.1. "Actual Delivery Date": shall mean, with respect to each Aircraft, the date on which Buyer obtains title to that Aircraft in accordance with Article 7.

1.2. "AD's": shall mean effective airworthiness directives issued by either [\*\*\*] or the Airworthiness Authority, in connection with and with respect to the Aircraft.

1.3. "Agreement" or "Purchase Agreement": shall mean this Purchase Agreement COM0448-18 [\*\*\*].

1.4. "Aircraft": shall mean the EMBRAER 175 LR (certification designation: ERJ 170-200 LR) aircraft referred to in Attachment "A1" for sale to Buyer pursuant to this Agreement, equipped with two engines identified therein. Aircraft shall include [\*\*\*].

1.5. "Aircraft Basic Price": shall mean the Aircraft Basic Price, as defined in Article 3.1.

1.6. "Aircraft Purchase Price": shall mean, in the case of any Aircraft, the purchase price, effective on the Contractual Delivery Date for such Aircraft, resulting from the application of the Escalation Formula to the Aircraft Basic Price.

1.7. "Airworthiness Authority": shall mean United States Federal Aviation Administration or the "FAA".

1.8. "ANAC": shall mean the Brazilian civil aviation authority – Agência Nacional de Aviação Civil.

1.9. "Business Day(s)": shall mean a day (other than Saturday and Sunday) on which banks are open for business in São José dos Campos and São Paulo in Brazil, and New York, New York, in the United States.

1.10. "Buyer": shall mean Republic Airline Inc., a company organized and existing under the laws of Indiana, with its principal place of business at 8909 Purdue Road, Suite 300, Indianapolis, Indiana 46268, United States, or its assignee pursuant to Article 14.

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1.11. "Contractual Delivery Date": shall mean, in the case of a Firm Aircraft, the last Business Day of the month specified for such Firm Aircraft in Attachment "E" in the column "Contractual Delivery Date" and, in the case of any Purchase Right Aircraft, the last Business Day of the Purchase Right Aircraft Contractual Delivery Month for such Purchase Right Aircraft as may be agreed pursuant to Article 22.6 of this Agreement.

1.12. "Day(s)": shall mean calendar days.

1.13. "Embraer": shall mean Embraer S.A., a Brazilian corporation organized and existing under the laws of Brazil with its principal place of business at Av. Brigadeiro Faria Lima, 2170, São José dos Campos, SP, Brazil.

1.14. "Escalation Formula": shall mean the terms contained in Attachment "D" hereto.

1.15. "Excusable Delay": shall have the meaning assigned to such term in Article 9.1.1.

1.16. "Firm Aircraft": shall mean the Aircraft specified in Article 2.1.

1.17. "Initial Deposit" shall have the meaning assigned to such term in Article 4.1.1.

1.18. "LIBOR": for purposes of calculating any interest rate under this Agreement for any period for which the same is to be established, shall mean the applicable [\*\*\*].

1.19. "Non-Excusable Delay": any delay in the delivery of an Aircraft or in the performance of any act by Embraer under this Agreement that is not an Excusable Delay.

1.20. "Parties": shall mean Embraer and Buyer.

1.21. "Product Support Package": shall mean the products and Services to be provided by Embraer as per Article 13.

1.22. "Purchase Right Aircraft": shall have the meaning set out in Article 22.

1.23. "Services": shall mean the familiarization and on-site support for the Aircraft, part of the Product Support Package, as specified in Attachments "B1" and "B2", as applicable.

1.24. "Technical Publications": shall mean the technical documentation pertaining and related to the Aircraft, as identified in Article 2.2 of Attachments "B1" and "B2", as applicable.

1.25. "USD" or "US$": shall mean the legal currency of the United States of America.

1.26. "Vendor": shall mean third party suppliers of equipment, parts, tools, ground support and test equipment to Embraer to use on or in connection with the Aircraft.

References to Articles or Attachments in the main body of this Purchase Agreement shall be deemed to be references to Articles of or Attachments to this Agreement, respectively, except as the context requires otherwise.

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**2. SUBJECT** 

Subject to the terms and conditions of this Agreement:

2.1 Embraer shall sell and deliver and Buyer shall purchase and take delivery of [\*\*\*] Firm Aircraft;

2.2 Buyer shall have the right to purchase up to [\*\*\*], in accordance with Article 22;

2.3 Embraer [\*\*\*] Buyer the Services and the Technical Publications as described in Attachment "B1" or "B2", as applicable, to this Agreement.

**3. PRICE** 

3.1 The Aircraft Basic Price of each Aircraft is [\*\*\*].

3.2 The Services and Technical Publications [\*\*\*]. Additional technical publications as well as other services shall be billed [\*\*\*].

3.3 The Aircraft Purchase Price for an Aircraft shall be the Aircraft Basic Price escalated according to the Escalation Formula. The Aircraft Purchase Price will be provided by Embraer to Buyer [\*\*\*] prior to the Contractual Delivery Date for such Aircraft.

**4. PAYMENT** 

4.1 To secure the Firm Aircraft delivery positions set forth in Attachment "E" and to ensure delivery of the Firm Aircraft in accordance with the applicable Contractual Delivery Dates, Buyer shall pay Embraer [\*\*\*] in accordance with the terms and conditions contained in this Article 4. The Parties acknowledge that each of the Firm Aircraft and the corresponding delivery positions have been reserved for purchase by Buyer and such Firm Aircraft have been removed from the market. The amounts specified in this Article 4.1 shall be paid by Buyer by wire transfer in immediately available United States dollars funds, to such bank account in the United States as directed by Embraer to Buyer [\*\*\*] prior to the date of payment, as follows:

The Aircraft Purchase Price for each Firm Aircraft shall be paid by Buyer, as follows:

[\*\*\*]

4.2 Late Payments:

Interest will accrue at the rate of [\*\*\*] on any amount not paid to Embraer as set forth in [\*\*\*].

4.3 Termination for failure to make payments:

In the event Buyer fails to make any payment required under [\*\*\*] of this Agreement with respect to an Aircraft on or before the applicable due date and if such failure shall not have been cured within [\*\*\*] following the date on which the amount was due and payable and is continuing, Embraer shall have the right to [\*\*\*]. In the event that Embraer [\*\*\*] as provided for in the immediately preceding sentence, and the Buyer fully cures any [\*\*\*], Embraer shall [\*\*\*].

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4.4 Net payments: all payments required to be made by Buyer to Embraer under this Agreement shall be made [\*\*\*]. If Buyer is obliged by law to make any deduction or withholding from any such payment for [\*\*\*], the amount due from Buyer in respect of such payment shall be increased to the extent necessary to ensure that, after the making of any such deduction or withholding, Embraer receives a net amount equal to the amount Embraer would have received had no such deduction or withholding been required to be made.

4.5 Payment Date: unless otherwise agreed by the Parties in writing, payment of the amounts referred in [\*\*\*], if not due within [\*\*\*], shall be made by Buyer on or before [\*\*\*].

4.6 [\*\*\*]

**5. DELIVERY** 

Subject to payment in accordance with Article 4 and the provisions of Articles 7 and 9, Embraer shall make each Aircraft available to Buyer for inspection, acceptance and subsequent delivery in [\*\*\*] condition in compliance with this Agreement, at São José dos Campos, Brazil, on the Contractual Delivery Date for such Aircraft [\*\*\*].

**6. CERTIFICATION** 

6.1 Embraer confirms that the EMBRAER 175LR aircraft [\*\*\*] are certified by the FAA pursuant to the US14CFR PART 25 certification requirements.

6.2 Embraer agrees that [\*\*\*].

6.3 The Aircraft shall be manufactured by Embraer in compliance with [\*\*\*].

6.4 The Aircraft shall be delivered to Buyer with an export certificate of airworthiness issued by [\*\*\*]. The condition of the Aircraft at delivery and the documentation delivered with the Aircraft, including the above mentioned export certificate of airworthiness shall enable Buyer to obtain a certificate of airworthiness from the Airworthiness Authority. Subject to the above, it shall be Buyer's responsibility to obtain such certificate of airworthiness and to register the Aircraft, at Buyer's sole expense. Embraer shall [\*\*\*].

**7. ACCEPTANCE AND TRANSFER OF OWNERSHIP** 

7.1 Unless Embraer notifies Buyer otherwise, each Aircraft shall be delivered in accordance with the provisions specified pursuant to Article 5 herein on its respective Contractual Delivery Date. Embraer shall give Buyer [\*\*\*] advance notice of the date on which Embraer considers that each Aircraft will be ready for delivery in the condition specified herein. Upon [\*\*\*], Embraer will give Buyer [\*\*\*] Days advance notice of [\*\*\*].

7.2 Buyer shall be allowed [\*\*\*] to inspect [\*\*\*] ([\*\*\*] the "Inspection") of each Aircraft prior to its delivery. [\*\*\*] will be provided by Embraer [\*\*\*]. After [\*\*\*], such Aircraft will be delivered by Embraer to Buyer in accordance with Article 6 hereof.

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7.3 Buyer shall accept the Aircraft provided [\*\*\*]. Immediately after such acceptance, [\*\*\*] and Embraer shall execute the necessary title and risk transfer documents required to effect title transfer [\*\*\*].

7.4 If Buyer declines to accept an Aircraft [\*\*\*], Buyer shall promptly give Embraer notice of all specific reasons for such refusal [\*\*\*].

7.5 Subsequent to a [\*\*\*] pursuant to Article 7.4, Buyer shall inspect the Aircraft [\*\*\*] ("Reinspection"). [\*\*\*].

7.6 Should [\*\*\*] fail to comply with the procedures specified in this Article 7, the [\*\*\*].

7.7 Should Buyer not perform its obligations in accordance with this Article 7 within [\*\*\*], Embraer shall [\*\*\*].

7.8 Embraer agrees to [\*\*\*].

7.9 [\*\*\*]

**8. STORAGE CHARGE** 

8.1 In the event of a [\*\*\*], a storage charge equal to [\*\*\*] shall be charged by Embraer to Buyer commencing on:

8.1.1 Buyer's failure to [\*\*\*] per the date [\*\*\*]; or

8.1.2 Buyer's default in [\*\*\*]; or

8.1.3 Buyer's failure [\*\*\*] to [\*\*\*].

8.2 Storage charges shall end as provided above [\*\*\*].

8.3 If however, Buyer [\*\*\*].

8.4 [\*\*\*].

8.5 Buyer shall pay the storage charge [\*\*\*] within [\*\*\*] after [\*\*\*].

**9. DELAYS IN DELIVERY** 

9.1 Excusable Delays:

[\*\*\*]

9.2 Non-Excusable Delays:

[\*\*\*]

9.3 Delay Due to Loss or Structural Damage of the Aircraft

[\*\*\*]

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**10. DELIVERY INSPECTION** 

10.1 Buyer is hereby permitted to have one or more authorized representatives at Embraer's facilities for a period commencing [\*\*\*]. Buyer may [\*\*\*].

10.2 Buyer shall notify Embraer of [\*\*\*] prior to the intended arrival at Embraer's facilities and [\*\*\*].

10.3 Such representatives may also be authorized to sign the acceptance and transfer of title and risk documents and accept delivery of the Aircraft pursuant to Article 7.

10.4 With respect to this Article 10, Embraer shall provide for use in accordance with the Agreement at no charge to Buyer, communication facilities (telephone, facsimile and internet connection) for Buyer's authorized representatives, as well as [\*\*\*] as may be necessary to perform acceptance tests.

10.5 Buyer's authorized representatives shall observe Embraer's administrative rules and instructions while at Embraer's facilities, and Buyer's representatives will be provided with all appropriate rules and regulations upon arrival.

10.6 Buyer's authorized representatives shall be allowed exclusively in those areas related to the subject matter hereof. Buyer agrees to hold harmless Embraer from and against all and any kind of liabilities in respect to such representatives, for whom Buyer is solely and fully responsible under all circumstances and in any instance, except to the extent caused by gross negligence or willful misconduct of Embraer, its officers, directors, employees or agents.

**11. CHANGES** 

11.1 At delivery, each Aircraft will comply with the standards defined in the applicable Attachment "A". [\*\*\*].

[\*\*\*]

11.2 Embraer can make changes in the design of the Aircraft in accordance with the terms and conditions set forth in Articles 11.2 through 11.7. The definition of which and its respective classification shall be in compliance to the Aircraft type specification, as follows:

11.2.1 Minor Changes: defined as those modifications which shall not adversely affect the Aircraft in any of the following characteristics:

[\*\*\*]

11.2.2 Major Changes: defined as those modifications which affect at least one of the topics mentioned in Article 11.2.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3 Embraer shall have the right, but not the obligation,

[\*\*\*]

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11.4 Embraer shall provide Buyer with written notice (the "Proposal of Major Change" or "PMC") of those Major Changes that are [\*\*\*]. Service bulletins that implement such AD's shall be referred to as Mandatory Service Bulletins ("MSB"). Embraer shall incorporate Mandatory Service Bulletins as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.4.1 Compliance required before [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.4.2 Compliance required after [\*\*\*].

11.5 Except for the Major Changes referred to in Article 11.4, any other Major Change such as (i) any change developed by Embraer as product improvement, (ii) any change requested by Buyer in relation to the Aircraft configuration, or [\*\*\*], shall be considered as optional and pursuant to Buyer's request, Embraer shall submit to Buyer a PMC, which shall describe all possible impacts on the provisions contained in this Agreement, including but not limited [\*\*\*] etc. Should Buyer not approve such PMC, [\*\*\*].

11.6 Any Major Change to an Aircraft, made in accordance with the foregoing paragraphs that affect the provisions of the applicable Attachment "A", shall be incorporated in said Attachment by means of an amendment. The amendment shall be submitted to Buyer [\*\*\*] prior to such Aircraft's Actual Delivery Date.

11.7 Except as [\*\*\*], should an Aircraft not comply with the terms and conditions of [\*\*\*], Buyer shall [\*\*\*] 7.

**12. WARRANTY [\*\*\*]** 

12.1 The materials and workmanship relative to the Aircraft subject to this Agreement will be warranted in accordance with the terms and conditions specified in Attachment "C".

12.2 [\*\*\*]

**13. PRODUCT SUPPORT PACKAGE** 

Embraer shall supply to Buyer the Product Support Package described in Article 2 of Attachments "B1" and "B2" hereto, as applicable, which includes Embraer's spare parts policy, the Technical Publications and the Services.

**14. ASSIGNMENT** 

14.1 [\*\*\*]

14.2 [\*\*\*]

14.3 In the event Buyer wishes to transfer or assign the [\*\*\*] to a third party in connection with the transfer of title, possession or operation of any Aircraft, Buyer shall obtain [\*\*\*].

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14.4 In any of the above cases, Buyer shall: [\*\*\*].

14.5 Notwithstanding the above, the Buyer shall not assign this Agreement, as well as any of its Attachments, with respect to any Aircraft, to [\*\*\*], any person or entity with which Embraer may be legally restricted to enter in to an agreement, to a debarred person or entity, or in case such assignment would infringe US export control regulations or any other applicable law.

14.6 Except as expressly permitted by this Article 14 or as provided by operation of law, neither Embraer's nor Buyer's rights and obligations hereunder may be assigned, conveyed, subcontracted, transferred or delegated, without the other party's prior written consent, provided that [\*\*\*].

14.7 Republic Airways Holdings Inc. ("Holdings") shall guarantee the obligations of Buyer hereunder pursuant to a guarantee in the form attached hereto as Attachment "L", and it shall be a breach of this Agreement by Buyer if such guarantee is at any time not effective in any material respect in accordance with its terms or if Holdings breaches, defaults, or fails to perform under such guarantee**.**

**15. RESTRICTIONS AND PATENT INDEMNITY** 

15.1 Claims against Buyer. Subject to the limitations and conditions set forth herein, including, without limitation Article 15.2, Embraer shall indemnify and hold harmless Buyer with respect to all third party claims, lawsuits, and liabilities based upon or arising from, or connected with, directly or indirectly, any suit, action, proceeding, or allegation that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any product or service purchased from or supplied by Embraer hereunder or any portion thereof (collectively, for the purposes of this Article 15, "Item") and/or the use or operation thereof constitutes an alleged or actual infringement of any granted or registered United States or foreign patent ("Patent Claim"), provided that from the time of design of such Item and until such Patent Claim is resolved, each of the country in which the relevant patent is held and the flag country of the Aircraft is a party to (1) the Paris Convention for the Protection of Industrial Property as amended and (2) Article 27 of the Chicago Convention on International Civil Aviation of December 7, 1944, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Aircraft software and accompanying documentation and manuals (collectively, for purposes of this Article 15, "Software"), or any part of such Aircraft Software furnished by Embraer, constitutes an alleged or actual infringement of any United States or foreign copyright rights or misappropriates any third party trade secret right under U.S. law or other foreign law ("Copyright Claim"), provided that from the time of design of such Software and until such Copyright Claim is resolved, each of the country in which the infringement claim is made and the flag country of the Aircraft is a member of the Berne Convention for the Protection of Literary and Artistic Works as amended and both countries recognize Software as a "work" under the Berne Convention.

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15.1.1 Embraer's indemnification provided in this Article 15 shall not apply to Buyer furnished or installed equipment, Items or Software not installed, used or maintained in accordance with all instructions and procedures of Embraer (as may be modified by Embraer from time-to-time), including any Buyer-furnished or Buyer modified Item or Software.

15.2 Limitations and Conditions. Buyer shall give prompt written notice to Embraer of the receipt of a notice of a suit or action against Buyer alleging a Patent Claim or Copyright Claim covered by this Article 15 or of a written notice alleging a Patent Claim or Copyright Claim covered by this Article 15, whichever occurs earlier. [\*\*\*].

At all times, Embraer shall have the right, at its option and expense, to negotiate with any party alleging a Patent Claim or Copyright Claim, assume or control the defense to any allegation of a Patent Claim or Copyright Claim, including without limitation, the right to bring a declaratory judgment or similar action, intervene in any action involving a Patent Claim or Copyright Claim, and/or attempt to resolve a Patent Claim or Copyright Claim by replacing or [\*\*\*].

Buyer shall promptly furnish to Embraer all information, documents, records, and assistance within Buyer's possession, custody or control as requested by Embraer that [\*\*\*] or material to any allegation covered by this Article 15. [\*\*\*]. Buyer shall co-operate with Embraer and shall, upon Embraer's reasonable request and at Embraer's expense, arrange for the attendance of representatives of Buyer at depositions, hearings, trials, and the like, and assist in effecting settlements, securing and giving evidence, obtaining the attendance of witnesses and in the conduct of any suits or actions covered by this Article 15.

Buyer shall obtain Embraer's written approval prior to paying, agreeing to pay, assuming any obligation or waiving any right relative to any Patent Claim or Copyright Claim.

Embraer [\*\*\*].

EMBRAER SHALL HAVE NO OBLIGATION OR LIABILITY UNDER THIS ARTICLE 15 FOR ANY LOSS OF USE, REVENUE OR PROFIT, OR FOR ANY INCIDENTAL OR CONSEQUENTIAL DAMAGES. THE OBLIGATIONS AND REMEDIES OF BUYER SET FORTH IN THIS ARTICLE 15 ARE EXCLUSIVE AND IN SUBSTITUTION FOR, AND BUYER HEREBY WAIVES, RELEASES AND RENOUNCES, ALL OTHER INDEMNITIES, OBLIGATIONS AND LIABILITES OF EMBRAER AND ALL OTHER RIGHTS, CLAIMS AND REMEDIES OF BUYER AGAINST EMBRAER, EITHER EXPRESS OR IMPLIED, ARISING BY LAW OR OTHERWISE, WITH RESPECT TO ANY ACTUAL OR ALLEGED INFRINGEMENT OF ANY INTELLECTUAL PROPERTY RIGHT BY ANY PRODUCT OR SERVICE PROVIDED UNDER THIS AGREEMENT.

15.3 [\*\*\*]

15.4 [\*\*\*]

**16. INTENTIONAL OMITTED** 

**17. TAXES** 

[\*\*\*]

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**18. APPLICABLE LAW** 

This Agreement, and the rights and obligations of the Parties hereunder, shall in all respects be governed by, and construed and interpreted in accordance with the laws of the State of New York, including all matters of construction, validity and performance.

THE UNITED NATIONS CONVENTION ON CONTRACTS FOR THE INTERNATIONAL SALE OF GOODS WILL NOT APPLY TO ANY TRANSACTIONS RELATED TO THIS AGREEMENT.

**19. JURISDICTION** 

Each Party hereto hereby irrevocably agrees, accepts and submits to, for itself and in respect of any of its property, generally and unconditionally, the exclusive jurisdiction of the courts of the State of New York in the City and County of New York and of the United States for the Southern District of New York, in connection with any legal action, suit or proceeding with respect to any matter relating to or arising out of or in connection with this Agreement and fully waives any objection to the venue of such courts. Furthermore to the fullest extent permitted by applicable law, each Party hereby waives, and agrees not to assert, by way of motion, as a defense, or otherwise, in any such suit action or proceeding any claim that it is not personally subject to the jurisdiction of the above named courts, that the suit, action or proceeding is brought in an inconvenient forum, or that the venue of the suit, action or proceeding is improper.

EACH PARTY HERETO HEREBY EXPRESSLY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW ANY RIGHT IT MAY HAVE TO A JURY TRIAL IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY.

**20. SOVEREIGN IMMUNITY** 

Embraer represents and warrants that, under the laws of the United States or of any other jurisdiction affecting Embraer, it is subject to private commercial law and suit, and is not entitled to sovereign immunity under any such laws, for its performance of its obligations under this Agreement. Embraer's performance of its obligations hereunder constitutes commercial acts done for commercial purposes.

**21. TERMINATION** 

[\*\*\*]

**22. PURCHASE RIGHT AIRCRAFT** 

22.1 Embraer agrees that Buyer shall have the right to purchase [\*\*\*] (the "Purchase Right Aircraft") [\*\*\*].

22.2 [\*\*\*]

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22.3 [\*\*\*]

22.4 [\*\*\*]

22.5 [\*\*\*]

22.6 [\*\*\*]

22.7 [\*\*\*]

22.8 [\*\*\*]

**23.** [\*\*\*]

**24. NOTICES** 

All notices permitted or required hereunder shall be in writing in the English language and sent, by registered mail, express courier or e-mail, to the attention of the Vice President, Contracts – Commercial Aviation as to Embraer and of the President as to Buyer, to the addresses indicated below or to such other address as either Party may, by written notice, designate to the other. In the event notice is issued by registered mail or express courier, it shall be deemed received on the day on which the Party receiving such notice executes the delivery receipt. In the event notice is issued by e-mail, it shall be deemed received on the day on which the sender sends the e-mail.

<u>EMBRAER</u>: EMBRAER S.A.

Av. Brigadeiro Faria Lima, 2170

12.227-901 São José dos Campos – SP – Brazil

Attention: Director Contracts

Telephone: [\*\*\*]

E-mail: [\*\*\*]

(or any other address, designated person and email address as Embraer may inform Buyer by a written notice).

<u>BUYER:</u> Republic Airline Inc.

8909 Purdue Road, Suite 300 - Indianapolis, Indiana 46268

Attention: President

Tel: [\*\*\*]

E-mail: [\*\*\*]

(or any other address, designated person and email address as Buyer may inform Embraer by a written notice)

with a copy to: Republic Airline Inc.

8909 Purdue Road, Suite 300 - Indianapolis, Indiana 46268

Attention: General Counsel

Tel: [\*\*\*]

E-mail: [\*\*\*]

(or any other address, designated person and email address as Buyer may inform Embraer by a written notice)

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**25. CONFIDENTIALITY** 

Neither Party shall have the right to disclose the terms of this Agreement except as required by law. To the fullest extent permitted by law, except as aforesaid, neither Party shall disclose any portion of this Agreement or its Attachments, amendments or any other supplement, to any third party without the other Party's prior written consent, other than [\*\*\*]. Without limiting the foregoing, in the event either Party is legally required to disclose the terms of this Agreement, the Parties agree to [\*\*\*] to request confidential treatment of the clauses and conditions of this Agreement relevantly designated by either Party as confidential. [\*\*\*].

**26. INTEGRATED AGREEMENT** 

All Attachments referred to in this Agreement and attached hereto are, by such reference and attachment, incorporated in this Agreement.

**27. NEGOTIATED AGREEMENT** 

This Agreement, including all of its Attachments, has been the subject of discussion and negotiation and is fully understood by the Parties, and the rights, obligations and other agreements of the Parties contained in this Agreement are the result of complete discussion and negotiation between the Parties.

**28. COUNTERPARTS** 

This Agreement may be signed by the Parties in any number of separate counterparts with the same effect as if the signatures thereto and hereto were upon the same instrument and all of which when taken together shall constitute one and the same instrument.

**29. ENTIRE AGREEMENT** 

This Agreement constitutes the entire agreement of the Parties with respect to the sales described as its subject and supersedes all previous and connected negotiations, representations and agreements between the Parties. This Agreement may not be altered, amended or supplemented except by a written instrument executed by the Parties.

**30. NO WAIVER** 

Any Party's forbearance from exercising any claim or remedy provided for herein shall not be deemed a waiver of such claim or remedy, and shall not relieve the other Party from the performance of such obligation at any subsequent time or from the performance of any of its other obligations hereunder.

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**31. REPRESENTATIONS AND WARRANTIES** 

31.1 Effective as of the date of this Agreement and as of the Actual Delivery Date of each Aircraft, Embraer represents and warrants that:

31.1.1 Embraer is a corporation duly organized, validly existing and in good standing under the laws of Brazil, is the manufacturer of the Embraer 175LR model aircraft, Embraer 175LL model aircraft [\*\*\*] has all necessary corporate power and authority to conduct the business in which it is currently engaged and to enter into and perform its obligations under this Agreement.

31.1.2 Embraer has taken, or caused to be taken, all necessary corporate action to authorize the execution and delivery of this Agreement and the performance of its obligations hereunder.

31.1.3 The execution and delivery by Embraer of this Agreement, the performance by Embraer of its obligations hereunder and the consummation by Embraer of the transactions contemplated hereby, do not and will not (A) violate or conflict with any provision of the constitutional documents of Embraer, (B) violate or conflict with any law, rule, or regulation applicable to or binding on Embraer or (C) violate or constitute any breach or default (other than a breach or default that would not (x) result in a material adverse change to Embraer or (y) adversely affect Embraer's ability to perform any of its obligations hereunder),under any agreement, instrument or document to which Embraer is a party or by which Embraer or any of its properties is or may be bound or affected.

31.1.4 The execution and delivery by Embraer of this Agreement, the performance by Embraer of its obligations hereunder and the consummation by Embraer of the transactions contemplated hereby do not and will not require the consent, approval or authorization of, or the giving of notice to, or the registration with, or the recording or filing of any documents with, or the taking of any other action in respect of, (A) any trustee or other holder of any indebtedness or obligation of Embraer, (B) any national, state or municipal government regulatory, judicial, or administrative entity of competent jurisdiction, or (C) any other party.

31.1.5 This Agreement has been duly authorized, executed and delivered by Embraer and, assuming the due authorization, execution and delivery hereof by the other Party constitutes the legal, valid and binding obligation of Embraer enforceable against Embraer in accordance with the terms hereof, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, receivership, moratorium and other similar laws affecting the rights of creditors generally and general principles of equity, whether considered in a proceeding at law or in equity.

31.1.6 Each of the foregoing representations and warranties shall survive the execution and delivery of this Agreement and any termination hereof.

Purchase Agreement COM0448-18 – Execution Version Page 16 of 21

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31.2 Effective as of the date of this Agreement and as of the Actual Delivery Date of each Aircraft, Buyer represents and warrants that:

31.2.1 Buyer is a corporation duly organized and validly existing under the laws of the its state of incorporation in the United States and has all necessary corporate power and authority to conduct the business in which it is currently engaged and to enter into and perform its obligations under this Agreement.

31.2.2 Buyer has taken, or caused to be taken, all necessary corporate action, including any required shareholder approval, to authorize the execution and delivery of this Agreement and the performance of its obligations hereunder.

31.2.3 The execution and delivery by Buyer of this Agreement, the performance by Buyer of its obligations hereunder and the consummation by Buyer of the transactions contemplated hereby, do not and will not (A) violate or conflict with any provision of the constitutional documents of Buyer, (B) violate or conflict with any law, rule, or regulation applicable to or binding on Buyer or (C) violate or constitute any breach or default (other than a breach or default that would not (x) result in a material adverse change to Buyer or (y) adversely affect Buyer's ability to perform any of its obligations hereunder),under any agreement, instrument or document to which Buyer is a party or by which Buyer or any of its properties is or may be bound or affected.

31.2.4 The execution and delivery by Buyer of this Agreement, the performance by Buyer of its obligations hereunder and the consummation by Buyer of the transactions contemplated hereby do not and will not require the consent, approval or authorization of, or the giving of notice to, or the registration with, or the recording or filing of any documents with, or the taking of any other action in respect of, (A) any trustee or other holder of any indebtedness or obligation of Buyer, (B) any national, federal, state or local government regulatory, judicial, or administrative entity of competent jurisdiction (other than registration of the Aircraft with FAA and filing and recordation of an FAA Bill of Sale for the Aircraft with the FAA) or (C) any other party.

31.2.5 This Agreement has been duly authorized, executed and delivered by Buyer and, assuming the due authorization, execution and delivery hereof by the other Party constitutes the legal, valid and binding obligation of Buyer enforceable against Buyer in accordance with the terms hereof, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, receivership, moratorium and other similar laws affecting the rights of creditors generally and general principles of equity, whether considered in a proceeding at law or in equity.

31.2.6 Each of the foregoing representations and warranties shall survive the execution and delivery of this Agreement and any termination hereof.

**32. COMPLIANCE WITH LAWS** 

32.1 Each Party represents and warrants to the other Party hereto that, in connection with this Agreement (including the negotiation, execution, or performance thereof), it has not violated and will not violate the ABC Legislation (defined below).

Purchase Agreement COM0448-18 – Execution Version Page 17 of 21

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32.2 Each Party hereto confirms that it has in place or will use reasonable efforts to put into place, to the extent they do not exist today, reasonably designed and implemented policies and procedures for compliance with ABC Legislation (including, but not limited to, a code of ethics (or equivalent document) and an anti-corruption policy (or equivalent document)). Each Party hereto confirms that it will comply strictly to such policies and procedures with regard to the other Party. In the event either Party has reason to believe in good faith that the other Party's policies and procedures are insufficient or not being complied with, then the compliance administrator for such Party shall be made available to discuss the other Party's concerns.

32.3 Each Party agrees to make, keep, and maintain accurate and reasonably detailed books and financial records regarding its performance under, and payments made relating to this Agreement. Each Party shall devise and maintain a system of internal accounting controls sufficient to meet the accounting requirements and satisfy the laws of the country where it is incorporated.

32.4 The foregoing representations are made on a continuing basis and shall hold true until termination or expiration of this Agreement.

32.5 Where:

"ABC Legislation" means with respect to a Party, any (a) legislation enacted in the country in which that Party is incorporated; and (b) the U.S. Foreign Corrupt Practices Act.

**33. FOREIGN CONTENT** 

The Aircraft contain commodities, technology and software that were exported from the United States and other countries in accordance with their respective export control regulations. Diversion contrary to U.S. law and/or any other applicable law is prohibited.

Buyer agrees to comply with any export and re-export control laws of the United States and other countries applicable to the Aircraft, its parts, components, technology and software and, upon Embraer's request, to execute and deliver to Embraer the relevant end-user certificates necessary for the export and transfer of the Aircraft to Buyer.

**34. SEVERABILITY** 

If any provision or part of a provision of this Agreement or any of the Attachments shall be, or be found by any authority or court of competent jurisdiction to be, illegal, invalid or unenforceable, such illegality, invalidity or unenforceability shall not affect the other provisions or parts of such provisions of this Agreement, all of which shall remain in full force and effect.

INTENTIONALLY LEFT BLANK - SIGNATURE PAGE FOLLOWS

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IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed and delivered by their proper and duly authorized officers and to be effective as of the day and year first above written.

---

| | | | |
|:---|:---|:---|:---|
| **EMBRAER S.A.** | **EMBRAER S.A.** | **REPUBLIC AIRLINE INC.** | **REPUBLIC AIRLINE INC.** |
| By: | /s/ John Slattery | By: | /s/ S. Wade Sheek |
| Name: | John Slattery | Name: | S. Wade Sheek |
| Title: | President & CEO Commercial Aviation | Title: | VIP, General Counsel |
| By: | /s/ Simon Newitt |  |  |
| Name: | Simon Newitt |  |  |
| Title: | Vice President, Contracts Commercial Aviation |  |  |
| Place: |  | Place: |  |

---

Purchase Agreement COM0448-18 – Execution Version Page 19 of 21

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**ATTACHMENT "A1"** 

**E175LR AIRCRAFT CONFIGURATION** 

**1.** **STANDARD AIRCRAFT** 

The EMBRAER 175 LR Aircraft (the "Aircraft") shall be manufactured according to (i) the standard configuration specified in the Technical Description TD 175 – Rev 23, December 2017, which although not attached hereto, is incorporated herein by reference, and (ii) the characteristics described in the items below.

**2.** **OPTIONAL EQUIPMENT** 

[\*\*\*]

**3.** **EXTERIOR FINISHING** 

The fuselage of the Aircraft shall be painted according to Buyer's colour and paint scheme, which shall be supplied to Embraer by Buyer on or before [\*\*\*]. The wings and the horizontal stabilizer shall be supplied in the standard colours, i.e., grey BAC707.

[\*\*\*]

**4.** **INTERIOR DETAILING** 

Buyer shall inform Embraer up to the customer check list definition ("CCL"), to be held no later than [\*\*\*].

**5.** **BUYER FURNISHED EQUIPMENT (BFE) AND BUYER INSTALLED EQUIPMENT (BIE)** 

The first Aircraft will have electrical galley inserts, such as ovens, coffee makers, hot jugs and water boilers as BFE for certification purpose. Buyer shall deliver such electrical inserts, [\*\*\*].

The trolleys, standard units and the equipment classified as operational requirements shall be BIE items.

[\*\*\*]

**6.** **EMBRAER RIGHT TO PERFORM FOR BUYER** 

If Buyer fails to choose or define the exterior, interior finishing, emergency equipment and/or galley inserts of any Aircraft or fails to promptly inform Embraer of its choice or definition within [\*\*\*], Embraer shall have the right to tender the Aircraft for delivery, as the case may be, with a white overall fuselage colour, fitted with an interior finishing selected by Embraer, and/or with provisions/installation for emergency equipment and galley inserts from the choices available at Embraer, at its reasonable discretion.

In any such cases, no compensation to Buyer or reduction shall be applied [\*\*\*]. Buyer agrees hereby that any action taken by Embraer pursuant to this Article shall not constitute a waiver or release of any obligation of Buyer under the Purchase Agreement, nor a waiver of any event of default which may arise out of Buyer's non performance of

Attachment "A1" to PA COM0448-18 – Execution Version Page 1 of 3

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**ATTACHMENT "A1"** 

**E175LR AIRCRAFT CONFIGURATION** 

such obligation, nor an election or waiver by Embraer of any remedy or right available to Embraer under the Purchase Agreement. Further, Embraer shall be entitled to charge Buyer for reasonable expenses incurred by Embraer in connection with the performance of or compliance with such agreement, as the case may be, payable by Buyer within [\*\*\*] from the presentation of the respective invoice by Embraer to Buyer.

**7.** **REGISTRATION MARKS, TRANSPONDER AND ELT CODES:** 

The Aircraft shall be delivered to Buyer with the registration marks painted on them. The registration marks, the transponder code and ELT protocol coding shall be supplied to Embraer by Buyer no later than [\*\*\*] before each relevant Aircraft's Contractual Delivery Date. Embraer shall be entitled to tender the Aircraft for delivery to Buyer without registration marks, with an inoperative transponder and without setting the ELT protocol coding in case Buyer fails to supply such information to Embraer in due time.

**8.** **EXPORT CONTROL ITEMS** 

The Aircraft contains IRU (Inertial Reference Unit) manufactured by Honeywell International, which is subject to export control under United States of America law. The Aircraft contains an IESI (Integrated Electronic Standby Instrument System) model manufactured by Thales which is not subject to export control, however in the event this IESI model is replaced by any IESI with the QRS-11 gyroscopic microchip, such component is subject to export control under United States of America law.

Transfer or re-export of such items (whether or not incorporated into the Aircraft), as well as their related technology and software may require prior authorization from the US Government.

IT IS HEREBY AGREED AND UNDERSTOOD BY THE PARTIES THAT IF THERE IS ANY CONFLICT BETWEEN THE TERMS OF THIS ATTACHMENT "A1" AND THE TERMS OF THE TECHNICAL DESCRIPTION ABOVE REFERRED, THE TERMS OF THIS ATTACHMENT "A1" SHALL PREVAIL.

[\*\*\*]

Attachment "A1" to PA COM0448-18 – Execution Version Page 2 of 3

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**ATTACHMENT "B1"** 

**FERRY FLIGHT ASSISTANCE AND PRODUCT** 

**SUPPORT PACKAGE ([\*\*\*])** 

This Attachment shall be applicable to the Aircraft and the E175LL Conversion Aircraft (together, the "Aircraft").

**1.** **FERRY FLIGHT ASSISTANCE** 

1.1 Embraer will make available to Buyer [\*\*\*] the services of a third party representative at the airport in which
the Aircraft will make the last stop in Brazilian territory, to assist Buyer's crew in the interface with Brazilian customs clearances. Such services [\*\*\*]. Buyer shall also be responsible for the [\*\*\*] and overflight permits required for the
ferry flight.

If it is necessary that any ferry equipment be installed by Embraer in the Aircraft for the ferry flight between Brazil and final destination, Embraer will make available, upon Buyer's written request, standard and serviceable ferry equipment to Buyer (hereinafter the "Kit") [\*\*\*]. In this case, Buyer shall immediately upon the Aircraft's arrival at its final destination, remove the Kit from the Aircraft and return it to a freight forwarder agent as determined by Embraer, in FCA (Free Carrier - Incoterms 2010) condition.

In case Embraer provides the Kit to Buyer and (i) the Kit is utilized, whether totally or not, as determined in Embraer's reasonable discretion, or (ii) the Kit is not used and is not returned to Embraer freight forwarder agent complete and in the same condition as it was delivered to Buyer within [\*\*\*] after Aircraft arrival in final destination, Buyer shall pay Embraer the value of a new Kit upon presentation of an invoice by Embraer and then the original Kit shall become the property of Buyer. In addition, the availability of another Kit for the next occurring Aircraft ferry flight after such period shall not be an Embraer obligation.

**2.** **PRODUCT SUPPORT PACKAGE** 

2.1 MATERIAL SUPPORT

2.1.1 SPARES POLICY

Embraer guarantees the supply of spare parts, ground support equipment and tooling, except engines and their accessories, hereinafter referred to as "Spare(s)", for the Aircraft for a period of [\*\*\*] after production of the last aircraft of the same [\*\*\*]. Such Spares shall be supplied according to the prevailing availability, sale conditions, delivery schedule and effective price on the date of acceptance by Embraer of a purchase order placed by Buyer for any of such items. The Spares may be supplied either by Embraer in Brazil or through its subsidiaries or distribution centers located abroad.

The sale and export of Spares to Buyer may be subject to export controls and other export documentation requirements of the United States and other countries. Buyer agrees that neither Embraer nor any of its subsidiaries, affiliates or Vendors shall be liable for failure to provide Spares and/or services, including without limitation the Services, under this Agreement or otherwise as a result of any ruling, decision, order,

Attachment "B1" to PA COM0448-18 – Execution Version Page 1 of 6

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**ATTACHMENT "B1"** 

**FERRY FLIGHT ASSISTANCE AND PRODUCT** 

**SUPPORT PACKAGE ([\*\*\*])** 

license, regulation, or policy of the competent authorities prohibiting the sale, export, re-export, transfer, or release of a Spare or its related technology. Buyer shall comply with any conditions and requirements imposed by the authorities with jurisdiction over Buyer and, upon Embraer's request, shall execute and deliver to Embraer any relevant end-user certificates.

Export of (i) IESI (Integrated Electronic Standby Instrument System) manufactured by Thales Avionics with an embedded QRS-11 gyroscopic microchip used for emergency backup and flight safety information and (ii) IRU (Inertial Reference Unit) manufactured by Honeywell International are subject to export control under United States law. Transfer or re-export of such items, as well as their related technology and software, may require prior authorization from the U.S. Government.

2.1.2 RSPL

Upon Buyer's request, Embraer shall present to Buyer a recommended Spare provisioning list (the "RSPL"). The objective of the RSPL is to provide Buyer with a detailed list of Spares that will be necessary to support the initial and long term operation and maintenance of the Aircraft by Buyer. Such recommendation will be based on the experience of Embraer and on the operational parameters established by Buyer.

Embraer will provide a qualified team to attend pre-provisioning conferences as necessary to discuss Buyer requirements and the RSPL as well as any available spare parts support programs offered by Embraer. Such meeting shall be held at a mutually agreed upon place and time, but in no event less than [\*\*\*] prior to the Contractual Delivery Date of the first Aircraft.

Buyer may acquire the Spares contained in the RSPL directly from Embraer or directly from Vendors. Spares contained in the RSPL for which Buyer places a purchase order with Embraer (the "IP Spares") will be delivered by Embraer to Buyer within [\*\*\*], at a fill rate of [\*\*\*], in [\*\*\*] condition.

In order to ensure the availability of IP Spares in accordance with the foregoing at the time of entry into service of the first Aircraft, Buyer commits to place a purchase order with Embraer for those IP Spares Buyer has decided to acquire from Embraer, as soon as practical and in any event not less than [\*\*\*] prior to the Contractual Delivery Date of the first Aircraft. At the reasonable request of Embraer, Buyer shall demonstrate that it has acquired or ordered IP Spares from sources other than Embraer to complement the RSPL in a timely manner.

In case Buyer defines a new configuration which differs from current Attachments A1 and A2 and the changes in such new configuration are not related to interior items (ATA 25 items), upon Buyer's written request Embraer shall provide an updated RSPL.

[\*\*\*]

Attachment "B1" to PA COM0448-18 – Execution Version Page 2 of 6

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**ATTACHMENT "B1"** 

**FERRY FLIGHT ASSISTANCE AND PRODUCT** 

**SUPPORT PACKAGE ([\*\*\*])** 

2.1.3 OTHER SPARES SERVICES

AOG services: Embraer will maintain a call center for the AOG services, twenty four (24) hours a day, seven (7) days a week. All the contacts with the call center can be made through regular direct lines in Brazil (phone and fax), e-mail and also through the FlyEmbraer e-commerce system in case Buyer subscribes to this service. The information concerning regular direct lines and e-mail address shall be obtained through the Customer Account Manager designated to Buyer by Embraer or through Embraer's Customer Service offices.

Embraer will, subject to availability, deliver Spares requested as AOG orders in [\*\*\*], at the Embraer's facility nearest to the Buyer's premises informed in Buyer's shipping instructions.

Routine and/or critical Spares: Embraer will deliver routine and/or critical Spares (other than AOG Spares) in [\*\*\*], Embraer's facility, from the location were such Spares are available. Routine and/or critical Spares shall be delivered according to their lead times, depending upon the purchase order priority. All Spares will be delivered with the respective authorized release certificate or any similar document issued by a duly authorized person.

[\*\*\*]

2.2 AIRCRAFT TECHNICAL PUBLICATIONS:

2.2.1 EMBRAER PUBLICATIONS AND PERFORMANCE SOFTWARE

Embraer shall provide [\*\*\*] a license to access the operational and maintenance publications applicable thereto, through the web-based FlyEmbraer portal or any successor portal ("FlyEmbraer"). Such operational and maintenance publications will be issued under the applicable specification, in the English language (the "Technical Publications").

Embraer shall provide [\*\*\*]:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*]

[\*\*\*]

Such access to the Technical Publications and to download the Software (and any revision and/or update thereof) is conditioned upon Buyer's [\*\*\*], by a person legally qualified to do so, as appointed in writing by Buyer.

[\*\*\*]

[\*\*\*] extra hardcopy [\*\*\*].

Attachment "B1" to PA COM0448-18 – Execution Version Page 3 of 6

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**ATTACHMENT "B1"** 

**FERRY FLIGHT ASSISTANCE AND PRODUCT** 

**SUPPORT PACKAGE ([\*\*\*])** 

2.2.2 VENDOR PUBLICATIONS

The technical publications regarding parts, systems or equipment supplied by Vendors and installed by Embraer in the Aircraft during the manufacturing process, will be supplied to Buyer directly by such Vendors, in their original content and available format/media and/or [\*\*\*]. Vendors are also responsible to keep publications updated through a direct communication system with Buyer. [\*\*\*].

[\*\*\*]

2.2.3 SERVICES

[\*\*\*] except as set forth below, Embraer shall provide the Services described in this Article 2.3, in accordance with the terms and conditions below:

2.3 Familiarization Programs:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. The familiarization programs specified below are offered [\*\*\*], except for any travel, board and lodging
expenses of Buyer's trainees and except for any operational and incidental expenses related to training requirements of Buyer, whether imposed by the Airworthiness Authority or other authority of Buyer's country having jurisdiction, and
which differ from or are supplementary to the familiarization programs described herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. The familiarization programs shall, at Embraer's criteria, be conducted [\*\*\*], in accordance with the
scope, syllabi and duration of the training program developed [\*\*\*]. Such familiarization programs shall be in accordance with all applicable regulations and requirements of and approved by the Airworthiness Authority. [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. All familiarization programs shall be provided by [\*\*\*]. Buyer shall be [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Notwithstanding the eventual use of the term "training" in this paragraph 2.3.1, the intent of this
program is solely to familiarize Buyer's pilots, mechanics, employees or representatives with the operation and maintenance of the Aircraft. It is not the intent of Embraer to provide basic training ("ab-initio") to any representatives of Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Any trainee appointed by Buyer for participation in any of the familiarization programs shall be duly qualified
per the governing body in the country of Buyer's operation and fluent in the English language as all training will be conducted in, and all training material will be presented in, such language. Pilots and mechanics shall also have [\*\*\*] in the
[\*\*\*], as applicable, of [\*\*\*]. Neither [\*\*\*] make any representation or give any guarantee regarding the successful completion of any training program by Buyers trainees, for which Buyer is solely responsible.

Attachment "B1" to PA COM0448-18 – Execution Version Page 4 of 6

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**ATTACHMENT "B1"** 

**FERRY FLIGHT ASSISTANCE AND PRODUCT** 

**SUPPORT PACKAGE ([\*\*\*])** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. The familiarization programs shall be carried out prior to the Contractual Delivery Date of [\*\*\*], in
accordance with a schedule to be agreed upon by Buyer and Embraer not less than [\*\*\*] prior to the intended beginning of such training schedule. Buyer shall give [\*\*\*] advance notice to Embraer of the full name and professional identification data
of each trainee. Substitutions of appointed trainees will [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. Training entitlements regarding each Aircraft [\*\*\*] following [\*\*\*] shall [\*\*\*].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. The familiarization programs referred to above covers:

---

| | |
|:---|:---|
| h.1 | [\*\*\*] pilot familiarization program for up to [\*\*\*] including (i) ground familiarization [\*\*\*] and, (ii) [\*\*\*] each, totalling [\*\*\*] per trainee, half in the right-hand seat and half in the left-hand seat, which shall be performed in groups of [\*\*\*] Buyer's pilot per session. Simulator training includes the [\*\*\*] and will be carried out [\*\*\*]. Buyer shall be solely responsible for selecting experienced training pilots that are fluent in English and duly qualified in multi-engine aircraft operations, navigation and communication.  |

---

---

| | |
|:---|:---|
| h.2 | [\*\*\*] maintenance familiarization course for up to [\*\*\*] **qualified mechanics** [\*\*\*] entitled to [\*\*\*] of the following modules to be chosen by Buyer:  |

---

[\*\*\*]

This program shall consist of classroom familiarization with Aircraft systems and structures and shall be in accordance with ATA specification 104, level III.

The presence of Buyer's authorized trainees shall be allowed exclusively in those areas related to the training as specified in the standard procedures of Embraer or the applicable training provider available to the trainees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. [\*\*\*]

2.3.2 Account Manager:

Embraer shall assign [\*\*\*] Account Manager to support Buyer shortly after execution of the Purchase Agreement and to support the operations of all Aircraft in Buyer's fleet in revenue service for passenger transportation. The Account Manager [\*\*\*].

2.3.3 Remote Technical and Engineering Support

Embraer shall provide remote technical and engineering support services, twenty-four (24) hours a Day and seven (7) Days a week, for airframe and systems. This service may [\*\*\*].

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**ATTACHMENT "B1"** 

**FERRY FLIGHT ASSISTANCE AND PRODUCT** 

**SUPPORT PACKAGE ([\*\*\*])** 

Technical and engineering support is also available to assist Buyer [\*\*\*].

Attachment "B1" to PA COM0448-18 – Execution Version Page 6 of 6

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**EXHIBIT 1 – SPECIAL INSURANCE CLAUSES** 

Buyer shall include the following clauses in its Hull and Comprehensive Airline Liability insurance policies covering the Aircraft:

a) Hull All Risks Policy, including War, Hi-jacking and Other Perils.

[\*\*\*]

b) Comprehensive Airline Liability Policy [\*\*\*].

[\*\*\*]

c) Notwithstanding anything to the contrary as specified in the Policy or any endorsement thereof, the coverage
stated in paragraphs a) and b) above, shall not be cancelled or modified by the Insurer, without [\*\*\*] advance written notice to Embraer to such effect.

This Endorsement attaches to and forms part of Policy No. ______________, and is effective from the ____ day of ______, 20__.

[\*\*\*]

Exhibit 1 to Attachment "B1" to PA COM0448-18 – Execution Version Page 1 of 1

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**ATTACHMENT "C"** 

**WARRANTY - MATERIAL AND WORKMANSHIP** 

1) Embraer, subject to the conditions and limitations hereby expressed, warrants the Aircraft subject of the Purchase Agreement, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. For a period of [\*\*\*] from the date of delivery to Buyer, each Aircraft will be free from:

Defects in materials, workmanship and manufacturing processes in relation to parts manufactured by Embraer or by its subcontractors holding an Embraer part number;

Defects inherent to the design of the Aircraft and its parts designed or manufactured by Embraer or by its subcontractors holding an Embraer part number.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. For a period of [\*\*\*] from the date of delivery to Buyer, each Aircraft will be free from:

Defects in operation of Vendor manufactured parts, not including the Engines, Auxiliary Power Unit (APU) and their accessories ("Vendor Parts"), as well as failures of [\*\*\*].

Defects due to non-conformity of Vendor Parts to the technical specification referred to in the Purchase Agreement of the Aircraft.

Once the above-mentioned periods have expired, Embraer will transfer to Buyer the original Warranty issued by the Vendors, if it still exists.

2) Embraer [\*\*\*]:

[\*\*\*]

3) The obligations of Embraer as expressed in this Warranty are [\*\*\*]. The defective parts shall be returned to Embraer, its controlled subsidiaries and affiliates which sold such part, or if approved by Embraer to the Vendor, within [\*\*\*]. Should the defective part not be returned to Embraer within such [\*\*\*] period, Embraer may have the right, at its sole discretion, to deny the warranty claim. [\*\*\*] 

NOTE: Notification of any defect claimed under this item 3 must be given to Embraer within [\*\*\*] after such defect is found. [\*\*\*].

Freight, insurance, taxes and other costs [\*\*\*].

Embraer [\*\*\*] shall.

Parts supplied to Buyer as replacement for defective parts or parts repaired under this warranty are warranted for the balance of [\*\*\*].

Attachment "C" to PA COM0448-18 – Execution Version Page 1 of 3

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**ATTACHMENT "C"** 

**WARRANTY - MATERIAL AND WORKMANSHIP** 

4) Embraer will accept no warranty claims under any of the circumstances listed below [\*\*\*]:

[\*\*\*]

5) This Warranty does not apply to [\*\*\*].

6) The Warranty hereby expressed is established between Embraer and Buyer, and it cannot be transferred or assigned to others, except according to Article 14 of the Purchase Agreement.

7) THE WARRANTIES, OBLIGATIONS AND LIABILITIES OF EMBRAER AND REMEDIES OF BUYER SET FORTH IN THIS WARRANTY CERTIFICATE ARE EXCLUSIVE AND IN SUBSTITUTION FOR, AND BUYER HEREBY WAIVES, RELEASES AND RENOUNCES, ALL OTHER WARRANTIES, OBLIGATIONS AND LIABILITIES OF EMBRAER AND ANY ASSIGNEE OF EMBRAER AND ALL OTHER RIGHTS, CLAIMS AND REMEDIES OF BUYER AGAINST EMBRAER OR ANY ASSIGNEE OF EMBRAER, EXPRESS OR IMPLIED, ARISING BY LAW OR OTHERWISE, WITH RESPECT TO ANY NON-CONFORMANCE OR DEFECT OR FAILURE OR ANY OTHER REASON IN ANY AIRCRAFT OR OTHER THING DELIVERED UNDER THE PURCHASE AGREEMENT, INCLUDING DATA, DOCUMENT, INFORMATION OR SERVICE, INCLUDING BUT NOT LIMITED TO: 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. ANY IMPLIED WARRANTY ARISING FROM COURSE OF PERFORMANCE, COURSE OF DEALING OR USAGE OF TRADE;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. ANY OBLIGATION, LIABILITY, RIGHT, CLAIM OR REMEDY IN TORT, WHETHER OR NOT ARISING FROM THE NEGLIGENCE OR OTHER
RELATED CAUSES OF EMBRAER OR ANY ASSIGNEE OF EMBRAER, WHETHER ACTIVE, PASSIVE OR IMPUTED; AND

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. ANY OBLIGATION, LIABILITY, RIGHT, CLAIM OR REMEDY FOR LOSS OF OR DAMAGE TO ANY AIRCRAFT, FOR LOSS OF USE,
REVENUE OR PROFIT WITH RESPECT TO ANY AIRCRAFT OR FOR ANY OTHER DIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES.

8) No representative or employee of Embraer is authorized to establish any other warranty than the one hereby expressed, nor to assume any additional obligation, relative to the matter, in the name of Embraer and therefore any such statements eventually made by, or in the name of Embraer, shall be void and without effect. 

[\*\*\*]

Attachment "C" to PA COM0448-18 – Execution Version Page 2 of 3

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**ATTACHMENT "E"** 

**FIRM AIRCRAFT DELIVERY SCHEDULE** 

[\*\*\*]

Attachment "E" to PA COM0448-18 – Execution Version Page 1 of 1

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**ATTACHMENT "J" – APPOINTMENT OF AUTHORIZED** 

**REPRESENTATIVE** 

Republic Airlines Inc, a company organized and existing under the laws of Indiana ("Buyer"), with its principal place of business at 8909 Purdue Road, Suite 300, Indianapolis, Indiana 46268, United States, hereby designates and appoints _________________ as the true and lawful authorized representative ("Authorized Representative") of Buyer for the purpose of doing all such acts and executing and delivering all such documents as may be deemed necessary or appropriate to inspect, accept and take delivery from EMBRAER S.A. ("Embraer"), on behalf of and in the name of Buyer, of the Embraer Model EMBRAER_____ aircraft having Manufacturer's Serial No. _______ (including the engines, appliances and parts installed thereon, the "Aircraft"), as defined in that certain Purchase Agreement COM0448-18 between Republic Airline Inc. and Embraer dated December __, 2018, including the authority to accept delivery of said Aircraft, and to execute and deliver any additional documents with respect to the delivery for said Aircraft in such form as such authorized representative executing the same shall deem appropriate.

Dated: __________ __, 20__

---

| | |
|:---|:---|
| By: |  |
|  | Name: |
|  | Title: |

---

The foregoing appointment is hereby accepted

Name:

Attachment "J" to PA COM 0448-18 – Execution Version Page 1 of 1

------

**ATTACHMENT "K" – FORM OF WARRANTY BILL OF SALE** 

KNOW ALL MEN BY THESE PRESENTS THAT, Embraer S.A. ("EMBRAER"), a Brazilian company, whose address Av. Brigadeiro Faria Lima, 2170 - Putim, São José dos Campos, São Paulo, Brazil, is the owner of good and marketable title to that certain EMBRAER_____aircraft bearing Manufacturer's Serial No. ___________, with two General Electric CF34-___ engines bearing manufacturer's serial numbers [________] and [________], and all appliances, parts, instruments, appurtenances, accessories, furnishings and/or other equipment or property incorporated in or installed on or attached to said aircraft and engines (hereinafter collectively referred to as the "Aircraft") to be sold by EMBRAER under the Purchase Agreement COM0448-18, dated as of December __, 2018 by and between EMBRAER and Republic Airline Inc. ("Agreement").

THAT for and in consideration of the sum of US$10.00 and other valuable consideration, receipt of which is hereby acknowledged, EMBRAER does this __________ day of __________, 20__, grant, convey, transfer, bargain and sell, deliver and set over to _________ ("BUYER") and unto its successors and assigns forever, all of EMBRAER's rights, title and interest in and to the Aircraft.

THAT EMBRAER hereby represents and warrants to BUYER, its successors and assigns:

(i) that EMBRAER has good and marketable title to the Aircraft and the good and lawful right to the Aircraft and
the good and lawful right to sell the same; and

(ii) that good and marketable title to the Aircraft is hereby duly vested in BUYER free and clear of all claims,
liens, encumbrances and rights of others of any nature. EMBRAER hereby covenants and agrees to defend such title forever against all claims and demands whatsoever.

This Warranty Bill of Sale is governed by the laws of the state of New York, United States of America.

IN WITNESS WHEREOF, EMBRAER has caused this instrument to be executed and delivered by its duly authorized officer and attorney in fact.

Date as of ____________________, 20__.

---

| |
|:---|
| EMBRAER S.A. |
| By: |
| Name: |
| Title: |

---

Attachment "K" to PA COM0448-18 – Execution Version Page 1 of 1

------

**ATTACHMENT "L" - FORM OF GUARANTY** 

**<u>FORM OF GUARANTY</u>**

[\*\*\*]

Attachment "L" to PA COM 0448-18 – Execution Version Page 1 of 1

## Exhibit 10.28

**Exhibit 10.28.2** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

**LETTER AGREEMENT COM0449-18** 

**<u>INDEX</u>** 

1. [\*\*\*] 2

2. AHEAD PRO PROGRAM 2

3. CODE SHARE AGREEMENTS 2

4. [\*\*\*] 2

5. [\*\*\*] 2

6. [\*\*\*] 2

7. [\*\*\*] 2

8. [\*\*\*] 2

9. [\*\*\*] 2

10. [\*\*\*] 2

11. [\*\*\*] 2

12. [\*\*\*] 2

13. GUARANTEE 3

14. REINSTATEMENT OF THE PURCHASE AGREEMENT 3

15. COUNTERPARTS 3

16. SURVIVAL 3

**<u>SCHEDULE TO THE LETTER AGREEMENT</u>** 

Schedule "1" - [\*\*\*]

------

This Letter of Agreement COM0449-18 ("Letter Agreement") dated December 15th, 2018, is an agreement between Embraer S.A. ("Embraer") with its principal place of business at São José dos Campos, São Paulo, Brazil, and Republic Airline Inc. ("Buyer") with its principal place of business at 8909 Purdue Road, Indianapolis, Indiana 46268, United States relating to the Purchase Agreement COM0448-18 dated at the same date above written (the "Purchase Agreement") for the purchase by Buyer of up to [\*\*\*] EMBRAER 175LR aircraft and the right to purchase up to [\*\*\*] EMBRAER 175LR purchase right aircraft.

This Letter Agreement constitutes an amendment and modification of the Purchase Agreement, and it sets forth additional agreements of the Parties with respect to the matters set forth in the Purchase Agreement. All terms defined in the Purchase Agreement shall have the same meaning when used herein, and in case of any conflict between this Letter Agreement and the Purchase Agreement, this Letter Agreement shall govern.

NOW, THEREFORE, for good and valuable consideration, receipt of which is hereby acknowledged, Embraer and Buyer agree as follows:

**1.** [\*\*\*]

**2.** **AHEAD PRO PROGRAM** 

[\*\*\*] the AHEAD PRO Premium Program (Aircraft Health Analysis and Diagnosis) for [\*\*\*].

**3.** **CODE SHARE AGREEMENTS** 

Notwithstanding the use of a particular airline's name with respect to any particular Aircraft, Buyer shall have the right to operate each Aircraft purchased under the Purchase Agreement under code share arrangements with any airline or under its own operations, as Buyer may determine, and any such determination by Buyer [\*\*\*].

**4.** [\*\*\*]

**5.** [\*\*\*]

**6.** [\*\*\*]

**7.** [\*\*\*]

**8.** [\*\*\*]

**9.** [\*\*\*]

**10.** [\*\*\*]

**11.** [\*\*\*]

**12.** [\*\*\*]

Letter Agreement COM0449-18 - Execution Version Page 2 of 4

------

**13.** **GUARANTEE** 

The payment and performance obligations and liabilities of the Buyer under the Purchase Agreement shall be guaranteed by Republic Airways Holdings Inc. in the form of Attachment "L" to the Purchase Agreement.

**14.** **REINSTATEMENT OF THE PURCHASE AGREEMENT** 

All terms and conditions of the Purchase Agreement which have not been specifically amended or modified by this Letter Agreement shall remain valid and in full force and effect as and to the extent provided therein without any change as the result of this Letter Agreement.

**15.** **COUNTERPARTS** 

This Letter Agreement may be signed by the Parties in any number of separate counterparts with the same effect as if the signatures thereto and hereto were upon the same instrument and all of which when taken together shall constitute one and the same instrument. This Letter Agreement may be signed by facsimile with originals to follow by an internationally recognized courier.

**16.** **SURVIVAL** 

In the case of a termination of this Letter Agreement or the Purchase Agreement with respect to one or more Aircraft, the terms and provisions of this Letter Agreement, including the Schedules hereto, with respect to any delivered Aircraft shall survive such termination.

[*signature page follows*]

Letter Agreement COM0449-18 - Execution Version Page 3 of 4

------

IN WITNESS WHEREOF, the Parties have caused this Letter Agreement to be duly executed and delivered by their proper and duly authorized officers and to be effective as of the day and year first above written.

---

| | | | |
|:---|:---|:---|:---|
| **EMBRAER S.A.** | **EMBRAER S.A.** | **REPUBLIC AIRLINE INC.** | **REPUBLIC AIRLINE INC.** |
| By: | /s/ John Slattery | By: | /s/ S. Wade Sheek |
| Name: | John Slattery | Name: | S. Wade Sheek |
| Title: | President & CEO Commercial Aviation | Title: | VP, General Counsel |

---

---

| | |
|:---|:---|
| By: | /s/ Simon Newitt |
| Name: | Simon Newitt |
| Title: | Vice President, Contracts Commercial Aviation |

---

Letter Agreement COM0449-18 - Execution Version Page 4 of 4

## Exhibit 10.28

**Exhibit 10.28.3** 

**AMENDMENT No. 1 TO PURCHASE AGREEMENT COM0448-18** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

This Amendment No.1 COM0291-19 (the "Amendment No.1") dated as of May 29, 2019, is between Embraer S.A. ("Embraer") and Republic Airways Inc., formally known as Republic Airline Inc. ("Buyer), collectively referred to herein as the "Parties", and constitutes an amendment and modification to Purchase Agreement COM0448-18 dated December 15<sup>th</sup>, 2018 as amended from time to time (the "Purchase Agreement").

All capitalized terms not otherwise defined herein shall have the same meaning when used herein as provided in the Purchase Agreement and in case of any conflict between this Amendment No.1 and the Purchase Agreement, this Amendment No 1 shall control.

**WHEREAS,** Buyer has [\*\*\*];

**WHEREAS,** Buyer has requested and Embraer has agreed to rescheduled certain Aircraft Contractual Delivery Dates;

NOW, THEREFORE, for good and valuable consideration, which is hereby acknowledged by the Parties, Embraer and Buyer agree as follows:

**1. DELIVERY** 

The Attachment E to the Purchase Agreement is hereby deleted and replaced in its entirety by the Attachment E to this Amendment No.1.

**2. REINSTATEMENT OF PURCHASE AGREEMENT** 

All other provisions and conditions of the referenced Purchase Agreement, as well; as its related Attachments, which are not specifically modified by this Amendment No 1 shall remain in full force and effect without any change.

**3. COUNTERPARTS** 

This Amendment No.1 may be signed by the Parties hereto in any number of separate counterparts with the same effect as if the signatures thereto and hereto were upon the same instrument and all of which when taken together shall constitute one and the same instrument.

Amendment No. 1 to PA COM0448-18 Page 1 of 3

------

&nbsp;&nbsp;&nbsp;&nbsp; <br> **AMENDMENT No. 1 TO PURCHASE AGREEMENT COM0448-18**<br>

This Amendment No.1 may be signed and exchange by email attaching a copy of the signed Amendment in portable document format with originals to follow by an internationally recognized courier.

[SIGNATURE PAGE FOLLOWS]

Amendment No. 1 to PA COM0448-18 COM0291-19 Page 2 of 3

------

&nbsp;&nbsp;&nbsp;&nbsp; <br> **AMENDMENT No. 1 TO PURCHASE AGREEMENT COM0448-18**<br>

IN WITNESS WHEREOF, Embraer and Buyer, by their duly authorized officers, have entered into and executed this Amendment No.1 to be effective as of the date first written above.

---

| | | | |
|:---|:---|:---|:---|
| EMBRAER S.A. | EMBRAER S.A. | REPUBLIC AIRWAYS INC | REPUBLIC AIRWAYS INC |
| By: | /s/ Nelson Salgado | By: | /s/ S. Wade Sheek |
| Name: Nelson Salgado | Name: Nelson Salgado | Name: S. Wade Sheek | Name: S. Wade Sheek |
| Title: Executive Vice President & CFO | Title: Executive Vice President & CFO | Title: VP, General Counsel | Title: VP, General Counsel |
| By: | /s/ Simon Newitt |  |  |
| Name: Simon Newitt | Name: Simon Newitt |  |  |
| Title: Vice President, Contracts Commercial Aviation | Title: Vice President, Contracts Commercial Aviation |  |  |
| Place: São José Campos – SP Brazil | Place: São José Campos – SP Brazil | Place: Carmel, IN, USA | Place: Carmel, IN, USA |

---

Amendment No. 1 to PA COM0448-18 COM0291-19 Page 3 of 3

------

&nbsp;&nbsp;&nbsp;&nbsp; <br> **ATTACHMENT "E"**<br> **Firm Aircraft Delivery Schedule**<br>

[\*\*\*]

Attachment "E" of Amendment No. 1 to PA COM0448-18 Page 1 of 1

## Exhibit 10.28

**Exhibit 10.28.4** 

&nbsp;&nbsp;&nbsp;&nbsp; <br> **AMENDMENT No. 2 TO PURCHASE AGREEMENT CO0448-18**<br>

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

This Amendment No.2 COM0628-19 (the "Amendment No.2') dated as of August 26<sup>th</sup>, 2019 is between Embraer S.A. ("Embraer") and Republic Airways Inc., formerly known as Republic Airline Inc. ("Buyer"), collectively referred to herein as the "Parties", and constitutes an amendment and modification to Purchase Agreement COM0448-18 dated December 15<sup>th</sup>, 2018 as amended from time to time (the "Purchase Agreement").

All capitalized terms not otherwise defined herein shall have the same meaning when used herein as provided in the Purchase Agreement and in case of any conflict between this Amendment No.2 and the Purchase Agreement, this Amendment No.2 shall control.

**WHEREAS,** Pursuant to that certain [\*\*\*] Letter, dated May 15, 2019, between Buyer and Embraer, Buyer [\*\*\*];

**WHEREAS,** Pursuant to that certain [\*\*\*] Letter, dated August 8, 2019, between Buyer and Embraer, Buyer [\*\*\*];

**WHEREAS,** Buyer has requested and Embraer has agreed to rescheduled certain Aircraft Contractual Delivery Dates;

NOW, THEREFORE, for good and valuable consideration, which is hereby acknowledged by the Parties. Embraer and Buyer agree as follows:

**1. DELIVERY** 

The Attachment E to the Purchase Agreement is hereby deleted and replaced in its entirety by the Attachment E to this Amendment No.2.

**2. REINSTATEMENT OF PURCHASE AGREEMENT** 

All other provisions and conditions of the referenced Purchase Agreement, as well as its related Attachments, which are not specifically modified by this Amendment No.2 shall remain in full force and effect without any change.

**3. COUNTERPARTS** 

This Amendment No.2 may be signed by the Parties hereto in any number of separate counterparts with the same effect as if the signatures thereto and hereto were upon the same instrument and all of which when taken together shall constitute one and the same instrument.

------

&nbsp;&nbsp;&nbsp;&nbsp; <br> **AMENDMENT No. 2 TO PURCHASE AGREEMENT CO0448-18**<br>

This Amendment No.2 may be signed and exchange by email attaching a copy of the signed Amendment in portable document format with originals to follow by an internationally recognized courier.

[INTENTIONALLY LEFT BLANK — SIGNATURE PAGE FOLLOWS]

Amendment No. 2 to PA COM0448-18 COM0628-19 Page 2 of 3

------

&nbsp;&nbsp;&nbsp;&nbsp; <br> **AMENDMENT No. 2 TO PURCHASE AGREEMENT CO0448-18**<br>

IN WITNESS WHEREOF, Embraer and Buyer, by their duly authorized officers, have entered into and executed this Amendment No.2 to be effective as of the date first written above.

---

| | | | |
|:---|:---|:---|:---|
| EMBRAER S.A. | EMBRAER S.A. | REPUBLIC AIRWAYS INC | REPUBLIC AIRWAYS INC |
| By: | /s/ John Slattery | By: | /s/ S. Wade Sheek |
| Name: John Slattery | Name: John Slattery | Name: S. Wade Sheek | Name: S. Wade Sheek |
| Title: President & CEO Commercial Aviation | Title: President & CEO Commercial Aviation | Title: General Counsel | Title: General Counsel |
| By: | /s/ Simon Newitt |  |  |
| Name: Simon Newitt | Name: Simon Newitt |  |  |
| Title: Vice President, Contracts Commercial Aviation | Title: Vice President, Contracts Commercial Aviation |  |  |
| Place: Sáo José dos Campos-SP Brazil | Place: Sáo José dos Campos-SP Brazil | Place: Aug 26, 2019 | Place: Aug 26, 2019 |

---

Amendment No. 2 to PA COM0448-18 COM0628-19 Page 3 of 3

------

&nbsp;&nbsp;&nbsp;&nbsp; <br> **ATTACHMENT "E"**<br> **Firm Aircraft Delivery Schedule**<br>

[\*\*\*]

Attachment "E" of Amendment No. 2 to PA COM0448-18 COM0628-19 Page 1 of 1

## Exhibit 10.28

**Exhibit 10.28.5** 

**AMENDMENT No. 3 TO PURCHASE AGREEMENT COM0448-18** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

This Amendment No.3 COM0994-19 (the "Amendment No.3") dated as of November 29<sup>th</sup>, 2019 is between Embraer S.A. ("Embraer") and Republic Airways Inc., formerly known as Republic Airline Inc. ("Buyer"), collectively referred to herein as the "Parties", and constitutes an amendment and modification to Purchase Agreement COM0448-18 dated December 15<sup>th</sup>, 2018 as amended from time to time (the "Purchase Agreement").

All capitalized terms not otherwise defined herein shall have the same meaning when used herein as provided in the Purchase Agreement and in case of any conflict between this Amendment No.3 and the Purchase Agreement, this Amendment No.3 shall control.

**WHEREAS,** Pursuant to that certain [\*\*\*] Letter, dated May 15, 2019, between Buyer and Embraer, Buyer [\*\*\*];

**WHEREAS,** Pursuant to that certain [\*\*\*] Letter, dated August 8, 2019, between Buyer and Embraer, Buyer [\*\*\*];

**WHEREAS,** Pursuant to that certain [\*\*\*] Letter, dated November 4, 2019, between Buyer and Embraer, Buyer [\*\*\*];

**WHEREAS,** Buyer has requested and Embraer has agreed to reschedule certain Aircraft Contractual Delivery Dates;

NOW, THEREFORE, for good and valuable consideration, which is hereby acknowledged by the Parties, Embraer and Buyer agree as follows:

**1. DELIVERY** 

The Attachment E to the Purchase Agreement is hereby deleted and replaced in its entirety by the Attachment E to this Amendment No.3.

**2. REINSTATEMENT OF PURCHASE AGREEMENT** 

All other provisions and conditions of the referenced Purchase Agreement, as well as its related Attachments and Letter Agreement, which are not specifically modified by this Amendment No.3 shall remain in full force and effect without any change.

**3. COUNTERPARTS** 

This Amendment No.3 may be signed by the Parties hereto in any number of separate counterparts with the same effect as if the signatures thereto and hereto were upon the same instrument and all of which when taken together shall constitute one and the same instrument.

------

&nbsp;&nbsp;&nbsp;&nbsp; <br> **AMENDMENT No. 3 TO PURCHASE AGREEMENT COM0448-18**<br>

This Amendment No.3 may be signed and exchange by email attaching a copy of the signed Amendment in portable document format with originals to follow by an internationally recognized courier.

[INTENTIONALLY LEFT BLANK — SIGNATURE PAGE FOLLOWS]

Amendment No. 3 to PA COM0448-18 COM0994-19 Page 2 of 3

------

&nbsp;&nbsp;&nbsp;&nbsp; <br> **AMENDMENT No. 3 TO PURCHASE AGREEMENT COM0448-18**<br>

IN WITNESS WHEREOF, Embraer and Buyer, by their duly authorized officers, have entered into and executed this Amendment No.3 to be effective as of the date first written above.

---

| | | | |
|:---|:---|:---|:---|
| EMBRAER S.A. | EMBRAER S.A. | REPUBLIC AIRWAYS INC | REPUBLIC AIRWAYS INC |
| By: | /s/ John Slattery | By: | /s/ Chad Pulley |
| Name: John Slattery | Name: John Slattery | Name: Chad Pulley | Name: Chad Pulley |
| Title: President & CEO Commercial Aviation | Title: President & CEO Commercial Aviation | Title: Interim VP and General Counsel | Title: Interim VP and General Counsel |
| By: | /s/ Simon Newitt |  |  |
| Name: Simon Newitt | Name: Simon Newitt |  |  |
| Title: Vice President, Contracts Commercial Aviation | Title: Vice President, Contracts Commercial Aviation |  |  |
| Place: São José Campos – SP Brazil | Place: São José Campos – SP Brazil | Place:<u> </u> | Place:<u> </u> |

---

Amendment No. 3 to PA COM0448-18 COM0994-19 Page 3 of 3

------

**ATTACHMENT "E"** 

**Firm Aircraft Delivery Schedule** 

[\*\*\*]

Attachment "E" of Amendment No. 3 to PA COM0448-18 COM0994-19 Page 1 of 1

## Exhibit 10.28

**Exhibit 10.28.6** 

**AMENDMENT No. 4 TO PURCHASE AGREEMENT COM0448-18** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

This Amendment No.4 COM0157-20 (the "Amendment No.4") dated as of April 6, 2020 is between Yaborã Indústria Aeronáutica S.A. ("Yaborã") (the successor of Embraer S.A.) and Republic Airways Inc., formerly known as Republic Airline Inc. ("Buyer"), collectively referred to herein as the "Parties", and constitutes an amendment and modification to Purchase Agreement COM0448-18 dated December 15<sup>th</sup>, 2018 as amended from time to time (the "Purchase Agreement").

All capitalized terms not otherwise defined herein shall have the same meaning when used herein as provided in the Purchase Agreement and in case of any conflict between this Amendment No.4 and the Purchase Agreement, this Amendment No.4 shall control.

**WHEREAS**, pursuant to [\*\*\*] letters dated May 15<sup>th</sup>, 2019, August 8<sup>th</sup>, 2019 and November 04<sup>th</sup>, 2019, [\*\*\*] are currently designated as depicted in Amendment No.1, Amendment No.2 and Amendment No.3 to the Purchase Agreement;

**WHEREAS**, Pursuant to that certain [\*\*\*] Letter, dated March 19<sup>th</sup>, 2020, between Buyer and Yaborã, Buyer [\*\*\*];

**WHEREAS**, Buyer has requested and Yaborã has agreed to rescheduled certain Aircraft Contractual Delivery Dates;

NOW, THEREFORE, for good and valuable consideration, which is hereby acknowledged by the Parties, Yaborã and Buyer agree as follows:

**1. DELIVERY** 

The Attachment E to the Purchase Agreement is hereby deleted and replaced in its entirety by the Attachment E to this Amendment No.4.

**2. REINSTATEMENT OF PURCHASE AGREEMENT** 

All other provisions and conditions of the referenced Purchase Agreement, as well as its related Attachments and Letter Agreement, which are not specifically modified by this Amendment No.4 shall remain in full force and effect without any change.

**3. COUNTERPARTS** 

This Amendment No.4 may be signed by the Parties hereto in any number of separate counterparts with the same effect as if the signatures thereto and hereto were upon the same instrument and all of which when taken together shall constitute one and the same instrument.

------

&nbsp;&nbsp;&nbsp;&nbsp; <br> **AMENDMENT No. 4 TO PURCHASE AGREEMENT COM0448-18**<br>

This Amendment No.4 may be signed and exchange by email attaching a copy of the signed Amendment in portable document format with originals to follow by an internationally recognized courier.

[INTENTIONALLY LEFT BLANK – SIGNATURE PAGE FOLLOWS]

Amendment No.4 to PA COM0448-18 COM0157-20 Page 2 of 3

------

&nbsp;&nbsp;&nbsp;&nbsp; <br> **AMENDMENT No. 4 TO PURCHASE AGREEMENT COM0448-18**<br>

IN WITNESS WHEREOF, Yaborã and Buyer, by their duly authorized officers, have entered into and executed this Amendment No.4 to be effective as of the date first written above.

---

| | | | |
|:---|:---|:---|:---|
| YABORÁ INDÚSTRIA AERONÁUTICA S.A. | YABORÁ INDÚSTRIA AERONÁUTICA S.A. | REPUBLIC AIRWAYS INC | REPUBLIC AIRWAYS INC |
| By: | /s/ Mauro Kern Junior | By: | /s/ Chad M. Pulley |
| Name: Mauro Kern Junior | Name: Mauro Kern Junior | Name: Chad M. Pulley | Name: Chad M. Pulley |
| Title: VP Engineering | Title: VP Engineering | Title: Acting VP and General Counsel | Title: Acting VP and General Counsel |
| By: | /s/ Simon Henry Newitt |  |  |
| Name: Simon Henry Newitt | Name: Simon Henry Newitt |  |  |
| Title: VP Contracts | Title: VP Contracts |  |  |
| Place:<u> </u> | Place:<u> </u> | Place: Indianapolis, Indiana, USA | Place: Indianapolis, Indiana, USA |

---

Amendment No.4 to PA COM0448-18 COM0157-20 Page 3 of 3

------

&nbsp;&nbsp;&nbsp;&nbsp; <br> **ATTACHMENT "E"**<br> **Firm Aircraft Delivery Schedule**<br>

[\*\*\*]

Attachment "E" of Amendment No.4 to PA COM0448-18 COM0157-20 Page 1 of 1

## Exhibit 10.28

**Exhibit 10.28.7** 

**AMENDMENT No. 5 TO PURCHASE AGREEMENT COM0448-18** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

This Amendment No.5 (the "Amendment No.5") dated as of December 17, 2020 is between Yaborã Indústria Aeronáutica S.A. ("Seller") (the successor of Embraer S.A.) and Republic Airways Inc., formerly known as Republic Airline Inc. ("Buyer"), collectively referred to herein as the "Parties", and constitutes an amendment and modification to Purchase Agreement COM0448-18 dated December 15<sup>th</sup>, 2018 as amended from time to time (the "Purchase Agreement").

All capitalized terms not otherwise defined herein shall have the same meaning when used herein as provided in the Purchase Agreement and in case of any conflict between this Amendment No.5 and the Purchase Agreement, this Amendment No.5 shall control.

**WHEREAS**, this Amendment No. 5 sets forth additional agreements between Seller and Buyer relative to Aircraft [\*\*\*].

**WHEREAS**, this Amendment No. 5 sets forth additional agreements between Seller and Buyer relative to [\*\*\*].

NOW, THEREFORE, for good and valuable consideration, which is hereby acknowledged by the Parties, Seller and Buyer agree as follows:

**1. DEFINITIONS** 

The definition under item 1.4. of Article 1 shall be deleted and replaced by the following:

"1.4. "Aircraft": shall mean the EMBRAER 175 LR (certification designation: ERJ 170-200 LR) aircraft referred to in Attachment "A1" or in Attachment "A4" as the case may be, for sale to Buyer pursuant to this Agreement, equipped with two engines identified therein. Aircraft shall include [\*\*\*].

Item 1.18 of Article 1 shall be amended by adding the following at the end of Item 1.18:

[\*\*\*]

Article 1 shall be amended by adding the following as item 1.22A:

"1.22A: "Seller" shall mean Yaborã Indústria Aeronáutica S.A. (formerly known as Embraer S.A."

**2. CONFIGURATION CHANGES TO** [\*\*\*]

The Aircraft [\*\*\*] shall be delivered in their current configuration ("as is"), which is reflected in Attachment "A4" attached herein and which shall be incorporated into the Purchase Agreement as Attachment "A4". Any changes requested by Buyer to such configuration shall be chargeable.

------

&nbsp;&nbsp;&nbsp;&nbsp; <br> **AMENDMENT No. 5 TO PURCHASE AGREEMENT COM0448-18**<br>

**3. SUBJECT** 

Item 2.1 of Article 2 of the Purchase Agreement shall be deleted and replaced by the following:

"2.1 Embraer shall sell and deliver and Buyer shall purchase and take delivery of [\*\*\*] Firm Aircraft;"

**4. PRICE** 

Item 3.1 of Article 3 of the Purchase Agreement shall be deleted and replaced by the following:

"3.1 The Aircraft Basic Price, in United States dollars, for each Aircraft is as follows:

[\*\*\*]

"

**5.** [\*\*\*]

**6.** [\*\*\*]

**7.** [\*\*\*]

**8. DELIVERY** 

Due to the [\*\*\*] the Attachment E to the Purchase Agreement is hereby deleted and replaced in its entirety by the Attachment E to this Amendment No.5.

**9. REINSTATEMENT OF PURCHASE AGREEMENT** 

All other provisions and conditions of the referenced Purchase Agreement, as well as its related Attachments and Letter Agreement, which are not specifically modified by this Amendment No.5 shall remain in full force and effect without any change.

**10. COUNTERPARTS** 

This Amendment No.5 may be signed by the Parties hereto in any number of separate counterparts with the same effect as if the signatures thereto and hereto were upon the same instrument and all of which when taken together shall constitute one and the same instrument.

This Amendment No.5 may be signed and exchange by email attaching a copy of the signed Amendment in portable document format with originals to follow by an internationally recognized courier.

[INTENTIONALLY LEFT BLANK – SIGNATURE PAGE FOLLOWS]

Amendment No.5 to PA COM0448-18 COM0512-20 Page 2 of 3

------

&nbsp;&nbsp;&nbsp;&nbsp; <br> **AMENDMENT No. 5 TO PURCHASE AGREEMENT COM0448-18**<br>

IN WITNESS WHEREOF, Seller and Buyer, by their duly authorized officers, have entered into and executed this Amendment No.5 to be effective as of the date first written above.

---

| | | | |
|:---|:---|:---|:---|
| YABORÁ INDÚSTRIA AERONÁUTICA S.A. | YABORÁ INDÚSTRIA AERONÁUTICA S.A. | REPUBLIC AIRWAYS INC | REPUBLIC AIRWAYS INC |
| By: | /s/ Arjan Meijer | By: | /s/ Joseph P. Allman |
| Name: Arjan Meijer | Name: Arjan Meijer | Name: Joseph P. Allman | Name: Joseph P. Allman |
| Title: CEO Embraer Commercial Aviation | Title: CEO Embraer Commercial Aviation | Title: SVP, CFO | Title: SVP, CFO |
| By: | /s/ Marcelo Santiago |  |  |
| Name: Marcelo Santiago | Name: Marcelo Santiago |  |  |
| Title: Vice President Contracts & Asset Management | Title: Vice President Contracts & Asset Management |  |  |
| Place:<u> </u> | Place:<u> </u> | Place: Indianapolis, IN | Place: Indianapolis, IN |

---

Amendment No.5 to PA COM0448-18 COM0512-20 Page 3 of 3

------

&nbsp;&nbsp;&nbsp;&nbsp; <br> **ATTACHMENT "A4"**<br> **E175 AIRCRAFT CONFIGURATION**<br>

**1.** **STANDARD AIRCRAFT** 

The EMBRAER 175 LR Aircraft (the "Aircraft") shall be manufactured according to (i) the standard configuration specified in the Technical Description TD 175 – Rev 23, December 2017, which although not attached hereto, is incorporated herein by reference, and (ii) the characteristics described in the items below.

**2.** **OPTIONAL EQUIPMENT** 

[\*\*\*]

**3.** **EXTERIOR FINISHING** 

The fuselage of the Aircraft shall be painted according to Buyer's colour and paint scheme, which shall be supplied to Embraer by Buyer on or before [\*\*\*]. The wings and the horizontal stabilizer shall be supplied in the standard colours, i.e., grey BAC707.

[\*\*\*]

**4.** **INTERIOR DETAILING** 

Buyer shall inform Embraer up to the customer check list definition ("CCL"), to be held no later than [\*\*\*].

**5.** **BUYER FURNISHED EQUIPMENT (BFE) AND BUYER INSTALLED EQUIPMENT (BIE)** 

For the First Aircraft and on, if applicable, the Aircraft galleys will be delivered with space provisions and the electrical galley inserts will be BIE items.

The trolleys, standard units and the equipment classified as operational requirements shall be BIE items.

[\*\*\*]

**6.** **EMBRAER RIGHT TO PERFORM FOR BUYER** 

If Buyer fails to choose or define the exterior, interior finishing, emergency equipment and/or galley inserts of any Aircraft or fails to promptly inform Embraer of its choice or definition within [\*\*\*], Embraer shall have the right to tender the Aircraft for delivery, as the case may be, with a white overall fuselage colour, fitted with an interior finishing selected by Embraer, and/or with provisions/installation for emergency equipment and galley inserts from the choices available at Embraer, at its reasonable discretion.

Attachment "A4" to PA COM0448-18 – Execution Version Page 1 of 2

------

&nbsp;&nbsp;&nbsp;&nbsp; <br> **ATTACHMENT "A4"**<br> **E175 AIRCRAFT CONFIGURATION**<br>

In any such cases, no compensation to Buyer or reduction shall be applied [\*\*\*]. Buyer agrees hereby that any action taken by Embraer pursuant to this Article shall not constitute a waiver or release of any obligation of Buyer under the Purchase Agreement, nor a waiver of any event of default which may arise out of Buyer's non performance of such obligation, nor an election or waiver by Embraer of any remedy or right available to Embraer under the Purchase Agreement. Further, Embraer shall be entitled to charge Buyer for reasonable expenses incurred by Embraer in connection with the performance of or compliance with such agreement, as the case may be, payable by Buyer within [\*\*\*] from the presentation of the respective invoice by Embraer to Buyer.

**7.** **REGISTRATION MARKS, TRANSPONDER AND ELT CODES:** 

The Aircraft shall be delivered to Buyer with the registration marks painted on them. The registration marks, the transponder code and ELT protocol coding shall be supplied to Embraer by Buyer no later than [\*\*\*] before each relevant Aircraft's Contractual Delivery Date. Embraer shall be entitled to tender the Aircraft for delivery to Buyer without registration marks, with an inoperative transponder and without setting the ELT protocol coding in case Buyer fails to supply such information to Embraer in due time.

**8.** **EXPORT CONTROL ITEMS** 

The Aircraft contains IRU (Inertial Reference Unit) manufactured by Honeywell International, which is subject to export control under United States of America law. The Aircraft contains an IESI (Integrated Electronic Standby Instrument System) model manufactured by Thales which is not subject to export control, however in the event this IESI model is replaced by any IESI with the QRS-11 gyroscopic microchip, such component is subject to export control under United States of America law.

Transfer or re-export of such items (whether or not incorporated into the Aircraft), as well as their related technology and software may require prior authorization from the US Government.

IT IS HEREBY AGREED AND UNDERSTOOD BY THE PARTIES THAT IF THERE IS ANY CONFLICT BETWEEN THE TERMS OF THIS ATTACHMENT "A1" AND THE TERMS OF THE TECHNICAL DESCRIPTION ABOVE REFERRED, THE TERMS OF THIS ATTACHMENT "A1" SHALL PREVAIL.

Attachment "A4" to PA COM0448-18 – Execution Version Page 2 of 2

------

&nbsp;&nbsp;&nbsp;&nbsp; <br> **ATTACHMENT "E"**<br> **Firm Aircraft Delivery Schedule**<br>

[\*\*\*]

Attachment "E" to of Amendment No. 5 to PA COM0448-18 COM0512-20 Page 1 of 1

## Exhibit 10.28

**Exhibit 10.28.8** 

**AMENDMENT No. 1 TO** 

**LETTER AGREEMENT COM0449-18** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

This Amendment No. 1 to the Letter Agreement COM0449-18, dated as of December 17, 2020 ("Amendment No. 1") relates to the Letter Agreement COM0449-18 between Yaborã Indústria Aeronáutica S.A. ("Seller") (the successor of Embraer S.A.) and Republic Airways Inc., formerly known as Republic Airline Inc. ("Buyer"), dated December 15, 2018, ("Letter Agreement"). This Amendment No. 1 is between Seller and Buyer (collectively referred to herein as the "Parties").

All capitalized terms used in this Amendment No. 1 which are not defined herein shall have the meaning given in the Purchase Agreement and Letter Agreement. In the event of any conflict between this Amendment No. 1, the Purchase Agreement and Letter Agreement, the terms, conditions and provisions of this Amendment No. 1 shall control.

**WHEREAS**, this Amendment No. 1 sets forth additional agreements between Seller and Buyer relative to [\*\*\*].

**WHEREAS**, this Amendment No. 1 sets forth additional agreements between Seller and Buyer relative to [\*\*\*].

**NOW, THEREFORE**, for good and valuable consideration which is hereby acknowledged, the Parties hereby agree as follows:

**1.** [\*\*\*]

**2.** [\*\*\*]

**3.** [\*\*\*]

**4.** [\*\*\*]

**5. COUNTERPARTS** 

This Amendment No. 1 may be executed by the Parties hereto in any number of separate counterparts with the same effect as if the signatures thereto and hereto were upon the same instrument and all of which when taken together shall constitute one and the same instrument. This Amendment No. 1 may be signed and exchanged by e-mail with originals to follow by an internationally recognized courier.

**6. MISCELLANEOUS** 

All other provisions of the Letter Agreement that have not been specifically amended or modified by this Amendment No. 1 shall remain valid in full force and effect without any change.

Amendment No.1 to Letter Agreement COM0449-18 COM0513-20 Page 1 of 3

------

INTENTIONALLY LEFT BLANK

Amendment No.1 to Letter Agreement COM0449-18 COM0513-20 Page 2 of 3

------

IN WITNESS WHEREOF, Seller and Buyer, by their duly authorized officers, have entered into and executed this Amendment No. 1 to Letter Agreement to be effective as of the date first written above.

---

| | | | |
|:---|:---|:---|:---|
| YABORÁ INDÚSTRIA AERONÁUTICA S.A. | YABORÁ INDÚSTRIA AERONÁUTICA S.A. | REPUBLIC AIRWAYS INC. | REPUBLIC AIRWAYS INC. |
| By | /s/ Arjan Meijer | By | /s/ Joseph P. Allman |
| Name: Arjan Meijer | Name: Arjan Meijer | Name: Joseph P. Allman | Name: Joseph P. Allman |
| Title: CEO Embraer Commercial Aviation | Title: CEO Embraer Commercial Aviation | Title: SVP, CFO | Title: SVP, CFO |
| By | /s/ Marcelo Santiago |  |  |
| Name: Marcelo Santiago | Name: Marcelo Santiago |  |  |
| Title: Vice President Contracts & Asset Management | Title: Vice President Contracts & Asset Management |  |  |
| Place:<u> </u> | Place:<u> </u> | Place: Indianapolis, IN | Place: Indianapolis, IN |

---

Amendment No.1 to Letter Agreement COM0449-18 COM0513-20 Page 3 of 3

## Exhibit 10.28

**Exhibit 10.28.9** 

**AMENDMENT No. 6 TO PURCHASE AGREEMENT COM0448-18** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

This Amendment No.6 (the "Amendment No.6") dated as of April 30, 2021 is between Yaborã Indústria Aeronáutica S.A. ("Seller") (the successor of Embraer S.A.) and Republic Airways Inc., formerly known as Republic Airline Inc. ("Buyer"), collectively referred to herein as the "Parties", and constitutes an amendment and modification to Purchase Agreement COM0448-18 dated December 15th, 2018 as amended from time to time (the "Purchase Agreement").

All capitalized terms not otherwise defined herein shall have the same meaning when used herein as provided in the Purchase Agreement and in case of any conflict between this Amendment No.6 and the Purchase Agreement, this Amendment No.6 shall control.

**WHEREAS,** the Parties wish to include Embraer S.A. as a Party to the Purchase Agreement, in preparation for the reintegration of all commercial aviation activities back to Embraer S.A.;

**WHEREAS,** Buyer has requested and Embraer has agreed to modify certain items of the [\*\*\*] configuration.

NOW, THEREFORE, for good and valuable consideration, which is hereby acknowledged by the Parties, Seller and Buyer agree as follows:

**1. INCLUSION OF EMBRAER** 

1.1 Parties hereby agree to include Embraer as a Party and "Seller" under the Purchase Agreement. Any references to "Seller" in the Purchase Agreement shall be understood as a reference to Embraer and Embraer Commercial collectively.

1.2 As a result of the change above, the definition of "Embraer" in Article 1.13 shall be entirely deleted and then replaced, as follows:

"1.13 "Seller": shall mean Yaborã Industria Aeronautica S.A., a Brazilian corporation organized and existing under the laws of Brazil with its principal place of business at Av. Brigadeiro Faria Lima, 2170, Sao Jose dos Campos, SP, Brazil and Embraer S.A Brazilian corporation organized and existing under the laws of Brazil with its principal place of business at Av. Brigadeiro Faria Lima, 2170, Sao Jose dos Campos, SP, Brazil.".

**2. CONFIGURATION CHANGES TO AIRCRAFT** [\*\*\*]

[\*\*\*]

------

&nbsp;&nbsp;&nbsp;&nbsp; <br> **AMENDMENT No. 6 TO PURCHASE AGREEMENT COM0448-18**<br>

**3. REINSTATEMENT OF PURCHASE AGREEMENT** 

All other provisions and conditions of the referenced Purchase Agreement, as well as its related Attachments and Letter Agreement, which are not specifically modified by this Amendment No.6 shall remain in full force and effect without any change.

**4. COUNTERPARTS** 

This Amendment No.6 may be signed by the Parties hereto in any number of separate counterparts with the same effect as if the signatures thereto and hereto were upon the same instrument and all of which when taken together shall constitute one and the same instrument.

This Amendment No.6 may be signed and exchange by email attaching a copy of the signed Amendment in portable document format with originals to follow by an internationally recognized courier.

[INTENTIONALLY LEFT BLANK — SIGNATURE PAGE FOLLOWS]

Amendment No.6 to PA COM0448-18 COM0123-21 Page 2 of 3

------

&nbsp;&nbsp;&nbsp;&nbsp; <br> **AMENDMENT No. 6 TO PURCHASE AGREEMENT COM0448-18**<br>

IN WITNESS WHEREOF, Seller and Buyer, by their duly authorized officers, have entered into and executed this Amendment No.6 to be effective as of the date first written above.

---

| | | | |
|:---|:---|:---|:---|
| YABORÃ INDÚSTRIA AERONÁUTICA S.A. | YABORÃ INDÚSTRIA AERONÁUTICA S.A. | REPUBLIC AIRWAYS INC | REPUBLIC AIRWAYS INC |
| By: | /s/ Marcelo Santiago | By: | /s/ Paul Kinstedt |
| Name: Marcelo Santiago | Name: Marcelo Santiago | Name: Paul Kinstedt | Name: Paul Kinstedt |
| Title: Vice President Contracts & Asset Management | Title: Vice President Contracts & Asset Management | Title: SVP Operations/COO | Title: SVP Operations/COO |
| By: | /s/ Marc Thomas Ahlgrimm |  |  |
| Name: Marc Thomas Ahlgrimm | Name: Marc Thomas Ahlgrimm |  |  |
| Title: Senior Manager, Contracts Administration | Title: Senior Manager, Contracts Administration |  |  |
| Place: São José dos Campos – SP - Brazil | Place: São José dos Campos – SP - Brazil | Place: Indianapolis, IN | Place: Indianapolis, IN |

---

Amendment No.6 to PA COM0448-18 COM0123-21 Page 3 of 3

------

**ATTACHMENT "A4"** 

**E175LR AIRCRAFT CONFIGURATION** 

**1.** **STANDARD AIRCRAFT** 

The EMBRAER 175 LR Aircraft (the "Aircraft") shall be manufactured according to (i) the standard configuration specified in the Technical Description TD 175 — Rev 23, December 2017, which although not attached hereto, is incorporated herein by reference, and (ii) the characteristics described in the items below.

**2.** **OPTIONAL EQUIPMENT** 

[\*\*\*]

**3.** **EXTERIOR FINISHING** 

The fuselage of the Aircraft shall be painted according to Buyer's colour and paint scheme, which shall be supplied to Embraer by Buyer on or before [\*\*\*]. The wings and the horizontal stabilizer shall be supplied in the standard colours, i.e., grey BAC707.

[\*\*\*]

**4.** **INTERIOR DETAILING** 

Buyer shall inform Embraer up to the customer check list definition ("CCL"), to be held no later than [\*\*\*].

**5.** **BUYER FURNISHED EQUIPMENT (BFE) AND BUYER INSTALLED EQUIPMENT (BIE)** 

For the First Aircraft and on, if applicable, the Aircraft galleys will be delivered with space provisions and the electrical galley inserts will be BIE items.

The trolleys, standard units and the equipment classified as operational requirements shall be BIE items.

[\*\*\*]

**6.** **EMBRAER RIGHT TO PERFORM FOR BUYER** 

If Buyer fails to choose or define the exterior, interior finishing, emergency equipment and/or galley inserts of any Aircraft or fails to promptly inform Embraer of its choice or definition within [\*\*\*], Embraer shall have the right to tender the Aircraft for delivery, as the case may be, with a white overall fuselage colour, fitted with an interior finishing selected by Embraer, and/or with provisions/installation for emergency equipment and galley inserts from the choices available at Embraer, at its reasonable discretion.

Attachment "A4" of Amendment No.6 to PA COM0448-18 COM0123-21 Page 1 of 2

------

&nbsp;&nbsp;&nbsp;&nbsp; <br> **ATTACHMENT "A4"**<br> **E175LR AIRCRAFT CONFIGURATION**<br>

In any such cases, no compensation to Buyer or reduction shall be [\*\*\*]. Buyer agrees hereby that any action taken by Embraer pursuant to this Article shall not constitute a waiver or release of any obligation of Buyer under the Purchase Agreement, nor a waiver of any event of default which may arise out of Buyer's non performance of such obligation, nor an election or waiver by Embraer of any remedy or right available to Embraer under the Purchase Agreement. Further, Embraer shall be entitled to charge Buyer for reasonable expenses incurred by Embraer in connection with the performance of or compliance with such agreement, as the case may be, payable by Buyer within [\*\*\*] from the presentation of the respective invoice by Embraer to Buyer.

**7.** **REGISTRATION MARKS, TRANSPONDER AND ELT CODES:** 

The Aircraft shall be delivered to Buyer with the registration marks painted on them. The registration marks, the transponder code and ELT protocol coding shall be supplied to Embraer by Buyer no later than [\*\*\*] before each relevant Aircraft's Contractual Delivery Date. Embraer shall be entitled to tender the Aircraft for delivery to Buyer without registration marks, with an inoperative transponder and without setting the ELT protocol coding in case Buyer fails to supply such information to Embraer in due time.

**8.** **EXPORT CONTROL ITEMS** 

The Aircraft contains IRU (Inertial Reference Unit) manufactured by Honeywell International, which is subject to export control under United States of America law. The Aircraft contains an IESI (Integrated Electronic Standby Instrument System) model manufactured by Thales which is not subject to export control, however in the event this IESI model is replaced by any IESI with the QRS-11 gyroscopic microchip, such component is subject to export control under United States of America law.

Transfer or re-export of such items (whether or not incorporated into the Aircraft), as well as their related technology and software may require prior authorization from the US Government.

IT IS HEREBY AGREED AND UNDERSTOOD BY THE PARTIES THAT IF THERE IS ANY CONFLICT BETWEEN THE TERMS OF THIS ATTACHMENT "A1" AND THE TERMS OF THE TECHNICAL DESCRIPTION ABOVE REFERRED, THE TERMS OF THIS ATTACHMENT "A1" SHALL PREVAIL.

Attachment "A4" of Amendment No.6 to PA COM0448-18 COM0123-21 Page 2 of 2

## Exhibit 10.28

**Exhibit 10.28.10** 

&nbsp;&nbsp;&nbsp;&nbsp; <br> **AMENDMENT No. 7 TO PURCHASE AGREEMENT COM0448-18**<br>

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

This Amendment No.7 (the "Amendment No.7") dated as of November 19<sup>th</sup>, 2021 is between **EMBRAER S.A.**, a corporation existing under the laws of Brazil, which address and principal place of business is at Avenida Brigadeiro Faria Lima, 2170, prédio F-100, Putim, in the city of São José dos Campos, State of São Paulo, Brazil ("Embraer"); **YABORÃ INDÚSTRIA AERONÁUTICA S.A.**, a corporation existing under the laws of Brazil, with office at Avenida Brigadeiro Faria Lima, 2170, in the City of São José dos Campos, State of São Paulo, Brazil ("Embraer Commercial") and Republic Airways Inc., formerly known as Republic Airline Inc. ("Buyer"), collectively referred to herein as the "Parties", and constitutes an amendment and modification to Purchase Agreement COM0448-18 dated December 15th, 2018 as amended from time to time (the "Purchase Agreement").

Embraer and Embraer Commercial are referred collectively as "Seller".

All capitalized terms not otherwise defined herein shall have the same meaning when used herein as provided in the Purchase Agreement and in case of any conflict between this Amendment No.7 and the Purchase Agreement, this Amendment No.7 shall control.

**WHEREAS**, this Amendment No. 7 sets forth additional agreements between Seller and Buyer relative to Aircraft [\*\*\*].

**WHEREAS**, The Parties have agreed to [\*\*\*] Delivery Date of Aircraft [\*\*\*].

NOW, THEREFORE, for good and valuable consideration, which is hereby acknowledged by the Parties, Seller and Buyer agree as follows:

**1.** **DEFINITIONS** 

The definition under item 1.4. of Article 1 shall be deleted and replaced by the following:

"1.4. "Aircraft": shall mean the EMBRAER 175 LR (certification designation: ERJ 170200 LR) aircraft referred to in Attachment "A1" or in Attachment "A4" or in Attachment "A5" as the case may be, for sale to Buyer pursuant to this Agreement, equipped with two engines identified therein. Aircraft shall include [\*\*\*].

Amendment No.7 to PA COM0448-18 COM0378-21 Page 1 of 3

------

&nbsp;&nbsp;&nbsp;&nbsp; <br> **AMENDMENT No. 7 TO PURCHASE AGREEMENT COM0448-18**<br>

**2. AIRCRAFT CONFIGURATION OF AIRCRAFT [\*\*\*].** 

The Aircraft [\*\*\*] shall be delivered in the configuration which is reflected in Attachment "A5" attached herein and which shall be incorporated into the Purchase Agreement as Attachment "A5".

**3. PRICE** 

Item 3.1 of Article 3 of the Purchase Agreement shall be deleted and replaced by the following:

"3.1 The Aircraft Basic Price, in United States dollars, for each Aircraft is as follows:

[\*\*\*]

"

**4. DELIVERY** 

The Attachment E to the Purchase Agreement is hereby deleted and replaced in its entirety by the Attachment E to this Amendment Nº 7.

**5. REINSTATEMENT OF PURCHASE AGREEMENT** 

All other provisions and conditions of the referenced Purchase Agreement, as well as its related Attachments and Letter Agreement, which are not specifically modified by this Amendment No.7 shall remain in full force and effect without any change.

**6. COUNTERPARTS** 

This Amendment No.7 may be signed by the Parties hereto in any number of separate counterparts with the same effect as if the signatures thereto and hereto were upon the same instrument and all of which when taken together shall constitute one and the same instrument.

This Amendment No.7 may be signed and exchange by email attaching a copy of the signed Amendment in portable document format with originals to follow by an internationally recognized courier.

[INTENTIONALLY LEFT BLANK – SIGNATURE PAGE FOLLOWS]

Amendment No.7 to PA COM0448-18 COM0378-21 Page 2 of 3

------

&nbsp;&nbsp;&nbsp;&nbsp; <br> **AMENDMENT No. 7 TO PURCHASE AGREEMENT COM0448-18**<br>

IN WITNESS WHEREOF, Seller and Buyer, by their duly authorized officers, have entered into and executed this Amendment No.7 to be effective as of the date first written above.

---

| | | | |
|:---|:---|:---|:---|
| EMBRAER S.A. | EMBRAER S.A. | REPUBLIC AIRWAYS INC | REPUBLIC AIRWAYS INC |
| By: | /s/ Marcelo Santiago |  |  |
| Name: Marcelo Santiago | Name: Marcelo Santiago |  |  |
| Title: Vice President Contracts & Asset Mgmt | Title: Vice President Contracts & Asset Mgmt |  |  |
| By: | /s/ Marc Thomas Ahlgrim | By: | /s/ Paul Kinstedt |
| Name: Marc Thomas Ahlgrim | Name: Marc Thomas Ahlgrim | Name: Paul Kinstedt | Name: Paul Kinstedt |
| Title: Director, Contracts Administration | Title: Director, Contracts Administration | Title: S.V.P. / C.O.O. | Title: S.V.P. / C.O.O. |
| Place: Sao Jose dos Campos – SP Brazil | Place: Sao Jose dos Campos – SP Brazil | Place: Indianapolis, IN, USA | Place: Indianapolis, IN, USA |

---

---

| | |
|:---|:---|
| YABORÁ INDÚSTRIA AERONÁUTICA S.A. | YABORÁ INDÚSTRIA AERONÁUTICA S.A. |
| By: | /s/ Marcelo Santiago |
| Name: | Marcelo Santiago |
| Title: | Vice President Contracts & Asset Mgmt |
| By: | /s/ Marc Thomas Ahlgrim |
| Name: | Marc Thomas Ahlgrim |
| Title: | Director, Contracts Administration |
| Place: | São José dos Campos - SP Brazil |

---

Amendment No.7 to PA COM0448-18 COM0378-21 Page 3 of 3

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br> **ATTACHMENT "A5"**<br> **E175LR AIRCRAFT CONFIGURATION**<br> ***(Aircraft* [\*\*\*]*)***<br>

**1. STANDARD AIRCRAFT** 

The EMBRAER 175 LR Aircraft (the "Aircraft") shall be manufactured according to (i) the standard configuration specified in the Technical Description TD 175 – Rev 23, December 2017, which although not attached hereto, is incorporated herein by reference, and (ii) the characteristics described in the items below.

**2. OPTIONAL EQUIPMENT** 

[\*\*\*]

**3. EXTERIOR FINISHING** 

The fuselage of the Aircraft shall be painted according to Buyer's colour and paint scheme, which shall be supplied to Embraer by Buyer on or before [\*\*\*]. The wings and the horizontal stabilizer shall be supplied in the standard colours, i.e., grey BAC707.

[\*\*\*]

**4. INTERIOR DETAILING** 

Buyer shall inform Embraer up to the customer check list definition ("CCL"), to be held no later than [\*\*\*].

**5. BUYER FURNISHED EQUIPMENT (BFE) AND BUYER INSTALLED EQUIPMENT (BIE)** 

The first Aircraft will have electrical galley inserts, such as ovens, coffee makers, hot jugs and water boilers as BFE for certification purpose. Buyer shall deliver such electrical inserts, [\*\*\*].

The trolleys, standard units and the equipment classified as operational requirements shall be BIE items.

[\*\*\*]

**6. EMBRAER RIGHT TO PERFORM FOR BUYER** 

If Buyer fails to choose or define the exterior, interior finishing, emergency equipment and/or galley inserts of any Aircraft or fails to promptly inform Embraer of its choice or definition within [\*\*\*], Embraer shall have the right to tender the Aircraft for delivery, as the case may be, with a white overall fuselage colour, fitted with an interior finishing selected by Embraer, and/or with provisions/installation for emergency equipment and galley inserts from the choices available at Embraer, at its reasonable discretion.

Attachment "A5" to PA COM0448-18 COM0378-21 Page 1 of 2

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br> **ATTACHMENT "A5"**<br> **E175LR AIRCRAFT CONFIGURATION**<br> ***(Aircraft* [\*\*\*]*)***<br>

In any such cases, no compensation to Buyer or reduction shall be applied [\*\*\*]. Buyer agrees hereby that any action taken by Embraer pursuant to this Article shall not constitute a waiver or release of any obligation of Buyer under the Purchase Agreement, nor a waiver of any event of default which may arise out of Buyer's non performance of such obligation, nor an election or waiver by Embraer of any remedy or right available to Embraer under the Purchase Agreement. Further, Embraer shall be entitled to charge Buyer for reasonable expenses incurred by Embraer in connection with the performance of or compliance with such agreement, as the case may be, payable by Buyer within [\*\*\*] from the presentation of the respective invoice by Embraer to Buyer.

**7. REGISTRATION MARKS, TRANSPONDER AND ELT CODES:** 

The Aircraft shall be delivered to Buyer with the registration marks painted on them. The registration marks, the transponder code and ELT protocol coding shall be supplied to Embraer by Buyer no later than [\*\*\*] before each relevant Aircraft's Contractual Delivery Date. Embraer shall be entitled to tender the Aircraft for delivery to Buyer without registration marks, with an inoperative transponder and without setting the ELT protocol coding in case Buyer fails to supply such information to Embraer in due time.

**8. EXPORT CONTROL ITEMS** 

The Aircraft contains IRU (Inertial Reference Unit) manufactured by Honeywell International, which is subject to export control under United States of America law. The Aircraft contains an IESI (Integrated Electronic Standby Instrument System) model manufactured by Thales which is not subject to export control, however in the event this IESI model is replaced by any IESI with the QRS-11 gyroscopic microchip, such component is subject to export control under United States of America law.

Transfer or re-export of such items (whether or not incorporated into the Aircraft), as well as their related technology and software may require prior authorization from the US Government.

IT IS HEREBY AGREED AND UNDERSTOOD BY THE PARTIES THAT IF THERE IS ANY CONFLICT BETWEEN THE TERMS OF THIS ATTACHMENT "A1" AND THE TERMS OF THE TECHNICAL DESCRIPTION ABOVE REFERRED, THE TERMS OF THIS ATTACHMENT "A1" SHALL PREVAIL.

Attachment "A5" to PA COM0448-18 COM0378-21 Page 2 of 2

------

&nbsp;&nbsp;&nbsp;&nbsp; <br> **ATTACHMENT "E"**<br> **Firm Aircraft Delivery Schedule**<br>

[\*\*\*]

Attachment "E" of Amendment No.7 to PA COM0448-18 COM0378-21 Page 1 of 1

## Exhibit 10.28

**Exhibit 10.28.11** 

**AMENDMENT No. 8 TO PURCHASE AGREEMENT COM0448-18** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

This Amendment No.8 (the "Amendment No.8") dated as of February 08<sup>th</sup>, 2022 is between **EMBRAER S.A.**, a corporation existing under the laws of Brazil, which address and principal place of business is at Avenida Brigadeiro Faria Lima, 2170, prédio F-100, Putim, in the city of São José dos Campos, State of São Paulo, Brazil ("Seller"); and Republic Airways Inc., formerly known as Republic Airline Inc. ("Buyer"), collectively referred to herein as the "Parties", and constitutes an amendment and modification to Purchase Agreement COM0448-18 dated December 15th, 2018, as amended from time to time (the "Purchase Agreement").

All capitalized terms not otherwise defined herein shall have the same meaning when used herein as provided in the Purchase Agreement and in case of any conflict between this Amendment No.8 and the Purchase Agreement, this Amendment No.8 shall control.

**WHEREAS**, as of January 1st, 2022, all of Embraer's Commercial Aviation Business previously under Yaborã Indústria Aeronáutica S.A. ("Yaborã") was reintegrated back and incorporated by Embraer S.A.;

**WHEREAS**, due to such reintegration, the Parties have agreed to exclude Yaborã as a Party to the Purchase Agreement;

**WHEREAS**, the Parties have also agreed to [\*\*\*] the Contractual Delivery Date of certain Aircraft.

NOW, THEREFORE, for good and valuable consideration, which is hereby acknowledged by the Parties, Seller and Buyer agree as follows:

**1. DELIVERY** 

The Attachment E to the Purchase Agreement is hereby deleted and replaced in its entirety by the Attachment E to this Amendment No. 8.

**2. REINSTATEMENT OF PURCHASE AGREEMENT** 

Parties hereby agree to exclude Yaborã Indústria Aeronáutica S.A. as a Party to the Purchase Agreement. All of Yaborã's rights and obligations under the Purchase Agreement are now Embraer S.A.'s rights and obligations.

All other provisions and conditions of the referenced Purchase Agreement, as well as its related Attachments and Letter Agreement, which are not specifically modified by this Amendment No.8 shall remain in full force and effect without any change.

------

&nbsp;&nbsp;&nbsp;&nbsp; <br> **AMENDMENT No. 8 TO PURCHASE AGREEMENT COM0448-18**<br>

**3.** **COUNTERPARTS** 

This Amendment No.8 may be signed by the Parties hereto in any number of separate counterparts with the same effect as if the signatures thereto and hereto were upon the same instrument and all of which when taken together shall constitute one and the same instrument.

This Amendment No.8 may be signed and exchange by email attaching a copy of the signed Amendment in portable document format with originals to follow by an internationally recognized courier.

[INTENTIONALLY LEFT BLANK – SIGNATURE PAGE FOLLOWS]

Amendment No.8 to PA COM0448-18 COM0003-22 Page 2 of 3

------

&nbsp;&nbsp;&nbsp;&nbsp; <br> **AMENDMENT No. 8 TO PURCHASE AGREEMENT COM0448-18**<br>

IN WITNESS WHEREOF, Seller and Buyer, by their duly authorized officers, have entered into and executed this Amendment No.8 to be effective as of the date first written above.

---

| | | | |
|:---|:---|:---|:---|
| EMBRAER S.A. | EMBRAER S.A. | REPUBLIC AIRWAYS INC | REPUBLIC AIRWAYS INC |
| By: | /s/ Marcelo Santiago | By: | /s/ Joseph P. Allman |
| Name: Marcelo Santiago | Name: Marcelo Santiago | Name: Joseph P. Allman | Name: Joseph P. Allman |
| Title: VP Contracts & Asset Mgmt | Title: VP Contracts & Asset Mgmt | Title: SVP, CFO | Title: SVP, CFO |
| By: | /s/ Marc Thomas Ahlgrimm |  |  |
| Name: Marc Thomas Ahlgrimm | Name: Marc Thomas Ahlgrimm |  |  |
| Title: Director, Contracts Administration | Title: Director, Contracts Administration |  |  |
| Place: São Jose dos Campos – SP Brazil | Place: São Jose dos Campos – SP Brazil | Place: | Place: |

---

Amendment No.8 to PA COM0448-18 COM0003-22 Page 3 of 3

------

&nbsp;&nbsp;&nbsp;&nbsp; <br> **ATTACHMENT "E"**<br> **Firm Aircraft Delivery Schedule**<br>

[\*\*\*]

Attachment "E" of Amendment No.8 to PA COM0448-18 COM0003-22 Page 1 of 1

## Exhibit 10.28

**Exhibit 10.28.12** 

**AMENDMENT No. 9 TO PURCHASE AGREEMENT COM0448-18** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

This Amendment No.9 (the "Amendment No.9") dated as of September 27<sup>th</sup>, 2022 is between **EMBRAER S.A.**, a corporation existing under the laws of Brazil, which address and principal place of business is at Avenida Brigadeiro Faria Lima, 2170, prédio F-100, Putim, in the city of São José dos Campos, State of São Paulo, Brazil ("Seller"); and Republic Airways Inc., formerly known as Republic Airline Inc. ("Buyer"), collectively referred to herein as the "Parties", and constitutes an amendment and modification to Purchase Agreement COM0448-18 dated December 15th, 2018, as amended from time to time (the "Purchase Agreement").

All capitalized terms not otherwise defined herein shall have the same meaning when used herein as provided in the Purchase Agreement and in case of any conflict between this Amendment No.9 and the Purchase Agreement, this Amendment No.9 shall control.

**WHEREAS,** the Parties have agreed to [\*\*\*].

**WHEREAS**, Buyer and Seller have agreed on [\*\*\*].

**WHEREAS,** the Parties have agreed to reschedule the Contractual Delivery Date of certain Aircraft.

**WHEREAS**, the Parties have agreed to modify certain items of the Aircraft [\*\*\*].

**WHEREAS**, this Amendment No. 9 sets forth additional agreements between Seller and Buyer relative to the Aircraft.

NOW, THEREFORE, for good and valuable consideration, which is hereby acknowledged by the Parties, Seller and Buyer agree as follows:

**1. CONFIGURATION CHANGES TO THE AIRCRAFT.** 

1.1 [\*\*\*]: Aircraft [\*\*\*] shall have [\*\*\*].

[\*\*\*]

**2. SUBJECT.** 

Article 2 of the Purchase Agreement is hereby deleted and replaced by the following:

"**2. SUBJECT.**

Subject to the terms and conditions of this Agreement:

------

&nbsp;&nbsp;&nbsp;&nbsp; <br> **AMENDMENT No. 9 TO PURCHASE AGREEMENT COM0448-18**<br>

2.1 Seller shall sell and deliver and Buyer shall purchase and take delivery of [\*\*\*] Firm Aircraft; and

2.2 Seller [\*\*\*] Buyer the Services and the Technical Publications as described in Attachment "B1" or "B2", as applicable, to this Agreement."

**3. PRICE.** 

As a result of the change referred to in Article 1 above [\*\*\*], Article 3.1 of the Purchase Agreement is hereby deleted and replaced as follows:

"3.1 The Aircraft Basic Price, in United States dollars, for each Aircraft is as follows:

[\*\*\*]

"

**4. PAYMENT.** 

Article 4.1.1 of the Purchase Agreement is hereby deleted and replaced by the following:

"4.1.1 Buyer has already paid [\*\*\*]"

**5. DELIVERY** 

Due to [\*\*\*], Attachment "E" to the Purchase Agreement is hereby deleted and replaced in its entirety by the Attachment "E" to this Amendment No.9. [\*\*\*]

**6.** [\*\*\*]

**7.** [\*\*\*]

**8.** [\*\*\*]

**9.** [\*\*\*]

**10. FURTHER CHANGES TO** [\*\*\*].

[\*\*\*]

**11. REINSTATEMENT OF PURCHASE AGREEMENT** 

All other provisions and conditions of the referenced Purchase Agreement, as well as its related Attachments and Letter Agreement, which are not specifically modified by this Amendment No.9 shall remain in full force and effect without any change.

**12. COUNTERPARTS** 

This Amendment No.9 may be signed by the Parties hereto in any number of separate counterparts with the same effect as if the signatures thereto and hereto were upon the same instrument and all of which when taken together shall constitute one and the same instrument.

Amendment No.9 to PA COM0448-18 COM0156-22 Page 2 of 4

------

&nbsp;&nbsp;&nbsp;&nbsp; <br> **AMENDMENT No. 9 TO PURCHASE AGREEMENT COM0448-18**<br>

This Amendment No.9 may be signed and exchange by email attaching a copy of the signed Amendment in portable document format with originals to follow by an internationally recognized courier.

[INTENTIONALLY LEFT BLANK – SIGNATURE PAGE FOLLOWS]

Amendment No.9 to PA COM0448-18 COM0156-22 Page 3 of 4

------

&nbsp;&nbsp;&nbsp;&nbsp; <br> **AMENDMENT No. 9 TO PURCHASE AGREEMENT COM0448-18**<br>

IN WITNESS WHEREOF, Seller and Buyer, by their duly authorized officers, have entered into and executed this Amendment No.9 to be effective as of the date first written above.

---

| | | | |
|:---|:---|:---|:---|
| EMBRAER S.A. | EMBRAER S.A. | REPUBLIC AIRWAYS INC | REPUBLIC AIRWAYS INC |
| By: | /s/ Marcelo Santiago | By: | /s/ Joseph P. Allman |
| Name: Marcelo Santiago | Name: Marcelo Santiago | Name: Joseph P. Allman | Name: Joseph P. Allman |
| Title: VP Contracts & Asset Mgmt | Title: VP Contracts & Asset Mgmt | Title: SVP, Chief Financial Officer | Title: SVP, Chief Financial Officer |
| By: | /s/ Marc Thomas Ahlgrimm |  |  |
| Name: Marc Thomas Ahlgrimm | Name: Marc Thomas Ahlgrimm |  |  |
| Title: Director, Contract Administration | Title: Director, Contract Administration |  |  |
| Place: São José dos Campos – SP - Brazil | Place: São José dos Campos – SP - Brazil | Place: Indianapolis, IN | Place: Indianapolis, IN |

---

Amendment No.9 to PA COM0448-18 COM0156-22 Page 4 of 4

------

**Amendment No.9 to Purchase Agreement COM0448-18** 

**[\*\*\*]** 

[\*\*\*]

[\*\*\*] to PA COM0448-18 COM0156-22 - Amendment No.9 to PA COM0448-18 Page 1 of 1

------

**ATTACHMENT "E"** 

**Firm Aircraft Delivery Schedule** 

[\*\*\*]

Attachment "E" of Amendment No.9 to PA COM0448-18 COM0156-22 Page 1 of 1

## Exhibit 10.28

**Exhibit 10.28.13** 

**AMENDMENT No. 10 TO PURCHASE AGREEMENT COM0448-18** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

This Amendment No.10 (the "Amendment No.10") dated as of September 21<sup>st</sup>, 2023 is between **EMBRAER S.A.**, a corporation existing under the laws of Brazil, which address and principal place of business is at Avenida Brigadeiro Faria Lima, 2170, prédio F-100, Putim, in the city of São José dos Campos, State of São Paulo, Brazil ("Seller"); and **REPUBLIC AIRWAYS INC.**, formerly known as Republic Airline Inc. ("Buyer"), collectively referred to herein as the "Parties", and constitutes an amendment and modification to Purchase Agreement COM0448-18 dated December 15th, 2018, as amended from time to time (the "Purchase Agreement").

All capitalized terms not otherwise defined herein shall have the same meaning when used herein as provided in the Purchase Agreement and in case of any conflict between this Amendment No.10 and the Purchase Agreement, this Amendment No.10 shall control.

**WHEREAS,** Aircraft [\*\*\*] have [\*\*\*].

**WHEREAS,** Buyer has requested and Seller has agreed to reschedule the Contractual Delivery Date of certain Aircraft.

**WHEREAS**, this Amendment No. 10 sets forth additional agreements between Seller and Buyer.

NOW, THEREFORE, for good and valuable consideration, which is hereby acknowledged by the Parties, Seller and Buyer agree as follows:

**1. SUBJECT** 

Article 2 of the Purchase Agreement is hereby deleted and replaced by the following:

"**2. SUBJECT**

Subject to the terms and conditions of this Agreement:

2.1 Seller shall sell and deliver and Buyer shall purchase and take delivery of [\*\*\*] Firm Aircraft; and

2.2 Seller [\*\*\*] Buyer the Services and the Technical Publications as described in Attachment "B1" or "B2", as applicable, to this Agreement."

**2. DELIVERY** 

Due to [\*\*\*], Attachment "E" to the Purchase Agreement is hereby deleted and replaced in its entirety by the Attachment "E" to this Amendment No.10. For avoidance of doubt, references to [\*\*\*].

------

&nbsp;&nbsp;&nbsp;&nbsp; <br> **AMENDMENT No. 10 TO PURCHASE AGREEMENT COM0448-18**<br>

**3.** [\*\*\*]

**4. REINSTATEMENT OF PURCHASE AGREEMENT** 

All other provisions and conditions of the referenced Purchase Agreement, as well as its related Attachments and Letter Agreement, which are not specifically modified by this Amendment No.10 shall remain in full force and effect without any change.

**5. COUNTERPARTS** 

This Amendment No.10 may be signed by the Parties hereto in any number of separate counterparts with the same effect as if the signatures thereto and hereto were upon the same instrument and all of which when taken together shall constitute one and the same instrument.

This Amendment No.10 may be signed and exchange by email attaching a copy of the signed Amendment in portable document format with originals to follow by an internationally recognized courier.

[INTENTIONALLY LEFT BLANK – SIGNATURE PAGE FOLLOWS]

Amendment No.10 to PA COM0448-18 COM0094-23 Page 2 of 3

------

&nbsp;&nbsp;&nbsp;&nbsp; <br> **AMENDMENT No. 10 TO PURCHASE AGREEMENT COM0448-18**<br>

IN WITNESS WHEREOF, Seller and Buyer, by their duly authorized officers, have entered into and executed this Amendment No.10 to be effective as of the date first written above.

---

| | | | |
|:---|:---|:---|:---|
| EMBRAER S.A. | EMBRAER S.A. | REPUBLIC AIRWAYS INC | REPUBLIC AIRWAYS INC |
| By: | /s/ Marcelo Santiago | By: | /s/ Joseph P. Allman |
| Name: Marcelo Santiago | Name: Marcelo Santiago | Name: Joseph P. Allman | Name: Joseph P. Allman |
| Title: VP Contracts & Asset Mgmt | Title: VP Contracts & Asset Mgmt | Title: SVP, Chief Financial Officer | Title: SVP, Chief Financial Officer |
| By: | /s/ Marc Thomas Ahlgrimm |  |  |
| Name: Marc Thomas Ahlgrimm | Name: Marc Thomas Ahlgrimm |  |  |
| Title: Director, Contract Administration | Title: Director, Contract Administration |  |  |
| Place: São Jose dos Campos – SP - Brazil | Place: São Jose dos Campos – SP - Brazil | Place: Indianapolis, Indiana | Place: Indianapolis, Indiana |

---

Amendment No.10 to PA COM0448-18 COM0094-23 Page 3 of 3

------

&nbsp;&nbsp;&nbsp;&nbsp; <br> **ATTACHMENT "E"**<br> **Firm Aircraft Delivery Schedule**<br>

[\*\*\*]

Attachment "E" of Amendment No.10 to PA COM0448-18 COM0094-23 Page 1 of 1

## Exhibit 10.28

**Exhibit 10.28.14** 

**AMENDMENT No. 2 TO** 

**LETTER AGREEMENT COM0449-18** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

This Amendment No. 2 to the Letter Agreement COM0449-18, dated as of September 21<sup>st</sup>, 2023 ("Amendment No. 2") relates to the Letter Agreement COM0449-18 between Embraer S.A. ("Seller") and Republic Airways Inc., formerly known as Republic Airline Inc. ("Buyer"), dated December 15, 2018, ("Letter Agreement"). This Amendment No. 2 is between Seller and Buyer (collectively referred to herein as the "Parties").

All capitalized terms used in this Amendment No. 2 which are not defined herein shall have the meaning given in the Purchase Agreement and Letter Agreement. In the event of any conflict between this Amendment No. 2, the Purchase Agreement and Letter Agreement, the terms, conditions and provisions of this Amendment No. 2 shall control.

**WHEREAS,** in connection with that certain Amendment No. 10 to the Purchase Agreement being entered into concurrently herewith, the Parties agree to set forth additional agreements with respect to [\*\*\*];

**NOW, THEREFORE**, for good and valuable consideration which is hereby acknowledged, the Parties hereby agree as follows:

**1.** [\*\*\*]

**2. COUNTERPARTS** 

This Amendment No. 2 may be executed by the Parties hereto in any number of separate counterparts with the same effect as if the signatures thereto and hereto were upon the same instrument and all of which when taken together shall constitute one and the same instrument. This Amendment No. 2 may be signed and exchanged by e-mail with originals to follow by an internationally recognized courier.

**3. MISCELLANEOUS** 

All other provisions of the Letter Agreement that have not been specifically amended or modified by this Amendment No. 2 shall remain valid in full force and effect without any change.

INTENTIONALLY LEFT BLANK

Amendment No.2 to Letter Agreement COM0449-18 COM0371-23 Page 1 of 2

------

IN WITNESS WHEREOF, Seller and Buyer, by their duly authorized officers, have entered into and executed this Amendment No. 2 to Letter Agreement to be effective as of the date first written above.

---

| | | | |
|:---|:---|:---|:---|
| EMBRAER S.A. | EMBRAER S.A. | REPUBLIC AIRWAYS INC. | REPUBLIC AIRWAYS INC. |
| By | /s/ Marcelo Santiago | By | /s/ Joseph P. Allman |
| Name: Marcelo Santiago | Name: Marcelo Santiago | Name: Joseph P. Allman | Name: Joseph P. Allman |
| Title: VP Contracts & Asset Management | Title: VP Contracts & Asset Management | Title: SVP, Chief Financial Officer | Title: SVP, Chief Financial Officer |
| By | /s/ Marc Thomas Ahlgrimm |  |  |
| Name: Marc Thomas Ahlgrimm | Name: Marc Thomas Ahlgrimm |  |  |
| Title: Director, Contract Administration | Title: Director, Contract Administration |  |  |
| Place: São Jose dos Campos – SP - Brazil | Place: São Jose dos Campos – SP - Brazil | Place: Indianapolis, Indiana | Place: Indianapolis, Indiana |

---

Amendment No. 2 to Letter Agreement COM0449-18 COM0371-23 Page 2 of 2

## Exhibit 10.28

**Exhibit 10.28.15** 

&nbsp;&nbsp;&nbsp;&nbsp; <br> **AMENDMENT No. 11 TO PURCHASE AGREEMENT COM0448-18**<br>

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

This Amendment No.11 (the "Amendment No.11") dated as of <u>March 27th</u>, 2024 is between **EMBRAER S.A.**, a corporation existing under the laws of Brazil, which address and principal place of business is at Avenida Brigadeiro Faria Lima, 2170, prédio F-100, Putim, in the city of São José dos Campos, State of São Paulo, Brazil ("Seller"); and Republic Airways Inc., formerly known as Republic Airline Inc. ("Buyer"), collectively referred to herein as the "Parties", and constitutes an amendment and modification to Purchase Agreement COM0448-18 dated December 15th, 2018, as amended from time to time (the "Purchase Agreement").

All capitalized terms not otherwise defined herein shall have the same meaning when used herein as provided in the Purchase Agreement and in case of any conflict between this Amendment No.11 and the Purchase Agreement, this Amendment No.11 shall control.

**WHEREAS**, Buyer and Seller have agreed [\*\*\*].

NOW, THEREFORE, for good and valuable consideration, which is hereby acknowledged by the Parties, Seller and Buyer agree as follows:

**1. PRICE.** 

As a result of [\*\*\*] Article 3.1 of the Purchase Agreement is hereby deleted and replaced as follows:

"3.1 The Aircraft Basic Price, in United States dollars, for each Aircraft is as follows:

[\*\*\*]

"

**2. ATTACHMENT CHANGE** 

As a result of the changes referred to in Article 1 above, the Attachment A5 to the Purchase Agreement is hereby deleted and replaced in its entirety by the Attachment A5 to this Amendment No. 11, which shall be deemed to be Attachment A5 for all purposes under the Purchase Agreement.

------

&nbsp;&nbsp;&nbsp;&nbsp; <br> **AMENDMENT No. 11 TO PURCHASE AGREEMENT COM0448-18**<br>

**3. REINSTATEMENT OF PURCHASE AGREEMENT** 

All other provisions and conditions of the referenced Purchase Agreement, as well as its related Attachments and Letter Agreement, which are not specifically modified by this Amendment No.11shall remain in full force and effect without any change.

**4. COUNTERPARTS** 

This Amendment No.11 may be signed by the Parties hereto in any number of separate counterparts with the same effect as if the signatures thereto and hereto were upon the same instrument and all of which when taken together shall constitute one and the same instrument.

This Amendment No.11 may be signed and exchange by email attaching a copy of the signed Amendment in portable document format with originals to follow by an internationally recognized courier.

[INTENTIONALLY LEFT BLANK – SIGNATURE PAGE FOLLOWS]

Amendment No.11 to PA COM0448-18 COM0041-24 Page 2 of 3

------

&nbsp;&nbsp;&nbsp;&nbsp; <br> **AMENDMENT No. 11 TO PURCHASE AGREEMENT COM0448-18**<br>

IN WITNESS WHEREOF, Seller and Buyer, by their duly authorized officers, have entered into and executed this Amendment No.11 to be effective as of the date first written above.

---

| | | | |
|:---|:---|:---|:---|
| EMBRAER S.A. | EMBRAER S.A. | REPUBLIC AIRWAYS INC | REPUBLIC AIRWAYS INC |
| By: | \s\ Marcelo Santiago | By: | /s/ Joseph P. Allman |
| Name: Marcelo Santiago | Name: Marcelo Santiago | Name: Joseph P. Allman | Name: Joseph P. Allman |
| Title: VP Contracts & Asset Mgmt | Title: VP Contracts & Asset Mgmt | Title: SVP, Chief Financial Officer | Title: SVP, Chief Financial Officer |
| By: | /s/ Marc Thomas Ahlgrimm |  |  |
| Name Marc Thomas Ahlgrimm | Name Marc Thomas Ahlgrimm |  |  |
| Title: Director, Contract Administration | Title: Director, Contract Administration |  |  |
| Place: São Jose Campos – SP – Brazil | Place: São Jose Campos – SP – Brazil | Place: Indianapolis, IN | Place: Indianapolis, IN |

---

Amendment No.11 to PA COM0448-18 COM0041-24 Page 3 of 3

------

&nbsp;&nbsp;&nbsp;&nbsp; <br> **ATTACHMENT "A5"**<br> **E175LR AIRCRAFT CONFIGURATION**<br> ***(Aircraft [\*\*\*])***<br>

**1.** **STANDARD AIRCRAFT** 

The EMBRAER 175 LR Aircraft (the "Aircraft") shall be manufactured according to (i) the standard configuration specified in the Technical Description TD 175 – Rev 23, December 2017, which although not attached hereto, is incorporated herein by reference, and (ii) the characteristics described in the items below.

**2.** **OPTIONAL EQUIPMENT** 

[\*\*\*]

**3.** **EXTERIOR FINISHING** 

The fuselage of the Aircraft shall be painted according to Buyer's colour and paint scheme, which shall be supplied to Embraer by Buyer on or before [\*\*\*]. The wings and the horizontal stabilizer shall be supplied in the standard colours, i.e., grey BAC707.

[\*\*\*]

**4.** **INTERIOR DETAILING** 

Buyer shall inform Embraer up to the customer check list definition ("CCL"), to be held no later than [\*\*\*].

**5.** **BUYER FURNISHED EQUIPMENT (BFE) AND BUYER INSTALLED EQUIPMENT (BIE)** 

The first Aircraft will have electrical galley inserts, such as ovens, coffee makers, hot jugs and water boilers as BFE for certification purpose. Buyer shall deliver such electrical inserts, [\*\*\*].

The trolleys, standard units and the equipment classified as operational requirements shall be BIE items.

[\*\*\*]

**6.** **EMBRAER RIGHT TO PERFORM FOR BUYER** 

If Buyer fails to choose or define the exterior, interior finishing, emergency equipment and/or galley inserts of any Aircraft or fails to promptly inform Embraer of its choice or definition within [\*\*\*], Embraer shall have the right to tender the Aircraft for delivery, as the case may be, with a white overall fuselage colour, fitted with an interior finishing selected by Embraer, and/or with provisions/installation for emergency equipment and galley inserts from the choices available at Embraer, at its reasonable discretion.

Attachment "A5" to PA COM0448-18 COM0041-24 – Amendment No.11 to Purchase Agreement Page 1 of 2

------

&nbsp;&nbsp;&nbsp;&nbsp; <br> **ATTACHMENT "A5"**<br> **E175LR AIRCRAFT CONFIGURATION**<br> ***(Aircraft [\*\*\*])***<br>

In any such cases, no compensation to Buyer or reduction shall [\*\*\*]. Buyer agrees hereby that any action taken by Embraer pursuant to this Article shall not constitute a waiver or release of any obligation of Buyer under the Purchase Agreement, nor a waiver of any event of default which may arise out of Buyer's non performance of such obligation, nor an election or waiver by Embraer of any remedy or right available to Embraer under the Purchase Agreement. Further, Embraer shall be entitled to charge Buyer for reasonable expenses incurred by Embraer in connection with the performance of or compliance with such agreement, as the case may be, payable by Buyer within [\*\*\*] from the presentation of the respective invoice by Embraer to Buyer.

**7.** **REGISTRATION MARKS, TRANSPONDER AND ELT CODES:** 

The Aircraft shall be delivered to Buyer with the registration marks painted on them. The registration marks, the transponder code and ELT protocol coding shall be supplied to Embraer by Buyer no later than [\*\*\*] before each relevant Aircraft's Contractual Delivery Date. Embraer shall be entitled to tender the Aircraft for delivery to Buyer without registration marks, with an inoperative transponder and without setting the ELT protocol coding in case Buyer fails to supply such information to Embraer in due time.

**8.** **EXPORT CONTROL ITEMS** 

The Aircraft contains IRU (Inertial Reference Unit) manufactured by Honeywell International, which is subject to export control under United States of America law. The Aircraft contains an IESI (Integrated Electronic Standby Instrument System) model manufactured by Thales which is not subject to export control, however in the event this IESI model is replaced by any IESI with the QRS-11 gyroscopic microchip, such component is subject to export control under United States of America law.

Transfer or re-export of such items (whether or not incorporated into the Aircraft), as well as their related technology and software may require prior authorization from the US Government.

IT IS HEREBY AGREED AND UNDERSTOOD BY THE PARTIES THAT IF THERE IS ANY CONFLICT BETWEEN THE TERMS OF THIS ATTACHMENT "A1" AND THE TERMS OF THE TECHNICAL DESCRIPTION ABOVE REFERRED, THE TERMS OF THIS ATTACHMENT "A1" SHALL PREVAIL.

Attachment "A5" to PA COM0448-18 COM0041-24 – Amendment No.11 to Purchase Agreement Page 2 of 2

## Exhibit 10.28

**Exhibit 10.28.16** 

**AMENDMENT No. 12 TO PURCHASE AGREEMENT COM0448-18** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

This Amendment No.12 (the "Amendment No.12") dated as of <u>June 18th</u>, 2024 is between **EMBRAER S.A.**, a corporation existing under the laws of Brazil, which address and principal place of business is at Avenida Brigadeiro Faria Lima, 2170, prédio F-100, Putim, in the city of São José dos Campos, State of São Paulo, Brazil ("Seller"); and Republic Airways Inc., formerly known as Republic Airline Inc. ("Buyer"), collectively referred to herein as the "Parties", and constitutes an amendment and modification to Purchase Agreement COM0448-18 dated December 15th, 2018, as amended from time to time (the "Purchase Agreement").

All capitalized terms not otherwise defined herein shall have the same meaning when used herein as provided in the Purchase Agreement and in case of any conflict between this Amendment No.12 and the Purchase Agreement, this Amendment No.12 shall control.

**WHEREAS**, the Parties have agreed to [\*\*\*] the Contractual Delivery Date of Firm Aircraft [\*\*\*].

NOW, THEREFORE, for good and valuable consideration, which is hereby acknowledged by the Parties, Seller and Buyer agree as follows:

**1. DELIVERY.** 

The Attachment E to the Purchase Agreement is hereby deleted and replaced in its entirety by the Attachment E to this Amendment No. 12.

**2. REINSTATEMENT OF PURCHASE AGREEMENT** 

All other provisions and conditions of the referenced Purchase Agreement, as well as its related Attachments and Letter Agreement, which are not specifically modified by this Amendment No.12 shall remain in full force and effect without any change.

**3. COUNTERPARTS** 

This Amendment No.12 may be signed by the Parties hereto in any number of separate counterparts with the same effect as if the signatures thereto and hereto were upon the same instrument and all of which when taken together shall constitute one and the same instrument.

Amendment No. 12 to PA COM0448-18 COM0357-24 Page 1 of 3

------

&nbsp;&nbsp;&nbsp;&nbsp; <br> **AMENDMENT No. 12 TO PURCHASE AGREEMENT COM0448-18**<br>

This Amendment No.12 may be signed and exchange by email attaching a copy of the signed Amendment in portable document format with originals to follow by an internationally recognized courier.

[INTENTIONALLY LEFT BLANK — SIGNATURE PAGE FOLLOWS]

Amendment No. 12 to PA COM0448-18 COM0357-24 Page 2 of 3

------

&nbsp;&nbsp;&nbsp;&nbsp; <br> **AMENDMENT No. 12 TO PURCHASE AGREEMENT COM0448-18**<br>

IN WITNESS WHEREOF, Seller and Buyer, by their duly authorized officers, have entered into and executed this Amendment No. 12 to be effective as of the date first written above.

---

| | | | |
|:---|:---|:---|:---|
| EMBRAER S.A. | EMBRAER S.A. | REPUBLIC AIRWAYS INC | REPUBLIC AIRWAYS INC |
| By: | /s/ Marcelo Santiago | By: | /s/ Joseph P. Allman |
| Name: Marcelo Santiago | Name: Marcelo Santiago | Name: Joseph P. Allman | Name: Joseph P. Allman |
| Title: VP Contracts & Asset Mgmt | Title: VP Contracts & Asset Mgmt | Title: SVP, Chief Financial Officer | Title: SVP, Chief Financial Officer |
| By: | /s/ Marc Thomas Ahlgrimm |  |  |
| Name: Marc Thomas Ahlgrimm | Name: Marc Thomas Ahlgrimm |  |  |
| Title: Director, Contract Administration | Title: Director, Contract Administration |  |  |
| Place: | Place: | Place:<u> </u> | Place:<u> </u> |

---

Amendment No. 12 to PA COM0448-18 COM0357-24 Page 3 of 3

------

&nbsp;&nbsp;&nbsp;&nbsp; <br> **ATTACHMENT "E"**<br> **Firm Aircraft Delivery Schedule**<br>

[\*\*\*]

Attachment "E" of Amendment No. 12 to PA COM0448-18 COM0357-24 Page 1 of 1

## Exhibit 10.28

**Exhibit 10.28.17** 

**AMENDMENT No. 13 TO PURCHASE AGREEMENT COM0448-18** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

This Amendment No.13 (the "Amendment No.13") dated as of April 30<sup>th</sup>, 2025 is between **EMBRAER S.A.**, a corporation existing under the laws of Brazil, which address and principal place of business is at Avenida Brigadeiro Faria Lima, 2170, building F-100, Putim, in the city of São José dos Campos, State of São Paulo, Brazil ("Seller"); and Republic Airways Inc., formerly known as Republic Airline Inc. ("Buyer"), collectively referred to herein as the "Parties", and constitutes an amendment and modification to Purchase Agreement COM0448-18 dated December 15th, 2018, as amended from time to time (the "Purchase Agreement").

All capitalized terms not otherwise defined herein shall have the same meaning when used herein as provided in the Purchase Agreement and in case of any conflict between this Amendment No.13 and the Purchase Agreement, this Amendment No.13 shall control.

**WHEREAS**, Buyer has requested, and Seller has agreed to [\*\*\*] the Contractual Delivery Date of [\*\*\*].

**WHEREAS**, the Parties have agreed to [\*\*\*] the Aircraft [\*\*\*].

**WHEREAS**, this Amendment No. 13 sets forth additional agreements between Seller and Buyer.

NOW, THEREFORE, for good and valuable consideration, which is hereby acknowledged by the Parties, Seller and Buyer agree as follows:

**1. PRICE** 

Article 3.1 of the Purchase Agreement is hereby deleted and replaced as follows:

"3.1 The Aircraft Basic Price, in United States dollars, for each Aircraft is as follows:

[\*\*\*]

"

**2. DELIVERY** 

The Attachment E to the Purchase Agreement is hereby deleted and replaced in its entirety by the Attachment E to this Amendment No. 13.

**3.** [\*\*\*]

------

&nbsp;&nbsp;&nbsp;&nbsp; <br> **AMENDMENT No. 13 TO PURCHASE AGREEMENT COM0448-18**<br>

**4.** [\*\*\*]

**5. REINSTATEMENT OF PURCHASE AGREEMENT** 

All other provisions and conditions of the referenced Purchase Agreement, as well as its related Attachments and Letter Agreement, which are not specifically modified by this Amendment No.13 shall remain in full force and effect without any change.

**6. COUNTERPARTS** 

This Amendment No.13 may be signed by the Parties hereto in any number of separate counterparts with the same effect as if the signatures thereto and hereto were upon the same instrument and all of which when taken together shall constitute one and the same instrument.

This Amendment No.13 may be signed and exchanged by email attaching a copy of the signed Amendment in portable document format with originals to follow by an internationally recognized courier.

[INTENTIONALLY LEFT BLANK – SIGNATURE PAGE FOLLOWS]

Amendment No.13 to PA COM0448-18 COM0123-25 Page 2 of 3

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&nbsp;&nbsp;&nbsp;&nbsp; <br> **AMENDMENT No. 13 TO PURCHASE AGREEMENT COM0448-18**<br>

IN WITNESS WHEREOF, Seller and Buyer, by their duly authorized officers, have entered into and executed this Amendment No.13 to be effective as of the date first written above.

---

| | | | |
|:---|:---|:---|:---|
| EMBRAER S.A. | EMBRAER S.A. | REPUBLIC AIRWAYS INC | REPUBLIC AIRWAYS INC |
| By: | /s/ Arjan Meijer | By: | /s/ Joseph P. Allman |
| Name: Arjan Meijer | Name: Arjan Meijer | Name: Joseph P. Allman | Name: Joseph P. Allman |
| Title: VP Commercial Aviation | Title: VP Commercial Aviation | Title: SVP, Chief Financial Officer | Title: SVP, Chief Financial Officer |
| By: | /s/ Marcelo Santiago |  |  |
| Name: Marcelo Santiago | Name: Marcelo Santiago |  |  |
| Title: VP Contracts & Asset Mgmt | Title: VP Contracts & Asset Mgmt |  |  |
| Place: São José dos Campos SP - Brazil | Place: São José dos Campos SP - Brazil | Place: Indianapolis, IN | Place: Indianapolis, IN |

---

Amendment No.13 to PA COM0448-18 COM0123-25 Page 3 of 3

------

**Amendment No.13 to Purchase Agreement COM0448-18** 

**[\*\*\*]** 

[\*\*\*]

[\*\*\*] to PA COM0448-18 COM0123-25 - Amendment No.13 to PA COM0448-18 Page 1 of 1

------

**ATTACHMENT "E"** 

**Firm Aircraft Delivery Schedule** 

[\*\*\*]

Attachment "E" of Amendment No.13 to PA COM0448-18 COM0123-25 Page 1 of 1

## Exhibit 10.29

**Exhibit 10.29** 

**CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH "[\*\*\*]". SUCH IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) IS OF THE TYPE THE COMPANY TREATS AS PRIVATE OR CONFIDENTIAL.** 

LOAN AND GUARANTEE AGREEMENT

dated as of

November 6, 2020

among

REPUBLIC AIRWAYS INC., as Borrower,

the Guarantors party hereto from time to time,

THE UNITED STATES DEPARTMENT OF THE TREASURY,

and

THE BANK OF NEW YORK MELLON,

as Administrative Agent and Collateral Agent

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**TABLE OF CONTENTS**

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| | | |
|:---|:---|:---|
|  |  | Page |
| ARTICLE I | ARTICLE I | ARTICLE I |
| DEFINITIONS | DEFINITIONS | DEFINITIONS |
|  SECTION 1.01 | Defined Terms | 1 |
|  SECTION 1.02 | Terms Generally | 31 |
|  SECTION 1.03 | Accounting Terms; Changes in GAAP | 31 |
|  SECTION 1.04 | Rates | 32 |
|  SECTION 1.05 | Divisions | 32 |
| ARTICLE II | ARTICLE II | ARTICLE II |
| COMMITMENTS AND BORROWINGS | COMMITMENTS AND BORROWINGS | COMMITMENTS AND BORROWINGS |
|  SECTION 2.01 | Commitment | 32 |
|  SECTION 2.02 | Loans and Borrowings | 32 |
|  SECTION 2.03 | Borrowing Requests | 33 |
|  SECTION 2.04 | [Reserved] | 33 |
|  SECTION 2.05 | [Reserved] | 33 |
|  SECTION 2.06 | Prepayments | 33 |
|  SECTION 2.07 | Reduction and Termination of Commitments | 34 |
|  SECTION 2.08 | Repayment of Loans | 34 |
|  SECTION 2.09 | Interest | 34 |
|  SECTION 2.10 | Benchmark Replacement Setting | 35 |
|  SECTION 2.11 | Evidence of Debt | 36 |
|  SECTION 2.12 | Payments Generally | 37 |
|  SECTION 2.13 | Sharing of Payments | 38 |
|  SECTION 2.14 | Compensation for Losses | 38 |
|  SECTION 2.15 | Increased Costs | 39 |
|  SECTION 2.16 | Taxes | 40 |
|  SECTION 2.17 | [Reserved] | 43 |
|  SECTION 2.18 | [Reserved] | 43 |
|  SECTION 2.19 | Mitigation Obligations; Replacement of Lenders | 43 |
| ARTICLE III | ARTICLE III | ARTICLE III |
| REPRESENTATIONS AND WARRANTIES | REPRESENTATIONS AND WARRANTIES | REPRESENTATIONS AND WARRANTIES |
|  SECTION 3.01 | Existence, Qualification and Power | 44 |
|  SECTION 3.02 | Authorization; No Contravention | 45 |
|  SECTION 3.03 | Governmental Authorization; Other Consents | 45 |
|  SECTION 3.04 | Execution and Delivery; Binding Effect | 45 |
|  SECTION 3.05 | Financial Statements; No Material Adverse Change | 45 |
|  SECTION 3.06 | Litigation | 45 |
|  SECTION 3.07 | Contractual Obligations; No Default | 45 |
|  SECTION 3.08 | Property | 46 |
|  SECTION 3.09 | Taxes | 46 |

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PAGE

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---

| | | |
|:---|:---|:---|
|  SECTION 3.10 | Disclosure | 46 |
|  SECTION 3.11 | Compliance with Laws | 46 |
|  SECTION 3.12 | ERISA Compliance | 46 |
|  SECTION 3.13 | Environmental Matters | 47 |
|  SECTION 3.14 | Investment Company Act | 48 |
|  SECTION 3.15 | Sanctions; Export Controls; Anti-Corruption; AML Laws | 48 |
|  SECTION 3.16 | Solvency | 48 |
|  SECTION 3.17 | Subsidiaries | 48 |
|  SECTION 3.18 | Senior Indebtedness | 48 |
|  SECTION 3.19 | Insurance Matters | 48 |
|  SECTION 3.20 | Labor Matters | 48 |
|  SECTION 3.21 | Insolvency Proceedings | 49 |
|  SECTION 3.22 | Margin Regulations | 49 |
|  SECTION 3.23 | Liens | 49 |
|  SECTION 3.24 | Perfected Security Interests | 49 |
|  SECTION 3.25 | US Citizenship | 49 |
|  SECTION 3.26 | Eligible Business Status | 49 |
| ARTICLE IV | ARTICLE IV | ARTICLE IV |
| CONDITIONS | CONDITIONS | CONDITIONS |
|  SECTION 4.01 | Closing Date Conditions | 50 |
|  SECTION 4.02 | Additional Borrowing Conditions for First Borrowing | 52 |
|  SECTION 4.03 | Additional Borrowing Conditions for Second Borrowing | 54 |
| ARTICLE V | ARTICLE V | ARTICLE V |
| AFFIRMATIVE COVENANTS | AFFIRMATIVE COVENANTS | AFFIRMATIVE COVENANTS |
|  SECTION 5.01 | Financial Statements | 55 |
|  SECTION 5.02 | Certificates; Other Information | 56 |
|  SECTION 5.03 | Notices | 57 |
|  SECTION 5.04 | Preservation of Existence, Etc. | 58 |
|  SECTION 5.05 | Maintenance of Properties | 58 |
|  SECTION 5.06 | Maintenance of Insurance | 58 |
|  SECTION 5.07 | Payment of Obligations | 58 |
|  SECTION 5.08 | Compliance with Laws | 58 |
|  SECTION 5.09 | Environmental Matters | 58 |
|  SECTION 5.10 | Books and Records | 58 |
|  SECTION 5.11 | Inspection Rights | 59 |
|  SECTION 5.12 | Sanctions; Export Controls; Anti-Corruption Laws and AML Laws | 59 |
|  SECTION 5.13 | Guarantors; Additional Collateral | 59 |
|  SECTION 5.14 | Post-Closing Matters | 60 |
|  SECTION 5.15 | Further Assurances | 60 |
|  SECTION 5.16 | Delivery of Appraisals and Valuation Certificates | 60 |
|  SECTION 5.17 | Ratings | 61 |
|  SECTION 5.18 | Regulatory Matters | 61 |
|  SECTION 5.19 | Eligible Receivables | 61 |

---

PAGE

------

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| | | |
|:---|:---|:---|
| ARTICLE VI | ARTICLE VI | ARTICLE VI |
| NEGATIVE COVENANTS | NEGATIVE COVENANTS | NEGATIVE COVENANTS |
|  SECTION 6.01 | [Reserved] | 62 |
|  SECTION 6.02 | Liens | 62 |
|  SECTION 6.03 | Fundamental Changes | 62 |
|  SECTION 6.04 | Dispositions | 62 |
|  SECTION 6.05 | Restricted Payments | 63 |
|  SECTION 6.06 | Investments | 65 |
|  SECTION 6.07 | Transactions with Affiliates | 66 |
|  SECTION 6.08 | [Reserved] | 66 |
|  SECTION 6.09 | [Reserved] | 66 |
|  SECTION 6.10 | Changes in Nature of Business | 67 |
|  SECTION 6.11 | Sanctions; AML Laws | 67 |
|  SECTION 6.12 | Amendments to Organizational Documents | 67 |
|  SECTION 6.13 | [Reserved] | 67 |
|  SECTION 6.14 | Prepayments of Junior Indebtedness | 67 |
|  SECTION 6.15 | Lobbying | 67 |
|  SECTION 6.16 | Use of Proceeds | 67 |
|  SECTION 6.17 | Financial Covenants | 67 |
| ARTICLE VII | ARTICLE VII | ARTICLE VII |
| EVENTS OF DEFAULT | EVENTS OF DEFAULT | EVENTS OF DEFAULT |
|  SECTION 7.01 | Events of Default | 68 |
|  SECTION 7.02 | Application of Payments | 71 |
| ARTICLE VIII | ARTICLE VIII | ARTICLE VIII |
| AGENCY | AGENCY | AGENCY |
|  SECTION 8.01 | Appointment and Authority | 72 |
|  SECTION 8.02 | Collateral Matters | 72 |
|  SECTION 8.03 | Removal or Resignation of Administrative Agent | 72 |
|  SECTION 8.04 | Exculpatory Provisions | 73 |
|  SECTION 8.05 | Reliance by Agents | 75 |
|  SECTION 8.06 | Delegation of Duties | 75 |
|  SECTION 8.07 | Non-Reliance on Agents and Other Lenders | 75 |
|  SECTION 8.08 | Administrative Agent May File Proofs of Claim | 75 |
| ARTICLE IX | ARTICLE IX | ARTICLE IX |
| GUARANTEE | GUARANTEE | GUARANTEE |
|  SECTION 9.01 | Guarantee of the Obligations | 76 |
|  SECTION 9.02 | Payment or Performance by a Guarantor | 76 |
|  SECTION 9.03 | Liability of Guarantors Absolute | 76 |
|  SECTION 9.04 | Waivers by Guarantors | 78 |
|  SECTION 9.05 | Guarantors' Rights of Subrogation, Contribution, Etc. | 78 |

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PAGE

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| | | |
|:---|:---|:---|
|  SECTION 9.06 | Subordination | 78 |
|  SECTION 9.07 | Continuing Guarantee | 78 |
|  SECTION 9.08 | Financial Condition of the Borrower | 79 |
|  SECTION 9.09 | Reinstatement | 79 |
|  SECTION 9.10 | Discharge of Guarantees | 79 |
| ARTICLE X | ARTICLE X | ARTICLE X |
| CARES ACT REQUIREMENTS | CARES ACT REQUIREMENTS | CARES ACT REQUIREMENTS |
|  SECTION 10.01 | CARES Act Compliance | 79 |
|  SECTION 10.02 | Dividends and Buybacks | 79 |
|  SECTION 10.03 | Maintenance of Employment Levels | 80 |
|  SECTION 10.04 | United States Business | 80 |
|  SECTION 10.05 | Limitations on Certain Compensation | 80 |
|  SECTION 10.06 | Continuation of Certain Air Service | 81 |
|  SECTION 10.07 | Treasury Access | 81 |
|  SECTION 10.08 | Additional Defined Terms | 81 |
| ARTICLE XI | ARTICLE XI | ARTICLE XI |
| MISCELLANEOUS | MISCELLANEOUS | MISCELLANEOUS |
|  SECTION 11.01 | Notices; Public Information | 82 |
|  SECTION 11.02 | Waivers; Amendments | 84 |
|  SECTION 11.03 | Expenses; Indemnity; Damage Waiver | 86 |
|  SECTION 11.04 | Successors and Assigns | 87 |
|  SECTION 11.05 | Survival | 90 |
|  SECTION 11.06 | Counterparts; Integration; Effectiveness; Electronic Execution | 90 |
|  SECTION 11.07 | Severability | 91 |
|  SECTION 11.08 | Right of Setoff | 91 |
|  SECTION 11.09 | Governing Law; Jurisdiction; Etc. | 91 |
|  SECTION 11.10 | Waiver of Jury Trial | 92 |
|  SECTION 11.11 | Headings | 92 |
|  SECTION 11.12 | Treatment of Certain Information; Confidentiality | 92 |
|  SECTION 11.13 | Money Laundering; Sanctions | 93 |
|  SECTION 11.14 | Interest Rate Limitation | 93 |
|  SECTION 11.15 | Payments Set Aside | 93 |
|  SECTION 11.16 | No Advisory or Fiduciary Responsibility | 93 |
|  SECTION 11.17 | Acknowledgement and Consent to Bail-In of EEA Financial Institutions | 94 |

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PAGE

------

<u>SCHEDULES</u> 

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| | |
|:---|:---|
| SCHEDULE 3.05 | Financial Statements |
| SCHEDULE 3.17 | Subsidiaries |
| SCHEDULE 4.02 | Supplemental Collateral |
| SCHEDULE 5.14 | Post-Closing Matters |
| SCHEDULE 6.05(i) | Restricted Payments |
| SCHEDULE 6.06 | Investments |
| SCHEDULE 6.07 | Affiliate Transactions |

---

<u>EXHIBITS</u> 

---

| |
|:---|
| EXHIBIT A – Assignment and Assumption |
| EXHIBIT B-1 – Form of U.S. Tax Compliance Certificate |
| EXHIBIT B-2 – Form of U.S. Tax Compliance Certificate |
| EXHIBIT B-3 – Form of U.S. Tax Compliance Certificate |
| EXHIBIT B-4 – Form of U.S. Tax Compliance Certificate |
| EXHIBIT C – Form of Note |
| EXHIBIT D – Form of Borrowing Request |

---

PAGE

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LOAN AND GUARANTEE AGREEMENT dated as of November 6, 2020 (this "<u>Agreement</u>"), among REPUBLIC AIRWAYS INC., a corporation organized under the laws of Indiana (the "<u>Borrower</u>"), REPUBLIC AIRWAYS HOLDINGS INC., a corporation organized under the laws of Delaware (the "<u>Parent</u>"), the Guarantors party hereto from time to time, the UNITED STATES DEPARTMENT OF THE TREASURY ("<u>Treasury</u>") and THE BANK OF NEW YORK MELLON as Administrative Agent and Collateral Agent.

WHEREAS, the Borrower has requested that the Initial Lender (as defined below) extend credit as is permissible under the Coronavirus Aid, Relief, and Economic Security Act, Pub. L. 116-136 (Mar. 27, 2020), as the same may be amended form time to time (the "<u>CARES Act</u>") to the Borrower, and the Initial Lender is willing to do so on the terms and conditions set forth herein; and

WHEREAS, pursuant to Section 4003(h)(1) of the CARES Act, for purposes of the Code (as defined below) the Loans (as defined below) shall be treated as indebtedness and as having been issued for their aggregate stated principal amount, and the interest payable pursuant to <u>Section</u> <u>2.09(a)</u> shall be treated as qualified stated interest.

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, the parties hereto agree as follows:

ARTICLE I

<u>DEFINITIONS</u> 

SECTION 1.01 <u>Defined Terms</u>. As used in this Agreement, the following terms have the meanings specified below:

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Collateral Agent may designate a sub-agent to accept the security interest in any Additional Collateral for the benefit of the Secured Parties; provided further that, with respect to Additional Collateral of the type described in clauses (c), (g) and (i), the Borrower agrees to notify the Collateral Agent as promptly as practicable of any new categories of assets which are expected to be designated as Additional Collateral or any new jurisdictions in which any asset is to be secured or located; provided further that, with respect to Additional Collateral of the type described in clause (e), (f), (g) or (h), (i) such assets are acceptable to the Required Lenders, (ii) the Borrower shall have delivered Appraisals acceptable in form and substance to the Required Lenders with respect to such assets, (iii) such assets are subject to a loan to value framework acceptable to the Required Lenders, (iv) such assets are pledged pursuant to documentation acceptable in form and substance to the Required Lenders and (v) the benefits of pledging such assets outweigh the associated cost, burden, difficulty or other consequences, as determined by the Required Lenders in their sole discretion.

"<u>Adjusted LIBO Rate</u>" means, as to any Borrowing for any Interest Period, an interest rate per annum (rounded upwards, if necessary, to the next 1/100 of 1%) equal to (a) the LIBO Rate for such Interest Period <u>divided by</u> (b) one <u>minus</u> the Eurodollar Reserve Percentage.

"<u>Administrative Account</u>" means the account opened with the Administrative Agent in the name of the Initial Lender as notified to the Borrower and the Initial Lender, or such other account as the Administrative Agent shall advise the Borrower and each Lender from time to time.

"<u>Administrative Agency Fee Letter</u>" means any fee letter entered into between the Borrower, the Administrative Agent and the Collateral Agent, or with any successor administrative agent or collateral agent, in its capacity as administrative agent and in its capacity as collateral agent under any of the Loan Documents.

"<u>Administrative Agent</u>" means The Bank of New York Mellon, in its capacity as administrative agent under any of the Loan Documents, or any successor administrative agent.

"<u>Administrative Questionnaire</u>" means an Administrative Questionnaire in a form supplied by or otherwise acceptable to the Administrative Agent.

"<u>Affected Financial Institution</u>" means (a) any EEA Financial Institution or (b) any UK Financial Institution.

"<u>Affiliate</u>" means any Person that directly or indirectly controls, is controlled by, or is under common control with, any other Person. For purposes of this definition, "control" of a Person shall mean having the power, directly or indirectly, to direct or cause the direction of the management and policies of such Person, whether by ownership of voting equity, by contract, or otherwise.

"<u>Agent Parties</u>" has the meaning specified in <u>Section</u> <u>11.01(d)(ii)</u>.

"<u>Agent Responsible Officer</u>" means, when used with respect to an Agent, any vice president, assistant vice president, assistant treasurer or trust officer in the corporate trust and agency administration of the Agent or any other officer of the Agent customarily performing functions similar to those performed by any of the above-designated officers, and, in each case, who shall have direct responsibility for the administration of this Agreement and also means, with respect to a particular agency matter, any other officer to whom such matter is referred because of his or her knowledge of and familiarity with the particular subject.

"<u>Agents</u>" means any of the Administrative Agent and the Collateral Agent.

------

"<u>Agreement</u>" has the meaning specified in introductory paragraph hereof.

"<u>Alternate Base Rate</u>" means, for any day, a rate per annum equal to the highest of (a) the Prime Rate in effect on such day, (b) the Federal Funds Effective Rate in effect on such day <u>plus</u> 0.50% and (c) the Adjusted LIBO Rate for a one-month term in effect on such day (taking into account any LIBO Rate floor under the definition of "Adjusted LIBO Rate") <u>plus</u> 1.00%. Any change in the Alternate Base Rate due to a change in the Prime Rate, the Federal Funds Effective Rate or such Adjusted LIBO Rate shall be effective from and including the effective date of such change in the Prime Rate, the Federal Funds Effective Rate or such Adjusted LIBO Rate, respectively.

"<u>AML Laws</u>" means (a) the USA Patriot Act of 2001 (Pub. L. No. 107-56), (b) the U.S. Money Laundering Control Act of 1986, as amended, (c) the Bank Secrecy Act, 31 U.S.C. sections 5301 et seq., (d) Laundering of Monetary Instruments, 18 U.S.C. section 1956, (e) Engaging in Monetary Transactions in Property Derived from Specified Unlawful Activity, 18 U.S.C. section 1957, (f) the Financial Recordkeeping and Reporting of Currency and Foreign Transactions Regulations (Title 31 Part 103 of the US Code of Federal Regulations), or (g) any other applicable money laundering or financial recordkeeping Laws.

"<u>Applicable Law</u>" means, as to any Person, all applicable Laws binding upon such Person or to which such a Person is subject.

"<u>Applicable Percentage</u>" means, with respect to any Lender, the percentage of the total Outstanding Amount of Loans of all Lenders represented by the aggregate Outstanding Amount of Loans of such Lender at such time.

"<u>Applicable Rate</u>" means 3.50%.

"<u>Appraisal</u>" means any appraisal specifying a value in Dollars (and not a range of values), dated as of the delivery thereof, prepared by an Eligible Appraiser that certifies, at the time of determination, in reasonable detail the appraised value of Eligible Collateral; <u>provided</u> that any methodology, form of presentation and all assumptions must be acceptable to the Appropriate Party; <u>provided</u>, <u>further</u>, that the methodology, form of presentation and assumptions in the Appraisal delivered on the Closing Date pursuant to <u>Section</u> <u>4.01(i)</u> shall be satisfactory for any subsequent Appraisal with respect to the same category and specific type of Eligible Collateral.

"<u>Appraised Value</u>" means, as of any date, (a) the specific value in Dollars (and not a range of values) of any property constituting Eligible Collateral (other than cash, Cash Equivalents and Qualified Receivables) as reflected in the most recent Appraisal, (b) with respect to any cash pledged or being pledged at such time as Collateral, 160% of the face amount, (c) with respect to any Cash Equivalents pledged or being pledged at such time as Collateral, 100% of the fair market value thereof as determined by the Parent in accordance with customary financial market practices determined no earlier than 45 days prior to such date and (d) with respect to any Qualified Receivables pledged or being pledged at such time as Collateral, 170% of the net book value thereof as certified by a Responsible Officer of the Parent in the most recent Valuation Certificate; <u>provided</u> that (i) if no Appraisal or Valuation Certificate, as applicable, relating to such Eligible Collateral has been delivered to the Collateral Agent prior to such date, the Appraised Value of such Eligible Collateral shall be deemed to be zero, (ii) in the case of any such property consisting of ground support equipment, the Appraised Value shall be deemed to be 50% of the value set forth in the most recent Appraisal, (iii) in the case of any such property consisting of aircraft or airframes that are 20 years old or older as of the date of this Agreement (or, in the case of Additional Collateral, as of the date upon which such Additional Collateral is pledged as Collateral to the Collateral Agent for the benefit of the Secured Parties to secure the Obligations), the Appraised Value shall be deemed to be 70% of the value set forth in the most recent Appraisal and (iv) in the case of any such property consisting of Spare Parts, the Appraised Value shall be deemed to be the greater of (A) the value set forth in the most recent Appraisal minus $250,000 and (B) $0.

------

"<u>Appropriate Party</u>" means (i) while the Initial Lender holds any Commitment or Loan, the Initial Lender and (ii) if the Initial Lender is no longer a Lender, the Administrative Agent (acting at the direction of the Required Lenders).

"<u>Approved Fund</u>" means any Fund that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender.

"<u>Assignment and Assumption</u>" means an assignment and assumption entered into by a Lender and an Eligible Assignee (with the consent of any party whose consent is required by <u>Section</u> <u>11.04</u>), and accepted by the Administrative Agent, in substantially the form of Exhibit A or any other form approved by the Administrative Agent.

"<u>ASU</u>" means the Accounting Standards Update 2016-02, Leases (Topic 842) by the Financial Accounting Standards Board issued on February 25, 2016.

"<u>Attributable Indebtedness</u>" means, as of any date of determination, (a) in respect of any Capitalized Lease Obligations of any Person, the capitalized amount thereof that would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP, and (b) in respect of any Synthetic Lease Obligation, the capitalized amount of the remaining lease payments under the relevant lease that would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP if such lease were accounted for as a capital lease.

"<u>Available Tenor</u>" means, as of any date of determination and with respect to the then-current Benchmark, as applicable, any tenor for such Benchmark or payment period for interest calculated with reference to such Benchmark, as applicable, that is or may be used for determining the length of an Interest Period pursuant to this Agreement as of such date and not including, for the avoidance of doubt, any tenor for such Benchmark that is then-removed from the definition of "Interest Period" pursuant to <u>Section</u> <u>2.10(d)</u>.

"<u>Bail-In Action</u>" means the exercise of any Write-Down and Conversion Powers by an applicable Resolution Authority in respect of any liability of any Affected Financial Institution.

"<u>Bail-In Legislation</u>" means, (a) with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing Law for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule and (b) with respect to the United Kingdom, Part I of the United Kingdom Banking Act 2009 (as amended from time to time) and any other law, regulation or rule applicable in the United Kingdom relating to the resolution of unsound or failing banks, investment firms or other financial institutions or their affiliates (other than through liquidation, administration or other insolvency proceedings).

"<u>Benchmark</u>" means, initially, USD LIBO Rate; <u>provided</u> that if a Benchmark Transition Event or an Early Opt-in Election, as applicable, and its related Benchmark Replacement Date have occurred with respect to USD LIBO Rate or the then-current Benchmark, then "Benchmark" means the applicable Benchmark Replacement to the extent that such Benchmark Replacement has replaced such prior benchmark rate pursuant to <u>Section</u> <u>2.10(a)</u>.

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"<u>Benchmark Replacement</u>" means, for any Available Tenor, the first alternative set forth in the order below that can be determined by the Required Lenders for the applicable Benchmark Replacement Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the sum of: (a) Term SOFR and (b) the related Benchmark Replacement Adjustment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the sum of: (a) Daily Simple SOFR and (b) the related Benchmark Replacement Adjustment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) the sum of: (a) the alternate benchmark rate that has been selected by (y) so long as the Initial
Lender is a Lender, the Initial Lender and (z) otherwise, the Required Lenders and the Borrower, in each case, as the replacement for the then-current Benchmark for the applicable Corresponding Tenor giving due consideration to (i) any
selection or recommendation of a replacement benchmark rate or the mechanism for determining such a rate by the Relevant Governmental Body or (ii) any evolving or then-prevailing market convention for determining a benchmark rate as a
replacement for the then-current Benchmark for U.S. dollar-denominated syndicated credit facilities at such time and (b) the related Benchmark Replacement Adjustment;

<u>provided</u> that, in the case of clause (1), such Unadjusted Benchmark Replacement is displayed on a screen or other information service that publishes such rate from time to time as selected by the Required Lenders in their reasonable discretion and such screen is administratively acceptable as determined by the Administrative Agent in its reasonable discretion. If the Benchmark Replacement as determined pursuant to clause (1), (2) or (3) above would be less than the Floor, the Benchmark Replacement will be deemed to be the Floor for the purposes of this Agreement and the other Loan Documents; provided further that any such Benchmark Replacement shall be administratively feasible as determined by the Administrative Agent in its reasonable discretion.

"<u>Benchmark Replacement Adjustment</u>" means, with respect to any replacement of the then- current Benchmark with an Unadjusted Benchmark Replacement for any applicable Interest Period and Available Tenor for any setting of such Unadjusted Benchmark Replacement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) for purposes of clauses (1) and (2) of the definition of "Benchmark Replacement," the first
alternative set forth in the order below that can be determined by the Required Lenders:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a
positive or negative value or zero) as of the Reference Time such Benchmark Replacement is first set for such Interest Period that has been selected or recommended by the Relevant Governmental Body for the replacement of such Benchmark with the
applicable Unadjusted Benchmark Replacement for the applicable Corresponding Tenor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the spread adjustment (which may be a positive or negative value or zero) as of the Reference Time such
Benchmark Replacement is first set for such Interest Period that would apply to the fallback rate for a derivative transaction referencing the ISDA Definitions to be effective upon an index cessation event with respect to such Benchmark for the
applicable Corresponding Tenor; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) for purposes of clause (3) of the definition of "Benchmark Replacement," the spread adjustment,
or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by (y) so long as the Initial Lender is a Lender, the Initial Lender and (z) otherwise, the
Required Lenders and the Borrower, in each case, for the applicable Corresponding Tenor giving due consideration to (i) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for
the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body on the applicable Benchmark Replacement Date or (ii) any evolving or then-prevailing market convention for determining a
spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement for U.S. dollar- denominated syndicated credit facilities;

<u>provided</u> that, in the case of clause (1) above, such adjustment is displayed on a screen or other information service that publishes such Benchmark Replacement Adjustment from time to time as selected by the Required Lenders in their reasonable discretion and such screen is administratively acceptable as determined by the Administrative Agent in its reasonable discretion; provided that, any such Benchmark Replacement Adjustment shall be administratively feasible as determined by the Administrative Agent in its reasonable discretion.

"<u>Benchmark Replacement Conforming Changes</u>" means, with respect to any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of "Alternate Base Rate," the definition of "Business Day," the definition of "Interest Period," timing and frequency of determining rates and making payments of interest, timing of borrowing requests or prepayment, conversion or continuation notices, length of lookback periods, the applicability of breakage provisions, and other technical, administrative or operational matters) that the Administrative Agent (after consultation with the Required Lenders) decides may be appropriate to reflect the adoption and implementation of such Benchmark Replacement and to permit the administration thereof by the Administrative Agent in a manner substantially consistent with market practice (or, if the Administrative Agent (after consultation with the Required Lenders) decides that adoption of any portion of such market practice is not administratively feasible or if the Administrative Agent (after consultation with the Required Lenders) determines that no market practice for the administration of such Benchmark Replacement exists, in such other manner of administration as the Administrative Agent (after consultation with the Required Lenders) decides is reasonably necessary in connection with the administration of this Agreement and the other Loan Documents). The Required Lenders shall cooperate in good faith with the Administrative Agent so that the Administrative Agent may determine such Benchmark Replacement Conforming Changes.

"<u>Benchmark Replacement Date</u>" means the earliest to occur of the following events with respect to the then-current Benchmark:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) in the case of clause (1) or (2) of the definition of "Benchmark Transition Event," the later of
(a) the date of the public statement or publication of information referenced therein and (b) the date on which the administrator of such Benchmark (or the published component used in the calculation thereof) permanently or indefinitely
ceases to provide all Available Tenors of such Benchmark (or such component thereof);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) in the case of clause (3) of the definition of "Benchmark Transition Event," the date of the
public statement or publication of information referenced therein; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) in the case of an Early Opt-in Election, (y) so long as the
Initial Lender is a Lender, the sixth (6<sup>th</sup>) Business Day after the date notice of such Early Opt-in Election is provided to the Administrative Agent and
(z) otherwise, the sixth (6<sup>th</sup>) Business Day after the date notice of such Early Opt-in Election is provided to the Administrative Agent, so long as the
Administrative Agent has not received, by 5:00 p.m. (New York City time) on the fifth (5<sup>th</sup>) Business Day after the date notice of such Early Opt-in Election
is provided to the Lenders, written notice of objection to such Early Opt-in Election from Lenders comprising the Required Lenders.

For the avoidance of doubt, (i) if the event giving rise to the Benchmark Replacement Date occurs on the same day as, but earlier than, the Reference Time in respect of any determination, the Benchmark Replacement Date will be deemed to have occurred prior to the Reference Time for such determination and (ii) the "Benchmark Replacement Date" will be deemed to have occurred in the case of clause (1) or (2) with respect to any Benchmark upon the occurrence of the applicable event or events set forth therein with respect to all then-current Available Tenors of such Benchmark (or the published component used in the calculation thereof).

"<u>Benchmark Transition Event</u>" means the occurrence of one or more of the following events with respect to the then-current Benchmark:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) a public statement or publication of information by or on behalf of the administrator of such Benchmark (or the
published component used in the calculation thereof) announcing that such administrator has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof), permanently or indefinitely; <u>provided</u> that, at the
time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) a public statement or publication of information by the regulatory supervisor for the administrator of such
Benchmark (or the published component used in the calculation thereof), the Federal Reserve Board, the Federal Reserve Bank of New York, an insolvency official with jurisdiction over the administrator for such Benchmark (or such component), a
resolution authority with jurisdiction over the administrator for such Benchmark (or such component) or a court or an entity with similar insolvency or resolution authority over the administrator for such Benchmark (or such component), which states
that the administrator of such Benchmark (or such component) has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof) permanently or indefinitely; <u>provided</u> that, at the time of such statement or
publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) a public statement or publication of information by the regulatory supervisor for the administrator of such
Benchmark (or the published component used in the calculation thereof) announcing that all Available Tenors of such Benchmark (or such component thereof) are no longer representative.

For the avoidance of doubt, a "Benchmark Transition Event" will be deemed to have occurred with respect to any Benchmark if a public statement or publication of information set forth above has occurred with respect to each then-current Available Tenor of such Benchmark (or the published component used in the calculation thereof).

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"<u>Benchmark Unavailability Period</u>" means the period (if any) (x) beginning at the time that a Benchmark Replacement Date pursuant to clauses (1) or (2) of that definition has occurred if, at such time, no Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Loan Document in accordance with <u>Section</u> <u>2.10</u> and (y) ending at the time that a Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Loan Document in accordance with <u>Section</u> <u>2.10</u>.

"<u>Beneficial Owner</u>" has the meaning assigned to such term in Rule 13d-3 and Rule 13d-5 under the Exchange Act, except that in calculating the beneficial ownership of any particular "person" (as that term is used in Section 13(d)(3) of the Exchange Act), such "person" will be deemed to have beneficial ownership of all securities that such "person" has the right to acquire by conversion or exercise of other securities, whether such right is currently exercisable or is exercisable only after the passage of time.

"<u>Beneficial Ownership Certification</u>" means a certification regarding beneficial ownership as required by the Beneficial Ownership Regulation.

"<u>Beneficial Ownership Regulation</u>" means 31 C.F.R. § 1010.230.

"<u>Borrower</u>" has the meaning specified in introductory paragraph hereof.

"<u>Borrower Materials</u>" has the meaning specified in <u>Section</u> <u>11.01(e)</u>.

"<u>Borrowing</u>" means a borrowing of Loans.

"<u>Borrowing Request</u>" means a request for a Borrowing in substantially the form of Exhibit D or any other form approved by the Administrative Agent.

"<u>Business Day</u>" means any day on which Treasury and the Federal Reserve Bank of New York are both open for business that is not a Saturday, Sunday or other day that is a legal holiday under the laws of the State of New York or is a day on which banking institutions in such state are authorized or required by Law to close; <u>provided</u> that, when used in connection with a Loan that bears interest by reference to the Adjusted LIBO Rate, the term "<u>Business Day</u>" means any such day that is also a day on which dealings in Dollar deposits are conducted by and between banks in the London interbank market.

"<u>Capital Markets Offering</u>" means any offering of "securities" (as defined under the Securities Act and, including, for the avoidance of doubt, any offering of pass-through certificates by any pass-through trust established by the Parent or any of its Subsidiaries) in (a) a public offering registered under the Securities Act, or (b) an offering not required to be registered under the Securities Act (including, without limitation, a private placement under Section 4(a)(2) of the Securities Act, an exempt offering pursuant to Rule 144A and/or Regulation S of the Securities Act and an offering of exempt securities).

"<u>Capitalized Lease Obligations</u>" means, at the time any determination thereof is to be made, the amount of the liability in respect of a Capitalized Lease that would at such time be required to be capitalized and reflected as a liability on a balance sheet (excluding the footnotes thereto) prepared in accordance with GAAP; <u>provided</u> that all leases of such Person that are or would have been treated as operating leases for purposes of GAAP prior to the issuance of the ASU shall continue to be accounted for as operating leases for purposes of all financial definitions and calculations for purposes of this Agreement (whether or not such operating lease obligations were in effect on such date) notwithstanding the fact that such obligations are required in accordance with the ASU (on a prospective or retroactive basis or otherwise) to be treated as capitalized lease obligations for other purposes.

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"<u>Capitalized Leases</u>" means all leases that have been or should be, in accordance with GAAP as in effect on the Closing Date, recorded as capitalized leases; <u>provided</u> that for all purposes hereunder the amount of obligations under any Capitalized Lease shall be the amount thereof accounted for as a liability in accordance with GAAP; <u>provided</u>, <u>further</u>, that all leases of such Person that are or would have been treated as operating leases for purposes of GAAP prior to the issuance of the ASU shall continue to be accounted for as operating leases for purposes of all financial definitions and calculations for purposes of this Agreement (whether or not such operating lease obligations were in effect on such date) notwithstanding the fact that such obligations are required in accordance with the ASU (on a prospective or retroactive basis or otherwise) to be treated as capitalized lease obligations for other purposes.

"<u>CARES Act</u>" has the meaning specified in the preamble to this Agreement.

"<u>Cash Equivalents</u>" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the United States of America (or by any agency thereof to the extent such obligations are backed by the full faith and credit of the United States of America), in each case maturing within one year from the date of acquisition thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) investments in commercial paper maturing within one year from the date of acquisition thereof and having, at such date of acquisition, a rating of at least A-2 from S&P or at least P-2 from Moody's;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) investments in certificates of deposit, banker's acceptances and time deposits maturing within one year from the date of acquisition thereof issued or guaranteed by or placed with, and money market deposit accounts issued or offered by, any domestic office of any commercial bank organized under the laws of the United States of America or any State thereof that has a combined capital and surplus and undivided profits of not less than $250,000,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) money market funds that (i) comply with the criteria set forth in SEC Rule 2a-7 under the Investment Company Act of 1940, (ii) are rated AAA and Aaa (or equivalent rating) by at least two (2) Credit Rating Agencies and (iii) have portfolio assets of at least $5,000,000,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) deposits available for withdrawal on demand with commercial banks organized in the United States having capital and surplus in excess of $100,000,000; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) other short-term liquid investments held by the Parent and the Subsidiaries as of the Closing Date in accordance with their normal investment policies and practices for cash management.

"<u>CCR Certificate</u>" has the meaning specified in <u>Section</u> <u>6.17(b)</u>.

"<u>CCR Certificate Delivery Date</u>" has the meaning specified in <u>Section</u> <u>6.17(b)</u>.

"<u>CCR Reference Date</u>" has the meaning specified in <u>Section</u> <u>6.17(b)</u>.

"<u>CFC</u>" means a controlled foreign corporation within the meaning of Section 957 of the Code.

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"<u>CFC Holdco</u>" means any Domestic Subsidiary that has no material assets other than Equity Interests of one or more Foreign Subsidiaries that are CFCs.

"<u>Change in Law</u>" means the occurrence, after the date of this Agreement, of any of the following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation, implementation or application thereof by any Governmental Authority or (c) the making or issuance of any request, rule, guideline or directive (whether or not having the force of law) by any Governmental Authority; <u>provided</u> that notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith and (y) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a "Change in Law", regardless of the date enacted, adopted or issued.

"<u>Change of Control</u>" means the occurrence of any of the following: (a) the sale, lease, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the properties or assets of the Borrower and its Subsidiaries, or if the Borrower is a direct or indirect Subsidiary of the Parent, the Parent and its Subsidiaries, taken as a whole, to any Person (including any "person" (as that term is used in Section 13(d)(3) of the Exchange Act)); (b) the consummation of any transaction (including, without limitation, any merger or consolidation), the result of which is that any Person (including any "person" (as defined above)) becomes the Beneficial Owner, directly or indirectly, of more than 50% of the Voting Stock of the Borrower or the Parent, as applicable, (measured by voting power rather than number of shares), other than (i) any such transaction where the Voting Stock of the Borrower or the Parent, as applicable, (measured by voting power rather than number of shares) outstanding immediately prior to such transaction constitutes or is converted into or exchanged for at least a majority of the outstanding shares of the Voting Stock of such Beneficial Owner (measured by voting power rather than number of shares), or (ii) the consummation of any merger or consolidation of the Borrower or the Parent, as applicable, with or into any Person (including any "person" (as defined above)) which owns or operates (directly or indirectly through a contractual arrangement) a Permitted Business (a "<u>Permitted Person</u>") or a Subsidiary of a Permitted Person, in each case, if immediately after such transaction no Person (including any "person" (as defined above)) is the Beneficial Owner, directly or indirectly, of more than 50% of the total Voting Stock of such Permitted Person (measured by voting power rather than number of shares); (c) if the Borrower is a direct or indirect Subsidiary of the Parent, the Parent ceasing to own, directly or indirectly, 100% of the Equity Interests of the Borrower; (d) the adoption of a plan relating to the liquidation or dissolution of the Borrower or the Parent or (e) the occurrence of a "change of control", "change in control" or similar event under any Material Indebtedness of the Borrower, the Parent or any parent entity of the foregoing.

"<u>Closing Date</u>" means the first date all the conditions precedent in <u>Section</u> <u>4.01</u> are satisfied.

"<u>Code</u>" means the Internal Revenue Code of 1986, as amended from time to time.

"<u>Collateral</u>" has the meaning assigned to such term in the Pledge and Security Agreement.

"<u>Collateral Agent</u>" means The Bank of New York Mellon, in its capacity as collateral agent under any of the Loan Documents, or any successor collateral agent.

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"<u>Collateral Coverage Ratio</u>" means, as of any date of determination, the ratio of (i) the Appraised Value of the Eligible Collateral as of the date of the Appraisal or Valuation Certificate most recently delivered with respect to such Eligible Collateral pursuant to <u>Section</u> <u>5.16</u> (or in the case of cash and Cash Equivalents, as of such date of determination) to (ii) the aggregate principal amount of all Loans and Commitments outstanding as of such date; <u>provided</u> that for the purposes of calculating clause (i) above, (w) no more than 85% of the Appraised Value of the Eligible Collateral may correspond to Qualified Receivables, (x) no more than 25% of the Appraised Value of the Eligible Collateral may correspond to ground support equipment, (y) no more than 35% of the Appraised Value of the Eligible Collateral may correspond to aircraft or airframes that are 20 years old or older as of the date of this Agreement (or, in the case of Additional Collateral, on the date on which such Additional Collateral is pledged as Collateral to the Collateral Agent for the benefit of the Secured Parties to secure the Obligations) and (z) any amounts held in the Collateral Proceeds Account shall not be included.

"<u>Collateral Proceeds Account</u>" means a deposit account in the name of the Borrower that is subject to an agreement in form and substance satisfactory to the Appropriate Party establishing Control (as defined in the Pledge and Security Agreement) of such account by the Collateral Agent.

"<u>Commitment</u>" means the commitment of the Initial Lender to make Loans in the amount of $77,000,000, as such commitment may be reduced or terminated pursuant to <u>Section</u> <u>2.07</u>.

"<u>Communications</u>" has the meaning specified in <u>Section</u> <u>11.01(d)(ii)</u>.

"<u>Competitor</u>" means (i) any Person operating an Eligible Business and (ii) any Affiliate of any Person described in clause (i) (other than any Affiliate of such Person as a result of common control by a Governmental Authority or instrumentality thereof and any Affiliate of such Person under common control with such Person which Affiliate is not actively involved in the management and/or operations of such Person).

"<u>Connection Income Taxes</u>" means Other Connection Taxes that are imposed on or measured by net income (however denominated) or that are franchise Taxes or branch profits Taxes.

"<u>Contractual Obligation</u>" means, as to any Person, any provision of any security issued by such Person or of any agreement, instrument or other undertaking to which such Person is a party or by which it or any of its property is bound.

"<u>Control</u>" means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise. "<u>Controlling</u>" and "<u>Controlled</u>" have meanings analogous thereto.

"<u>Convertible Indebtedness</u>" means Indebtedness of the Parent that is convertible into common Equity Interests of the Parent (and cash in lieu of fractional shares) and/or cash (in an amount determined by reference to the price of such common Equity Interests).

"<u>Corresponding Tenor</u>" with respect to any Available Tenor means, as applicable, either a tenor (including overnight) or an interest payment period having approximately the same length (disregarding business day adjustment) as such Available Tenor.

"<u>Credit Parties</u>" means the Borrower and the Guarantors.

"<u>Credit Rating</u>" means a rating as determined by a Credit Rating Agency of the Parent's non-credit-enhanced, senior unsecured long-term indebtedness.

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"<u>Credit Rating Agency</u>" means a nationally recognized credit rating agency that evaluates the financial condition of issuers of debt instruments and then assigns a rating that reflects its assessment of the issuer's ability to make debt payments.

"<u>Daily Simple SOFR</u>" means, for any day, SOFR, with the conventions for this rate (which will include a lookback) being established by the Required Lenders in accordance with the conventions for this rate selected or recommended by the Relevant Governmental Body for determining "Daily Simple SOFR" for business loans; <u>provided</u> that, if the Administrative Agent decides that any such convention is not administratively feasible for the Administrative Agent, then the Required Lenders may establish another convention in its reasonable discretion, subject to the determination by the Administrative Agent of the administrative feasibility of such convention.

"<u>Debtor Relief Laws</u>" means the Bankruptcy Code of the United States of America, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the United States or other applicable jurisdictions from time to time in effect.

"<u>Default</u>" means any event or condition that constitutes an Event of Default or that, with the giving of any notice, the passage of time, or both, would be an Event of Default.

"<u>Default Rate</u>" means an interest rate (before as well as after judgment) equal to the applicable interest rate <u>plus</u> 2.00% per annum.

"<u>Disposition</u>" or "<u>Dispose</u>" means the sale, transfer (including through a plan of division), license, lease or other disposition of any property by any Person (including (i) any sale and leaseback transaction, any issuance of Equity Interests by a Subsidiary of such Person and (ii) with respect to Intellectual Property, any covenant not to sue, release, abandonment, lapse, forfeiture, dedication to the public or other similar disposition of Intellectual Property), including any sale, assignment, transfer or other disposal, with or without recourse, of any notes or accounts receivable or any rights and claims associated therewith.

"<u>Disqualified Equity Interest</u>" means any Equity Interest that, by its terms (or the terms of any security or other Equity Interests into which it is convertible or for which it is exchangeable), or upon the happening of any event or condition (a) matures or is mandatorily redeemable (other than solely for Equity Interests that are not Disqualified Equity Interests), pursuant to a sinking fund obligation or otherwise (except as a result of a change of control or asset sale so long as any rights of the holders thereof upon the occurrence of a change of control or asset sale event shall be subject to the prior repayment in full of the Loans and all other Obligations that are accrued and payable and the termination of the Commitments), (b) is redeemable at the option of the holder thereof, in whole or in part, (c) provides for scheduled payments of dividends in cash, or (d) is or becomes convertible into or exchangeable for Indebtedness or any other Equity Interests that would constitute Disqualified Equity Interests, in each case, prior to the date that is ninety-one (91) days after the Maturity Date; <u>provided</u> that if such Equity Interests are issued pursuant to a plan for the benefit of employees of the Parent or any Subsidiary or by any such plan to such employees, such Equity Interests shall not constitute Disqualified Equity Interests solely because they may be required to be repurchased by the Parent or its Subsidiaries in order to satisfy applicable statutory or regulatory obligations or as a result of such employee's termination, death or disability.

"<u>Dollar</u>" and "<u>$</u>" mean lawful money of the United States.

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"<u>Domestic Subsidiary</u>" means any Subsidiary that is organized under the Laws of the United States of America, any state thereof, or the District of Columbia.

"<u>DOT</u>" means the U.S. Department of Transportation.

"<u>Early Opt-in Election</u>" means, if the then-current Benchmark is USD LIBO Rate, the occurrence of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) (x) so long as the Initial Lender is a Lender, the Initial Lender and (y) otherwise, the Required Lenders,
in each case notifying to the Administrative Agent that the Initial Lender or the Required Lenders have determined that at least five currently outstanding U.S. dollar-denominated syndicated credit facilities at such time contain (as a result of
amendment or as originally executed) a SOFR-based rate (including SOFR, a term SOFR or any other rate based upon SOFR) as a benchmark rate (and such syndicated credit facilities are identified in such notice and are publicly available for review),
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) (x) so long as the Initial Lender is a Lender, the election by the Initial Lender and (y) otherwise, the
joint election by the Required Lenders and the Borrower to trigger a fallback from USD LIBO Rate and, in each case, the provision to the Administrative Agent and the other Lenders of written notice of such election.

"<u>EEA Financial Institution</u>" means (a) any credit institution or investment firm established in any EEA Member Country that is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country that is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country that is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent.

"<u>EEA Member Country</u>" means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

"<u>EEA Resolution Authority</u>" means any public administrative authority or any person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

"<u>Eligible Appraiser</u>" means (a) with respect to aircraft or engines: Acumen Aviation, Aircraft Information Services Inc., Alton Aviation Consultancy LLC, Ascend Worldwide Group, Aviation Advisors Group, LLC, Aviation Asset Management Inc., Aviation Specialists Group, AVITAS, Inc., BBC Aviation Enterprises LLC, BK Associates, Inc., Collateral Verifications, Inc., IBA Group Ltd., ICF International Inc., International Bureau of Aviation, Morten Beyer & Agnew or PAC Appraisal Inc.; (b) with respect to slots, gates or routes: Alton Aviation Consultancy LLC, BK Associates, Inc., ICF International Inc., Morten Beyer & Agnew or PAC Appraisal Inc.; (c) with respect to parts: Acumen Aviation, Alton Aviation Consultancy LLC, Aviation Advisors Group, LLC, Aviation Asset Management Inc., BBC Aviation Enterprises LLC, CBIZ Valuation Group, LLC, Collateral Verifications, Inc., ICF International Inc., Morten Beyer & Agnew, PAC Appraisal Inc. or Sage-Popovich, Inc.; (d) with respect to ground support equipment: CBIZ Valuation Group, LLC or Collateral Verifications, Inc.; (e) with respect to any other type of property: Alvarez & Marsal, Andersen Tax LLC, Aviation Advisors Group, LLC, BBC Aviation Enterprises LLC, CBRE Group Inc., Deloitte & Touche LLP, Jones Lang LaSalle Incorporated or PricewaterhouseCoopers; and (f) any independent appraisal firm appointed by the Borrower and acceptable to the Appropriate Party.

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"<u>Eligible Assignee</u>" means any Person that meets the requirements to be an assignee under <u>Section</u> <u>11.04(b)(iii)</u>, <u>11.04(b)(v)</u> and <u>11.04(b)(vi)</u> (subject to such consents, if any, as may be required under <u>Section</u> <u>11.04(b)(iii)</u>); <u>provided</u> that no Competitor shall be an Eligible Assignee.

"<u>Eligible Business</u>" means an "air carrier" within the meaning of Section 40102 of Title 49 that holds a certificate under Section 41102 of Title 49.

"<u>Eligible Receivables</u>" means all Qualified Receivables (as defined in the Pledge and Security Agreement) that are part of the Collateral.

"<u>Eligible Receivables Account</u>" means that certain concentration account specified to the Administrative Agent in the name of a Credit Party, and any replacement account, which, in each case, must be a segregated deposit account and subject at all times to an account control agreement in form and substance satisfactory to the Appropriate Party.

"<u>Eligible Receivables Determination Date</u>" means the fifth Business Day following the last day of each March, June, September and December (beginning with December 2020).

"<u>Eligible Receivables Revenue</u>" means all payments received by, or otherwise required to be paid to, the Credit Parties (and their Affiliates), and all other amounts the Credit Parties are entitled to, under any Eligible Receivable.

"<u>Eligible Receivables Test Period</u>" means, at any Eligible Receivables Determination Date or other date of determination, the period of twelve (12) calendar months ending on the last day of the calendar month ending immediately prior to such date.

"<u>Environmental Laws</u>" means any and all federal, state, local, and foreign statutes, Laws, regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants, franchises, licenses, agreements or governmental restrictions, including all common law, relating to pollution or the protection of health, safety or the environment or the release of any materials into the environment, including those related to Hazardous Materials, air emissions, discharges to waste or public systems and health and safety matters.

"<u>Environmental Liability</u>" means any liability or obligation, contingent or otherwise (including any liability for damages, costs of environmental remediation, fines, penalties or indemnities), directly or indirectly, resulting from or based upon (a) violation of any Environmental Law, (b) the generation, use, handling, transportation, storage, treatment, disposal or permitting or arranging for the disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the release or threatened release of any Hazardous Materials or (e) any contract, agreement or other consensual arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing.

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"<u>Equity Interests</u>" means, as to any Person, all of the shares of capital stock of (or other ownership or profit interests in) such Person, all of the warrants, options or other rights for the purchase or acquisition from such Person of shares of capital stock of (or other ownership or profit interests in) such Person, all of the securities convertible into or exchangeable for shares of capital stock of (or other ownership or profit interests in) such Person or warrants, rights or options for the purchase or acquisition from such Person of such shares (or such other interests), and all of the other ownership or profit interests in such Person (including partnership, member or trust interests therein), whether voting or nonvoting, and whether or not such shares, warrants, options, rights or other interests are outstanding on any date of determination (other than Convertible Indebtedness or any other debt security that is convertible into or exchangeable for Equity Interests of such Person and the Warrants).

"<u>ERISA</u>" means the Employee Retirement Income Security Act of 1974, as amended, and the rules and regulations promulgated thereunder.

"<u>ERISA Affiliate</u>" means any trade or business (whether or not incorporated) under common control with any Credit Party within the meaning of Section 414(b) or (c) of the Code (and Sections 414(m) and (o) of the Code for purposes of provisions relating to Section 412 of the Code or Section 302 of ERISA).

"<u>ERISA Event</u>" means (a) a Reportable Event with respect to a Pension Plan; (b) the failure by any Credit Party or any ERISA Affiliate to meet all applicable requirements under the Pension Funding Rules or the filing of an application for the waiver of the minimum funding standards under the Pension Funding Rules; (c) the incurrence by any Credit Party or any ERISA Affiliate of any liability pursuant to Section 4063 or 4064 of ERISA or a cessation of operations with respect to a Pension Plan within the meaning of Section 4062(e) of ERISA; (d) a complete or partial withdrawal by any Credit Party or any ERISA Affiliate from a Multiemployer Plan or notification that a Multiemployer Plan is in reorganization or insolvent (within the meaning of Title IV of ERISA); (e) the filing of a notice of intent to terminate a Pension Plan under, or the treatment of a Pension Plan amendment as a termination under, Section 4041 of ERISA; (f) the institution by the PBGC of proceedings to terminate a Pension Plan; (g) any event or condition that constitutes grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Pension Plan; (h) the determination that any Pension Plan is in at-risk status (within the meaning of Section 430 of the Code or Section 303 of ERISA) or that a Multiemployer Plan is in endangered or critical status (within the meaning of Section 432 of the Code or Section 305 of ERISA); (i) the imposition or incurrence of any liability under Title IV of ERISA, other than for PBGC premiums due but not delinquent under Section 4007 of ERISA, upon any Credit Party or any ERISA Affiliate; (j) the engagement by any Credit Party or any ERISA Affiliate in a transaction that could be subject to Section 4069 or Section 4212(c) of ERISA; (k) the imposition of a lien upon any Credit Party pursuant to Section 430(k) of the Code or Section 303(k) of ERISA; or (l) the making of an amendment to a Pension Plan that could result in the posting of bond or security under Section 436(f)(1) of the Code.

"<u>EU Bail-In Legislation Schedule</u>" means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from time to time.

"<u>Eurodollar Reserve Percentage</u>" means, for any day during any Interest Period, the reserve percentage in effect on such day, whether or not applicable to any Lender, under regulations issued from time to time by the Federal Reserve Board for determining the maximum reserve requirement (including any emergency, special, supplemental or other marginal reserve requirement) with respect to eurocurrency funding (currently referred to as "Eurocurrency liabilities" in Regulation D). The Adjusted LIBO Rate for each outstanding Loan shall be adjusted automatically as of the effective date of any change in the Eurodollar Reserve Percentage.

"<u>Event of Default</u>" has the meaning specified in <u>Article</u> <u>VII</u>.

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"<u>Excluded Assets</u>" has the meaning assigned to such term in the Pledge and Security Agreement.

"<u>Excluded Subsidiary</u>" means any Subsidiary of the Parent (other than the Borrower) that (i) is not wholly-owned, directly or indirectly, by the Parent, (ii) is a captive insurance company, (iii) is an Immaterial Subsidiary, (iv) is a Receivables Subsidiary, (v) is a Foreign Subsidiary or a CFC Holdco existing on the Closing Date or (vi) is a Finance Entity; <u>provided</u> that, notwithstanding the foregoing, (1) a Subsidiary will not be an Excluded Subsidiary if it (x) owns assets that are intended to be included in the Collateral, (y) owns individually, or in the aggregate with other Subsidiaries (including any Subsidiary that would otherwise qualify as an Excluded Subsidiary), a majority of the Equity Interests of any Subsidiary that owns any assets that are intended to be included in the Collateral or is party to any agreements that constitute (or would constitute) Collateral or (z) guarantees Material Indebtedness of the Parent or any of its Subsidiaries (other than any acquired Subsidiary that guarantees assumed Indebtedness of a Person acquired pursuant to an acquisition permitted under this Agreement that is existing at the time of such acquisition or investment; <u>provided</u> that such Indebtedness was not created in contemplation of or in connection with such acquisition and the amount of such Indebtedness is not increased) and (2) Republic Airline Inc. (Panama), Carmel Finance 2015 LLC, Republic Airways Services, Inc., Lynx Aviation Inc., Leadership in Flight Training Academy, LLC, LIFT Aircraft, LLC and LIFT Maintenance LLC shall be Excluded Subsidiaries.

"<u>Excluded Taxes</u>" means any of the following Taxes imposed on or with respect to a Recipient or required to be withheld or deducted from a payment to a Recipient, (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, (i) imposed as a result of such Recipient being organized under the laws of, or having its principal office or, in the case of any Lender, its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) in the case of a Lender, U.S. federal withholding Taxes imposed on amounts payable to or for the account of such Lender with respect to an applicable interest in a Loan pursuant to a law in effect on the date on which (i) such Lender acquires such interest in the Loans (other than pursuant to an assignment request by the Borrower under <u>Section</u> <u>2.19(b)</u>) or (ii) such Lender changes its lending office, except in each case to the extent that, pursuant to <u>Section</u> <u>2.16</u>, amounts with respect to such Taxes were payable either to such Lender's assignor immediately before such Lender became a party hereto or to such Lender immediately before it changed its lending office, (c) Taxes attributable to such Recipient's failure to comply with <u>Section</u> <u>2.16(g)</u> and (d) any withholding Taxes imposed under FATCA.

"<u>Export Control Laws</u>" means any applicable export control Laws including the International Traffic in Arms Regulations (22 C.F.R. 120 et seq.) and the Export Administration Regulations (15 C.F.R. 730 et seq.).

"<u>FAA</u>" means the United States Federal Aviation Administration and any successor thereto.

"<u>FATCA</u>" means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof, any agreements entered into pursuant to Section 1471(b)(1) of the Code and any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement, treaty or convention among Governmental Authorities and implementing such Sections of the Code.

"<u>FCPA</u>" has the meaning specified in <u>Section</u> <u>3.15(b)</u>.

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"<u>Federal Funds Effective Rate</u>" means, for any day, the greater of (a) the rate calculated by the Federal Reserve Bank of New York based on such day's Federal funds transactions by depositary institutions (as determined in such manner as the Federal Reserve Bank of New York shall set forth on its public website from time to time) and published on the next succeeding Business Day by the Federal Reserve Bank of New York as the Federal funds effective rate and (b) 0%.

"<u>Federal Reserve Board</u>" means the Board of Governors of the Federal Reserve System of the United States.

"<u>Finance Entity</u>" means any Person created or formed by or at the direction of the Parent or any of its Subsidiaries for the purpose of financing aircraft and aircraft related assets and related pre-delivery payment obligations of the Parent or such Subsidiaries; <u>provided</u> that such (i) Person holds no material assets other than the aircraft or aircraft related assets to be financed or assets pursuant to which related pre-delivery payment obligations arise, (ii) financing is in the ordinary course of business of the Parent and its Subsidiaries or otherwise customary for airlines based in the United States and (iii) Person holds no assets constituting, or otherwise intended to be included in, Collateral.

"<u>Financial Officer</u>" means, as to any Person, the chief financial officer, principal accounting officer, treasurer or controller of such Person.

"<u>Fitch</u>" means Fitch Ratings and any successor to its rating agency business.

"<u>Floor</u>" means the benchmark rate floor, if any, provided in this Agreement initially (as of the execution of this Agreement, the modification, amendment or renewal of this Agreement or otherwise) with respect to USD LIBO Rate. As of the Closing Date, the Floor shall be 0%.

"<u>Foreign Lender</u>" means any Lender that is not a U.S. Person.

"<u>Foreign Plan</u>" means any employee pension benefit plan, program, policy, arrangement or agreement maintained or contributed to by the Parent or any Subsidiary with respect to employees employed outside the United States (other than any governmental arrangement).

"<u>Foreign Subsidiary</u>" means any Subsidiary that is not a Domestic Subsidiary.

"<u>Fund</u>" means any Person (other than a natural person) that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans, bonds and similar extensions of credit in the ordinary course of its activities.

"<u>Funding Date</u>" has the meaning specified in <u>Section</u> <u>4.02</u>.

"<u>GAAP</u>" means, subject to <u>Section</u> <u>1.03</u>, United States generally accepted accounting principles as in effect from time to time; <u>provided</u> that if at any time any change in GAAP would affect the computation of any financial ratio or financial requirement, or compliance with any covenant, set forth in any Loan Document, the Required Lenders and the Borrower will negotiate in good faith to amend such ratio, requirement or covenant to preserve the original intent thereof in light of such change in GAAP (subject to the approval of the Required Lenders); <u>provided</u>, <u>further</u>, that until so amended, (a) such ratio, requirement or covenant will continue to be computed in accordance with GAAP prior to such change therein and (b) the Borrower will provide to the Administrative Agent and the Lenders reconciliation statements to the extent requested.

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"<u>Gate Leasehold</u>" has the meaning assigned to such term in the Pledge and Security Agreement.

"<u>Governmental Authority</u>" means the government of the United States of America or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank).

"<u>Guarantee</u>" means, as to any Person, (a) any obligation, contingent or otherwise, of such Person guaranteeing or having the economic effect of guaranteeing any Indebtedness or other obligation payable or performable by another Person (the "<u>primary obligor</u>") in any manner, whether directly or indirectly, and including any obligation of such Person, direct or indirect, (i) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation, (ii) to purchase or lease property, securities or services for the purpose of assuring the obligee in respect of such Indebtedness or other obligation of the payment or performance of such Indebtedness or other obligation, (iii) to maintain working capital, equity capital or any other financial statement condition or liquidity or level of income or cash flow of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other obligation or (iv) entered into for the purpose of assuring in any other manner the obligee in respect of such Indebtedness or other obligation of the payment or performance thereof or to protect such obligee against loss in respect thereof (in whole or in part) or (b) any Lien on any assets of such Person securing any Indebtedness or other obligation of any other Person, whether or not such Indebtedness or other obligation is assumed by such Person (or any right, contingent or otherwise, of any holder of such Indebtedness to obtain any such Lien); <u>provided</u> that the term "Guarantee" shall not include endorsements for collection or deposit in the ordinary course of business. The amount of any Guarantee shall be deemed to be an amount equal to the stated or determinable amount of the related primary obligation, or portion thereof, in respect of which such Guarantee is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof as determined by the guaranteeing Person in good faith. The term "Guarantee" as a verb has a corresponding meaning.

"<u>Guaranteed Obligations</u>" has the meaning specified in <u>Section</u> <u>9.01</u>.

"<u>Guarantor</u>" means the Parent and each other Guarantor listed on the signature page to this Agreement and any other Person that Guarantees the Obligations under this Agreement and any other Loan Document.

"<u>Hazardous Materials</u>" means all explosive or radioactive substances or wastes and all hazardous or toxic substances, wastes or other pollutants, including petroleum or petroleum distillates, asbestos or asbestos-containing materials, polychlorinated biphenyls, radon gas, infectious or medical wastes, and other substances or wastes of any nature regulated under or with respect to which liability or standards of conduct are imposed pursuant to any Environmental Law.

"<u>Immaterial Subsidiaries</u>" means one or more Subsidiaries, for which (a) the assets of all such Subsidiaries constitute, in the aggregate, no more than 7.50% of the total assets of the Parent and its Subsidiaries on a consolidated basis (determined as of the last day of the most recent fiscal quarter of the Parent for which financial statements are available), and (b) the revenues of all such Subsidiaries account for, in the aggregate, no more than 7.50% of the total revenues of the Parent and its Subsidiaries on a consolidated basis for the four (4) fiscal quarter period ending on the last day of the most recent fiscal quarter of the Parent for which financial statements are available; <u>provided</u> that (x) a Subsidiary will not be an Immaterial Subsidiary if it (i) directly or indirectly guarantees, or pledges any property or assets to secure, any Obligations, (ii) owns any assets that are intended to be included in the Collateral or is party to any agreements that constitute (or would constitute) Collateral, or (iii) owns a majority of the Equity Interests of any Subsidiary that owns any assets that are intended to be included in the Collateral or is party to any agreements that constitute (or would constitute) Collateral and (y) the Borrower shall not be an Immaterial Subsidiary.

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"<u>Indebtedness</u>" means, as to any Person at a particular time, without duplication, all of the following, whether or not included as indebtedness or liabilities in accordance with GAAP:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all obligations of such Person for borrowed money and all obligations of such Person evidenced by bonds, debentures, notes, loan agreements or other similar instruments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) net obligations of such Person under any Swap Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) all obligations of such Person to pay the deferred purchase price of property or services (other than trade accounts payable in the ordinary course of business);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) indebtedness (excluding prepaid interest thereon) secured by a Lien on property owned or being purchased by such Person (including indebtedness arising under conditional sales or other title retention agreements), whether or not such indebtedness shall have been assumed by such Person or is limited in recourse;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) all Attributable Indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) all obligations of such Person in respect of Disqualified Equity Interests; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) all Guarantees of such Person in respect of any of the foregoing.

For all purposes hereof, the Indebtedness of any Person shall include the Indebtedness of any partnership or joint venture (other than a joint venture that is itself a corporation or limited liability company) in which such Person is a general partner or a joint venturer, unless such Indebtedness is expressly made non-recourse to such Person. The amount of any net obligation under any Swap Contract on any date shall be deemed to be the Swap Termination Value thereof as of such date. The amount of any Indebtedness of any Person for purposes of clause (e) that is expressly made non-recourse or limited-recourse (limited solely to the assets securing such Indebtedness) to such Person shall be deemed to be equal to the lesser of (i) the aggregate principal amount of such Indebtedness and (ii) the fair market value of the property encumbered thereby as determined by such Person in good faith.

"<u>Indemnified Taxes</u>" means (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of the Borrower under any Loan Document and (b) to the extent not otherwise described in (a), Other Taxes.

"<u>Indemnitee</u>" has the meaning specified in <u>Section</u> <u>11.03(b)</u>.

"<u>Information</u>" has the meaning specified in <u>Section</u> <u>11.12</u>.

"<u>Initial Lender</u>" means Treasury or its designees (but, for the avoidance of doubt, excluding any assignee of the Loans).

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"<u>Intellectual Property</u>" has the meaning assigned to such term in the Pledge and Security Agreement.

"<u>Interest Payment Date</u>" means the first Business Day following the 14<sup>th</sup> day of each March, June, September and December (beginning with December 15, 2020), and the Maturity Date.

"<u>Interest Period</u>" means, as to any Borrowing, (a) for the initial Interest Period, the period commencing on the date of such Borrowing and ending on the next succeeding Interest Payment Date and (b) for each Interest Period thereafter, the period commencing on the last day of the next preceding Interest Period and ending on the next succeeding Interest Payment Date.

"<u>International Registry</u>" has the meaning assigned to such term in the Pledge and Security Agreement.

"<u>Interpolated Rate</u>" means, at any time, the rate per annum determined by the Administrative Agent (which determination shall be conclusive and binding absent manifest error) to be equal to the rate that results from interpolating on a linear basis between: (a) the rate as displayed on the Bloomberg "LIBOR01" screen page (or any successor or replacement screen on such service; in each case the "<u>Screen Rate</u>") for the longest period (for which that Screen Rate is available) that is shorter than three (3) months and (b) the Screen Rate for the shortest period (for which that Screen Rate is available) that is equal to or exceeds three (3) months, in each case, at approximately 11:00 a.m., London time, two (2) Business Days prior to the commencement of such Interest Period.

"<u>Investment</u>" means, as to any Person, any direct or indirect acquisition or investment by such Person, whether by means of (a) the purchase or other acquisition of Equity Interests or debt or other securities of another Person, (b) a loan, advance or capital contribution to, Guarantee or assumption of debt of, or purchase or other acquisition of any other debt or equity participation or interest in, another Person, including any partnership or joint venture interest in such other Person and any arrangement pursuant to which the investor incurs Indebtedness of the type referred to in clause (h) of the definition of "Indebtedness" in respect of such other Person, or (c) the purchase or other acquisition (in one transaction or a series of transactions) of all or substantially all of the property and assets or business of another Person or assets constituting a business unit, line of business or division of such Person. For purposes of covenant compliance, the amount of any Investment shall be the amount actually invested, without adjustment for subsequent increases or decreases in the value of such Investment but giving effect to any returns or distributions of capital or repayment of principal actually received in case by such Person with respect thereto.

"<u>IRS</u>" means the United States Internal Revenue Service.

"<u>ISDA Definitions</u>" means the 2006 ISDA Definitions published by the International Swaps and Derivatives Association, Inc. or any successor thereto, as amended or supplemented from time to time, or any successor definitional booklet for interest rate derivatives published from time to time by the International Swaps and Derivatives Association, Inc. or such successor thereto.

"<u>Laws</u>" means, collectively, all international, foreign, federal, state and local statutes, treaties, rules, guidelines, regulations, ordinances, codes and administrative or judicial precedents or authorities, including the interpretation or administration thereof by any Governmental Authority charged with the enforcement, interpretation or administration thereof, and all applicable administrative orders, directed duties, requests, licenses, authorizations and permits of, and agreements with, any Governmental Authority, in each case whether or not having the force of law.

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"<u>Lenders</u>" means the Initial Lender and any other Person that shall have become party hereto pursuant to an Assignment and Assumption, other than any such Person that ceases to be a party hereto pursuant to an Assignment and Assumption.

"<u>LIBO Rate</u>" means, the greater of (a) the rate appearing on the Bloomberg "LIBOR01" screen page (or any successor or replacement screen on such service) at approximately 11:00 a.m., London time, two (2) Business Days prior to the commencement of such Interest Period, as the rate for dollar deposits with a maturity of three (3) months; <u>provided</u> that (i) if such rate is not available at such time for any reason, then the "LIBO Rate" shall be the Interpolated Rate, and (ii) if the Interpolated Rate is not available (except as set forth in <u>Section</u> <u>2.10</u>), the "LIBO Rate" shall be the LIBO Rate for the immediately preceding Interest Period, two (2) Business Days prior to the commencement of such Interest Period and (b) 0%.

"<u>Lien</u>" means any mortgage, pledge, hypothecation, collateral assignment, deposit arrangement, encumbrance, lien (statutory or other), charge, any option or other agreement to sell or give a security interest in an asset, or preference, priority, or other security interest or preferential arrangement of any kind or nature whatsoever (including any conditional sale or other title retention agreement, any easement, right of way or other encumbrance on title to real property, and any financing lease having substantially the same economic effect as any of the foregoing).

"<u>Liquidity</u>" means the sum of (i) all unrestricted cash and Cash Equivalents of the Parent and its Subsidiaries, (ii) cash or Cash Equivalents of the Parent and its Subsidiaries restricted in favor of the Obligations or in connection with the Payroll Support Program Agreement (other than any amounts held in the Collateral Proceeds Account), (iii) the aggregate principal amount committed and available to be drawn by the Parent and its Subsidiaries (taking into account all borrowing base limitations or other restrictions) under all revolving credit facilities of the Parent and its Subsidiaries, (iv) any remaining aggregate principal amount committed and available to be drawn (taking into account any applicable restrictions) by the Parent and its Subsidiaries in respect of the Loans and (v) the scheduled net proceeds (after giving effect to any expected repayment of existing Indebtedness using such proceeds) of any Capital Markets Offering of the Parent or any of its Subsidiaries that has priced but has not yet closed (until the earliest of the closing thereof, the termination thereof without closing or the date that falls five (5) Business Days after the initial scheduled closing date thereof).

"<u>Loan</u>" means a loan made by a Lender to the Borrower pursuant to this Agreement.

"<u>Loan Application Form</u>" means the application form and any related materials submitted by the Borrower to the Initial Lender in connection with an application for the Loans under Division A, Title IV, Subtitle A of the CARES Act.

"<u>Loan Documents</u>" means, collectively, this Agreement, any Security Document, any promissory notes issued pursuant to <u>Section</u> <u>2.11(b)</u> and any other documents entered into in connection herewith (including an Administrative Agency Fee Letter, if any).

"<u>Margin Stock</u>" means margin stock within the meaning of Regulations T, U and X.

"<u>Material Adverse Effect</u>" means (a) a material adverse change in, or a material adverse effect on, the operations, business, properties, liabilities (actual or contingent), condition (financial or otherwise) or prospects of the Parent and its Subsidiaries taken as a whole; or (b) a material adverse effect on (i) the ability of the Borrower or any Credit Party to perform its Obligations, (ii) the legality, validity, binding effect or enforceability against the Borrower or any Credit Party of any Loan Document to which it is a party or the validity, perfection and first priority of the Liens on the Collateral in favor of the

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Collateral Agent taken as a whole or with respect to a substantial portion of the Collateral, or (iii) the rights, remedies and benefits available to, or conferred upon, the Lenders or the Agents under any Loan Documents; <u>provided</u> that the impacts of the COVID-19 disease outbreak will be disregarded for purposes of clause (a) of this definition to the extent (i) publicly disclosed in any SEC filing of the Parent or otherwise provided to the Initial Lender prior to the Closing Date and (ii) the scope of such adverse effect is no greater than that which has been disclosed as of the Closing Date.

"<u>Material Indebtedness</u>" means Indebtedness of the Parent or any of its Subsidiaries (other than the Loans) outstanding under the same agreement in a principal amount exceeding $12,000,000.

"<u>Material Subsidiary</u>" means any Subsidiary that is not an Immaterial Subsidiary.

"<u>Maturity Date</u>" means the date that is five (5) years after the Closing Date (except that, if such date is not a Business Day, the Maturity Date shall be the preceding Business Day).

"<u>Maximum Rate</u>" has the meaning specified in <u>Section</u> <u>11.14</u>.

"<u>Moody's</u>" means Moody's Investors Service, Inc. and any successor to its rating agency business.

"<u>Multiemployer Plan</u>" means any employee benefit plan of the type described in Section 4001(a)(3) of ERISA, to which any Credit Party or any ERISA Affiliate makes or is obligated to make contributions, during the preceding five (5) plan years has made or been obligated to make contributions, or has any liability.

"<u>Multiple Employer Plan</u>" means a Plan with respect to which any Credit Party or any ERISA Affiliate is a contributing sponsor, and that has two (2) or more contributing sponsors at least two (2) of whom are not under common control, as such a plan is described in Section 4064 of ERISA.

"<u>Net Proceeds</u>" means in connection with any Disposition or Recovery Event, the aggregate cash and Cash Equivalents received by the Parent or any of its Subsidiaries in respect of a Disposition of Collateral (including, without limitation, any cash or Cash Equivalents received in respect of or upon the Disposition of any non-cash consideration received in any such Disposition of Collateral) or Recovery Event, net of the direct costs and expenses relating to such Disposition and incurred by the Parent or a Subsidiary (including the sale or disposition of such non-cash consideration) or any such Recovery Event, including, without limitation, legal, accounting and investment banking fees, and sales commissions, and any relocation expenses incurred as a result of the Disposition or Recovery Event, taxes paid or reasonably estimated to be payable as a result of the Disposition or Recovery Event, in each case, after taking into account any available tax credits or deductions and any tax sharing arrangements.

"<u>Non-Consenting Lender</u>" means any Lender that does not approve any consent, waiver or amendment that (a) requires the approval of all or all affected Lenders in accordance with the terms of <u>Section</u> <u>11.02</u> and (b) has been approved by the Required Lenders.

"<u>Note</u>" means the promissory note executed by the Borrower pursuant to <u>Section</u> <u>2.11(b)</u>.

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"<u>Obligations</u>" means all advances to, and debts, liabilities, obligations, covenants and duties of, each Credit Party arising under any Loan Document or otherwise with respect to any Loan, whether direct or indirect (including those acquired by assumption), absolute or contingent, due or required to be performed, or to become due or to be performed, now existing or hereafter arising and including interest and fees that accrue after the commencement by or against any Credit Party or any Affiliate thereof of any proceeding under any Debtor Relief Laws naming such Person as the debtor in such proceeding, regardless of whether such interest and fees are allowed claims in such proceeding. Without limiting the foregoing, the Obligations include (a) the obligation to pay principal, interest, charges, expenses, fees, indemnities and other amounts payable by the Borrower or any other Credit Party under any Loan Document, (b) the obligation of any Credit Party to reimburse any amount in respect of any of the foregoing that the Lenders, in each case in their sole discretion, may elect to pay or advance on behalf of any Credit Party and (c) the obligation of any Credit Party or any of its Subsidiaries to take any action or refrain from taking any action as required by the covenants and other provisions contained in this Agreement and any other Loan Document.

"<u>Obligee Guarantor</u>" has the meaning specified in <u>Section</u> <u>9.06</u>.

"<u>Organizational Documents</u>" means (a) as to any corporation, the charter or certificate or articles of incorporation and the bylaws (or equivalent or comparable constitutive documents with respect to any non-U.S. jurisdiction), (b) as to any limited liability company, the certificate or articles of formation or organization and the operating or limited liability agreement (or equivalent or comparable constitutive documents with respect to any non-U.S. jurisdiction) and (c) as to any partnership, joint venture, trust or other form of business entity, the partnership, joint venture or other applicable agreement of formation or organization and any agreement, instrument, filing or notice with respect thereto filed in connection with its formation or organization with the applicable Governmental Authority in the jurisdiction of its formation or organization and, if applicable, any certificate or articles of formation or organization of such entity.

"<u>Other Connection Taxes</u>" means, with respect to any Recipient, Taxes imposed as a result of a present or former connection between such Recipient and the jurisdiction imposing such Tax (other than connections arising from such Recipient having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Loan Document, or sold or assigned an interest in the Loans or Loan Document).

"<u>Other Taxes</u>" means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant to <u>Section</u> <u>2.19(b)</u>).

"<u>Outstanding Amount</u>" means, with respect to Loans on any date, the aggregate outstanding principal amount thereof after giving effect to any borrowings and prepayments or repayments of Loans occurring on such date.

"<u>Parent</u>" has the meaning specified in introductory paragraph hereof.

"<u>Participant</u>" has the meaning specified in <u>Section</u> <u>11.04(d)</u>.

"<u>Participant Register</u>" has the meaning specified in <u>Section</u> <u>11.04(d)</u>.

"<u>Payroll Support Program Agreement</u>" means that certain Payroll Support Program Agreement dated as of May 12, 2020, between the Borrower and Treasury.

"<u>PBGC</u>" means the Pension Benefit Guaranty Corporation.

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"<u>Pension Act</u>" means the Pension Protection Act of 2006.

"<u>Pension Funding Rules</u>" means the rules of the Code and ERISA (as modified by the CARES Act) regarding minimum funding standards and minimum required contributions (including any installment payment thereof) to Pension Plans and Multiemployer Plans and set forth in, with respect to plan years ending prior to the effective date of the Pension Act, Section 412 of the Code and Section 302 of ERISA, each as in effect prior to the Pension Act and, thereafter, Sections 412, 430, 431, 432 and 436 of the Code and Sections 302, 303, 304 and 305 of ERISA.

"<u>Pension Plan</u>" means any employee pension benefit plan (including a Multiple Employer Plan, but excluding a Multiemployer Plan) that is maintained or is contributed to by any Credit Party or any ERISA Affiliate and is either covered by Title IV of ERISA or is subject to the minimum funding standards under Section 412 of the Code.

"<u>Perfection Requirement</u>" has the meaning specified in the Pledge and Security Agreement.

"<u>Permitted Bond Hedge Transaction</u>" means any call or capped call option (or substantively equivalent derivative transaction) on the Parent's common Equity Interests purchased by the Parent in connection with the issuance of any Convertible Indebtedness; <u>provided</u> that the purchase price for such Permitted Bond Hedge Transaction does not exceed the net proceeds received by the Parent from the sale of such Convertible Indebtedness issued in connection with the Permitted Bond Hedge Transaction.

"<u>Permitted Business</u>" means any business that is the same as, or reasonably related, ancillary, supportive or complementary to, the business in which the Parent and its Subsidiaries are engaged on the date of this Agreement.

"<u>Permitted Liens</u>" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Liens created for the benefit of (or to secure the payment and performance of) the Obligations or any Guaranteed Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Liens for taxes, assessments or governmental charges or claims that are not yet delinquent or that are being contested in good faith by appropriate proceedings promptly instituted and diligently concluded; <u>provided</u> that any reserve or other appropriate provision as is required in conformity with GAAP has been made therefor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Liens imposed by law, including carriers', vendors', materialmen's, warehousemen's, landlord's, mechanics', repairmen's, employees' or other like Liens, in each case, incurred in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Liens arising by operation of law in connection with judgments, attachments or awards which do not constitute an Event of Default hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Liens in favor of customs and revenue authorities arising as a matter of law to secure payment of customs duties in connection with the importation of goods in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) to the extent applicable, salvage or similar rights of insurers, in each case as it relates to Collateral; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Liens expressly permitted by the Pledge and Security Agreement.

"<u>Permitted Refinancing</u>" means with respect to any Person, any refinancings, renewals, or extensions of any Indebtedness of such Person so long as: (a) such refinancings, renewals, or extensions do not result in an increase in the principal amount of the Indebtedness so refinanced, renewed, or extended, other than by the amount of premiums paid thereon and the fees and expenses incurred in connection therewith and by the amount of unfunded commitments with respect thereto; (b) such refinancings, renewals, or extensions do not result in a shortening of the average weighted maturity (measured as of the refinancing, renewal, or extension) of the Indebtedness so refinanced, renewed, or extended, nor are they on terms or conditions that, taken as a whole, are or could reasonably be expected to be materially adverse to the interests of the Lenders; (c) if the Indebtedness that is refinanced, renewed, or extended was subordinated in right of payment to the Obligations, then the terms and conditions of the refinancing, renewal, or extension must include subordination terms and conditions that are at least as favorable to the Lenders as those that were applicable to the refinanced, renewed, or extended Indebtedness; (d) the Indebtedness that is refinanced, renewed, or extended is not recourse to any Person that is liable on account of the Obligations other than those Persons which were obligated with respect to the Indebtedness that was refinanced, renewed, or extended and (e) to the extent the Indebtedness that is refinanced, renewed, or extended is unsecured, the Indebtedness resulting from such refinancing, renewal or extension must be unsecured.

"<u>Person</u>" means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity.

"<u>PIK Interest Amount</u>" means, in respect of any Interest Payment Date, the amount of interest accrued during an Interest Period calculated based on the PIK Interest Rate applicable during such Interest Period.

"<u>PIK Interest Rate</u>" means in respect of any Interest Period ending on or prior to the first anniversary of the date hereof, the Adjusted LIBO Rate <u>plus</u> the Applicable Rate.

"<u>Plan</u>" means any employee benefit plan within the meaning of Section 3(3) of ERISA, maintained for employees of the Parent or any Subsidiary, or any such plan to which the Parent or any Subsidiary is required to contribute on behalf of any of its employees or with respect to which any Credit Party has any liability.

"<u>Platform</u>" means Debt Domain, Intralinks, Syndtrak, DebtX or a substantially similar electronic transmission system.

"<u>Pledge and Security Agreement</u>" means the Pledge and Security Agreement executed and delivered by the Borrower and each Guarantor on the Closing Date in form and substance acceptable to the Initial Lender and the Collateral Agent, as it may be amended, supplemented, restated or otherwise modified from time to time. For the avoidance of doubt, the terms of the "Pledge and Security Agreement" shall include the terms of all Applicable Annexes (as defined in the Pledge and Security Agreement).

"<u>Prepayment Notice</u>" means a notice by the Borrower to prepay Loans, which shall be in such form as the Appropriate Party may approve.

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"<u>Prime Rate</u>" means the rate of interest per annum last quoted by The Wall Street Journal as the "Prime Rate" in the U.S. or, if The Wall Street Journal ceases to quote such rate, the highest per annum interest rate published by the Federal Reserve Board in Federal Reserve Statistical Release H.15 (519) (Selected Interest Rates) as the "bank prime loan" rate or, if such rate is no longer quoted therein, any similar rate quoted therein (as determined by the Required Lenders) or any similar release by the Federal Reserve Board (as determined by the Required Lenders). Any change in the Prime Rate shall take effect at the opening of business on the day such change is publicly announced or quoted as being effective.

"<u>Proceeds</u>" means "proceeds," as defined in Article 9 of the UCC.

"<u>PSP Warrant Agreement</u>" means that certain warrant agreement, dated as of May 12, 2020 between Republic Airways Holdings Inc. and Treasury.

"<u>Public Lender</u>" has the meaning specified in <u>Section</u> <u>11.01(e)</u>.

"<u>Receivables Subsidiary</u>" means (x) a Wholly-Owned Subsidiary of the Parent formed for the purpose of and which engages in no activities other than in connection with the financing or securitization of accounts receivables (a) no portion of the Indebtedness or any other obligations (contingent or otherwise) of which (1) is guaranteed by the Parent or by any Subsidiary of the Parent, excluding any guarantees of obligations (other than the principal of, and interest on, Indebtedness) pursuant to Standard Securitization Undertakings, (2) is recourse to or obligates the Parent or any Subsidiary of the Parent in any way other than pursuant to Standard Securitization Undertakings or (3) subjects any property or asset of the Parent or any Subsidiary of the Parent (other than accounts receivable and related assets) or any property or asset of the type that is intended to be include in the Collateral, directly or indirectly, contingently or otherwise, to the satisfaction thereof, other than pursuant to Standard Securitization Undertakings, (b) with which neither the Parent nor any Subsidiary of the Parent (other than another Receivables Subsidiary) has any material contract, agreement, arrangement or understanding (other than pursuant to the related financing of accounts receivable) other than on terms no less favorable to the Parent or such Subsidiary than those that might be obtained at the time from Persons who are not Affiliates of the Parent and (c) with which neither the Parent nor any Subsidiary of the Parent has any obligation to maintain or preserve such Subsidiary's financial condition, other than a minimum capitalization in customary amounts, or to cause such Subsidiary to achieve certain levels of operating results or (y) any Subsidiary of a Receivables Subsidiary. For the avoidance of doubt, the Parent and any Subsidiary of the Parent may enter into Standard Securitization Undertakings for the benefit of a Receivables Subsidiary.

"<u>Recipient</u>" means (a) the Administrative Agent, (b) the Collateral Agent or (c) any Lender, as applicable.

"<u>Recovery Event</u>" means any settlement of or payment in respect of any property or casualty insurance claim or any condemnation proceeding relating to any Collateral or any Event of Loss (as defined in the Pledge and Security Agreement).

"<u>Reference Time</u>" with respect to any setting of the then-current Benchmark means (1) if such Benchmark is USD LIBO Rate, 11:00 a.m. (London time) on the day that is two London banking days preceding the date of such setting, and (2) if such Benchmark is not USD LIBO Rate, the time determined by the Required Lenders in their reasonable discretion, provided that such time is determined to be administratively feasible by the Administrative Agent.

"<u>Register</u>" has the meaning specified in <u>Section</u> <u>11.04(c)</u>.

"<u>Regulation</u> <u>D</u>" means Regulation D of the Federal Reserve Board, as in effect from time to time and all official rulings and interpretations thereunder or thereof.

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"<u>Regulation</u> <u>T</u>" means Regulation T of the Federal Reserve Board, as in effect from time to time and all official rulings and interpretations thereunder or thereof.

"<u>Regulation</u> <u>U</u>" means Regulation U of the Federal Reserve Board, as in effect from time to time and all official rulings and interpretations thereunder or thereof.

"<u>Regulation</u> <u>X</u>" means Regulation X of the Federal Reserve Board, as in effect from time to time and all official rulings and interpretations thereunder or thereof.

"<u>Related Parties</u>" means, with respect to any Person, such Person's Affiliates and the partners, directors, officers, employees, agents, trustees, administrators, managers, advisors and representatives of such Person and of such Person's Affiliates.

"<u>Relevant Governmental Body</u>" means the Federal Reserve Board or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Federal Reserve Board or the Federal Reserve Bank of New York, or any successor thereto.

"<u>Reportable Event</u>" means any of the events set forth in Section 4043(c) of ERISA, other than events for which the thirty (30)-day notice period has been waived.

"<u>Required Filings</u>" shall have the meaning specified in the Pledge and Security Agreement.

"<u>Required Lenders</u>" means, at any time, Lenders having Loans representing more than 50% of the aggregate Outstanding Amount of Loans of all Lenders at such time.

"<u>Resolution Authority</u>" means an EEA Resolution Authority or, with respect to any UK Financial Institution, a UK Resolution Authority.

"<u>Responsible Officer</u>" means (a) the chief executive officer, president, executive vice president or a Financial Officer of the Borrower or such Credit Party, as applicable, (b) solely for purposes of the delivery of incumbency certificates and certified Organizational Documents and resolutions pursuant to <u>Section</u> <u>4.01</u>, any vice president, secretary or assistant secretary of the Borrower or such Credit Party and (c) solely for purposes of Borrowing Requests, prepayment notices and notices for Commitment terminations or reductions given pursuant to <u>Article</u> <u>II</u>, any other officer or employee of the Borrower so designated from time to time by one of the officers described in clause (a) in a notice to the Administrative Agent (together with evidence of the authority and capacity of each such Person to so act in form and substance satisfactory to the Administrative Agent). Any document delivered hereunder that is signed by a Responsible Officer of a Credit Party shall be conclusively presumed to have been authorized by all necessary corporate, partnership or other action on the part of such Credit Party and such Responsible Officer shall be conclusively presumed to have acted on behalf of such Credit Party.

"<u>Restricted Payment</u>" means any dividend or other distribution (whether in cash, securities or other property) with respect to any Equity Interest of any Person, or any payment (whether in cash, securities or other property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any such Equity Interest, or on account of any return of capital to such Person's shareholders, partners or members (or the equivalent Persons thereof).

"<u>Route Authority</u>" has the meaning assigned to such term in the Pledge and Security Agreement.

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"<u>S&P</u>" means S&P Global Ratings, and any successor to its rating agency business.

"<u>Sanctioned Country</u>" has the meaning specified in <u>Section</u> <u>3.15(a)</u>.

"<u>Sanctioned Person</u>" has the meaning specified in <u>Section</u> <u>3.15(a)</u>.

"<u>Sanctions</u>" has the meaning specified in <u>Section</u> <u>3.15(a)</u>.

"<u>Screen Rate</u>" has the meaning specified in the definition of the term "Interpolated Rate".

"<u>SEC</u>" means the Securities and Exchange Commission, or any Governmental Authority succeeding to any of its principal functions.

"<u>Second Funding Date</u>" has the meaning specified in Section 4.03.

"<u>Secured Parties</u>" has the meaning assigned to such term in the Pledge and Security Agreement.

"<u>Securities Act</u>" means the Securities Act of 1933, as amended.

"<u>Security Document</u>" means the Pledge and Security Agreement and any security or pledge agreement, mortgage, hypothecation or other agreement, instrument or document relating to collateral for the Loans (including any short form agreements, supplements, control agreements, collateral access agreements and registrations executed or made) that may exist at any time and from time to time, as amended from time to time.

"<u>Slot</u>" has the meaning assigned to such term in the Pledge and Security Agreement.

"<u>SOFR</u>" means, with respect to any Business Day, a rate per annum equal to the secured overnight financing rate for such Business Day published by the SOFR Administrator on the SOFR Administrator's Website at approximately 8:00 a.m. (New York City time) on the immediately succeeding Business Day.

"<u>SOFR Administrator</u>" means the Federal Reserve Bank of New York (or a successor administrator of the secured overnight financing rate).

"<u>SOFR Administrator's Website</u>" means the website of the Federal Reserve Bank of New York, currently at <u>http://www.newyorkfed.org,</u> or any successor source for the secured overnight financing rate identified as such by the SOFR Administrator from time to time.

"<u>Solvent</u>" means, as to any Person as of any date of determination, that on such date (a) the fair value of the property of such Person is greater than the total amount of liabilities, including contingent liabilities, of such Person, (b) the present fair saleable value of such Person is not less than the amount that will be required to pay the probable liability of such Person on its debts as they become absolute and matured, (c) such Person does not intend to, and does not believe that it will, incur debts or liabilities beyond such Person's ability to pay such debts and liabilities as they mature and (d) such Person is not engaged in a business or a transaction, and is not about to engage in a business or a transaction, for which such Person's property would constitute an unreasonably small capital. The amount of any contingent liability at any time shall be computed as the amount that, in light of all of the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability. For the avoidance of doubt, a Person shall not fail to be Solvent on any date solely as a result of such person's audit having a "going concern" or like qualification, exception or explanatory paragraph or any qualification, exception or explanatory paragraph as to the scope of such audit solely due to the COVID-19 disease outbreak.

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"<u>Spare Parts</u>" has the meaning assigned to such term in the Pledge and Security Agreement.

"<u>Standard Securitization Undertakings</u>" means all representations, warranties, covenants, indemnities, performance Guarantees and servicing obligations entered into by the Parent or any Subsidiary (other than a Receivables Subsidiary), which are customary in connection with any financing of accounts receivable.

"<u>Subsidiary</u>" of a Person means a corporation, partnership, limited liability company, association or joint venture or other business entity of which a majority of the Equity Interests having ordinary voting power for the election of directors or other governing body (other than securities or interests having such power only by reason of the happening of a contingency) are at the time owned or the management of which is controlled, directly, or indirectly through one or more intermediaries, by such Person. Unless otherwise specified, all references herein to a "Subsidiary" or to "Subsidiaries" shall refer to a Subsidiary or Subsidiaries of the Parent.

"<u>Supplemental Collateral</u>" means the assets listed in Schedule 4.02.

"<u>Swap Contract</u>" means (a) any and all rate swap transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward bond or forward bond price or forward bond index transactions, interest rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap transactions, currency options, spot contracts, or any other similar transactions or any combination of any of the foregoing (including any options to enter into any of the foregoing), whether or not any such transaction is governed by or subject to any master agreement, and (b) any and all transactions of any kind, and the related confirmations, that are subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or any other master agreement (any such master agreement, together with any related schedules, a "<u>Master Agreement</u>"), including any such obligations or liabilities under any Master Agreement.

"<u>Swap Termination Value</u>" means, as to any one or more Swap Contracts, after taking into account the effect of any legally enforceable netting agreement relating to such Swap Contracts, (a) for any date on or after the date such Swap Contracts have been closed out and termination value(s) determined in accordance therewith, such termination value(s), and (b) for any date prior to the date referenced in clause (a), the amount(s) determined as the mark-to-market value(s) for such Swap Contracts, as determined based upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Swap Contracts (which may include a Lender or any Affiliate of a Lender).

"<u>Synthetic Lease Obligation</u>" means the monetary obligation of a Person under (a) a so-called synthetic, off-balance sheet or tax retention lease or (b) an agreement for the use or possession of property creating obligations that do not appear on the balance sheet of such Person but, upon the insolvency or bankruptcy of such Person, would be characterized as the indebtedness of such Person (without regard to accounting treatment).

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"<u>Taxes</u>" means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

"<u>Term SOFR</u>" means, for the applicable Corresponding Tenor as of the applicable Reference Time, the forward-looking term rate based on SOFR that has been selected or recommended by the Relevant Governmental Body.

"<u>Trade Date</u>" means the date on which an assigning Lender enters into a binding agreement to sell and assign all or a portion of its rights and obligations under this Agreement to another Person.

"<u>Treasury</u>" has the meaning specified in the preamble to this Agreement.

"<u>UK Financial Institution</u>" means any BRRD Undertaking (as such term is defined under the PRA Rulebook (as amended from time to time) promulgated by the United Kingdom Prudential Regulation Authority) or any Person falling within IFPRU 11.6 of the FCA Handbook (as amended from time to time) promulgated by the United Kingdom Financial Conduct Authority, which includes certain credit institutions and investment firms, and certain affiliates of such credit institutions or investment firms.

"<u>UK Resolution Authority</u>" means the Bank of England or any other public administrative authority having responsibility for the resolution of any UK Financial Institution.

"<u>Unadjusted Benchmark Replacement</u>" means the applicable Benchmark Replacement excluding the related Benchmark Replacement Adjustment.

"<u>Uniform Commercial Code</u>" and "UCC" means the Uniform Commercial Code as in effect from time to time in the State of New York or, when the context implies, the Uniform Commercial Code as in effect from time to time in any other applicable jurisdiction.

"<u>United States</u>" and "<u>U.S.</u>" mean the United States of America.

"<u>USD LIBO Rate</u>" means the LIBO Rate for U.S. dollars.

"<u>U.S.</u> <u>Person</u>" means any Person that is a "United States Person" as defined in Section 7701(a)(30) of the Code.

"<u>U.S.</u> <u>Tax Compliance Certificate</u>" has the meaning specified in <u>Section</u> <u>2.16(g)</u>.

"<u>Valuation Certificate</u>" means a certificate, in form and substance satisfactory to the Required Lenders, executed by a Responsible Officer of the Parent specifying a value in Dollars (and not a range of values), dated as of the delivery thereof, that certifies, at the time of determination, in reasonable detail the Appraised Value of the Qualified Receivables specified therein.

"<u>Voting Stock</u>" of any specified Person as of any date means the equity interests of such Person that is at the time entitled to vote in the election of the board of directors of such Person.

"<u>Warrant Agreement</u>" means the warrant agreement, dated as of the date hereof between Parent and Treasury, pursuant to which Parent agrees to issue Warrants to Treasury upon each Borrowing.

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"<u>Warrants</u>" means, collectively, those certain warrants issued to Treasury under the Warrant Agreement or the PSP Warrant Agreement.

"<u>Wholly-Owned</u>" means, as to a Subsidiary of a Person, a Subsidiary of such Person all of the outstanding Equity Interests of which (other than (a) director's qualifying shares and (b) shares issued to foreign nationals to the extent required by Applicable Law) are owned by such Person and/or by one or more Wholly-Owned Subsidiaries of such Person.

"<u>Withholding Agent</u>" means the Borrower and the Administrative Agent or other person making or transferring to any Lender any payment on behalf of the Borrower.

"<u>Write-Down and Conversion Powers</u>" means, (a) with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which powers are described in the EU Bail-In Legislation Schedule and (b) with respect to the United Kingdom, any powers of the applicable Resolution Authority under the Bail-In Legislation to cancel, reduce, modify or change the form of a liability of any UK Financial Institution or any contract or instrument under which that liability arises, to convert all or part of that liability into shares, securities or obligations of such Person or any other Person, to provide that any such contract or instrument is to have effect as if a right had been exercised under it or to suspend any obligation in respect of that liability or any of the powers under that Bail-In Legislation that are related to or ancillary to any of those power.

SECTION 1.02 <u>Terms Generally</u>. The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words "include," "includes" and "including" shall be deemed to be followed by the phrase "without limitation." The word "will" shall be construed to have the same meaning and effect as the word "shall." The word "or" is not exclusive. The word "year" shall refer (i) in the case of a leap year, to a year of three hundred sixty-six (366) days, and (ii) otherwise, to a year of three hundred sixty-five (365) days. Unless the context requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein), (b) any reference herein to any Person shall be construed to include such Person's successors and assigns, (c) the words "herein," "hereof" and "hereunder," and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (d) all references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement, (e) any reference to any law or regulation herein shall, unless otherwise specified, refer to such law or regulation as amended, modified or supplemented from time to time, and (f) the words "asset" and "property" shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights.

SECTION 1.03 <u>Accounting Terms</u><u>; Changes in GAAP</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Accounting Terms</u>. Except as otherwise expressly provided herein, all accounting terms not otherwise defined herein shall be construed in conformity with GAAP. Financial statements and other information required to be delivered by the Parent to the Lenders pursuant to <u>Sections</u> <u>5.01(a)</u> and <u>5.01(b)</u> shall be prepared in accordance with GAAP as in effect at the time of such preparation. Notwithstanding the foregoing, for purposes of determining compliance with any covenant (including the computation of any financial covenant) contained herein, Indebtedness of the Parent and its Subsidiaries shall be deemed to be carried at 100% of the outstanding principal amount thereof, and the effects of FASB ASC 825 and FASB ASC 470-20 on financial liabilities shall be disregarded.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Changes in GAAP</u>. If the Borrower notifies the Administrative Agent (who will forward such notification to the Lenders) that the Borrower requests an amendment to any provision hereof to eliminate the effect of any change occurring after the date hereof in GAAP or in the application thereof on the operation of such provision (or if the Administrative Agent notifies the Borrower that the Required Lenders request an amendment to any provision hereof for such purpose), regardless of whether any such notice is given before or after such change in GAAP or in the application thereof, then such provision shall be interpreted on the basis of GAAP as in effect and applied immediately before such change shall have become effective until such notice shall have been withdrawn, the Required Lenders shall have notified the Borrower (with a copy to the Administrative Agent) of their objection to such amendment or such provision shall have been amended in accordance herewith.

SECTION 1.04 <u>Rates</u>. The Administrative Agent does not warrant or accept responsibility for, and shall not have any liability with respect to, the administration, submission or any other matter related to the rates in the definition of "LIBO Rate" or with respect to any comparable or successor rate thereto.

SECTION 1.05 <u>Divisions</u>. For all purposes under the Loan Documents, in connection with any division or plan of division under Delaware law (or any comparable event under a different jurisdiction's laws): (a) if any asset, right, obligation or liability of any Person becomes the asset, right, obligation or liability of a different Person, then it shall be deemed to have been transferred from the original Person to the subsequent Person, and (b) if any new Person comes into existence, such new Person shall be deemed to have been organized on the first date of its existence by the holders of its Equity Interests at such time.

ARTICLE II

<u>COMMITMENTS AND BORROWINGS</u> 

SECTION 2.01 <u>Commitment</u>. Subject to the terms and conditions set forth herein, the Initial Lender agrees to make the Loans to the Borrower in two installments on the Funding Date and the Second Funding Date, respectively, in an aggregate principal amount not to exceed the Initial Lender's Commitment. Amounts borrowed under this <u>Section</u> <u>2.01</u> and repaid or prepaid may not be reborrowed.

SECTION 2.02 <u>Loans and Borrowing</u><u>s</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Borrowing</u>. The Borrower shall make the initial Borrowing of the Loans on the Funding Date in an amount not to exceed the then available Commitment on such date and (ii) may request a single subsequent Borrowing on the Second Funding Date, to be not later than December 15, 2020, in an amount not to exceed the then available Commitment on such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Amount</u>. The initial Borrowing on the Funding Date shall be in an aggregate amount of $58,000,000. Subject to the satisfaction of the conditions precedent in Section 4.03 and the other terms and conditions set forth herein, the subsequent Borrowing on the Second Funding Date shall be in an aggregate amount not to exceed the then available Commitment on such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>PIK Interest</u>. In accordance with <u>Section</u> <u>2.09(e)</u>, the principal amount of the Loans shall also be increased on each Interest Payment Date by the PIK Interest Amount with respect to such Interest Payment Date unless the Borrower pays such PIK Interest Amount in cash on such Interest Payment Date pursuant to an election to do so in accordance with <u>Section</u> <u>2.09(e)</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Funding of Borrowings</u>. Each Lender shall make the amount of each Borrowing to be made by it hereunder available to the Administrative Agent by wire transfer of immediately available funds to the Administrative Account not later than 12:00 noon (New York City time) on the proposed date thereof. The Administrative Agent will make all such funds so received available to the Borrower in like funds, by wire transfer of such funds in accordance with the instructions provided in the applicable Borrowing Request; provided that if all such requested funds are not received by the Administrative Agent by 12:00 noon (New York City time) on the proposed date for such Borrowing, the Administrative Agent shall distribute such funds on the next succeeding Business Day.

SECTION 2.03 <u>Borrowing Requests</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Notice by Borrower</u>. In order to request a Borrowing, the Borrower shall notify the Administrative Agent of such request in writing not later than 11:00 a.m. (New York City time) (i) with respect to the initial Borrowing Request, three (3) Business Days prior to the date of the requested Borrowing and (ii) with respect to the subsequent Borrowing Request, five (5) Business Days prior to the date of the requested Borrowing. Each such notice shall be irrevocable and shall be in the form of a written Borrowing Request, appropriately completed and signed by a Responsible Officer of the Borrower. The Administrative Agent shall promptly advise the applicable Lenders of any Borrowing Request given pursuant to this Section 2.03(a) (and the contents thereof), and of each Lender's portion of the requested Borrowing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Content of Borrowing Requests</u>. Each Borrowing Request for a Borrowing pursuant to this Section shall specify the following information in compliance with <u>Section</u> <u>2.02</u>: (i) the aggregate amount of the requested Borrowing; (ii) the date of such Borrowing (which shall be a Business Day); and (iii) the location and number of the Borrower's account to which funds are to be disbursed.

SECTION 2.04 <u>[Reserved]</u>.

SECTION 2.05 <u>[Reserved]</u>.

SECTION 2.06 <u>Prepayments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Optional Prepayments</u>. The Borrower may, upon written notice to the Administrative Agent, at any time and from time to time prepay the Loans in whole or in part without premium or penalty, subject to the requirements of this Section. Partial prepayments of the Loans shall be in a minimum aggregate principal amount of $1,000,000 or a whole multiple of $100,000 in excess thereof. Notwithstanding anything herein to the contrary, the Borrower may at any time elect to prepay the Loans with funds contained in the Eligible Receivables Account or the Collateral Proceeds Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Mandatory Prepayments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Dispositions of Collateral</u>. Within three (3) Business Days of the receipt by the Parent or any of its Subsidiaries of any Net Proceeds from a Disposition of Collateral not permitted by <u>Section</u> <u>6.04</u>, the Borrower shall prepay the Loans in an amount equal to 100% of such Net Proceeds.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Recovery Events</u>. Within three (3) Business Days of the receipt by the Parent or any of its Subsidiaries of any Net Proceeds from a Recovery Event in respect of Collateral, the Borrower shall either (x) prepay the Loans in an amount equal to 100% of such Net Proceeds or (y) deposit such Net Proceeds into the Collateral Proceeds Account for such purpose and thereafter such Net Proceeds shall be applied (to the extent not otherwise applied pursuant to the immediately succeeding proviso) to prepay the Loans; <u>provided</u> that (I) the Borrower may use such Net Proceeds to (A) replace the assets which are the subject of such Recovery Event with assets that are of the same type of Collateral or (B) repair the assets which are the subject of such Recovery Event, in each case, within 270 days after such deposit is made, (II) all such Net Proceeds amount may, at the option of the Borrower at any time, be applied to repay the Loans, and (III) upon the occurrence of an Event of Default, the amount of any such deposit may be applied by the Administrative Agent to repay the Loans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Certain Debt Issuances</u>. Immediately upon receipt by the Parent or any of its Subsidiaries of any proceeds from the incurrence of any Indebtedness that is secured by Liens on the Collateral (other than Permitted Liens), the Borrower shall prepay the Loans in an amount equal to 100% of any such proceeds from any such Indebtedness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Change of Control</u>. Immediately upon the occurrence of a Change of Control, the Borrower shall prepay the Loans in an amount equal to 100% of the aggregate outstanding principal amount of Loans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Notices</u>. Each such notice pursuant to this Section shall be in the form of a written Prepayment Notice, appropriately completed and signed by a Responsible Officer of the Borrower, and must be received by the Administrative Agent not later than 11:00 a.m. (New York City time) three (3) Business Days before the date of prepayment (which delivery may initially be by electronic communication including fax or email and shall be followed by an original authentic counterpart thereof). Each Prepayment Notice shall specify (x) the prepayment date and (y) the principal amount of the Loans or portion thereof to be prepaid. Each Prepayment Notice shall be irrevocable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Payments</u>. Any prepayment of the Loans pursuant to this <u>Section</u> <u>2.06</u> shall be accompanied by accrued interest on the principal amount prepaid as set forth in <u>Section</u> <u>2.09(c)</u>.

SECTION 2.07 <u>Reduction and Termination of Commitments</u>. The Initial Lender's Commitment shall (x) automatically and permanently be reduced by the amount of any Borrowing of a Loan and (y) automatically and permanently terminate on the earlier of (i) 5:00 p.m. (New York City time) on December 15, 2020 and (ii) the date of the subsequent Borrowing hereunder. The Borrower may, upon not less than three (3) Business Days' notice to the Initial Lender and the Administrative Agent, terminate the Commitment or, from time to time, reduce the Commitment. Any such reduction in the Commitment shall be in an amount equal to $1,000,000 or a whole multiple thereof, and shall permanently reduce the Commitment.

SECTION 2.08 <u>Repayment of Loans</u>. The Borrower shall repay to the Administrative Agent for the ratable account of the Lenders the aggregate principal amount of all Loans outstanding on the Maturity Date.

SECTION 2.09 <u>Interest</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Interest Rates</u>. Subject to <u>paragraph</u> <u>(b)</u> of this Section, the Loans shall bear interest at a rate per annum equal to the Adjusted LIBO Rate <u>plus</u> the Applicable Rate.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Default Interest</u>. If any amount payable by the Borrower under this Agreement or any other Loan Document (including principal of any Loan, interest, fees and other amount) is not paid when due, whether at stated maturity, by acceleration or otherwise, such amount shall thereafter bear interest at a rate per annum equal to the applicable Default Rate. Upon the request of the Required Lenders, while any Event of Default exists, the Borrower shall pay interest on the principal amount of all Loans outstanding hereunder at a rate per annum equal to the applicable Default Rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Payment Dates</u>. Accrued interest on each Loan shall be payable in cash in arrears on or before 12:00 noon (New York City time) on each Interest Payment Date applicable thereto and at such other times as may be specified herein; <u>provided</u> that (i) interest accrued pursuant to <u>paragraph</u> <u>(b)</u> of this Section shall be payable on demand, (ii) in the event of any repayment or prepayment of any Loan (including mandatory prepayments under <u>Section</u> <u>2.06(b)</u>), accrued interest on the principal amount repaid or prepaid shall be payable on the date of such repayment or prepayment and (iii) any PIK Interest Amount may be paid in kind in accordance with <u>Section</u> <u>2.09(e)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Interest Computation</u>. All interest hereunder shall be computed on the basis of a year of three hundred sixty (360) days and shall be payable for the actual number of days elapsed (including the first day but excluding the last day). The Adjusted LIBO Rate shall be determined by the Administrative Agent, and such determination shall be conclusive absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Payment of Interest in Kind</u>. By written notice to the Administrative Agent at least thirty (30) days prior to each Interest Payment Date, the Borrower may elect to pay all of the PIK Interest Amount in respect of such Interest Payment Date in cash on such Interest Payment Date. If the Borrower does not elect to pay any such PIK Interest Amount in cash as set forth in this clause, such PIK Interest Amount shall be paid by increasing the principal amount of the Loan by an amount equal to such PIK Interest Amount as of the applicable Interest Payment Date.

SECTION 2.10 <u>Benchmark Replacement Setting</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Benchmark Replacement</u>. Notwithstanding anything to the contrary herein or in any other Loan Document, if a Benchmark Transition Event or an Early Opt-in Election, as applicable, and its related Benchmark Replacement Date have occurred prior to the Reference Time in respect of any setting of the then-current Benchmark, as notified by the Required Lenders to the Administrative Agent in writing, then (x) if a Benchmark Replacement is determined in accordance with clause (1) or (2) of the definition of "Benchmark Replacement" for such Benchmark Replacement Date, such Benchmark Replacement will replace such Benchmark for all purposes hereunder and under any Loan Document in respect of such Benchmark setting and subsequent Benchmark settings without any amendment to, or further action or consent of any other party to, this Agreement or any other Loan Document and (y) if a Benchmark Replacement is determined in accordance with clause (3) of the definition of "Benchmark Replacement" for such Benchmark Replacement Date, such Benchmark Replacement will replace such Benchmark for all purposes hereunder and under any Loan Document in respect of any Benchmark setting at or after 5:00 p.m. (New York City time) on the fifth (5th) Business Day after the date notice of such Benchmark Replacement is provided to the Lenders and the Administrative Agent by the Required Lenders without any amendment to, or further action or consent of any other party to, this Agreement or any other Loan Document, so long as the Administrative Agent has not received, by such time, written notice of objection to such Benchmark Replacement from Lenders comprising the Required Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Benchmark Replacement Conforming Changes</u>. In connection with the implementation of a Benchmark Replacement, the Administrative Agent (after consultation with the Required Lenders) will have the right to make Benchmark Replacement Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such Benchmark Replacement Conforming Changes will become effective without any further action or consent of any other party to this Agreement or any other Loan Document.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Notices; Standards for Decisions and Determinations</u>. The Initial Lender or the Required Lenders, as the case may be, will promptly notify the Administrative Agent, which will then promptly notify the Borrower and the Lenders of (i) any occurrence of a Benchmark Transition Event or an Early Opt-in Election, as applicable, and its related Benchmark Replacement Date, (ii) the implementation of any Benchmark Replacement, (iii) the removal or reinstatement of any tenor of a Benchmark pursuant to <u>paragraph</u> <u>(d)</u> below and (iv) the commencement or conclusion of any Benchmark Unavailability Period. The Administrative Agent will promptly notify the Borrower and the Lenders of the effectiveness of any Benchmark Replacement Conforming Changes. Any determination, decision or election that may be made by any Lender (or group of Lenders) or the Administrative Agent, if applicable, pursuant to this <u>Section</u> <u>2.10</u> including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action or any selection, will be conclusive and binding absent manifest error and may be made in its or their sole discretion and without consent from any other party to this Agreement or any other Loan Document, except, in each case, as expressly required pursuant to this <u>Section</u> <u>2.10</u>. Notwithstanding anything in this Agreement to the contrary, the Administrative Agent does not warrant or accept any responsibility for, and shall not have any liability with respect to, any determination made by it in connection with the adoption of Benchmark Replacement Conforming Changes or for the impact of such Benchmark Replacement Conforming Changes, nor for the failure to adopt any Benchmark Replacement Conforming Changes due to the failure of the Required Lenders to cooperate in good faith in connection with the determination of any Benchmark Replacement Conforming Changes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Unavailability of Tenor of Benchmark</u>. Notwithstanding anything to the contrary herein or in any other Loan Document, at any time (including in connection with the implementation of a Benchmark Replacement), (i) if the then-current Benchmark is a term rate (including Term SOFR or USD LIBO Rate) and either (A) any tenor for such Benchmark is not displayed on a screen or other information service that publishes such rate from time to time as selected by the Administrative Agent in its reasonable discretion or (B) the regulatory supervisor for the administrator of such Benchmark has provided a public statement or publication of information announcing that any tenor for such Benchmark is or will be no longer representative, then the definition of "Interest Period" may be modified for any Benchmark settings at or after such time to remove such unavailable or non-representative tenor and (ii) if a tenor that was removed pursuant to clause (i) above either (A) is subsequently displayed on a screen or information service for a Benchmark (including a Benchmark Replacement) used by the Administrative Agent or (B) is not, or is no longer, subject to an announcement that it is or will no longer be representative for a Benchmark (including a Benchmark Replacement), then the definition of "Interest Period" may be modified for all Benchmark settings at or after such time to reinstate such previously removed tenor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Benchmark Unavailability Period</u>. During any Benchmark Unavailability Period, all calculations of interest by reference to a LIBO Rate hereunder shall instead be made by reference to the Alternate Base Rate.

SECTION 2.11 <u>Evidence of Debt</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Maintenance of Records</u>. The Administrative Agent shall maintain the Register in accordance with <u>Section</u> <u>11.04(c)</u>. The entries made in the records maintained pursuant to this <u>paragraph</u> <u>(a)</u> shall be <u>prima</u> <u>facie</u> evidence absent manifest error of the existence and amounts of the obligations recorded therein. Any failure of the Administrative Agent to maintain such records or make any entry therein or any error therein shall not in any manner affect the obligations of the Borrower under this Agreement and the other Loan Documents.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Promissory Notes</u>. For each Loan, the Borrower shall prepare, execute and deliver to such Lender a promissory note of the Borrower payable to such Lender (or, if requested by such Lender, to such Lender and its registered assigns) in the form attached as Exhibit C hereto, which shall evidence such Lender's Loan.

SECTION 2.12 <u>Payments Generally</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Payments by Borrower</u>. All payments to be made by the Borrower hereunder and the other Loan Documents shall be made without condition or deduction for any counterclaim, defense, recoupment or setoff. Except as otherwise expressly provided herein, all such payments shall be made to the Administrative Agent, for the account of the respective Lenders to which such payment is owed, to the Administrative Account in immediately available funds not later than 12:00 noon (New York City time) on the date specified herein. All amounts received by a Lender or the Administrative Agent after such time on any date shall be deemed to have been received on the next succeeding Business Day and any applicable interest or fees shall continue to accrue. The Administrative Agent will promptly distribute to each Lender its ratable share (or other applicable share as provided herein) of such payment in like funds as received by wire transfer to such Lender's applicable lending office (or otherwise distribute such payment in like funds as received to the Person or Persons entitled thereto as provided herein). If any payment to be made by the Borrower shall fall due on a day that is not a Business Day, payment shall be made on the next succeeding Business Day and such extension of time shall be reflected in computing interest or fees, as the case may be; <u>provided</u> that, if such next succeeding Business Day would fall after the Maturity Date, payment shall be made on the immediately preceding Business Day. Except as otherwise expressly provided herein, all payments hereunder or under any other Loan Document shall be made in Dollars.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Application of Insufficient Payments</u>. Subject to <u>Section</u> <u>7.02</u>, if at any time insufficient funds are received by and available to the Lenders or the Administrative Agent to pay fully all amounts of principal, interest, fees and other amounts then due hereunder, such funds shall be applied (i) <u>first</u>, to pay interest, fees and other amounts then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of interest, fees and other amounts then due to such parties, and (ii) <u>second</u>, to pay principal then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of principal then due to such parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Presumptions by Administrative Agent</u>. Unless the Administrative Agent shall have received notice from the Borrower prior to the date on which any payment is due to the Administrative Agent for the account of the Lenders hereunder that the Borrower will not make such payment, the Administrative Agent may assume that the Borrower has made such payment on such date in accordance herewith and may, in reliance upon such assumption, but shall not be obligated to, distribute to the Lenders the amount due. In such event, if the Borrower has not in fact made such payment, then each of the Lenders severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender, with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to the Administrative Agent, at the greater of the Federal Funds Effective Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation. Notwithstanding the foregoing, the Administrative Agent is not required to make any payment to the Lenders until it is in possession of cleared funds from the Borrower.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Deductions by Administrative Agent</u>. If any Lender (other than the Initial Lender) shall fail to make any payment required to be made by it pursuant to <u>Section</u> <u>2.13</u> or <u>11.03(c)</u>, then the Administrative Agent may, in its discretion and notwithstanding any contrary provision hereof, (i) apply any amounts thereafter received by the Administrative Agent for the account of such Lender for the benefit of the Administrative Agent to satisfy such Lender's obligations to the Administrative Agent until all such unsatisfied obligations are fully paid or (ii) hold any such amounts in a segregated account as cash collateral for, and for application to, any future funding obligations of such Lender under any such Section, in the case of each of clauses (i) and (ii) above, in any order as determined by the Administrative Agent in its discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Several Obligations of Lenders</u>. The obligations of the Lenders hereunder to make Loans and to make payments pursuant to <u>Section</u> <u>11.03(c)</u> are several and not joint. The failure of any Lender to make any Loan or to make any such payment on any date required hereunder shall not relieve any other Lender of its corresponding obligation to do so on such date, and no Lender shall be responsible for the failure of any other Lender to so make its Loan or to make its payment under <u>Section</u> <u>11.03(c)</u>.

SECTION 2.13 <u>Sharing of Payments</u>. If any Lender shall, by exercising any right of setoff or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of its Loans or other obligations hereunder resulting in such Lender receiving payment of a proportion of the aggregate amount of its Loans and accrued interest thereon or other such obligations greater than its pro rata share thereof as provided herein, then the Lender receiving such greater proportion shall (a) notify the Administrative Agent of such fact, and (b) purchase (for cash at face value) participations in the Loans and such other obligations of the other Lenders, or make such other adjustments as shall be equitable, so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on their respective Loans and other amounts owing them; <u>provided</u> that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if any such participations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the provisions of this paragraph shall not be construed to apply to (x) any payment made by the Borrower pursuant to and in accordance with the express terms of this Agreement or (y) any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans to any assignee or participant, other than to the Borrower or any Subsidiary thereof (as to which the provisions of this paragraph shall apply).

The Borrower consents to the foregoing and agrees, to the extent it may effectively do so under Applicable Law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against the Borrower rights of setoff and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of the Borrower in the amount of such participation.

SECTION 2.14 <u>Compensation for Losses</u>. In the event of (a) the payment of any principal of the Loans other than on the last day of an Interest Period (including as a result of an Event of Default), (b) the failure to borrow or prepay the Loans (or any portion thereof) on the date specified in any notice delivered pursuant hereto, or (c) the assignment of the Loans (or any portion thereof) other than on the last day of the Interest Period applicable thereto as a result of a request by the Borrower pursuant to <u>Section</u> <u>2.19(b)</u>, then, in any such event, the Borrower shall compensate each Lender for the loss, cost and expense attributable to such event. Such loss, cost or expense to any Lender shall be deemed to include an amount determined by such Lender to be the excess, if any, of (i) the amount of interest that would have accrued on the principal amount of such Loan had such event not occurred, at the Adjusted LIBO Rate that would have been applicable to such Loan, for the period from the date of such event to the last day of the then current Interest Period therefor (or, in the case of a failure to borrow, for the date that would have been the applicable Interest Period), over (ii) the amount of interest that would

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accrue on such principal amount for such period at the interest rate that such Lender would bid were it to bid, at the commencement of such period, for dollar deposits of a comparable amount and period from other banks in the London interbank eurodollar market. A certificate of any Lender setting forth any amount or amounts that such Lender is entitled to receive pursuant to this Section shall be delivered to the Borrower and shall be conclusive absent manifest error. The Borrower shall pay such Lender the amount shown as due on any such certificate promptly after receipt thereof.

SECTION 2.15 <u>Increased Costs</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Increased Costs Generally</u>. If any Change in Law shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) impose, modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement against assets of, deposits with or for the account of, or credit extended or participated in by, any Lender (except any reserve requirement reflected in the Adjusted LIBO Rate);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) subject any Recipient to any Taxes (other than (A) Indemnified Taxes, (B) Taxes described in clauses (b) through (d) of the definition of Excluded Taxes and (C) Connection Income Taxes) on its loans, loan principal, letters of credit, commitments, or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) impose on any Lender or the London interbank market any other condition, cost or expense (other than Taxes) affecting this Agreement or Loans made by such Lender;

and the result of any of the foregoing shall be to increase the cost to such Lender or such other Recipient of making or maintaining any Loan or to reduce the amount of any sum received or receivable by such Lender or other Recipient hereunder (whether of principal, interest or any other amount) then, upon request of such Lender or other Recipient, the Borrower will pay to such Lender or other Recipient, as the case may be, such additional amount or amounts as will compensate such Lender or other Recipient, as the case may be, for such additional costs incurred or reduction suffered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>[Reserved]</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Certificates for Reimbursement</u>. A certificate of a Lender setting forth the amount or amounts necessary to compensate such Lender or its holding company, as the case may be, as specified in <u>paragraph</u> <u>(a)</u> of this Section and delivered to the Borrower, shall be conclusive absent manifest error. The Borrower shall pay such Lender the amount shown as due on any such certificate within ten (10) days after receipt thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Delay in Requests</u>. Failure or delay on the part of any Lender to demand compensation pursuant to this Section shall not constitute a waiver of such Lender's right to demand such compensation; <u>provided</u> that the Borrower shall not be required to compensate a Lender pursuant to this Section for any increased costs incurred or reductions suffered more than nine (9) months prior to the date that such Lender notifies the Borrower of the Change in Law giving rise to such increased costs or reductions, and of such Lender's intention to claim compensation therefor (except that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the nine-month period referred to above shall be extended to include the period of retroactive effect thereof).

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SECTION 2.16 <u>Taxes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Defined Terms</u>. For purposes of this Section, the term "Applicable Law" includes FATCA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Payments Free of Taxes</u>. Any and all payments by or on account of any obligation of the Borrower under any Loan Document shall be made without deduction or withholding for any Taxes, except as required by Applicable Law. If any Applicable Law (as determined in the good faith discretion of an applicable Withholding Agent) requires the deduction or withholding of any Tax from any such payment by a Withholding Agent, then the applicable Withholding Agent shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with Applicable Law and, if such Tax is an Indemnified Tax, then the sum payable by the Borrower shall be increased as necessary so that after such deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under this Section) the applicable Recipient receives an amount equal to the sum it would have received had no such deduction or withholding been made. The Borrower acknowledges and agrees that, absent a Change in Law, the Borrower is not required to withhold or deduct from any such payments to the Initial Lender on account of any U.S. federal withholding taxes or Taxes imposed pursuant to FATCA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Payment of Other Taxes by Borrower</u>. The Borrower shall timely pay to the relevant Governmental Authority in accordance with Applicable Law, or at the option of the Initial Lender, the Required Lenders or the Administrative Agent timely reimburse it for the payment of, any Other Taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Indemnification by Borrower</u>. The Borrower shall indemnify each Recipient, within thirty (30) days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section) payable or paid by such Recipient or required to be withheld or deducted from a payment to such Recipient and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to the Borrower by a Lender (with a copy to the Administrative Agent if such Lender is not the Initial Lender), or by the Administrative Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Indemnification by the Lenders</u>. Each Lender (other than the Initial Lender) shall severally indemnify the Administrative Agent, within thirty (30) days after demand therefor, for (i) any Indemnified Taxes attributable to such Lender (but only to the extent that the Borrower has not already indemnified the Administrative Agent for such Indemnified Taxes and without limiting the obligation of the Borrower to do so), (ii) any Taxes attributable to such Lender's failure to comply with the provisions of <u>Section</u> <u>11.04(d)</u> relating to the maintenance of a Participant Register and (iii) any Excluded Taxes attributable to such Lender, in each case, that are payable or paid by the Administrative Agent in connection with any Loan Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to any such Lender by the Administrative Agent shall be conclusive absent manifest error. Each Lender (other than the Initial Lender) hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under any Loan Document or otherwise payable by the Administrative Agent to such Lender from any other source against any amount due to the Administrative Agent under this <u>paragraph</u> <u>(e)</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Evidence of Payments</u>. As soon as practicable after any payment of Taxes by the Borrower to a Governmental Authority pursuant to this Section, the Borrower shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Status of Lenders</u>. (i) Any Lender (other than the Initial Lender) that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Loan Document shall deliver to the Borrower and the Administrative Agent, at the time or times reasonably requested by the Borrower or the Administrative Agent, such properly completed and executed documentation reasonably requested by the Borrower (or, if such Lender is not the Initial Lender, the Administrative Agent) as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, any Lender (other than the Initial Lender), if reasonably requested by the Borrower (or the Administrative Agent), shall deliver such other documentation prescribed by Applicable Law or reasonably requested by the Borrower (or the Administrative Agent) as will enable the Borrower (or the Administrative Agent) to determine whether or not such Lender is subject to backup withholding or information reporting requirements. Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other than such documentation set forth in <u>paragraphs</u> <u>(g)(ii)(A)</u>, <u>(ii)(B)</u> and <u>(ii)(D)</u> of this Section) shall not be required if in the Lender's reasonable judgment such completion, execution or submission would subject such Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Without limiting the generality of the foregoing,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any Lender (other than the Initial Lender) that is a U.S. Person shall deliver to the Borrower and the Administrative Agent on or about the date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), executed copies of IRS Form W-9 certifying that such Lender is exempt from U.S. federal backup withholding tax;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), whichever of the following is applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) in the case of a Foreign Lender claiming the benefits of an income tax treaty to which the United States is a party (x) with respect to payments of interest under any Loan Document, executed copies of IRS Form W-8BEN or IRS Form W-8BEN-E establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "interest" article of such tax treaty and (y) with respect to any other applicable payments under any Loan Document, IRS Form W-8BEN or IRS Form W-8BEN-E establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "business profits" or "other income" article of such tax treaty;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) executed copies of IRS Form W-8ECI (or any successor forms) and, in the case of an Agent, a withholding certificate that satisfies the requirements of Treasury Regulation Sections 1.1441-1(b)(2)(iv) and 1.1441-1(e)(3)(v) as applicable to a U.S. branch that has agreed to be treated as a U.S. Person for withholding tax purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code, (x) a certificate substantially in the form of Exhibit B-1 to the effect that such Foreign Lender is not a "bank" within the meaning of Section 881(c)(3)(A) of the Code, a "10 percent shareholder" of the Borrower within the meaning of Section 871(h)(3)(B) of the Code, or a "controlled foreign corporation" related to the Borrower as described in Section 881(c)(3)(C) of the Code (a "<u>U.S.</u> <u>Tax Compliance Certificate</u>") and (y) executed copies of IRS Form W-8BEN or IRS Form W-8BEN-E; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) to the extent a Foreign Lender is not the beneficial owner, executed copies of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN, IRS Form W-8BEN-E, a U.S. Tax Compliance Certificate substantially in the form of Exhibit B-2 or Exhibit B-3, IRS Form W-9, and/or other certification documents from each beneficial owner, as applicable; <u>provided</u> that if the Foreign Lender is a partnership and one or more direct or indirect partners of such Foreign Lender are claiming the portfolio interest exemption, such Foreign Lender may provide a U.S. Tax Compliance Certificate substantially in the form of Exhibit B-4 on behalf of each such direct and indirect partner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or about the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), executed copies of any other form prescribed by Applicable Law as a basis for claiming exemption from or a reduction in U.S. federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by Applicable Law to permit the Borrower or the Administrative Agent to determine the withholding or deduction required to be made; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) if a payment made to a Lender (other than the Initial Lender) under any Loan Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the Borrower and the Administrative Agent at the time or times prescribed by law and at such time or times reasonably requested by the Borrower or the Administrative Agent such documentation prescribed by Applicable Law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Borrower or the Administrative Agent as may be necessary for the Borrower and the Administrative Agent to comply with their obligations under FATCA and to determine that such Lender has complied with such Lender's obligations under FATCA or to determine the amount, if any, to deduct and withhold from such payment. Solely for purposes of this <u>clause</u> <u>(D)</u>, "FATCA" shall include any amendments made to FATCA after the date of this Agreement.

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Each Lender agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrower and the Administrative Agent in writing of its legal inability to do so. Notwithstanding anything to the contrary in this Agreement, the Initial Lender shall be entitled to the benefits of this <u>Section</u> <u>2.16</u> and all related provisions under this Agreement without regard to whether it provides any documentation described in this <u>Section</u> <u>2.16(g)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Treatment of Certain Refunds</u>. If any party determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes as to which it has been indemnified pursuant to this Section (including by the payment of additional amounts pursuant to this Section), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made under this Section with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund). Such indemnifying party, upon the request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to this <u>paragraph</u> <u>(h)</u> (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event that such indemnified party is required to repay such refund to such Governmental Authority. Notwithstanding anything to the contrary in this <u>paragraph</u> <u>(h),</u> in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this <u>paragraph</u> <u>(h)</u> the payment of which would place the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if the Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never been paid. This paragraph shall not be construed to require any indemnified party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Survival</u>. Each party's obligations under this Section shall survive the resignation or replacement of the Administrative Agent or any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all obligations under any Loan Document.

SECTION 2.17 <u>[Reserved]</u>.

SECTION 2.18 <u>[Reserved]</u>.

SECTION 2.19 <u>Mitigation Obligations; Replacement of Lenders</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Designation of a Different Lending Office</u>. If any Lender requests compensation under <u>Section</u> <u>2.15</u>, or requires the Borrower to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to <u>Section</u> <u>2.16</u>, then such Lender shall (at the request of the Borrower) use reasonable efforts to designate a different lending office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to <u>Section</u> <u>2.15</u> or <u>2.16,</u> as the case may be, in the future, and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender. The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Replacement of Lenders</u>. If any Lender requests compensation under <u>Section</u> <u>2.15</u>, or if the Borrower is required to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to <u>Section</u> <u>2.16</u> and, in each case, such Lender has declined or is unable to designate a different lending office in accordance with <u>paragraph</u> <u>(a)</u> of this Section, or if any Lender is a Non-Consenting Lender, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in, and consents required by, <u>Section</u> <u>11.04</u>), all of its interests, rights (other than its existing rights to payments pursuant to <u>Section</u> <u>2.15</u> or <u>Section</u> <u>2.16</u>) and obligations under this Agreement and the related Loan Documents to an Eligible Assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); <u>provided</u> that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Borrower shall have paid to the Administrative Agent the assignment fee (if any) specified in <u>Section</u> <u>11.04</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such Lender shall have received payment of an amount equal to the outstanding principal of its Loans, accrued interest thereon, accrued fees and all other amounts payable to it hereunder and under the other Loan Documents (including any amounts under <u>Section</u> <u>2.14</u>) from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in the case of any such assignment resulting from a claim for compensation under <u>Section</u> <u>2.15</u> or payments required to be made pursuant to <u>Section</u> <u>2.16</u>, such assignment will result in a reduction in such compensation or payments thereafter;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) such assignment does not conflict with Applicable Law; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) in the case of any assignment resulting from a Lender becoming a Non-Consenting Lender, the applicable assignee shall have consented to the applicable amendment, waiver or consent.

A Lender shall not be required to make any such assignment or delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply.

ARTICLE III

<u>REPRESENTATIONS AND WARRANTIES</u> 

The Credit Parties represent and warrant to the Administrative Agent, the Collateral Agent and the Lenders on the date hereof and on the Closing Date and the date of any Borrowing that:

SECTION 3.01 <u>Existence, Qualification and Power</u>. Each of the Credit Parties and their respective Material Subsidiaries (a) is duly organized or formed, validly existing and, as applicable, in good standing under the Laws of the jurisdiction of its incorporation or organization, (b) has all requisite power and authority and all requisite governmental licenses, authorizations, consents and approvals to (i) own or lease its assets and carry on its business and (ii) execute, deliver and perform its obligations under the Loan Documents to which it is a party, and (c) is duly qualified and is licensed and, as applicable, in good standing under the Laws of each jurisdiction where its ownership, lease or operation of properties or the conduct of its business requires such qualification or license, except, in each case referred to in clause (a) (other than with respect to any Credit Party), (b)(i) or (c), to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect.

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SECTION 3.02 <u>Authorization; No Contravention</u>. The execution, delivery and performance by each Credit Party of each Loan Document to which it is party have been duly authorized by all necessary corporate or other organizational action, and do not and will not (a) contravene the terms of its Organizational Documents, (b) conflict with or result in any breach or contravention of, or the creation of any Lien under, or require any payment to be made under (i) any material Contractual Obligation to which each Credit Party is a party or affecting each Credit Party or the material properties of any Credit Party or (ii) any material order, injunction, writ or decree of any Governmental Authority or any arbitral award to which any Credit Party or its property is subject or (c) violate any Law, except to the extent such violation could not reasonably be expected to have a Material Adverse Effect.

SECTION 3.03 <u>Governmental Authorization; Other Consents</u>. No approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any Governmental Authority or any other Person is necessary or required in connection with the execution, delivery or performance by, or enforcement against, each Credit Party of this Agreement or any other Loan Document, except for (i) such approvals, consents, exemptions, authorizations, actions or notices that have been duly obtained, taken or made and in full force and effect and (ii) filings and consents contemplated by the Security Documents or <u>Section</u> <u>5.14</u>.

SECTION 3.04 <u>Execution and Delivery; Binding Effect</u>. This Agreement has been, and each other Loan Document, when delivered hereunder, will have been, duly executed and delivered by each Credit Party. This Agreement constitutes, and each other Loan Document when so delivered will constitute, a legal, valid and binding obligation of each Credit Party, enforceable against each Credit Party in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, receivership, moratorium or other Laws affecting creditors' rights generally and by general principles of equity.

SECTION 3.05 <u>Financial Statements; No Material Adverse Change</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Financial Statements</u>. The financial statements described in <u>Schedule</u> <u>3.05</u> were prepared in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein, and fairly present in all material respects the financial condition of the Parent and its Subsidiaries as of the date thereof and their results of operations and cash flows for the period covered thereby in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>No Material Adverse Change</u>. Since the date of the most recent audited balance sheet included in the financial statements described in <u>Schedule</u> <u>3.05</u>, there has been no event or circumstance that, either individually or in the aggregate, has had or could reasonably be expected to have a Material Adverse Effect.

SECTION 3.06 <u>Litigation</u>. Except for those matters which have been publicly disclosed in any SEC filing of the Parent filed prior to the Closing Date, there are no actions, suits, proceedings, claims, disputes or investigations pending or, to the knowledge of any Credit Party, threatened, at Law, in equity, in arbitration or before any Governmental Authority, by or against any Credit Party or any of its Subsidiaries or against any of their properties or revenues that (a) either individually or in the aggregate could reasonably be expected to have a Material Adverse Effect or (b) purport to affect or pertain to this Agreement or any other Loan Document or any of the transactions contemplated hereby.

SECTION 3.07 <u>Contractual Obligations; No Default</u>. None of the Credit Parties and their respective Subsidiaries is in default under or with respect to any Contractual Obligation that, either individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect. No Default has occurred and is continuing or would result from the consummation of the transactions contemplated by this Agreement or any other Loan Document.

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SECTION 3.08 <u>Property</u>. Each of the Credit Parties and their respective Subsidiaries has good record and marketable title in fee simple to, or valid leasehold interests in, all real property necessary or used in the ordinary conduct of its business, except for such defects in title that, either individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect. Each Credit Party has good title to the Collateral owned by it, free and clear of all Liens other than Permitted Liens.

SECTION 3.09 <u>Taxes</u>. The Credit Parties and their respective Subsidiaries have filed all federal, state and other tax returns and reports required to be filed, and have paid all federal, state and other taxes, assessments, fees and other governmental charges levied or imposed upon them or their properties, income or assets otherwise due and payable, except (a) Taxes that are being contested in good faith by appropriate proceedings diligently conducted and for which adequate reserves are being maintained in accordance with GAAP or (b) to the extent that the failure to do so could not reasonably be expected to have a Material Adverse Effect.

SECTION 3.10 <u>Disclosure</u>. (a) The Credit Parties and their respective Subsidiaries have disclosed to the Administrative Agent, the Collateral Agent and the Lenders all agreements, instruments and corporate or other restrictions to which they are subject, and all other matters known to them, that, either individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect. The Loan Application Form, reports, financial statements, certificates and other written information (other than projected or pro forma financial information) furnished by or on behalf of the Credit Parties and their respective Subsidiaries to any Agent or any Lender in connection with the transactions contemplated hereby and the negotiation of this Agreement or delivered hereunder or under any other Loan Document (as modified or supplemented by other information so furnished), taken as a whole, do not contain any material misstatement of fact or omit to state any material fact necessary to make the statements therein (when taken as a whole), in the light of the circumstances under which they were made, not misleading; <u>provided</u> that, with respect to projected or pro forma financial information, the Credit Parties represent only that such information was prepared in good faith based upon assumptions believed to be reasonable at the time of preparation and delivery (it being understood that such projected information may vary from actual results and that such variances may be material) and (b) as of the Closing Date, the information included in the Beneficial Ownership Certification is true and correct in all respects.

SECTION 3.11 <u>Compliance with Laws</u>. Each of the Credit Parties and their respective Subsidiaries is in compliance with the requirements of all Laws (including Environmental Laws) and all orders, writs, injunctions and decrees applicable to it or to its properties, except in such instances in which (a) such requirement of Law or order, writ, injunction or decree is being contested in good faith by appropriate proceedings diligently conducted or (b) the failure to so comply, either individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect.

SECTION 3.12 <u>ERISA Compliance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as could not reasonably be expected, either individually or in the aggregate, to have a Material Adverse Effect, (i) each Plan is in compliance with the applicable provisions of ERISA, the Code and other federal or state Laws and (ii) each Plan that is intended to be a qualified plan under Section 401(a) of the Code has received a favorable determination letter, opinion letter or advisory letter from the IRS to the effect that the form of such Plan is qualified under Section 401(a) of the Code and the trust related thereto has been determined by the IRS to be exempt from federal income tax under Section 501(a) of the Code, or an application for such a letter is currently being processed by the IRS, and, to the knowledge of any Credit Party, nothing has occurred that would prevent or cause the loss of such tax-qualified status.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) There are no pending or, to the knowledge of any Credit Party, threatened or contemplated claims, actions or lawsuits, or action by any Governmental Authority, with respect to any Plan that, either individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect. There has been no prohibited transaction or violation of the fiduciary responsibility rules with respect to any Plan that, either individually or in the aggregate, has had or could reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No ERISA Event has occurred, and neither any Credit Party nor any ERISA Affiliate is aware of any fact, event or circumstance that, either individually or in the aggregate, could reasonably be expected to constitute or result in an ERISA Event that, either individually or in the aggregate, has had or could reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Except as would not reasonably be expected to have individually or in the aggregate, a Material Adverse Effect, the present value of all accrued benefits under each Pension Plan (based on those assumptions used to fund such Pension Plan) did not, as of the last annual valuation date prior to the date on which this representation is made or deemed made, exceed the value of the assets of such Pension Plan allocable to such accrued benefits by a material amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) To the extent applicable, each Foreign Plan has been maintained in compliance with its terms and with the requirements of any and all applicable requirements of Law and has been maintained, where required, in good standing with applicable regulatory authorities, except to the extent that the failure so to comply could not reasonably be expected, either individually or in the aggregate, to have a Material Adverse Effect. Neither the Parent nor any Subsidiary has incurred any obligation in connection with the termination of or withdrawal from any Foreign Plan that, either individually or in the aggregate, would reasonably be expected to have individually or in the aggregate, a Material Adverse Effect. Except as would not reasonably be expected to have individually or in the aggregate, a Material Adverse Effect, the present value of the accrued benefit liabilities (whether or not vested) under each Foreign Plan that is funded, determined as of the end of the most recently ended fiscal year of the Parent or Subsidiary, as applicable, on the basis of actuarial assumptions, each of which is reasonable, did not exceed the current value of the property of such Foreign Plan by a material amount, and for each Foreign Plan that is not funded, the obligations of such Foreign Plan are properly accrued.

SECTION 3.13 <u>Environmental Matters</u>. Except with respect to any matters that, either individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect, none of the Credit Parties and their respective Subsidiaries (a) has failed to comply with any Environmental Law or to obtain, maintain or comply with any permit, license or other approval required under any Environmental Law, (b) knows of any basis for any permit, license or other approval required under any Environmental Law to be revoked, canceled, limited, terminated, modified, appealed or otherwise challenged, (c) has or could reasonably be expected to become subject to any Environmental Liability, (d) has received notice of any claim, complaint, proceeding, investigation or inquiry with respect to any Environmental Liability (and no such claim, complaint, proceeding, investigation or inquiry is pending or, to the knowledge of the Parent, is threatened or contemplated) or (e) knows of any facts, events or circumstances that could give rise to any basis for any Environmental Liability with respect thereto.

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SECTION 3.14 <u>Investment Company Act</u>. None of the Credit Parties is an "investment company" as defined in, or subject to regulation under, the Investment Company Act of 1940.

SECTION 3.15 <u>Sanctions; Export Controls; Anti-Corruption; AML Laws</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) None of the Credit Parties and their respective Subsidiaries and no director, officer, or affiliate of the foregoing is a Person that is: (i) the subject of any sanctions administered or enforced by the United States (including, but not limited to, those administered by the U.S. Department of the Treasury's Office of Foreign Assets Control, the U.S. Department of State, and the U.S. Department of Commerce's Bureau of Industry and Security) ("<u>Sanctions</u>"), (ii) organized or resident in a country or territory that is the subject of country-wide or region-wide Sanctions (including, currently, Crimea, Cuba, Iran, North Korea, and Syria) (each a "<u>Sanctioned Country</u>") or located in a Sanctioned Country except to the extent authorized under Sanctions or (iii) a Person with whom dealings are restricted or prohibited by Sanctions as a result of a relationship of ownership or control with a Person listed in (i) or (ii) (each of (i), (ii) and (iii) is a "<u>Sanctioned Person</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For the period beginning eight (8) years prior to the date hereof, each of the Credit Parties and their respective Subsidiaries and their respective directors, officers and employees and, to the knowledge of the Credit Parties, such respective affiliates, have been, in all material respects, in compliance with the Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder (the "<u>FCPA</u>") and any other applicable anti-bribery or anti-corruption laws and regulations (collectively with the FCPA, the "<u>Anticorruption Laws</u>") and all applicable Sanctions, Export Control Laws, and AML Laws.

SECTION 3.16 <u>Solvency</u>. The Borrower and its Subsidiaries are Solvent on a consolidated basis after giving effect to the borrowing of the Loans.

SECTION 3.17 <u>Subsidiaries</u>. <u>Schedule</u> <u>3.17</u> sets forth the name of, and the ownership interests of the Parent and each of its Subsidiaries in, each Subsidiary of the Parent, and indicates which of such Subsidiaries are Excluded Subsidiaries as of the date hereof.

SECTION 3.18 <u>Senior Indebtedness</u>. The Loans, the Obligations and the Guaranteed Obligations constitute "senior indebtedness" (or any other similar or comparable term) under and as defined in the documentation governing any Indebtedness of the Credit Parties that is subordinated in right of payment to any other Indebtedness thereof.

SECTION 3.19 <u>Insurance Matters</u>. The properties of the Credit Parties are insured pursuant to <u>Section</u> <u>5.06</u> hereof. Each insurance policy required to be maintained by the Credit Parties pursuant to <u>Section</u> <u>5.06</u> is in full force and effect and all premiums in respect thereof that are due and payable have been paid.

SECTION 3.20 <u>Labor Matters</u>. Except as would not reasonably be expected to have individually or in the aggregate, a Material Adverse Effect, (a) there are no strikes, lockouts, slowdowns or other material labor disputes against any Credit Party or any of its Subsidiary thereof pending or, to the knowledge of the Credit Parties, threatened, (b) the Credit Parties and their respective Subsidiaries have complied with all applicable federal, state, local and foreign Laws relating to the employment (or termination thereof), the hours worked by and payments made to employees of the Parent and its Subsidiaries comply with the Fair Labor Standards Act and any other applicable federal, state, local or foreign Law dealing with such matters and (c) all payments due from the Credit Parties and their respective Subsidiaries, or for which any claim may be made against the Credit Parties and their

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respective Subsidiaries, on account of wages and employee health and welfare insurance and other benefits, have been paid or properly accrued in accordance with GAAP as a liability on the books of the Parent or such Subsidiary. There are no complaints, unfair labor practice charges, grievances, arbitrations, unfair employment practices charges or any other claims or complaints against the Credit Parties or their respective Subsidiaries pending or, to the knowledge of the Credit Parties, threatened to be filed with any Governmental Authority or arbitrator based on, arising out of, in connection with, or otherwise relating to the employment or termination of employment of any employee of the Credit Parties and their respective Subsidiaries that would, individually or in the aggregate, be reasonably expected to result in a Material Adverse Effect.

SECTION 3.21 <u>Insolvency Proceedings</u>. None of the Credit Parties has taken, and none of the Credit Parties is currently evaluating taking, any action to seek relief or commence proceedings under any Debtor Relief Law in any applicable jurisdiction.

SECTION 3.22 <u>Margin Regulations</u>. The Borrower is not engaged and will not engage, principally or as one of its important activities, in the business of purchasing or carrying Margin Stock, or extending credit for the purpose of purchasing or carrying Margin Stock, and no part of the proceeds of any Borrowing hereunder will be used to buy or carry any Margin Stock. Following the application of the proceeds of each Borrowing, not more than 25% of the value of the assets (either of the Borrower only or of the Borrower and its Subsidiaries on a consolidated basis) will be Margin Stock.

SECTION 3.23 <u>Liens</u>. There are no Liens of any nature whatsoever on any Collateral other than Liens permitted under <u>Section</u> <u>6.02</u> hereof.

SECTION 3.24 <u>Perfected Security Interests</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As of the Closing Date (or such later date as permitted under <u>Section</u> <u>5.14</u>) and as of the date of each Borrowing, the Security Documents, taken as a whole, are effective to create in favor of the Collateral Agent for the benefit of the Secured Parties a legal, valid and enforceable first priority security interest in all of the Collateral to the extent purported to be created thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As of the Closing Date (or such later date as permitted under <u>Section</u> <u>5.14</u>) and as of the date of each Borrowing, each Credit Party has or shall have satisfied the Perfection Requirement with respect to the Collateral.

SECTION 3.25 <u>US Citizenship</u>. The Borrower is a "citizen of the United States" as defined in Section 40102(a)(15) of Title 49 and as that statutory provision has been interpreted by the DOT pursuant to its policies.

SECTION 3.26 <u>Eligible Business Status</u>. The Borrower is an "air carrier" within the meaning of Section 40102 of Title 49, holds a certificate under Section 41102 of Title 49 and, during the time period from April 1, 2019 to September 30, 2019, derived more than 50% of its air transportation revenue from the transportation of passengers. The Borrower holds an air carrier operating certificate issued pursuant to Chapter 447 of Title 49. The Borrower possesses all necessary certificates, franchises, licenses, permits, rights, designations, authorizations, exemptions, concessions, frequencies and consents which relate to the operation of the routes flown by it and the conduct of its business and operations as currently conducted, except where failure to do so, either individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect.

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ARTICLE IV

<u>CONDITIONS</u> 

SECTION 4.01 <u>Closing Date Conditions</u>. The effectiveness of this Agreement is subject to the satisfaction (or waiver in accordance with <u>Section</u> <u>11.02</u>) of the following conditions (and, in the case of each document specified in this Section to be received by the Initial Lender (and the applicable Agent or Agents), such document shall be in form and substance satisfactory to the Initial Lender and/or the applicable Agent or Agents):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Executed Counterparts</u>. The Initial Lender and the Agents shall have received from each party hereto a counterpart of this Agreement, any Security Documents to which it is a party and the Note, each signed on behalf of such party. Notwithstanding anything herein to the contrary, delivery of an executed counterpart of a signature page of this Agreement or any Security Documents by telecopy or other electronic means, or confirmation of the execution of this Agreement on behalf of a party by an email from an authorized signatory of such party shall be effective as delivery of a manually executed counterpart of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Certificates</u>. The Initial Lender and any applicable Agent shall have received such customary certificates of resolutions or other action, incumbency certificates and/or other certificates of Responsible Officers of the Credit Parties as the Lenders may require evidencing the identity, authority and capacity of each Responsible Officer thereof authorized to act as a Responsible Officer in connection with the Loan Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Organizational Documents</u>. The Initial Lender shall have received customary resolutions or evidence of corporate authorization, secretary's certificates and such other documents and certificates (including Organizational Documents and good standing certificates) as the Initial Lender may request relating to the organization, existence and good standing of each Credit Party and any other legal matters relating to the Credit Parties, the Loan Documents or the transactions contemplated thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Opinion of Counsel to Credit Parties.</u> The Initial Lender and the applicable Agent or Agents shall have received all opinions of counsel (including any additional opinions of counsel as required under any Security Document) to the Credit Parties that is acceptable to the Initial Lender, addressed to the Initial Lender and the applicable Agent or Agents and dated the Closing Date, in form and substance satisfactory to the Initial Lender and the applicable Agent (and the Parent hereby instructs such counsel to deliver such opinions to such Persons).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Beneficial Ownership Regulation Information</u>. At least five (5) days prior to the Closing Date, the Borrower shall deliver to the Initial Lender a Beneficial Ownership Certification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Expenses</u>. The Borrower shall have paid all reasonable fees, expenses (including the fees and expenses of legal counsel) and other amounts due to the Initial Lender, the Administrative Agent and the Collateral Agent (to the extent that statements for such expenses shall have been delivered to the Borrower on or prior to the Closing Date); <u>provided</u> that such expenses payable by the Borrower may be offset against the proceeds of the Loans funded on the Funding Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Officer's Certificate</u>. The Initial Lender shall have received a certificate executed by a Responsible Officer of the Parent confirming (i) that the representations and warranties contained in <u>Article</u> <u>III</u> of this Agreement are true and correct on and as of the Closing Date, (ii) that the information provided in the Loan Application Form submitted by the Borrower was true and correct on and as of the date of delivery thereof and (iii) that no Default or Event of Default exists or will result from the borrowing of the Loans on the Funding Date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Other Documents</u>. The Initial Lender and the Agents shall have received such other documents as it may request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Appraisals</u>. The Initial Lender shall have received Appraisals and, in the case of Qualified Receivables, a Valuation Certificate, in each case satisfactory in form and substance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Security Interests.</u> Each Credit Party shall have, and shall have caused its Subsidiaries to, take any action and execute and deliver, or cause to be executed and delivered, any agreement, document or instrument required in order to create a valid, perfected first priority security interest in the Collateral in favor of the Collateral Agent for the benefit of the Secured Parties (including delivery of UCC financing statements in appropriate form for filing under the UCC and of the Intellectual Property security agreements included in the Required Filings and entering into control agreements). Each Credit Party shall have satisfied, and caused its Subsidiaries to satisfy, the Perfection Requirement with respect to the Collateral. In addition, the Credit Parties shall have delivered a completed Perfection Certificate (as defined in the Pledge and Security Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Consents and Authorizations</u>. Each Credit Party shall have obtained all consents and authorizations from Governmental Authorities and all consents of other Persons (including shareholder approvals, if applicable) that are necessary or advisable in connection with this Agreement, any Loan Document, any of the transactions contemplated hereby or thereby or the continuing operations of the Credit Parties and each of the foregoing shall be in full force and effect and in form and substance satisfactory to the Initial Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Lien Searches</u>. The Initial Lender shall have received (i) UCC, and upon the request of the Initial Lender, Intellectual Property and other lien searches conducted in the jurisdictions and offices where liens on material assets of the Credit Parties are required to be filed or recorded and (ii) to the extent Collateral consists of (x) Aircraft and Engine Assets (as defined in the Pledge and Security Agreement), aircraft registry lien searches conducted with the FAA and the International Registry, and (y) Spare Part Assets (as defined in the Pledge and Security Agreement), registry lien searches conducted with the FAA (with reference to each Designated Spare Parts Location set forth on Schedule 2.1 of the Pledge and Security Agreement), in each case, reflecting the absence of Liens on the assets of the Credit Parties, other than Permitted Liens or Liens to be discharged on or prior to the Closing Date pursuant to documentation satisfactory to the Initial Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Collateral Coverage Ratio</u>. On the Closing Date, the Collateral Coverage Ratio shall not be less than 2.0 to 1.0, as evidenced by a certificate of a Responsible Officer of the Parent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Solvency Certificate</u>. The Initial Lender shall have received a certificate of the chief financial officer or treasurer (or other comparable officer) of the Parent certifying that the Borrower and its Subsidiaries (taken as a whole) are, and will be immediately after giving effect to any Loans borrowed on the Funding Date, Solvent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Warrant Agreement</u>. Treasury and Parent shall have entered into the Warrant Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Control Agreements</u>. The Initial Lender and the Collateral Agent shall have received fully executed copies of account control agreements in form and substance satisfactory to the Initial Lender with respect to the Eligible Receivables Account, if any.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Other Matters</u>. Since December 31, 2019, (i) there has been no event or circumstance that, either individually or in the aggregate, has had or could reasonably be expected to have a Material Adverse Effect and (ii) none of the Credit Parties has made a Disposition of any assets constituting Collateral had this Agreement been in effect at such time other than as would have been permitted under Section 6.04.

SECTION 4.02 <u>Additional Borrowing Conditions</u> <u>for First Borrowing</u>. The funding by the Lenders of the first Borrowing to occur on or after the Closing Date (such date of funding, the "<u>Funding Date</u>") is additionally subject to the satisfaction of the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Administrative Agent shall have received a written Borrowing Request in accordance with the requirements of <u>Section</u> <u>2.03(a)</u>, with a copy to the Initial Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the representations and warranties of the Credit Parties set forth in this Agreement and in any other Loan Document shall be true and correct in all material respects (or, in the case of any such representation or warranty already qualified by materiality, in all respects) on and as of the Funding Date (or, in the case of any such representation or warranty expressly stated to have been made as of a specific date, as of such specific date);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) no Default shall have occurred and be continuing or would result from such Borrowing or from the application of proceeds thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Initial Lender and the Agents shall have received from each applicable party hereto a counterpart of supplements to the Pledge and Security Agreement and any other applicable Security Document to which it is a party with respect to all Supplemental Collateral that constitutes Eligible Collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Initial Lender and the applicable Agent or Agents shall have received all opinions of counsel (including any additional opinions of counsel as required under any Security Document) to the Credit Parties relating to the Supplemental Collateral that is acceptable to the Initial Lender, addressed to the Initial Lender and the applicable Agent or Agents and dated the Funding Date, in form and substance satisfactory to the Initial Lender and the applicable Agent (and the Parent hereby instructs such counsel to deliver such opinions to such Persons);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the Initial Lender and any applicable Agent shall have received such customary certificates of resolutions or other action, incumbency certificates and/or other certificates of Responsible Officers of the Credit Parties as the Lenders may require evidencing the identity, authority and capacity of each Responsible Officer thereof authorized to act as a Responsible Officer in connection with the Loan Documents, or in each case, confirmation that there has been no change since the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the Initial Lender shall have received customary resolutions or evidence of corporate authorization, secretary's certificates and such other documents and certificates (including Organizational Documents and good standing certificates) as the Initial Lender may request relating to the organization, existence and good standing of each Credit Party and any other legal matters relating to the Credit Parties, the Loan Documents or the transactions contemplated thereby, or in each case, confirmation that there has been no change since the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the Borrower shall have paid all reasonable fees, expenses (including the fees and expenses of legal counsel) and other amounts due to the Initial Lender, the Administrative Agent and the Collateral Agent (to the extent that statements for such expenses shall have been delivered to the Borrower on or prior to the Funding Date); <u>provided</u> that such expenses payable by the Borrower may be offset against the proceeds of the Loans funded on the Funding Date;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Initial Lender shall have received a certificate executed by a Responsible Officer of the Parent confirming (i) that the representations and warranties contained in <u>Article III</u> of this Agreement are true and correct on and as of the Funding Date and (ii) that no Default or Event of Default exists or will result from the borrowing of the Loans on the Funding Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) the Initial Lender and the Agents shall have received such other documents as it may request;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) each Credit Party shall have obtained all consents and authorizations from Governmental Authorities and all consents of other Persons (including shareholder approvals, if applicable) that are necessary or advisable in connection with this Agreement, any Loan Document, any of the transactions contemplated hereby or thereby or the continuing operations of the Credit Parties and each of the foregoing shall be in full force and effect and in form and substance satisfactory to the Initial Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) the Initial Lender shall have received (i) UCC, and upon the request of the Initial Lender, Intellectual Property and other lien searches relating to the Supplemental Collateral conducted in the jurisdictions and offices where liens on material assets of the Credit Parties are required to be filed or recorded and (ii) to the extent any Supplemental Collateral consists of (x) Aircraft and Engine Assets (as defined in the Pledge and Security Agreement), aircraft registry lien searches conducted with the FAA and the International Registry, and (y) Spare Part Assets (as defined in the Pledge and Security Agreement), registry lien searches conducted with the FAA (with reference to each Designated Spare Parts Location set forth on Schedule 2.1 of the Pledge and Security Agreement or applicable supplement), in each case, reflecting the absence of Liens on the assets of the Credit Parties, other than Permitted Liens or Liens to be discharged on or prior to the Funding Date pursuant to documentation satisfactory to the Initial Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) the Initial Lender shall have received Appraisals or Valuation Certificates, as applicable, with respect to the Supplemental Collateral, in each case satisfactory in form and substance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) on the Funding Date (and after giving pro forma effect to the Borrowing on the Funding Date and the pledge of any Additional Collateral), the Collateral Coverage Ratio shall not be less than 2.0 to 1.0 as evidenced by a certificate of a Responsible Officer of the Parent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) on the Funding Date the opinion of the independent public accountants (after giving effect to any reissuance or revision of such opinion) on the most recent audited consolidated financial statements delivered by the Parent pursuant to <u>Section</u> <u>5.01(a)</u> shall not include a "going concern" qualification under GAAP as in effect on the date of this Agreement or, if there is a change in the relevant provisions of GAAP thereafter, any like qualification or exception under GAAP after giving effect to such change;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) on or prior to the Funding Date, each Credit Party shall have, and shall have caused its Subsidiaries to, take any action and execute and deliver, or cause to be executed and delivered, any agreement, document or instrument required in order to create a valid, perfected first priority security interest in the applicable Supplemental Collateral in favor of the Collateral Agent for the benefit of the Secured Parties (including delivery of UCC financing statements in appropriate form for filing under the UCC and of the Intellectual Property security agreements included in the Required Filings and entering into control agreements);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) on or prior to the Funding Date, Borrower shall have (i) delivered to the Initial Lender evidence of entry into consignment arrangements with respect to the Supplemental Collateral that are satisfactory in form and substance to the Initial Lender, and delivery of such other documents and evidence of such other arrangements relating thereto that the Initial Lender may request, and (ii) taken any action and executed and delivered, or caused to be executed and delivered, any agreement, document or instrument required in order to create a valid, perfected first priority security interest in such consignment arrangements in favor of the Collateral Agent for the benefit of the Secured Parties (including delivery of UCC financing statements in appropriate form for filing under the UCC and applicable filings with the FAA);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) on or prior to the Funding Date, each Credit Party shall have satisfied the Perfection Requirement with respect to the Supplemental Collateral; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) on or prior to the Funding Date, the Credit Parties shall have delivered a completed Perfection Certificate (as defined in the Pledge and Security Agreement) with respect to the Supplemental Collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) the Initial Lender shall have received a certificate of the chief financial officer or treasurer (or other comparable officer) of the Parent certifying that the Borrower and its Subsidiaries (taken as a whole) are, and will be immediately after giving effect to any Loans borrowed on the Funding Date, Solvent.

Each Borrowing Request by the Borrower hereunder and each Borrowing shall be deemed to constitute a representation and warranty by the Borrower on and as of the date of the applicable Borrowing as to the matters specified in <u>clauses</u> <u>(b)</u> and <u>(f)</u> above in this Section.

SECTION 4.03 <u>Additional Borrowing Conditions for Second Borrowing</u>. The funding by the Lenders of the second Borrowing to occur on or after the Closing Date (such date of funding, the "<u>Second Funding Date</u>") is additionally subject to the satisfaction of the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Administrative Agent shall have received a written Borrowing Request in accordance with the requirements of <u>Section</u> <u>2.03(a)</u>, with a copy to the Initial Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the representations and warranties of the Credit Parties set forth in this Agreement and in any other Loan Document shall be true and correct in all material respects (or, in the case of any such representation or warranty already qualified by materiality, in all respects) on and as of the Second Funding Date (or, in the case of any such representation or warranty expressly stated to have been made as of a specific date, as of such specific date);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) no Default shall have occurred and be continuing or would result from such Borrowing or from the application of proceeds thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) on the Second Funding Date (and after giving pro forma effect to the Borrowing on the Second Funding Date and the pledge of any Additional Collateral), the Collateral Coverage Ratio shall not be less than 2.0 to 1.0 as evidenced by a certificate of a Responsible Officer of the Parent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) on the Second Funding Date the opinion of the independent public accountants (after giving effect to any reissuance or revision of such opinion) on the most recent audited consolidated financial statements delivered by the Parent pursuant to <u>Section</u> <u>5.01(a)</u> shall not include a "going concern" qualification under GAAP as in effect on the date of this Agreement or, if there is a change in the relevant provisions of GAAP thereafter, any like qualification or exception under GAAP after giving effect to such change; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) on or prior to the date of such Borrowing, each Credit Party shall have satisfied the Perfection Requirement with respect to the Collateral.

Each Borrowing Request by the Borrower hereunder and each Borrowing shall be deemed to constitute a representation and warranty by the Borrower on and as of the date of the applicable Borrowing as to the matters specified in <u>clauses</u> <u>(b)</u> and <u>(f)</u> above in this Section.

ARTICLE V

<u>AFFIRMATIVE COVENANTS</u> 

Until all the later of (i) the date on which all of the Obligations shall have been paid in full and (ii) such later date specified in this Agreement, the Credit Parties covenant and agree with the Lenders that:

SECTION 5.01 <u>Financial Statements</u>. The Parent will furnish to the Administrative Agent and each Lender:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) as soon as available, and in any event within ninety (90) days after the end of each fiscal year of the Parent (or, if earlier, five (5) days after the date required to be filed with the SEC) (commencing with the fiscal year ended prior to the Closing Date), a consolidated balance sheet of the Parent and its Subsidiaries as at the end of such fiscal year and the related consolidated statements of income or operations, shareholders' equity and cash flows for such fiscal year, setting forth in each case in comparative form the figures for the previous fiscal year, audited and accompanied by a report and opinion of independent public accountants of nationally recognized standing, which report and opinion shall be prepared in accordance with generally accepted auditing standards (and shall not be subject to any "going concern" or like qualification (other than a qualification solely resulting from (x) the impending maturity of any Indebtedness or (y) any prospective or actual default under any financial covenant), exception or explanatory paragraph or any qualification, exception or explanatory paragraph as to the scope of such audit) to the effect that such consolidated financial statements present fairly in all material respects the financial condition, results of operations, shareholders' equity and cash flows of the Parent and its Subsidiaries on a consolidated basis in accordance with GAAP consistently applied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) as soon as available, but in any event within forty-five (45) days after the end of each of the first three (3) fiscal quarters of each fiscal year of the Parent (or, if earlier, five (5) days after the date required to be filed with the SEC) (commencing with the first of such fiscal quarters ended prior to the Closing Date), a consolidated balance sheet of the Parent and its Subsidiaries as at the end of such fiscal quarter, the related consolidated statements of income or operations, shareholders' equity and cash flows for such fiscal quarter and for the portion of the Parent's fiscal year then ended, in each case setting forth in comparative form, as applicable, the figures for the corresponding fiscal quarter of the previous fiscal year and the corresponding portion of the previous fiscal year, certified by a Financial Officer of the Parent as fairly presenting in all material respects the financial condition, results of operations, shareholders' equity and cash flows of the Parent and its Subsidiaries on a consolidated basis in accordance with GAAP consistently applied, subject only to normal year-end audit adjustments and the absence of notes;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) for so long as the Initial Lender is the only Lender, as soon as available, but in any event no later than seventy-five (75) days after the beginning of each fiscal year of the Parent, forecasts prepared by management of the Parent and a summary of material assumptions used to prepare such forecasts, in form satisfactory to the Initial Lender, including projected consolidated balance sheets and statements of income or operations and cash flows of the Parent and its Subsidiaries on a quarterly basis for such fiscal year; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) solely at the request of the Appropriate Party (which shall be no more than quarterly), at a time mutually agreed with the Appropriate Party and the Parent, participate in a conference call for Lenders to discuss the financial condition and results of operations of the Parent and its Subsidiaries and any forecasts which have been delivered pursuant to this <u>Section</u> <u>5.01</u>.

SECTION 5.02 <u>Certificates; Other Information</u>. The Parent will deliver to the Administrative Agent and each Lender:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) [reserved];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) concurrently with the delivery of the financial statements referred to in <u>Sections</u> <u>5.01(a)</u> and <u>(b)</u>, a duly completed certificate signed by a Responsible Officer of the Parent certifying as to whether a Default has occurred and, if a Default has occurred, specifying the details thereof and any action taken or proposed to be taken with respect thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) [reserved];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) promptly after the furnishing thereof, copies of any notice of default or potential default or other material written notice received by the Parent or any Subsidiary from, or furnished by the Parent or any Subsidiary to, any holder of Material Indebtedness of the Parent or any Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) promptly after receipt thereof by any Credit Party or any Subsidiary thereof, copies of each material notice or other material written correspondence received from the SEC (or comparable agency in any applicable non-U.S. jurisdiction) concerning any investigation or possible investigation or other inquiry by such agency regarding material financial or other material operational results of any Credit Party or any Subsidiary thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) [reserved];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) promptly following any request therefor, (i) such other information regarding the operations, business, properties, liabilities (actual or contingent), condition (financial or otherwise) or prospects of any Credit Party or any Subsidiary, or compliance with the terms of the Loan Documents (including <u>Section</u> <u>6.16</u>), as the Administrative Agent, the Initial Lender or any other Lender (acting through the Administrative Agent) may from time to time request; or (ii) beneficial ownership information and documentation reasonably requested by the Administrative Agent or any Lender from time to time for purposes of ensuring compliance with Sanctions and AML Laws. For purposes of determining whether or not a representation with respect to any indirect ownership is true or a covenant is being complied with under this Section, the Parent shall not be required to make any investigation into (i) the ownership of publicly traded stock or other publicly traded securities or (ii) the ownership of assets by a collective investment fund that holds assets for employee benefit plans or retirement arrangements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) concurrently with the delivery of the financial statements referred to in <u>Sections</u> <u>5.01(a)</u> and <u>(b)</u>, a duly completed certificate signed by a Responsible Officer of the Borrower certifying as to its compliance with <u>Article</u> <u>X</u> of this Agreement.

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Documents required to be delivered pursuant to <u>Section</u> <u>5.01(a)</u> or <u>(b)</u> or <u>Section</u> <u>5.02(d)</u> or <u>(e)</u> (to the extent any such documents are included in materials otherwise filed with the SEC) may be delivered electronically and, if so delivered, shall be deemed to have been delivered on the date (i) on which such materials are publicly available as posted on the Electronic Data Gathering, Analysis and Retrieval system (EDGAR); or (ii) on which such documents are posted on the Parent's behalf on an Internet or intranet website, if any, to which each Lender and the Administrative Agent have access (whether a commercial, third-party website or whether sponsored by the Administrative Agent); <u>provided</u> that: (A) upon written request by the Administrative Agent, the Parent shall deliver paper copies of such documents to the Administrative Agent or any Lender upon its request to the Parent to deliver such paper copies until a written request to cease delivering paper copies is given by the Administrative Agent or such Lender and (B) the Parent shall notify the Administrative Agent and each Lender (by facsimile or electronic mail) of the posting of any such documents and provide to the Lenders by electronic mail electronic versions (i.e., soft copies) of such documents. The Administrative Agent shall have no obligation to request the delivery of or to maintain paper copies of the documents referred to above.

SECTION 5.03 <u>Notices</u>. The Parent will promptly notify the Administrative Agent and each Lender of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) promptly after any Responsible Officer of the Parent or any of its Subsidiaries obtains knowledge thereof, the occurrence of any Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the filing or commencement of any action, suit, investigation or proceeding by or before any arbitrator or Governmental Authority against or affecting the Parent or any Controlled Affiliate thereof, including pursuant to any applicable Environmental Laws, that could reasonably be expected to be adversely determined, and, if so determined, could reasonably be expected to have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the occurrence of any ERISA Event that, either individually or together with any other ERISA Events, could reasonably be expected to have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) notice of any action arising under any Environmental Law or of any noncompliance by any Credit Party or any Subsidiary with any Environmental Law or any permit, approval, license or other authorization required thereunder that, if adversely determined, could reasonably be expected to have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) to the extent not publicly disclosed pursuant to an SEC filing of the Parent, any material change in accounting or financial reporting practices by the Parent, any Credit Party or any Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any change in the Credit Ratings from a Credit Rating Agency with negative implications, or the cessation by a Credit Rating Agency of, or its intent to cease, rating the Borrower's or the Parent's debt; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any matter or development that has had or could reasonably be expected to have a Material Adverse Effect.

Each notice delivered under this Section shall be accompanied by a statement of a Responsible Officer of the Parent setting forth the details of the occurrence requiring such notice and stating what action the Parent has taken and proposes to take with respect thereto.

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SECTION 5.04 <u>Preservation of Existence, Etc</u>. Each Credit Party will, and will cause each of its Subsidiaries to, (a) preserve, renew and maintain in full force and effect its legal existence and good standing under the Laws of the jurisdiction of its organization except in a transaction permitted by <u>Section</u> <u>6.03</u> or <u>Section</u> <u>6.04</u>; (b) take all reasonable action to maintain all rights, licenses, permits, privileges and franchises necessary or desirable in the normal conduct of its business, except to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect; and (c) preserve or renew all of its registered patents, trademarks, trade names and service marks, the non-preservation of which could reasonably be expected to have a Material Adverse Effect.

SECTION 5.05 <u>Maintenance of Properties</u>. Each Credit Party will, and will cause each of its Subsidiaries to, (a) maintain, preserve and protect all of its properties and equipment necessary in the operation of its business in good working order and condition (ordinary wear and tear excepted) and (b) make all necessary repairs thereto and renewals and replacements thereof, except to the extent that the failure to do so could not reasonably be expected to have a Material Adverse Effect.

SECTION 5.06 <u>Maintenance of Insurance</u>. Subject to any additional requirements under any Security Document, each Credit Party will maintain with financially sound and reputable insurance companies, insurance with respect to its properties and business against loss or damage of the kinds customarily insured against by Persons engaged in the same or similar business, of such types and in such amounts (after giving effect to any self-insurance reasonable and customary for similarly situated Persons engaged in the same or similar businesses as the Parent and its Subsidiaries; <u>provided</u> that insurance in respect of Collateral shall be maintained with such third party insurance companies except to the extent expressly permitted in the Pledge and Security Agreement) as are customarily carried under similar circumstances by such Persons.

SECTION 5.07 <u>Payment of Obligations</u>. Each Credit Party will pay, discharge or otherwise satisfy as the same shall become due and payable, all of its obligations and liabilities, including Tax liabilities, except to the extent (a) the same are being contested in good faith by appropriate proceedings diligently conducted and adequate reserves in accordance with GAAP are being maintained by the Parent or such Credit Party or (b) the failure to do so could not reasonably be expected to have a Material Adverse Effect.

SECTION 5.08 <u>Compliance with Laws</u>. Each Credit Party will, and will cause each of its Subsidiaries to, comply with the requirements of all Laws and all orders, writs, injunctions and decrees applicable to it or to its business or property, except to the extent that the failure to do so could not reasonably be expected to have a Material Adverse Effect.

SECTION 5.09 <u>Environmental Matters</u>. Except to the extent that the failure to do so could not reasonably be expected to have a Material Adverse Effect, each Credit Party will, and will cause each of its Subsidiaries to, (a) comply with all Environmental Laws, (b) obtain, maintain in full force and effect and comply with any permits, licenses or approvals required for the facilities or operations of the Parent or any of its Subsidiaries, and (c) conduct and complete any investigation, study, sampling or testing, and undertake any corrective, cleanup, removal, response, remedial or other action necessary to identify, report, remove and clean up all Hazardous Materials present or released at, on, in, under or from any of the facilities or real properties of the Parent or any of its Subsidiaries.

SECTION 5.10 <u>Books and Records</u>. Each Credit Party will maintain proper books of record and account, in which full, true and correct entries in conformity with GAAP consistently applied shall be made of all financial transactions and matters involving the assets and business of the Parent or such Subsidiary, as the case may be.

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SECTION 5.11 <u>Inspection Rights</u>. Each Credit Party will, and, to the extent relevant for inspections of Collateral will cause each of its Subsidiaries to, permit representatives, agents and independent contractors of the Administrative Agent, the Initial Lender, the Treasury Inspector General and the Special Inspector General for Pandemic Recovery to visit and inspect any of its properties (including all Collateral), to examine its corporate, financial and operating records, and make copies thereof or abstracts therefrom, and to discuss its affairs, finances and accounts with its directors, officers, and independent public accountants, all at the reasonable expense of the Parent and at such reasonable times during normal business hours and as often as may be reasonably requested; <u>provided</u> that, other than with respect to such visits and inspections during the continuation of an Event of Default or by the Initial Lender, the Treasury Inspector General or the Special Inspector General for Pandemic Recovery, (a) only the Administrative Agent (or its representatives, agents and independent contractors) at the direction of a Lender may exercise rights under this Section and (b) the Administrative Agent (or its representatives, agents and independent contractors) shall not exercise such rights more often than two (2) times during any calendar year; <u>provided</u>, <u>further</u>, that when an Event of Default exists the Administrative Agent, any Lender, the Treasury Inspector General or the Special Inspector General for Pandemic Recovery (or any of their respective representatives, agents or independent contractors) may do any of the foregoing under this Section at the expense of the Parent and at any time during normal business hours and without advance notice.

SECTION 5.12 <u>Sanctions; Export Controls; Anti-Corruption Laws and AML Laws</u>. Each Credit Party and its Subsidiaries will remain in compliance in all material respects with applicable Sanctions, Export Control Laws, Anticorruption Laws, and AML Laws. Until all Obligations have been paid in full, neither any Credit Party, any Subsidiary of a Credit Party, nor any director or officer of any Credit Party or any Subsidiary of a Credit Party shall become a Sanctioned Person or a Person that is organized or resident in a Sanctioned Country or located in a Sanctioned Country except to the extent authorized under Sanctions.

SECTION 5.13 <u>Guarantors; Additional Collateral</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Guarantors listed on the signature page to this Agreement hereby Guarantee the Guaranteed Obligations as set forth in <u>Article</u> <u>IX</u>. If any Subsidiary (other than an Excluded Subsidiary) is formed or acquired after the Closing Date, if any Subsidiary ceases to be an Excluded Subsidiary or if required in connection with the addition of Additional Collateral, then the Parent will cause such Subsidiary, promptly (in any event, within thirty (30) days of such Subsidiary being formed or acquired or of such Subsidiary ceasing to be an Excluded Subsidiary) (i) to become a Guarantor of the Loans pursuant to joinder documentation reasonably acceptable to the Appropriate Party and on the terms and conditions set forth in <u>Article</u> <u>IX</u>, (ii) to become a party to each applicable Security Document and all other agreements, instruments or documents that create or purport to create and perfect a first priority Lien (subject to Permitted Liens) in favor of the Collateral Agent for the benefit of the Secured Parties in its assets that are of a type that are intended to be included in the Collateral (other than any Excluded Assets), subject to and in accordance with the terms, conditions and provisions of the Loan Documents, (iii) to satisfy the Perfection Requirement, (iv) to deliver a secretary's certificate of such Subsidiary, in form and substance reasonably acceptable to the Appropriate Party, with appropriate insertions and attachments, and (v) to deliver legal opinions relating to the matters described above, which opinions shall be in form and substance, and from counsel, satisfactory to the Appropriate Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Parent or any Subsidiary desires, or is required pursuant to the terms of this Agreement, to add Additional Collateral or, if any Subsidiary acquires any existing Collateral from a Grantor (as defined in the Pledge and Security Agreement) that it is required pursuant to the terms of this Agreement to maintain as Collateral, in each case, after the Closing Date, the Parent shall, in each case at its own expense, promptly (in any event, unless any other time period is specified in this Agreement or

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any other Loan Document, within thirty (30) days of the relevant date) (i) cause any such Subsidiary to become a Grantor (to the extent such Subsidiary is not already a Grantor) pursuant to joinder documentation acceptable to the Appropriate Party and on the terms and conditions set forth in the relevant Security Documents, (ii) cause any such Subsidiary to become a party to each applicable Security Document and all other agreements, instruments or documents that create or purport to create and perfect a first priority Lien (subject to Permitted Liens) in favor of the Collateral Agent for the benefit of the Secured Parties applicable to such Collateral, in form and substance satisfactory to the Appropriate Party (it being understood that in the case of any Additional Collateral of a type, or in a jurisdiction, that has not been theretofore included in the Collateral, such Additional Collateral may be subject to such additional terms and conditions as requested by the Appropriate Party), (iii) promptly execute and deliver (or cause such Subsidiary to execute and deliver) to the Collateral Agent such documents and take such actions to create, grant, establish, preserve and perfect the first priority Liens (subject to Permitted Liens) (including to obtain any release or termination of Liens not permitted under the definition of "Additional Collateral" in <u>Section</u> <u>1.01</u> or under <u>Section</u> <u>6.02</u> and to satisfy all Perfection Requirements, including the filing of UCC financing statements, filings with the FAA and registrations with the International Registry, as applicable) in favor of the Collateral Agent for the benefit of the Secured Parties on such assets of the Parent or such Subsidiary, as applicable, to secure the Obligations to the extent required under the applicable Security Documents or reasonably requested by the Appropriate Party, and to ensure that such Collateral shall be subject to no other Liens other than Permitted Liens and (iv) if requested by the Appropriate Party, deliver (or cause such Subsidiary to deliver) legal opinions to the Collateral Agent, for the benefit of the Secured Parties, relating to the matters described above, which opinions shall be in form and substance, and from counsel, satisfactory to the Appropriate Party.

SECTION 5.14 <u>Post-Closing Matters</u>. As promptly as practicable, and in any event within the time periods after the Closing Date specified on <u>Schedule</u> <u>5.14</u> or such later date as the Initial Lender may agree to in writing in its sole discretion, the Parent shall deliver the documents or take the actions specified on <u>Schedule</u> <u>5.14</u> that would have been required to be delivered or taken on the Closing Date.

SECTION 5.16 <u>Delivery of Appraisals</u> <u>and Valuation Certificates</u>. The Parent shall (1) (x) with respect to Eligible Collateral other than Eligible Collateral constituting Qualified Receivables, within ten (10) Business Days prior to the last Business Day of March and September of each year, beginning with March 31, 2021, deliver to the Administrative Agent one or more Appraisals and (y) with respect to Eligible Collateral constituting Qualified Receivables, within ten (10) Business Days prior to the last Business Day of March, June, September and December of each year, beginning with December 31, 2020, deliver to the Administrative Agent one or more Valuation Certificates and (2) promptly (but in any event within thirty (30) days) following request by the Administrative Agent (acting at the direction

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of the Required Lenders) if an Event of Default has occurred and is occurring, deliver to the Administrative Agent one or more Appraisals, in each case of clauses (1) and (2) above, determining the appraised value of the relevant Collateral. In addition, on the date upon which any Additional Collateral is pledged as Collateral to the Collateral Agent for the benefit of the Secured Parties to secure the Obligations, but only with respect to such Additional Collateral, the Parent shall deliver to the Administrative Agent one or more Appraisals or Valuation Certificates, as applicable, determining the appraised value of such Additional Collateral.

SECTION 5.17 <u>Ratings</u>. At any time when the Initial Lender is a Lender, the Borrower shall, upon request by the Initial Lender, use its reasonable best efforts to obtain a public rating in respect of the Loans by any two of S&P, Moody's and Fitch in connection with any contemplated assignment of, or participation in, the Loans.

SECTION 5.18 <u>Regulatory Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>US Citizenship</u>. The Borrower will at all times maintain its status as a "citizen of the United States" as defined in Section 40102(a)(15) of Title 49 and as that statutory provision has been interpreted by the DOT pursuant to its policies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Eligible Business Status</u>. The Borrower will at all times maintain its status as an Eligible Business. The Borrower will at all times possess all necessary certificates, franchises, licenses, permits, rights, designations, authorizations, exemptions, concessions, frequencies and consents which relate to the operation of the routes flown by it and the conduct of its business and operations as currently conducted, except where failure to do so, either individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect. The Borrower will at all times possess an air carrier operating certificate issued pursuant to Chapter 447 of Title 49.

SECTION 5.19 <u>Eligible Receivables</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Credit Parties shall (x) instruct and use their reasonable best efforts to cause counterparties to all Eligible Receivables to direct payments of all Eligible Receivables Revenue into the Eligible Receivables Account and (y) cause sufficient counterparties to the Eligible Receivables to direct payments of Eligible Receivables Revenue into the Eligible Receivables Account such that during any Eligible Receivables Test Period, at least 90% of Eligible Receivables Revenue for such period is deposited directly into the Eligible Receivables Account. To the extent the Parent, any Subsidiary or any of their respective Controlled Affiliates receives any payments of Eligible Receivables Revenue to an account other than the Eligible Receivables Account, such Person shall wire transfer as soon as practicable, but in any event within three (3) Business Days of receipt, any such amounts to the Eligible Receivables Account. All amounts in the Eligible Receivables Account shall be conclusively presumed to be Collateral and proceeds of Collateral, and the Agents and the Lenders shall have no duty to inquire as to the source of the amounts on deposit in the Eligible Receivables Account. On each Eligible Receivables Determination Date, the Parent shall deliver to the Administrative Agent a certificate of a Responsible Officer of the Parent certifying that all Eligible Receivables Revenue for such Eligible Receivables Test Period was deposited into the Eligible Receivables Account (and at least 90% of all Eligible Receivables Revenues were deposited directly into the Eligible Receivables Account).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Collateral Coverage Ratio as of any CCR Reference Date is less than 1.60 to 1.00, then all amounts on deposit in the Eligible Receivables Account or transferred thereto shall be required to be held in the Eligible Receivables Account uninvested, and the Parent and the Subsidiaries shall not transfer any funds from the Eligible Receivables Account (except for application to prepay the Loans then outstanding in accordance with <u>Section</u> <u>2.06(a)</u>), until the first CCR Reference Date on which the Collateral Coverage Ratio is 1.60 to 1.00 or more, whereupon funds may once again be transferred from the Eligible Receivables Account for purposes other than prepayment of the Loans.

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ARTICLE VI

<u>NEGATIVE COVENANTS</u> 

Until all the later of (i) the date on which all of the Obligations shall have been paid in full and (ii) such later date specified in this Agreement, the Credit Parties covenant and agree with the Lenders that:

SECTION 6.01 <u>[Reserved]</u>.

SECTION 6.02 <u>Liens</u>. The Parent will not, and will not permit any of its Subsidiaries to, create, incur, assume or suffer to exist any Lien upon any property or assets constituting Collateral, whether now owned or hereafter acquired, except for Permitted Liens.

SECTION 6.03 <u>Fundamental Changes</u>. The Parent will not, and will not permit any of its Subsidiaries to, merge, dissolve, liquidate, consolidate with or into another Person, or Dispose of (whether in one transaction or in a series of transactions) all or substantially all of its assets (whether now owned or hereafter acquired) to or in favor of any Person, except that, so long as no Default exists or would result therefrom:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any Subsidiary may merge with (i) the Borrower; <u>provided</u> that the Borrower shall be the continuing or surviving Person, or (ii) any one or more other Subsidiaries; <u>provided</u> that (x) when any Wholly-Owned Subsidiary is merging with another Subsidiary, a Wholly-Owned Subsidiary shall be the continuing or surviving Person and (y) when any Subsidiary that is a Credit Party is merging with another Subsidiary, then such other Subsidiary shall be a Credit Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any Subsidiary may Dispose of all or substantially all of its assets (upon voluntary liquidation or otherwise) to the Parent or to another Subsidiary; <u>provided</u> that (x) if the transferor in such a transaction is a Wholly-Owned Subsidiary, then the transferee shall either be the Parent or another Wholly-Owned Subsidiary and (y) if the transferor in such a transaction is a Credit Party, then the transferee shall be a Credit Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Parent and its Subsidiaries may make Dispositions permitted by <u>Section</u> <u>6.04</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any Investment permitted by <u>Section</u> <u>6.06</u> may be structured as a merger, consolidation or amalgamation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any Subsidiary may dissolve, liquidate or wind up its affairs if it owns no material assets, engages in no business and otherwise has no activities other than activities related to the maintenance of its existence and good standing; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any Subsidiary may Dispose of all or substantially all of its assets (upon voluntary liquidation or otherwise), provided that such assets do not constitute all or substantially all of the consolidated assets of the Parent and its Subsidiaries.

SECTION 6.04 <u>Dispositions</u>. The Parent will not, and will not permit any of its Subsidiaries to, sell or otherwise make any Disposition of Collateral or enter into any agreement to make any sale or other Disposition of Collateral (in each case, including by way of any sale or other Disposition of any Guarantor), except, subject to <u>Article</u> <u>X</u> and so long as no Default shall have occurred and be continuing at the time of any action described below, or would result therefrom:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Dispositions of Collateral among the Credit Parties (including any Person that shall become a Credit Party simultaneous with such Disposition in the manner contemplated by <u>Section</u> <u>5.13</u>); <u>provided</u> that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) such Collateral remains at all times subject to a Lien with the same priority and level of perfection as was the case immediately prior to such Disposition (and otherwise subject only to Permitted Liens) in favor of the Collateral Agent for the benefit of the Secured Parties following such Disposition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) concurrently therewith, the Credit Parties shall execute any documents and take any actions reasonably required to create, grant, establish, preserve or perfect such Lien in accordance with the other provisions of this Agreement or the Security Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if requested by the Appropriate Party, concurrently therewith the Appropriate Party shall receive an opinion of counsel to the applicable Credit Party (x) in the case of Collateral that consists of Route Authorities, Slots and/or Gate Leaseholds, as to the creation and perfection under Article 9 of the UCC of the Lien of the security agreement or mortgage, as applicable, and subject to assumptions and qualifications (including as provided in the opinion(s) delivered on the Closing Date), and (y) in the case of any other Collateral, as to the creation and perfection of the Lien of such security agreement or mortgage, as applicable, in form and substance satisfactory to the Appropriate Party; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) concurrently with any Disposition of Collateral to any Person that shall become a Credit Party simultaneous with such Disposition in the manner contemplated by <u>Section</u> <u>5.13</u>, such Person shall have complied with the requirements of <u>Section</u> <u>5.13</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to the extent constituting a Disposition of Collateral, the incurrence of Liens that are permitted to be incurred pursuant to <u>Section</u> <u>6.02</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Dispositions of cash or Cash Equivalents in exchange for other cash or Cash Equivalents constituting Collateral and having reasonably equivalent value therefor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the abandonment or Disposition of assets no longer useful or used in the business; <u>provided</u> that such abandonment or Disposition is (A) in the ordinary course of business and (B) with respect to assets that are not material to the business of the Parent and the Subsidiaries taken as a whole;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) [reserved];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any Disposition of property resulting from an event of loss with respect to any aircraft, airframe, engine, spare engine or Spare Parts if the Credit Party is replacing such aircraft, airframe, engine, spare engine or Spare Parts in accordance with the terms of the Loan Documents; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any Disposition of Collateral permitted by any of the Security Documents. 

SECTION 6.05 <u>Restricted Payments</u>. The Parent will not, and will not permit any of its Subsidiaries to, declare or make, directly or indirectly, any Restricted Payment, or incur any obligation (contingent or otherwise) to do so, except, subject to additional restrictions set forth in <u>Article</u> <u>X</u>, so long as no Default shall have occurred and be continuing at the time of any action described below or would result therefrom: 

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) each Subsidiary may make Restricted Payments to the Parent and any other Person that owns an Equity Interest in such Subsidiary, ratably according to their respective holdings of such Equity Interests in respect of which such Restricted Payment is being made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Parent and each Subsidiary may declare and make dividend payments or other distributions payable solely in common Equity Interests of such Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Parent and each Subsidiary may purchase, redeem or otherwise acquire Equity Interests issued by it with the proceeds received from the substantially concurrent issue of new common Equity Interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Parent and each Subsidiary may pay withholding or similar taxes payable by any future, present or former employee, director or officer (or any spouses, former spouses, successors, executors, administrators, heirs, legatees or distributees of any of the foregoing) in connection with any repurchases of Equity Interests or the exercise of stock options;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the repurchase of Equity Interests or other securities deemed to occur upon (A) the exercise of stock options, warrants or other securities convertible or exchangeable into Equity Interests or any other securities, to the extent such Equity Interests or other securities represent a portion of the exercise price of those stock options, warrants or other securities convertible or exchangeable into Equity Interests or any other securities or (B) the withholding of a portion of Equity Interests issued to employees and other participants under an equity compensation program of the Parent or its Subsidiaries to cover withholding tax obligations of such persons in respect of such issuance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) payments of cash, dividends, distributions, advances, common stock or other Restricted Payments by the Parent or any of its Subsidiaries to allow the payment of cash in lieu of the issuance of fractional shares upon (A) the exercise of options or warrants, (B) the conversion or exchange of capital stock of any such Person or (C) the conversion or exchange of Indebtedness or hybrid securities into capital stock of any such Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the Parent may make cash payments in connection with any conversion or exchange of Convertible Indebtedness in amount equal to the sum of (i) the principal amount of such Convertible Indebtedness and (ii) the proceeds of any payments received by the Parent or any of its Subsidiaries pursuant to the exercise, settlement or termination of any related Permitted Bond Hedge Transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the Parent may make payments in connection with a Permitted Bond Hedge Transaction (i) by delivery of shares of the Parent's Equity Interests upon net share settlement thereof or (ii) by (A) set-off against the related Permitted Bond Hedge Transaction and (B) payment of an early termination amount thereof in common Equity Interests of the Parent upon any early termination thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Restricted Payments not to exceed the amount allowable pursuant to <u>Schedule</u> <u>6.05(i)</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) the Parent and each Subsidiary, to the extent they are an S corporation or other tax pass-through entity, may make distributions to the extent reasonably required to cover its owners' tax obligations in respect of the Parent's or Subsidiary's earnings.

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SECTION 6.06 <u>Investments</u>. The Parent will not, and will not permit any of its Subsidiaries to, make any Investments, except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Investments held by the Parent or such Subsidiary in the form of cash or Cash Equivalents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (i) Investments in Subsidiaries in existence on the Closing Date, (ii) other Investments in existence on the Closing Date and listed in Section I to <u>Schedule</u> <u>6.06</u> and (iii) other Investments described on Section II to <u>Schedule</u> <u>6.06</u>, and, in each case, any refinancing, refunding, renewal or extension of any such Investment that does not increase the amount thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) advances to officers, directors and employees of the Parent and its Subsidiaries in an aggregate amount not exceeding, at any time outstanding, an amount that is customary and consistent with past practice, for travel, entertainment, relocation and similar ordinary business purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) (x) Investments of the Parent in the Borrower or any other Credit Party, (y) Investments of any Subsidiary in the Parent or any other Credit Party and (z) Investments made between Subsidiaries that are not Credit Parties; <u>provided</u> that any such Investments made pursuant to this <u>clause</u> <u>(d)</u> in the form of intercompany indebtedness incurred by a Credit Party and owed to a Subsidiary that is not a Credit Party shall be subordinated to the Obligations and the Guaranteed Obligations on customary terms (it being understood and agreed that any Investments permitted under this <u>clause</u> <u>(d)</u> in the form of intercompany indebtedness that are not already subordinated on such terms as of the Closing Date shall not be required to be so subordinated until the date that is thirty (30) days after the Closing Date);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Investments consisting of extensions of credit in the nature of accounts receivable or notes receivable arising from the grant of trade credit in the ordinary course of business, and Investments received in satisfaction or partial satisfaction thereof from financially troubled account debtors to the extent reasonably necessary in order to prevent or limit loss;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Investments consisting of the indorsement by the Parent or any Subsidiary of negotiable instruments payable to such Person for deposit or collection in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) to the extent constituting an Investment, transactions otherwise permitted by <u>Sections</u> <u>6.03</u> and <u>6.05</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) any Investments received in compromise or resolution of (i) obligations of trade creditors or customers that were incurred in the ordinary course of business of the Parent or any of its Subsidiaries, including pursuant to any plan of reorganization or similar arrangement upon the bankruptcy or insolvency of any trade creditor or customer or (ii) litigation, arbitration or other disputes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Investments represented by obligations in respect of Swap Contracts that are not speculative in nature and that are entered into to hedge or mitigate risks to which the Parent or any of its Subsidiaries has (or will have) actual exposure (other than those in respect of the Equity Interests or Indebtedness of the Parent or any of its Subsidiaries);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) accounts receivable arising in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) any guarantee of Indebtedness of the Parent or any Subsidiary of the Parent, other than any guarantee of Indebtedness secured by Liens that would not be permitted under <u>Section</u> <u>6.02</u>;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Investments to the extent that payment for such Investment is made with the capital stock of the Parent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) Investments having an aggregate fair market value (measured on the date each such Investment was made and without giving effect to subsequent changes in value other than a reduction for all returns of principal in cash and capital dividends in cash), when taken together with all Investments made pursuant to this <u>clause</u> <u>(m)</u> that are at the time outstanding, not to exceed 30% of the total consolidated assets of the Parent and its Subsidiaries at the time of such Investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) Permitted Bond Hedge Transactions to the extent constituting Investments; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) Investments in Finance Entities in the ordinary course of business of the Parent and its Subsidiaries or that are otherwise customary for airlines based in the United States.

SECTION 6.07 <u>Transactions with Affiliates</u>. The Parent will not, and will not permit any of its Subsidiaries to, enter into any transaction of any kind involving aggregate payments or consideration in excess of $8,000,000 with any Affiliate of the Parent, whether or not in the ordinary course of business, other than on fair and reasonable terms substantially as favorable to the Parent or such Subsidiary as would be obtainable by the Parent or such Subsidiary at the time in a comparable arm's-length transaction with a Person other than an Affiliate, subject to delivery of (x) with respect to any transaction or series of related transactions involving aggregate consideration in excess of $25,000,000, a certificate of a Responsible Officer of the Parent certifying as to compliance with the foregoing and (y) with respect to any transaction or series of related transactions involving aggregate consideration in excess of $50,000,000, an opinion as to the fairness to the Parent or such Subsidiary of such transaction from a financial point of view issued by an accounting, appraisal or investment banking firm of national standing (<u>provided</u> that this clause (y) shall not apply to any transaction between or among any of the Parent or any of its Subsidiaries and any Finance Entities); <u>provided</u> that, subject to <u>Article</u> <u>X</u>, the foregoing restriction shall not apply to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) transactions between or among any of the Parent and any Wholly-Owned Subsidiaries,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Restricted Payments permitted by <u>Section</u> <u>6.05</u>,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Investments permitted by <u>Section</u> <u>6.06(b)</u>, or <u>(c)</u> or <u>(d)</u>,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) transactions described in <u>Schedule</u> <u>6.07</u>,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any employment agreement, confidentiality agreement, non-competition agreement, incentive plan, employee stock option agreement, long-term incentive plan, profit sharing plan, employee benefit plan, officer or director indemnification agreement or any similar arrangement entered into by the Parent or any of its Subsidiaries in the ordinary course of business and payments pursuant thereto, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) payment of fees, compensation, reimbursements of expenses (pursuant to indemnity arrangements or otherwise) and reasonable and customary indemnities provided to or on behalf of officers, directors, employees or consultants of the Parent or any of its Subsidiaries. 

SECTION 6.08 <u>[Reserved]</u>.

SECTION 6.09 <u>[Reserved]</u>.

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SECTION 6.10 <u>Changes in Nature of Business</u>. The Parent will not, and will not permit any of its Subsidiaries to, engage to any material extent in any business other than those businesses conducted by the Parent and its Subsidiaries on the date hereof or any business reasonably related or incidental thereto or representing a reasonable expansion thereof.

SECTION 6.11 <u>Sanctions; AML Laws</u>. The Parent will not, and will not permit any of its Subsidiaries to, directly or knowingly indirectly, use the proceeds of the Loans, or lend, contribute or otherwise make available such proceeds to any Subsidiary, joint venture partner or other Person to fund any activities or business of or with any Person in a manner that would result in a violation of Sanctions or AML Laws by any Person.

SECTION 6.12 <u>Amendments to Organizational Documents</u>. The Parent will not, and will not permit any of its Subsidiaries to amend, modify, or grant any waiver or release under or terminate in any manner, any Organizational Documents in any manner materially adverse to, or which would impair the rights of, the Lenders.

SECTION 6.13 <u>[Reserved]</u>

SECTION 6.14 <u>Prepayments of Junior Indebtedness</u>. The Parent will not, and will not permit any of its Subsidiaries to, make any principal payment on, or redeem, repurchase, defease or otherwise acquire or retire for value, in each case prior to any scheduled repayment, sinking fund payment or maturity, any Indebtedness secured by junior Liens on the Collateral or that is subordinated in right of payment to the Obligations, in each case other than in connection with a Permitted Refinancing of such Indebtedness.

SECTION 6.15 <u>Lobbying</u>. The Parent will not, and will not permit any of its Subsidiaries to, directly, or to the Parent or such Subsidiary's knowledge, indirectly, use the proceeds of the Loans, or lend, contribute, or otherwise make available such proceeds to any other Person (i) for publicity or propaganda purposes designated to support or defeat legislation pending before the U.S. Congress or (ii) to fund any activities that would constitute "lobbying activities" as defined under 2 U.S.C. § 1602. The Parent shall, and shall cause its subsidiaries to, comply with the provisions of 31 U.S.C. § 1352, as amended, and with the regulations at 31 C.F.R. Part 21.

SECTION 6.16 <u>Use of Proceeds</u>. The Parent will not, and will not permit any of its Subsidiaries to, use the proceeds of the Loans for any purpose other than for general corporate purposes and operating expenses (including payroll, rent, utilities, materials and supplies, repair and maintenance, and scheduled interest payments on other Indebtedness incurred before February 15, 2020), in each case in compliance with all Applicable Law to the extent permitted by the CARES Act; <u>provided</u>, <u>however,</u> that the proceeds of the Loans shall not be used for any non-operating expenses (including capital expenses, delinquent taxes and payments of principal on other Indebtedness), unless the Parent can demonstrate, to the satisfaction of the Initial Lender, that payment of any such non-operating expense is necessary to optimize the continued operations of the Parent's business and does not merely constitute a transfer of risk from an existing creditor or investor to the Federal taxpayer.

SECTION 6.17 <u>Financial Covenants</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Liquidity</u>. The Parent will not permit the aggregate amount of Liquidity at the close of any Business Day to be less than $20,000,000.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Collateral Coverage Ratio</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Within ten (10) Business Days after (x) the last day of March, June, September and December of each year (beginning with December 2020) or (y) any date on which an Appraisal is delivered pursuant to <u>clause</u> <u>(2)</u> of <u>Section</u> <u>5.16</u> (each such date in clauses (x) and (y), a "<u>CCR Reference Date</u>" and the tenth Business Day after a CCR Reference Date, a "<u>CCR Certificate Delivery Date</u>"), the Parent shall deliver to the Administrative Agent a certificate of a Responsible Officer of the Parent containing a calculation of the Collateral Coverage Ratio (a "<u>CCR Certificate</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If the Collateral Coverage Ratio with respect to any CCR Reference Date is less than 1.60 to 1.00, the Borrower shall, no later than ten (10) Business Days after the applicable CCR Certificate Delivery Date, (x) prepay any outstanding Loans such that following such prepayment, the Collateral Coverage Ratio with respect to such CCR Reference Date, recalculated by subtracting any such prepaid portion of the Loans, shall be no less than 1.60 to 1.00 and/or (y) designate Additional Collateral as additional Eligible Collateral and comply with <u>Sections 5.13</u> and <u>5.15</u>, collectively, in an amount such that following such designation, the Collateral Coverage Ratio with respect to such CCR Reference Date, recalculated by adding such Additional Collateral, shall be no less than 1.60 to 1.00.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) At the Parent's request, the Lien on any Collateral will be released; <u>provided</u>, in each case, that the following conditions are satisfied or waived: (a) no Event of Default shall have occurred and be continuing, (b) either (x) after giving effect to such release, the Collateral Coverage Ratio is not less than 2.00 to 1.00 (or in the case of a swap or exchange of existing Additional Collateral with new Additional Collateral, less than 1.60 to 1.00) or (y) the Parent shall prepay or cause to be prepaid the Loans and/or shall designate Eligible Collateral as Additional Collateral and comply with <u>Sections 5.13</u> and <u>5.15</u>, collectively, in an amount necessary to cause the Collateral Coverage Ratio to not be less than 2.00 to 1.00 (or in the case of a swap or exchange of existing Additional Collateral with new Additional Collateral, less than 1.60 to 1.00) and (c) the Parent shall deliver a certificate executed by a Responsible Officer demonstrating compliance with this <u>Section</u> <u>6.17(b)(iii)</u>.

ARTICLE VII

<u>EVENTS OF DEFAULT</u> 

SECTION 7.01 <u>Events of Default</u>. If any of the following events (each, an "<u>Event of Default</u>") shall occur:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Borrower shall fail to pay any principal of any Loan when and as the same shall become due and payable, whether at the due date thereof or at a date fixed for prepayment thereof or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Borrower shall fail to pay any interest on any Loan, or any fee or any other amount (other than an amount referred to in <u>clause</u> <u>(a)</u> of this Section) payable under this Agreement or under any other Loan Document, when and as the same shall become due and payable, and such failure shall continue unremedied for a period of two (2) or more Business Days;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any representation or warranty made or deemed made by or on behalf of any Credit Party, including those made prior to the Closing Date, in or in connection with this Agreement, the Loan Application Form or any other Loan Document or any amendment or modification hereof or thereof, or any waiver hereunder or thereunder, or in any report, certificate, financial statement or other document furnished pursuant to or in connection with this Agreement, the Loan Application Form or any other Loan Document or any amendment or modification hereof or thereof, or any waiver hereunder or thereunder, shall prove to have been incorrect in any material respect (or, in the case of any such representation or warranty under this Agreement, the Loan Application Form or any other Loan Document already qualified by materiality, such representation or warranty shall prove to have been incorrect) when made or deemed made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any Credit Party shall fail to observe or perform any covenant, condition or agreement contained in <u>Section</u> <u>5.03(a)</u>, <u>5.04</u> (with respect to the Borrower's existence), <u>Section</u> <u>5.19(b)</u> or in <u>Article</u> <u>VI</u> or <u>Article</u> <u>X</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any Credit Party shall fail to observe or perform any covenant, condition or agreement contained in this Agreement or any other Loan Document (other than those specified in <u>clause</u> <u>(a)</u>, <u>(b)</u> or <u>(d)</u> of this Section) and such failure shall continue unremedied for a period of thirty (30) or more days after notice thereof by the Administrative Agent or the Initial Lender to the Parent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) (i) Any Credit Party or any Subsidiary thereof shall fail to make any payment when due (whether by scheduled maturity, required prepayment, acceleration, demand, or otherwise) in respect of any Material Indebtedness (other than Indebtedness under this Agreement) and such failure shall continue after the applicable grace period, if any, specified in the agreement or instrument governing such Material Indebtedness; or (ii) any Credit Party or any Subsidiary thereof shall fail to observe or perform any other agreement or condition relating to any such Indebtedness or contained in any instrument or agreement evidencing, securing or relating thereto, or any other event occurs, the effect of which default or other event results in the holder or holders or beneficiary or beneficiaries of such Indebtedness (or a trustee or agent on behalf of such holder or holders or beneficiary or beneficiaries) causing such Indebtedness to become due or to be repurchased, prepaid, defeased or redeemed (automatically or otherwise), or causing an offer to repurchase, prepay, defease or redeem such Indebtedness to be made, prior to its stated maturity; <u>provided</u> that this <u>clause</u> <u>(f)(ii)</u> shall not apply to secured Indebtedness that becomes due as a result of the voluntary sale or transfer (or disposition of property as a result of a casualty or condemnation event) of the property or assets securing such Indebtedness, if such sale or transfer is permitted hereunder and under the documents providing for such Indebtedness and such Indebtedness is repaid when required under the documents providing for such Indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) an involuntary proceeding shall be commenced or an involuntary petition shall be filed seeking (i) liquidation, reorganization or other relief in respect of any Credit Party or any Material Subsidiary thereof or its debts, or of a substantial part of its assets, under any Debtor Relief Law now or hereafter in effect or (ii) the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for any Credit Party or any Material Subsidiary thereof or for a substantial part of its assets, and, in any such case, such proceeding or petition shall continue undismissed for a period of sixty (60) or more days or an order or decree approving or ordering any of the foregoing shall be entered;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) any Credit Party or any Material Subsidiary thereof shall (i) voluntarily commence any proceeding or file any petition seeking liquidation, reorganization or other relief under any Debtor Relief Law now or hereafter in effect, (ii) consent to the institution of, or fail to contest in a timely and appropriate manner, any proceeding or petition described in <u>clause</u> <u>(g)</u> of this Section, (iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for the Parent or any of its Subsidiaries or for a substantial part of its assets, (iv) file an answer admitting the material allegations of a petition filed against it in any such proceeding, (v) make a general assignment for the benefit of creditors or (vi) take any action for the purpose of effecting any of the foregoing;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any Credit Party or any Material Subsidiary thereof shall become unable, admit in writing its inability or fail generally to pay its debts as they become due;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) there is entered against any Credit Party or any Material Subsidiary thereof (i) a final judgment or order for the payment of money in an aggregate amount (as to all such judgments and orders) exceeding $12,000,000 (to the extent not covered by independent third-party insurance as to which the insurer has been notified of such judgment or order and has not denied or failed to acknowledge coverage), or (ii) a non-monetary final judgment or order that, either individually or in the aggregate, has or could reasonably be expected to have a Material Adverse Effect and, in either case, (A) enforcement proceedings are commenced by any creditor upon such judgment or order, or (B) there is a period of thirty (30) consecutive days during which a stay of enforcement of such judgment, by reason of a pending appeal or otherwise, is not in effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) an ERISA Event occurs with respect to a Pension Plan or Multiemployer Plan that has resulted or could reasonably be expected to result in liability of any Credit Party under Title IV of ERISA to the Pension Plan, Multiemployer Plan or the PBGC that, either individually or in the aggregate, has or could reasonably be expected to have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) [reserved];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) any material provision of any Loan Document, at any time after its execution and delivery and for any reason other than as expressly permitted hereunder or thereunder or satisfaction in full of all Obligations, ceases to be in full force and effect; or any Credit Party or any other Person who is a party to any Loan Document contests in writing the validity or enforceability of any provision of any Loan Document; or any Credit Party denies in writing that it has any or further liability or obligation under any Loan Document, or purports in writing to revoke, terminate or rescind any Loan Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) any Lien purported to be created under any Security Document shall cease to be, or shall be asserted in writing by any Credit Party not to be, a legal, valid and perfected Lien on any material portion of the Collateral (individually or in the aggregate), with the priority required by the applicable Security Documents, except (i) as a result of the sale or other Disposition of the applicable Collateral to a Person that is not a Credit Party in a transaction not prohibited under the Loan Documents or (ii) as a result of either Agent's failure to maintain possession of any stock certificates, promissory notes or other instruments delivered to it under the Security Documents or (iii) as a result of acts or omissions with respect to possessory collateral held by the Collateral Agent pursuant to this Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) any Guarantee of any Obligations by any Credit Party under any Loan Document shall cease to be in full force in effect (other than in accordance with the terms of the Loan Documents),

then, and in every such event (other than an event described in <u>clause (g)</u> or <u>(h)</u> of this Section), and at any time thereafter during the continuance of such event, the Initial Lender may, and the Administrative Agent may, and at the request of the Required Lenders or the Initial Lender shall, by notice to the Borrower, take any or all of the following actions, at the same or different times:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) declare the Loans then outstanding to be due and payable in whole (or in part, in which case any principal not so declared to be due and payable may thereafter be declared to be due and payable), and thereupon the principal of the Loans so declared to be due and payable, together with accrued interest thereon and all fees and other Obligations of the Credit Parties accrued hereunder, shall become due and payable immediately, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrower and the other Credit Parties; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) exercise on behalf of itself and the Lenders all rights and remedies available to it and the Lenders under the Loan Documents and Applicable Law;

<u>provided</u> that, in case of any event described in <u>clause</u> <u>(g)</u> or <u>(h)</u> of this Section, the principal of the Loans then outstanding, together with accrued interest thereon and all fees and other Obligations accrued hereunder, shall automatically become due and payable, in each case without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Credit Parties.

SECTION 7.02 <u>Application of Payments</u>. Notwithstanding anything herein to the contrary, following the occurrence and during the continuance of an Event of Default, and notice thereof to the Initial Lender and the Administrative Agent by the Borrower or the Required Lenders, all payments received on account of the Obligations shall be applied by the Administrative Agent as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>first</u>, to payment of that portion of the Obligations constituting fees, indemnities, expenses and other amounts (including fees and disbursements and other charges of counsel payable under <u>Section</u> <u>11.03</u> and amounts payable under an Administrative Agency Fee Letter (if any)) payable to the Administrative Agent and the Collateral Agent in their respective capacities as such;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>second</u>, to payment of that portion of the Obligations constituting fees, indemnities and other amounts (other than principal and interest) payable to the Lenders (including fees and disbursements and other charges of counsel payable under <u>Section</u> <u>11.03</u>) arising under the Loan Documents, ratably among them in proportion to the respective amounts described in this <u>clause</u> <u>(ii)</u> payable to them;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>third</u>, to payment of that portion of the Obligations constituting accrued and unpaid interest on the Loans, ratably among the Lenders in proportion to the respective amounts described in this <u>clause</u> <u>(iii)</u> payable to them;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>fourth</u>, to payment of that portion of the Obligations constituting unpaid principal of the Loans ratably among the Lenders in proportion to the respective amounts described in this <u>clause</u> <u>(iv)</u> payable to them;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>fifth</u>, to the payment in full of all other Obligations, in each case ratably among the Administrative Agent and the Lenders based upon the respective aggregate amounts of all such Obligations owing to them in accordance with the respective amounts thereof then due and payable; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) <u>finally</u>, the balance, if any, after all Obligations have been indefeasibly paid in full, to the Borrower or as otherwise required by Law.

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ARTICLE VIII

<u>AGENCY</u> 

SECTION 8.01 <u>Appointment and Authority</u>. Each Lender hereby irrevocably appoints The Bank of New York Mellon to act on its behalf as the Administrative Agent and as the Collateral Agent hereunder and under the other Loan Documents and authorizes the Agents to take such actions on its behalf and to exercise such powers as are delegated to such Agent by the terms of the Loan Documents, together with such actions and powers as are reasonably incidental or related thereto; provided that notwithstanding anything in this <u>Article</u> <u>VIII</u> or this Agreement to the contrary, the terms and conditions of the relationship between the Initial Lender and the Agents shall be governed by a separate agreement between the Initial Lender and the Agents. The Borrower and the Guarantors acknowledge and agree that the Agents are Agents of the Lenders and not of the Borrower or the Guarantors. In connection with an assignment of the Loans by the Initial Lender, upon the Administrative Agent's request, the Borrower and the Agents shall enter into an Administrative Agency Fee Letter. The provisions of this Article are solely for the benefit of the Agents and the Lenders, and the Borrower shall not have rights as a third-party beneficiary of any of such provisions. Without limiting the generality of the foregoing, the Agents are hereby expressly authorized to (i) execute any and all documents (including releases) with respect to the Collateral and the rights of the Secured Parties with respect thereto, as contemplated by and in accordance with the provisions of this Agreement and the other Loan Documents and (ii) negotiate, enforce or settle any claim, action or proceeding affecting the Lenders in their capacity as such, at the direction of the Required Lenders, which negotiation, enforcement or settlement will be binding upon each Lender.

SECTION 8.02 <u>Collateral Matters</u>. Each of the Lenders hereby irrevocably appoints and authorizes the Collateral Agent to act as the agent of such Lender for purposes of acquiring, holding and enforcing any and all Liens on Collateral granted by any of the Credit Parties to secure any of the Obligations, together with such powers and discretion as are reasonably incidental thereto and to enter into and perform the other Loan Documents.

SECTION 8.03 <u>Removal or Resignation of Administrative Agent</u>. While the Initial Lender is a Lender, the Administrative Agent may be removed or give notice of its resignation subject to any conditions as separately agreed between the Initial Lender and the Administrative Agent. Any such resignation as Administrative Agent pursuant to this <u>Section</u> <u>8.03</u> shall also constitute its resignation as the Collateral Agent; <u>provided</u> that in the case of any collateral security held by the Collateral Agent on behalf of the Lenders under any of the Loan Documents, the retiring or removed Collateral Agent shall continue to hold such collateral security until such time as a successor Collateral Agent is appointed. Upon such removal or receipt of any such notice of resignation, the Initial Lender shall have the right to appoint a successor. After the Initial Lender is no longer a Lender, either Agent may resign at any time by notifying the Lenders and the Borrower in writing, and either Agent may be removed at any time with or without cause by an instrument or concurrent instruments in writing delivered to the Borrower and such Agent and signed by the Required Lenders. Upon any such resignation or removal, the Required Lenders shall have the right, with the consent of the Borrower (which consent shall not be required during the continuance of an Event of Default), to appoint a successor. If no successor shall have been so appointed by the Required Lenders (with the consent of the Borrower (which consent shall not be required during the continuance of an Event of Default)) and shall have accepted such appointment within 30 days after (i) the retiring Agent gives notice of its resignation or (ii) the Required Lenders deliver removal instructions, then the retiring or removed Agent may, on behalf of the Lenders (with the consent of the Borrower (which consent shall not be required during the continuance of an Event of Default)), appoint a successor Agent which shall be a bank with an office in New York, New York, or an Affiliate of any such bank. If no successor Agent has been appointed pursuant to the immediately preceding

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sentence, such Agent's resignation or removal shall become effective and the Required Lenders shall thereafter perform all the duties of such Agent hereunder and/or under any other Loan Document until such time, if any, as the Required Lenders (with the consent of the Borrower (which consent shall not be required during the continuance of an Event of Default)) appoint a successor Administrative Agent and/or Collateral Agent, as the case may be. Upon the acceptance of its appointment as Agent hereunder by a successor, such successor shall succeed to and become vested with all the rights, powers, privileges and duties of its predecessor Agent, and its predecessor Agent shall be discharged from its duties and obligations hereunder. The fees payable by the Borrower to a successor Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrower and such successor. After an Agent's resignation hereunder, the provisions of this Article and <u>Section</u> <u>9.03</u> shall continue in effect for the benefit of such retiring Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while acting as Agent.

SECTION 8.04 <u>Exculpatory Provisions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Agents shall not have any duties or obligations except those expressly set forth herein and in the other Loan Documents or as separately agreed between the Initial Lender and the Agents, and its duties hereunder shall be administrative in nature. Without limiting the generality of the foregoing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) neither Agent shall be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing, except that The Bank of New York Mellon shall always have a fiduciary duty to Treasury while serving as its Agent in accordance with the provisions of the separate writing between The Bank of New York Mellon and Treasury;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) neither Agent shall have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby or by the other Loan Documents that such Agent is required to exercise as directed in writing by the Required Lenders (or such other number or percentage of the Lenders as shall be expressly provided for herein or in the other Loan Documents); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) except as expressly set forth herein and in the other Loan Documents, neither Agent shall have any duty to disclose, nor shall it be liable for the failure to disclose, any information relating to the Borrower or any of the Subsidiaries that is communicated to or obtained by the bank serving as Administrative Agent and/or Collateral Agent or any of its Affiliates in any capacity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Neither Agent shall be required to expend or risk its own funds or otherwise incur liability in the performance of any of its duties hereunder or under any other Loan Document or in the exercise of any of its rights or powers. Notwithstanding anything in any Loan Document to the contrary, prior to taking any action under this Agreement or any other Loan Document, each Agent shall be entitled to indemnification satisfactory to it in its sole discretion against all losses and expenses in connection with taking such action. Neither Agent shall be liable for any action taken or not taken by it with the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary under the circumstances as provided in <u>Sections</u> <u>7.01</u> and <u>11.02</u>) or in the absence of its own gross negligence or willful misconduct as determined by the final non-appealable judgment of a court of competent jurisdiction. Notwithstanding the foregoing, no action nor any omission to act, taken by either Agent at the direction of the Required Lenders (or such other number of percentage of Lenders as shall be expressly provided for herein or in the other Loan Documents) shall constitute gross negligence or willful misconduct. Neither Agent shall be deemed to have knowledge of any Default unless and until written notice thereof, conspicuously labeled as a "notice of default" and specifically describing such Default, is given to an Agent Responsible Officer by the Borrower or a Lender.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Neither Agent shall be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with this Agreement or any other Loan Document, (ii) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any Default, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement, instrument or document, or (v) the satisfaction of any condition set forth in <u>Article</u> <u>IV</u> or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In no event shall either Agent be responsible or liable for any failure or delay in the performance of its obligations hereunder or under any other Loan Document arising out of or caused by, directly or indirectly, forces beyond its control, including, without limitation, strikes, work stoppages, epidemics, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications or computer (software and hardware) services (it being understood that such Agent shall use reasonable efforts which are consistent with accepted practices in the banking industry to resume performance as soon as practicable under the circumstances).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Each Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing believed by it in good faith to be genuine and to have been signed or sent by the proper Person. Each Agent may also rely upon any statement made to it orally or by telephone and believed by it in good faith to have been made by the proper Person, and shall not incur any liability for relying thereon. Delivery of reports, information and documents to an Agent is for informational purposes only and an Agent's receipt of the foregoing will not constitute actual or constructive knowledge or notice of any information contained therein or determinable from information contained therein, including the Borrower's compliance with any of its covenants hereunder. Each Agent may consult with legal counsel (who may be counsel for the Borrower), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in reliance on the advice of any such counsel, accountants or experts. Any funds held by an Agent shall, unless otherwise agreed in writing with the Borrower, be held uninvested in a non-interest bearing account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Neither Agent shall have any obligation to calculate or confirm the calculation of any financial covenant contained herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Notwithstanding anything to the contrary in any Loan Document, neither Agent shall be responsible for the existence, genuineness or value of any of the Collateral; for filing any financing or continuation statements or recording any documents or instruments in any public office or otherwise perfecting or maintaining the perfection of any security interest in the Collateral (except, in the case of possessory Collateral, for the Collateral Agent maintaining possession of any such Collateral received by it in accordance with the terms of the Loan Documents); for the validity, perfection, priority or enforceability of the Liens in any of the Collateral; for the validity or sufficiency of the Collateral or any agreement or assignment contained therein; for the validity of the title of any grantor to the Collateral; for insuring the Collateral; or for the payment of taxes, charges or assessments on the Collateral. The Collateral Agent agrees that it will check any possessory Collateral received by it against any itemized list in the Pledge and Security Agreement of Collateral to be delivered to it in accordance with the Pledge and Security Agreement.

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SECTION 8.05 <u>Reliance by Agents</u>. Each Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, opinion, consent, statement, instrument, document or other writing believed by it in good faith to be genuine and to have been signed or sent by the proper Person. Each Agent may also rely upon any statement made to it orally or by telephone and believed by it in good faith to have been made by the proper Person, and shall not incur any liability for relying thereon. Delivery of reports, information and documents to an Agent is for informational purposes only and an Agent's receipt of the foregoing will not constitute actual or constructive knowledge or notice of any information contained therein or determinable from information contained therein, including the Borrower's compliance with any of its covenants hereunder. Each Agent may consult with legal counsel (who may be counsel for the Borrower), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts.

SECTION 8.06 <u>Delegation of Duties</u>. Each Agent may perform any and all its duties and exercise its rights and powers by or through any one or more sub-agents or attorneys appointed by it and will not be responsible for the misconduct or negligence of any agent appointed with due care. Each Agent and any such sub-agent may perform any and all its duties and exercise its rights and powers by or through their respective Related Parties.

SECTION 8.07 <u>Non-Reliance on Agents and Other Lenders</u>. Each Lender (other than the Initial Lender) acknowledges that it has, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each Lender (other than the Initial Lender) also acknowledges that it will, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Loan Document or any related agreement or any document furnished hereunder or thereunder.

SECTION 8.08 <u>Administrative Agent May File Proofs of Claim</u>. In case of the pendency of any proceeding under any Debtor Relief Law or any other judicial proceeding relative to any Credit Party, the Administrative Agent (irrespective of whether the principal of any Loan shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether the Administrative Agent shall have made any demand on the Borrower) shall be entitled and empowered (but not obligated) by intervention in such proceeding or otherwise:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans and all other Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the Lenders and the Agents (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders and the Agents and their respective agents and counsel and all other amounts due the Lenders and the Agents under <u>Section</u> <u>11.03</u>) allowed in such judicial proceeding; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender to make such payments to the Administrative Agent and, in the event that the Administrative Agent shall consent to the making of such payments directly to the Lenders, to pay to the Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the Agents and their respective agents and

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counsel, and any other amounts due the Agents under the Loan Documents. Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or consent to or accept or adopt on behalf of any Lender any plan of reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of any Lender or to authorize the Administrative Agent to vote in respect of the claim of any Lender in any such proceeding.

ARTICLE IX

<u>GUARANTEE</u> 

SECTION 9.01 <u>Guarantee of the Obligations</u>. Each Guarantor jointly and severally hereby irrevocably and unconditionally guarantees to the Secured Parties, the due and punctual payment in full and performance of all Obligations (or such lesser amount as agreed by the Required Lenders in their sole discretion with respect to Obligations owed to the Lenders) when the same shall become due or required to be performed, whether at stated maturity, by required prepayment, declaration, acceleration, performance, demand or otherwise (including amounts that would become and any performance that would have been required to be taken due but for the operation of the automatic stay under Section 362(a) of the Bankruptcy Code, 11 U.S.C. § 362(a)) (collectively, the "<u>Guaranteed Obligations</u>").

SECTION 9.02 <u>Payment or Performance by a Guarantor</u>. Each Guarantor hereby jointly and severally agrees, in furtherance of the foregoing and the other terms of this <u>Article</u> <u>IX</u> and not in limitation of any other right which the Secured Parties may have at law or in equity against any Guarantor by virtue hereof, that upon the failure of the Borrower to pay or perform any of the Guaranteed Obligations when and as the same shall become due or required to be performed, whether at stated maturity, by required prepayment, declaration, acceleration, demand or otherwise (including amounts that would become due but for the operation of the automatic stay under Section 362(a) of the Bankruptcy Code, 11 U.S.C. § 362(a)), such Guarantor will pay, or cause to be paid, in cash, or perform, or cause to be performed, to the Secured Parties an amount equal to the sum of the unpaid principal amount of all Guaranteed Obligations then due as aforesaid, accrued and unpaid interest on such Guaranteed Obligations (including interest which, but for the Borrower's becoming the subject of a case under the Bankruptcy Code, would have accrued on such Guaranteed Obligations, whether or not a claim is allowed against the Borrower for such interest in the related bankruptcy case) and all other Guaranteed Obligations then owed or required to be performed to the Secured Parties as aforesaid.

SECTION 9.03 <u>Liability of Guarantors Absolute</u>. Each Guarantor agrees that its obligations hereunder are irrevocable, absolute, independent and unconditional and shall not be affected by any circumstance which constitutes a legal or equitable discharge of a guarantor or surety other than payment and performance in full of the Guaranteed Obligations. In furtherance of the foregoing and without limiting the generality thereof, each Guarantor agrees as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) this Guarantee is a guarantee of payment and performance when due and not merely of collection;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) either Agent and any of the other Secured Parties may enforce this Guarantee upon the occurrence of an Event of Default notwithstanding the existence of any dispute between the Borrower and the Secured Parties with respect to the existence of such Event of Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a separate action or actions may be brought and prosecuted against such Guarantor whether or not any action is brought against the Borrower or any other Guarantors and whether or not Borrower or such Guarantors are joined in any such action or actions;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) payment or performance by any Guarantor of a portion, but not all, of the Guaranteed Obligations shall in no way limit, affect, modify or abridge any other Guarantor's liability for any portion of the Guaranteed Obligations which has not been paid or performed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Required Lenders, upon such terms as they deem appropriate, without notice or demand and without affecting the validity or enforceability hereof or giving rise to any reduction, limitation, impairment, discharge or termination of any Guarantor's liability hereunder, from time to time may (i) renew, extend, accelerate, increase the rate of interest on, or otherwise change the time, place, manner or terms of payment or performance of the Guaranteed Obligations; (ii) settle, compromise, release or discharge, or accept or refuse any offer of performance with respect to, or substitutions for, the Guaranteed Obligations or subordinate the payment of the same to the payment of any other obligations; (iii) release, surrender, exchange, substitute, compromise, settle, rescind, waive, alter, subordinate or modify, with or without consideration, any security for payment or performance of the Guaranteed Obligations, any other guarantees of the Guaranteed Obligations, or any other obligation of any Person (including any other Guarantor) with respect to the Guaranteed Obligations; and (iv) enforce its rights and remedies even though such action may operate to impair or extinguish any right of reimbursement or subrogation or other right or remedy of any Guarantor against the Borrower or any security for the Guaranteed Obligations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) this Guarantee and the obligations of each Guarantor hereunder shall be legal, valid and enforceable and shall not be subject to any reduction, limitation, impairment, discharge or termination for any reason (other than payment or performance in full of the Guaranteed Obligations), including any claim of waiver, release, surrender, alteration or compromise, and shall not be subject to any defense or set-off, counterclaim, recoupment or termination whatsoever by reason of the invalidity, illegality or unenforceability of any of the Guaranteed Obligations, any impossibility in the performance of any of the Guaranteed Obligations, or otherwise. Without limiting the generality of the foregoing, except for the payment and performance in full of the Guaranteed Obligations and to the fullest extent permitted by Applicable Law, the obligations of each Guarantor hereunder shall not be discharged or impaired or otherwise affected by: (i) any failure, delay or omission to assert or enforce or agreement or election not to assert or enforce, or the stay or enjoining, by order of court, by operation of law or otherwise, of the exercise or enforcement of, any claim or demand or any right, power or remedy with respect to the Guaranteed Obligations, or with respect to any security for the payment and performance of the Guaranteed Obligations; (ii) any rescission, waiver, amendment or modification of, or any consent to departure from, any of the terms or provisions hereof or any other Loan Document; (iii) the Guaranteed Obligations, or any agreement relating thereto, at any time being found to be illegal, invalid or unenforceable in any respect; (iv) the Lender's consent to the change, reorganization or termination of the corporate structure or existence of the Borrower or any of its Subsidiaries and to any corresponding restructuring of the Guaranteed Obligations; (v) the release of, or any impairment of or failure to perfect or continue perfection of or protect a security interest in, any collateral which secures any of the Guaranteed Obligations; (vi) any defenses, set-offs or counterclaims which the Borrower or any Guarantor may allege or assert against either Agent or the Lenders in respect of the Guaranteed Obligations, including failure of consideration, lack of authority, validity or enforceability, breach of warranty, payment, statute of frauds, statute of limitations, accord and satisfaction and usury; (vii) any change in the corporate existence, structure or ownership of any Credit Party, or any insolvency, bankruptcy, reorganization, examinership or other similar proceeding affecting any Credit Party or its assets or any resulting release or discharge of any of the Guaranteed Obligations; (viii) the fact that any Person that, pursuant to the Loan Documents, was required to become a party hereto may not have executed or is not effectually bound by this Agreement, whether or not this fact is known to the Secured Parties; (ix) any action permitted or authorized hereunder; (x) any other circumstance, or any existence of or reliance on any representation by the Agents, any Secured Party or any other Person, that might otherwise constitute a defense to, or a legal or equitable discharge of, the Borrower, any Guarantor or any other guarantor or surety; and (xi) any other event or circumstance that might in any manner vary the risk of any Guarantor as an obligor in respect of the Guaranteed Obligations.

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SECTION 9.04 <u>Waivers by Guarantors</u>. Each Guarantor hereby waives, for the benefit of the Lender: (a) any right to require the Lender, as a condition of payment or performance by such Guarantor, to (i) proceed against Borrower, any Guarantor or any other Person; (ii) proceed against or exhaust any security in favor of the Lender; or (iii) pursue any other remedy in the power of the Agents or Secured Parties whatsoever or (b) presentment to, demand for payment or performance from and protest to the Borrower or any Guarantor or notice of acceptance; and (c) any defenses or benefits that may be derived from or afforded by law which limit the liability of or exonerate guarantors or sureties, or which may conflict with the terms hereof. The Agents and the other Secured Parties may, at their election, foreclose on any security held by one or more of them by one or more judicial or nonjudicial sales, accept an assignment of any such security in lieu of foreclosure or exercise any other right or remedy available to them against the Borrower or any other Credit Party without affecting or impairing in any way the liability of any Guarantor hereunder except to the extent the Guaranteed Obligations have been paid in full. To the fullest extent permitted by Applicable Law, each Credit Party waives any defense arising out of any such election even though such election operates, pursuant to Applicable Law, to impair or to extinguish any right of reimbursement or subrogation or other right or remedy of such Credit Party against the Borrower or any other Credit Party, as the case may be, or any security.

SECTION 9.05 <u>Guarantors</u><u>'</u> <u>Rights of Subrogation, Contribution, Etc</u>. Until the Guaranteed Obligations shall have been paid in full, each Guarantor hereby waives any claim, right or remedy, direct or indirect, that such Guarantor now has or may hereafter have against the Borrower or any other Guarantor or any of its assets in connection with this Guarantee or the performance by such Guarantor of its obligations hereunder, including without limitation (a) any right of subrogation, reimbursement or indemnification that such Guarantor now has or may hereafter have against the Borrower with respect to the Guaranteed Obligations, (b) any right to enforce, or to participate in, any claim, right or remedy that the Agents or the Secured Parties now has or may hereafter have against the Borrower, and (c) any benefit of, and any right to participate in, any collateral or security now or hereafter held by the Agents or the Secured Parties. In addition, until the Guaranteed Obligations shall have been paid in full, each Guarantor shall withhold exercise of any right of contribution such Guarantor may have against any other guarantor (including any other Guarantor) of the Guaranteed Obligations. If any amount shall be paid to any Guarantor on account of any such subrogation, reimbursement, indemnification or contribution rights at any time when all Guaranteed Obligations shall not have been finally and paid in full, such amount shall be held in trust for the Secured Parties and shall forthwith be paid over to the Secured Parties to be credited and applied against the Guaranteed Obligations, whether matured or unmatured, in accordance with the terms hereof.

SECTION 9.06 <u>Subordination</u>. Any Indebtedness of the Borrower or any Guarantor now or hereafter and all rights of indemnity, contribution or subrogation under Applicable Law or otherwise, held by any Guarantor (the "<u>Obligee Guarantor</u>") are hereby subordinated in right of payment or performance to the Guaranteed Obligations until the Guaranteed Obligations is paid and performed in full. Any amount in respect of such indebtedness or rights collected or received by the Obligee Guarantor after an Event of Default has occurred and is continuing shall be held in trust for the Secured Parties and shall forthwith be paid over to the Secured Parties to be credited and applied against the Guaranteed Obligations but without affecting, impairing or limiting in any manner the liability of the Obligee Guarantor under any other provision hereof.

SECTION 9.07 <u>Continuing Guarantee</u>. This Guarantee is a continuing guarantee and shall remain in effect until all of the Guaranteed Obligations shall have been paid and performed in full.

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Each Guarantor hereby irrevocably waives any right to revoke this Guarantee as to future transactions giving rise to any Guaranteed Obligations.

SECTION 9.08 <u>Financial Condition of the Borrower</u>. The Loans may be made to the Borrower without notice to or authorization from any Guarantor regardless of the financial or other condition of the Borrower at the time of such grant. Each Guarantor has adequate means to obtain information from the Borrower on a continuing basis concerning the financial condition of the Borrower and its ability to perform its obligations under the Loan Documents, and each Guarantor assumes the responsibility for being and keeping informed of the financial condition of the Borrower and of all circumstances bearing upon the risk of nonpayment of the Guaranteed Obligations.

SECTION 9.09 <u>Reinstatement</u>. In the event that all or any portion of the Guaranteed Obligations are paid by the Borrower or any Guarantor, the obligations of any other Guarantor hereunder shall continue and remain in full force and effect or be reinstated, as the case may be, in the event that all or any part of such payment(s) are rescinded or recovered directly or indirectly from the Secured Parties as a preference, fraudulent transfer or otherwise must be so recovered or returned, and any such payments and amounts which are so rescinded, recovered or returned shall constitute Guaranteed Obligations for all purposes hereunder.

SECTION 9.10 <u>Discharge of Guarantees</u>. If, in compliance with the terms and provisions of the Loan Documents, (x) all of the Equity Interests of any Guarantor that is a Subsidiary of the Parent or any of its successors in interest hereunder shall be sold or otherwise disposed of (including by merger or consolidation) to any Person (other than to the Parent or to any other Subsidiary of the Parent), the Guarantee of such Guarantor or such successor in interest, as the case may be, hereunder shall automatically be discharged and released without any further action by any beneficiary or any other Person effective as of the time of such asset sale or (y) a Guarantor becomes an Excluded Subsidiary (other than as a result of a Guarantor becoming a non-Wholly Owned Subsidiary), the Borrower may request the release of the Guarantee of such Guarantor, whereupon the Guarantee of such Guarantor shall be discharged and released.

ARTICLE X

<u>CARES ACT REQUIREMENTS</u> 

Notwithstanding anything in this Agreement to the contrary, the Credit Parties, on behalf of themselves and their Affiliates, represent, warrant, and agree with the Lenders that:

SECTION 10.01 <u>CARES Act Compliance</u>. Each Credit Party and its Subsidiaries are in compliance, and will at all times comply, with all applicable requirements under Title IV of the CARES Act, including any applicable requirements pertaining to the Borrower's eligibility to receive the Loans. The Parent, the Borrower and their Subsidiaries will provide any information requested by the Initial Lender or Agents to assess the Borrower's compliance with applicable requirements under Title IV of the CARES Act, its obligations under this <u>Article</u> <u>X</u> or its eligibility to receive the Loans under the CARES Act. The Borrower is not a "covered entity" as defined in Section 4019 of the CARES Act.

SECTION 10.02 <u>Dividends and Buybacks</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Until the date that is twelve (12) months after the date on which the Loans are no longer outstanding, neither any Borrower Eligible Business nor any of its Affiliates (other than an Affiliate that is a natural person) shall, in any transaction, purchase an equity security of any Borrower Eligible Business or of any direct or indirect parent company of a Borrower Eligible Business or of any Subsidiary of the Parent that, in each case, is listed on a national securities exchange, except to the extent required under a contractual obligation in effect as of the date of enactment of the CARES Act.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Until the date that is twelve (12) months after the date on which the Loans are no longer outstanding, no Borrower Eligible Business shall pay dividends, or make any other capital distributions, with respect to the common stock of any Borrower Eligible Business, except that an S corporation or other tax pass-through entity that is a Borrower Eligible Business may make distributions to the extent reasonably required to cover its owners' tax obligations in respect of the Borrower Eligible Business's earnings.

SECTION 10.03 <u>Maintenance of Employment Levels</u>. Until September 30, 2020, each Borrower Eligible Business shall maintain its employment levels as of March 24, 2020, to the extent practicable, and in any case shall not reduce its employment levels by more than ten percent (10%) from the levels on March 24, 2020.

SECTION 10.04 <u>United States Business</u>. Each Borrower Eligible Business is created or organized in the United States or under the laws of the United States and has significant operations in and a majority of its employees based in the United States.

SECTION 10.05 <u>Limitations on Certain Compensation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Beginning on the Closing Date, and ending on the date that is one (1) year after the date on which the Loans are no longer outstanding, each Borrower Eligible Business and its Affiliates shall not pay any of each Borrower Eligible Business's Corporate Officers or Employees whose Total Compensation exceeded $425,000 in calendar year 2019 or the Subsequent Reference Period (other than an Employee whose compensation is determined through an existing collective bargaining agreement entered into before March 1, 2020):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Total Compensation which exceeds, during any twelve (12) consecutive months of the period beginning on the Closing Date and ending on the date that is one (1) year after the date on which the Loans are no longer outstanding, the Total Compensation the Corporate Officer or Employee received in calendar year 2019 or the Subsequent Reference Period; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Severance Pay or Other Benefits in connection with a termination of employment with any Borrower Eligible Business which exceed twice the maximum Total Compensation received by such Corporate Officer or Employee in calendar year 2019 or the Subsequent Reference Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Beginning on the Closing Date, and ending on the date that is one (1) year after the date on which the Loans are no longer outstanding, each Borrower Eligible Business and its Affiliates shall not pay any of each Borrower Eligible Business's Corporate Officers or Employees whose Total Compensation exceeded $3,000,000 in calendar year 2019 or the Subsequent Reference Period, Total Compensation which exceeds, during any twelve (12) consecutive months of such period, in excess of the sum of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) $3,000,000; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Fifty percent (50%) of the excess over $3,000,000 of the Total Compensation received by such Corporate Officer or Employee in calendar year 2019 or the Subsequent Reference Period.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For purposes of determining applicable amounts under this Section with respect to any Corporate Officer or Employee who was employed by any Borrower Eligible Business or any of their Affiliates for less than all of calendar year 2019, the amount of Total Compensation in calendar year 2019 shall mean such Corporate Officer's or Employee's Total Compensation on an annualized basis.

SECTION 10.06 <u>Continuation of Certain Air Service</u>. Until March 1, 2022, each Borrower Eligible Business shall comply with any applicable requirement issued by the Secretary of Transportation under section 4005 of the CARES Act to maintain scheduled air transportation service to any point served by any Borrower Eligible Business before March 1, 2020. The Borrower acknowledges that neither Treasury, nor any other actor, department, or agency of the Federal Government, shall condition the issuance of any Loan under this Agreement on the Borrower's implementation of measures to enter into negotiations with the certified bargaining representative of a craft or class of employees of the Borrower Eligible Business under the Railway Labor Act (45 U.S.C. 151 et seq.) or the National Labor Relations Act (29 U.S.C. 151 et seq.), regarding pay or other terms and conditions of employment.

SECTION 10.07 <u>Treasury Access</u>. The Borrower Eligible Business and its Affiliates will provide Treasury, the Treasury Inspector General, the Special Inspector General for Pandemic Recovery, and such other entities as authorized by Treasury timely and unrestricted access to all documents, papers, or other records, including electronic records, of the Borrower related to the Loans, to enable Treasury, the Treasury Inspector General, and the Special Inspector General for Pandemic Recovery to make audits, examinations, and otherwise evaluate the Borrower's compliance with the terms of this Agreement. This right also includes timely and reasonable access to the Borrower's and its Affiliates' personnel for the purpose of interview and discussion related to such documents.

SECTION 10.08 <u>Additional Defined Terms</u>. As used in this Article, the following terms have the meanings specified below:

"<u>Borrower Eligible Business</u>" means, collectively, the Borrower, its Affiliates that are Eligible Businesses, and their respective heirs, executors, administrators, successors, and assigns. Notwithstanding anything to the contrary herein, for purposes of this Article X, an "Affiliate" of the Borrower shall not include any Person(s) that become affiliated with the Borrower solely by virtue of the consummation of a Change of Control transaction resulting in repayment of the Loans in full.

"<u>Corporate Officer</u>" means, with respect to any Borrower Eligible Business, its president; any vice president in charge of a principal business unit, division, or function (such as sales, administration or finance); any other officer who performs a policy-making function; or any other person who performs similar policy making functions for the Borrower Eligible Business. Executive officers of subsidiaries or parents of any Borrower Eligible Business may be deemed Corporate Officers of the Borrower Eligible Business if they perform such policy-making functions for the Borrower Eligible Business.

"<u>Employee</u>" has the meaning given to the term in section 2 of the National Labor Relations Act (29 U.S.C. 152 and includes any individual employed by an employer subject to the Railway Labor Act (45 U.S.C. 151 et seq.), and for the avoidance of doubt includes all individuals who are employed by the Borrower Eligible Business who are not Corporate Officers.

"<u>Severance Pay or Other Benefits</u>" means any severance payment or other similar benefits, including cash payments, health care benefits, perquisites, the enhancement or acceleration of the payment or vesting of any payment or benefit or any other in-kind benefit payable (whether in lump sum or over time, including after March 24, 2022) by any Borrower Eligible Business or its Affiliates to a Corporate Officer or Employee in connection with any termination of such Corporate Officer's or

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Employee's employment (including, without limitation, resignation, severance, retirement, or constructive termination), which shall be determined and calculated in respect of any Employee or Corporate Officer of the Borrower Eligible Business in the manner prescribed in 17 C.F.R. 229.402(j) (without regard to its limitation to the five (5) most highly compensated executives and using the actual date of termination of employment rather than the last business day of the Borrower Eligible Business's last completed fiscal year as the trigger event).

"<u>Subsequent Reference Period</u>" means (i) for a Corporate Officer or Employee whose employment with the Borrower Eligible Business or an Affiliate started during 2019 or later, the twelve (12) month period starting from the end of the month in which the officer or employee commenced employment, if such officer's or employee's total compensation exceeds $425,000 (or $3,000,000) during such period and (ii) for a Corporate Officer or Employee whose Total Compensation first exceeds $425,000 during a 12-month period ending after 2019, the 12-month period starting from the end of the month in which the Corporate Officer's or Employee's Total Compensation first exceeded $425,000 (or $3,000,000).

"<u>Total Compensation</u>" means compensation including salary, wages, bonuses, awards of stock, and any other financial benefits provided by the Borrower Eligible Business or an Affiliate, as applicable, which shall be determined and calculated for the 2019 calendar year or any applicable twelve (12)-month period in respect of any Employee or Corporate Officer of the Borrower Eligible Business in the manner prescribed under paragraph e.5 of the award term in 2 C.F.R. part 170, App. A, but excluding any Severance Pay or Other Benefits in connection with a termination of employment.

ARTICLE XI

<u>MISCELLANEOUS</u> 

SECTION 11.01 <u>Notices; Public Information</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Notices Generally</u>. Except in the case of notices and other communications expressly permitted to be given by telephone (and except as provided in <u>paragraph</u> <u>(b)</u> below), all notices and other communications provided for herein shall be in writing in English and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by facsimile or email as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if to a Credit Party, to it at 8909 Purdue Road, Suite 300, Indianapolis, IN 46268, Attention of Tara Kamm, Managing Director (Telephone No. [\*\*\*]; Email: [\*\*\*]);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if to the Administrative Agent or the Collateral Agent, to The Bank of New York Mellon at 240 Greenwich Street, 7th Floor, New York, NY 10286, Attention of Joanna Shapiro, Managing Director (Telephone No. 212-815-4949; Email: joanna.g.shapiro@bnymellon.com with a copy to UST.Cares.Program@bnymellon.com);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if to Treasury, as the Initial Lender, to The Department of the Treasury of the United States at 1500 Pennsylvania Avenue, NW, Washington, D.C. 20220, Attention of Assistant General Counsel (Banking and Finance) (Telephone No. 202-622-0283; Email: eric.froman@treasury.gov); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) if to any other Lender, to it at its address (or facsimile number or email address) set forth in its Administrative Questionnaire.

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Notices sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received. Notices delivered through electronic communications, to the extent provided in <u>paragraph</u> <u>(b)</u> below, shall be effective as provided in said <u>paragraph</u> <u>(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Electronic Communications</u>. Notices and other communications to the Lenders hereunder may be delivered or furnished by electronic communication (including e-mail, FpML, and Internet or intranet websites) pursuant to procedures approved by the Lenders and reasonably acceptable to the Administrative Agent; <u>provided</u> that the foregoing shall not apply to notices to any Lender pursuant to <u>Article</u> <u>II</u> if such Lender has notified the Administrative Agent that it is incapable of receiving notices under such Article by electronic communication. The Administrative Agent, the Collateral Agent, the Parent or the Borrower may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it; <u>provided</u> that approval of such procedures may be limited to particular notices or communications.

Unless the Administrative Agent, the Collateral Agent or a Lender otherwise prescribes, (i) notices and other communications sent to an e-mail address shall be deemed received upon the sender's receipt of an acknowledgement from the intended recipient (such as by return e-mail or other written acknowledgement), and (ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient, at its e-mail address as described in the foregoing clause (i), of notification that such notice or communication is available and identifying the website address therefor; provided that, for both clauses (i) and (ii) above, if such notice, email or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next Business Day for the recipient.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Change of Address, etc</u>. Any party hereto may change its address or facsimile number for notices and other communications hereunder by notice to the other parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Platform</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Borrower and the Lenders agree that the Administrative Agent may, but shall not be obligated to, make the Communications (as defined below) available to the other Lenders by posting the Communications on the Platform.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Platform is provided "as is" and "as available." The Agent Parties (as defined below) do not warrant the adequacy of the Platform and expressly disclaim liability for errors or omissions in the Communications. No warranty of any kind, express, implied or statutory, including any warranty of merchantability, fitness for a particular purpose, non-infringement of third-party rights or freedom from viruses or other code defects, is made by any Agent Party in connection with the Communications or the Platform. In no event shall the Administrative Agent or any of its Related Parties (collectively, the "<u>Agent Parties</u>") have any liability to the Credit Parties, any Lender or any other Person or entity for damages of any kind, including direct or indirect, special, incidental or consequential damages, losses or expenses (whether in tort, contract or otherwise) arising out of the Borrower's or the Administrative Agent's transmission of communications through the Platform. "<u>Communications</u>" means, collectively, any notice, demand, communication, information, document or other material provided by or on behalf of the Credit Parties pursuant to any Loan Document or the transactions contemplated therein that is distributed to the Administrative Agent or any Lender by means of electronic communications pursuant to this Section, including through the Platform.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Public Information</u>. The Borrower hereby acknowledges that certain of the Lenders (each, a "<u>Public Lender</u>") may have personnel who do not wish to receive material non-public information with respect to the Borrower or its Affiliates, or the respective securities of any of the foregoing, and who may be engaged in investment and other market-related activities with respect to such Persons' securities. The Borrower hereby agrees that it will use commercially reasonable efforts to identify that portion of the materials and information provided by or on behalf of the Borrower hereunder and under the other Loan Documents (collectively, "<u>Borrower Materials</u>") that may be distributed to the Public Lenders and that (i) all such Borrower Materials shall be clearly and conspicuously marked "PUBLIC," which, at a minimum, shall mean that the word "PUBLIC" shall appear prominently on the first page thereof; (ii) by marking Borrower Materials "PUBLIC," the Borrower shall be deemed to have authorized the Administrative Agent and the Lenders to treat such Borrower Materials as not containing any material non-public information with respect to the Borrower or its securities for purposes of U.S. federal and state securities Laws (<u>provided</u>, <u>however</u>, that to the extent that such Borrower Materials constitute Information, they shall be subject to <u>Section</u> <u>11.12</u>); (iii) all Borrower Materials marked "PUBLIC" are permitted to be made available through a portion of the Platform designated "Public Side Information;" and (iv) the Administrative Agent shall be entitled to treat any Borrower Materials that are not marked "PUBLIC" as being suitable only for posting on a portion of the Platform not designated "Public Side Information". Each Public Lender will designate one or more representatives that shall be permitted to receive information that is not designated as being available for Public Lenders. Notwithstanding the foregoing, financial statements and related documentation, in each case, provided pursuant to <u>Section</u> <u>5.01(a)</u> or <u>5.01(b)</u> shall be deemed to be marked "PUBLIC", unless the Parent notifies the Administrative Agent promptly that any such document contains material non-public information.

SECTION 11.02 <u>Waivers; Amendments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>No Waiver; Remedies Cumulative; Enforcement</u>. No failure or delay by the Administrative Agent, the Collateral Agent or any Lender in exercising any right, remedy, power or privilege hereunder or under any other Loan Document shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, remedy, power or privilege, or any abandonment or discontinuance of steps to enforce such a right remedy, power or privilege, preclude any other or further exercise thereof or the exercise of any other right remedy, power or privilege. The rights, remedies, powers and privileges of the Administrative Agent, the Collateral Agent and the Lenders hereunder and under the Loan Documents are cumulative and are not exclusive of any rights, remedies, powers or privileges that any such Person would otherwise have.

Notwithstanding anything to the contrary contained herein or in any other Loan Document, the authority to enforce rights and remedies hereunder and under the other Loan Documents against the Credit Parties shall be vested exclusively in, and all actions and proceedings at law in connection with such enforcement shall be instituted and maintained exclusively by, (i) so long as the Initial Lender is a Lender, either the Initial Lender or, at the Initial's Lender's option, the Administrative Agent in accordance with <u>Section</u> <u>7.01</u> for the benefit of all the Lenders and (ii) if the Initial Lender is no longer a Lender, the Required Lenders or the Administrative Agent (acting at the direction of the Required Lenders) in accordance with <u>Section</u> <u>7.01</u> for the benefit of all the Lenders; <u>provided</u> that the foregoing shall not prohibit (i) the Administrative Agent from exercising on its own behalf the rights and remedies that inure to its benefit (solely in its capacities as Administrative Agent and as Collateral Agent) hereunder and under the other Loan Documents, (ii) any Lender from exercising setoff rights in accordance with <u>Section</u> <u>11.08</u> (subject to the terms of <u>Section</u> <u>2.13</u>) or (iii) any Lender from filing proofs of claim or appearing and filing pleadings on its own behalf during the pendency of a proceeding relative to a Credit Party under any Debtor Relief Law; <u>provided</u>, <u>further</u>, that if at any time there is no Person acting as Administrative Agent hereunder and under the other Loan Documents, then (x) the Required Lenders shall have the rights otherwise provided to the Administrative Agent pursuant to <u>Section</u> <u>7.01</u> and (y) in addition to the matters set forth in clauses (ii) and (iii) of the preceding proviso and subject to <u>Section</u> <u>2.13</u>, any Lender may, with the consent of the Required Lenders, enforce any rights or remedies available to it and as authorized by the Required Lenders.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Amendments, Etc.</u> Except as otherwise expressly set forth in this Agreement (including <u>Section</u> <u>2.10</u> and <u>Section</u> <u>8.01</u>), no amendment or waiver of any provision of this Agreement or any other Loan Document, and no consent to any departure by the Borrower therefrom, shall be effective unless in writing executed by the Borrower and the Required Lenders, and acknowledged by the Administrative Agent, or by the Borrower and the Administrative Agent with the consent of the Required Lenders, and each such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given; <u>provided</u> that no such amendment, waiver or consent shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) extend or increase any Commitment of any Lender without the written consent of such Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) reduce the principal of, or rate of interest specified herein on, any Loan, or any fees or other amounts payable hereunder or under any other Loan Document, without the written consent of each Lender directly and adversely affected thereby (<u>provided</u> that only the consent of the Required Lenders shall be necessary (x) to amend the definition of "Default Rate" or to waive the obligation of the Borrower to pay interest at the Default Rate or (y) to amend any financial covenant (or any defined term directly or indirectly used therein), even if the effect of such amendment would be to reduce the rate of interest on any Loan or other Obligation or to reduce any fee payable hereunder);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) postpone any date scheduled for any payment of principal of, or interest on, any Loan, or any fees or other amounts payable hereunder or under any other Loan Document, or reduce the amount of, waive or excuse any such payment, without the written consent of each Lender directly and adversely affected thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) change <u>Section</u> <u>2.12(b)</u> or <u>Section</u> <u>2.13</u> in a manner that would alter the pro rata sharing of payments required thereby without the written consent of each Lender directly and adversely affected thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) waive any condition set forth in <u>Section</u> <u>4.01</u> without the written consent of the Initial Lender; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) change any provision of this Section or the percentage in the definition of "Required Lenders" or any other provision hereof specifying the number or percentage of Lenders required to amend, waive or otherwise modify any rights hereunder or make any determination or grant any consent hereunder, without the written consent of each Lender;

<u>provided</u>, <u>further</u>, that no such amendment, waiver or consent shall amend, modify or otherwise affect the rights or duties hereunder or under any other Loan Document of either of the Agents, unless in writing executed by such Agent, in each case in addition to the Borrower and the Lenders required above.

In addition, notwithstanding anything in this Section to the contrary, (i) if the Borrower shall have identified an obvious error or any error or omission of a technical nature, in each case, in any provision of the Loan Documents, then, upon the delivery of a certificate of a Responsible Officer of the Borrower to the Administrative Agent identifying such error and directing the Administrative Agent to execute an amendment to correct such error, the Administrative Agent and the Borrower shall be permitted to amend such provision, and, in each case, such amendment shall become effective without

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any further action or consent of any other party to any Loan Document if the same is not objected to in writing by the Required Lenders to the Administrative Agent within ten (10) Business Days following receipt of notice thereof and (ii) that any Security Document may be amended, supplemented or otherwise modified with the consent of the applicable Grantor (as defined in the Pledge and Security Agreement) and the Administrative Agent to add assets (or categories of assets) to the Collateral covered by such Security Document, as contemplated by the definition of Additional Collateral, or to remove any assets or categories of assets (including after-acquired assets of that category) from the Collateral covered by such Security Document to the extent the release thereof is permitted by <u>Section</u> <u>6.17(b)(iii)</u>.

SECTION 11.03 <u>Expenses; Indemnity; Damage Waiver</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Costs and Expenses</u>. The Borrower shall pay (i) all reasonable out-of-pocket expenses incurred by the Initial Lender, the Administrative Agent, the Collateral Agent and their Affiliates (including the reasonable fees, charges and disbursements of any counsel for the Initial Lender, the Administrative Agent or the Collateral Agent), and shall pay all fees and time charges and disbursements for attorneys who may be employees of the Administrative Agent or the Collateral Agent, in connection with the preparation, negotiation, execution, delivery and administration of this Agreement, the Loan Documents, any other agreements or documents executed in connection herewith or therewith or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated), and (ii) all out-of-pocket expenses incurred by the Administrative Agent, the Collateral Agent or any Lender (including the fees, charges and disbursements of any counsel for the Administrative Agent, the Collateral Agent or any Lender), and shall pay all fees and time charges for attorneys who may be employees of the Administrative Agent, the Collateral Agent or any Lender, in connection with the enforcement or protection of its rights (A) in connection with this Agreement and the Loan Documents, any other agreements or documents executed in connection herewith or therewith, or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated) including its rights under this Section, or (B) in connection with the Loans made hereunder, including all such out-of-pocket expenses incurred during any workout, restructuring, negotiations or enforcement in respect of this Agreement, the Loan Documents and other agreements or documents executed in connection herewith or therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Indemnification by the Borrower</u>. The Borrower shall indemnify the Administrative Agent and Collateral Agent (and any sub-agents thereof) and each Lender, and each Related Party of any of the foregoing Persons (each such Person being called an "<u>Indemnitee</u>") against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities, obligations, penalties, fines, settlements, judgments, disbursements and related costs and related expenses (including the fees, charges and disbursements of any counsel for any Indemnitee), and shall indemnify and hold harmless each Indemnitee from all fees and time charges and disbursements for attorneys who may be employees of any Indemnitee, incurred by any Indemnitee or asserted against any Indemnitee by any Person (including the Parent) arising out of, in connection with, or as a result of (i) the execution or delivery of this Agreement, any other Loan Document or any agreement or instrument contemplated hereby or thereby, the performance by the parties hereto of their respective obligations hereunder or thereunder or the consummation of the transactions contemplated hereby or thereby, (ii) any Loan or the use or proposed use of the proceeds therefrom, (iii) any actual or alleged presence or release of Hazardous Materials on or from any property owned or operated by the Parent or any of its Subsidiaries, or any Environmental Liability related in any way to the Parent or any of its Subsidiaries, or (iv) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory, whether brought by a third party or by the Parent, and regardless of whether any Indemnitee is a party thereto; <u>provided</u> that such indemnity shall not, as to any Indemnitee other than the Initial Lender, be available to the extent that such losses, claims, damages, liabilities or related expenses are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee. This <u>paragraph</u> <u>(b)</u> shall not apply with respect to Taxes other than any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Reimbursement by Lenders</u>. To the extent that the Borrower for any reason fails to indefeasibly pay any amount required under <u>paragraph</u> <u>(a)</u> or <u>(b)</u> of this Section to be paid by it to the Administrative Agent or Collateral Agent (or any sub-agents thereof) or any Related Party of any of the foregoing, each Lender (other than the Initial Lender) severally agrees to pay to the Administrative Agent or Collateral Agent (or any such sub-agents) or such Related Party, as the case may be, such Lender's pro rata share (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought based on each Lender's Applicable Percentage at such time) of such unpaid amount (including any such unpaid amount in respect of a claim asserted by such Lender); <u>provided</u> that the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against the Administrative Agent or Collateral Agent (or any such sub-agents), or against any Related Party of any of the foregoing acting for the Administrative Agent or Collateral Agent (or any such sub-agents) in connection with such capacity. The obligations of the Lenders under this <u>paragraph</u> <u>(c)</u> are subject to the provisions of <u>Section</u> <u>2.12(e)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Waiver of Consequential Damages, Etc.</u> To the fullest extent permitted by Applicable Law, no Credit Party shall assert, and each hereby waives, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Loan Document or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, any Loan, or the use of the proceeds thereof. No Indemnitee referred to in <u>paragraph</u> <u>(b)</u> above shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed by it through telecommunications, electronic or other information transmission systems in connection with this Agreement or the other Loan Documents or the transactions contemplated hereby or thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Payments</u>. All amounts due under this Section shall be payable not later than five (5) days after demand therefor; <u>provided</u> that the terms of this Section shall not apply to the Initial Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Survival</u>. Each party's obligations under this Section shall survive the termination of the Loan Documents and payment of the obligations hereunder and the resignation or removal of the Administrative Agent or the Collateral Agent.

SECTION 11.04 <u>Successors and Assigns</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Successors and Assigns Generally</u>. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that the Borrower may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Administrative Agent and each Lender (and any other attempted assignment or transfer by any party hereto shall be null and void), and no Lender may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an assignee in accordance with the provisions of <u>paragraph</u> <u>(b)</u> of this Section, (ii) by way of participation in accordance with the provisions of <u>paragraph</u> <u>(d)</u> of this Section, or (iii) by way of pledge or assignment of a security interest subject to the restrictions of <u>paragraph</u> <u>(e)</u> of this Section. Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants to the extent provided in <u>paragraph</u> <u>(d)</u> of this Section and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Assignments by Lenders</u>. Any Lender may at any time assign to one or more Eligible Assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of the Loans at the time owing to it); <u>provided</u> that any such assignment by any Lender (other than the Initial Lender) shall be subject to the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Minimum Amounts</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) in the case of an assignment of the entire remaining amount of the assigning Lender's Loans at the time owing to it or contemporaneous assignments to and/or by related Approved Funds (determined after giving effect to such assignments) that equal at least the amount specified in <u>paragraph</u> <u>(b)(i)(B)</u> of this Section in the aggregate or in the case of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no minimum amount need be assigned; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) in any case not described in <u>paragraph</u> <u>(b)(i)(A)</u> of this Section, the principal outstanding balance of the Loans of the assigning Lender subject to each such assignment (determined as of the date the Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent or, if "<u>Trade Date</u>" is specified in the Assignment and Assumption, as of the Trade Date) shall not be less than $1,000,000, unless each of the Administrative Agent and, so long as no Default or Event of Default has occurred and is continuing, the Borrower otherwise consents (each such consent not to be unreasonably withheld or delayed).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Proportionate Amounts</u>. Each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender's rights and obligations under this Agreement with respect to the Loans assigned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Required Consents</u>. No consent shall be required for any assignment by the Initial Lender. The consent of the Borrower (such consent not to be unreasonably withheld, delayed or conditioned) shall be required for any assignment by any Lender other than the Initial Lender unless (x) a Default or Event of Default has occurred and is continuing at the time of such assignment, or (y) such assignment is to a Lender or an Affiliate of a Lender; <u>provided</u> that the Borrower shall be deemed to have consented to any such assignment unless it shall object thereto by written notice to the Administrative Agent within five (5) Business Days after having received notice thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Assignment and Assumption</u>. The parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption, together with a processing and recordation fee of $3,500; <u>provided</u> that the Administrative Agent may, in its sole discretion, elect to waive such processing and recordation fee in the case of any assignment. The assignee, if it is not a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>No Assignment to Certain Persons</u>. No such assignment shall be made to the Borrower or any of the Borrower's Affiliates or Subsidiaries.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) <u>No Assignment to Natural Persons</u>. No such assignment shall be made to a natural person (or a holding company, investment vehicle or trust for, or owned and operated for the primary benefit of, a natural person).

Subject to acceptance and recording thereof by the Administrative Agent pursuant to <u>paragraph</u> <u>(c)</u> of this Section, from and after the effective date specified in each Assignment and Assumption, the assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender's rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits of <u>Section</u> <u>11.03</u> with respect to facts and circumstances occurring prior to the effective date of such assignment. Any assignment or transfer by a Lender other than the Initial Lender of rights or obligations under this Agreement that does not comply with this paragraph shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with <u>paragraph</u> <u>(d)</u> of this Section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Register</u>. The Administrative Agent, acting solely for this purpose as an agent of the Borrower, shall maintain at one of its offices a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders, and the principal amounts (and stated interest) of the Loans owing to, each Lender pursuant to the terms hereof from time to time (the "<u>Register</u>"). The entries in the Register shall be conclusive absent manifest error, and the Borrower, the Administrative Agent, the Collateral Agent and the Lenders shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement. The Register shall be available for inspection by the Borrower and any Lender, at any reasonable time and from time to time upon reasonable prior notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Participations</u>. Any Lender may at any time, without the consent of, or notice to, the Borrower or the Administrative Agent, sell participations to any Person (other than a Competitor, a natural person, or a holding company, investment vehicle or trust for, or owned and operated for the primary benefit of, a natural person, or the Borrower or any of the Borrower's Affiliates or Subsidiaries) (each, a "<u>Participant</u>") in all or a portion of such Lender's rights and/or obligations under this Agreement (including all or a portion of the Loans owing to it); <u>provided</u> that (i) such Lender's obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations, and (iii) the Borrower, the Administrative Agent, the Collateral Agent and Lenders shall continue to deal solely and directly with such Lender in connection with such Lender's rights and obligations under this Agreement. For the avoidance of doubt, each Lender shall be responsible for the indemnity under <u>Section</u> <u>11.03(b)</u> with respect to any payments made by such Lender to its Participant(s).

Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver described in <u>Section</u> <u>11.02(b)(i)</u> through <u>(v)</u> that affects such Participant. The Borrower agrees that each Participant shall be entitled to the benefits of <u>Sections</u> <u>2.14</u>, <u>2.15</u> and <u>2.16</u> (subject to the requirements and limitations therein, including the requirements under <u>Section</u> <u>2.16(g)</u> (it being understood that the documentation required under <u>Section</u> <u>2.16(g)</u> shall be delivered to the participating Lender)) to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to <u>paragraph</u> <u>(b)</u> of this Section; <u>provided</u> that such Participant (A) agrees

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to be subject to the provisions of <u>Section</u> <u>2.19</u> as if it were an assignee under <u>paragraph</u> <u>(b)</u> of this Section; and (B) shall not be entitled to receive any greater payment under <u>Section</u> <u>2.15</u> or <u>2.16</u>, with respect to any participation, than its participating Lender would have been entitled to receive, except to the extent such entitlement to receive a greater payment results from a Change in Law that occurs after the Participant acquired the applicable participation. Each Lender that sells a participation agrees, at the Borrower's request and expense, to use reasonable efforts to cooperate with the Borrower to effectuate the provisions of <u>Section</u> <u>2.19(b)</u> with respect to any Participant. To the extent permitted by law, each Participant also shall be entitled to the benefits of <u>Section</u> <u>11.08</u> as though it were a Lender; provided that such Participant agrees to be subject to <u>Section</u> <u>2.13</u> as though it were a Lender. Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant's interest in the Loans or other obligations under the Loan Documents (the "<u>Participant Register</u>"); <u>provided</u> that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant's interest in any loans or its other obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such loan or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations. The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary. For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Certain Pledges</u>. Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank; <u>provided</u> that no such pledge or assignment shall release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

SECTION 11.05 <u>Survival</u>. All covenants, agreements, representations and warranties made by any Credit Party herein and in any Loan Document or other documents delivered in connection herewith or therewith or pursuant hereto or thereto shall be considered to have been relied upon by the other parties hereto and shall survive the execution and delivery hereof and thereof and the making of the Borrowings hereunder, regardless of any investigation made by any such other party or on its behalf and notwithstanding that the Administrative Agent, the Collateral Agent or any Lender may have had notice or knowledge of any Default at the time of any Borrowing, and shall continue in full force and effect as long as any Loan or any other Obligation hereunder shall remain unpaid or unsatisfied and so long as the Commitments have not expired or been terminated. The provisions of <u>Sections</u> <u>2.14</u>, <u>2.15</u>, <u>11.03</u>, <u>11.15</u> and <u>Article</u> <u>VIII</u> shall survive and remain in full force and effect regardless of the consummation of the transactions contemplated hereby, the payment in full of the Obligations, the expiration or termination of the Commitments or the termination of this Agreement or any provision hereof.

SECTION 11.06 <u>Counterparts; Integration; Effectiveness; Electronic Execution</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Counterparts; Integration; Effectiveness</u>. This Agreement may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Agreement and the other Loan Documents, constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof. Except as provided in <u>Section</u> <u>4.01</u>, this Agreement shall become effective when it shall have been executed by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof that, when taken together, bear the signatures of each of the other parties hereto. Delivery of an executed counterpart of a signature page of this Agreement by facsimile or in electronic (e.g., "pdf" or "tif") format shall be effective as delivery of a manually executed counterpart of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Electronic Execution</u>. The words "execution," "signed," "signature," and words of like import in this Agreement and in any Assignment and Assumption shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any Applicable Law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act. Notwithstanding anything herein to the contrary, delivery of an executed counterpart of a signature page of this Agreement by telecopy or other electronic means, or confirmation of the execution of this Agreement on behalf of a party by an email from an authorized signatory of such party shall be effective as delivery of a manually executed counterpart of this Agreement.

SECTION 11.07 <u>Severability</u>. If any provision of this Agreement or the other Loan Documents is held to be illegal, invalid or unenforceable, (a) the legality, validity and enforceability of the remaining provisions of this Agreement and the other Loan Documents shall not be affected or impaired thereby and (b) the parties shall endeavor in good faith negotiations to replace the illegal, invalid or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable provisions. The invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

SECTION 11.08 <u>Right of Setoff</u>. If an Event of Default shall have occurred and be continuing, each Lender, and each of their respective Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by Applicable Law, to set off and apply any and all deposits (general or special, time or demand, provisional or final, in whatever currency) at any time held, and other obligations (in whatever currency) at any time owing, by such Lender or any such Affiliate, to or for the credit or the account of the Borrower against any and all of the due and unpaid Obligations of the Borrower now or hereafter existing under this Agreement or any other Loan Document to such Lender or its respective Affiliates, irrespective of whether or not such Lender or Affiliate shall have made any demand under this Agreement or any other Loan Document and although such obligations of the Borrower may be contingent or unmatured or are owed to a branch office or Affiliate of such Lender different from the branch office or Affiliate holding such deposit or obligated on such indebtedness. The rights of each Lender and their respective Affiliates under this Section are in addition to other rights and remedies (including other rights of setoff) that such Lender or its respective Affiliates may have. Each Lender (other than the Initial Lender) agrees to notify the Borrower and the Administrative Agent promptly after any such setoff and application; <u>provided</u> that the failure to give such notice shall not affect the validity of such setoff and application.

SECTION 11.09 <u>Governing Law; Jurisdiction; Etc</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Governing Law</u>. This Agreement and the other Loan Documents will be governed by and construed in accordance with the federal law of the United States if and to the extent such law is applicable, and otherwise in accordance with the law of the State of New York applicable to contracts made and to be performed entirely within such State.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Jurisdiction and Venue</u>. Each of the Credit Parties and each Lender agrees (a) to submit to the exclusive jurisdiction and venue of the United States District Court for the District of Columbia for any civil action, suit or proceeding arising out of or relating to this Agreement, the Loan Documents, or the transactions contemplated hereby or thereby.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Service of Process</u>. Each party hereto irrevocably consents to service of process in the manner provided for notices in <u>Section</u> <u>11.01</u>. Nothing in this Agreement will affect the right of any party hereto to serve process in any other manner permitted by Applicable Law.

SECTION 11.10 <u>Waiver of Jury Trial</u>. To the extent permitted by Applicable Law, each Credit Party and each Lender hereby unconditionally waives trial by jury in any civil legal action or proceeding relating to this Agreement, the Loan Documents or the transactions contemplated hereby or thereby.

SECTION 11.11 <u>Headings</u>. Article and Section headings and the **Table of Contents** used herein are for convenience of reference only, are not part of this Agreement and shall not affect the construction of, or be taken into consideration in interpreting, this Agreement.

SECTION 11.12 <u>Treatment of Certain Information; Confidentiality</u>. Each of the Agents and the Lenders (other than the Initial Lender) agree to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its Affiliates and to its Related Parties (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential); (b) to the extent required or requested by any regulatory authority purporting to have jurisdiction over such Person or its Related Parties (including any self-regulatory authority, such as the National Association of Insurance Commissioners); (c) to the extent required by Applicable Laws or by any subpoena or similar legal process; (d) to any other party hereto; (e) in connection with the exercise of any remedies hereunder or under any other Loan Document or any action or proceeding relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder; (f) subject to an agreement containing provisions substantially the same as (or no less restrictive than) those of this Section, to (i) any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights and obligations under this Agreement, or (ii) any actual or prospective party (or its Related Parties) to any swap, derivative or other transaction under which payments are to be made by reference to the Borrower and its obligations, this Agreement or payments hereunder; <u>provided</u> that, in each case under this clause (f)(ii), such actual or prospective party is not a Competitor; (g) on a confidential basis to (i) any rating agency in connection with rating the Borrower or its Subsidiaries or the Loans or (ii) the CUSIP Service Bureau or any similar agency in connection with the issuance and monitoring of CUSIP numbers with respect to the Loans; (h) with the consent of the Borrower or (i) to the extent such Information (x) becomes publicly available other than as a result of a breach of this Section, or (y) becomes available to either Agent, any Lender or any of their respective Affiliates on a nonconfidential basis from a source other than the Borrower who did not acquire such information as a result of a breach of this Section.

For purposes of this Section, "<u>Information</u>" means all information received from the Parent or any of its Subsidiaries relating to the Parent or any of its Subsidiaries or any of their respective businesses, other than any such information that is available to the Administrative Agent or any Lender on a nonconfidential basis prior to disclosure by the Parent or any of its Subsidiaries; <u>provided</u> that, in the case of information received from the Parent or any of its Subsidiaries after the date hereof, such information is clearly identified at the time of delivery as confidential. Any Person required to maintain the confidentiality of Information as provided in this Section shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information.

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SECTION 11.13 <u>Money Laundering; Sanctions</u>. The Borrower shall provide to the Administrative Agent, the Collateral Agent, and the Lenders information and documentation that the Lenders may reasonably request that identifies the Borrower and its Affiliates, which information may include the name and address of the Borrower and its Affiliates and other information regarding beneficial ownership of the Borrower and its Affiliates that will allow the Lenders to ensure compliance with Sanctions and the AML Laws. For purposes of determining whether or not a representation with respect to any indirect ownership is true or a covenant is being complied with under this <u>Section</u> <u>11.13</u>, the Borrower shall not be required to make any investigation into (i) the ownership of publicly traded stock or other publicly traded securities or (ii) the ownership of assets by a collective investment fund that holds assets for employee benefit plans or retirement arrangements.

SECTION 11.14 <u>Interest Rate Limitation</u>. Notwithstanding anything herein to the contrary, if at any time the interest rate applicable to any Loan, together with all fees, charges and other amounts that are treated as interest on such Loan under Applicable Law (collectively, "<u>charges</u>"), shall exceed the maximum lawful rate (the "<u>Maximum Rate</u>") that may be contracted for, charged, taken, received or reserved by the Lender holding such Loan in accordance with Applicable Law, the rate of interest payable in respect of such Loan hereunder, together with all charges payable in respect thereof, shall be limited to the Maximum Rate. To the extent lawful, the interest and charges that would have been paid in respect of such Loan but were not paid as a result of the operation of this Section shall be cumulated and the interest and charges payable to such Lender in respect of other Loans or periods shall be increased (but not above the amount collectible at the Maximum Rate therefor) until such cumulated amount, together with interest thereon at the Federal Funds Effective Rate for each day to the date of repayment, shall have been received by such Lender. Any amount collected by such Lender that exceeds the maximum amount collectible at the Maximum Rate shall be applied to the reduction of the principal balance of such Loan or refunded to the Borrower so that at no time shall the interest and charges paid or payable in respect of such Loan exceed the maximum amount collectible at the Maximum Rate.

SECTION 11.15 <u>Payments Set Aside</u>. To the extent that any payment by or on behalf of the Borrower is made to the Administrative Agent or any Lender, or any Lender exercises its right of setoff, and such payment or the proceeds of such setoff or any part thereof is subsequently invalidated, declared to be fraudulent or preferential, set aside or required (including pursuant to any settlement entered into by the Administrative Agent or such Lender in its discretion) to be repaid to a trustee, receiver or any other party, in connection with any proceeding under any Debtor Relief Law or otherwise, then (a) to the extent of such recovery, the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such setoff had not occurred, and (b) each Lender (other than the Initial Lender) severally agrees to pay to the Administrative Agent upon demand its applicable share (without duplication) of any amount so recovered from or repaid by the Administrative Agent, plus interest thereon from the date of such demand to the date such payment is made at a rate per annum equal to the Federal Funds Effective Rate from time to time in effect.

SECTION 11.16 <u>No Advisory or Fiduciary Responsibility</u>. In connection with all aspects of each transaction contemplated hereby (including in connection with any amendment, waiver or other modification hereof or of any other Loan Document), the Borrower acknowledges and agrees, and acknowledges its Affiliates' understanding, that: (a) (i) no fiduciary, advisory or agency relationship between any Credit Party and any of their respective Subsidiaries and the Administrative Agent, the Collateral Agent or any Lender is intended to be or has been created in respect of the transactions contemplated hereby or by the other Loan Documents, irrespective of whether the Administrative Agent, the Collateral Agent, or any Lender has advised or is advising any Credit Party or any of their respective Subsidiaries on other matters, (ii) the lending and other services regarding this Agreement provided by the Administrative Agent, the Collateral Agent and the Lenders are arm's-length commercial transactions

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between Credit Parties and their Affiliates, on the one hand, and the Administrative Agent, the Collateral Agent and the Lenders, on the other hand, (iii) the Credit Parties have consulted their own legal, accounting, regulatory and tax advisors to the extent that they has deemed appropriate and (iv) the Credit Parties are capable of evaluating, and understands and accepts, the terms, risks and conditions of the transactions contemplated hereby and by the other Loan Documents; and (b) (i) the Administrative Agent, the Collateral Agent and the Lenders each is and has been acting solely as a principal and, except as expressly agreed in writing by the relevant parties, has not been, is not, and will not be acting as an advisor, agent or fiduciary for the Credit Parties or any of their respective Affiliates, or any other Person; (ii) none of the Administrative Agent, the Collateral Agent and the Lenders has any obligation to the Credit Parties or any of their respective Affiliates with respect to the transactions contemplated hereby except those obligations expressly set forth herein and in the other Loan Documents; and (iii) the Administrative Agent, the Collateral Agent and the Lenders and their respective Affiliates may be engaged, in a broad range of transactions that involve interests that differ from those of the Credit Parties and their respective Affiliates, and none of the Administrative Agent, the Collateral Agent and the Lenders has any obligation to disclose any of such interests to the Credit Parties or any of their respective Affiliates. To the fullest extent permitted by Law, the Credit Parties hereby waive and release any claims that they may have against any of the Administrative Agent, the Collateral Agent and the Lenders with respect to any breach or alleged breach of agency or fiduciary duty in connection with any aspect of any transaction contemplated hereby.

SECTION 11.17 <u>Acknowledgement and Consent to Bail-In of EEA Financial Institutions</u>. Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among the parties, each party hereto (including each Credit Party) acknowledges that any liability arising under a Loan Document of any Credit Party that is an Affected Financial Institution, to the extent such liability is unsecured, may be subject to the write-down and conversion powers of the applicable Resolution Authority, and agrees and consents to, and acknowledges and agrees to be bound by: (a) the application of any Write-Down and Conversion Powers by the applicable Resolution Authority to any such liabilities arising under any Loan Documents which may be payable to it by any Credit Party that is an Affected Financial Institution; and (b) the effects of any Bail-In Action on any such liability, including (i) a reduction in full or in part or cancellation of any such liability, (ii) a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such Affected Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under any Loan Document, or (iii) the variation of the terms of such liability in connection with the exercise of the write-down and conversion powers of the applicable Resolution Authority.

[Signature pages follow.]

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

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| | | |
|:---|:---|:---|
| REPUBLIC AIRWAYS INC. | REPUBLIC AIRWAYS INC. | REPUBLIC AIRWAYS INC. |
| By | /s/ Joseph P. Allman | /s/ Joseph P. Allman |
|  | Name: | Joseph P. Allman |
|  | Title: | SVP & CFO |

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[*Signature Page to Loan and Guarantee Agreement*]

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| | | |
|:---|:---|:---|
| REPUBLIC AIRWAYS HOLDINGS INC. | REPUBLIC AIRWAYS HOLDINGS INC. | REPUBLIC AIRWAYS HOLDINGS INC. |
| By | /s/ Joseph P. Allman | /s/ Joseph P. Allman |
|  | Name: | Joseph P. Allman |
|  | Title: | SVP & CFO |

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[*Signature Page to Loan and Guarantee Agreement*]

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| | | |
|:---|:---|:---|
|  THE BANK OF NEW YORK MELLON,<br>as Administrative Agent | THE BANK OF NEW YORK MELLON,<br>as Administrative Agent | THE BANK OF NEW YORK MELLON,<br>as Administrative Agent |
| By | /s/ Bret S. Derman | /s/ Bret S. Derman |
|  | Name: | Bret S. Derman |
|  | Title: | Vice President |
|  THE BANK OF NEW YORK MELLON,<br>as Collateral Agent | THE BANK OF NEW YORK MELLON,<br>as Collateral Agent | THE BANK OF NEW YORK MELLON,<br>as Collateral Agent |
| By | /s/ Bret S. Derman | /s/ Bret S. Derman |
|  | Name: | Bret S. Derman |
|  | Title: | Vice President |

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[*Signature Page to Loan and Guarantee Agreement*]

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| | | |
|:---|:---|:---|
|  UNITED STATES DEPARTMENT OF THE TREASURY, as the Initial Lender | UNITED STATES DEPARTMENT OF THE TREASURY, as the Initial Lender | UNITED STATES DEPARTMENT OF THE TREASURY, as the Initial Lender |
| By | /s/ Brent J. McIntosh | /s/ Brent J. McIntosh |
|  | Name: | Brent J. McIntosh |
|  | Title: | Under Secretary for International Affairs |

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[*Signature Page to Loan and Guarantee Agreement*]

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**<u>Schedule 3.05</u>**

**Financial Statements** 

[See attached]

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[\*\*\*]

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**<u>Schedule 3.17</u>**

**Subsidiaries** 

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Legal Name** | **Jurisdiction** | **Type of Entity** | **Equity**<br> **Holder** | **Ownership**<br>**Interest** | **Excluded**<br>**Subsidiary** |
|  Republic Airways Inc. | Indiana, United States | Corporation | Republic Airways Holdings Inc. | 100% | No |
|  Lynx Aviation Inc. | Indiana, United States | Corporation | Republic Airways Holdings Inc. | 100% | Yes |
|  Leadership in Flight Training Academy LLC | Indiana, United States | Limited Liability Company | Lynx Aviation Inc. | 100% | Yes |
|  LIFT Aircraft LLC | Indiana, United States | Limited Liability Company | Lynx Aviation Inc. | 100% | Yes |
|  LIFT Maintenance LLC | Indiana, United States | Limited Liability Company | Lynx Aviation Inc. | 100% | Yes |
|  Republic Airline Inc. (Panama) | Republic of Panama | Corporation | Republic Airways Holdings Inc. | 100% | Yes |
|  Carmel Finance 2015 LLC | Delaware, United States | Limited Liability Company | Republic Airways Inc. | 100% | Yes |
|  Republic Airways Services, Inc. | New York, United States | Corporation | Republic Airways Holdings Inc. | 100% | Yes |

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**<u>Schedule 4.02</u>**

**Supplemental Collateral** 

[\*\*\*]<sup>1</sup>

[\*\*\*] [\*\*\*] [\*\*\*] [\*\*\*] [\*\*\*] <br> [\*\*\*] [\*\*\*] [\*\*\*] [\*\*\*] [\*\*\*]

[\*\*\*]<sup>2</sup>

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |

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<sup>1</sup> [\*\*\*]

<sup>2</sup> [\*\*\*]

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**<u>Schedule 5.14</u>**

**Post-Closing Matters** 

Post-closing confirmatory UCC and FAA searches and delivery of file stamped UCC financing statement copies and FAA recordations.

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**<u>Schedule 6.05(i)</u>**

**Restricted Payments** 

Restricted Payments not to exceed $[\*\*\*] per annum.

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**<u>Schedule 6.06</u>**

**Investments** 

[\*\*\*]

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**<u>Schedule 6.07</u>**

**Affiliate Transactions** 

Republic Airways Inc. regularly transacts with related parties on an arm's-length basis in the ordinary course of business, including its three partner airlines and an original equipment manufacturer, which are shareholders of Republic Airways Holdings Inc. Related party transactions are primarily derived from the delivery of regional jet service under its capacity purchase relationships, certain aircraft purchase leasing commitments, and aircraft maintenance activities. Such transactions account for nearly 100% of Republic Airways Inc.'s revenue.

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EXHIBIT A

[FORM OF ASSIGNMENT AND ASSUMPTION]

This Assignment and Assumption (the "<u>Assignment and Assumption</u>") is dated as of the Effective Date set forth below and is entered into by and between the Assignor (as defined below) and the Assignee (as defined below). Capitalized terms used but not defined herein shall have the meanings given to them in the Loan and Guarantee Agreement identified below (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the "<u>Loan and Guarantee Agreement</u>"), receipt of a copy of which is hereby acknowledged by the Assignee. The Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed to and incorporated herein by reference and made a part of this Assignment and Assumption as if set forth herein in full.

For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, subject to and in accordance with the Standard Terms and Conditions and the Loan and Guarantee Agreement, as of the Effective Date inserted by the Administrative Agent as contemplated below (i) all of the Assignor's rights and obligations in its capacity as a Lender under the Loan and Guarantee Agreement, any other Loan Documents and any other documents or instruments delivered pursuant thereto to the extent related to the amount and percentage interest identified below of all of such outstanding rights and obligations of the Assignor under the respective facilities identified below (including any guarantees included in such facilities), and (ii) to the extent permitted to be assigned under Applicable Law, all claims, suits, causes of action and any other right of the Assignor (in its capacity as a Lender) against any Person, whether known or unknown, arising under or in connection with the Loan and Guarantee Agreement, any other Loan Document and any other documents or instruments delivered pursuant thereto or the loan transactions governed thereby or in any way based on or related to any of the foregoing, including, but not limited to, contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity related to the rights and obligations sold and assigned pursuant to clause (i) above (the rights and obligations sold and assigned by the Assignor to the Assignee pursuant to clauses (i) and (ii) above being referred to herein collectively as the "<u>Assigned Interest</u>"). Such sale and assignment is without recourse to the Assignor and, except as expressly provided in this Assignment and Assumption, without representation or warranty by the Assignor.

1. Assignor:   _________________________________________ (the " <u>Assignor</u> ")

2. Assignee:   _________________________________________ (the " <u>Assignee</u> ")

**[Assignee is an [Affiliate][Approved Fund] of [*identify Lender*]** 

3. Borrower:    Republic Airways Inc.

4. Administrative Agent: The Bank of New York Mellon, as the administrative agent under the Loan and
Guarantee Agreement

5. Loan and Guarantee Agreement: The Loan and Guarantee Agreement dated as of ______________, 2020 among Republic
Airways Inc., the Lenders parties thereto, The Bank of New York Mellon, as Administrative Agent, and the other parties thereto

6. Assigned Interest[s]:

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| | | | | |
|:---|:---|:---|:---|:---|
| Assignor | Assignee | [Loans<br>Assigned<sup>1</sup>]<sup>2</sup> | Aggregate<br>Amount of Loans<br>for all Lenders<sup>3</sup> | Percentage<br>Assigned of<br>Loans<sup>4</sup> |
|  |  |  | $| $nan% |
|  |  |  | $| $nan% |
|  |  |  | $| $nan% |

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[7. Trade Date: ______________]<sup>5</sup>

[Page break]

<sup>1</sup> Specify which tranche of Loans are being assigned.

<sup>2</sup> Note to Form: To include if loan has multiple tranches that are not fungible (i.e., different maturities).

<sup>3</sup> Amount to be adjusted by the counterparties to take into account any payments or prepayments made between the Trade Date and the Effective Date. 

<sup>4</sup> Set forth, to at least 9 decimals, as a percentage of the Loans of all Lenders thereunder. 

<sup>5</sup> To be completed if the Assignor(s) and the Assignee(s) intend that the minimum assignment amount is to be determined as of the Trade Date. 

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Effective Date: _____________ ___, 20___ [TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]

The terms set forth in this Assignment and Assumption are hereby agreed to:

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| | |
|:---|:---|
| ASSIGNOR | ASSIGNOR |
| [NAME OF ASSIGNOR] | [NAME OF ASSIGNOR] |
| By: |  |
|  | Title: |
| ASSIGNEE | ASSIGNEE |
| [NAME OF ASSIGNEE] | [NAME OF ASSIGNEE] |
| By: |  |
|  | Title: |

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| |
|:---|
| Accepted: |
|  THE BANK OF NEW YORK MELLON, as Administrative Agent |
| By: |
| Title: |
| [Consented to: |
| REPUBLIC AIRWAYS INC. |
| By: |
| Title:]<sup>6</sup> |

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<sup>6</sup> To be included only if the consent of the Borrower is required for such Assignment and Assumption by the terms of the Loan and Guarantee Agreement.

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ANNEX 1

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Representations and Warranties</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 <u>Assignor</u>. The Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken all action necessary, including to obtain such consent, if any, as required under the Loan and Guarantee Agreement, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any statements, warranties or representations made in or in connection with the Loan and Guarantee Agreement or any other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the financial condition of the Borrower, any of its Subsidiaries or Affiliates or any other Person obligated in respect of the Loan and Guarantee Agreement or any other Loan Document, or (iv) the performance or observance by the Borrower, any of its Subsidiaries or Affiliates or any other Person of any of their respective obligations under any Loan Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 <u>Assignee</u>. The Assignee (a) represents and warrants that (i) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby and to become a Lender under the Loan and Guarantee Agreement, (ii) it meets all the requirements to be an assignee under Section 11.04 of the Loan and Guarantee Agreement (subject to such consents, if any, as may be required thereunder), (iii) from and after the Effective Date, it shall be bound by the provisions of the Loan and Guarantee Agreement and each other Loan Document as a Lender, and, to the extent of the Assigned Interest, shall have the obligations of a Lender thereunder, (iv) it is sophisticated with respect to decisions to acquire assets of the type represented by the Assigned Interest and either it, or the Person exercising discretion in making its decision to acquire the Assigned Interest, is experienced in acquiring assets of such type, (v) it has received a copy of the Loan and Guarantee Agreement, and has received or has been afforded the opportunity to receive copies of the most recent financial statements delivered pursuant to Section 5.01 thereof, as applicable, and such other documents and information as it deems appropriate to make its own credit analysis and decision to enter into this Assignment and Assumption and to purchase the Assigned Interest, (vi) it has, independently and without reliance upon the Administrative Agent, the Collateral Agent, the Assignor or any other Lender and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Assignment and Assumption and to purchase the Assigned Interest, (vii) if it is not already a Lender under the Loan and Guarantee Agreement, attached to the Assignment and Assumption is an Administrative Questionnaire and the applicable "know your customer" documentation requested by the Administrative Agent and as required by the Loan and Guarantee Agreement and (viii) the Administrative Agent has received a processing and recordation fee of $3,500 as of the Effective Date (to the extent required by the Loan and Guarantee Agreement, unless waived), (b) agrees that (i) it will, independently and without reliance on the Administrative Agent, the Collateral Agent, the Assignor or any other Lender or Agent, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents, and (ii) it will perform in accordance with their terms all of the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender, including its obligations pursuant to Section 2.16 of the Loan and Guarantee Agreement and (c) appoints and authorizes the Administrative Agent and the Collateral Agent to take such action as agent on its behalf and to exercise such powers under the Loan and Guarantee Agreement and the other Loan Documents as are delegated to such agent by the terms thereof, together with such actions and powers as are reasonably incidental or related thereto.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Payments</u>. From and after the Effective Date, the Administrative Agent shall make all payments in respect of the Assigned Interest (including payments of principal, interest, fees and other amounts) to the Assignor for amounts that have accrued to but excluding the Effective Date and to the Assignee for amounts that have accrued from and after the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>General Provisions</u>. This Assignment and Assumption shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors and assigns. This Assignment and Assumption may be executed in any number of counterparts, which together shall constitute one instrument. Delivery of an executed counterpart of a signature page of this Assignment and Assumption by telecopy shall be effective as delivery of a manually executed counterpart of this Assignment and Assumption. This Assignment and Assumption shall be governed by, and construed in accordance with, the federal law of the United States if and to the extent such law is applicable, and otherwise in accordance with the law of the State of New York applicable to contracts made and to be performed entirely within such State.

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EXHIBIT B-1

[FORM OF

U.S. TAX COMPLIANCE CERTIFICATE

(For Foreign Lenders That Are Not Partnerships For U.S. Federal Income Tax Purposes)

Reference is hereby made to the Loan and Guarantee Agreement dated as of [ ] (as amended, supplemented or otherwise modified from time to time, the "<u>Loan and Guarantee Agreement</u>"), among Republic Airways Inc., a corporation organized under the laws of Indiana (the "<u>Borrower</u>"), Republic Airways Holdings Inc., a corporation organized under the laws of Delaware, the Guarantors party thereto from time to time, the Bank of New York Mellon, as Administrative Agent and Collateral Agent, the United Stated Department of the Treasury and each Lender from time to time party thereto.

Pursuant to the provisions of Section 2.16 of the Loan and Guarantee Agreement, the undersigned hereby certifies that (i) it is the sole record and beneficial owner of the Loan(s) (as well as any Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) it is not a "bank" within the meaning of Section 881(c)(3)(A) of the Code, (iii) it is not a "10 percent shareholder" of the Borrower within the meaning of Section 871(h)(3)(B) of the Code and (iv) it is not a "controlled foreign corporation" related to the Borrower as described in Section 881(c)(3)(C) of the Code.

The undersigned has furnished the Administrative Agent and the Borrower with a certificate of its non-U.S. Person status on IRS Form W-8BEN or IRS Form W-8BEN-E. By executing this certificate, the undersigned agrees that (1) if the information provided in this certificate changes, the undersigned shall promptly so inform the Borrower and the Administrative Agent, and (2) the undersigned shall have at all times furnished the Borrower and the Administrative Agent with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.

Unless otherwise defined herein, terms defined in the Loan and Guarantee Agreement and used herein shall have the meanings given to them in the Loan and Guarantee Agreement.

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| |
|:---|
| [NAME OF LENDER] |
| By: |
| Name: |
| Title: |

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Date: ________ __, 20[ ]

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EXHIBIT B-2

[FORM OF

U.S. TAX COMPLIANCE CERTIFICATE

(For Foreign Participants That Are Not Partnerships For U.S. Federal Income Tax Purposes)

Reference is hereby made to the Loan and Guarantee Agreement dated as of [ ] (as amended, supplemented or otherwise modified from time to time, the "<u>Loan and Guarantee Agreement</u>"), among Republic Airways Inc., a corporation organized under the laws of Indiana (the "<u>Borrower</u>"), Republic Airways Holdings Inc., a corporation organized under the laws of Delaware, the Guarantors party from time to time thereto, the Bank of New York Mellon, as Administrative Agent and Collateral Agent, the United Stated Department of the Treasury and each Lender from time to time party thereto.

Pursuant to the provisions of Section 2.16 of the Loan and Guarantee Agreement, the undersigned hereby certifies that (i) it is the sole record and beneficial owner of the participation in respect of which it is providing this certificate, (ii) it is not a "bank" within the meaning of Section 881(c)(3)(A) of the Code, (iii) it is not a "10 percent shareholder" of the Borrower within the meaning of Section 871(h)(3)(B) of the Code and (iv) it is not a "controlled foreign corporation" related to the Borrower as described in Section 881(c)(3)(C) of the Code.

The undersigned has furnished its participating Lender with a certificate of its non-U.S. Person status on IRS Form W-8BEN or IRS Form W-8BEN-E. By executing this certificate, the undersigned agrees that (1) if the information provided in this certificate changes, the undersigned shall promptly so inform such Lender in writing, and (2) the undersigned shall have at all times furnished such Lender with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.

Unless otherwise defined herein, terms defined in the Loan and Guarantee Agreement and used herein shall have the meanings given to them in the Loan and Guarantee Agreement.

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| |
|:---|
| [NAME OF PARTICIPANT] |
| By: |
| Name: |
| Title: |

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Date: ________ __, 20[ ]

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EXHIBIT B-3

[FORM OF

U.S. TAX COMPLIANCE CERTIFICATE

(For Foreign Participants That Are Partnerships For U.S. Federal Income Tax Purposes)

Reference is hereby made to the Loan and Guarantee Agreement dated as of [ ] (as amended, supplemented or otherwise modified from time to time, the "<u>Loan and Guarantee Agreement</u>"), among Republic Airways Inc., a corporation organized under the laws of Indiana (the "<u>Borrower</u>"), Republic Airways Holdings Inc., a corporation organized under the laws of Delaware, the Guarantors party from time to time thereto, the Bank of New York Mellon, as Administrative Agent and Collateral Agent, the United Stated Department of the Treasury and each Lender from time to time party thereto.

Pursuant to the provisions of Section 2.16 of the Loan and Guarantee Agreement, the undersigned hereby certifies that (i) it is the sole record owner of the participation in respect of which it is providing this certificate, (ii) its direct or indirect partners/members are the sole beneficial owners of such participation, (iii) with respect such participation, neither the undersigned nor any of its direct or indirect partners/members is a "bank" extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or business within the meaning of Section 881(c)(3)(A) of the Code, (iv) none of its direct or indirect partners/members is a "10 percent shareholder" of the Borrower within the meaning of Section 871(h)(3)(B) of the Code and (v) none of its direct or indirect partners/members is a "controlled foreign corporation" related to the Borrower as described in Section 881(c)(3)(C) of the Code.

The undersigned has furnished its participating Lender with IRS Form W-8IMY accompanied by one of the following forms from each of its partners/members that is claiming the portfolio interest exemption: (i) an IRS Form W-8BEN or IRS Form W-8BEN-E or (ii) an IRS Form W-8IMY accompanied by an IRS Form W-8BEN or IRS Form W-8BEN-E from each of such partner's/member's beneficial owners that is claiming the portfolio interest exemption. By executing this certificate, the undersigned agrees that (1) if the information provided in this certificate changes, the undersigned shall promptly so inform such Lender and (2) the undersigned shall have at all times furnished such Lender with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.

Unless otherwise defined herein, terms defined in the Loan and Guarantee Agreement and used herein shall have the meanings given to them in the Loan and Guarantee Agreement.

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| |
|:---|
| [NAME OF PARTICIPANT] |
| By: |
| Name: |
| Title: |

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Date: ________ __, 20[ ]

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EXHIBIT B-4

[FORM OF

U.S. TAX COMPLIANCE CERTIFICATE

(For Foreign Lenders That Are Partnerships For U.S. Federal Income Tax Purposes)

Reference is hereby made to the Loan and Guarantee Agreement dated as of [ ] (as amended, supplemented or otherwise modified from time to time, the "<u>Loan and Guarantee Agreement</u>"), among Republic Airways Inc., a corporation organized under the laws of Indiana (the "<u>Borrower</u>"), Republic Airways Holdings Inc., a corporation organized under the laws of Delaware, the Guarantors party from time to time thereto, the Bank of New York Mellon, as Administrative Agent and Collateral Agent, the United Stated Department of the Treasury and each Lender from time to time party thereto, and each lender from time to time party thereto.

Pursuant to the provisions of Section 2.16 of the Loan and Guarantee Agreement, the undersigned hereby certifies that (i) it is the sole record owner of the Loan(s) (as well as any Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) its direct or indirect partners/members are the sole beneficial owners of such Loan(s) (as well as any Note(s) evidencing such Loan(s)), (iii) with respect to the extension of credit pursuant to this Loan and Guarantee Agreement or any other Loan Document, neither the undersigned nor any of its direct or indirect partners/members is a "bank" extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or business within the meaning of Section 881(c)(3)(A) of the Code, (iv) none of its direct or indirect partners/members is a "10 percent shareholder" of the Borrower within the meaning of Section 871(h)(3)(B) of the Code and (v) none of its direct or indirect partners/members is a "controlled foreign corporation" related to the Borrower as described in Section 881(c)(3)(C) of the Code.

The undersigned has furnished the Administrative Agent and the Borrower with IRS Form W-8IMY accompanied by one of the following forms from each of its partners/members that is claiming the portfolio interest exemption: (i) an IRS Form W-8BEN or IRS Form W-8BEN-E or (ii) an IRS Form W-8IMY accompanied by an IRS Form W-8BEN or IRS Form W-8BEN-E from each of such partner's/member's beneficial owners that is claiming the portfolio interest exemption. By executing this certificate, the undersigned agrees that (1) if the information provided in this certificate changes, the undersigned shall promptly so inform the Borrower and the Administrative Agent, and (2) the undersigned shall have at all times furnished the Borrower and the Administrative Agent with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.

Unless otherwise defined herein, terms defined in the Loan and Guarantee Agreement and used herein shall have the meanings given to them in the Loan and Guarantee Agreement.

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| |
|:---|
| [NAME OF LENDER] |
| By: |
| Name: |
| Title: |

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Date: ________ __, 20[ ]

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EXHIBIT C

FORM OF NOTE

[New York, New York]

[Date]

FOR VALUE RECEIVED, the undersigned, REPUBLIC AIRWAYS INC., a corporation organized under the laws of Indiana (the "<u>Borrower</u>"), hereby promises to pay to the Lender set forth above (the "<u>Lender</u>") or its registered assigns in accordance with <u>Section</u> <u>11.04</u> of the Loan and Guarantee Agreement (as defined below), in lawful money of the United States of America in immediately available funds at the office of the Administrative Agent (such term, and each other capitalized term used but not defined herein, having the meaning assigned to it in the Loan and Guarantee Agreement, dated as of [_], 2020 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the "<u>Loan and Guarantee Agreement</u>"), among REPUBLIC AIRWAYS INC., a corporation organized under the laws of Indiana, the Guarantors party thereto from time to time, the Lenders party thereto from time to time and The Bank of New York Mellon, as Administrative Agent and Collateral Agent) (i) on the dates set forth in the Loan and Guarantee Agreement, the principal amounts set forth in the Loan and Guarantee Agreement with respect to Loans made by the Lender to the Borrower pursuant to the Loan and Guarantee Agreement and (ii) on each Interest Payment Date, interest at the rate or rates per annum as provided in the Loan and Guarantee Agreement on the unpaid principal amount of all Loans made by the Lender to the Borrower pursuant to the Loan and Guarantee Agreement.

The Borrower promises to pay interest, on written demand, on any overdue principal and, to the extent permitted by law, overdue interest from their due dates at the rate or rates provided in the Loan and Guarantee Agreement.

The Borrower hereby waives (to the extent permitted by applicable law) diligence, presentment, demand, protest and notice of any kind whatsoever. Subject to the terms of the Loan and Guarantee Agreement, including <u>Section</u> <u>7.02</u> thereof, nonexercise by the holder hereof of any of its rights hereunder in any particular instance shall not constitute a waiver thereof in that or any subsequent instance.

All borrowings evidenced by this note and all payments and prepayments of the principal hereof and interest hereon and the respective dates thereof shall be endorsed by the holder hereof on the schedule attached hereto and made a part hereof or on a continuation thereof which shall be attached hereto and made a part hereof, or otherwise recorded by such holder in its internal records; <u>provided</u>, <u>however</u>, that the failure of the holder hereof to make such a notation or any error in such notation shall not affect the obligations of the Borrower under this note.

This note is one of the Notes referred to in the Loan and Guarantee Agreement that, among other things, contains provisions for the acceleration of the maturity hereof upon the happening of certain events, for optional and mandatory prepayment of the principal hereof prior to the maturity hereof and for the amendment or waiver of certain provisions of the Loan and Guarantee Agreement, all upon the terms and conditions therein specified.

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**THIS NOTE MAY NOT BE TRANSFERRED EXCEPT IN COMPLIANCE WITH THE TERMS OF THE LOAN AND GUARANTEE AGREEMENT. THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE FEDERAL LAW OF THE UNITED STATES IF AND TO THE EXTENT SUCH LAW IS APPLICABLE, AND OTHERWISE IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE.** 

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

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IN WITNESS WHEREOF, the Borrower has caused this Note to be duly executed by its authorized officer as of the day and year first above written.

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| | |
|:---|:---|
| REPUBLIC AIRWAYS INC. | REPUBLIC AIRWAYS INC. |
| By: |  |
|  | Name: |
|  | Title: |

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LOANS AND PAYMENTS

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Date | Amount of Loan | Maturity<br> Date | Payments of<br> Principal/Interest | Principal<br> Balance of<br> Note | Name of<br> Person<br> Making the<br> Notation |

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EXHIBIT D

**FORM OF BORROWING REQUEST** 

The Bank of New York Mellon

as Administrative Agent

Attention: Joanna Shapiro, Managing Director

240 Greenwich Street, 7th Floor

New York, NY 10286

Telephone: 212-815-4949

Email: joanna.g.shapiro@bnymellon.com

UST.Cares.Program@bnymellon.com

and:

The Department of the Treasury of the United States

Attention: Assistant General Counsel (Banking and Finance)

1500 Pennsylvania Avenue, NW

Washington, D.C. 20220

Telephone: 202-622-0283

Email: eric.froman@treasury.gov

[•], 2020

Ladies and Gentlemen:

The undersigned, REPUBLIC AIRWAYS INC., a corporation organized under the laws of Indiana (the "<u>Borrower</u>"), refers to the Loan and Guarantee Agreement dated as of [_____], 2020 (as amended, restated, supplemented or otherwise modified from time to time, the "<u>Agreement</u>"), among Borrower, REPUBLIC AIRWAYS HOLDINGS INC., a corporation organized under the laws of Delaware (the "<u>Parent</u>"), the Guarantors party thereto from time to time, the United States Department of the Treasury as the Initial Lender and The Bank of New York Mellon as Administrative Agent and Collateral Agent. Capitalized terms used herein and not otherwise defined shall have the meanings ascribed to such terms in the Agreement. This notice constitutes a Borrowing Request pursuant to the Agreement, and the Borrower hereby gives you notice pursuant to Sections 2.03(a) and (b) of the Agreement that it requests a Borrowing under the Agreement, and in connection therewith specifies the following information with respect to the Borrowing requested hereby:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) The Borrowing shall be denominated in dollars and shall be in an aggregate principal amount equal to: $[•]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Date of Borrowing (which is a Business Day): [•], 2020

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) Location and number of Borrower's account to which funds of the requested Borrowing are to be disbursed:

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bank Name: | [•] |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Account Name: | [•] |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Account Number: | [•] |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ABA Number: | [•] |

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The undersigned hereby certifies that (a) on and as of the date of the Borrowing requested hereby (or, in the case of any such representation or warranty expressly stated to have been made as of a specific date, as of such specific date), the representations and warranties of the Credit Parties set forth in the Agreement and in any other Loan Document are true and correct in all material respects (or, in the case of any such representation or warranty already qualified by materiality, in all respects), (b) on and as of the date of the Borrowing requested hereby, no Default has occurred or is continuing or will result from the requested Borrowing or from the application of proceeds thereof, (c) this Borrowing Request is made in compliance with the requirements of Sections 2.02 and 2.03 of the Agreement and (d) all conditions in Section [4.02]/[4.03] of the Agreement have been satisfied as of the date of the Borrowing requested hereby.

Delivery of this Borrowing Request may initially be made by electronic communication including fax or email and shall be followed by an original authentic counterpart thereof.

[*Remainder of Page Intentionally Left Blank*]

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| |
|:---|
| Very truly yours, |
| By<sup>1</sup>: |

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<sup>1</sup> This Borrowing Request must be signed by a Responsible Officer of the Borrower. As used herein, a Responsible Officer is any of the following: Chief Executive Officer, Financial Officer (i.e., Chief Financial Officer, principal accounting officer, treasurer or controller), President, or Executive Vice President, as well as any other officer or employee of the Borrower so designated from time to time by one of the aforementioned officers in a notice to the Administrative Agent (together with evidence of the authority and capacity of each such Person to so act in form and substance satisfactory to the Administrative Agent).

## Exhibit 10.30

**Exhibit 10.30.1** 

**AMENDED AND RESTATED WARRANT AGREEMENT** 

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**TABLE OF CONTENTS** 

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| | | |
|:---|:---|:---|
|  |  | **Page** |
|  | Article I |  |
|  | Closing |  |
| 1.1 | Issuance | 1 |
| 1.2 | Initial Closing; Warrant Closing Date | 1 |
| 1.3 | Interpretation | 2 |
|  | Article II |  |
|  | Representations and Warranties |  |
| 2.1 | Representations and Warranties of the Company | 3 |
|  | Article III |  |
|  | Covenants |  |
| 3.1 | Commercially Reasonable Efforts | 6 |
| 3.2 | Expenses | 6 |
| 3.3 | Sufficiency of Authorized Common Stock | 6 |
|  | Article IV |  |
|  | Additional Agreements |  |
| 4.1 | Investment | 7 |
| 4.2 | Legends | 7 |
| 4.3 | Certain Transactions | 7 |
| 4.4 | Transfer of Warrants and Warrant Shares | 8 |
| 4.5 | Registration Rights | 8 |
| 4.6 | Voting of Warrant Shares | 20 |
|  | Article V |  |
|  | Miscellaneous |  |
| 5.1 | Survival of Representations and Warranties | 20 |
| 5.2 | Amendment | 20 |
| 5.3 | Waiver of Conditions | 20 |
| 5.4 | **Governing Law: Submission to Jurisdiction, Etc.** | 20 |
| 5.5 | Notices | 20 |
| 5.6 | Definitions | 21 |
| 5.7 | Assignment | 22 |
| 5.8 | Severability | 22 |
| 5.9 | No Third Party Beneficiaries | 22 |

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ii

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LIST OF ANNEXES

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| | |
|:---|:---|
| ANNEX A: | FORM OF OPINION |
| ANNEX B: | FORM OF WARRANT |
| SCHEDULE 1: | WARRANT SHARES FORMULA |
| SCHEDULE 2: | CAPITALIZATION |
| SCHEDULE 3: | REQUIRED STOCKHOLDER APPROVALS |

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iii

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**INDEX OF DEFINED TERMS** 

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| | |
|:---|:---|
| Term | Location of<br>Definition |
| Affiliate | Annex B |
| Agreement | Recitals |
| Appraisal Procedure | Annex B |
| Board of Directors | 2.1(g) |
| Business Combination | Annex B |
| Business Day | Annex B |
| Capitalization Date | 2.1(b) |
| Closing | 1.2(a) |
| Common Stock | Annex B |
| Company | Recitals |
| Company Reports | 2.1(h)(i) |
| Exchange Act | Annex B |
| Governmental Authority | 5.6(a) |
| Holder | 4.5(l)(i) |
| Indemnitee | 4.5(h)(i) |
| Initial Closing | 1.2(a) |
| IPO | 4.5(r) |
| Lien | 5.6(c) |
| Material Adverse Effect | 5.6(d) |
| Organizational Documents | 5.6(e) |
| Original Warrant Agreement | Recitals |
| Pending Underwritten Offering | 4.5(m) |
| Piggyback Registration | 4.5(b)(iv) |
| Promissory Note | Recitals |
| register; registered; registration | 4.5(l)(ii) |
| Registrable Securities | 4.5(l)(iii) |
| Registration Expenses | 4.5(l)(iv) |
| Rule 144; Rule 144A; Rule 159A; Rule 405; Rule 415 | 4.5(l)(v) |
| SEC | 2.1(i) |
| Securities Act | Annex B |
| Selling Expenses | 4.5(l)(vi) |
| Shelf Registration Statement | 4.5(b)(ii) |
| Special Registration | 4.5(j) |
| Stockholder Proposals | 3.1(b) |
| Subsidiary | 5.6(f) |
| Transfer | 4.4 |
| Treasury | Recitals |
| Warrant Closing Date | 1.2(a) |
| Warrants | Recitals |
| Warrant Shares | Annex B |

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iv

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AMENDED AND RESTATED WARRANT AGREEMENT dated as of November 18, 2020, between REPUBLIC AIRWAYS HOLDINGS INC., a corporation organized under the laws of Delaware (the "<u>Company</u>") and the UNITED STATES DEPARTMENT OF THE TREASURY ("<u>Treasury</u>").

WHEREAS, the Company has requested that Treasury provide financial assistance to the Recipient (as defined in the PSP Agreement) that shall exclusively be used for the continuation of payment of employee wages, salaries, and benefits as is permissible under Section 4112(a) of Title IV of the Coronavirus Aid, Relief, and Economic Security Act, Pub. L. 116-136 (Mar. 27, 2020), as the same may be amended form time to time (the "<u>CARES Act</u>"), and Treasury is willing to do so on the terms and conditions set forth in the Payroll Support Program Agreement dated as of May 12, 2020, between REPUBLIC AIRWAYS, INC. and Treasury (the "<u>PSP Agreement</u>");

WHEREAS, as appropriate compensation to the Federal Government of the United States of America for the provision of financial assistance under the PSP Agreement, REPUBLIC AIRWAYS, INC. has agreed to issue a note to be repaid to Treasury on the terms and conditions set forth in the promissory note dated as of May 12, 2020, issued by REPUBLIC AIRWAYS, INC., in the name of Treasury as the holder (the "<u>Promissory Note</u>") and the Company has entered into the warrant agreement, dated as of May 12, 2020, between the Company and Treasury (the "<u>Original Warrant Agreement</u>"), under which the Company agreed to and has issued in a private placement warrants to purchase the number of shares of its Common Stock determined in accordance with Schedule 1 to the Original Warrant Agreement (the "<u>Warrants</u>") to Treasury; and

WHEREAS, in accordance with Section 5.2 of the Original Warrant Agreement, the Company and Treasury have agreed to amend and restate the Original Warrant Agreement and Annex B to the Original Warrant Agreement as of the date hereof on the terms and conditions set forth herein (as amended and restated, this "<u>Agreement</u>").

**NOW, THEREFORE**, in consideration of the premises, and of the representations, warranties, covenants and agreements set forth herein, the parties agree as follows:

Article I

**Closing** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 <u>Issuance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On the terms and subject to the conditions set forth in this Agreement, the Company agrees to issue to Treasury, on each Warrant Closing Date, Warrants for a number of shares of Common Stock determined by the formula set forth in <u>Schedule 1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 <u>Initial Closing; Warrant Closing Date</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On the terms and subject to the conditions set forth in this Agreement, the closing of the initial issuance of the Warrants (the "<u>Initial Closing</u>") will take place on or before the 90th day after the Closing Date (as defined in the Promissory Note) or, if on the 90th day after the Closing Date the principal amount of the Promissory Note is $0, the first date on which such principal amount is increased. After the Initial Closing, the closing of any subsequent issuance will take place on the date of each increase, if any, of the principal amount of the Promissory Note (each subsequent closing, together with the Initial Closing, a "<u>Closing</u>" and each such date a "<u>Warrant Closing Date</u>").

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) On each Warrant Closing Date, the Company will issue to Treasury a duly executed Warrant or Warrants with an Exercise Price determined by the formula set forth in paragraph (a) <u>of Schedule 1</u> for a number of shares of Common Stock determined by the formula set forth in paragraph (b) of <u>Schedule 1</u>, as evidenced by one or more certificates dated the Warrant Closing Date and bearing appropriate legends as hereinafter provided for and in substantially the form attached hereto as <u>Annex B</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) On each Warrant Closing Date, the Company shall deliver to Treasury (i) a written opinion from counsel to the Company (which may be internal counsel) addressed to Treasury and dated as of such Warrant Closing Date, in substantially the form attached hereto as <u>Annex A</u> and (ii) a certificate executed by the chief executive officer, president, executive vice president, chief financial officer, principal accounting officer, treasurer or controller confirming that the representations and warranties of the Company in this Agreement are true and correct with the same force and effect as though expressly made at and as of such Warrant Closing Date and the Company has complied with all agreements on its part to be performed or satisfied hereunder at or prior to such Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) On the initial Warrant Closing Date, the Company shall deliver to Treasury (i) such customary certificates of resolutions or other action, incumbency certificates and/or other certificates of the chief executive officer, president, executive vice president, chief financial officer, principal accounting officer, treasurer or controller as Treasury may require evidencing the identity, authority and capacity of each such officer thereof authorized to act as such officer in connection with this Agreement and (ii) customary resolutions or evidence of corporate authorization, secretary's certificates and such other documents and certificates (including Organizational Documents and good standing certificates) as Treasury may reasonably request relating to the organization, existence and good standing of the Company and any other legal matters relating to the Company, this Agreement, the Warrants or the transactions contemplated hereby or thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 <u>Interpretation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) When a reference is made in this Agreement to "Recitals," "Articles," "Sections," or "Annexes" such reference shall be to a Recital, Article or Section of, or Annex to, this Warrant Agreement, unless otherwise indicated. The terms defined in the singular have a comparable meaning when used in the plural, and vice versa. References to "herein", "hereof", "hereunder" and the like refer to this Agreement as a whole and not to any particular section or provision, unless the context requires otherwise. The table of contents and headings contained in this Agreement are for reference purposes only and are not part of this Agreement. Whenever the words "include," "includes" or "including" are used in this Agreement, they shall be deemed followed by the words "without limitation." No rule of construction against the draftsperson shall be applied in connection with the interpretation or enforcement of this Agreement, as this Agreement is the product of negotiation between sophisticated parties advised by counsel. All

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references to "$" or "dollars" mean the lawful currency of the United States of America. Except as expressly stated in this Agreement, all references to any statute, rule or regulation are to the statute, rule or regulation as amended, modified, supplemented or replaced from time to time (and, in the case of statutes, include any rules and regulations promulgated under the statute) and to any section of any statute, rule or regulation include any successor to the section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Capitalized terms not defined herein have the meanings ascribed thereto in Annex B.

Article II

**Representations and Warranties** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>Representations and Warranties of the Company</u>. The Company represents and warrants to Treasury that as of the date hereof and each Warrant Closing Date (or such other date specified herein):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Existence, Qualification and Power</u>. The Company is duly organized or formed, validly existing and, if applicable, in good standing under the Laws of the jurisdiction of its incorporation or organization, and the Company and each Subsidiary (a) has all requisite power and authority and all requisite governmental licenses, authorizations, consents and approvals to

(i) own or lease its assets and carry on its business and (ii) execute, deliver and perform its obligations under the this Agreement and the Warrants, and (b) is duly qualified and is licensed and, as applicable, in good standing under the Laws of each jurisdiction where its ownership, lease or operation of properties or the conduct of its business requires such qualification or license, except, in each case referred to in clause (a)(i) or (b), to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Capitalization</u>. The authorized capital stock of the Company, and the outstanding capital stock of the Company (including securities convertible into, or exercisable or exchangeable for, capital stock of the Company) as of the most recent fiscal month-end preceding the date hereof (the "<u>Capitalization Date</u>") is set forth in Schedule 2. The outstanding shares of capital stock of the Company have been duly authorized and are validly issued and outstanding, fully paid and nonassessable, and subject to no preemptive rights, other than, if applicable, those set forth on Schedule 3 (and were not issued in violation of any preemptive rights). Except as provided in the Warrants, as of the date hereof, the Company does not have outstanding any securities or other obligations providing the holder the right to acquire Common Stock that is not reserved for issuance as specified on Schedule 2, and the Company has not made any other commitment to authorize, issue or sell any Common Stock. Since the Capitalization Date, the Company has not issued any shares of Common Stock, other than (i) shares issued upon the exercise of stock options or delivered under other equity-based awards or other convertible securities or warrants which were issued and outstanding on the Capitalization Date and disclosed on Schedule 2 and (ii) shares disclosed on Schedule 2 as it may be updated by written notice from the Company to Treasury in connection with each Warrant Closing Date. Each holder of 5% or more of any class of capital stock of the Company and such holder's primary address are set forth in Schedule 2.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Governmental Authorization; Other Consents</u>. No approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any Governmental Authority or any other Person is necessary or required in connection with the execution, delivery or performance by, or enforcement against, the Company of this Agreement, except for such approvals, consents, exemptions, authorizations, actions or notices that have been duly obtained, taken or made and are in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Execution and Delivery; Binding Effect</u>. This Agreement has been duly authorized, executed and delivered by the Company. This Agreement constitutes a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, receivership, moratorium or other Laws affecting creditors' rights generally and by general principles of equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>The Warrants and Warrant Shares</u>. Each Warrant has been duly authorized and, when executed and delivered as contemplated hereby, will constitute a valid and legally binding obligation of the Company enforceable against the Company in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, receivership, moratorium or other Laws affecting creditors' rights generally and by general principles of equity. The Warrant Shares have been duly authorized and reserved for issuance upon exercise of the Warrants and when so issued in accordance with the terms of the Warrants will be validly issued, fully paid and non-assessable, subject, if applicable, to the approvals of its stockholders set forth on <u>Schedule 3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Authorization, Enforceability</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company has the corporate power and authority to execute and deliver this Agreement and the Warrants and, subject, if applicable, to the approvals of its stockholders set forth on <u>Schedule 3</u>, to carry out its obligations hereunder and thereunder (which includes the issuance of the Warrants and Warrant Shares). The execution, delivery and performance by the Company of this Agreement and the Warrants and the consummation of the transactions contemplated hereby and thereby have been duly authorized by all necessary corporate or other organizational action on the part of the Company and its stockholders, and no further approval or authorization is required on the part of the Company, subject, in each case, if applicable, to the approvals of its stockholders set forth on <u>Schedule 3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The execution, delivery and performance by the Company of this Agreement do not and will not (a) contravene the terms of its Organizational Documents, (b) conflict with or result in any breach or contravention of, or the creation of any Lien (as defined in the Promissory Note) under, or require any payment to be made under (i) any material Contractual Obligation to which the Company is a party or affecting the Company or the properties of the Company or any Subsidiary or (ii) any material order, injunction, writ or decree of any Governmental Authority or any arbitral award to which the Company or any Subsidiary or its property is subject or (c) violate any Law, except to the extent that such violation could not reasonably be expected to have Material Adverse Effect.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Such filings and approvals as are required to be made or obtained under any state "blue sky" laws, and such filings and approvals as have been made or obtained, no notice to, filing with, exemption or review by, or authorization, consent or approval of, any Governmental Authority is required to be made or obtained by the Company in connection with the execution, delivery and performance by the Company of this Agreement and the consummation by the Company of the issuance of the Warrants except for any such notices, filings, exemptions, reviews, authorizations, consents and approvals the failure of which to make or obtain would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Anti-takeover Provisions and Rights Plan</u>. The Board of Directors of the Company (the "<u>Board of Directors</u>") has taken all necessary action, and will in the future take any necessary action, to ensure that the transactions contemplated by this Agreement and the Warrants and the consummation of the transactions contemplated hereby and thereby, including the exercise of the Warrants in accordance with their terms, will be exempt from any anti-takeover or similar provisions of the Company's Organizational Documents, and any other provisions of any applicable "moratorium", "control share", "fair price", "interested stockholder" or other anti-takeover laws and regulations of any jurisdiction, whether existing on the date hereof or implemented after the date hereof. The Company has taken all actions necessary, and will in the future take any necessary action, to render any stockholders' rights plan of the Company inapplicable to this Agreement and the Warrants and the consummation of the transactions contemplated hereby and thereby, including the exercise of the Warrants by Treasury in accordance with its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Reports</u>. Since December 31, 2017, the Company and each Subsidiary has timely filed all reports, registrations, documents, filings, statements and submissions, together with any amendments thereto, that it was required to file with any Governmental Authority (the foregoing, collectively, the "<u>Company Reports</u>") and has paid all fees and assessments due and payable in connection therewith, except, in each case, as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. As of their respective dates of filing, the Company Reports complied in all material respects with all statutes and applicable rules and regulations of the applicable Governmental Authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Offering of Securities</u>. Neither the Company nor any person acting on its behalf has taken any action (including any offering of any securities of the Company under circumstances which would require the integration of such offering with the offering of any of the Warrants under the Securities Act, and the rules and regulations of the Securities and Exchange Commission (the "<u>SEC</u>") promulgated thereunder), which might subject the offering, issuance or sale of any of the Warrants to Treasury pursuant to this Agreement to the registration requirements of the Securities Act

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Brokers and Finders</u>. No broker, finder or investment banker is entitled to any financial advisory, brokerage, finder's or other fee or commission in connection with this Agreement or the Warrants or the transactions contemplated hereby or thereby based upon arrangements made by or on behalf of the Company or any Subsidiary for which Treasury could have any liability.

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Article III

**Covenants** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>Commercially Reasonable Efforts</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the terms and conditions of this Agreement, each of the parties will use its commercially reasonable efforts in good faith to take, or cause to be taken, all actions, and to do, or cause to be done, all things necessary, proper or desirable, or advisable under applicable laws, to enable consummation of the transactions contemplated hereby and shall use commercially reasonable efforts to cooperate with the other party to that end.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Company is required to obtain any stockholder approvals set forth on <u>Schedule 3</u>, then the Company shall comply with this Section 3.1(b). The Company shall call a<u> </u>special meeting of its stockholders, as promptly as practicable following the Initial Closing, to vote on proposals (collectively, the "<u>Stockholder Proposals</u>") to amend the Company's Organizational Documents to increase the number of authorized shares of Common Stock to at least such number as shall be sufficient to permit the full exercise of the Warrants for Common Stock and comply with the other provisions of this Section 3.1(b). The Board of Directors shall recommend to the Company's stockholders that such stockholders vote in favor of the Stockholder Proposals. In the event that the approval of any of the Stockholder Proposals is not obtained at such special stockholders meeting, the Company shall include a proposal to approve (and the Board of Directors shall recommend approval of) each such proposal at a meeting of its stockholders no less than once in each subsequent six-month period beginning on September 30, 2020 until all such approvals are obtained or made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <u>Expenses</u>. The Company shall pay (i) all reasonable out-of-pocket expenses incurred by Treasury (including the reasonable fees, charges and disbursements of any counsel for Treasury) in connection with the preparation, negotiation, execution, delivery and administration of this Agreement and the Warrants, any other agreements or documents executed in connection herewith or therewith, or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated), and (ii) all out-of-pocket expenses incurred by Treasury (including the fees, charges and disbursements of any counsel for Treasury), in connection with the enforcement or protection of its rights in connection with this Agreement and the Warrants, any other agreements or documents executed in connected herewith or therewith, or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated), including all such out-of-pocket expenses incurred during any workout, restructuring, negotiations or enforcement in respect of such Warrant Agreement, Warrant and other agreements or documents executed in connection herewith or therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 <u>Sufficiency of Authorized Common Stock</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) During the period from each Warrant Closing Date (or, if the approval of the Stockholder Proposals is required, the date of such approval) until the date on which no Warrants remain outstanding, the Company shall at all times have reserved for issuance, free of preemptive or similar rights, a sufficient number of authorized and unissued Warrant Shares to effectuate such exercise. Nothing in this Section 3.3 shall preclude the Company from satisfying its obligations in respect of the exercise of the Warrants by delivery of shares of Common Stock which are held in the treasury of the Company.

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Article IV

**Additional Agreements** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Investment Purposes</u>. Treasury acknowledges that the Warrants and the Warrant Shares have not been registered under the Securities Act or under any state securities laws. Treasury (a) is acquiring the Warrants pursuant to an exemption from registration under the Securities Act solely for investment without a view to sell and with no present intention to distribute them to any person in violation of the Securities Act or any applicable U.S. state securities laws; (b) will not sell or otherwise dispose of any of the Warrants or the Warrant Shares, except in compliance with the registration requirements or exemption provisions of the Securities Act and any applicable U.S. state securities laws; and (c) has such knowledge and experience in financial and business matters and in investments of this type that it is capable of evaluating the merits and risks of the Warrants and the Warrant Shares and of making an informed investment decision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <u>Legends</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Treasury agrees that all certificates or other instruments representing the Warrants and the Warrant Shares will bear a legend substantially to the following effect:

"THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION STATEMENT RELATING THERETO IS IN EFFECT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT AND SUCH LAWS."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that any Warrants or Warrant Shares (i) become registered under the Securities Act or (ii) are eligible to be transferred without restriction in accordance with Rule 144 or another exemption from registration under the Securities Act (other than Rule 144A), the Company shall issue new certificates or other instruments representing such Warrants or Warrant Shares, which shall not contain the legend in Section 4.2(a) above; *provided* that Treasury surrenders to the Company the previously issued certificates or other instruments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 <u>Certain Transactions</u>. The Company will not merge or consolidate with, or sell, transfer or lease all or substantially all of its property or assets to, any other party unless the successor, transferee or lessee party (or its ultimate parent entity), as the case may be (if not the Company), expressly assumes the due and punctual performance and observance of each and every covenant, agreement and condition of this Agreement and the Warrants to be performed and observed by the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 <u>Transfer of Warrants and Warrant Shares</u>. Subject to compliance with applicable securities laws, Treasury shall be permitted to transfer, sell, assign or otherwise dispose of ("<u>Transfer</u>") all or a portion of the Warrants or Warrant Shares at any time, and the Company shall take all steps as may be reasonably requested by Treasury to facilitate the Transfer of the Warrants and the Warrant Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 <u>Registration Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Unless and until the Company becomes subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act, the Company shall have no obligation to comply with the provisions of this Section 4.5; *provided* that the Company covenants and agrees that it shall comply with this Section 4.5 as soon as practicable after the date that it becomes subject to such reporting requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Registration</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Subject to the terms and conditions of this Agreement, the Company covenants and agrees that as soon as practicable after the date that the Company becomes subject to the reporting requirements of Sections 13 or 15(d) of the Exchange Act (and in any event no later than 180 days thereafter), the Company shall prepare and file with the SEC a Shelf Registration Statement covering the maximum number of Registrable Securities (or otherwise designate an existing Shelf Registration Statement filed with the SEC to cover the Registrable Securities) that may be issued pursuant to this Agreement and any Warrants outstanding at that time, and, to the extent the Shelf Registration Statement has not theretofore been declared effective or is not automatically effective upon such filing, the Company shall use reasonable best efforts to cause such Shelf Registration Statement to be declared or become effective and to keep such Shelf Registration Statement continuously effective and in compliance with the Securities Act and usable for resale of such Registrable Securities for a period from the date of its initial effectiveness until such time as there are no Registrable Securities remaining (including by refiling such Shelf Registration Statement (or a new Shelf Registration Statement) if the initial Shelf Registration Statement expires). So long as the Company is a well-known seasoned issuer (as defined in Rule 405 under the Securities Act) at the time of filing of the Shelf Registration Statement with the SEC, such Shelf Registration Statement shall be designated by the Company as an automatic Shelf Registration Statement. Notwithstanding the foregoing, if on the date hereof the Company is not eligible to file a registration statement on Form S-3, then the Company shall not be obligated to file a Shelf Registration Statement unless and until it is so eligible and is requested to do so in writing by Treasury.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Any registration pursuant to Section 4.5(b)(i) shall be effected by means of a shelf registration on an appropriate form under Rule 415 under the Securities Act (a "<u>Shelf Registration Statement</u>"). If Treasury or any other Holder intends to distribute any Registrable Securities by means of an underwritten offering it shall promptly so advise the Company and the Company shall take all reasonable steps to facilitate such distribution, including the actions required pursuant to Section 4.5(d); *provided* that the Company shall not be required to facilitate an underwritten offering of Registrable Securities unless the total number of Warrant Shares and Warrants expected to be sold in such offering exceeds, or are exercisable for, at least 20% of the total number of Warrant

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Shares for which Warrants issued under this Agreement could be exercised (giving effect to the anti-dilution adjustments in Warrants); and *provided*, *further* that the Company shall not be required to facilitate more than two completed underwritten offerings within any 12-month period. The lead underwriters in any such distribution shall be selected by the Holders of a majority of the Registrable Securities to be distributed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Company shall not be required to effect a registration (including a resale of Registrable Securities from an effective Shelf Registration Statement) or an underwritten offering pursuant to Section 4.5(b): (A) with respect to securities that are not Registrable Securities; or (B) if the Company has notified Treasury and all other Holders that in the good faith judgment of the Board of Directors, it would be materially detrimental to the Company or its securityholders for such registration or underwritten offering to be effected at such time, in which event the Company shall have the right to defer such registration or offering for a period of not more than 45 days after receipt of the request of Treasury or any other Holder; *provided* that such right to delay a registration or underwritten offering shall be exercised by the Company (1) only if the Company has generally exercised (or is concurrently exercising) similar black-out rights against holders of similar securities that have registration rights and (2) not more than three times in any 12-month period and not more than 90 days in the aggregate in any 12-month period. The Company shall notify the Holders of the date of any anticipated termination of any such deferral period prior to such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) If during any period when an effective Shelf Registration Statement is not available, the Company proposes to register any of its equity securities, other than a registration pursuant to Section 4.5(b)(i) or a Special Registration, and the registration form to be filed may be used for the registration or qualification for distribution of Registrable Securities, the Company will give prompt written notice to Treasury and all other Holders of its intention to effect such a registration (but in no event less than ten days prior to the anticipated filing date) and will include in such registration all Registrable Securities with respect to which the Company has received written requests for inclusion therein within ten Business Days after the date of the Company's notice (a "<u>Piggyback Registration</u>"). Any such person that has made such a written request may withdraw its Registrable Securities from such Piggyback Registration by giving written notice to the Company and the managing underwriter, if any, on or before the fifth Business Day prior to the planned effective date of such Piggyback Registration. The Company may terminate or withdraw any registration under this Section 4.5(b)(iv) prior to the effectiveness of such registration, whether or not Treasury or any other Holders have elected to include Registrable Securities in such registration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) If the registration referred to in Section 4.5(b)(iv) is proposed to be underwritten, the Company will so advise Treasury and all other Holders as a part of the written notice given pursuant to Section 4.5(b)(iv). In such event, the right of Treasury and all other Holders to registration pursuant to Section 4.5(b) will be conditioned upon such persons' participation in such underwriting and the inclusion of such person's Registrable Securities in the underwriting if such securities are of the same class of securities as the securities to be offered in the underwritten offering, and each such person will (together with the Company and the other persons distributing their securities

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through such underwriting) enter into an underwriting agreement in customary form with the underwriter or underwriters selected for such underwriting by the Company; *provided* that Treasury (as opposed to other Holders) shall not be required to indemnify any person in connection with any registration. If any participating person disapproves of the terms of the underwriting, such person may elect to withdraw therefrom by written notice to the Company, the managing underwriters and Treasury (if Treasury is participating in the underwriting).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) If either (x) the Company grants "piggyback" registration rights to one or more third parties to include their securities in an underwritten offering under the Shelf Registration Statement pursuant to Section 4.5(b)(ii) or (y) a Piggyback Registration under Section 4.5(b)(iv) relates to an underwritten offering on behalf of the Company, and in either case the managing underwriters advise the Company that in their reasonable opinion the number of securities requested to be included in such offering exceeds the number which can be sold without adversely affecting the marketability of such offering (including an adverse effect on the per share offering price), the Company will include in such offering only such number of securities that in the reasonable opinion of such managing underwriters can be sold without adversely affecting the marketability of the offering (including an adverse effect on the per share offering price), which securities will be so included in the following order of priority: (A) first, in the case of a Piggyback Registration under Section 4.5(b)(iv), the securities the Company proposes to sell, (B) then the Registrable Securities of Treasury and all other Holders who have requested inclusion of Registrable Securities pursuant to Section 4.5(b)(ii) or Section 4.5(b)(iv), as applicable, *pro rata* on the basis of the aggregate number of such securities or shares owned by each such person and (C) lastly, any other securities of the Company that have been requested to be so included, subject to the terms of this Agreement; *provided, however,* that if the Company has, prior to the date hereof, entered into an agreement with respect to its securities that is inconsistent with the order of priority contemplated hereby then it shall apply the order of priority in such conflicting agreement to the extent that this Agreement would otherwise result in a breach under such agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Expenses of Registration</u>. All Registration Expenses incurred in connection with any registration, qualification or compliance hereunder shall be borne by the Company. All Selling Expenses incurred in connection with any registrations hereunder shall be borne by the holders of the securities so registered *pro rata* on the basis of the aggregate offering or sale price of the securities so registered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Obligations of the Company</u>. The Company shall use its reasonable best efforts, for so long as there are Registrable Securities outstanding, to take such actions as are under its control to not become an ineligible issuer (as defined in Rule 405 under the Securities Act) and to remain a well-known seasoned issuer (as defined in Rule 405 under the Securities Act) if it has such status on the date hereof or becomes eligible for such status in the future. In addition, whenever required to effect the registration of any Registrable Securities or facilitate the distribution of Registrable Securities pursuant to an effective Shelf Registration Statement, the Company shall, as expeditiously as reasonably practicable:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Prepare and file with the SEC a prospectus supplement with respect to a proposed offering of Registrable Securities pursuant to an effective registration statement, subject to Section 4.5(e), keep such registration statement effective and keep such prospectus supplement current until the securities described therein are no longer Registrable Securities. The plan of distribution included in such registration statement shall include, among other things, an underwritten offering, ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers, block trades, privately negotiated transactions, the writing or settlement of options or other derivative transactions and any other method permitted pursuant to applicable law, and any combination of any such methods of sale.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Prepare and file with the SEC such amendments and supplements to the applicable registration statement and the prospectus or prospectus supplement used in connection with such registration statement as may be necessary to comply with the provisions of the Securities Act with respect to the disposition of all securities covered by such registration statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Furnish to the Holders and any underwriters such number of copies of the applicable registration statement and each such amendment and supplement thereto (including in each case all exhibits) and of a prospectus, including a preliminary prospectus, in conformity with the requirements of the Securities Act, and such other documents as they may reasonably request in order to facilitate the disposition of Registrable Securities owned or to be distributed by them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Use its reasonable best efforts to register and qualify the securities covered by such registration statement under such other securities or Blue Sky laws of such jurisdictions as shall be reasonably requested by the Holders or any managing underwriter(s), to keep such registration or qualification in effect for so long as such registration statement remains in effect, and to take any other action which may be reasonably necessary to enable such seller to consummate the disposition in such jurisdictions of the securities owned by such Holder; *provided* that the Company shall not be required in connection therewith or as a condition thereto to qualify to do business or to file a general consent to service of process in any such states or jurisdictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Notify each Holder of Registrable Securities at any time when a prospectus relating thereto is required to be delivered under the Securities Act of the happening of any event as a result of which the applicable prospectus, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Give written notice to the Holders:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) when any registration statement filed pursuant to Section 4.5(b) or any amendment thereto has been filed with the SEC (except for any amendment effected by the filing of a document with the SEC pursuant to the Exchange Act) and when such registration statement or any post-effective amendment thereto has become effective;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) of any request by the SEC for amendments or supplements to any registration statement or the prospectus included therein or for additional information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) of the issuance by the SEC of any stop order suspending the effectiveness of any registration statement or the initiation of any proceedings for that purpose;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) of the receipt by the Company or its legal counsel of any notification with respect to the suspension of the qualification of the Common Stock for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) of the happening of any event that requires the Company to make changes in any effective registration statement or the prospectus related to the registration statement in order to make the statements therein not misleading (which notice shall be accompanied by an instruction to suspend the use of the prospectus until the requisite changes have been made); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) if at any time the representations and warranties of the Company contained in any underwriting agreement contemplated by Section 4.5(d)(x) cease to be true and correct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) Use its reasonable best efforts to prevent the issuance or obtain the withdrawal of any order suspending the effectiveness of any registration statement referred to in Section 4.5(d)(vi)(C) at the earliest practicable time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) Upon the occurrence of any event contemplated by Section 4.5(d)(v), 4.5(d)(vi)(E) or 4.5(e), promptly prepare a post-effective amendment to such registration statement or a supplement to the related prospectus or file any other required document so that, as thereafter delivered to the Holders and any underwriters, the prospectus will not contain an untrue statement of a material fact or omit to state any material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. If the Company notifies the Holders in accordance with Section 4.5(d)(vi)(E) to suspend the use of the prospectus until the requisite changes to the prospectus have been made, then the Holders and any underwriters shall suspend use of such prospectus and use their reasonable best efforts to return to the Company all copies of such prospectus (at the Company's expense) other than permanent file copies then in such Holders' or underwriters' possession. The total number of days that any such suspension may be in effect in any 12-month period shall not exceed 90 days. The Company shall notify the Holders of the date of any anticipated termination of any such suspension period prior to such date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) Use reasonable best efforts to procure the cooperation of the Company's transfer agent in settling any offering or sale of Registrable Securities, including with respect to the transfer of physical stock certificates into book-entry form in accordance with any procedures reasonably requested by the Holders or any managing underwriter(s).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) If an underwritten offering is requested pursuant to Section 4.5(b)(ii), enter into an underwriting agreement in customary form, scope and substance and take all such other actions reasonably requested by the Holders of a majority of the Registrable Securities being sold in connection therewith or by the managing underwriter(s), if any, to expedite or facilitate the underwritten disposition of such Registrable Securities, and in connection therewith in any underwritten offering (including making members of management and executives of the Company available to participate in "road shows", similar sales events and other marketing activities), (A) make such representations and warranties to the Holders that are selling stockholders and the managing underwriter(s), if any, with respect to the business of the Company and its subsidiaries, and the Shelf Registration Statement, prospectus and documents, if any, incorporated or deemed to be incorporated by reference therein, in each case, in customary form, substance and scope, and, if true, confirm the same if and when requested, (B) use its reasonable best efforts to furnish the underwriters with opinions and "10b-5" letters of counsel to the Company, addressed to the managing underwriter(s), if any, covering the matters customarily covered in such opinions and letters requested in underwritten offerings, (C) use its reasonable best efforts to obtain "cold comfort" letters from the independent certified public accountants of the Company (and, if necessary, any other independent certified public accountants of any business acquired by the Company for which financial statements and financial data are included in the Shelf Registration Statement) who have certified the financial statements included in such Shelf Registration Statement, addressed to each of the managing underwriter(s), if any, such letters to be in customary form and covering matters of the type customarily covered in "cold comfort" letters, (D) if an underwriting agreement is entered into, the same shall contain indemnification provisions and procedures customary in underwritten offerings (provided that Treasury shall not be obligated to provide any indemnity), and (E) deliver such documents and certificates as may be reasonably requested by the Holders of a majority of the Registrable Securities being sold in connection therewith, their counsel and the managing underwriter(s), if any, to evidence the continued validity of the representations and warranties made pursuant to clause (A) above and to evidence compliance with any customary conditions contained in the underwriting agreement or other agreement entered into by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) Make available for inspection by a representative of Holders that are selling stockholders, the managing underwriter(s), if any, and any attorneys or accountants retained by such Holders or managing underwriter(s), at the offices where normally kept, during reasonable business hours, financial and other records, pertinent corporate documents and properties of the Company, and cause the officers, directors and employees of the Company to supply all information in each case reasonably requested (and of the type customarily provided in connection with due diligence conducted in connection with a registered public offering of securities) by any such representative, managing underwriter(s), attorney or accountant in connection with such Shelf Registration Statement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) Use reasonable best efforts to cause all such Registrable Securities to be listed on each national securities exchange on which similar securities issued by the Company are then listed or, if no similar securities issued by the Company are then listed on any national securities exchange, use its reasonable best efforts to cause all such Registrable Securities to be listed on such securities exchange as Treasury may designate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) If requested by Holders of a majority of the Registrable Securities being registered and/or sold in connection therewith, or the managing underwriter(s), if any, promptly include in a prospectus supplement or amendment such information as the Holders of a majority of the Registrable Securities being registered and/or sold in connection therewith or managing underwriter(s), if any, may reasonably request in order to permit the intended method of distribution of such securities and make all required filings of such prospectus supplement or such amendment as soon as practicable after the Company has received such request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) Timely provide to its security holders earning statements satisfying the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Suspension of Sales</u>. Upon receipt of written notice from the Company that a registration statement, prospectus or prospectus supplement contains or may contain an untrue statement of a material fact or omits or may omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading or that circumstances exist that make inadvisable use of such registration statement, prospectus or prospectus supplement, Treasury and each Holder of Registrable Securities shall forthwith discontinue disposition of Registrable Securities until Treasury and/or Holder has received copies of a supplemented or amended prospectus or prospectus supplement, or until Treasury and/or such Holder is advised in writing by the Company that the use of the prospectus and, if applicable, prospectus supplement may be resumed, and, if so directed by the Company, Treasury and/or such Holder shall deliver to the Company (at the Company's expense) all copies, other than permanent file copies then in Treasury and/or such Holder's possession, of the prospectus and, if applicable, prospectus supplement covering such Registrable Securities current at the time of receipt of such notice. The total number of days that any such suspension may be in effect in any 12-month period shall not exceed 90 days. The Company shall notify Treasury prior to the anticipated termination of any such suspension period of the date of such anticipated termination

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Termination of Registration Rights</u>. A Holder's registration rights as to any securities held by such Holder shall not be available unless such securities are Registrable Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Furnishing Information</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Neither Treasury nor any Holder shall use any free writing prospectus (as defined in Rule 405) in connection with the sale of Registrable Securities without the prior written consent of the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) It shall be a condition precedent to the obligations of the Company to take any action pursuant to Section 4.5(d) that Treasury and/or the selling Holders and the underwriters, if any, shall furnish to the Company such information regarding themselves, the Registrable Securities held by them and the intended method of disposition of such securities as shall be required to effect the registered offering of their Registrable Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company agrees to indemnify each Holder and, if a Holder is a person other than an individual, such Holder's officers, directors, employees, agents, representatives and Affiliates, and each Person, if any, that controls a Holder within the meaning of the Securities Act (each, an "<u>Indemnitee</u>"), against any and all losses, claims, damages, actions, liabilities, costs and expenses (including reasonable fees, expenses and disbursements of attorneys and other professionals incurred in connection with investigating, defending, settling, compromising or paying any such losses, claims, damages, actions, liabilities, costs and expenses), joint or several, arising out of or based upon any untrue statement or alleged untrue statement of material fact contained in any registration statement, including any preliminary prospectus or final prospectus contained therein or any amendments or supplements thereto or any documents incorporated therein by reference or contained in any free writing prospectus (as such term is defined in Rule 405) prepared by the Company or authorized by it in writing for use by such Holder (or any amendment or supplement thereto); or any omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; *provided*, that the Company shall not be liable to such Indemnitee in any such case to the extent that any such loss, claim, damage, liability (or action or proceeding in respect thereof) or expense arises out of or is based upon (A) an untrue statement or omission made in such registration statement, including any such preliminary prospectus or final prospectus contained therein or any such amendments or supplements thereto or contained in any free writing prospectus (as such term is defined in Rule 405) prepared by the Company or authorized by it in writing for use by such Holder (or any amendment or supplement thereto), in reliance upon and in conformity with information regarding such Indemnitee or its plan of distribution or ownership interests which was furnished in writing to the Company by such Indemnitee for use in connection with such registration statement, including any such preliminary prospectus or final prospectus contained therein or any such amendments or supplements thereto, or (B) offers or sales effected by or on behalf of such Indemnitee "by means of" (as defined in Rule 159A) a "free writing prospectus" (as defined in Rule 405) that was not authorized in writing by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If the indemnification provided for in Section 4.5(h)(i) is unavailable to an Indemnitee with respect to any losses, claims, damages, actions, liabilities, costs or expenses referred to therein or is insufficient to hold the Indemnitee harmless as contemplated therein, then the Company, in lieu of indemnifying such Indemnitee, shall contribute to the amount paid or payable by such Indemnitee as a result of such losses, claims, damages, actions, liabilities, costs or expenses in such proportion as is appropriate to reflect the relative fault of the Indemnitee, on the one hand, and the Company, on the other hand, in connection with the statements or omissions which resulted in such losses, claims, damages, actions, liabilities, costs or expenses as well as any other relevant

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equitable considerations. The relative fault of the Company, on the one hand, and of the Indemnitee, on the other hand, shall be determined by reference to, among other factors, whether the untrue statement of a material fact or omission to state a material fact relates to information supplied by the Company or by the Indemnitee and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission; the Company and each Holder agree that it would not be just and equitable if contribution pursuant to this Section 4.5(h)(ii) were determined by *pro rata* allocation or by any other method of allocation that does not take account of the equitable considerations referred to in Section 4.5(h)(i). No Indemnitee guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from the Company if the Company was not guilty of such fraudulent misrepresentation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Assignment of Registration Rights</u>. The rights of Treasury to registration of Registrable Securities pursuant to Section 4.5(b) may be assigned by Treasury to a transferee or assignee of Registrable Securities in connection with a transfer of a total number of Warrant Shares and/or Warrants exercisable for at least 20% of the total number of Warrant Shares for which Warrants issued and to be issued under this Agreement could be exercised (giving effect to the anti-dilution adjustments in Warrants); *provided*, *however*, the transferor shall, within ten days after such transfer, furnish to the Company written notice of the name and address of such transferee or assignee and the number and type of Registrable Securities that are being assigned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Clear Market</u>. With respect to any underwritten offering of Registrable Securities by Treasury or other Holders pursuant to this Section 4.5, the Company agrees not to effect (other than pursuant to such registration or pursuant to a Special Registration) any public sale or distribution, or to file any Shelf Registration Statement (other than such registration or a Special Registration) covering, in the case of an underwritten offering of Common Stock or Warrants, any of its equity securities, or, in each case, any securities convertible into or exchangeable or exercisable for such securities, during the period not to exceed 30 days following the effective date of such offering. The Company also agrees to cause such of its directors and senior executive officers to execute and deliver customary lock-up agreements in such form and for such time period up to 30 days as may be requested by the managing underwriter. "<u>Special</u> <u>Registration</u>" means the registration of (A) equity securities and/or options or other rights in respect thereof solely registered on Form S-4 or Form S-8 (or successor form) or (B) shares of equity securities and/or options or other rights in respect thereof to be offered to directors, members of management, employees, consultants, customers, lenders or vendors of the Company or Company Subsidiaries or in connection with dividend reinvestment plans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Rule 144; Rule 144A</u>. With a view to making available to Treasury and Holders the benefits of certain rules and regulations of the SEC which may permit the sale of the Registrable Securities to the public without registration, the Company agrees to use its reasonable best efforts to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (A) file with the SEC, in a timely manner, all reports and other documents required of the Company under the Exchange Act, and (B) if at any time the Company is not required to file such reports, make available, upon the request of any Holder, such information necessary to permit sales pursuant to Rule 144A (including the information required by Rule 144A(d)(4) under the Securities Act);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) so long as Treasury or a Holder owns any Registrable Securities, furnish to Treasury or such Holder forthwith upon request: a written statement by the Company as to its compliance with the reporting requirements of Rule 144 under the Securities Act, and of the Exchange Act; a copy of the most recent annual or quarterly report of the Company; and such other reports and documents as Treasury or Holder may reasonably request in availing itself of any rule or regulation of the SEC allowing it to sell any such securities to the public without registration; *provided*, *however*, that the availability of the foregoing reports on the EDGAR filing system of the SEC will be deemed to satisfy the foregoing delivery requirements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) take such further action as any Holder may reasonably request, all to the extent required from time to time to enable such Holder to sell Registrable Securities without registration under the Securities Act. (l) As used in this Section 4.5, the following terms shall have the following respective meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "<u>Holder</u>" means Treasury and any other holder of Registrable Securities to whom the registration rights conferred by this Agreement have been transferred in compliance with Section 4.5(i) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "<u>Register</u>," "<u>registered</u>," and "<u>registration</u>" shall refer to a registration effected by preparing and (A) filing a registration statement in compliance with the Securities Act and applicable rules and regulations thereunder, and the declaration or ordering of effectiveness of such registration statement or (B) filing a prospectus and/or prospectus supplement in respect of an appropriate effective registration statement on Form S-3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) "<u>Registrable Securities</u>" means (A) the Warrants (subject to Section 4.5(q)) and (B) any equity securities issued or issuable directly or indirectly with respect to the securities referred to in the foregoing clause (A) by way of conversion, exercise or exchange thereof, including the Warrant Shares, or share dividend or share split or in connection with a combination of shares, recapitalization, reclassification, merger, amalgamation, arrangement, consolidation or other reorganization, *provided* that, once issued, such securities will not be Registrable Securities when (1) they are sold pursuant to an effective registration statement under the Securities Act, (2) except as provided below in Section 4.5(q), they may be sold pursuant to Rule 144 without limitation thereunder on volume or manner of sale, (3) they shall have ceased to be outstanding or (4) they have been sold in a private transaction in which the transferor's rights under this Agreement are not assigned to the transferee of the securities. No Registrable Securities may be registered under more than one registration statement at any one time.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) "<u>Registration Expenses</u>" mean all expenses incurred by the Company in effecting any registration pursuant to this Agreement (whether or not any registration or prospectus becomes effective or final) or otherwise complying with its obligations under this Section 4.5, including all registration, filing and listing fees, printing expenses, fees and disbursements of counsel for the Company, blue sky fees and expenses, expenses incurred in connection with any "road show", the reasonable fees and disbursements of Treasury's counsel (if Treasury is participating in the registered offering), and expenses of the Company's independent accountants in connection with any regular or special reviews or audits incident to or required by any such registration, but shall not include Selling Expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "<u>Rule 144</u>", "<u>Rule 144A</u>", "<u>Rule 159A</u>", "<u>Rule 405</u>" and "<u>Rule 415</u>" mean, in each case, such rule promulgated under the Securities Act (or any successor provision), as the same shall be amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) "<u>Selling Expenses</u>" mean all discounts, selling commissions and stock transfer taxes applicable to the sale of Registrable Securities and fees and disbursements of counsel for any Holder (other than the fees and disbursements of Treasury's counsel included in Registration Expenses).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) At any time, any holder of Securities (including any Holder) may elect to forfeit its rights set forth in this Section 4.5 from that date forward; *provided*, that a Holder forfeiting such rights shall nonetheless be entitled to participate under Section 4.5(b)(iv) – (vi) in any Pending Underwritten Offering to the same extent that such Holder would have been entitled to if the holder had not withdrawn; and *provided*, *further*, that no such forfeiture shall terminate a Holder's rights or obligations under Section 4.5(g) with respect to any prior registration or Pending Underwritten Offering. "*Pending Underwritten Offering"* means*,* with respect to any Holder forfeiting its rights pursuant to this Section 4.5(m), any underwritten offering of Registrable Securities in which such Holder has advised the Company of its intent to register its Registrable Securities either pursuant to Section 4.5(b)(ii) or 4.5(b)(iv) prior to the date of such Holder's forfeiture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Specific Performance</u>. The parties hereto acknowledge that there would be no adequate remedy at law if the Company fails to perform any of its obligations under this Section 4.5 and that Treasury and the Holders from time to time may be irreparably harmed by any such failure, and accordingly agree that Treasury and such Holders, in addition to any other remedy to which they may be entitled at law or in equity, to the fullest extent permitted and enforceable under applicable law shall be entitled to compel specific performance of the obligations of the Company under this Section 4.5 in accordance with the terms and conditions of this Section 4.5.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>No Inconsistent Agreements</u>. The Company shall not, on or after the date hereof, enter into any agreement with respect to its securities that may impair the rights granted to Treasury and the Holders under this Section 4.5 or that otherwise conflicts with the provisions hereof in any manner that may impair the rights granted to Treasury and the Holders under this Section 4.5. In the event the Company has, prior to the date hereof, entered into any agreement with respect to its securities that is inconsistent with the rights granted to Treasury and the Holders under this Section 4.5 (including agreements that are inconsistent with the order of priority contemplated by Section 4.5(b)(vi)) or that may otherwise conflict with the provisions

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hereof, the Company shall use its reasonable best efforts to amend such agreements to ensure they are consistent with the provisions of this Section 4.5. Any transaction entered into by the Company that would reasonably be expected to require the inclusion in a Shelf Registration Statement or any Company Report filed with the SEC of any separate financial statements pursuant to Rule 3-05 of Regulation S-X or pro forma financial statements pursuant to Article 11 of Regulation S-X shall include provisions requiring the Company's counterparty to provide any information necessary to allow the Company to comply with its obligation hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Certain Offerings by Treasury</u>. In the case of any securities held by Treasury that cease to be Registrable Securities solely by reason of clause (2) in the definition of "Registrable Securities," the provisions of Sections 4.5(b)(ii), clauses (iv), (ix) and (x)-(xii) of Section 4.5(d), Section 4.5(h) and Section 4.5(j) shall continue to apply until such securities otherwise cease to be Registrable Securities. In any such case, an "underwritten" offering or other disposition shall include any distribution of such securities on behalf of Treasury by one or more broker-dealers, an "underwriting agreement" shall include any purchase agreement entered into by such broker-dealers, and any "registration statement" or "prospectus" shall include any offering document approved by the Company and used in connection with such distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Registered Sales of the Warrants</u>. The Holders agree to sell the Warrants or any portion thereof under the Shelf Registration Statement only beginning 30 days after notifying the Company of any such sale, during which 30-day period Treasury and all Holders of the Warrants shall take reasonable steps to agree to revisions to the Warrants, at the expense of the Company, to permit a public distribution of the Warrants, including entering into a revised warrant agreement, appointing a warrant agent, and making the securities eligible for book entry clearing and settlement at the Depositary Trust Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>Market Stand-Off.</u> In the event of an IPO, the Company shall not be required to effect a registration (including a resale of Registrable Securities from an effective Shelf Registration Statement) or an underwritten offering pursuant to Section 4.5(b) and Treasury agrees, if requested by the managing underwriter or underwriters in such IPO, not to (i) offer for sale, sell, pledge, or otherwise dispose of (or enter into any transaction or device that is designed to, or could be expected to, result in the disposition by any person at any time in the future of) any Registrable Securities (including Registrable Securities that may be deemed to be beneficially owned by the undersigned in accordance with the rules and regulations of the SEC); (ii) enter into any swap or other derivatives transaction that transfers to another, in whole or in part, any of the economic benefits or risks of ownership of Registrable Securities, whether any such transaction is to be settled by delivery of Registrable Securities, in cash or otherwise; (iii) make any demand for or exercise any right or cause to be filed a registration statement, including any amendments thereto, with respect to the registration of any Registrable Securities; or (iv) publicly disclose the intention to do any of the foregoing, in each case (to the extent timely notified in writing by the Company or the managing underwriter or underwriters), during the period beginning seven days before and ending 90 days after the date of the underwriting agreement entered into in connection with such IPO. If requested by the managing underwriter or underwriters of any such IPO, Treasury shall execute a separate agreement to the foregoing effect. The Company may impose stop-transfer instructions with respect to Registrable Securities subject to the foregoing restriction until the end of the period referenced above. The foregoing provisions of this Section 4.5(r) shall not apply to the sale of any shares to an underwriter pursuant to an underwriting agreement, and shall be applicable only if all officers, directors, and shareholders beneficially owning more than one percent (1%) of the Company's outstanding Common Stock are subject to the same restrictions.

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"IPO" means the first underwritten public offering and sale of the Common Stock for cash pursuant to an effective registration statement (other than on Form S-4, S-8 or a comparable form) under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6 <u>Voting of Warrant Shares</u> . Notwithstanding anything in this Agreement to the contrary, Treasury shall not exercise any voting rights with respect to the Warrant Shares.

Article V

**Miscellaneous** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <u>Survival of Representations and Warranties</u>. The representations and warranties of the Company made herein or in any certificates delivered in connection with the Initial Closing or any subsequent Closing shall survive such Closing without limitation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <u>Amendment</u> . No amendment of any provision of this Agreement will be effective unless made in writing and signed by an officer or a duly authorized representative of each party; *provided* that Treasury may unilaterally amend any provision of this Agreement to the extent required to comply with any changes after the date hereof in applicable federal statutes. No failure or delay by any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative of any rights or remedies provided by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 <u>Waiver of Conditions</u>. No waiver will be effective unless it is in a writing signed by a duly authorized officer of the waiving party that makes express reference to the provision or provisions subject to such waiver.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 **<u>Governing Law: Submission to Jurisdiction, Etc.</u> This Agreement will be governed by and construed in accordance with the federal law of the United States if and to the extent such law is applicable, and otherwise in accordance with the laws of the State of New York applicable to contracts made and to be performed entirely within such State. Each of the parties hereto agrees (a) to submit to the exclusive jurisdiction and venue of the United States District Court for the District of Columbia and the United States Court of Federal Claims for any and all civil actions, suits or proceedings arising out of or relating to this Agreement or the Warrants or the transactions contemplated hereby or thereby, and (b) that notice may be served upon (i) the Company at the address and in the manner set forth for notices to the Company in Section 5.5 and (ii) Treasury in accordance with federal law. To the extent permitted by applicable law, each of the parties hereto hereby unconditionally waives trial by jury in any civil legal action or proceeding relating to this Agreement or the Warrants or the transactions contemplated hereby or thereby.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 <u>Notices</u>. Any notice, request, instruction or other document to be given hereunder by any party to the other will be in writing and will be deemed to have been duly given (a) on the date of delivery if delivered personally, or by facsimile, upon confirmation of receipt, or (b) on

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the second Business Day following the date of dispatch if delivered by a recognized next day courier service. All notices to the Company shall be delivered as set forth below, or pursuant to such other instruction as may be designated in writing by the Company to Treasury. All notices to Treasury shall be delivered as set forth below, or pursuant to such other instructions as may be designated in writing by Treasury to the Company.

If to the Company:

Republic Airways Holdings Inc.

8909 Purdue Road, Suite 300

Indianapolis, Indiana 46266

Attention: Chad Pulley

with a copy to

Simpson Thacher & Bartlett LLP

900 G Street, N.W.

Washington, DC 20001

Attention: Joshua Ford Bonnie and Jonathan R. Ozner

If to Treasury:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;United States Department of the Treasury

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1500 Pennsylvania Avenue, NW, Room 2312

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Washington, D.C. 20220

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Attention: Assistant General Counsel (Banking and Finance)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6 <u>Definitions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The term "<u>Governmental Authority</u>" means the government of the United States of America or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The term "<u>Laws</u>" has the meaning ascribed thereto in the Promissory Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The term "<u>Lien</u>" has the meaning ascribed thereto in the Promissory Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The term "<u>Material Adverse Effect</u>" means (a) a material adverse change in, or a material adverse effect on, the operations, business, properties, liabilities (actual or contingent), condition (financial or otherwise) or prospects of the Company and its Subsidiaries taken as a whole; or (b) a material adverse effect on (i) the ability of the Company to perform its obligations under this Agreement or any Warrant or (ii) the legality, validity, binding effect or enforceability against the Company of this Agreement or any Warrant to which it is a party.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The term "<u>Organizational Documents</u>" has the meaning ascribed thereto in the Promissory Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The term "<u>Subsidiary</u>" has the meaning ascribed thereto in the Promissory Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7 <u>Assignment</u>. Neither this Agreement nor any right, remedy, obligation nor liability arising hereunder or by reason hereof shall be assignable by any party hereto without the prior written consent of the other party, and any attempt to assign any right, remedy, obligation or liability hereunder without such consent shall be void, except (a) an assignment, in the case of a Business Combination where such party is not the surviving entity, or a sale of substantially all of its assets, to the entity which is the survivor of such Business Combination or the purchaser in such sale and (b) as provided in Section 4.5.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.8 <u>Severability</u>. If any provision of this Agreement or the Warrants, or the application thereof to any person or circumstance, is determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions hereof, or the application of such provision to persons or circumstances other than those as to which it has been held invalid or unenforceable, will remain in full force and effect and shall in no way be affected, impaired or invalidated thereby, so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party. Upon such determination, the parties shall negotiate in good faith in an effort to agree upon a suitable and equitable substitute provision to effect the original intent of the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.9 <u>No Third Party Beneficiaries</u>. Nothing contained in this Agreement, expressed or implied, is intended to confer upon any person or entity other than the Company and Treasury any benefit, right or remedies, except that the provisions of Section 4.5 shall inure to the benefit of the persons referred to in that Section.

\* \* \*

*[Signature page follows]* 

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective officers thereunto duly authorized, as of the date first above written.

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| | |
|:---|:---|
| THE UNITED STATES DEPARTMENT OF THE TREASURY | THE UNITED STATES DEPARTMENT OF THE TREASURY |
| By: | /s/ Brent Mcintosh |
| Name: | Brent Mcintosh |
| Title: | Vice Secretary |
| REPUBLIC AIRWAYS HOLDINGS INC. | REPUBLIC AIRWAYS HOLDINGS INC. |
| By: | /s/ Joseph P. Allman |
| Name: | Joseph P. Allman |
| Title: | Senior Vice President and Chief Financial Officer |

---

**[Signature Page to Warrant Agreement]** 

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**ANNEX A** 

**<u>FORM OF OPINION</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company has been duly incorporated and is validly existing as a corporation in good standing under the laws of the state of its incorporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each of the Warrants has been duly authorized and, when executed and delivered as contemplated by the Agreement, will constitute a valid and legally binding obligation of the Company enforceable against the Company in accordance with its terms, except as the same may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors' rights generally and general equitable principles, regardless of whether such enforceability is considered in a proceeding at law or in equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The shares of Common Stock issuable upon exercise of the Warrants have been duly authorized and reserved for issuance upon exercise of the Warrants and when so issued in accordance with the terms of the Warrants will be validly issued, fully paid and non-assessable **[*insert, if applicable:*** , subject to the approvals of the Company's stockholders set forth on <u>Schedule 3</u>**<u>]</u>**<u>.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company has the corporate power and authority to execute and deliver the Agreement and the Warrants and **[*insert, if applicable:*** , subject to the approvals of the Company's stockholders set forth on <u>Schedule 3</u>**]** to carry out its obligations thereunder (which includes the issuance of the Warrants and Warrant Shares).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The execution, delivery and performance by the Company of the Agreement and the Warrants and the consummation of the transactions contemplated thereby have been duly authorized by all necessary corporate action on the part of the Company and its stockholders, and no further approval or authorization is required on the part of the Company **[*insert, if applicable:*** , subject, in each case, to the approvals of the Company's stockholders set forth on ****<u>Schedule 3</u>**]**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Agreement is a valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except as the same may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors' rights generally and general equitable principles, regardless of whether such enforceability is considered in a proceeding at law or in equity; *provided*, *however*, such counsel need express no opinion with respect to Section 4.5(h) or the severability provisions of the Agreement insofar as Section 4.5(h) is concerned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) No registration of the Warrant and the Common Stock issuable upon exercise of the Warrant under the U.S. Securities Act of 1933, as amended, is required for the offer and sale of the Warrant or the Common Stock issuable upon exercise of the Warrant by the Company to the Holder pursuant to and in the manner contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The Company is not required to be registered as an investment company under the Investment Company Act of 1940, as amended.

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**ANNEX B** 

**<u>FORM OF WARRANT</u>**

[SEE ATTACHED]

------

**FORM OF WARRANT TO PURCHASE COMMON STOCK** 

THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION STATEMENT RELATING THERETO IS IN EFFECT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT AND SUCH LAWS.

**WARRANT** 

**to purchase** 

**Shares of Common Stock** 

**of Republic Airways Holdings Inc.** 

Issue Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Definitions</u>. Unless the context otherwise requires, when used herein the following terms shall have the meanings indicated.

"*Affiliate*" means, with respect to any person, any person directly or indirectly controlling, controlled by or under common control with, such other person. For purposes of this definition, "<u>control</u>" (including, with correlative meanings, the terms "<u>controlled by</u>" and "<u>under common control with</u>") when used with respect to any person, means the possession, directly or<u> </u>indirectly, of the power to cause the direction of management and/or policies of such person, whether through the ownership of voting securities by contract or otherwise.

"*Aggregate Net Cash Settlement Amount*" has the meaning ascribed thereto in Section

2(A).

"*Aggregate Net Share Settlement Amount*" has the meaning ascribed thereto in Section

2(B).

"*Average Market Price*" means, with respect to any security, (i) the arithmetic average of the Market Price of such security for the 15 consecutive trading day period ending on and including the trading day immediately preceding the determination date or (ii) if the security has not been traded on any national or regional securities exchange for at least the 15 consecutive trading day period ending on and including the trading day immediately preceding the determination date and the Quotations are not available for the remainder of such period, the arithmetic average of the Market Price of such security for the trading days within such period during which the security was traded on such national securities exchange.

"*Board of Directors*" means the board of directors of the Company, including any duly authorized committee thereof.

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"*Business Combination*" means a merger, consolidation, statutory share exchange or similar transaction that requires the approval of the Company's stockholders.

"*Business Day*" means any day except Saturday, Sunday and any day on which banking institutions in the State of New York generally are authorized or required by law or other governmental actions to close; *provided* that banks shall be deemed to be generally open for business in the event of a "shelter in place" or similar closure of physical branch locations at the direction of any governmental entity if such banks' electronic funds transfer system (including wire transfers) are open for use by customers on such day.

"*Capital Stock*" means (A) with respect to any Person that is a corporation or company, any and all shares, interests, participations or other equivalents (however designated) of capital or capital stock of such Person and (B) with respect to any Person that is not a corporation or company, any and all partnership or other equity interests of such Person.

"*Charter*" means, with respect to any Person, its certificate or articles of incorporation, articles of association, or similar organizational document.

"*Common Stock*" means common stock of the Company, par value $0.001 subject to adjustment as provided in Section 13(C).

"*Company*" means the Person whose name, corporate or other organizational form and jurisdiction of organization is set forth in Item 1 of Schedule A hereto.

"*conversion*" has the meaning set forth in Section 13(B)(ii).

"*convertible securities*" has the meaning set forth in Section 13(B)(ii).

"*Equity Value*" means the aggregate fair market value of all outstanding equity securities of the Company determined by a nationally recognized independent appraiser using valuation techniques then prevailing in the securities industry, retained by the Company at its expense for this purpose and approved by Treasury in its sole discretion. The methodology used in determining the Equity Value shall take into account discounts for the minority interest represented by the Warrant Shares.

"*Exchange Act*" means the Securities Exchange Act of 1934, as amended, or any successor statute, and the rules and regulations promulgated thereunder.

"*Exercise Date*" means each date a Notice of Exercise substantially in the form annexed hereto is delivered to the Company in accordance with Section 2 hereof.

"*Exercise Price*" means the amount set forth in Item 2 of Schedule A hereto, subject to any adjustment as contemplated herein.

"*Expiration Time*" means the Original Expiration Time or, if the Warrantholder is subject to a Lockup Period at the Original Expiration Time, 5pm New York City time on the fifth Business Day immediately following the termination of such Lockup Period.

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"*Fully-Diluted Outstanding Common Stock*" means, with respect to a determination date, the number of shares of all issued and outstanding Common Stock of the Company and all Common Stock issuable upon the exercise or conversion of any outstanding security or obligation that is by its terms, directly or indirectly, convertible into or exchangeable or exercisable for Common Stock, and any option, warrant or other right to subscribe for, purchase or acquire Common Stock as of such date, whether or not such instrument is at the time exercisable, convertible or exchangeable.

"*Initial Number*" has the meaning set forth in Section 13(B)(ii)(1).

*"Issue Date"* means the date set forth in Item 3 of Schedule A hereto.

*"Lockup Period"* means any period during which the Warrantholder is subject to restrictions on resale pursuant to Section 4.5(r) of the Warrant Agreement.

"*Market Price*" means, with respect to a particular security, on any given day, the last reported sale price regular way or, in case no such reported sale takes place on such day, the average of the last closing bid and ask prices regular way, in either case on the principal national securities exchange on which the applicable securities are listed or admitted to trading, or if not listed or admitted to trading on any national securities exchange, the average of the closing bid and ask prices as furnished by two members of the Financial Industry Regulatory Authority, Inc. selected from time to time by the Company for that purpose (the "*Quotations*"). "Market Price" shall be determined without reference to after hours or extended hours trading.

"*Minimum Exercise Amount*" means 20% of the total number of the shares of Common Stock with respect to which Warrants issued pursuant to the Warrant Agreement could be exercised (including, for the avoidance of doubt, Warrants that were previously exercised), adjusted as described in Section 13 hereof.

"*Original Expiration Time*" means 5:00 p.m. New York City time on the fifth anniversary of the Issue Date.

"*Original Warrantholder*" means the United States Department of the Treasury. Any actions specified to be taken by the Original Warrantholder hereunder may only be taken by such Person and not by any other Warrantholder.

"*Permitted Transactions*" has the meaning set forth in Section 13(B)(ii).

"*Per Share Fair Market Value*" has the meaning set forth in Section 13(B)(iii).

"*Per Share Net Cash Settlement Amount*" means the Per Share Value of a share of Common Stock determined as of the relevant Exercise Date less the Exercise Price.

"*Per Share Net Share Settlement Amount*" means the quotient of (i) the Per Share Value of a share of Common Stock determined as of the relevant Exercise Date less the then applicable Exercise Price *divided by* (ii) the Per Share Value of a share of Common Stock determined as of the relevant Exercise Date.

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*"Per Share Value"* means (i) if the Common Stock is listed on a national securities exchange as of day preceding the determination date or the Quotations are available as of such date, the Average Market Price or (ii) if the Common Stock is not so listed, the quotient of the Equity Value determined as of the most recent Valuation Date divided by the Fully Diluted Outstanding Common Stock.

"*Person*" has the meaning given to it in Section 3(a)(9) of the Exchange Act and as used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act.

"*Pro Rata Repurchases*" means any purchase of shares of Common Stock by the Company or any Affiliate thereof pursuant to (A) any tender offer or exchange offer subject to Section 13(e) or 14(e) of the Exchange Act or Regulation 14E promulgated thereunder or (B) any other offer available to substantially all holders of Common Stock, in the case of both (A) or (B), whether for cash, shares of Capital Stock of the Company, other securities of the Company, evidences of indebtedness of the Company or any other Person or any other property (including, without limitation, shares of Capital Stock, other securities or evidences of indebtedness of a subsidiary), or any combination thereof, effected while this Warrant is outstanding. The "*Effective Date*" of a Pro Rata Repurchase shall mean the date of acceptance of shares for purchase or exchange by the Company under any tender or exchange offer which is a Pro Rata Repurchase or the date of purchase with respect to any Pro Rata Repurchase that is not a tender or exchange offer.

"*Regulatory Approvals*" with respect to the Warrantholder, means, to the extent applicable and required to permit the Warrantholder to exercise this Warrant for shares of Common Stock and to own such Common Stock without the Warrantholder being in violation of applicable law, rule or regulation, the receipt of any necessary approvals and authorizations of, filings and registrations with, notifications to, or expiration or termination of any applicable waiting period under, the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the rules and regulations thereunder.

"*SEC*" means the U.S. Securities and Exchange Commission.

"*Securities Act*" means the Securities Act of 1933, as amended, or any successor statute, and the rules and regulations promulgated thereunder.

*"trading day"* means (A) if the shares of Common Stock are not traded on any national or regional securities exchange or association or over-the- counter market, a Business Day or (B) if the shares of Common Stock are traded on any national or regional securities exchange or association or over-the-counter market, a Business Day on which such relevant exchange or quotation system is scheduled to be open for business and on which the shares of Common Stock

(i) are not suspended from trading on any national or regional securities exchange or association or over-the-counter market for any period or periods aggregating one half hour or longer; and (ii) have traded at least once on the national or regional securities exchange or association or over-the-counter market that is the primary market for the trading of the shares of Common Stock.

"*Valuation Date*" means the date as of which the Equity Value was most recently determined.

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"*Warrant*" means this Warrant, issued pursuant to the Warrant Agreement.

"*Warrant Agreement*" means the Warrant Agreement, dated as of the date set forth in Item 4 of Schedule A hereto, as amended from time to time, between the Company and the United States Department of the Treasury.

"*Warrantholder*" has the meaning set forth in Section 2.

"*Warrant Shares*" has the meaning set forth in Section 2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Number of Warrant Shares; Net Exercise</u>. This certifies that, for value received, the United States Department of the Treasury or its permitted assigns (the "*Warrantholder*") is entitled, upon the terms and subject to the conditions hereinafter set forth, to acquire from the Company, in whole or in part, after the receipt of all applicable Regulatory Approvals, if any, up to an aggregate of the number of fully paid and nonassessable shares of Common Stock set forth in Item 5 of Schedule A hereto. The number of shares of Common Stock (the "*Warrant Shares*") issuable upon exercise of this Warrant and the Exercise Price are subject to adjustment as provided herein, and all references to "Common Stock," "Warrant Shares" and "Exercise Price" herein shall be deemed to include any such adjustment or series of adjustments.

Upon exercise of the Warrant in accordance with Section 3 hereof prior to the date that is 30 days prior to the Expiration Time, the Company shall elect to pay or deliver, as the case may be, to the exercising Warrantholder (a) cash ("*Net Cash Settlement*") or (b) Warrant Shares together with cash, if applicable, in lieu of delivering any fractional shares in accordance with Section 5 of this Warrant ("*Net Share Settlement*"). The Company will notify the exercising Warrantholder of its election of a settlement method within one Business Day after the relevant Exercise Date and if it fails to deliver a timely notice shall be deemed to have elected Net Share Settlement.

If the Common Stock is not listed on a national securities exchange on an Exercise Date, the Company shall be deemed to irrevocably elect Net Cash Settlement with respect to such exercise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. *Net Cash Settlement.* If the Company elects Net Cash Settlement, it shall pay to the Warrantholder cash equal to the Per Share Net Cash Settlement Amount multiplied by the number of Warrant Shares as to which the Warrant has been exercised as indicated in the Notice of Exercise (the "*Aggregate Net Cash Settlement Amount*").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. *Net Share Settlement*. If the Company elects Net Share Settlement, it shall deliver to the Warrantholder a number of shares of Common Stock equal to the Per Share Net Share Settlement Amount multiplied by the number of Warrant Shares as to which the Warrant has been exercised as indicated in the Notice of Exercise (the "*Aggregate Net Share Settlement Amount*").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Term; Method of Exercise; Valuation Requests</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Subject to Section 2, to the extent permitted by applicable laws and regulations, this Warrant is exercisable, in whole or in part, by the Warrantholder, at any time or from time to time after the execution and delivery of this Warrant by the Company on the date hereof, but in no event later than the Expiration Time.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. This Warrant may be exercised by the surrender of this Warrant and delivery of the Notice of Exercise annexed hereto, duly completed and executed on behalf of the Warrantholder, at the principal executive office of the Company located at the address set forth in Item 6 of Schedule A hereto (or such other office or agency of the Company in the United States as it may designate by notice in writing to the Warrantholder at the address of the Warrantholder appearing on the books of the Company).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. If the Common Stock is not listed on a national securities exchange on the applicable Exercise Date, the Warrantholder may only exercise this Warrant if the number of shares of Common Stock with respect to which the Warrantholder is exercising this Warrant, aggregated with the number of shares of Common Stock with respect to which the Warrantholder is exercising other warrants issued under the Warrant Agreement on the relevant Exercise Date, is no less than the Minimum Exercise Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. If the Warrantholder does not exercise this Warrant in its entirety, the Warrantholder will be entitled to receive from the Company within a reasonable time after the date on which this Warrant has been duly exercised in accordance with the terms of this Warrant, and in any event not exceeding three Business Days after the date thereof, a new warrant in substantially identical form for the purchase of that number of Warrant Shares equal to the difference between the number of Warrant Shares subject to this Warrant and the number of Warrant Shares as to which this Warrant is so exercised. Notwithstanding anything in this Warrant to the contrary, the Warrantholder hereby acknowledges and agrees that its exercise of this Warrant for Warrant Shares is subject to the condition that the Warrantholder will have first received any applicable Regulatory Approvals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. If the Common Stock is not listed on a national securities exchange the Company shall (i) upon request of a Warrantholder, promptly deliver to such Warrantholder the most recent Equity Value of the Company and (ii) obtain an Equity Value as of a date within 90 days subsequent to receipt of a written request from a Warrantholder for such valuation, provided that the Company shall not be required to obtain an Equity Value more than 4 times in any 12 month period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Method of Settlement.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. *Net Cash Settlement*. If the Company elects Net Cash Settlement, the Company shall, (A) if the Common Stock at the time of such election is not listed on a national securities exchange, use its best efforts to as soon as possible, and no more than sixty days after, and (B) if the Common Stock at the time of such election is listed on a national securities exchange, within a reasonable time, not to exceed five Business Days, after the date on which this Warrant has been duly exercised in accordance with the terms of this Warrant, pay to the exercising Warrantholder the Aggregate Net Cash Settlement Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. *Net Share Settlement*. If the Company elects Net Share Settlement, shares of Common Stock equal to the Aggregate Net Share Settlement Amount shall be (x) issued in such

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>No Fractional Warrant Shares or Scrip</u>. No fractional Warrant Shares or scrip representing fractional Warrant Shares shall be issued upon any exercise of this Warrant. In lieu of any fractional Share to which the Warrantholder would otherwise be entitled, the Warrantholder shall be entitled to receive a cash payment equal to the Per Share Value of the Common Stock determined as of the Exercise Date multiplied by such fraction of a share, less the pro-rated Exercise Price for such fractional share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>No Rights as Stockholders; Transfer Books</u>. This Warrant does not entitle the Warrantholder to any voting rights or other rights as a stockholder of the Company prior to the date of exercise hereof. The Company will at no time close its transfer books against transfer of this Warrant in any manner which interferes with the timely exercise of this Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Charges, Taxes and Expenses</u>. Issuance of certificates for Warrant Shares to the Warrantholder upon the exercise of this Warrant shall be made without charge to the Warrantholder for any issue or transfer tax or other incidental expense in respect of the issuance of such certificates, all of which taxes and expenses shall be paid by the Company; *provided*, *however*, that the Company shall not be required to pay any tax that may be payable in respect of any transfer involved in the issuance and delivery of any such certificate, or any certificates or other securities in a name other than that of the registered holder of the Warrant surrendered upon exercise of the Warrant.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Transfer/Assignment</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Subject to compliance with clause (B) of this Section 8, this Warrant and all rights hereunder are transferable, in whole or in part, upon the books of the Company by the registered holder hereof in person or by duly authorized attorney, and a new warrant shall be made and delivered by the Company, of the same tenor and date as this Warrant but registered in the name of one or more transferees, upon surrender of this Warrant, duly endorsed, to the office or agency of the Company described in Section 3. All expenses (other than stock transfer taxes) and other charges payable in connection with the preparation, execution and delivery of the new warrants pursuant to this Section 8 shall be paid by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. If and for so long as required by the Warrant Agreement, this Warrant shall contain the legend as set forth in Section 4.2(a) of the Warrant Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Exchange and Registry of Warrant</u>. This Warrant is exchangeable, upon the surrender hereof by the Warrantholder to the Company, for a new warrant or warrants of like tenor and representing the right to purchase the same aggregate number of Warrant Shares. The Company shall maintain a registry showing the name and address of the Warrantholder as the registered holder of this Warrant. This Warrant may be surrendered for exchange or exercise in accordance with its terms, at the office of the Company, and the Company shall be entitled to rely in all respects, prior to written notice to the contrary, upon such registry.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Loss, Theft, Destruction or Mutilation of Warrant</u>. Upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant, and in the case of any such loss, theft or destruction, upon receipt of a bond, indemnity or security reasonably satisfactory to the Company, or, in the case of any such mutilation, upon surrender and cancellation of this Warrant, the Company shall make and deliver, in lieu of such lost, stolen, destroyed or mutilated Warrant, a new Warrant of like tenor and representing the right to purchase the same aggregate number of Warrant Shares as provided for in such lost, stolen, destroyed or mutilated Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Saturdays, Sundays, Holidays, etc</u>. If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be a Business Day, then such action may be taken or such right may be exercised on the next succeeding day that is a Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Information</u>. With a view to making available to Warrantholders the benefits of certain rules and regulations of the SEC which may permit the sale of the Warrants and Warrant Shares to the public without registration, the Company agrees to use its reasonable best efforts to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. (x) if the Company is subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act, file with the SEC, in a timely manner, all reports and other documents required of the Company under the Securities Act and the Exchange Act, and (y) if at any time the Company is not required to file such reports, make available, upon the request of any Warrantholder, such information necessary to permit sales pursuant to Rule 144A (including the information required by Rule 144A(d)(4) under the Securities Act);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. if the Company is subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act, furnish to any holder of Warrants or Warrant Shares forthwith upon request: a written statement by the Company as to its compliance with the reporting requirements of the Exchange Act and Rule 144(c)(1);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. furnish to any holder of Warrants or Warrant Shares forthwith upon request a copy of the Company's most recent annual or quarterly report and such other reports and documents as the Warrantholder may reasonably request; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. take such further action as any Warrantholder may reasonably request, all to the extent required from time to time to enable such Warantholder to sell Warrants or Warrant Shares without registration under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Adjustments and Other Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. <u>Adjustments at a time when the Common Stock is not listed on a national securities exchange</u>. If, at any time at which the Common Stock is not listed on a national securities exchange, any event occurs that, in the good faith judgment of the Board of Directors of the Company, would require adjustment of the Exercise Price or number of Warrant Shares issuable upon exercise of this Warrant in order to fairly and adequately protect the purchase rights of the Warrants in accordance with the essential intent and principles of the Warrant Agreement and the Warrants, then the Board of Directors shall make such adjustments in the application of such provisions, in accordance with such essential intent and principles, as shall be reasonably necessary, in the good faith opinion of the Board of Directors, to protect such purchase rights as aforesaid. The Exercise Price or the number of Warrant Shares shall not be adjusted in the event of a change in the par value of the Common Stock or a change in the jurisdiction of incorporation of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. <u>Adjustments at a time when the Common Stock is listed on a national securities exchange</u>. At any time at which the Common Stock is listed on a national securities exchange, the Exercise Price and the number of Warrant Shares issuable upon exercise of the Warrant shall be subject to adjustment from time to time as follows; *provided*, that if more than one subsection of this Section 13(B) is applicable to a single event, the subsection shall be applied that produces the largest adjustment and no single event shall cause an adjustment under more than one subsection of this Section 13(B) so as to result in duplication:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. <u>Stock Splits, Subdivisions, Reclassifications or Combinations</u>. If the Company shall (i) declare and
pay a dividend or make a distribution on its Common Stock in shares of Common Stock, (ii) subdivide or reclassify the outstanding shares of Common Stock into a greater number of shares, or (iii) combine or reclassify the outstanding shares
of Common Stock into a smaller number of shares, the number of Warrant Shares issuable upon exercise of this Warrant at the time of the record date for such dividend or distribution or the

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effective date of such subdivision, combination or reclassification shall be proportionately adjusted so that the Warrantholder after such date shall be entitled to acquire the number of shares of Common Stock which such holder would have owned or been entitled to receive in respect of the shares of Common Stock subject to this Warrant after such date had this Warrant been exercised immediately prior to such date. In such event, the Exercise Price in effect at the time of the record date for such dividend or distribution or the effective date of such subdivision, combination or reclassification shall be adjusted to the number obtained by dividing (x) the product of (1) the number of Warrant Shares issuable upon the exercise of this Warrant before such adjustment and (2) the Exercise Price in effect immediately prior to the record or effective date, as the case may be, for the dividend, distribution, subdivision, combination or reclassification giving rise to this adjustment by (y) the new number of Warrant Shares issuable upon exercise of the Warrant determined pursuant to the immediately preceding sentence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. <u>Certain Issuances of Common Stock or Convertible Securities</u>. If the Company shall issue shares of Common
Stock (or rights or warrants or other securities exercisable or convertible into or exchangeable (collectively, a "*conversion*") for shares of Common Stock) (collectively, "*convertible securities*") (other than in
Permitted Transactions (as defined below) or a transaction to which subsection (i) of this Section 13(B) is applicable) without consideration or at a consideration per share (or having a conversion price per share) that is less than 90% of
the Average Market Price determined as of the date of the agreement on pricing such shares (or such convertible securities) then, in such event:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. the number of Warrant Shares issuable upon the exercise of this Warrant immediately prior to the date of the
agreement on pricing of such shares (or of such convertible securities) (the "*Initial Number*") shall be increased to the number obtained by **  multiplying the Initial Number by a fraction (A) the numerator of which shall be
the sum of (x) the number of shares of Common Stock of the Company outstanding on such date and (y) the number of additional shares of Common Stock issued (or into which convertible securities may be exercised or convert) and (B) the
denominator of which shall be the sum of (I) the number of shares of Common Stock outstanding on such date and (II) the number of shares of Common Stock which the aggregate consideration receivable by the Company for the total number of
shares of Common Stock so issued (or into which convertible securities may be exercised or convert) would purchase at the Average Market Price determined as of the date of the agreement on pricing such shares (or such convertible securities); and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. the Exercise Price payable upon exercise of the Warrant shall be adjusted by multiplying such Exercise Price in
effect immediately prior to the date of the agreement on pricing of such shares (or of such convertible securities) by a fraction, the numerator of which shall be the number of shares of Common Stock issuable upon exercise of this Warrant prior to
such date and the denominator of which shall be the number of shares of Common Stock issuable upon exercise of this Warrant immediately after the adjustment described in clause (1) above.

For purposes of the foregoing, the aggregate consideration receivable by the Company in connection with the issuance of such shares of Common Stock or convertible securities shall be deemed to be equal to the sum of the net offering price (including the Fair Market Value of any non-cash consideration and after deduction of any related expenses payable to third parties) of all such securities plus the minimum aggregate amount, if any, payable upon exercise or conversion of any such convertible securities into shares of Common Stock; and "*Permitted Transactions*" shall mean issuances (i) as consideration for or to fund the acquisition of businesses and/or related assets, (ii) in connection with employee benefit plans and compensation related arrangements in the ordinary course and consistent with the "Republic Airways Holdings Inc. 2020 Omnibus Incentive Plan" attached hereto as Exhibit A or any subsequent incentive plan that replaces the plan attached as Exhibit A and that is (x) approved by the Board of Directors,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) consistent with industry practice and (z) substantially similar to the Republic Airways Holdings Inc. 2020 Omnibus Incentive Plan, (iii) in connection with a public or broadly marketed offering and sale of Common Stock or convertible securities for cash conducted by the Company or its affiliates pursuant to registration under the Securities Act or Rule 144A thereunder on a basis consistent with capital raising transactions by comparable institutions and (iv) in connection with the exercise of preemptive rights on terms existing as of the Issue Date. Any adjustment made pursuant to this Section 13(B)(ii) shall become effective immediately upon the date of such issuance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. <u>Other Distributions</u>. In case the Company shall fix a record date for the making of a distribution to all
holders of shares of its Common Stock of securities, evidences of indebtedness, assets, cash, rights or warrants (excluding dividends of its Common Stock and other dividends or distributions referred to in Section 13(B)(i)), in each such case,
the Exercise Price in effect prior to such record date shall be reduced immediately thereafter to the price determined by multiplying the Exercise Price in effect immediately prior to the reduction by the quotient of (x) the Average Market
Price of the Common Stock determined as of the first date on which the Common Stock trades regular way on the principal national securities exchange on which the Common Stock is listed or admitted to trading without the right to receive such
distribution, minus the amount of cash and/or the Fair Market Value of the securities, evidences of indebtedness, assets, rights or warrants to be so distributed in respect of one share of Common Stock (such amount and/or Fair Market Value, the
" *Per Share Fair Market Value*") divided by (y) the Average Market Price specified in clause (x); such adjustment shall be made successively whenever such a record date is fixed. In such event,

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the number of Warrant Shares issuable upon the exercise of this Warrant shall be increased to the number obtained by dividing (x) the product of (1) the number of Warrant Shares issuable upon the exercise of this Warrant before such adjustment, and (2) the Exercise Price in effect immediately prior to the distribution giving rise to this adjustment by (y) the new Exercise Price determined in accordance with the immediately preceding sentence. In the event that such distribution is not so made, the Exercise Price and the number of Warrant Shares issuable upon exercise of this Warrant then in effect shall be readjusted, effective as of the date when the Board of Directors determines not to distribute such shares, evidences of indebtedness, assets, rights, cash or warrants, as the case may be, to the Exercise Price that would then be in effect and the number of Warrant Shares that would then be issuable upon exercise of this Warrant if such record date had not been fixed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. <u>Certain Repurchases of Common Stock</u>. In case the Company effects a Pro Rata Repurchase of Common Stock,
then the Exercise Price shall be reduced to the price determined by multiplying the Exercise Price in effect immediately prior to the Effective Date of such Pro Rata Repurchase by a fraction of which the numerator shall be (i) the product of
(x) the number of shares of Common Stock outstanding immediately before such Pro Rata Repurchase and (y) the Average Market Price of a share of Common Stock determined as of the date of the first public announcement by the Company or any
of its Affiliates of the intent to effect such Pro Rata Repurchase, minus (ii) the aggregate purchase price of the Pro Rata Repurchase, and of which the denominator shall be the product of (i) the number of shares of Common Stock
outstanding immediately prior to such Pro Rata Repurchase minus the number of shares of Common Stock so repurchased and (ii) the Average Market Price per share of Common Stock determined as of the date of the first public announcement by the
Company or any of its Affiliates of the intent to effect such Pro Rata Repurchase. In such event, the number of shares of Common Stock issuable upon the exercise of this Warrant shall be increased to the number obtained by dividing (x) the
product of (1) the number of Warrant Shares issuable upon the exercise of this Warrant before such adjustment, and (2) the Exercise Price in effect immediately prior to the Pro Rata Repurchase giving rise to this adjustment by (y) the
new Exercise Price determined in accordance with the immediately preceding sentence. For the avoidance of doubt, no increase to the Exercise Price or decrease in the number of Warrant Shares issuable upon exercise of this Warrant shall be made
pursuant to this Section 13(B)(v).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. <u>Other Events</u>. For so long as the Original Warrantholder holds this Warrant or any portion thereof, if
any event occurs as to which the provisions of this Section 13 are not strictly applicable or, if strictly applicable, would not, in the good faith judgment of the Board of Directors of the Company, fairly and adequately protect the purchase
rights of the Warrants in accordance with the essential intent and principles of such provisions, then the Board of Directors shall make such adjustments in the application of such provisions, in accordance with such essential intent and principles,
as shall be reasonably necessary, in the

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good faith opinion of the Board of Directors, to protect such purchase rights as aforesaid. The Exercise Price or the number of Warrant Shares shall not be adjusted in the event of a change in the par value of the Common Stock or a change in the jurisdiction of incorporation of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. <u>Business Combinations</u>. In case of any Business Combination or reclassification of Common Stock (other than a reclassification of Common Stock referred to in Section 13(B)(i)), the Warrantholder's right to receive Warrant Shares upon exercise of this Warrant shall be converted into the right to exercise this Warrant to acquire the number of shares of stock or other securities or property (including cash) which the Common Stock issuable (at the time of such Business Combination or reclassification) upon exercise of this Warrant immediately prior to such Business Combination or reclassification would have been entitled to receive upon consummation of such Business Combination or reclassification; and in any such case, if necessary, the provisions set forth herein with respect to the rights and interests thereafter of the Warrantholder shall be appropriately adjusted so as to be applicable, as nearly as may reasonably be, to the Warrantholder's right to exercise this Warrant in exchange for any shares of stock or other securities or property pursuant to this paragraph. In determining the kind and amount of stock, securities or the property receivable upon exercise of this Warrant following the consummation of such Business Combination, if the holders of Common Stock have the right to elect the kind or amount of consideration receivable upon consummation of such Business Combination, then the consideration that the Warrantholder shall be entitled to receive upon exercise shall be deemed to be the types and amounts of consideration received by the majority of all holders of the shares of common stock that affirmatively make an election (or of all such holders if none make an election).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. <u>Rounding of Calculations; Minimum Adjustments</u>. All calculations under this Section 13 shall be made to the nearest one-tenth (1/10th) of a cent or to the nearest one-hundredth (1/100th) of a share, as the case may be. Any provision of this Section 13 to the contrary notwithstanding, no adjustment in the Exercise Price or the number of Warrant Shares shall be made if the amount of such adjustment would be less than $0.01 or one-tenth (1/10th) of a share of Common Stock, but any such amount shall be carried forward and an adjustment with respect thereto shall be made at the time of and together with any subsequent adjustment which, together with such amount and any other amount or amounts so carried forward, shall aggregate $0.01 or 1/10th of a share of Common Stock, or more.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. <u>Timing of Issuance of Additional Common Stock Upon Certain Adjustments</u>. In any case in which the provisions of this Section 13 shall require that an adjustment shall become effective immediately after a record date for an event, the Company may defer until the occurrence of such event (i) issuing to the Warrantholder of this Warrant exercised after such record date and before the occurrence of such event the additional shares of Common Stock issuable upon such exercise by reason of the adjustment required by such event over and above the shares of Common Stock issuable upon such exercise before giving effect to such adjustment and (ii) paying to such Warrantholder any amount of cash in lieu of a fractional share of Common Stock; *provided*, *however*, that the Company upon request shall deliver to such Warrantholder a due bill or other appropriate instrument evidencing such Warrantholder's right to receive such additional shares, and such cash, upon the occurrence of the event requiring such adjustment.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. <u>Statement Regarding Adjustments</u>. Whenever the Exercise Price or the number of Warrant Shares shall be adjusted as provided in this Section 13, the Company shall forthwith file at the principal office of the Company a statement showing in reasonable detail the facts requiring such adjustment and the Exercise Price that shall be in effect and the number of Warrant Shares after such adjustment, and the Company shall also cause a copy of such statement to be sent by mail, first class postage prepaid, to each Warrantholder at the address appearing in the Company's records.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. <u>Notice of Adjustment Event</u>. In the event that the Company shall propose to take any action of the type described in this Section 13 (but only if the action of the type described in this Section 13 would result in an adjustment in the Exercise Price or the number of Warrant Shares or a change in the type of securities or property to be delivered upon exercise of this Warrant), the Company shall give notice to the Warrantholder, in the manner set forth in this Section 13(G), which notice shall specify the record date, if any, with respect to any such action and the approximate date on which such action is to take place. Such notice shall also set forth the facts with respect thereto as shall be reasonably necessary to indicate the effect on the Exercise Price and the number, kind or class of shares or other securities or property which shall be deliverable upon exercise of this Warrant. In the case of any action which would require the fixing of a record date, such notice shall be given at least 10 days prior to the date so fixed, and in case of all other action, such notice shall be given at least 15 days prior to the taking of such proposed action. Failure to give such notice, or any defect therein, shall not affect the legality or validity of any such action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H. <u>Proceedings Prior to Any Action Requiring Adjustment</u>. As a condition precedent to the taking of any action which would require an adjustment pursuant to this Section 13, the Company shall take any action which may be necessary, including obtaining regulatory, New York Stock Exchange, NASDAQ Stock Market or other applicable national securities exchange or stockholder approvals or exemptions, as applicable, in order that the Company may thereafter validly and legally issue as fully paid and nonassessable all shares of Common Stock that the Warrantholder is entitled to receive upon exercise of this Warrant pursuant to this Section 13.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. <u>Adjustment Rules</u>. Any adjustments pursuant to this Section 13 shall be made successively whenever an event referred to herein shall occur. If an adjustment in Exercise Price made hereunder would reduce the Exercise Price to an amount below par value of the Common Stock, then such adjustment in Exercise Price made hereunder shall reduce the Exercise Price to the par value of the Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>No Impairment</u>. The Company will not, by amendment of its Charter or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed hereunder by the Company, but will at all times in good faith assist in the carrying out of all the provisions of this Warrant and in taking of all such action as may be necessary or appropriate in order to protect the rights of the Warrantholder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Governing Law</u>. **This Warrant will be governed by and construed in accordance with the federal law of the United States if and to the extent such law is applicable, and otherwise in accordance with the laws of the State of New York applicable to contracts made and to be performed entirely within such State. Each of the Company and the Warrantholder agrees (a) to submit to the exclusive jurisdiction and venue of the United States District Court for the District of Columbia for any civil action, suit or proceeding arising out of or relating to this Warrant or the transactions contemplated hereby, and (b) that notice may be served upon the Company at the address in Section 19 below and upon the Warrantholder at the address for the Warrantholder set forth in the registry maintained by the Company pursuant to Section 9 hereof. To the extent permitted by applicable law, each of the Company and the Warrantholder hereby unconditionally waives trial by jury in any civil legal action or proceeding relating to the Warrant or the transactions** contemplated hereby or thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Binding Effect</u>. This Warrant shall be binding upon any successors or assigns of

the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Amendments</u>. This Warrant may be amended and the observance of any term of this Warrant may be waived only with the written consent of the Company and the Warrantholder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Prohibited Actions</u>. The Company agrees that it will not take any action which would entitle the Warrantholder to an adjustment of the Exercise Price if the total number of shares of Common Stock issuable after such action upon exercise of this Warrant, together with all shares of Common Stock then outstanding and all shares of Common Stock then issuable upon the exercise of all outstanding options, warrants, conversion and other rights, would exceed the total number of shares of Common Stock then authorized by its Charter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Notices</u>. Any notice, request, instruction or other document to be given hereunder by any party to the other will be in writing and will be deemed to have been duly given (a) on the date of delivery if delivered personally, or by facsimile, upon confirmation of receipt, or (b) on the second Business Day following the date of dispatch if delivered by a recognized next day courier service. All notices hereunder shall be delivered as set forth in Item 7 of Schedule A hereto, or pursuant to such other instructions as may be designated in writing by the party to receive such notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. <u>Entire Agreement</u>. This Warrant, the forms attached hereto and Schedule A hereto (the terms of which are incorporated by reference herein), and the Warrant Agreement (including all documents incorporated therein), contain the entire agreement between the parties with respect to the subject matter hereof and supersede all prior and contemporaneous arrangements or undertakings with respect thereto.

*[Remainder of page intentionally left blank]* 

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**[Form of Notice of Exercise]** 

**Date:** 

TO: **[Company]**

RE: Exercise of Warrant

The undersigned, pursuant to the provisions set forth in the attached Warrant, hereby notifies the Company of its intention to exercise its option with respect to the number of shares of the Common Stock set forth below covered by such Warrant. Pursuant to Section 4 of the Warrant, the undersigned acknowledges that the Company may settle this exercise in net cash or shares. Cash to be paid pursuant to a Net Cash Settlement or payment of fractional shares in connection with a Net Share Settlement should be deposited to the account of the Warrantholder set forth below. Common Stock to be delivered pursuant to a Net Share Settlement shall be delivered to the Warrantholder as indicated below. A new warrant evidencing the remaining shares of Common Stock covered by such Warrant, but not yet subscribed for and purchased, if any, should be issued in the name set forth below.

Number of Warrant Shares: _______________________

Aggregate Exercise Price:_________________________

Address for Delivery of Warrant Shares: _____________

---

| | |
|:---|:---|
|  Wire Instructions: |  |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds to be delivered: | **$** |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name of Bank: |  |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;City/ State of Bank: |  |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ABA Number of Bank |  |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SWIFT # |  |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name of Account: |  |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Account Number at Bank: |  |

---

---

| |
|:---|
|  Securities to be issued to: |
|  If in book-entry form through the Depositary: |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depositary Account Number: |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name of Agent Member: |
|  If in certificated form: |
|  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Social Security Number or Other Identifying Number: |

---

------

---

| |
|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Street Address: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;City, State and Zip Code: |

---

Any unexercised Warrants evidenced by the exercising Warrantholder's interest in the Warrant:

---

| |
|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Social Security Number or Other Identifying Number: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Street Address: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;City, State and Zip Code: |

---

---

| |
|:---|
| Holder: |
| By: |
| Name: |
| Title: |

---

------

IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by a duly authorized officer.

Dated: ________

---

| | |
|:---|:---|
| **COMPANY:** REPUBLIC AIRWAYS HOLDINGS INC. | **COMPANY:** REPUBLIC AIRWAYS HOLDINGS INC. |
| By: |  |
|  | Name: Bryan Bedford |
|  | Title: President and Chief Executive Officer |
| **Attest:** | **Attest:** |
| By: |  |
|  | Name: Joseph P. Allman |
|  | Title: Senior Vice President and Chief Financial Officer |

---

------

**SCHEDULE A** 

<u>Item 1</u> 

Name: Republic Airways Holdings Inc.

Corporate or other organizational form: Corporation

Jurisdiction of organization: Delaware

<u>Item 2</u> 

Exercise Price: $415.00

<u>Item 3</u> 

Issue Date:

<u>Item 4</u> 

Date of Warrant Agreement between the Company and the United States Department of the Treasury: May 12, 2020, as amended and restated on November 18, 2020

<u>Item 5</u> 

Number of shares of Common Stock:

<u>Item 6</u> 

Company's address:

Republic Airways Holdings Inc.

8909 Purdue Road, Suite 300

Indianapolis, Indiana 46266

<u>Item 7</u> 

Notice information:

Republic Airways Holdings Inc.

8909 Purdue Road, Suite 300

Indianapolis, Indiana 46266

Attention: Chad Pulley

with a copy to

Simpson Thacher & Bartlett LLP

900 G Street, N.W.

Washington, DC 20001

Attention: Joshua Ford Bonnie and Jonathan R. Ozner

------

**SCHEDULE 1** 

**<u>WARRANT SHARES FORMULA</u>**

(a) The Exercise Price shall equal the Equity Value (as defined in Annex B), subject to approval of such Equity Value by Treasury (such approval not to be unreasonably delayed or withheld), determined as of (i) either April 9, 2020 or (ii) if the Company has determined the Equity Value as of the last day of the Company's first fiscal quarter in 2020, as of the last day of the Company's first fiscal quarter in 2020 *divided by* the Fully Diluted Outstanding Common Stock (as defined in Annex B).

(b) The number of Warrant Shares for which Warrants issued on each Warrant Closing Date shall be exercisable shall equal:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) On the date of the Initial Closing, the quotient of (x) the product of the full outstanding principal
amount of the Promissory Note on the date of the Initial Closing multiplied *by* 0.1 *divided by* (y) the Exercise Price; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) On each Warrant Closing Date subsequent to the date of the Initial Closing, the quotient of (x) the
product of the amount by which the aggregate principal amount of the Promissory Note is increased on such Warrant Closing Date multiplied *by* 0.1 *divided by* (y) the Exercise Price.

## Exhibit 10.31

**Exhibit 10.31.1** 

**WARRANT AGREEMENT** 

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**TABLE OF CONTENTS** 

---

| | | |
|:---|:---|:---|
|  |  | **Page** |
|  | Article I |  |
|  | Closing |  |
| 1.1 | Issuance | 1 |
| 1.2 | Initial Closing; Warrant Closing Date | 1 |
| 1.3 | Interpretation | 2 |
|  | Article II |  |
|  | Representations and Warranties |  |
| 2.1 | Representations and Warranties of the Company | 3 |
|  | Article III |  |
|  | Covenants |  |
| 3.1 | Commercially Reasonable Efforts | 5 |
| 3.2 | Expenses | 6 |
| 3.3 | Sufficiency of Authorized Common Stock | 6 |
|  | Article IV |  |
|  | Additional Agreements |  |
| 4.1 | Investment | 7 |
| 4.2 | Legends | 7 |
| 4.3 | Certain Transactions | 7 |
| 4.4 | Transfer of Warrants and Warrant Shares | 7 |
| 4.5 | Registration Rights | 7 |
| 4.6 | Voting of Warrant Shares | 19 |
|  | Article V |  |
|  | Miscellaneous |  |
| 5.1 | Survival of Representations and Warranties | 19 |
| 5.2 | Amendment | 20 |
| 5.3 | Waiver of Conditions | 20 |
| 5.4 | **Governing Law: Submission to Jurisdiction, Etc.** | 20 |
| 5.5 | Notices | 20 |
| 5.6 | Definitions | 21 |
| 5.7 | Assignment | 21 |
| 5.8 | Severability | 21 |
| 5.9 | No Third Party Beneficiaries | 22 |

---

-i-

------

LIST OF ANNEXES

---

| | |
|:---|:---|
| ANNEX A: | FORM OF OPINION |
| ANNEX B: | FORM OF WARRANT |
| SCHEDULE 1: | WARRANT SHARES FORMULA |
| SCHEDULE 2: | CAPITALIZATION |
| SCHEDULE 3: | REQUIRED STOCKHOLDER APPROVALS |

---

-ii-

------

**INDEX OF DEFINED TERMS** 

---

| | |
|:---|:---|
| Term | Location of<br> Definition |
|  Affiliate | Annex B |
|  Agreement | Recitals |
|  Appraisal Procedure | Annex B |
|  Board of Directors | 2.1(g) |
|  Business Combination | Annex B |
|  Business Day | Annex B |
|  Capitalization Date | 2.1(b) |
|  Closing | 1.2(a) |
|  Common Stock | Annex B |
|  Company | Recitals |
|  Company Reports | 2.1(h)(i) |
|  Exchange Act | Annex B |
|  Governmental Authority | 5.6(a) |
|  Holder | 4.5(l)(i) |
|  Indemnitee | 4.5(h)(i) |
|  Initial Closing | 1.2(a) |
|  IPO | 4.5(r) |
|  Lien | 5.6(c) |
|  Material Adverse Effect | 5.6(d) |
|  Organizational Documents | 5.6(e) |
|  Pending Underwritten Offering | 4.5(m) |
|  Piggyback Registration | 4.5(b)(iv) |
|  Promissory Note | Recitals |
|  register; registered; registration | 4.5(l)(ii) |
|  Registrable Securities | 4.5(l)(iii) |
|  Registration Expenses | 4.5(l)(iv) |
|  Rule 144; Rule 144A; Rule 159A; Rule 405; Rule 415 | 4.5(l)(v) |
|  SEC | 2.1(i) |
|  Securities Act | Annex B |
|  Selling Expenses | 4.5(l)(vi) |
|  Shelf Registration Statement | 4.5(b)(ii) |
|  Special Registration | 4.5(j) |
|  Stockholder Proposals | 3.1(b) |
|  Subsidiary | 5.6(f) |
|  Transfer | 4.4 |
|  Treasury | Recitals |
|  Warrant Closing Date | 1.2(a) |
|  Warrants | Recitals |
|  Warrant Shares | Annex B |

---

-iii-

------

WARRANT AGREEMENT dated as of January 15, 2021 (this "<u>Agreement</u>"), between REPUBLIC AIRWAYS HOLDINGS INC., a corporation organized under the laws of Delaware (the "<u>Company</u>") and the UNITED STATES DEPARTMENT OF THE TREASURY ("<u>Treasury</u>").

WHEREAS, the Company has requested that Treasury provide financial assistance to the Recipient (as defined in the PSP2 Agreement) that shall exclusively be used for the continuation of payment of employee wages, salaries, and benefits as is permissible under Section 402(a) of Title IV of Division N of the Consolidated Appropriations Act, 2021 (December 27, 2020), as the same may be amended from time to time, and Treasury is willing to do so on the terms and conditions set forth in that certain Payroll Support Program Extension Agreement dated as of January 15, 2021, between REPUBLIC AIRWAYS, INC. and Treasury (the "<u>PSP2 Agreement</u>"); and

WHEREAS, as appropriate compensation to the Federal Government of the United States of America for the provision of financial assistance under the PSP2 Agreement, REPUBLIC AIRWAYS, INC. has agreed to issue a note to be repaid to Treasury on the terms and conditions set forth in the promissory note dated as of January 15, 2021, issued by REPUBLIC AIRWAYS, INC., in the name of Treasury as the holder (the "<u>Promissory Note</u>") and agreed to issue in a private placement warrants to purchase the number of shares of its Common Stock determined in accordance with Schedule 1 to this Agreement (the "<u>Warrants</u>") to Treasury;

**NOW, THEREFORE**, in consideration of the premises, and of the representations, warranties, covenants and agreements set forth herein, the parties agree as follows:

Article I

**Closing** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 <u>Issuance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On the terms and subject to the conditions set forth in this Agreement, the Company agrees to issue to Treasury, on each Warrant Closing Date, Warrants for a number of shares of Common Stock determined by the formula set forth in <u>Schedule 1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 <u>Initial Closing; Warrant Closing Date</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On the terms and subject to the conditions set forth in this Agreement, the closing of the initial issuance of the Warrants (the "<u>Initial Closing</u>") will take place on or before the 90th day after the Closing Date (as defined in the Promissory Note) or, if on the 90th day after the Closing Date the principal amount of the Promissory Note is $0, the first date on which such principal amount is increased. After the Initial Closing, the closing of any subsequent issuance will take place on the date of each increase, if any, of the principal amount of the Promissory Note (each subsequent closing, together with the Initial Closing, a "<u>Closing</u>" and each such date a "<u>Warrant Closing Date</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) On each Warrant Closing Date, the Company will issue to Treasury a duly executed Warrant or Warrants with an Exercise Price determined by the formula set forth in paragraph (a) <u>of Schedule 1</u> for a number of shares of Common Stock determined by the formula set forth in paragraph (b) of <u>Schedule 1</u>, as evidenced by one or more certificates dated the Warrant Closing Date and bearing appropriate legends as hereinafter provided for and in substantially the form attached hereto as <u>Annex B</u>.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) On each Warrant Closing Date, the Company shall deliver to Treasury (i) a written opinion from counsel to the Company (which may be internal counsel) addressed to Treasury and dated as of such Warrant Closing Date, in substantially the form attached hereto as <u>Annex A</u> and (ii) a certificate executed by the chief executive officer, president, executive vice president, chief financial officer, principal accounting officer, treasurer or controller confirming that the representations and warranties of the Company in this Agreement are true and correct with the same force and effect as though expressly made at and as of such Warrant Closing Date and the Company has complied with all agreements on its part to be performed or satisfied hereunder at or prior to such Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) On the initial Warrant Closing Date, the Company shall deliver to Treasury (i) such customary certificates of resolutions or other action, incumbency certificates and/or other certificates of the chief executive officer, president, executive vice president, chief financial officer, principal accounting officer, treasurer or controller as Treasury may require evidencing the identity, authority and capacity of each such officer thereof authorized to act as such officer in connection with this Agreement and (ii) customary resolutions or evidence of corporate authorization, secretary's certificates and such other documents and certificates (including Organizational Documents and good standing certificates) as Treasury may reasonably request relating to the organization, existence and good standing of the Company and any other legal matters relating to the Company, this Agreement, the Warrants or the transactions contemplated hereby or thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 <u>Interpretation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) When a reference is made in this Agreement to "Recitals," "Articles," "Sections," or "Annexes" such reference shall be to a Recital, Article or Section of, or Annex to, this Warrant Agreement, unless otherwise indicated. The terms defined in the singular have a comparable meaning when used in the plural, and vice versa. References to "herein", "hereof", "hereunder" and the like refer to this Agreement as a whole and not to any particular section or provision, unless the context requires otherwise. The table of contents and headings contained in this Agreement are for reference purposes only and are not part of this Agreement. Whenever the words "include," "includes" or "including" are used in this Agreement, they shall be deemed followed by the words "without limitation." No rule of construction against the draftsperson shall be applied in connection with the interpretation or enforcement of this Agreement, as this Agreement is the product of negotiation between sophisticated parties advised by counsel. All references to "$" or "dollars" mean the lawful currency of the United States of America. Except as expressly stated in this Agreement, all references to any statute, rule or regulation are to the statute, rule or regulation as amended, modified, supplemented or replaced from time to time (and, in the case of statutes, include any rules and regulations promulgated under the statute) and to any section of any statute, rule or regulation include any successor to the section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Capitalized terms not defined herein have the meanings ascribed thereto in Annex B.

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Article II

**Representations and Warranties** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>Representations and Warranties of the Company</u>. The Company represents and warrants to Treasury that as of the date hereof and each Warrant Closing Date (or such other date specified herein):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Existence, Qualification and</u> <u>Power</u>. The Company is duly organized or formed, validly existing and, if applicable, in good standing under the Laws of the jurisdiction of its incorporation or organization, and the Company and each Subsidiary (a) has all requisite power and authority and all requisite governmental licenses, authorizations, consents and approvals to (i) own or lease its assets and carry on its business and (ii) execute, deliver and perform its obligations under the this Agreement and the Warrants, and (b) is duly qualified and is licensed and, as applicable, in good standing under the Laws of each jurisdiction where its ownership, lease or operation of properties or the conduct of its business requires such qualification or license, except, in each case referred to in clause (a)(i) or (b), to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Capitalization</u>. The authorized capital stock of the Company, and the outstanding capital stock of the Company (including securities convertible into, or exercisable or exchangeable for, capital stock of the Company) as of the most recent fiscal month-end preceding the date hereof (the "<u>Capitalization Date</u>") is set forth in Schedule 2. The outstanding shares of capital stock of the Company have been duly authorized and are validly issued and outstanding, fully paid and nonassessable, and subject to no preemptive rights, other than, if applicable, those set forth on Schedule 3 (and were not issued in violation of any preemptive rights). Except as provided in the Warrants, as of the date hereof, the Company does not have outstanding any securities or other obligations providing the holder the right to acquire Common Stock that is not reserved for issuance as specified on Schedule 2, and the Company has not made any other commitment to authorize, issue or sell any Common Stock. Since the Capitalization Date, the Company has not issued any shares of Common Stock, other than (i) shares issued upon the exercise of stock options or delivered under other equity-based awards or other convertible securities or warrants which were issued and outstanding on the Capitalization Date and disclosed on Schedule 2 and (ii) shares disclosed on Schedule 2 as it may be updated by written notice from the Company to Treasury in connection with each Warrant Closing Date. Each holder of 5% or more of any class of capital stock of the Company and such holder's primary address are set forth in Schedule 2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Governmental Authorization; Other Consents</u>. No approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any Governmental Authority or any other Person is necessary or required in connection with the execution, delivery or performance by, or enforcement against, the Company of this Agreement, except for such approvals, consents, exemptions, authorizations, actions or notices that have been duly obtained, taken or made and are in full force and effect.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Execution and Delivery; Binding Effect</u>. This Agreement has been duly authorized, executed and delivered by the Company. This Agreement constitutes a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, receivership, moratorium or other Laws affecting creditors' rights generally and by general principles of equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>T</u><u>he Warrants and Warrant Shares</u>. Each Warrant has been duly authorized and, when executed and delivered as contemplated hereby, will constitute a valid and legally binding obligation of the Company enforceable against the Company in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, receivership, moratorium or other Laws affecting creditors' rights generally and by general principles of equity. The Warrant Shares have been duly authorized and reserved for issuance upon exercise of the Warrants and when so issued in accordance with the terms of the Warrants will be validly issued, fully paid and non-assessable, subject, if applicable, to the approvals of its stockholders set forth on <u>Schedule 3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Authorization, Enforceability</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company has the corporate power and authority to execute and deliver this Agreement and the Warrants and, subject, if applicable, to the approvals of its stockholders set forth on <u>Schedule 3</u>, to carry out its obligations hereunder and thereunder (which includes the issuance of the Warrants and Warrant Shares). The execution, delivery and performance by the Company of this Agreement and the Warrants and the consummation of the transactions contemplated hereby and thereby have been duly authorized by all necessary corporate or other organizational action on the part of the Company and its stockholders, and no further approval or authorization is required on the part of the Company, subject, in each case, if applicable, to the approvals of its stockholders set forth on <u>Schedule 3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The execution, delivery and performance by the Company of this Agreement do not and will not (a) contravene the terms of its Organizational Documents, (b) conflict with or result in any breach or contravention of, or the creation of any Lien (as defined in the Promissory Note) under, or require any payment to be made under (i) any material Contractual Obligation to which the Company is a party or affecting the Company or the properties of the Company or any Subsidiary or (ii) any material order, injunction, writ or decree of any Governmental Authority or any arbitral award to which the Company or any Subsidiary or its property is subject or (c) violate any Law, except to the extent that such violation could not reasonably be expected to have Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Such filings and approvals as are required to be made or obtained under any state "blue sky" laws, and such filings and approvals as have been made or obtained, no notice to, filing with, exemption or review by, or authorization, consent or approval of, any Governmental Authority is required to be made or obtained by the Company in connection with the execution, delivery and performance by the Company of this Agreement and the consummation by the Company of the issuance of the Warrants except for any such notices, filings, exemptions, reviews, authorizations, consents and approvals the failure of which to make or obtain would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Anti-takeover Provisions and Rights Plan</u>. The Board of Directors of the Company (the "<u>Board of Directors</u>") has taken all necessary action, and will in the future take any necessary action, to ensure that the transactions contemplated by this Agreement and the Warrants and the consummation of the transactions contemplated hereby and thereby, including the exercise of the Warrants in accordance with their terms, will be exempt from any anti-takeover or similar provisions of the Company's Organizational Documents, and any other provisions of any applicable "moratorium", "control share", "fair price", "interested stockholder" or other anti-takeover laws and regulations of any jurisdiction, whether existing on the date hereof or implemented after the date hereof. The Company has taken all actions necessary, and will in the future take any necessary action, to render any stockholders' rights plan of the Company inapplicable to this Agreement and the Warrants and the consummation of the transactions contemplated hereby and thereby, including the exercise of the Warrants by Treasury in accordance with its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Reports</u>. Since December 31, 2017, the Company and each Subsidiary has timely filed all reports, registrations, documents, filings, statements and submissions, together with any amendments thereto, that it was required to file with any Governmental Authority (the foregoing, collectively, the "<u>Company Reports</u>") and has paid all fees and assessments due and payable in connection therewith, except, in each case, as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. As of their respective dates of filing, the Company Reports complied in all material respects with all statutes and applicable rules and regulations of the applicable Governmental Authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Offering of Securities</u>. Neither the Company nor any person acting on its behalf has taken any action (including any offering of any securities of the Company under circumstances which would require the integration of such offering with the offering of any of the Warrants under the Securities Act, and the rules and regulations of the Securities and Exchange Commission (the "<u>SEC</u>") promulgated thereunder), which might subject the offering, issuance or sale of any of the Warrants to Treasury pursuant to this Agreement to the registration requirements of the Securities Act

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Brokers and Finders</u>. No broker, finder or investment banker is entitled to any financial advisory, brokerage, finder's or other fee or commission in connection with this Agreement or the Warrants or the transactions contemplated hereby or thereby based upon arrangements made by or on behalf of the Company or any Subsidiary for which Treasury could have any liability.

Article III

**Covenants** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>Commercially Reasonable Efforts</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the terms and conditions of this Agreement, each of the parties will use its commercially reasonable efforts in good faith to take, or cause to be taken, all actions, and to do, or cause to be done, all things necessary, proper or desirable, or advisable under applicable laws, to enable consummation of the transactions contemplated hereby and shall use commercially reasonable efforts to cooperate with the other party to that end.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Company is required to obtain any stockholder approvals set forth on <u>Schedule 3</u>, then the Company shall comply with this Section 3.1(b). The Company shall call a special meeting of its stockholders, as promptly as practicable following the Initial Closing, to vote on proposals (collectively, the "<u>Stockholder Proposals</u>") to amend the Company's Organizational Documents to increase the number of authorized shares of Common Stock to at least such number as shall be sufficient to permit the full exercise of the Warrants for Common Stock and comply with the other provisions of this Section 3.1(b). The Board of Directors shall recommend to the Company's stockholders that such stockholders vote in favor of the Stockholder Proposals. In the event that the approval of any of the Stockholder Proposals is not obtained at such special stockholders meeting, the Company shall include a proposal to approve (and the Board of Directors shall recommend approval of) each such proposal at a meeting of its stockholders no less than once in each subsequent six-month period beginning on March 31, 2021 until all such approvals are obtained or made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <u>Expenses</u>. The Company shall pay (i) all reasonable out-of-pocket expenses incurred by Treasury (including the reasonable fees, charges and disbursements of any counsel for Treasury) in connection with the preparation, negotiation, execution, delivery and administration of this Agreement and the Warrants, any other agreements or documents executed in connection herewith or therewith, or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated), and (ii) all out-of-pocket expenses incurred by Treasury (including the fees, charges and disbursements of any counsel for Treasury), in connection with the enforcement or protection of its rights in connection with this Agreement and the Warrants, any other agreements or documents executed in connected herewith or therewith, or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated), including all such out-of-pocket expenses incurred during any workout, restructuring, negotiations or enforcement in respect of such Warrant Agreement, Warrant and other agreements or documents executed in connection herewith or therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 <u>Sufficiency of Authorized Common Stock</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) During the period from each Warrant Closing Date (or, if the approval of the Stockholder Proposals is required, the date of such approval) until the date on which no Warrants remain outstanding, the Company shall at all times have reserved for issuance, free of preemptive or similar rights, a sufficient number of authorized and unissued Warrant Shares to effectuate such exercise. Nothing in this Section 3.3 shall preclude the Company from satisfying its obligations in respect of the exercise of the Warrants by delivery of shares of Common Stock which are held in the treasury of the Company.

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Article IV

**Additional Agreements** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Investment</u> <u>Purposes</u>. Treasury acknowledges that the Warrants and the Warrant Shares have not been registered under the Securities Act or under any state securities laws. Treasury (a) is acquiring the Warrants pursuant to an exemption from registration under the Securities Act solely for investment without a view to sell and with no present intention to distribute them to any person in violation of the Securities Act or any applicable U.S. state securities laws; (b) will not sell or otherwise dispose of any of the Warrants or the Warrant Shares, except in compliance with the registration requirements or exemption provisions of the Securities Act and any applicable U.S. state securities laws; and (c) has such knowledge and experience in financial and business matters and in investments of this type that it is capable of evaluating the merits and risks of the Warrants and the Warrant Shares and of making an informed investment decision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <u>Legends</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Treasury agrees that all certificates or other instruments representing the Warrants and the Warrant Shares will bear a legend substantially to the following effect:

"THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION STATEMENT RELATING THERETO IS IN EFFECT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT AND SUCH LAWS."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that any Warrants or Warrant Shares (i) become registered under the Securities Act or (ii) are eligible to be transferred without restriction in accordance with Rule 144 or another exemption from registration under the Securities Act (other than Rule 144A), the Company shall issue new certificates or other instruments representing such Warrants or Warrant Shares, which shall not contain the legend in Section 4.2(a) above; *provided* that Treasury surrenders to the Company the previously issued certificates or other instruments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 <u>Certain Transactions</u>. The Company will not merge or consolidate with, or sell, transfer or lease all or substantially all of its property or assets to, any other party unless the successor, transferee or lessee party (or its ultimate parent entity), as the case may be (if not the Company), expressly assumes the due and punctual performance and observance of each and every covenant, agreement and condition of this Agreement and the Warrants to be performed and observed by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 <u>Transfer of Warrants and Warrant Shares</u>. Subject to compliance with applicable securities laws, Treasury shall be permitted to transfer, sell, assign or otherwise dispose of ("<u>Transfer</u>") all or a portion of the Warrants or Warrant Shares at any time, and the Company shall take all steps as may be reasonably requested by Treasury to facilitate the Transfer of the Warrants and the Warrant Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 <u>Registration Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Unless and until the Company becomes subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act, the Company shall have no obligation to comply with the provisions of this Section 4.5; *provided* that the Company covenants and agrees that it shall comply with this Section 4.5 as soon as practicable after the date that it becomes subject to such reporting requirements.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Registration</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Subject to the terms and conditions of this Agreement, the Company covenants and agrees that as soon as practicable after the date that the Company becomes subject to the reporting requirements of Sections 13 or 15(d) of the Exchange Act (and in any event no later than 180 days thereafter), the Company shall prepare and file with the SEC a Shelf Registration Statement covering the maximum number of Registrable Securities (or otherwise designate an existing Shelf Registration Statement filed with the SEC to cover the Registrable Securities) that may be issued pursuant to this Agreement and any Warrants outstanding at that time, and, to the extent the Shelf Registration Statement has not theretofore been declared effective or is not automatically effective upon such filing, the Company shall use reasonable best efforts to cause such Shelf Registration Statement to be declared or become effective and to keep such Shelf Registration Statement continuously effective and in compliance with the Securities Act and usable for resale of such Registrable Securities for a period from the date of its initial effectiveness until such time as there are no Registrable Securities remaining (including by refiling such Shelf Registration Statement (or a new Shelf Registration Statement) if the initial Shelf Registration Statement expires). So long as the Company is a well-known seasoned issuer (as defined in Rule 405 under the Securities Act) at the time of filing of the Shelf Registration Statement with the SEC, such Shelf Registration Statement shall be designated by the Company as an automatic Shelf Registration Statement. Notwithstanding the foregoing, if on the date hereof the Company is not eligible to file a registration statement on Form S-3, then the Company shall not be obligated to file a Shelf Registration Statement unless and until it is so eligible and is requested to do so in writing by Treasury.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Any registration pursuant to Section 4.5(b)(i) shall be effected by means of a shelf registration on an appropriate form under Rule 415 under the Securities Act (a "<u>Shelf Registration Statement</u>"). If Treasury or any other Holder intends to distribute any Registrable Securities by means of an underwritten offering it shall promptly so advise the Company and the Company shall take all reasonable steps to facilitate such distribution, including the actions required pursuant to Section 4.5(d); *provided* that the Company shall not be required to facilitate an underwritten offering of Registrable Securities unless the total number of Warrant Shares and Warrants expected to be sold in such offering exceeds, or are exercisable for, at least 20% of the total number of Warrant Shares for which Warrants issued under this Agreement could be exercised (giving effect to the anti-dilution adjustments in Warrants); and *provided*, *further* that the Company shall not be required to facilitate more than two completed underwritten offerings within any 12-month period. The lead underwriters in any such distribution shall be selected by the Holders of a majority of the Registrable Securities to be distributed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Company shall not be required to effect a registration (including a resale of Registrable Securities from an effective Shelf Registration Statement) or an underwritten offering pursuant to Section 4.5(b): (A) with respect to securities that are not Registrable Securities; or (B) if the Company has notified Treasury and all other Holders that in the good faith judgment of the Board of Directors, it would be materially detrimental to the Company or its securityholders for such registration or underwritten

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offering to be effected at such time, in which event the Company shall have the right to defer such registration or offering for a period of not more than 45 days after receipt of the request of Treasury or any other Holder; *provided* that such right to delay a registration or underwritten offering shall be exercised by the Company (1) only if the Company has generally exercised (or is concurrently exercising) similar black-out rights against holders of similar securities that have registration rights and (2) not more than three times in any 12-month period and not more than 90 days in the aggregate in any 12-month period. The Company shall notify the Holders of the date of any anticipated termination of any such deferral period prior to such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) If during any period when an effective Shelf Registration Statement is not available, the Company proposes to register any of its equity securities, other than a registration pursuant to Section 4.5(b)(i) or a Special Registration, and the registration form to be filed may be used for the registration or qualification for distribution of Registrable Securities, the Company will give prompt written notice to Treasury and all other Holders of its intention to effect such a registration (but in no event less than ten days prior to the anticipated filing date) and will include in such registration all Registrable Securities with respect to which the Company has received written requests for inclusion therein within ten Business Days after the date of the Company's notice (a "<u>Piggyback Registration</u>"). Any such person that has made such a written request may withdraw its Registrable Securities from such Piggyback Registration by giving written notice to the Company and the managing underwriter, if any, on or before the fifth Business Day prior to the planned effective date of such Piggyback Registration. The Company may terminate or withdraw any registration under this Section 4.5(b)(iv) prior to the effectiveness of such registration, whether or not Treasury or any other Holders have elected to include Registrable Securities in such registration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) If the registration referred to in Section 4.5(b)(iv) is proposed to be underwritten, the Company will so advise Treasury and all other Holders as a part of the written notice given pursuant to Section 4.5(b)(iv). In such event, the right of Treasury and all other Holders to registration pursuant to Section 4.5(b) will be conditioned upon such persons' participation in such underwriting and the inclusion of such person's Registrable Securities in the underwriting if such securities are of the same class of securities as the securities to be offered in the underwritten offering, and each such person will (together with the Company and the other persons distributing their securities through such underwriting) enter into an underwriting agreement in customary form with the underwriter or underwriters selected for such underwriting by the Company; *provided* that Treasury (as opposed to other Holders) shall not be required to indemnify any person in connection with any registration. If any participating person disapproves of the terms of the underwriting, such person may elect to withdraw therefrom by written notice to the Company, the managing underwriters and Treasury (if Treasury is participating in the underwriting).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) If either (x) the Company grants "piggyback" registration rights to one or more third parties to include their securities in an underwritten offering under the Shelf Registration Statement pursuant to Section 4.5(b)(ii) or (y) a Piggyback Registration under Section 4.5(b)(iv) relates to an underwritten offering on behalf of the Company, and in either case the managing underwriters advise the Company that in their reasonable opinion the number of securities requested to be included in such offering exceeds the number which can be sold without adversely affecting the marketability of such offering (including an adverse effect on the per share offering price), the Company will include in such offering only such number of securities that in the reasonable opinion of such managing underwriters can be sold without adversely affecting the marketability of the offering (including an adverse effect on the per share offering price), which securities will be so included in the following order of priority: (A) first, in the case of a Piggyback Registration under Section 4.5(b)(iv), the securities the Company proposes to sell, (B) then the Registrable Securities of Treasury and all other Holders who have requested inclusion of Registrable Securities pursuant to Section 4.5(b)(ii) or Section 4.5(b)(iv), as applicable, *pro rata* on the basis of the aggregate number of such securities or shares owned by each such person and (C) lastly, any other securities of the Company that have been requested to be so included, subject to the terms of this Agreement; *provided, however,* that if the Company has, prior to the date hereof, entered into an agreement with respect to its securities that is inconsistent with the order of priority contemplated hereby then it shall apply the order of priority in such conflicting agreement to the extent that this Agreement would otherwise result in a breach under such agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Expenses of Registration</u>. All Registration Expenses incurred in connection with any registration, qualification or compliance hereunder shall be borne by the Company. All Selling Expenses incurred in connection with any registrations hereunder shall be borne by the holders of the securities so registered *pro rata* on the basis of the aggregate offering or sale price of the securities so registered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Obligations of the Company</u>. The Company shall use its reasonable best efforts, for so long as there are Registrable Securities outstanding, to take such actions as are under its control to not become an ineligible issuer (as defined in Rule 405 under the Securities Act) and to remain a well-known seasoned issuer (as defined in Rule 405 under the Securities Act) if it has such status on the date hereof or becomes eligible for such status in the future. In addition, whenever required to effect the registration of any Registrable Securities or facilitate the distribution of Registrable Securities pursuant to an effective Shelf Registration Statement, the Company shall, as expeditiously as reasonably practicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Prepare and file with the SEC a prospectus supplement with respect to a proposed offering of Registrable Securities pursuant to an effective registration statement, subject to Section 4.5(e), keep such registration statement effective and keep such prospectus supplement current until the securities described therein are no longer Registrable Securities. The plan of distribution included in such registration statement, or, as applicable, prospectus supplement thereto, shall include, among other things, an underwritten offering, ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers, block trades, privately negotiated transactions, the writing or settlement of options or other derivative transactions and any other method permitted pursuant to applicable law, and any combination of any such methods of sale.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Prepare and file with the SEC such amendments and supplements to the applicable registration statement and the prospectus or prospectus supplement used in connection with such registration statement as may be necessary to comply with the provisions of the Securities Act with respect to the disposition of all securities covered by such registration statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Furnish to the Holders and any underwriters such number of copies of the applicable registration statement and each such amendment and supplement thereto (including in each case all exhibits) and of a prospectus, including a preliminary prospectus, in conformity with the requirements of the Securities Act, and such other documents as they may reasonably request in order to facilitate the disposition of Registrable Securities owned or to be distributed by them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Use its reasonable best efforts to register and qualify the securities covered by such registration statement under such other securities or Blue Sky laws of such jurisdictions as shall be reasonably requested by the Holders or any managing underwriter(s), to keep such registration or qualification in effect for so long as such registration statement remains in effect, and to take any other action which may be reasonably necessary to enable such seller to consummate the disposition in such jurisdictions of the securities owned by such Holder; *provided* that the Company shall not be required in connection therewith or as a condition thereto to qualify to do business or to file a general consent to service of process in any such states or jurisdictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Notify each Holder of Registrable Securities at any time when a prospectus relating thereto is required to be delivered under the Securities Act of the happening of any event as a result of which the applicable prospectus, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Give written notice to the Holders:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) when any registration statement filed pursuant to Section 4.5(b) or any amendment thereto has been filed with the SEC (except for any amendment effected by the filing of a document with the SEC pursuant to the Exchange Act) and when such registration statement or any post-effective amendment thereto has become effective;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) of any request by the SEC for amendments or supplements to any registration statement or the prospectus included therein or for additional information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) of the issuance by the SEC of any stop order suspending the effectiveness of any registration statement or the initiation of any proceedings for that purpose;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) of the receipt by the Company or its legal counsel of any notification with respect to the suspension of the qualification of the Common Stock for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) of the happening of any event that requires the Company to make changes in any effective registration statement or the prospectus related to the registration statement in order to make the statements therein not misleading (which notice shall be accompanied by an instruction to suspend the use of the prospectus until the requisite changes have been made); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) if at any time the representations and warranties of the Company contained in any underwriting agreement contemplated by Section 4.5(d)(x) cease to be true and correct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) Use its reasonable best efforts to prevent the issuance or obtain the withdrawal of any order suspending the effectiveness of any registration statement referred to in Section 4.5(d)(vi)(C) at the earliest practicable time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) Upon the occurrence of any event contemplated by Section 4.5(d)(v), 4.5(d)(vi)(E) or 4.5(e), promptly prepare a post-effective amendment to such registration statement or a supplement to the related prospectus or file any other required document so that, as thereafter delivered to the Holders and any underwriters, the prospectus will not contain an untrue statement of a material fact or omit to state any material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. If the Company notifies the Holders in accordance with Section 4.5(d)(vi)(E) to suspend the use of the prospectus until the requisite changes to the prospectus have been made, then the Holders and any underwriters shall suspend use of such prospectus and use their reasonable best efforts to return to the Company all copies of such prospectus (at the Company's expense) other than permanent file copies then in such Holders' or underwriters' possession. The total number of days that any such suspension may be in effect in any 12-month period shall not exceed 90 days. The Company shall notify the Holders of the date of any anticipated termination of any such suspension period prior to such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) Use reasonable best efforts to procure the cooperation of the Company's transfer agent in settling any offering or sale of Registrable Securities, including with respect to the transfer of physical stock certificates into book-entry form in accordance with any procedures reasonably requested by the Holders or any managing underwriter(s).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) If an underwritten offering is requested pursuant to Section 4.5(b)(ii), enter into an underwriting agreement in customary form, scope and substance and take all such other actions reasonably requested by the Holders of a majority of the Registrable Securities being sold in connection therewith or by the managing underwriter(s), if any, to expedite or facilitate the underwritten disposition of such Registrable Securities, and in connection therewith in any underwritten offering (including making members of management and executives of the Company available to participate in "road shows", similar sales events and other marketing activities), (A) make such representations and warranties to the Holders that are selling stockholders and the managing underwriter(s), if any, with respect to the business of the Company and its subsidiaries, and the Shelf Registration Statement, prospectus and documents, if any, incorporated or deemed to be

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incorporated by reference therein, in each case, in customary form, substance and scope, and, if true, confirm the same if and when requested, (B) use its reasonable best efforts to furnish the underwriters with opinions and "10b-5" letters of counsel to the Company, addressed to the managing underwriter(s), if any, covering the matters customarily covered in such opinions and letters requested in underwritten offerings, (C) use its reasonable best efforts to obtain "cold comfort" letters from the independent certified public accountants of the Company (and, if necessary, any other independent certified public accountants of any business acquired by the Company for which financial statements and financial data are included in the Shelf Registration Statement) who have certified the financial statements included in such Shelf Registration Statement, addressed to each of the managing underwriter(s), if any, such letters to be in customary form and covering matters of the type customarily covered in "cold comfort" letters, (D) if an underwriting agreement is entered into, the same shall contain indemnification provisions and procedures customary in underwritten offerings (provided that Treasury shall not be obligated to provide any indemnity), and (E) deliver such documents and certificates as may be reasonably requested by the Holders of a majority of the Registrable Securities being sold in connection therewith, their counsel and the managing underwriter(s), if any, to evidence the continued validity of the representations and warranties made pursuant to clause (A) above and to evidence compliance with any customary conditions contained in the underwriting agreement or other agreement entered into by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) Make available for inspection by a representative of Holders that are selling stockholders, the managing underwriter(s), if any, and any attorneys or accountants retained by such Holders or managing underwriter(s), at the offices where normally kept, during reasonable business hours, financial and other records, pertinent corporate documents and properties of the Company, and cause the officers, directors and employees of the Company to supply all information in each case reasonably requested (and of the type customarily provided in connection with due diligence conducted in connection with a registered public offering of securities) by any such representative, managing underwriter(s), attorney or accountant in connection with such Shelf Registration Statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) Use reasonable best efforts to cause all such Registrable Securities to be listed on each national securities exchange on which similar securities issued by the Company are then listed or, if no similar securities issued by the Company are then listed on any national securities exchange, use its reasonable best efforts to cause all such Registrable Securities to be listed on such securities exchange as Treasury may designate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) If requested by Holders of a majority of the Registrable Securities being registered and/or sold in connection therewith, or the managing underwriter(s), if any, promptly include in a prospectus supplement or amendment such information as the Holders of a majority of the Registrable Securities being registered and/or sold in connection therewith or managing underwriter(s), if any, may reasonably request in order to permit the intended method of distribution of such securities and make all required filings of such prospectus supplement or such amendment as soon as practicable after the Company has received such request.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) Timely provide to its security holders earning statements satisfying the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Suspension of Sales</u>. Upon receipt of written notice from the Company that a registration statement, prospectus or prospectus supplement contains or may contain an untrue statement of a material fact or omits or may omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading or that circumstances exist that make inadvisable use of such registration statement, prospectus or prospectus supplement, Treasury and each Holder of Registrable Securities shall forthwith discontinue disposition of Registrable Securities until Treasury and/or Holder has received copies of a supplemented or amended prospectus or prospectus supplement, or until Treasury and/or such Holder is advised in writing by the Company that the use of the prospectus and, if applicable, prospectus supplement may be resumed, and, if so directed by the Company, Treasury and/or such Holder shall deliver to the Company (at the Company's expense) all copies, other than permanent file copies then in Treasury and/or such Holder's possession, of the prospectus and, if applicable, prospectus supplement covering such Registrable Securities current at the time of receipt of such notice. The total number of days that any such suspension may be in effect in any 12-month period shall not exceed 90 days. The Company shall notify Treasury prior to the anticipated termination of any such suspension period of the date of such anticipated termination

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Termination of Registration Rights</u>. A Holder's registration rights as to any securities held by such Holder shall not be available unless such securities are Registrable Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Furnishing Information</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Neither Treasury nor any Holder shall use any free writing prospectus (as defined in Rule 405) in connection with the sale of Registrable Securities without the prior written consent of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) It shall be a condition precedent to the obligations of the Company to take any action pursuant to Section 4.5(d) that Treasury and/or the selling Holders and the underwriters, if any, shall furnish to the Company such information regarding themselves, the Registrable Securities held by them and the intended method of disposition of such securities as shall be required to effect the registered offering of their Registrable Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company agrees to indemnify each Holder and, if a Holder is a person other than an individual, such Holder's officers, directors, employees, agents, representatives and Affiliates, and each Person, if any, that controls a Holder within the meaning of the Securities Act (each, an "<u>Indemnitee</u>"), against any and all losses, claims, damages, actions, liabilities, costs and expenses (including reasonable fees, expenses and disbursements of attorneys and other professionals incurred in connection with investigating, defending, settling, compromising or paying any such losses, claims, damages, actions, liabilities, costs and expenses), joint or several, arising out of or based

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upon any untrue statement or alleged untrue statement of material fact contained in any registration statement, including any preliminary prospectus or final prospectus contained therein or any amendments or supplements thereto or any documents incorporated therein by reference or contained in any free writing prospectus (as such term is defined in Rule 405) prepared by the Company or authorized by it in writing for use by such Holder (or any amendment or supplement thereto); or any omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; *provided*, that the Company shall not be liable to such Indemnitee in any such case to the extent that any such loss, claim, damage, liability (or action or proceeding in respect thereof) or expense arises out of or is based upon (A) an untrue statement or omission made in such registration statement, including any such preliminary prospectus or final prospectus contained therein or any such amendments or supplements thereto or contained in any free writing prospectus (as such term is defined in Rule 405) prepared by the Company or authorized by it in writing for use by such Holder (or any amendment or supplement thereto), in reliance upon and in conformity with information regarding such Indemnitee or its plan of distribution or ownership interests which was furnished in writing to the Company by such Indemnitee for use in connection with such registration statement, including any such preliminary prospectus or final prospectus contained therein or any such amendments or supplements thereto, or (B) offers or sales effected by or on behalf of such Indemnitee "by means of" (as defined in Rule 159A) a "free writing prospectus" (as defined in Rule 405) that was not authorized in writing by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If the indemnification provided for in Section 4.5(h)(i) is unavailable to an Indemnitee with respect to any losses, claims, damages, actions, liabilities, costs or expenses referred to therein or is insufficient to hold the Indemnitee harmless as contemplated therein, then the Company, in lieu of indemnifying such Indemnitee, shall contribute to the amount paid or payable by such Indemnitee as a result of such losses, claims, damages, actions, liabilities, costs or expenses in such proportion as is appropriate to reflect the relative fault of the Indemnitee, on the one hand, and the Company, on the other hand, in connection with the statements or omissions which resulted in such losses, claims, damages, actions, liabilities, costs or expenses as well as any other relevant equitable considerations. The relative fault of the Company, on the one hand, and of the Indemnitee, on the other hand, shall be determined by reference to, among other factors, whether the untrue statement of a material fact or omission to state a material fact relates to information supplied by the Company or by the Indemnitee and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission; the Company and each Holder agree that it would not be just and equitable if contribution pursuant to this Section 4.5(h)(ii) were determined by *pro rata* allocation or by any other method of allocation that does not take account of the equitable considerations referred to in Section 4.5(h)(i). No Indemnitee guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from the Company if the Company was not guilty of such fraudulent misrepresentation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Assignment of Registration Rights</u>. The rights of Treasury to registration of Registrable Securities pursuant to Section 4.5(b) may be assigned by Treasury to a transferee or assignee of Registrable Securities in connection with a transfer of a total number of Warrant Shares and/or Warrants exercisable for at least 20% of the total number of Warrant Shares for which Warrants issued and to be issued under this Agreement could be exercised (giving effect to the anti-dilution adjustments in Warrants); *provided*, *however*, the transferor shall, within ten days after such transfer, furnish to the Company written notice of the name and address of such transferee or assignee and the number and type of Registrable Securities that are being assigned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Clear Market</u>. With respect to any underwritten offering of Registrable Securities by Treasury or other Holders pursuant to this Section 4.5, the Company agrees not to effect (other than pursuant to such registration or pursuant to a Special Registration) any public sale or distribution, or to file any Shelf Registration Statement (other than such registration or a Special Registration) covering, in the case of an underwritten offering of Common Stock or Warrants, any of its equity securities, or, in each case, any securities convertible into or exchangeable or exercisable for such securities, during the period not to exceed 30 days following the effective date of such offering. The Company also agrees to cause such of its directors and senior executive officers to execute and deliver customary lock-up agreements in such form and for such time period up to 30 days as may be requested by the managing underwriter. "<u>Special Registration</u>" means the registration of (A) equity securities and/or options or other rights in respect thereof solely registered on Form S-4 or Form S-8 (or successor form) or (B) shares of equity securities and/or options or other rights in respect thereof to be offered to directors, members of management, employees, consultants, customers, lenders or vendors of the Company or Company Subsidiaries or in connection with dividend reinvestment plans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Rule 144; Rule 144A</u>. With a view to making available to Treasury and Holders the benefits of certain rules and regulations of the SEC which may permit the sale of the Registrable Securities to the public without registration, the Company agrees to use its reasonable best efforts to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (A) file with the SEC, in a timely manner, all reports and other documents required of the Company under the Exchange Act, and (B) if at any time the Company is not required to file such reports, make available, upon the request of any Holder, such information necessary to permit sales pursuant to Rule 144A (including the information required by Rule 144A(d)(4) under the Securities Act);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) so long as Treasury or a Holder owns any Registrable Securities, furnish to Treasury or such Holder forthwith upon request: a written statement by the Company as to its compliance with the reporting requirements of Rule 144 under the Securities Act, and of the Exchange Act; a copy of the most recent annual or quarterly report of the Company; and such other reports and documents as Treasury or Holder may reasonably request in availing itself of any rule or regulation of the SEC allowing it to sell any such securities to the public without registration; *provided*, *however*, that the availability of the foregoing reports on the EDGAR filing system of the SEC will be deemed to satisfy the foregoing delivery requirements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) take such further action as any Holder may reasonably request, all to the extent required from time to time to enable such Holder to sell Registrable Securities without registration under the Securities Act.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) As used in this Section 4.5, the following terms shall have the following respective meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "<u>Holder</u>" means Treasury and any other holder of Registrable Securities to whom the registration rights conferred by this Agreement have been transferred in compliance with Section 4.5(i) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "<u>Register</u>," "<u>registered</u>," and "<u>registration</u>" shall refer to a registration effected by preparing and (A) filing a registration statement in compliance with the Securities Act and applicable rules and regulations thereunder, and the declaration or ordering of effectiveness of such registration statement or (B) filing a prospectus and/or prospectus supplement in respect of an appropriate effective registration statement on Form S-3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) "<u>Registrable Securities</u>" means (A) the Warrants (subject to Section 4.5(q)) and (B) any equity securities issued or issuable directly or indirectly with respect to the securities referred to in the foregoing clause (A) by way of conversion, exercise or exchange thereof, including the Warrant Shares, or share dividend or share split or in connection with a combination of shares, recapitalization, reclassification, merger, amalgamation, arrangement, consolidation or other reorganization, *provided* that, once issued, such securities will not be Registrable Securities when (1) they are sold pursuant to an effective registration statement under the Securities Act, (2) except as provided below in Section 4.5(q), they may be sold pursuant to Rule 144 without limitation thereunder on volume or manner of sale, (3) they shall have ceased to be outstanding or (4) they have been sold in a private transaction in which the transferor's rights under this Agreement are not assigned to the transferee of the securities. No Registrable Securities may be registered under more than one registration statement at any one time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) "<u>Registration Expenses</u>" mean all expenses incurred by the Company in effecting any registration pursuant to this Agreement (whether or not any registration or prospectus becomes effective or final) or otherwise complying with its obligations under this Section 4.5, including all registration, filing and listing fees, printing expenses, fees and disbursements of counsel for the Company, blue sky fees and expenses, expenses incurred in connection with any "road show", the reasonable fees and disbursements of Treasury's counsel (if Treasury is participating in the registered offering), and expenses of the Company's independent accountants in connection with any regular or special reviews or audits incident to or required by any such registration, but shall not include Selling Expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "<u>Rule 144</u>", "<u>Rule 144A</u>", "<u>Rule 159A</u>", "<u>Rule 405</u>" and "<u>Rule 415</u>" mean, in each case, such rule promulgated under the Securities Act (or any successor provision), as the same shall be amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) "<u>Selling Expenses</u>" mean all discounts, selling commissions and stock transfer taxes applicable to the sale of Registrable Securities and fees and disbursements of counsel for any Holder (other than the fees and disbursements of Treasury's counsel included in Registration Expenses).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) At any time, any holder of Securities (including any Holder) may elect to forfeit its rights set forth in this Section 4.5 from that date forward; *provided*, that a Holder forfeiting such rights shall nonetheless be entitled to participate under Section 4.5(b)(iv) – (vi) in any Pending Underwritten Offering to the same extent that such Holder would have been entitled to if the holder had not withdrawn; and *provided*, *further*, that no such forfeiture shall terminate a Holder's rights or obligations under Section 4.5(g) with respect to any prior registration or Pending Underwritten Offering. "*Pending Underwritten Offering"* means*,* with respect to any Holder forfeiting its rights pursuant to this Section 4.5(m), any underwritten offering of Registrable Securities in which such Holder has advised the Company of its intent to register its Registrable Securities either pursuant to Section 4.5(b)(ii) or 4.5(b)(iv) prior to the date of such Holder's forfeiture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Specific Performance</u>. The parties hereto acknowledge that there would be no adequate remedy at law if the Company fails to perform any of its obligations under this Section 4.5 and that Treasury and the Holders from time to time may be irreparably harmed by any such failure, and accordingly agree that Treasury and such Holders, in addition to any other remedy to which they may be entitled at law or in equity, to the fullest extent permitted and enforceable under applicable law shall be entitled to compel specific performance of the obligations of the Company under this Section 4.5 in accordance with the terms and conditions of this Section 4.5.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>No Inconsistent Agreements</u>. The Company shall not, on or after the date hereof, enter into any agreement with respect to its securities that may impair the rights granted to Treasury and the Holders under this Section 4.5 or that otherwise conflicts with the provisions hereof in any manner that may impair the rights granted to Treasury and the Holders under this Section 4.5. In the event the Company has, prior to the date hereof, entered into any agreement with respect to its securities that is inconsistent with the rights granted to Treasury and the Holders under this Section 4.5 (including agreements that are inconsistent with the order of priority contemplated by Section 4.5(b)(vi)) or that may otherwise conflict with the provisions hereof, the Company shall use its reasonable best efforts to amend such agreements to ensure they are consistent with the provisions of this Section 4.5. Any transaction entered into by the Company that would reasonably be expected to require the inclusion in a Shelf Registration Statement or any Company Report filed with the SEC of any separate financial statements pursuant to Rule 3-05 of Regulation S-X or pro forma financial statements pursuant to Article 11 of Regulation S-X shall include provisions requiring the Company's counterparty to provide any information necessary to allow the Company to comply with its obligation hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Certain Offerings by Treasury</u>. In the case of any securities held by Treasury that cease to be Registrable Securities solely by reason of clause (2) in the definition of "Registrable Securities," the provisions of Sections 4.5(b)(ii), clauses (iv), (ix) and (x)-(xii) of Section 4.5(d), Section 4.5(h) and Section 4.5(j) shall continue to apply until such securities otherwise cease to be Registrable Securities. In any such case, an "underwritten" offering or other disposition shall include any distribution of such securities on behalf of Treasury by one or more broker-dealers, an "underwriting agreement" shall include any purchase agreement entered into by such broker-dealers, and any "registration statement" or "prospectus" shall include any offering document approved by the Company and used in connection with such distribution.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Registered Sales of the Warrant</u><u>s</u>. The Holders agree to sell the Warrants or any portion thereof under the Shelf Registration Statement only beginning 30 days after notifying the Company of any such sale, during which 30-day period Treasury and all Holders of the Warrants shall take reasonable steps to agree to revisions to the Warrants, at the expense of the Company, to permit a public distribution of the Warrants, including entering into a revised warrant agreement, appointing a warrant agent, and making the securities eligible for book entry clearing and settlement at the Depositary Trust Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>Market Stand-Off.</u> In the event of an IPO, the Company shall not be required to effect a registration (including a resale of Registrable Securities from an effective Shelf Registration Statement) or an underwritten offering pursuant to Section 4.5(b) and Treasury agrees, if requested by the managing underwriter or underwriters in such IPO, not to (i) offer for sale, sell, pledge, or otherwise dispose of (or enter into any transaction or device that is designed to, or could be expected to, result in the disposition by any person at any time in the future of) any Registrable Securities (including Registrable Securities that may be deemed to be beneficially owned by the undersigned in accordance with the rules and regulations of the SEC); (ii) enter into any swap or other derivatives transaction that transfers to another, in whole or in part, any of the economic benefits or risks of ownership of Registrable Securities, whether any such transaction is to be settled by delivery of Registrable Securities, in cash or otherwise; (iii) make any demand for or exercise any right or cause to be filed a registration statement, including any amendments thereto, with respect to the registration of any Registrable Securities; or (iv) publicly disclose the intention to do any of the foregoing, in each case (to the extent timely notified in writing by the Company or the managing underwriter or underwriters), during the period beginning seven days before and ending 90 days after the date of the underwriting agreement entered into in connection with such IPO. If requested by the managing underwriter or underwriters of any such IPO, Treasury shall execute a separate agreement to the foregoing effect. The Company may impose stop-transfer instructions with respect to Registrable Securities subject to the foregoing restriction until the end of the period referenced above. The foregoing provisions of this Section 4.5(r) shall not apply to the sale of any shares to an underwriter pursuant to an underwriting agreement, and shall be applicable only if all officers, directors, and shareholders beneficially owning more than one percent (1%) of the Company's outstanding Common Stock are subject to the same restrictions.

"IPO" means the first underwritten public offering and sale of the Common Stock for cash pursuant to an effective registration statement (other than on Form S-4, S-8 or a comparable form) under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6 <u>Voting of Warrant Shares</u>. Notwithstanding anything in this Agreement to the contrary, Treasury shall not exercise any voting rights with respect to the Warrant Shares.

Article V

**Miscellaneous** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <u>Survival of Representations and Warranties</u>. The representations and warranties of the Company made herein or in any certificates delivered in connection with the Initial Closing or any subsequent Closing shall survive such Closing without limitation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <u>Amendment</u>. No amendment of any provision of this Agreement will be effective unless made in writing and signed by an officer or a duly authorized representative of each party; *provided* that Treasury may unilaterally amend any provision of this Agreement to the extent required to comply with any changes after the date hereof in applicable federal statutes. No failure or delay by any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative of any rights or remedies provided by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 <u>Waiver of Conditions</u>. No waiver will be effective unless it is in a writing signed by a duly authorized officer of the waiving party that makes express reference to the provision or provisions subject to such waiver.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 **<u>Governing Law: Submission to Jurisdiction, Etc.</u> This Agreement will be governed by and construed in accordance with the federal law of the United States if and to the extent such law is applicable, and otherwise in accordance with the laws of the State of New York applicable to contracts made and to be performed entirely within such State. Each of the parties hereto agrees (a) to submit to the exclusive jurisdiction and venue of the United States District Court for the District of Columbia and the United States Court of Federal Claims for any and all civil actions, suits or proceedings arising out of or relating to this Agreement or the Warrants or the transactions contemplated hereby or thereby, and (b) that notice may be served upon (i) the Company at the address and in the manner set forth for notices to the Company in Section 5.5 and (ii) Treasury in accordance with federal law. To the extent permitted by applicable law, each of the parties hereto hereby unconditionally waives trial by jury in any civil legal action or proceeding relating to this Agreement or the Warrants or the transactions contemplated hereby or thereby.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 <u>Notices</u>. Any notice, request, instruction or other document to be given hereunder by any party to the other will be in writing and will be deemed to have been duly given (a) on the date of delivery if delivered personally, or by facsimile, upon confirmation of receipt, or (b) on the second Business Day following the date of dispatch if delivered by a recognized next day courier service. All notices to the Company shall be delivered as set forth below, or pursuant to such other instruction as may be designated in writing by the Company to Treasury. All notices to Treasury shall be delivered as set forth below, or pursuant to such other instructions as may be designated in writing by Treasury to the Company.

If to the Company:

Republic Airways Holdings Inc.

8909 Purdue Road, Suite 300

Indianapolis, Indiana 46266

Attention: Chad Pulley

with a copy to

Simpson Thacher & Bartlett LLP

900 G Street, N.W.

Washington, DC 20001

Attention: Joshua Ford Bonnie and Jonathan R. Ozner

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If to Treasury:

United States Department of the Treasury

1500 Pennsylvania Avenue, NW, Room 2312

Washington, D.C. 20220

Attention: Assistant General Counsel (Banking and Finance)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6 <u>Definitions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The term "<u>Governmental Authority</u>" means the government of the United States of America or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The term "<u>Laws</u>" has the meaning ascribed thereto in the Promissory Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The term "<u>Lien</u>" has the meaning ascribed thereto in the Promissory Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The term "<u>Material Adverse Effect</u>" means (a) a material adverse change in, or a material adverse effect on, the operations, business, properties, liabilities (actual or contingent), condition (financial or otherwise) or prospects of the Company and its Subsidiaries taken as a whole; or (b) a material adverse effect on (i) the ability of the Company to perform its obligations under this Agreement or any Warrant or (ii) the legality, validity, binding effect or enforceability against the Company of this Agreement or any Warrant to which it is a party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The term "<u>Organizational Documents</u>" has the meaning ascribed thereto in the Promissory Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The term "<u>Subsidiary</u>" has the meaning ascribed thereto in the Promissory Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7 <u>Assignment</u>. Neither this Agreement nor any right, remedy, obligation nor liability arising hereunder or by reason hereof shall be assignable by any party hereto without the prior written consent of the other party, and any attempt to assign any right, remedy, obligation or liability hereunder without such consent shall be void, except (a) an assignment, in the case of a Business Combination where such party is not the surviving entity, or a sale of substantially all of its assets, to the entity which is the survivor of such Business Combination or the purchaser in such sale and (b) as provided in Section 4.5.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.8 <u>Severability</u>. If any provision of this Agreement or the Warrants, or the application thereof to any person or circumstance, is determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions hereof, or the application of such provision to persons or circumstances other than those as to which it has been held invalid or unenforceable, will remain in full force and effect and shall in no way be affected, impaired or invalidated thereby, so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party. Upon such determination, the parties shall negotiate in good faith in an effort to agree upon a suitable and equitable substitute provision to effect the original intent of the parties.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.9 <u>No Third Party Beneficiaries</u>. Nothing contained in this Agreement, expressed or implied, is intended to confer upon any person or entity other than the Company and Treasury any benefit, right or remedies, except that the provisions of Section 4.5 shall inure to the benefit of the persons referred to in that Section.

\* \* \*

*[Signature page follows]* 

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective officers thereunto duly authorized, as of the date first above written.

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| | |
|:---|:---|
| THE UNITED STATES DEPARTMENT OF THE TREASURY | THE UNITED STATES DEPARTMENT OF THE TREASURY |
| By: | /s/ Steven Mnuchin |
| Name: | Steven Mnuchin |
| Title: | Secretary |
| REPUBLIC AIRWAYS HOLDINGS INC. | REPUBLIC AIRWAYS HOLDINGS INC. |
| By: | /s/ Joseph P. Allman |
| Name: Joseph P. Allman | Name: Joseph P. Allman |
| Title: Senior Vice President and Chief Financial Officer | Title: Senior Vice President and Chief Financial Officer |

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**ANNEX A** 

**<u>FORM OF OPINION</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company has been duly incorporated and is validly existing as a corporation in good standing under the laws of the state of its incorporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each of the Warrants has been duly authorized and, when executed and delivered as contemplated by the Agreement, will constitute a valid and legally binding obligation of the Company enforceable against the Company in accordance with its terms, except as the same may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors' rights generally and general equitable principles, regardless of whether such enforceability is considered in a proceeding at law or in equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The shares of Common Stock issuable upon exercise of the Warrants have been duly authorized and reserved for issuance upon exercise of the Warrants and when so issued in accordance with the terms of the Warrants will be validly issued, fully paid and non-assessable **[*insert, if applicable:*** , subject to the approvals of the Company's stockholders set forth on <u>Schedule 3</u>**<u>]</u>**<u>.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company has the corporate power and authority to execute and deliver the Agreement and the Warrants and **[*insert, if applicable:*** , subject to the approvals of the Company's stockholders set forth on <u>Schedule 3</u>**]** to carry out its obligations thereunder (which includes the issuance of the Warrants and Warrant Shares).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The execution, delivery and performance by the Company of the Agreement and the Warrants and the consummation of the transactions contemplated thereby have been duly authorized by all necessary corporate action on the part of the Company and its stockholders, and no further approval or authorization is required on the part of the Company **[*insert, if applicable:*** , subject, in each case, to the approvals of the Company's stockholders set forth on <u>Schedule 3</u>**]**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Agreement is a valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except as the same may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors' rights generally and general equitable principles, regardless of whether such enforceability is considered in a proceeding at law or in equity; *provided*, *however*, such counsel need express no opinion with respect to Section 4.5(h) or the severability provisions of the Agreement insofar as Section 4.5(h) is concerned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) No registration of the Warrant and the Common Stock issuable upon exercise of the Warrant under the U.S. Securities Act of 1933, as amended, is required for the offer and sale of the Warrant or the Common Stock issuable upon exercise of the Warrant by the Company to the Holder pursuant to and in the manner contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The Company is not required to be registered as an investment company under the Investment Company Act of 1940, as amended.

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**ANNEX B** 

**<u>FORM OF WARRANT</u>**

[SEE ATTACHED]

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**FORM OF WARRANT TO PURCHASE COMMON STOCK** 

THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION STATEMENT RELATING THERETO IS IN EFFECT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT AND SUCH LAWS.

**WARRANT** 

**to purchase** 

**Shares of Common Stock** 

**of Republic Airways Holdings Inc.** 

Issue Date:<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Definitions</u>. Unless the context otherwise requires, when used herein the following terms shall have the meanings indicated.

"*Affiliate*" means, with respect to any person, any person directly or indirectly controlling, controlled by or under common control with, such other person. For purposes of this definition, "<u>control</u>" (including, with correlative meanings, the terms "<u>controlled by</u>" and "<u>under common control with</u>") when used with respect to any person, means the possession, directly or indirectly, of the power to cause the direction of management and/or policies of such person, whether through the ownership of voting securities by contract or otherwise.

"*Aggregate Net Cash Settlement Amount*" has the meaning ascribed thereto in Section 2(A).

"*Aggregate Net Share Settlement Amount*" has the meaning ascribed thereto in Section 2(B).

"*Average Market Price*" means, with respect to any security, (i) the arithmetic average of the Market Price of such security for the 15 consecutive trading day period ending on and including the trading day immediately preceding the determination date or (ii) if the security has not been traded on any national or regional securities exchange for at least the 15 consecutive trading day period ending on and including the trading day immediately preceding the determination date and the Quotations are not available for the remainder of such period, the arithmetic average of the Market Price of such security for the trading days within such period during which the security was traded on such national securities exchange.

"*Board of Directors*" means the board of directors of the Company, including any duly authorized committee thereof.

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"*Business Combination*" means a merger, consolidation, statutory share exchange or similar transaction that requires the approval of the Company's stockholders.

"*Business Day*" means any day except Saturday, Sunday and any day on which banking institutions in the State of New York generally are authorized or required by law or other governmental actions to close; *provided* that banks shall be deemed to be generally open for business in the event of a "shelter in place" or similar closure of physical branch locations at the direction of any governmental entity if such banks' electronic funds transfer system (including wire transfers) are open for use by customers on such day.

"*Capital Stock*" means (A) with respect to any Person that is a corporation or company, any and all shares, interests, participations or other equivalents (however designated) of capital or capital stock of such Person and (B) with respect to any Person that is not a corporation or company, any and all partnership or other equity interests of such Person.

"*Charter*" means, with respect to any Person, its certificate or articles of incorporation, articles of association, or similar organizational document.

"*Common Stock*" means common stock of the Company, par value $0.001 subject to adjustment as provided in Section 13(C).

"*Company*" means the Person whose name, corporate or other organizational form and jurisdiction of organization is set forth in Item 1 of Schedule A hereto.

"*conversion*" has the meaning set forth in Section 13(B)(ii).

"*convertible securities*" has the meaning set forth in Section 13(B)(ii).

"*Equity Value*" means the aggregate fair market value of all outstanding equity securities of the Company determined by a nationally recognized independent appraiser using valuation techniques then prevailing in the securities industry, retained by the Company at its expense for this purpose and approved by Treasury in its sole discretion. The methodology used in determining the Equity Value shall take into account discounts for the minority interest represented by the Warrant Shares.

"*Exchange Act*" means the Securities Exchange Act of 1934, as amended, or any successor statute, and the rules and regulations promulgated thereunder.

"*Exercise Date*" means each date a Notice of Exercise substantially in the form annexed hereto is delivered to the Company in accordance with Section 2 hereof.

"*Exercise Price*" means the amount set forth in Item 2 of Schedule A hereto, subject to any adjustment as contemplated herein.

"*Expiration Time*" means the Original Expiration Time or, if the Warrantholder is subject to a Lockup Period at the Original Expiration Time, 5pm New York City time on the fifth Business Day immediately following the termination of such Lockup Period.

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"*Fully-Diluted Outstanding Common Stock*" means, with respect to a determination date, the number of shares of all issued and outstanding Common Stock of the Company and all Common Stock issuable upon the exercise or conversion of any outstanding security or obligation that is by its terms, directly or indirectly, convertible into or exchangeable or exercisable for Common Stock, and any option, warrant or other right to subscribe for, purchase or acquire Common Stock as of such date, whether or not such instrument is at the time exercisable, convertible or exchangeable.

"*Initial Number*" has the meaning set forth in Section 13(B)(ii)(1).

*"Issue Date"* means the date set forth in Item 3 of Schedule A hereto.

*"Lockup Period"* means any period during which the Warrantholder is subject to restrictions on resale pursuant to Section 4.5(r) of the Warrant Agreement.

"*Market Price*" means, with respect to a particular security, on any given day, the last reported sale price regular way or, in case no such reported sale takes place on such day, the average of the last closing bid and ask prices regular way, in either case on the principal national securities exchange on which the applicable securities are listed or admitted to trading, or if not listed or admitted to trading on any national securities exchange, the average of the closing bid and ask prices as furnished by two members of the Financial Industry Regulatory Authority, Inc. selected from time to time by the Company for that purpose (the "*Quotations*"). "Market Price" shall be determined without reference to after hours or extended hours trading.

"*Minimum Exercise Amount*" means 20% of the total number of the shares of Common Stock with respect to which Warrants issued pursuant to the Warrant Agreement could be exercised (including, for the avoidance of doubt, Warrants that were previously exercised), adjusted as described in Section 13 hereof.

"*Original Expiration Time*" means 5:00 p.m. New York City time on the fifth anniversary of the Issue Date of this Warrant.

"*Original Warrantholder*" means the United States Department of the Treasury. Any actions specified to be taken by the Original Warrantholder hereunder may only be taken by such Person and not by any other Warrantholder.

"*Permitted Transactions*" has the meaning set forth in Section 13(B)(ii).

"*Per Share Fair Market Value*" has the meaning set forth in Section 13(B)(iii).

"*Per Share Net Cash Settlement Amount*" means the Per Share Value of a share of Common Stock determined as of the relevant Exercise Date less the Exercise Price.

"*Per Share Net Share Settlement Amount*" means the quotient of (i) the Per Share Value of a share of Common Stock determined as of the relevant Exercise Date less the then applicable Exercise Price *divided by* (ii) the Per Share Value of a share of Common Stock determined as of the relevant Exercise Date.

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*"Per Share Value"* means (i) if the Common Stock is listed on a national securities exchange as of day preceding the determination date or the Quotations are available as of such date, the Average Market Price or (ii) if the Common Stock is not so listed, the quotient of the Equity Value determined as of the most recent Valuation Date divided by the Fully Diluted Outstanding Common Stock.

"*Person*" has the meaning given to it in Section 3(a)(9) of the Exchange Act and as used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act.

"*Pro Rata Repurchases*" means any purchase of shares of Common Stock by the Company or any Affiliate thereof pursuant to (A) any tender offer or exchange offer subject to Section 13(e) or 14(e) of the Exchange Act or Regulation 14E promulgated thereunder or (B) any other offer available to substantially all holders of Common Stock, in the case of both (A) or (B), whether for cash, shares of Capital Stock of the Company, other securities of the Company, evidences of indebtedness of the Company or any other Person or any other property (including, without limitation, shares of Capital Stock, other securities or evidences of indebtedness of a subsidiary), or any combination thereof, effected while this Warrant is outstanding. The "*Effective Date*" of a Pro Rata Repurchase shall mean the date of acceptance of shares for purchase or exchange by the Company under any tender or exchange offer which is a Pro Rata Repurchase or the date of purchase with respect to any Pro Rata Repurchase that is not a tender or exchange offer.

"*Regulatory Approvals*" with respect to the Warrantholder, means, to the extent applicable and required to permit the Warrantholder to exercise this Warrant for shares of Common Stock and to own such Common Stock without the Warrantholder being in violation of applicable law, rule or regulation, the receipt of any necessary approvals and authorizations of, filings and registrations with, notifications to, or expiration or termination of any applicable waiting period under, the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the rules and regulations thereunder.

"*SEC*" means the U.S. Securities and Exchange Commission.

"*Securities Act*" means the Securities Act of 1933, as amended, or any successor statute, and the rules and regulations promulgated thereunder.

*"trading day"* means (A) if the shares of Common Stock are not traded on any national or regional securities exchange or association or over-the-counter market, a Business Day or (B) if the shares of Common Stock are traded on any national or regional securities exchange or association or over-the-counter market, a Business Day on which such relevant exchange or quotation system is scheduled to be open for business and on which the shares of Common Stock (i) are not suspended from trading on any national or regional securities exchange or association or over-the-counter market for any period or periods aggregating one half hour or longer; and (ii) have traded at least once on the national or regional securities exchange or association or over-the-counter market that is the primary market for the trading of the shares of Common Stock.

"*Valuation Date*" means the date as of which the Equity Value was most recently determined.

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"*Warrant*" means this Warrant, issued pursuant to the Warrant Agreement.

"*Warrant Agreement*" means the Warrant Agreement, dated as of the date set forth in Item 4 of Schedule A hereto, as amended from time to time, between the Company and the United States Department of the Treasury.

"*Warrantholder*" has the meaning set forth in Section 2.

"*Warrant Shares*" has the meaning set forth in Section 2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Number of Warrant Shares; Net Exercise</u>. This certifies that, for value received, the United States Department of the Treasury or its permitted assigns (the "*Warrantholder*") is entitled, upon the terms and subject to the conditions hereinafter set forth, to acquire from the Company, in whole or in part, after the receipt of all applicable Regulatory Approvals, if any, up to an aggregate of the number of fully paid and nonassessable shares of Common Stock set forth in Item 5 of Schedule A hereto. The number of shares of Common Stock (the "*Warrant Shares*") issuable upon exercise of this Warrant and the Exercise Price are subject to adjustment as provided herein, and all references to "Common Stock," "Warrant Shares" and "Exercise Price" herein shall be deemed to include any such adjustment or series of adjustments.

Upon exercise of the Warrant in accordance with Section 3 hereof prior to the date that is 30 days prior to the Expiration Time, the Company shall elect to pay or deliver, as the case may be, to the exercising Warrantholder (a) cash ("*Net Cash Settlement*") or (b) Warrant Shares together with cash, if applicable, in lieu of delivering any fractional shares in accordance with Section 5 of this Warrant ("*Net Share Settlement*"). The Company will notify the exercising Warrantholder of its election of a settlement method within one Business Day after the relevant Exercise Date and if it fails to deliver a timely notice shall be deemed to have elected Net Share Settlement.

If the Common Stock is not listed on a national securities exchange on an Exercise Date, the Company shall be deemed to irrevocably elect Net Cash Settlement with respect to such exercise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. *Net Cash Settlement.* If the Company elects Net Cash Settlement, it shall pay to the Warrantholder cash equal to the Per Share Net Cash Settlement Amount multiplied by the number of Warrant Shares as to which the Warrant has been exercised as indicated in the Notice of Exercise (the "*Aggregate Net Cash Settlement Amount*").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. *Net Share Settlement*. If the Company elects Net Share Settlement, it shall deliver to the Warrantholder a number of shares of Common Stock equal to the Per Share Net Share Settlement Amount multiplied by the number of Warrant Shares as to which the Warrant has been exercised as indicated in the Notice of Exercise (the "*Aggregate Net Share Settlement Amount*").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Term; Method of Exercise; Valuation Requests</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Subject to Section 2, to the extent permitted by applicable laws and regulations, this Warrant is exercisable, in whole or in part, by the Warrantholder, at any time or from time to time after the execution and delivery of this Warrant by the Company on the date hereof, but in no event later than the Expiration Time.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. This Warrant may be exercised by the surrender of this Warrant and delivery of the Notice of Exercise annexed hereto, duly completed and executed on behalf of the Warrantholder, at the principal executive office of the Company located at the address set forth in Item 6 of Schedule A hereto (or such other office or agency of the Company in the United States as it may designate by notice in writing to the Warrantholder at the address of the Warrantholder appearing on the books of the Company).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. If the Common Stock is not listed on a national securities exchange on the applicable Exercise Date, the Warrantholder may only exercise this Warrant if the number of shares of Common Stock with respect to which the Warrantholder is exercising this Warrant, aggregated with the number of shares of Common Stock with respect to which the Warrantholder is exercising other warrants issued under the Warrant Agreement on the relevant Exercise Date, is no less than the Minimum Exercise Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. If the Warrantholder does not exercise this Warrant in its entirety, the Warrantholder will be entitled to receive from the Company within a reasonable time after the date on which this Warrant has been duly exercised in accordance with the terms of this Warrant, and in any event not exceeding three Business Days after the date thereof, a new warrant in substantially identical form for the purchase of that number of Warrant Shares equal to the difference between the number of Warrant Shares subject to this Warrant and the number of Warrant Shares as to which this Warrant is so exercised. Notwithstanding anything in this Warrant to the contrary, the Warrantholder hereby acknowledges and agrees that its exercise of this Warrant for Warrant Shares is subject to the condition that the Warrantholder will have first received any applicable Regulatory Approvals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. If the Common Stock is not listed on a national securities exchange the Company shall (i) upon request of a Warrantholder, promptly deliver to such Warrantholder the most recent Equity Value of the Company and (ii) obtain an Equity Value as of a date within 90 days subsequent to receipt of a written request from a Warrantholder for such valuation, provided that the Company shall not be required to obtain an Equity Value more than 4 times in any 12 month period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Method of Settlement.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. *Net Cash Settlement*. If the Company elects Net Cash Settlement, the Company shall, (A) if the Common Stock at the time of such election is not listed on a national securities exchange, use its best efforts to as soon as possible, and no more than sixty days after, and (B) if the Common Stock at the time of such election is listed on a national securities exchange, within a reasonable time, not to exceed five Business Days, after the date on which this Warrant has been duly exercised in accordance with the terms of this Warrant, pay to the exercising Warrantholder the Aggregate Net Cash Settlement Amount.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>No Fractional Warrant Shares or Scrip</u>. No fractional Warrant Shares or scrip representing fractional Warrant Shares shall be issued upon any exercise of this Warrant. In lieu of any fractional Share to which the Warrantholder would otherwise be entitled, the Warrantholder shall be entitled to receive a cash payment equal to the Per Share Value of the Common Stock determined as of the Exercise Date multiplied by such fraction of a share, less the pro-rated Exercise Price for such fractional share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>No Rights as Stockholders; Transfer Books</u>. This Warrant does not entitle the Warrantholder to any voting rights or other rights as a stockholder of the Company prior to the date of exercise hereof. The Company will at no time close its transfer books against transfer of this Warrant in any manner which interferes with the timely exercise of this Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Charges, Taxes and Expenses</u>. Issuance of certificates for Warrant Shares to the Warrantholder upon the exercise of this Warrant shall be made without charge to the Warrantholder for any issue or transfer tax or other incidental expense in respect of the issuance of such certificates, all of which taxes and expenses shall be paid by the Company; *provided*, *however*, that the Company shall not be required to pay any tax that may be payable in respect of any transfer involved in the issuance and delivery of any such certificate, or any certificates or other securities in a name other than that of the registered holder of the Warrant surrendered upon exercise of the Warrant.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Transfer/Assignment</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Subject to compliance with clause (B) of this Section 8, this Warrant and all rights hereunder are transferable, in whole or in part, upon the books of the Company by the registered holder hereof in person or by duly authorized attorney, and a new warrant shall be made and delivered by the Company, of the same tenor and date as this Warrant but registered in the name of one or more transferees, upon surrender of this Warrant, duly endorsed, to the office or agency of the Company described in Section 3. All expenses (other than stock transfer taxes) and other charges payable in connection with the preparation, execution and delivery of the new warrants pursuant to this Section 8 shall be paid by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. If and for so long as required by the Warrant Agreement, this Warrant shall contain the legend as set forth in Section 4.2(a) of the Warrant Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Exchange and Registry of Warrant</u>. This Warrant is exchangeable, upon the surrender hereof by the Warrantholder to the Company, for a new warrant or warrants of like tenor and representing the right to purchase the same aggregate number of Warrant Shares. The Company shall maintain a registry showing the name and address of the Warrantholder as the registered holder of this Warrant. This Warrant may be surrendered for exchange or exercise in accordance with its terms, at the office of the Company, and the Company shall be entitled to rely in all respects, prior to written notice to the contrary, upon such registry.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Loss, Theft, Destruction or Mutilation of Warrant</u>. Upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant, and in the case of any such loss, theft or destruction, upon receipt of a bond, indemnity or security reasonably satisfactory to the Company, or, in the case of any such mutilation, upon surrender and cancellation of this Warrant, the Company shall make and deliver, in lieu of such lost, stolen, destroyed or mutilated Warrant, a new Warrant of like tenor and representing the right to purchase the same aggregate number of Warrant Shares as provided for in such lost, stolen, destroyed or mutilated Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Saturdays, Sundays, Holidays, etc</u>. If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be a Business Day, then such action may be taken or such right may be exercised on the next succeeding day that is a Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Information</u>. With a view to making available to Warrantholders the benefits of certain rules and regulations of the SEC which may permit the sale of the Warrants and Warrant Shares to the public without registration, the Company agrees to use its reasonable best efforts to:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. (x) if the Company is subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act, file with the SEC, in a timely manner, all reports and other documents required of the Company under the Securities Act and the Exchange Act, and (y) if at any time the Company is not required to file such reports, make available, upon the request of any Warrantholder, such information necessary to permit sales pursuant to Rule 144A (including the information required by Rule 144A(d)(4) under the Securities Act);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. if the Company is subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act, furnish to any holder of Warrants or Warrant Shares forthwith upon request: a written statement by the Company as to its compliance with the reporting requirements of the Exchange Act and Rule 144(c)(1);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. furnish to any holder of Warrants or Warrant Shares forthwith upon request a copy of the Company's most recent annual or quarterly report and such other reports and documents as the Warrantholder may reasonably request; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. take such further action as any Warrantholder may reasonably request, all to the extent required from time to time to enable such Warantholder to sell Warrants or Warrant Shares without registration under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Adjustments and Other Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. <u>Adjustments at a time when the Common Stock is not listed on a national securities exchange</u>. If, at any time at which the Common Stock is not listed on a national securities exchange, any event occurs that, in the good faith judgment of the Board of Directors of the Company, would require adjustment of the Exercise Price or number of Warrant Shares issuable upon exercise of this Warrant in order to fairly and adequately protect the purchase rights of the Warrants in accordance with the essential intent and principles of the Warrant Agreement and the Warrants, then the Board of Directors shall make such adjustments in the application of such provisions, in accordance with such essential intent and principles, as shall be reasonably necessary, in the good faith opinion of the Board of Directors, to protect such purchase rights as aforesaid. The Exercise Price or the number of Warrant Shares shall not be adjusted in the event of a change in the par value of the Common Stock or a change in the jurisdiction of incorporation of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. <u>Adjustments at a time when the Common Stock is listed on a national securities exchange</u>. At any time at which the Common Stock is listed on a national securities exchange, the Exercise Price and the number of Warrant Shares issuable upon exercise of the Warrant shall be subject to adjustment from time to time as follows; *provided*, that if more than one subsection of this Section 13(B) is applicable to a single event, the subsection shall be applied that produces the largest adjustment and no single event shall cause an adjustment under more than one subsection of this Section 13(B) so as to result in duplication:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. <u>Stock Splits, Subdivisions, Reclassifications or Combinations</u>. If the Company shall (i) declare and pay a dividend or make a distribution on its Common Stock in shares of Common Stock, (ii) subdivide or reclassify the outstanding shares of Common Stock into a greater number of shares, or (iii) combine or reclassify the outstanding shares of Common Stock into a smaller number of shares, the number of Warrant Shares issuable upon exercise of this Warrant at the time of the record date for such dividend or distribution or the effective date of such subdivision,

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combination or reclassification shall be proportionately adjusted so that the Warrantholder after such date shall be entitled to acquire the number of shares of Common Stock which such holder would have owned or been entitled to receive in respect of the shares of Common Stock subject to this Warrant after such date had this Warrant been exercised immediately prior to such date. In such event, the Exercise Price in effect at the time of the record date for such dividend or distribution or the effective date of such subdivision, combination or reclassification shall be adjusted to the number obtained by dividing (x) the product of (1) the number of Warrant Shares issuable upon the exercise of this Warrant before such adjustment and (2) the Exercise Price in effect immediately prior to the record or effective date, as the case may be, for the dividend, distribution, subdivision, combination or reclassification giving rise to this adjustment by (y) the new number of Warrant Shares issuable upon exercise of the Warrant determined pursuant to the immediately preceding sentence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. <u>Certain Issuances of Common Stock or Convertible Securities</u>. If the Company shall issue shares of Common Stock (or rights or warrants or other securities exercisable or convertible into or exchangeable (collectively, a "*conversion*") for shares of Common Stock) (collectively, "*convertible securities*") (other than in Permitted Transactions (as defined below) or a transaction to which subsection (i) of this Section 13(B) is applicable) without consideration or at a consideration per share (or having a conversion price per share) that is less than 90% of the Average Market Price determined as of the date of the agreement on pricing such shares (or such convertible securities) then, in such event:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. the number of Warrant Shares issuable upon the exercise of this Warrant immediately prior to the date of the
agreement on pricing of such shares (or of such convertible securities) (the "*Initial Number*") shall be increased to the number obtained by multiplying the Initial Number by a fraction (A) the numerator of which shall be the
sum of (x) the number of shares of Common Stock of the Company outstanding on such date and (y) the number of additional shares of Common Stock issued (or into which convertible securities may be exercised or convert) and (B) the
denominator of which shall be the sum of (I) the number of shares of Common Stock outstanding on such date and (II) the number of shares of Common Stock which the aggregate consideration receivable by the Company for the total number of
shares of Common Stock so issued (or into which convertible securities may be exercised or convert) would purchase at the Average Market Price determined as of the date of the agreement on pricing such shares (or such convertible securities); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. the Exercise Price payable upon exercise of the Warrant shall be adjusted by multiplying such Exercise Price in
effect immediately prior to the date of the agreement on pricing of such shares (or of such convertible securities) by a fraction, the numerator of which

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shall be the number of shares of Common Stock issuable upon exercise of this Warrant prior to such date and the denominator of which shall be the number of shares of Common Stock issuable upon exercise of this Warrant immediately after the adjustment described in clause (1) above.

For purposes of the foregoing, the aggregate consideration receivable by the Company in connection with the issuance of such shares of Common Stock or convertible securities shall be deemed to be equal to the sum of the net offering price (including the Fair Market Value of any non-cash consideration and after deduction of any related expenses payable to third parties) of all such securities plus the minimum aggregate amount, if any, payable upon exercise or conversion of any such convertible securities into shares of Common Stock; and "*Permitted Transactions*" shall mean issuances (i) as consideration for or to fund the acquisition of businesses and/or related assets, (ii) in connection with employee benefit plans and compensation related arrangements in the ordinary course and consistent with the "Republic Airways Holdings Inc. 2020 Omnibus Incentive Plan" attached hereto as Exhibit A or any subsequent incentive plan that replaces the plan attached as Exhibit A and that is (x) approved by the Board of Directors, (y) consistent with industry practice and (z) substantially similar to the Republic Airways Holdings Inc. 2020 Omnibus Incentive Plan, (iii) in connection with a public or broadly marketed offering and sale of Common Stock or convertible securities for cash conducted by the Company or its affiliates pursuant to registration under the Securities Act or Rule 144A thereunder on a basis consistent with capital raising transactions by comparable institutions and (iv) in connection with the exercise of preemptive rights on terms existing as of the Issue Date. Any adjustment made pursuant to this Section 13(B)(ii) shall become effective immediately upon the date of such issuance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. <u>Other Distributions</u>. In case the Company shall fix a record date for the making of a distribution to all holders of shares of its Common Stock of securities, evidences of indebtedness, assets, cash, rights or warrants (excluding dividends of its Common Stock and other dividends or distributions referred to in Section 13(B)(i)), in each such case, the Exercise Price in effect prior to such record date shall be reduced immediately thereafter to the price determined by multiplying the Exercise Price in effect immediately prior to the reduction by the quotient of (x) the Average Market Price of the Common Stock determined as of the first date on which the Common Stock trades regular way on the principal national securities exchange on which the Common Stock is listed or admitted to trading without the right to receive such distribution, minus the amount of cash and/or the Fair Market Value of the securities, evidences of indebtedness, assets, rights or warrants to be so distributed in respect of one share of Common Stock (such amount and/or Fair Market Value, the "*Per Share Fair Market Value*") divided by (y) the Average Market Price specified in clause (x); such adjustment shall be made successively whenever such a record date is fixed. In such event, the number of Warrant Shares issuable upon the exercise of this Warrant shall be increased to the number obtained by dividing (x) the product of (1) the number of

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Warrant Shares issuable upon the exercise of this Warrant before such adjustment, and (2) the Exercise Price in effect immediately prior to the distribution giving rise to this adjustment by (y) the new Exercise Price determined in accordance with the immediately preceding sentence. In the event that such distribution is not so made, the Exercise Price and the number of Warrant Shares issuable upon exercise of this Warrant then in effect shall be readjusted, effective as of the date when the Board of Directors determines not to distribute such shares, evidences of indebtedness, assets, rights, cash or warrants, as the case may be, to the Exercise Price that would then be in effect and the number of Warrant Shares that would then be issuable upon exercise of this Warrant if such record date had not been fixed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. <u>Certain Repurchases of Common Stock</u>. In case the Company effects a Pro Rata Repurchase of Common Stock, then the Exercise Price shall be reduced to the price determined by multiplying the Exercise Price in effect immediately prior to the Effective Date of such Pro Rata Repurchase by a fraction of which the numerator shall be (i) the product of (x) the number of shares of Common Stock outstanding immediately before such Pro Rata Repurchase and (y) the Average Market Price of a share of Common Stock determined as of the date of the first public announcement by the Company or any of its Affiliates of the intent to effect such Pro Rata Repurchase, minus (ii) the aggregate purchase price of the Pro Rata Repurchase, and of which the denominator shall be the product of (i) the number of shares of Common Stock outstanding immediately prior to such Pro Rata Repurchase minus the number of shares of Common Stock so repurchased and (ii) the Average Market Price per share of Common Stock determined as of the date of the first public announcement by the Company or any of its Affiliates of the intent to effect such Pro Rata Repurchase. In such event, the number of shares of Common Stock issuable upon the exercise of this Warrant shall be increased to the number obtained by dividing (x) the product of (1) the number of Warrant Shares issuable upon the exercise of this Warrant before such adjustment, and (2) the Exercise Price in effect immediately prior to the Pro Rata Repurchase giving rise to this adjustment by (y) the new Exercise Price determined in accordance with the immediately preceding sentence. For the avoidance of doubt, no increase to the Exercise Price or decrease in the number of Warrant Shares issuable upon exercise of this Warrant shall be made pursuant to this Section 13(B)(v).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. <u>Other Events</u>. For so long as the Original Warrantholder holds this Warrant or any portion thereof, if any event occurs as to which the provisions of this Section 13 are not strictly applicable or, if strictly applicable, would not, in the good faith judgment of the Board of Directors of the Company, fairly and adequately protect the purchase rights of the Warrants in accordance with the essential intent and principles of such provisions, then the Board of Directors shall make such adjustments in the application of such provisions, in accordance with such essential intent and principles, as shall be reasonably necessary, in the good faith opinion of the Board of Directors, to protect such purchase rights as aforesaid. The Exercise Price or the number of Warrant Shares shall not be adjusted in the event of a change in the par value of the Common Stock or a change in the jurisdiction of incorporation of the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. <u>Business Combinations</u>. In case of any Business Combination or reclassification of Common Stock (other than a reclassification of Common Stock referred to in Section 13(B)(i)), the Warrantholder's right to receive Warrant Shares upon exercise of this Warrant shall be converted into the right to exercise this Warrant to acquire the number of shares of stock or other securities or property (including cash) which the Common Stock issuable (at the time of such Business Combination or reclassification) upon exercise of this Warrant immediately prior to such Business Combination or reclassification would have been entitled to receive upon consummation of such Business Combination or reclassification; and in any such case, if necessary, the provisions set forth herein with respect to the rights and interests thereafter of the Warrantholder shall be appropriately adjusted so as to be applicable, as nearly as may reasonably be, to the Warrantholder's right to exercise this Warrant in exchange for any shares of stock or other securities or property pursuant to this paragraph. In determining the kind and amount of stock, securities or the property receivable upon exercise of this Warrant following the consummation of such Business Combination, if the holders of Common Stock have the right to elect the kind or amount of consideration receivable upon consummation of such Business Combination, then the consideration that the Warrantholder shall be entitled to receive upon exercise shall be deemed to be the types and amounts of consideration received by the majority of all holders of the shares of common stock that affirmatively make an election (or of all such holders if none make an election).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. <u>Rounding of Calculations; Minimum Adjustments</u>. All calculations under this Section 13 shall be made to the nearest one-tenth (1/10th) of a cent or to the nearest one- hundredth (1/100th) of a share, as the case may be. Any provision of this Section 13 to the contrary notwithstanding, no adjustment in the Exercise Price or the number of Warrant Shares shall be made if the amount of such adjustment would be less than $0.01 or one-tenth (1/10th) of a share of Common Stock, but any such amount shall be carried forward and an adjustment with respect thereto shall be made at the time of and together with any subsequent adjustment which, together with such amount and any other amount or amounts so carried forward, shall aggregate $0.01 or 1/10th of a share of Common Stock, or more.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. <u>Timing of Issuance of Additional Common Stock Upon Certain Adjustments</u>. In any case in which the provisions of this Section 13 shall require that an adjustment shall become effective immediately after a record date for an event, the Company may defer until the occurrence of such event (i) issuing to the Warrantholder of this Warrant exercised after such record date and before the occurrence of such event the additional shares of Common Stock issuable upon such exercise by reason of the adjustment required by such event over and above the shares of Common Stock issuable upon such exercise before giving effect to such adjustment and (ii) paying to such Warrantholder any amount of cash in lieu of a fractional share of Common Stock; *provided*, *however*, that the Company upon request shall deliver to such Warrantholder a due bill or other appropriate instrument evidencing such Warrantholder's right to receive such additional shares, and such cash, upon the occurrence of the event requiring such adjustment.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. <u>Statement Regarding Adjustments</u>. Whenever the Exercise Price or the number of Warrant Shares shall be adjusted as provided in this Section 13, the Company shall forthwith file at the principal office of the Company a statement showing in reasonable detail the facts requiring such adjustment and the Exercise Price that shall be in effect and the number of Warrant Shares after such adjustment, and the Company shall also cause a copy of such statement to be sent by mail, first class postage prepaid, to each Warrantholder at the address appearing in the Company's records.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. <u>Notice of Adjustment Event</u>. In the event that the Company shall propose to take any action of the type described in this Section 13 (but only if the action of the type described in this Section 13 would result in an adjustment in the Exercise Price or the number of Warrant Shares or a change in the type of securities or property to be delivered upon exercise of this Warrant), the Company shall give notice to the Warrantholder, in the manner set forth in this Section 13(G), which notice shall specify the record date, if any, with respect to any such action and the approximate date on which such action is to take place. Such notice shall also set forth the facts with respect thereto as shall be reasonably necessary to indicate the effect on the Exercise Price and the number, kind or class of shares or other securities or property which shall be deliverable upon exercise of this Warrant. In the case of any action which would require the fixing of a record date, such notice shall be given at least 10 days prior to the date so fixed, and in case of all other action, such notice shall be given at least 15 days prior to the taking of such proposed action. Failure to give such notice, or any defect therein, shall not affect the legality or validity of any such action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H. <u>Proceedings Prior to Any Action Requiring Adjustment</u>. As a condition precedent to the taking of any action which would require an adjustment pursuant to this Section 13, the Company shall take any action which may be necessary, including obtaining regulatory, New York Stock Exchange, NASDAQ Stock Market or other applicable national securities exchange or stockholder approvals or exemptions, as applicable, in order that the Company may thereafter validly and legally issue as fully paid and nonassessable all shares of Common Stock that the Warrantholder is entitled to receive upon exercise of this Warrant pursuant to this Section 13.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. <u>Adjustment Rules</u>. Any adjustments pursuant to this Section 13 shall be made successively whenever an event referred to herein shall occur. If an adjustment in Exercise Price made hereunder would reduce the Exercise Price to an amount below par value of the Common Stock, then such adjustment in Exercise Price made hereunder shall reduce the Exercise Price to the par value of the Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>No Impairment</u>. The Company will not, by amendment of its Charter or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed hereunder by the Company, but will at all times in good faith assist in the carrying out of all the provisions of this Warrant and in taking of all such action as may be necessary or appropriate in order to protect the rights of the Warrantholder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Governing Law</u>. **This Warrant will be governed by and construed in accordance with the federal law of the United States if and to the extent such law is applicable, and otherwise in accordance with the laws of the State of New York applicable to contracts made and to be performed entirely within such State. Each of the Company and the Warrantholder agrees (a) to submit to the exclusive jurisdiction and venue of the United States District Court for the District of Columbia for any civil action, suit or proceeding arising out of or relating to this Warrant or the transactions contemplated hereby, and (b) that notice may be served upon the Company at the address in Section 19 below and upon the Warrantholder at the address for the Warrantholder set forth in the registry maintained by the Company pursuant to Section 9 hereof. To the extent permitted by applicable law, each of the Company and the Warrantholder hereby unconditionally waives trial by jury in any civil legal action or proceeding relating to the Warrant or the transactions contemplated hereby or thereby.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Binding Effect</u>. This Warrant shall be binding upon any successors or assigns of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Amendments</u>. This Warrant may be amended and the observance of any term of this Warrant may be waived only with the written consent of the Company and the Warrantholder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Prohibited Actions</u>. The Company agrees that it will not take any action which would entitle the Warrantholder to an adjustment of the Exercise Price if the total number of shares of Common Stock issuable after such action upon exercise of this Warrant, together with all shares of Common Stock then outstanding and all shares of Common Stock then issuable upon the exercise of all outstanding options, warrants, conversion and other rights, would exceed the total number of shares of Common Stock then authorized by its Charter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Notices</u>. Any notice, request, instruction or other document to be given hereunder by any party to the other will be in writing and will be deemed to have been duly given (a) on the date of delivery if delivered personally, or by facsimile, upon confirmation of receipt, or (b) on the second Business Day following the date of dispatch if delivered by a recognized next day courier service. All notices hereunder shall be delivered as set forth in Item 7 of Schedule A hereto, or pursuant to such other instructions as may be designated in writing by the party to receive such notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. <u>Entire Agreement</u>. This Warrant, the forms attached hereto and Schedule A hereto (the terms of which are incorporated by reference herein), and the Warrant Agreement (including all documents incorporated therein), contain the entire agreement between the parties with respect to the subject matter hereof and supersede all prior and contemporaneous arrangements or undertakings with respect thereto.

*[Remainder of page intentionally left blank]* 

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**[Form of Notice of Exercise]** 

Date:

TO: **[Company]**

RE: Exercise of Warrant

The undersigned, pursuant to the provisions set forth in the attached Warrant, hereby notifies the Company of its intention to exercise its option with respect to the number of shares of the Common Stock set forth below covered by such Warrant. Pursuant to Section 4 of the Warrant, the undersigned acknowledges that the Company may settle this exercise in net cash or shares. Cash to be paid pursuant to a Net Cash Settlement or payment of fractional shares in connection with a Net Share Settlement should be deposited to the account of the Warrantholder set forth below. Common Stock to be delivered pursuant to a Net Share Settlement shall be delivered to the Warrantholder as indicated below. A new warrant evidencing the remaining shares of Common Stock covered by such Warrant, but not yet subscribed for and purchased, if any, should be issued in the name set forth below.

---

| |
|:---|
| Number of Warrant Shares: |
| Aggregate Exercise Price:<u> </u> |
| Address for Delivery of Warrant Shares: |

---

Wire Instructions:

Proceeds to be delivered: **$** 

Name of Bank:

City/ State of Bank:

ABA Number of Bank

SWIFT #

Name of Account:

Account Number at Bank:

Securities to be issued to:

---

| |
|:---|
|  If in book-entry form through the Depositary: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depositary Account Number: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Name of Agent Member: |
|  If in certificated form: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Social Security Number or Other Identifying Number: |

---

------

---

| |
|:---|
|  Name: |
|  Street Address: |
|  City, State and Zip Code: |
|  Any unexercised Warrants evidenced by the exercising Warrantholder's interest in the Warrant: |
|  Social Security Number or Other Identifying Number: |
|  Name: |
|  Street Address: |
|  City, State and Zip Code: |

---

---

| |
|:---|
|  Holder: |
| By: |
|  Name: |
|  Title: |

---

------

IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by a duly authorized officer.

---

| | | |
|:---|:---|:---|
| Dated:  |  |  |
|  | **COMPANY:** REPUBLIC AIRWAYS HOLDINGS INC. | **COMPANY:** REPUBLIC AIRWAYS HOLDINGS INC. |
|  | By: |  |
|  |  | Name: Bryan Bedford<br> Title: President and Chief Executive Officer |
|  | **Attest:** | **Attest:** |
|  | By: |  |
|  |  | Name: Joseph P. Allman<br> Title: Senior Vice President and Chief Financial Officer |

---

**[Signature Page to Warrant]** 

------

**Exhibit A** 

<u>Item 1</u> 

Name: Republic Airways Holdings Inc.

Corporate or other organizational form: Corporation

Jurisdiction of organization: Delaware

<u>Item 2</u> 

Exercise Price: 415.00

<u>Item 3</u> 

Issue Date:

<u>Item 4</u> 

Date of Warrant Agreement between the Company and the United States Department of the Treasury: January 15, 2021

<u>Item 5</u> 

Number of shares of Common Stock:

<u>Item 6</u> 

Company's address:

Republic Airways Holdings Inc.

[Address]

<u>Item 7</u> 

Notice information:

Republic Airways Holdings Inc.

[Address]

Attention: Chad Pulley

With a copy to

Simpson Thacher & Bartlett LLP

[Address]

Attention Joshua Ford Bonnie and Jonathan R. Ozner

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**SCHEDULE 1** 

**<u>WARRANT SHARES FORMULA</u>**

(a) The Exercise Price shall equal the Equity Value (as defined in Annex B), subject to approval of such Equity Value by Treasury (such approval not to be unreasonably delayed or withheld), determined as of (i) either April 9, 2020 or (ii) if the Company has determined the Equity Value as of the last day of the Company's first fiscal quarter in 2020, as of the last day of the Company's first fiscal quarter in 2020 *divided by* the Fully Diluted Outstanding Common Stock (as defined in Annex B).

(b) The number of Warrant Shares for which Warrants issued on each Warrant Closing Date shall be exercisable shall equal:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) On the date of the Initial Closing, the quotient of (x) the product of the full outstanding principal
amount of the Promissory Note on the date of the Initial Closing multiplied *by* 0.1 *divided by* (y) the Exercise Price; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) On each Warrant Closing Date subsequent to the date of the Initial Closing, the quotient of (x) the
product of the amount by which the principal amount of the Promissory Note is increased on such Warrant Closing Date multiplied *by* 0.1 *divided by* (y) the Exercise Price.

## Exhibit 10.32

**Exhibit 10.32.1** 

**PAYROLL SUPPORT PROGRAM EXTENSION AGREEMENT** 

---

| | |
|:---|:---|
| **Recipient:** Republic Airways Inc.<br> 8909 Purdue Road, Suite 300<br> Indianapolis, IN 46268 | **PSP Participant Number:** PSA-2004031596<br> **Employer Identification Number:** 06-1562737<br> **DUNS Number:** 832661263 |
|  **Additional Recipients:** | **Additional Recipients:** |
|  **Amount of Initial Payroll Support Payment**: $56,702,934 | **Amount of Initial Payroll Support Payment**: $56,702,934 |
| The Department of the Treasury (Treasury) hereby provides Payroll Support (as defined herein) under Subtitle A of Title IV of Division N of the Consolidated Appropriations Act, 2021. The Signatory Entity named above, on behalf of itself and its Affiliates (as defined herein), agrees to comply with this Agreement and applicable Federal law as a condition of receiving Payroll Support. The Signatory Entity and its undersigned authorized representatives acknowledge that a materially false, fictitious, or fraudulent statement (or concealment or omission of a material fact) in connection with this Agreement may result in administrative remedies as well as civil and/or criminal penalties. | The Department of the Treasury (Treasury) hereby provides Payroll Support (as defined herein) under Subtitle A of Title IV of Division N of the Consolidated Appropriations Act, 2021. The Signatory Entity named above, on behalf of itself and its Affiliates (as defined herein), agrees to comply with this Agreement and applicable Federal law as a condition of receiving Payroll Support. The Signatory Entity and its undersigned authorized representatives acknowledge that a materially false, fictitious, or fraudulent statement (or concealment or omission of a material fact) in connection with this Agreement may result in administrative remedies as well as civil and/or criminal penalties. |
|  **The undersigned hereby agree to the attached Payroll Support Program Extension Agreement.** | **The undersigned hereby agree to the attached Payroll Support Program Extension Agreement.** |
| /s/ Steven Mnuchin | /s/ Bryan K. Bedford |
| Department of the Treasury | Republic Airways Inc. |
| Name: Steven Mnuchin | First Authorized Representative: Bryan K. Bedford |
| Title: Secretary | Title: President, Chief Executive Officer |
| Date: January 15, 2021 | Date: January 15, 2021 |
|  | /s/ Joseph P. Allman |
|  | Republic Airways Inc. |
|  | Second Authorized Representative: Joseph P. Allman |
|  | Title: Sr. Vice President, Chief Financial Officer |
|  | Date: January 15, 2021 |

---

OMB Approval No. 1505-0263

------

**<u>PAYROLL SUPPORT PROGRAM EXTENSION AGREEMENT</u>**

**INTRODUCTION** 

Subtitle A of Title IV of Division N of the Consolidated Appropriations Act, 2021 (PSP Extension Law) directs the Department of the Treasury (Treasury) to provide Payroll Support (as defined herein) to passenger air carriers and certain contractors that must be exclusively used for the continuation of payment of Employee Salaries, Wages, and Benefits (as defined herein). The PSP Extension Law permits Treasury to provide Payroll Support in such form, and on such terms and conditions, as the Secretary of the Treasury determines appropriate, and requires certain assurances from the Recipient (as defined herein).

This Payroll Support Program Extension Agreement, including the application and all supporting documents submitted by the Recipient and the Payroll Support Program Extension Certification attached hereto (collectively, Agreement), memorializes the binding terms and conditions applicable to the Recipient.

**DEFINITIONS** 

As used in this Agreement, the following terms shall have the following respective meanings, unless the context clearly requires otherwise. In addition, this Agreement shall be construed in a manner consistent with any public guidance Treasury may from time to time issue regarding the implementation of the PSP Extension Law.

*Additional Payroll Support Payment* means any disbursement of Payroll Support occurring after the first disbursement of Payroll Support under this Agreement.

*Affiliate* means any Person that directly or indirectly controls, is controlled by, or is under common control with, the Recipient. For purposes of this definition, "control" of a Person shall mean having the power, directly or indirectly, to direct or cause the direction of the management and policies of such Person, whether by ownership of voting equity, by contract, or otherwise.

*Benefits* means, without duplication of any amounts counted as Salary or Wages, pension expenses in respect of Employees, all expenses for accident, sickness, hospital, and death benefits to Employees, and the cost of insurance to provide such benefits; any Severance Pay or Other Benefits payable to Employees pursuant to a bona fide voluntary early retirement program or voluntary furlough; and any other similar expenses paid by the Recipient for the benefit of Employees, including any other fringe benefit expense described in lines 10 and 11 of Financial Reporting Schedule P-6, Form 41, as published by the Department of Transportation, but excluding any Federal, state, or local payroll taxes paid by the Recipient.

*Corporate Officer* means, with respect to the Recipient, its president; any vice president in charge of a principal business unit, division, or function (such as sales, administration or finance); any other officer who performs a policy-making function; or any other person who performs similar policy making functions for the Recipient. Executive officers of subsidiaries or parents of the Recipient may be deemed Corporate Officers of the Recipient if they perform such policy-making functions for the Recipient.

------

*Employee* means an individual who is employed by the Recipient and whose principal place of employment is in the United States (including its territories and possessions), including salaried, hourly, full-time, part-time, temporary, and leased employees, but excluding any individual who is a Corporate Officer or independent contractor.

*Involuntary Termination or Furlough* means the Recipient terminating the employment of one or more Employees or requiring one or more Employees to take a temporary suspension or unpaid leave for any reason, including a shut-down or slow-down of business; provided, however, that an Involuntary Termination or Furlough does not include a Permitted Termination or Furlough.

*Maximum Awardable Amount* means the amount determined by the Secretary with respect to the Recipient pursuant to section 403(a) of the PSP Extension Law.

*Payroll Support* means funds disbursed by the Secretary to the Recipient under this Agreement, including the first disbursement of Payroll Support and any Additional Payroll Support Payment.

*PSP Extension Law* means Subtitle A of Title IV of Division N of the Consolidated Appropriations Act, 2021.

*Permitted Termination or Furlough* means, with respect to an Employee, (1) a voluntary furlough, voluntary leave of absence, voluntary resignation, or voluntary retirement, (2) termination of employment resulting from such Employee's death or disability, or (3) the Recipient terminating the employment of such Employee for cause or placing such Employee on a temporary suspension or unpaid leave of absence for disciplinary reasons, in either case, as reasonably determined by the Recipient acting in good faith.

*Person* means any natural person, corporation, limited liability company, partnership, joint venture, trust, business association, governmental entity, or other entity.

*PSP1* means the Payroll Support Program established under Division A, Title IV, Subtitle B of the Coronavirus Aid, Relief, and Economic Security Act (Pub. L. No. 116-136).

*Recall* means the dispatch of a notice by the Recipient, via mail, courier, or electronic mail, to an Employee who was subject to an Involuntary Termination or Furlough notifying the Employee that (1) the Employee must, within a specified period of time that is not less than 14 days or such

other period for recall as is specified in an existing collective bargaining agreement entered into

before December 27, 2020, elect either (a) to return to employment or bypass return to employment, in accordance with an applicable collective bargaining agreement or, in the absence of a collective bargaining agreement, the Recipient's policy; or (b) to permanently separate from employment with the Recipient; and (2) failure to respond within such time period specified shall be considered an election under clause (1)(b) of this definition.

*Recipient* means, collectively, the Signatory Entity; its Affiliates that are listed on the signature page hereto as Additional Recipients; and their respective heirs, executors, administrators, successors, and assigns.

*Returning Employee* means an Employee of the Recipient who was subject to an Involuntary Termination or Furlough and who has elected to return to employment pursuant to a Recall.

------

*Salary* means, without duplication of any amounts counted as Benefits, a predetermined regular payment, typically paid on a weekly or less frequent basis but which may be expressed as an hourly, weekly, annual or other rate, as well as cost-of-living differentials, vacation time, paid time off, sick leave, and overtime pay, paid by the Recipient to its Employees, but excluding any Federal, state, or local payroll taxes paid by the Recipient.

*Secretary* means the Secretary of the Treasury.

*Severance Pay or Other Benefits* means any severance payment or other similar benefits, including cash payments, health care benefits, perquisites, the enhancement or acceleration of the payment or vesting of any payment or benefit or any other in-kind benefit payable (whether in lump sum or over time, including after October 1, 2022) by the Recipient to a Corporate Officer or Employee in connection with any termination of such Corporate Officer's or Employee's employment (including, without limitation, resignation, severance, retirement, or constructive termination), which shall be determined and calculated in respect of any Employee or Corporate Officer of the Recipient in the manner prescribed in 17 CFR 229.402(j) (without regard to its limitation to the five most highly compensated executives and using the actual date of termination of employment rather than the last business day of the Recipient's last completed fiscal year as the trigger event).

*Signatory Entity* means the passenger air carrier or contractor that has entered into this Agreement.

*Taxpayer Protection Instruments* means warrants, options, preferred stock, debt securities, notes, or other financial instruments issued by the Recipient or an Affiliates to Treasury as compensation for the Payroll Support under this Agreement, if applicable.

*Total Compensation* means compensation including salary, wages, bonuses, awards of stock, and any other financial benefits provided by the Recipient or an Affiliate, as applicable, which shall be determined and calculated for the 2019 calendar year or any applicable 12-month period in respect of any Employee or Corporate Officer of the Recipient in the manner prescribed under paragraph e.6 of the award term in 2 CFR part 170, App. A, but excluding any Severance Pay or Other Benefits in connection with a termination of employment.

*Wage* means, without duplication of any amounts counted as Benefits, a payment, typically paid on an hourly, daily, or piecework basis, including cost-of-living differentials, vacation, paid time off, sick leave, and overtime pay, paid by the Recipient to its Employees, but excluding any Federal, state, or local payroll taxes paid by the Recipient.

**PAYROLL SUPPORT PAYMENTS** 

1. Upon the execution of this Agreement by Treasury and the Recipient, the Secretary shall approve the
Recipient's application for Payroll Support.

2. The Recipient may receive Payroll Support in multiple payments up to the Maximum Awardable Amount, and the
amounts (individually and in the aggregate) and timing of such payments will be determined by the Secretary in his sole discretion. The Secretary may, in his sole discretion, increase or reduce the Maximum Awardable Amount (a) consistent with
section 403(a) of the PSP Extension Law and (b) on a pro rata basis in order to address any shortfall in available funds, pursuant to section 403(c) of the PSP Extension Law.

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3. The Secretary may determine in his sole discretion that any Payroll Support shall be conditioned on, and
subject to, compliance by the Recipient with all applicable requirements under PSP1 if the Recipient received financial assistance in PSP1, and such additional terms and conditions (including the receipt of, and any terms regarding, Taxpayer
Protection Instruments) to which the parties may agree in writing.

**TERMS AND CONDITIONS** 

<u>Retaining and Paying Employees</u> 

4. The Recipient shall use the Payroll Support exclusively for the continuation of payment of Wages, Salaries, and
Benefits to the Employees of the Recipient, including the payment of lost Wages, Salaries, and Benefits to Returning Employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. *Furloughs and Layoffs*. The Recipient shall not conduct an Involuntary Termination or Furlough of any
Employee between the date of this Agreement and March 31, 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. *Employee Salary, Wages, and Benefits* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. *Salary and Wages*. Except in the case of a Permitted Termination or Furlough, the Recipient shall not,
between the date of this Agreement and March 31, 2021, reduce, without the Employee's consent, (A) the pay rate of any Employee earning a Salary, or (B) the pay rate of any Employee earning Wages.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. *Benefits*. Except in the case of a Permitted Termination or Furlough, the Recipient shall not, between
the date of this Agreement and March 31, 2021, reduce, without the Employee's consent, the Benefits of any Employee; provided, however, that for purposes of this paragraph, personnel expenses associated with the performance of work duties,
including those described in line 10 of Financial Reporting Schedule P-6, Form 41, as published by the Department of Transportation, may be reduced to the extent the associated work duties are not performed.

4.1. If the Recipient received financial assistance in PSP1, the Recipient shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Recall, not later than 72 hours after this Agreement has been executed by each party hereto, any Employees who
were subject to an Involuntary Termination or Furlough between October 1, 2020, and the effective date of this Agreement, and enable each Returning Employee to return to employment within 30 days after making the election to do so;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. compensate, not later than 30 days after a Returning Employee returns to employment, such Returning Employee
for lost Salary, Wages, and Benefits (offset by any amounts received by the Returning Employee from the Recipient or an Affiliate as a result of such Returning Employee's Involuntary Termination or Furlough, including any Severance Pay or Other
Benefits or furlough pay) between December 1, 2020, and the effective date of this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. restore the rights and protections for any Returning Employees as if such Returning Employees had not been
subject to an Involuntary Termination or Furlough.

4.2. If the Recipient did not receive financial assistance in PSP1, the Recipient shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Recall, not later than 72 hours after this Agreement has been executed by each party hereto, any Employees who
were subject to an Involuntary Termination or Furlough between March 27, 2020, and the effective date of this Agreement, and enable each Returning Employee to return to employment within 30 days of making the election to do so;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. compensate, not later than 30 days after a Returning Employee returns to employment, such Returning Employee
for lost Salary, Wages, and Benefits (offset by any amounts received by the Returning Employee from the Recipient or an Affiliate as a result of such Returning Employee's Involuntary Termination or Furlough, including any Severance Pay or Other
Benefits or furlough pay) between December 1, 2020, and the effective date of this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. restore the rights and protections for any Returning Employees as if such Returning Employees had not been
subject to an Involuntary Termination or Furlough.

<u>Dividends and Buybacks</u> 

5. Through March 31, 2022, neither the Recipient nor any Affiliate shall, in any transaction, purchase an
equity security of the Recipient or of any direct or indirect parent company of the Recipient that, in either case, is listed on a national securities exchange.

6. Through March 31, 2022, the Recipient shall not pay dividends, or make any other capital distributions,
with respect to the common stock (or equivalent equity interest) of the Recipient.

<u>Limitations on Certain Compensation</u> 

7. Beginning October 1, 2020, and ending October 1, 2022, the Recipient and its Affiliates shall not pay
any of the Recipient's Corporate Officers or Employees whose Total Compensation exceeded $425,000 in calendar year 2019 (other than an Employee whose compensation is determined through an existing collective bargaining agreement entered into
before December 27, 2020):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Total Compensation which exceeds, during any 12 consecutive months of such two-year period, the Total Compensation the Corporate Officer or Employee received in calendar year 2019; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Severance Pay or Other Benefits in connection with a termination of employment with the Recipient which exceed
twice the maximum Total Compensation received by such Corporate Officer or Employee in calendar year 2019.

8. Beginning October 1, 2020, and ending October 1, 2022, the Recipient and its Affiliates shall not
pay, during any 12 consecutive months of such two-year period, any of the Recipient's Corporate Officers or Employees whose Total Compensation exceeded $3,000,000 in calendar year 2019 Total Compensation
in excess of the sum of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. $3,000,000; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. 50 percent of the excess over $3,000,000 of the Total Compensation received by such Corporate Officer or
Employee in calendar year 2019.

9. For purposes of determining applicable amounts under paragraphs 7 and 8 with respect to any Corporate Officer
or Employee who was employed by the Recipient or an Affiliate for less than all of calendar year 2019, the amount of Total Compensation in calendar year 2019 shall mean such Corporate Officer's or Employee's Total Compensation on an
annualized basis.

<u>Continuation of Service</u> 

10. If the Recipient is an air carrier, until March 1, 2022, the Recipient shall comply with any applicable
requirement issued by the Secretary of Transportation under section 407) of the PSP Extension Law to maintain scheduled air transportation service to any point served by the Recipient before March 1, 2020.

<u>Effective Date</u> 

11. This Agreement shall be effective as of the date of its execution by both parties.

<u>Reporting and Auditing</u> 

12. Until the calendar quarter that begins after the later of October 1, 2022, and the date on which no
Taxpayer Protection Instrument is outstanding, not later than 45 days after the end of each of the first three calendar quarters of each calendar year and 90 days after the end of each calendar year, the Signatory Entity, on behalf of itself and
each other Recipient, shall certify to Treasury that it is in compliance with the terms and conditions of this Agreement and provide a report containing the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. the amount of Payroll Support funds expended during such quarter;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. the Recipient's financial statements (audited by an independent certified public accountant, in the case
of annual financial statements);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. a copy of the Recipient's IRS Form 941 filed with respect to such quarter; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. a detailed summary describing, with respect to the Recipient, (a) any changes in Employee headcount during
such quarter and the reasons therefor, including any Involuntary Termination or Furlough, (b) any changes in the amounts spent by the Recipient on Employee Wages, Salary, and Benefits during such quarter, and (c) any changes in Total
Compensation for, and any Severance Pay or Other Benefits in connection with the termination of, Corporate Officers and Employees subject to limitation under this Agreement during such quarter; and the reasons for any such changes.

13. If the Recipient or any Affiliate, or any Corporate Officer of the Recipient or any Affiliate, becomes aware of
facts, events, or circumstances that may materially affect the Recipient's compliance with the terms and conditions of this Agreement, the Recipient or Affiliate shall promptly provide Treasury with a written description of the events or
circumstances and any action taken, or contemplated, to address the issue.

14. In the event the Recipient contemplates any action to commence a bankruptcy or insolvency proceeding in any
jurisdiction, the Recipient shall promptly notify Treasury.

15. The Recipient shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Promptly provide to Treasury and the Treasury Inspector General a copy of any Department of Transportation
Inspector General report, audit report, or report of any other oversight body, that is received by the Recipient relating to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Immediately notify Treasury and the Treasury Inspector General of any indication of fraud, waste, abuse, or
potentially criminal activity pertaining to the Payroll Support.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Promptly provide Treasury with any information Treasury may request relating to compliance by the Recipient and
its Affiliates with this Agreement.

16. The Recipient and Affiliates will provide Treasury, the Treasury Inspector General, and such other entities as
authorized by Treasury timely and unrestricted access to all documents, papers, or other records, including electronic records, of the Recipient related to the Payroll Support, to enable Treasury and the Treasury Inspector General to make audits,
examinations, and otherwise evaluate the Recipient's compliance with the terms of this Agreement. This right also includes timely and reasonable access to the Recipient's and its Affiliates' personnel for the purpose of interview and
discussion related to such documents. This right of access shall continue as long as records are required to be retained. In addition, the Recipient will provide timely reports as reasonably required by Treasury, the Treasury Inspector General, and
such other entities as authorized by Treasury to comply with applicable law and to assess program effectiveness.

<u>Recordkeeping and Internal Controls</u> 

17. If the Recipient is a debtor as defined under 11 U.S.C. § 101(13), the Payroll Support funds, any claim or
account receivable arising under this Agreement, and any segregated account holding funds received under this Agreement shall not constitute or become property of the estate under 11 U.S.C. § 541.

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18. The Recipient shall expend and account for Payroll Support funds in a manner sufficient to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Permit the preparation of accurate, current, and complete quarterly reports as required under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Permit the tracing of funds to a level of expenditures adequate to establish that such funds have been used as
required under this Agreement.

19. The Recipient shall establish and maintain effective internal controls over the Payroll Support; comply with
all requirements related to the Payroll Support established under applicable Federal statutes and regulations; monitor compliance with Federal statutes, regulations, and the terms and conditions of this Agreement; and take prompt corrective actions
in accordance with audit recommendations. The Recipient shall promptly remedy any identified instances of noncompliance with this Agreement.

20. The Recipient and Affiliates shall retain all records pertinent to the receipt of Payroll Support and
compliance with the terms and conditions of this Agreement (including by suspending any automatic deletion functions for electronic records, including e-mails) for a period of three years following the period
of performance. Such records shall include all information necessary to substantiate factual representations made in the Recipient's application for Payroll Support, including ledgers and sub-ledgers, and
the Recipient's and Affiliates' compliance with this Agreement. While electronic storage of records (backed up as appropriate) is preferable, the Recipient and Affiliates may store records in hardcopy (paper) format. The term
"records" includes all relevant financial and accounting records and all supporting documentation for the information reported on the Recipient's quarterly reports.

21. If any litigation, claim, investigation, or audit relating to the Payroll Support is started before the
expiration of the three-year period, the Recipient and Affiliates shall retain all records described in paragraph 20 until all such litigation, claims, investigations, or audit findings have been completely resolved and final judgment entered or
final action taken.

<u>Remedies</u> 

22. If Treasury believes that an instance of noncompliance by the Recipient or an Affiliate with (a) this
Agreement, (b) sections 404 or 406 of the PSP Extension Law, or (c) the Internal Revenue Code of 1986 as it applies to the receipt of Payroll Support has occurred, Treasury may notify the Recipient in writing of its proposed determination
of noncompliance, provide an explanation of the nature of the noncompliance, and specify a proposed remedy. Upon receipt of such notice, the Recipient shall, within seven days, accept Treasury's proposed remedy, propose an alternative remedy,
or provide information and documentation contesting Treasury's proposed determination. Treasury shall consider any such submission by the Recipient and make a final written determination, which will state Treasury's findings regarding
noncompliance and the remedy to be imposed.

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23. If Treasury makes a final determination under paragraph 22 that an instance of noncompliance has occurred,
Treasury may, in its sole discretion, withhold any Additional Payroll Support Payments; require the repayment of the amount of any previously disbursed Payroll Support, with appropriate interest; require additional reporting or monitoring; initiate
suspension or debarment proceedings as authorized under 2 CFR Part 180; terminate this Agreement; or take any such other action as Treasury, in its sole discretion, deems appropriate.

24. Treasury may make a final determination regarding noncompliance without regard to paragraph 22 if Treasury
determines, in its sole discretion, that such determination is necessary to protect a material interest of the Federal Government. In such event, Treasury shall notify the Recipient of the remedy that Treasury, in its sole discretion, shall impose,
after which the Recipient may contest Treasury's final determination or propose an alternative remedy in writing to Treasury. Following the receipt of such a submission by the Recipient, Treasury may, in its sole discretion, maintain or alter
its final determination.

25. Any final determination of noncompliance and any final determination to take any remedial action described
herein shall not be subject to further review. To the extent permitted by law, the Recipient waives any right to judicial review of any such determinations and further agrees not to assert in any court any claim arising from or relating to any such
determination or remedial action.

26. Instead of, or in addition to, the remedies listed above, Treasury may refer any noncompliance or any
allegations of fraud, waste, or abuse to the Treasury Inspector General.

27. Treasury, in its sole discretion, may grant any request by the Recipient for termination of this Agreement,
which such request shall be in writing and shall include the reasons for such termination, the proposed effective date of the termination, and the amount of any unused Payroll Support funds the Recipient requests to return to Treasury. Treasury may,
in its sole discretion, determine the extent to which the requirements under this Agreement may cease to apply following any such termination.

28. If Treasury determines that any remaining portion of the Payroll Support will not accomplish the purpose of
this Agreement, Treasury may terminate this Agreement in its entirety to the extent permitted by law.

<u>Debts</u> 

29. Any Payroll Support in excess of the amount which Treasury determines, at any time, the Recipient is authorized
to receive or retain under the terms of this Agreement constitutes a debt to the Federal Government.

30. Any debts determined to be owed by the Recipient to the Federal Government shall be paid promptly by the
Recipient. A debt is delinquent if it has not been paid by the date specified in Treasury's initial written demand for payment, unless other satisfactory arrangements have been made. Interest, penalties, and administrative charges shall be
charged on delinquent debts in accordance with 31 U.S.C. § 3717, 31 CFR 901.9, and paragraphs 31 and 32. Treasury will refer any debt that is more than 180 days delinquent to Treasury's Bureau of the Fiscal Service for debt collection
services.

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31. Penalties on any debts shall accrue at a rate of not more than 6 percent per year or such other higher
rate as authorized by law.

32. Administrative charges relating to the costs of processing and handling a delinquent debt shall be determined
by Treasury.

33. The Recipient shall not use funds from other federally sponsored programs to pay a debt to the government
arising under this Agreement.

<u>Protections for Whistleblowers</u> 

34. In addition to other applicable whistleblower protections, in accordance with 41 U.S.C. § 4712, the
Recipient shall not discharge, demote, or otherwise discriminate against an Employee as a reprisal for disclosing information to a Person listed below that the Employee reasonably believes is evidence of gross mismanagement of a Federal contract or
grant, a gross waste of Federal funds, an abuse of authority relating to a Federal contract or grant, a substantial and specific danger to public health or safety, or a violation of law, rule, or regulation related to a Federal contract (including
the competition for or negotiation of a contract) or grant:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. A Member of Congress or a representative of a committee of Congress;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. An Inspector General;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. The Government Accountability Office;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. A Treasury employee responsible for contract or grant oversight or management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. An authorized official of the Department of Justice or other law enforcement agency;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. A court or grand jury; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. A management official or other Employee of the Recipient who has the responsibility to investigate, discover,
or address misconduct.

<u>Lobbying</u> 

35. The Recipient shall comply with the provisions of 31 U.S.C. § 1352, as amended, and with the regulations
at 31 CFR Part 21.

<u>Non-Discrimination</u> 

36. The Recipient shall comply with, and hereby assures that it will comply with, all applicable Federal statutes
and regulations relating to nondiscrimination including:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Title VI of the Civil Rights Act of 1964 (42 U.S.C. § 2000d *et seq.*), including Treasury's
implementing regulations at 31 CFR Part 22;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.C. § 794);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. The Age Discrimination Act of 1975, as amended (42 U.S.C. §§ 6101–6107), including
Treasury's implementing regulations at 31 CFR Part 23 and the general age discrimination regulations at 45 CFR Part 90; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. The Air Carrier Access Act of 1986 (49 U.S.C. § 41705).

<u>Additional Reporting</u> 

37. Within seven days after the date of this Agreement, the Recipient shall register in SAM.gov, and thereafter
maintain the currency of the information in SAM.gov until at least October 1, 2022. The Recipient shall review and update such information at least annually after the initial registration, and more frequently if required by changes in the
Recipient's information. The Recipient agrees that this Agreement and information related thereto, including the Maximum Awardable Amount and any executive total compensation reported pursuant to paragraph 38, may be made available to the
public through a U.S. Government website, including SAM.gov.

38. For purposes of paragraph 37, the Recipient shall report total compensation as defined in paragraph e.6 of the
award term in 2 CFR part 170, App. A for each of the Recipient's five most highly compensated executives for the preceding completed fiscal year, if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. the total Payroll Support is $25,000 or more;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. in the preceding fiscal year, the Recipient received:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. 80 percent or more of its annual gross revenues from Federal procurement contracts (and subcontracts) and
Federal financial assistance, as defined at 2 CFR 170.320 (and subawards); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. $25,000,000 or more in annual gross revenues from Federal procurement contracts (and subcontracts) and Federal
financial assistance, as defined at 2 CFR 170.320 (and subawards); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. the public does not have access to information about the compensation of the executives through periodic
reports filed under section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986. To determine if the public has access to the compensation information, the Recipient
shall refer to U.S. Securities and Exchange Commission total compensation filings at http://www.sec.gov/answers/execomp.htm.

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39. The Recipient shall report executive total compensation described in paragraph 38:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. as part of its registration profile at https://www.sam.gov; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. within five business days after the end of each month following the month in which this Agreement becomes
effective, and annually thereafter.

40. The Recipient agrees that, from time to time, it will, at its own expense, promptly upon reasonable request by
Treasury, execute and deliver, or cause to be executed and delivered, or use its commercially reasonable efforts to procure, all instruments, documents and information, all in form and substance reasonably satisfactory to Treasury, to enable
Treasury to ensure compliance with, or effect the purposes of, this Agreement, which may include, among other documents or information, (a) certain audited financial statements of the Recipient, (b) documentation regarding the
Recipient's revenues derived from its business as a passenger air carrier or regarding the passenger air carriers for which the Recipient provides services as a contractor (as the case may be), and (c) the Recipient's most recent
quarterly Federal tax returns. The Recipient agrees to provide Treasury with such documents or information promptly.

41. If the total value of the Recipient's currently active grants, cooperative agreements, and procurement
contracts from all Federal awarding agencies exceeds $10,000,000 for any period before termination of this Agreement, then the Recipient shall make such reports as required by 2 CFR part 200, Appendix XII.

<u>Other</u> 

42. The Recipient acknowledges that neither Treasury, nor any other actor, department, or agency of the Federal
Government, shall condition the provision of Payroll Support on the Recipient's implementation of measures to enter into negotiations with the certified bargaining representative of a craft or class of employees of the Recipient under the
Railway Labor Act (45 U.S.C. 151 *et seq.*) or the National Labor Relations Act (29 U.S.C. 151 *et seq.*), regarding pay or other terms and conditions of employment.

43. Notwithstanding any other provision of this Agreement, the Recipient has no right to, and shall not, transfer,
pledge, mortgage, encumber, or otherwise assign this Agreement or any Payroll Support provided under this Agreement, or any interest therein, or any claim, account receivable, or funds arising thereunder or accounts holding Payroll Support, to any
party, bank, trust company, or other Person without the express written approval of Treasury.

44. The Signatory Entity will cause its Affiliates to comply with all of their obligations under or relating to
this Agreement.

45. Unless otherwise provided in guidance issued by Treasury or the Internal Revenue Service, the form of any
Taxpayer Protection Instrument held by Treasury and any subsequent holder will be treated as such form for purposes of the Internal Revenue Code of 1986 (for example, a Taxpayer Protection Instrument in the form of a note will be treated as
indebtedness for purposes of the Internal Revenue Code of 1986).

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46. This Agreement may not be amended or modified except pursuant to an agreement in writing entered into by the
Recipient and Treasury, except that Treasury may unilaterally amend this Agreement if required in order to comply with applicable Federal law or regulation.

47. Subject to applicable law, Treasury may, in its sole discretion, waive any term or condition under this
Agreement imposing a requirement on the Recipient or any Affiliate.

48. This Agreement shall bind and inure to the benefit of the parties and their respective heirs, executors,
administrators, successors, and assigns.

49. The Recipient represents and warrants to Treasury that this Agreement, and the issuance and delivery to
Treasury of the Taxpayer Protection Instruments, if applicable, have been duly authorized by all requisite corporate and, if required, stockholder action, and will not result in the violation by the Recipient of any provision of law, statute, or
regulation, or of the articles of incorporation or other constitutive documents or bylaws of the Recipient, or breach or constitute an event of default under any material contract to which the Recipient is a party.

50. The Recipient represents and warrants to Treasury that this Agreement has been duly executed and delivered by
the Recipient and constitutes a legal, valid, and binding obligation of the Recipient enforceable against the Recipient in accordance with its terms.

51. This Agreement may be executed in counterparts, each of which shall constitute an original, but all of which
together shall constitute a single contract.

52. The words "execution," "signed," "signature," and words of like import in any
assignment shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based
recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any
other similar state laws based on the Uniform Electronic Transactions Act. Notwithstanding anything herein to the contrary, delivery of an executed counterpart of a signature page of this Agreement by electronic means, or confirmation of the
execution of this Agreement on behalf of a party by an email from an authorized signatory of such party, shall be effective as delivery of a manually executed counterpart of this Agreement.

53. The captions and paragraph headings appearing herein are included solely for convenience of reference and are
not intended to affect the interpretation of any provision of this Agreement.

54. This Agreement is governed by and shall be construed in accordance with Federal law. Insofar as there may be no
applicable Federal law, this Agreement shall be construed in accordance with the laws of the State of New York, without regard to any rule of conflicts of law (other than section 5-1401 of the New York General
Obligations Law) that would result in the application of the substantive law of any jurisdiction other than the State of New York.

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55. Nothing in this Agreement shall require any unlawful action or inaction by either party.

56. The requirement pertaining to trafficking in persons at 2 CFR 175.15(b) is incorporated herein and made
applicable to the Recipient.

57. This Agreement, together with the attachments hereto, including the Payroll Support Program Extension
Certification and any attached terms regarding Taxpayer Protection Instruments, constitute the entire agreement of the parties relating to the subject matter hereof and supersede any previous agreements and understandings, oral or written, relating
to the subject matter hereof. There may exist other agreements between the parties as to other matters, which are not affected by this Agreement and are not included within this integration clause.

58. No failure by either party to insist upon the strict performance of any provision of this Agreement or to
exercise any right or remedy hereunder, and no acceptance of full or partial Payroll Support (if applicable) or other performance by either party during the continuance of any such breach, shall constitute a waiver of any such breach of such
provision.

**ATTACHMENT** 

Payroll Support Program Extension Certification of Corporate Officer of Recipient

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**PAYROLL SUPPORT PROGRAM EXTENSION** 

**CERTIFICATION OF CORPORATE OFFICER OF RECIPIENT** 

In connection with the Payroll Support Program Extension Agreement (Agreement) between [Signatory Entity] and the Department of the Treasury (Treasury) relating to Payroll Support being provided by Treasury to the Recipient under Subtitle A of Title IV of Division N of the Consolidated Appropriations Act, 2021, I hereby certify under penalty of perjury to the Treasury that all of the following are true and correct. Capitalized terms used but not defined herein have the meanings set forth in the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) I have the authority to make the following representations on behalf of myself and the Recipient. I understand that these representations will be relied upon as material in the decision by Treasury to provide Payroll Support to the Recipient.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The information and certifications provided by the Recipient in an application for Payroll Support, and in any attachments or other information provided by the Recipient to Treasury related to the application, are true and correct and do not contain any materially false, fictitious, or fraudulent statement, nor any concealment or omission of any material fact.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The Recipient has the legal authority to apply for the Payroll Support, and it has the institutional, managerial, and financial capability to comply with all obligations, terms, and conditions set forth in the Agreement and any attachment thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) The Recipient and any Affiliate will give Treasury, Treasury's designee or the Treasury Office of Inspector General (as applicable) access to, and opportunity to examine, all documents, papers, or other records of the Recipient or Affiliate pertinent to the provision of Payroll Support made by Treasury based on the application, in order to make audits, examinations, excerpts, and transcripts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) No Federal appropriated funds, including Payroll Support, have been paid or will be paid, by or on behalf of the Recipient, to any person for influencing or attempting to influence an officer or employee of an agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) If the Payroll Support exceeds $100,000, the Recipient shall comply with the disclosure requirements in 31 CFR Part 21 regarding any amounts paid for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the Payroll Support.

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**I acknowledge that a materially false, fictitious, or fraudulent statement (or concealment or omission of a material fact) in this certification, or in the application that it supports, may be the subject of criminal prosecution and also may subject me and the Recipient to civil penalties and/or administrative remedies for false claims or otherwise.** 

---

| | |
|:---|:---|
| /s/ Bryan K. Bedford | /s/ Joseph P. Allman |
| Corporate Officer of Signatory Entity | Second Authorized Representative |
| Name: Bryan K. Bedford | Name: Joseph P. Allman |
| Title: President, Chief Executive Officer | Title: Senior Vice President, Chief Financial Officer |
| Date: January 15, 2021 | Date: January 15, 2021 |

---

## Exhibit 10.32

**Exhibit 10.32.2** 

**PROMISSORY NOTE** 

THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION STATEMENT RELATING THERETO IS IN EFFECT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT OR SUCH LAWS.

Reference is made to that certain Payroll Support Program Extension Agreement ("<u>PSP2 Agreement</u>") dated as of the date hereof by and among Republic Airways Inc., an Indiana Corporation ("<u>Issuer</u>"), having an office at 8909 Purdue Road, Suite 300, Indianapolis, IN 46266 and the United States Department of the Treasury ("<u>Treasury</u>"), having an office at 1500 Pennsylvania Avenue, NW, Washington, D.C. 20220, entered into by Issuer and Treasury pursuant to the Consolidated Appropriations Act, 2021 (December 27, 2020) ("<u>PSP Extension Law</u>").

WHEREAS, Issuer has requested that Treasury provide financial assistance to the Issuer and certain of its Affiliates (as defined below) that are Recipients (as defined in the PSP2 Agreement) that shall be used for the continuation of payment of employee wages, salaries, and benefits as is permissible under Section 402(a) of the PSP Extension Law.

WHEREAS, as appropriate compensation to the Federal Government of the United States of America for the provision of financial assistance under the PSP2 Agreement, Issuer has agreed to issue this Promissory Note ("<u>Note</u>") to Treasury on the terms and conditions set forth herein.

FOR VALUE RECEIVED, Issuer unconditionally promises to pay to the Holder (as defined below) the principal sum of ZERO DOLLARS ($0), subject to increases and/or decreases made pursuant to Section 2.1, as permissible under the PSP2 Agreement, or Section 2.3, in each case as noted by the Holder in Schedule I (the "<u>Principal Amount</u>"), outstanding hereunder, together with all accrued interest thereon on the Maturity Date (as defined below) as provided in this Note. Notations made by the Holder in Schedule I shall be final and conclusive absent manifest error; <u>provided</u>, <u>however</u>, that any failure by the Holder to make such notations or any error by omission by the Holder in this regard shall not affect the obligation of the Issuer to pay the full amount of the principal of and interest on the Note or any other amount owing hereunder.

1 **<u>DEFINITIONS</u>**

1.1 <u>Defined Terms</u>. As used in this Note, capitalized terms have the meanings specified in Annex A.

1.2 <u>Terms Generally</u>. The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words "include," "includes" and "including" shall be deemed to be followed by the phrase "without limitation." The word "will" shall be construed to have the same meaning and effect as the word "shall." The word "or" is not exclusive. The word "year" shall refer (i) in the case of a leap year, to a year of three hundred sixty-six (366) days, and (ii) otherwise, to a year of three hundred sixty-five (365) days. Unless the context requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein), (b) any reference herein to any Person shall be construed to include such Person's successors and assigns, (c) the words "herein," "hereof" and "hereunder," and words of similar import, shall be construed to refer to this Note in its entirety and not to any particular provision hereof, (d) all references herein to Sections, Annexes and Schedules shall be construed to refer to Sections of, and Annexes and Schedules to, this Note, (e) any reference to any law or regulation herein shall, unless otherwise specified, refer to such law or regulation as amended, modified or supplemented from time to time, and (f) the words "asset" and "property" shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights.

1.3 <u>Accounting Terms</u>. All accounting terms not otherwise defined herein shall be construed in conformity with GAAP, as in effect from time to time.

2 **<u>NOTE</u>**

2.1 <u>Principal Amount</u>. Upon any disbursement to the Issuer under the PSP2 Agreement after the Closing Date, the Principal Amount of this Note shall be increased in an amount equal to 30 % of any such disbursement; <u>provided</u>, <u>however</u>, that no increases in the Principal Amount of this Note shall occur pursuant to this Section until the aggregate principal amount of any disbursements to the Issuer under the PSP2 Agreement is greater than $100,000,000.

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2.2 <u>Maturity Date</u>. The aggregate unpaid principal amount of the Note, all accrued and unpaid interest, and all other amounts payable under this Note shall be due and payable on the Maturity Date, unless otherwise provided in Section 5.1.

2.3 <u>Prepayments</u>.

(a) <u>Optional Prepayments</u>. The Issuer may, upon written notice to the Holder, at any time and from time to time prepay the Note in whole or in part without premium or penalty in a minimum aggregate principal amount equal to the lesser of $5,000,000 and the Principal Amount outstanding.

(b) <u>Mandatory Prepayments</u>. If a Change of Control occurs, within thirty (30) days following the occurrence of such Change of Control, the Issuer shall prepay the aggregate principal amount outstanding under the Note and any accrued interest or other amounts owing under the Note. The Issuer will not, and will not permit any Subsidiary to, enter into any Contractual Obligation (other than this Note) that, directly or indirectly, restricts the ability of the Issuer or any Subsidiary to make such prepayment hereunder.

2.4 <u>Interest</u>.

(a) <u>Interest Rate</u>. Subject to paragraph (b) of this Section, the Note shall bear interest on the Principal Amount outstanding from time to time at a rate per annum equal to 1.00% until the fifth anniversary of the Closing Date, and the Applicable SOFR Rate plus 2.00% thereafter until the Maturity Date. All interest hereunder shall be computed on the basis of the actual number of days in each interest period and a year of 365 or 366 days, as applicable, until the fifth anniversary of the Closing Date and computed in a manner determined by the Holder thereafter, based on prevailing customary market conventions for the use of the Applicable SOFR Rate in floating-rate debt instruments at the time of the announcement of the Applicable SOFR Rate. Each interest period will be from, and including, the Closing Date, or from and including the most recent interest payment date to which interest has been paid or provided for, to, but excluding the next interest payment date.

(b) <u>Default Interest</u>. If any amount payable by the Issuer or any Guarantor under this Note (including principal of the Note, interest, fees or other amount) is not paid when due, whether at stated maturity, upon acceleration or otherwise, such amount shall thereafter bear interest at a rate per annum equal to the applicable Default Rate. While any Event of Default exists, the Issuer or any Guarantor shall pay interest on the principal amount of the Note outstanding hereunder at a rate per annum equal to the applicable Default Rate.

(c) <u>Payment Dates</u>. Accrued interest on the Note shall be payable in arrears on the last Business Day of March and September of each year, beginning with March 31, 2021 , and on the Maturity Date and at such other times as may be specified herein; <u>provided</u> that (i) interest accrued pursuant to paragraph (b) of this Section shall be payable on demand and (ii) in the event of any repayment or prepayment of the Note, accrued interest on the principal amount repaid or prepaid shall be payable on the date of such repayment or prepayment.

(d) <u>SOFR Fallback</u>. If, at any time, the Holder or its designee determines that a Benchmark Transition Event has occurred with respect to the Applicable SOFR Rate or SOFR, or any successor rate, the Holder or its designee will designate a Benchmark Replacement and, as applicable, make Benchmark Conforming Changes in a manner consistent with the methodology set forth in the ARRC Fallback Provisions. Any determination, decision or election that may be made by the Holder or its designee pursuant to this Section 2.4(d), and any decision to take or refrain from taking any action or making any determination, decision or election arising out of or relating to this Section 2.4(d), shall be conclusive and binding absent manifest error, may be made by the Holder or its designee in its sole discretion, and, notwithstanding anything to the contrary in this Note, shall become effective without the consent of the Issuer, any Guarantor or any other party. Any terms used in this Section 2.4(d) but not defined in this Note shall be construed in a manner consistent with the ARRC Fallback Provisions.

2.5 <u>Payments Generally</u>.

(a) <u>Payments by Issuer</u>. All payments to be made by the Issuer hereunder shall be made without condition or deduction for any counterclaim, defense, recoupment or setoff. Except as otherwise expressly provided herein, (i) for so long as Treasury is the Holder of this Note, each payment under this Note shall be paid in immediately available funds by electronic funds transfer to the account of the United States Treasury maintained at the Federal Reserve Bank of New York specified by Treasury in a written notice to the Issuer, or to such other account as may be specified from time to time by Treasury in a written notice to the Issuer, or (ii) in the event that Treasury is not the Holder of this

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Note, then each payment under this Note shall be made in immediately available funds by electronic funds transfer to such account as shall be specified by the Holder in a written notice to the Issuer, in each case not later than 12:00 noon (Washington, D.C. time) on the date specified herein. All amounts received by the Holder after such time on any date shall be deemed to have been received on the next succeeding Business Day and any applicable interest or fees shall continue to accrue. If any payment to be made by the Issuer shall fall due on a day that is not a Business Day, payment shall be made on the next succeeding Business Day and such extension of time shall be reflected in computing interest or fees, as the case may be; <u>provided</u> that, if such next succeeding Business Day would fall after the Maturity Date, payment shall be made on the immediately preceding Business Day. Except as otherwise expressly provided herein, all payments hereunder shall be made in Dollars.

(b) <u>Application of Insufficient Payments</u>. If at any time insufficient funds are received by and available to the Holder to pay fully all amounts of principal, interest, fees and other amounts then due hereunder, such funds shall be applied (i) <u>first</u>, to pay interest, fees and other amounts then due hereunder, and (ii) <u>second</u>, to pay principal then due hereunder.

3 **<u>REPRESENTATIONS AND WARRANTIES</u>**

The Issuer and each Guarantor represents and warrants to the Holder on the Closing Date and is deemed to represent and warrant to the Holder on any date on which the amount of the Note is increased pursuant to the terms hereof and in accordance with the PSP2 Agreement that:

3.1 <u>Existence, Qualification and Power</u>. The Issuer, each Guarantor and each Subsidiary (a) is duly organized or formed, validly existing and, as applicable, in good standing under the Laws of the jurisdiction of its incorporation or organization, (b) has all requisite power and authority and all requisite governmental licenses, authorizations, consents and approvals to (i) own or lease its assets and carry on its business and (ii) execute, deliver and perform its obligations under the Note, and (c) is duly qualified and is licensed and, as applicable, in good standing under the Laws of each jurisdiction where its ownership, lease or operation of properties or the conduct of its business requires such qualification or license, except, in each case referred to in clause (a) (other than with respect to the Issuer and each Guarantor), (b)(i) or (c), to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect.

3.2 <u>Authorization; No Contravention</u>. The execution, delivery and performance by the Issuer and each Guarantor of the Note have been duly authorized by all necessary corporate or other organizational action, and do not and will not (a) contravene the terms of its Organizational Documents, (b) conflict with or result in any breach or contravention of, or the creation of any Lien under, or require any payment to be made under (i) any material Contractual Obligation to which the Issuer or any Guarantor is a party or affecting the Issuer or any Guarantor or the material properties of the Issuer, any Guarantor or any Subsidiary or (ii) any material order, injunction, writ or decree of any Governmental Authority or any arbitral award to which the Issuer, the Guarantor or any Subsidiary or its property is subject or (c) violate any Law, except to the extent that such violation could not reasonably be expected to have a Material Adverse Effect.

3.3 <u>Governmental Authorization; Other Consents</u>. No approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any Governmental Authority or any other Person is necessary or required in connection with the execution, delivery or performance by, or enforcement against, the Issuer or any Guarantor of this Note, except for such approvals, consents, exemptions, authorizations, actions or notices that have been duly obtained, taken or made and in full force and effect.

3.4 <u>Execution and Delivery; Binding Effect</u>. This Note has been duly executed and delivered by the Issuer and each Guarantor. This Note constitutes a legal, valid and binding obligation of the Issuer and each Guarantor, enforceable against the Issuer and each Guarantor in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, receivership, moratorium or other Laws affecting creditors' rights generally and by general principles of equity.

4 **<u>COVENANTS</u>**

Until all Obligations shall have been paid in full or until any later date as provided for in this Note, the Issuer covenants and agrees with the Holder that:

4.1 <u>Notices</u>. The Issuer will promptly notify the Holder of the occurrence of any Default.

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4.2 <u>Guarantors</u>. The Guarantors listed on the signature page to this Note hereby Guarantee the Guaranteed Obligations as set forth in Annex B. If any Subsidiary (other than an Excluded Subsidiary) is formed or acquired after the Closing Date or if any Subsidiary ceases to be an Excluded Subsidiary, then the Issuer will cause such Subsidiary to become a Guarantor of this Note within 30 days of such Subsidiary being formed or acquired or of such Subsidiary ceasing to be an Excluded Subsidiary pursuant to customary documentation reasonably acceptable to the Holder and on the terms and conditions set forth in Annex B.

4.3 <u>Pari Passu Ranking</u>. The Obligations of the Issuer and any Guaranteed Obligations of any Guarantor under this Note shall be unsecured obligations of the Issuer and any Guarantor ranking *pari passu* with all existing and future senior unsecured Indebtedness of the Issuer or any Guarantor that is not subordinated in right of payment to the holder or lender of such Indebtedness.

5 **<u>EVENTS OF DEFAULT</u>**

5.1 <u>Events of Default</u>. If any of the following events (each, an "<u>Event of Default</u>") shall occur:

(a) the Issuer shall fail to pay any principal of the Note when and as the same shall become due and payable, whether at the due date thereof or at a date fixed for prepayment thereof or otherwise;

(b) the Issuer shall fail to pay any interest on the Note, or any fee or any other amount (other than an amount referred to in clause (a) of this Section) payable under this Note, when and as the same shall become due and payable, and such failure shall continue unremedied for a period of two (2) or more Business Days;

(c) any representation or warranty made or deemed made by or on behalf of the Issuer or any Guarantor, including those made prior to the Closing Date, in or in connection with this Note or any amendment or modification hereof, or any waiver hereunder, or in the PSP2 Agreement, or in any report, certificate, financial statement or other document furnished pursuant to or in connection with this Note, the PSP2 Agreement or the PSP2 Application or any amendment or modification hereof or thereof, or any waiver hereunder or thereunder, shall prove to have been incorrect in any material respect (or, in the case of any such representation or warranty under this Note already qualified by materiality, such representation or warranty shall prove to have been incorrect) when made or deemed made;

(d) the Issuer shall fail to observe or perform any covenant, condition or agreement contained in Section 4.1;

(e) the Issuer or any Guarantor shall fail to observe or perform any covenant, condition or agreement contained in this Note (other than those specified in clause (a), (b) or (d) of this Section) and such failure shall continue unremedied for a period of 30 or more days after notice thereof by the Holder to the Issuer;

(f) (i) the Issuer or any Guarantor shall default in the performance of any obligation relating to any Indebtedness (other than Indebtedness under the Note) having an aggregate principal amount equal to or greater than $5,000,000 ("<u>Material Indebtedness</u>") and any applicable grace periods shall have expired and any applicable notice requirements shall have been complied with, and as a result of such default the holder or holders of such Material Indebtedness or any trustee or agent on behalf of such holder or holders shall have caused such Material Indebtedness to become due prior to its scheduled final maturity date or (ii) the Issuer or any Guarantor shall default in the payment of the outstanding principal amount due on the scheduled final maturity date of any Indebtedness outstanding under one or more agreements of the Issuer or any Guarantor, any applicable grace periods shall have expired and any applicable notice requirements shall have been complied with and such failure to make payment when due shall be continuing for a period of more than five (5) consecutive Business Days following the applicable scheduled final maturity date or the applicable grace period thereunder, in an aggregate principal amount at any single time unpaid exceeding $5,000,000;

(g) an involuntary proceeding shall be commenced or an involuntary petition shall be filed seeking (i) liquidation, reorganization or other relief in respect of the Issuer, any Guarantor or any Subsidiary or its debts, or of a substantial part of its assets, under any Debtor Relief Law now or hereafter in effect or (ii) the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for the Issuer or any of its Subsidiaries or for a substantial part of its assets, and, in any such case, such proceeding or petition shall continue undismissed for a period of 60 or more days or an order or decree approving or ordering any of the foregoing shall be entered;

(h) the Issuer, any Guarantor or any Subsidiary shall (i) voluntarily commence any proceeding or file any petition seeking liquidation, reorganization or other relief under any Debtor Relief Law now or hereafter in effect, (ii) consent to the institution of, or fail to contest in a timely and appropriate manner, any proceeding or petition described in clause (g) of this Section, (iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for the Issuer, any Guarantor or any Subsidiary or for a substantial part of its assets, (iv) file an answer admitting the material allegations of a petition filed against it in any such proceeding or (v) make a general assignment for the benefit of creditors;

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(i) the Issuer, any Guarantor or any Subsidiary shall become unable, admit in writing its inability or fail generally to pay its debts as they become due;

(j) there is entered against the Issuer, any Guarantor or any Subsidiary (i) a final judgment or order for the payment of money in an aggregate amount (as to all such judgments and orders) exceeding an amount equal to or greater than $5,000,000 (to the extent not covered by independent third-party insurance as to which the insurer has been notified of such judgment or order and has not denied or failed to acknowledge coverage), or (ii) a non-monetary final judgment or order that, either individually or in the aggregate, has or could reasonably be expected to have a Material Adverse Effect and, in either case, (A) enforcement proceedings are commenced by any creditor upon such judgment or order, or (B) there is a period of 30 consecutive days during which a stay of enforcement of such judgment, by reason of a pending appeal or otherwise, is not in effect; or

(k) any material provision of the Note, at any time after its execution and delivery and for any reason other than as expressly permitted hereunder or satisfaction in full of all Obligations, ceases to be in full force and effect; or the Issuer, any Guarantor or any other Person contests in writing the validity or enforceability of any provision of the Note; or the Issuer or any Guarantor denies in writing that it has any or further liability or obligation under the Note, or purports in writing to revoke, terminate or rescind the Note;

then, and in every such event (other than an event with respect to the Issuer or any Guarantor described in clause (g) or (h) of this Section), and at any time thereafter during the continuance of such event, the Holder may, by notice to the Issuer, take any or all of the following actions, at the same or different times:

(i) declare any amounts then outstanding under the Note to be due and payable in whole (or in part, in which case any principal not so declared to be due and payable may thereafter be declared to be due and payable), and thereupon the principal of the Note so declared to be due and payable, together with accrued interest thereon and all fees and other Obligations of the Issuer accrued hereunder, shall become due and payable immediately, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Issuer and any Guarantor; and

(ii) exercise on all rights and remedies available to it under the Note and Applicable Law;

<u>provided</u> that, in case of any event with respect to the Issuer or any Guarantor described in clause (g) or (h) of this Section, the principal of the Note then outstanding, together with accrued interest thereon and all fees and other Obligations accrued hereunder, shall automatically become due and payable, in each case without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Issuer and any Guarantor.

6 **<u>MISCELLANEOUS</u>**

6.1 <u>Notices</u>.

(a) <u>Notices Generally</u>. Except in the case of notices and other communications expressly permitted to be given by telephone (and except as provided in paragraph (b) below), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by email as follows:

(i) if to the Issuer or any Guarantor, at 8909 Purdue Road, Suite 300, Indianapolis, IN 46266, Attention of Chad Pulley (Telephone No. 317-471-2335; Email: chad.pulley@rjet.com);

(ii) if to the Holder, to the Department of the Treasury at 1500 Pennsylvania Avenue, NW, Washington, D.C. 20220, Attention of Assistant General Counsel (Banking and Finance) (Telephone No. 202-622-0283; Email: eric.froman@treasury.gov); and

Notices sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received. Notices delivered through electronic communications, to the extent provided in paragraph (b) below, shall be effective as provided in said paragraph (b).

(b) <u>Electronic Communications</u>. Notices and other communications to the Holder hereunder may be delivered or furnished by electronic communication (including e-mail, FpML, and Internet or intranet websites) pursuant to procedures approved by the Holder. The Holder, the Issuer or any Guarantor may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it; <u>provided</u> that approval of such procedures may be limited to particular notices or communications.

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Unless the Holder otherwise prescribes, (i) notices and other communications sent to an e-mail address shall be deemed received upon the sender's receipt of an acknowledgement from the intended recipient (such as by return e-mail or other written acknowledgement), and (ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient, at its e-mail address as described in the foregoing clause (i), of notification that such notice or communication is available and identifying the website address therefor; <u>provided</u> that, for both clauses (i) and (ii) above, if such notice, email or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next Business Day.

6.2 <u>Waivers; Amendments</u>.

(a) <u>No Waiver; Remedies Cumulative; Enforcement</u>. No failure or delay by the Holder in exercising any right, remedy, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, remedy, power or privilege, or any abandonment or discontinuance of steps to enforce such a right remedy, power or privilege, preclude any other or further exercise thereof or the exercise of any other right remedy, power or privilege. The rights, remedies, powers and privileges of the Holder hereunder and under the Note are cumulative and are not exclusive of any rights, remedies, powers or privileges that any such Person would otherwise have.

(b) <u>Amendments, Etc</u>. Except as otherwise expressly set forth in this Note, no amendment or waiver of any provision of this Note, and no consent to any departure by the Issuer therefrom, shall be effective unless in writing executed by the Issuer and the Holder, and each such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.

6.3 <u>Expenses; Indemnity; Damage Waiver</u>.

(a) <u>Costs and Expenses</u>. The Issuer shall pay (i) all reasonable out-of-pocket expenses incurred by the Holder (including the reasonable fees, charges and disbursements of any counsel for the Holder) in connection with the preparation, negotiation, execution, delivery and administration of this Note and the PSP2 Agreement, any other agreements or documents executed in connection herewith or therewith, or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated), and (ii) all out-of-pocket expenses incurred by the Holder (including the fees, charges and disbursements of any counsel for the Holder), in connection with the enforcement or protection of its rights in connection with this Note and the PSP2 Agreement, any other agreements or documents executed in connection herewith or therewith, or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated), including all such out-of-pocket expenses incurred during any workout, restructuring, negotiations or enforcement in respect of such Note, PSP2 Agreement and other agreements or documents executed in connection herewith or therewith.

(b) <u>Indemnification by the Issuer</u>. The Issuer shall indemnify the Holder and each of its Related Parties (each such Person being called an "<u>Indemnitee</u>") against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities, obligations, penalties, fines, settlements, judgments, disbursements and related costs and expenses (including the fees, charges and disbursements of any counsel for any Indemnitee), and shall indemnify and hold harmless each Indemnitee from all fees and time charges and disbursements for attorneys who may be employees of any Indemnitee, incurred by any Indemnitee or asserted against any Indemnitee by any Person (including the Issuer) arising out of, in connection with, or as a result of (i) the execution or delivery of this Note or any agreement or instrument contemplated hereby, the performance by the Issuer or any Guarantor of its obligations hereunder or the consummation of the transactions contemplated hereby, (ii) the Note or the use or proposed use of the proceeds therefrom, or (iii) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory, whether brought by a third party or by the Issuer or any Guarantor, and regardless of whether any Indemnitee is a party thereto.

(c) <u>Waiver of Consequential Damages, Etc.</u> To the fullest extent permitted by Applicable Law, the Issuer and any Guarantor shall not assert, and hereby waives, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Note or any agreement or instrument contemplated hereby, the transactions contemplated hereby, or the use of the proceeds thereof. No Indemnitee referred to in paragraph (b) above shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed by it through telecommunications, electronic or other information transmission systems in connection with this Note or the transactions contemplated hereby.

(d) <u>Payments</u>. All amounts due under this Section shall be payable not later than five (5) days after demand therefor.

(e) <u>Survival</u>. Each party's obligations under this Section shall survive the termination of the Note and payment of the obligations hereunder.

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6.4 <u>Successors and Assigns</u>. Neither the Issuer nor any Guarantor may assign or transfer this Note or any of its rights or obligations hereunder and any purported assignment or transfer in violation of this Note shall be void. Holder may assign or participate a portion or all of its rights under this Note at any time in compliance with all Applicable Laws. This Note shall inure to the benefit of and be binding upon Issuer, any Guarantor and Holder and their permitted successors and assigns. Any Holder that assigns, or sells participations in, any portion of the Note will take such actions as are necessary for the Note and such portion to be in "registered form" (within the meaning of Treasury Regulations Section 5f.103-1).

6.5 <u>Counterparts; Integration; Effectiveness</u>. This Note and any amendments, waivers, consents or supplements hereto may be executed in counterparts, each of which shall constitute an original, but all taken together shall constitute a single contract. This Note constitutes the entire contract between Issuer, any Guarantor and the Holder with respect to the subject matter hereof and supersede all previous agreements and understandings, oral or written, with respect thereto. Notwithstanding anything herein to the contrary, delivery of an executed counterpart of a signature page of this Note by electronic means shall be effective as delivery of a manually executed counterpart of this Note.

6.6 <u>Severability</u>. If any term or provision of this Note is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term or provision of this Note or invalidate or render unenforceable such term or provision in any other jurisdiction.

6.7 <u>Right of Setoff</u>. If an Event of Default shall have occurred and be continuing, the Holder is hereby authorized at any time and from time to time, to the fullest extent permitted by Applicable Law, to set off and apply any and all deposits (general or special, time or demand, provisional or final, in whatever currency) at any time held, and other obligations (in whatever currency) at any time owing, by the Holder, to or for the credit or the account of the Issuer against any and all of the due and unpaid Obligations of the Issuer now or hereafter existing under this Note to the Holder, irrespective of whether or not the Holder shall have made any demand under this Note. The rights of the Holder under this Section are in addition to other rights and remedies (including other rights of setoff) that the Holder may have. The Holder agrees to notify the Issuer promptly after any such setoff and application; <u>provided</u> that the failure to give such notice shall not affect the validity of such setoff and application.

6.8 <u>Governing Law; Jurisdiction; Etc</u>. This Note will be governed by and construed in accordance with the federal law of the United States if and to the extent such law is applicable, and otherwise in accordance with the laws of the State of New York applicable to contracts made and to be performed entirely within such State. Each of the Issuer, any Guarantor and the Holder agrees (a) to submit to the exclusive jurisdiction and venue of the United States District Court for the District of Columbia for any civil action, suit or proceeding arising out of or relating to this Note or the transactions contemplated hereby, and (b) that notice may be served upon the Issuer, any Guarantor or the Holder at the applicable address in Section 6.1 hereof (or upon any Holder that is not Treasury at an address provided by such Holder to Issuer in writing). To the extent permitted by Applicable Law, each of the Issuer, any Guarantor and the Holder hereby unconditionally waives trial by jury in any civil legal action or proceeding relating to the Note or the transactions contemplated hereby.

6.9 <u>Headings</u>. Section headings used herein are for convenience of reference only, are not part of this Note and shall not affect the construction of, or be taken into consideration in interpreting, this Note.

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IN WITNESS WHEREOF, the Issuer and each Guarantor have executed this Note as of the day and year written below.

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| |
|:---|
|  REPUBLIC AIRWAYS, INC.,<br> as Issuer |
|  By /s/ Bryan Bedford |
|  Name: Bryan Bedford |
|  Title: President and Chief Executive Officer |
|  Date: January 15, 2021 |
|  REPUBLIC AIRWAYS HOLDINGS INC.,<br> as Guarantor |
|  By /s/ Bryan Bedford |
|  Name: Bryan Bedford |
|  Title: President and Chief Executive Officer |
|  Date: January 15, 2021 |

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**ANNEX A** 

<u>DEFINITIONS</u> 

"<u>Affiliate</u>" means any Person that directly or indirectly Controls, is Controlled by, or is under common Control with, the Issuer.

"<u>Applicable Law</u>" means, as to any Person, all applicable Laws binding upon such Person or to which such a Person is subject.

"<u>Applicable SOFR Rate</u>" means a rate of interest based on SOFR that shall be determined by the Holder and publicly announced by the Holder on or prior to the fifth anniversary of the Closing Date and shall, to the extent reasonably practicable, be based on customary market conventions as in effect at the time of such announcement. In no event will the Applicable SOFR Rate be less than 0.00% per annum.

"<u>ARRC Fallback Provisions</u>" means the Fallback Language for New Issuances of LIBOR Floating Rate Notes set forth in the ARRC Recommendations Regarding More Robust Fallback Language for New Issuances of LIBOR Floating Rate Notes, dated April 25, 2019.

"<u>ASU</u>" means the Accounting Standards Update 2016-02, Leases (Topic 842) by the Financial Accounting Standards Board issued on February 25, 2016.

"<u>Beneficial Owner</u>" has the meaning assigned to such term in Rule 13d-3 and Rule 13d-5 under the Exchange Act, except that in calculating the beneficial ownership of any particular "person" (as that term is used in Section 13(d)(3) of the Exchange Act), such "person" will be deemed to have beneficial ownership of all securities that such "person" has the right to acquire by conversion or exercise of other securities, whether such right is currently exercisable or is exercisable only after the passage of time. The terms "Beneficially Owns" and "Beneficially Owned" have a corresponding meaning.

"<u>Business Day</u>" means any on which Treasury and the Federal Reserve Bank of New York are both open for business.

"<u>Capitalized Lease Obligations</u>" means, at the time any determination thereof is to be made, the amount of the liability in respect of a Capitalized Lease that would at such time be required to be capitalized and reflected as a liability on a balance sheet (excluding the footnotes thereto) prepared in accordance with GAAP; <u>provided</u> that all leases of such Person that are or would have been treated as operating leases for purposes of GAAP prior to the issuance of the ASU shall continue to be accounted for as operating leases for purposes of all financial definitions and calculations for purposes of this Note (whether or not such operating lease obligations were in effect on such date) notwithstanding the fact that such obligations are required in accordance with the ASU (on a prospective or retroactive basis or otherwise) to be treated as capitalized lease obligations for other purposes.

"<u>Capitalized Leases</u>" means all leases that have been or should be, in accordance with GAAP as in effect on the Closing Date, recorded as capitalized leases; <u>provided</u> that for all purposes hereunder the amount of obligations under any Capitalized Lease shall be the amount thereof accounted for as a liability in accordance with GAAP; <u>provided</u>, <u>further</u>, that all leases of such Person that are or would have been treated as operating leases for purposes of GAAP prior to the issuance of the ASU shall continue to be accounted for as operating leases for purposes of all financial definitions and calculations for purposes of this Note (whether or not such operating lease obligations were in effect on such date) notwithstanding the fact that such obligations are required in accordance with the ASU (on a prospective or retroactive basis or otherwise) to be treated as capitalized lease obligations for other purposes.

"<u>Change of Control</u>" means the occurrence of any of the following: (a) the sale, lease, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the properties or assets of the Issuer and its Subsidiaries, or if the Issuer is a Subsidiary of any Guarantor, such Guarantor (the "<u>Parent Guarantor</u>") and its Subsidiaries, taken as a whole to any Person (including any "person" (as that term is used in Section 13(d)(3) of the Exchange Act)); or (b) the consummation of any transaction (including, without limitation, any merger or consolidation), the result of which is that any Person (including any "person" (as defined above)) becomes the Beneficial Owner, directly or indirectly, of more than 50% of the Voting Stock of the Issuer or Parent Guarantor, as applicable, (measured by voting power rather than number of shares), other than (i) any such transaction where the Voting Stock of the Issuer or Parent Guarantor, as applicable, (measured by voting power rather than number of shares) outstanding immediately prior to such transaction constitutes or is converted into or exchanged for at least a majority of the outstanding shares of the Voting Stock of such Beneficial Owner (measured by voting power rather than number of shares), or (ii) any merger or consolidation

Annex A-1

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of the Issuer or Parent Guarantor, as applicable, with or into any Person (including any "person" (as defined above)) which owns or operates (directly or indirectly through a contractual arrangement) a Permitted Business (a "<u>Permitted Person</u>") or a Subsidiary of a Permitted Person, in each case, if immediately after such transaction no Person (including any "person" (as defined above)) is the Beneficial Owner, directly or indirectly, of more than 50% of the total Voting Stock of such Permitted Person (measured by voting power rather than number of shares).

"<u>Closing Date</u>" means the date set forth on the Issuer's and each Guarantor's signature page to this Note.

"<u>Contractual Obligation</u>" means, as to any Person, any provision of any security issued by such Person or of any agreement, instrument or other undertaking to which such Person is a party or by which it or any of its property is bound.

"<u>Control</u>" means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise. "<u>Controlling</u>" and "<u>Controlled</u>" have meanings analogous thereto.

"<u>Debtor Relief Laws</u>" means the Bankruptcy Code of the United States of America, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the United States or other applicable jurisdictions from time to time in effect.

"<u>Default</u>" means any event or condition that constitutes an Event of Default or that, with the giving of any notice, the passage of time, or both, would be an Event of Default.

"<u>Default Rate</u>" means an interest rate (before as well as after judgment) equal to the interest rate on the Note <u>plus</u> 2.00% per annum.

"<u>Disqualified Equity Interest</u>" means any equity interest that, by its terms (or the terms of any security or other equity interests into which it is convertible or for which it is exchangeable), or upon the happening of any event or condition (a) matures or is mandatorily redeemable (other than solely for equity interests that are not Disqualified Equity Interests), pursuant to a sinking fund obligation or otherwise (except as a result of a change of Control or asset sale so long as any rights of the holders thereof upon the occurrence of a change of Control or asset sale event shall be subject to the prior repayment in full of the Note and all other Obligations that are accrued and payable), (b) is redeemable at the option of the holder thereof, in whole or in part, (c) provides for scheduled payments of dividends in cash, or (d) is or becomes convertible into or exchangeable for Indebtedness or any other equity interests that would constitute Disqualified Equity Interests, in each case, prior to the date that is ninety-one days after the Maturity Date; <u>provided</u> that if such equity interests are issued pursuant to a plan for the benefit of employees of the Issuer or any Subsidiary or by any such plan to such employees, such equity interests shall not constitute Disqualified Equity Interests solely because they may be required to be repurchased by the Issuer or its Subsidiaries in order to satisfy applicable statutory or regulatory obligations or as a result of such employee's termination, death or disability.

"<u>Dollar</u>" and "<u>$</u>" mean lawful money of the United States.

"<u>Event of Default</u>" has the meaning specified in Section 5.

"<u>Exchange Act</u>" shall mean the Securities Exchange Act of 1934, as amended.

"<u>Excluded Subsidiary</u>" means any Subsidiary of the Issuer that is not an obligor in respect of any Material Indebtedness that is unsecured of the Issuer or any of its Subsidiaries, unless such Subsidiary is required to be an obligor under any agreement, instrument or other document relating to any Material Indebtedness that is unsecured of the Issuer or any of its Subsidiaries.

"<u>GAAP</u>" means United States generally accepted accounting principles as in effect as of the date of determination thereof. Notwithstanding any other provision contained herein, (a) all terms of an accounting or financial nature used herein shall be construed, and all computations of amounts and ratios referred to herein shall be made, without giving effect to any election under FASB Accounting Standards Codification 825-Financial Instruments, or any successor thereto (including pursuant to the FASB Accounting Standards Codification), to value any Indebtedness of any subsidiary at "fair value," as defined therein and (b) the amount of any Indebtedness under GAAP with respect to Capitalized Lease Obligations shall be determined in accordance with the definition of Capitalized Lease Obligations.

Annex A-2

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"<u>Governmental Authority</u>" means the government of the United States of America or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank).

"<u>Guarantee</u>" means, as to any Person, (a) any obligation, contingent or otherwise, of such Person guaranteeing or having the economic effect of guaranteeing any Indebtedness or other obligation payable or performable by another Person (the "primary obligor") in any manner, whether directly or indirectly, and including any obligation of such Person, direct or indirect, (i) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation, (ii) to purchase or lease property, securities or services for the purpose of assuring the obligee in respect of such Indebtedness or other obligation of the payment or performance of such Indebtedness or other obligation, (iii) to maintain working capital, equity capital or any other financial statement condition or liquidity or level of income or cash flow of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other obligation or (iv) entered into for the purpose of assuring in any other manner the obligee in respect of such Indebtedness or other obligation of the payment or performance thereof or to protect such obligee against loss in respect thereof (in whole or in part) or (b) any Lien on any assets of such Person securing any Indebtedness or other obligation of any other Person, whether or not such Indebtedness or other obligation is assumed by such Person (or any right, contingent or otherwise, of any holder of such Indebtedness to obtain any such Lien); provided that the term "Guarantee" shall not include endorsements for collection or deposit in the ordinary course of business. The amount of any Guarantee shall be deemed to be an amount equal to the stated or determinable amount of the related primary obligation, or portion thereof, in respect of which such Guarantee is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof as determined by the guaranteeing Person in good faith. The term "Guarantee" as a verb has a corresponding meaning.

"<u>Guaranteed Obligations</u>" has the meaning specified in Annex B.

"<u>Guarantor</u>" means each Guarantor listed on the signature page to this Note and any other Person that Guarantees this Note.

"<u>Holder</u>" means the United States Department of the Treasury or its designees or any other Person that shall have rights pursuant to an assignment hereunder.

"<u>Indemnitee</u>" has the meaning specified in Section 6.3(b).

"<u>Issuer</u>" has the meaning specified in the preamble to this Note.

"<u>Laws</u>" means, collectively, all international, foreign, federal, state and local statutes, treaties, rules, guidelines, regulations, ordinances, codes and administrative or judicial precedents or authorities, including the interpretation or administration thereof by any Governmental Authority charged with the enforcement, interpretation or administration thereof, and all applicable administrative orders, directed duties, requests, licenses, authorizations and permits of, and agreements with, any Governmental Authority, in each case whether or not having the force of law.

Annex A-3

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"<u>Lien</u>" means any mortgage, pledge, hypothecation, collateral assignment, deposit arrangement, encumbrance, lien (statutory or other), charge, or preference, priority or other security interest or preferential arrangement of any kind or nature whatsoever (including any conditional sale or other title retention agreement, any easement, right of way or other encumbrance on title to real property, and any financing lease having substantially the same economic effect as any of the foregoing).

"<u>Material Adverse Effect</u>" means (a) a material adverse change in, or a material adverse effect on, the operations, business, properties, liabilities (actual or contingent), condition (financial or otherwise) or prospects of the Issuer and its Subsidiaries taken as a whole; or (b) a material adverse effect on (i) the ability of the Issuer or any Guarantor to perform its Obligations, (ii) the legality, validity, binding effect or enforceability against the Issuer or any Guarantors of the Note or (iii) the rights, remedies and benefits available to, or conferred upon, the Holder under the Note.

"<u>Material Indebtedness</u>" has the meaning specified in Section 5.1(f).

"<u>Maturity Date</u>" means the date that is ten years after the Closing Date (except that, if such date is not a Business Day, the Maturity Date shall be the next preceding Business Day).

"<u>Note</u>" has the meaning specified in the preamble to this Note.

"<u>Obligations</u>" means all advances to, and debts, liabilities, obligations, covenants and duties of, the Issuer arising under or otherwise with respect to the Note, whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter arising and including interest and fees that accrue after the commencement by or against the Issuer or any Affiliate thereof of any proceeding under any Debtor Relief Laws naming such Person as the debtor in such proceeding, regardless of whether such interest and fees are allowed claims in such proceeding. Without limiting the foregoing, the Obligations include (a) the obligation to pay principal, interest, charges, expenses, fees, indemnities and other amounts payable by the Issuer under the Note and (b) the obligation of the Issuer to reimburse any amount in respect of any of the foregoing that the Holder, in each case in its sole discretion, may elect to pay or advance on behalf of the Issuer.

"<u>Obligee Guarantor</u>" has the meaning specified in Annex B.

"<u>Organizational Documents</u>" means (a) as to any corporation, the charter or certificate or articles of incorporation and the bylaws (or equivalent or comparable constitutive documents with respect to any non-U.S. jurisdiction), (b) as to any limited liability company, the certificate or articles of formation or organization and operating or limited liability agreement and (c) as to any partnership, joint venture, trust or other form of business entity, the partnership, joint venture or other applicable agreement of formation or organization and any agreement, instrument, filing or notice with respect thereto filed in connection with its formation or organization with the applicable Governmental Authority in the jurisdiction of its formation or organization and, if applicable, any certificate or articles of formation or organization of such entity.

"<u>Permitted Business</u>" means any business that is the same as, or reasonably related, ancillary, supportive or complementary to, the business in which the Issuer and its Subsidiaries are engaged on the date of this Note.

"<u>Person</u>" means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity.

"<u>Principal Amount</u>" has the meaning specified in the preamble to this Note.

"<u>PSP Extension Law</u>" has the meaning specified in the preamble to this Note.

"<u>PSP2 Agreement</u>" has the meaning specified in the preamble to this Note.

"<u>PSP2 Application</u>" means the application form and any related materials submitted by the Issuer to Treasury in connection with an application for financial assistance under Division N, Title IV, Subtitle A of the PSP Extension Law.

"<u>Related Parties</u>" means, with respect to any Person, such Person's Affiliates and the agents, advisors and representatives of such Person and of such Person's Affiliates.

Annex A-4

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"<u>SOFR</u>" means the secured overnight financing rate published by the Federal Reserve Bank of New York, as administrator of the benchmark (or a successor administrator) on the Federal Reserve Bank of New York's (or such successor's) website.

"<u>Subsidiary</u>" of a Person means a corporation, partnership, limited liability company, association or joint venture or other business entity of which a majority of the equity interests having ordinary voting power for the election of directors or other governing body (other than securities or interests having such power only by reason of the happening of a contingency) are at the time owned or the management of which is Controlled, directly, or indirectly through one or more intermediaries, by such Person. Unless otherwise specified, all references herein to a "Subsidiary" or to "Subsidiaries" shall refer to a Subsidiary or Subsidiaries of the Issuer.

"<u>Treasury</u>" has the meaning specified in the preamble to this Note.

"<u>United States</u>" and "<u>U.S.</u>" mean the United States of America.

"<u>Voting Stock</u>" of any specified Person as of any date means the equity interests of such Person that is at the time entitled to vote in the election of the board of directors of such Person.

Annex A-5

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**ANNEX B** 

<u>GUARANTEE</u> 

1. <u>Guarantee of the Obligations</u>. Each Guarantor jointly and severally hereby irrevocably and unconditionally guarantees to the Holder, the due and punctual payment in full of all Obligations (or such lesser amount as agreed by the Holder in its sole discretion) when the same shall become due, whether at stated maturity, by required prepayment, declaration, acceleration, demand or otherwise (including amounts that would become due but for the operation of the automatic stay under Section 362(a) of the Bankruptcy Code, 11 U.S.C. § 362(a)) (collectively, the "<u>Guaranteed Obligations</u>").

2. <u>Payment by a Guarantor</u>. Each Guarantor hereby jointly and severally agrees, in furtherance of the foregoing and not in limitation of any other right which the Holder may have at law or in equity against any Guarantor by virtue hereof, that upon the failure of the Issuer to pay any of the Guaranteed Obligations when and as the same shall become due, whether at stated maturity, by required prepayment, declaration, acceleration, demand or otherwise (including amounts that would become due but for the operation of the automatic stay under Section 362(a) of the Bankruptcy Code, 11 U.S.C. § 362(a)), such Guarantor will upon demand pay, or cause to be paid, in cash, to the Holder an amount equal to the sum of the unpaid principal amount of all Guaranteed Obligations then due as aforesaid, accrued and unpaid interest on such Guaranteed Obligations (including interest which, but for the Issuer's becoming the subject of a case under the Bankruptcy Code, would have accrued on such Guaranteed Obligations, whether or not a claim is allowed against the Issuer for such interest in the related bankruptcy case) and all other Guaranteed Obligations then owed to the Holder as aforesaid.

3. <u>Liability of Guarantors Absolute</u>. Each Guarantor agrees that its obligations hereunder are irrevocable, absolute, independent and unconditional and shall not be affected by any circumstance which constitutes a legal or equitable discharge of a guarantor or surety other than payment in full of the Guaranteed Obligations. In furtherance of the foregoing and without limiting the generality thereof, each Guarantor agrees as follows:

(a) this Guarantee is a guarantee of payment when due and not of collectability;

(b) the Holder may enforce this Guarantee upon the occurrence of an Event of Default notwithstanding the existence of any dispute between the Issuer and the Holder with respect to the existence of such Event of Default;

(c) a separate action or actions may be brought and prosecuted against such Guarantor whether or not any action is brought against the Issuer or any other Guarantors and whether or not Issuer or such Guarantors are joined in any such action or actions;

(d) payment by any Guarantor of a portion, but not all, of the Guaranteed Obligations shall in no way limit, affect, modify or abridge any other Guarantor's liability for any portion of the Guaranteed Obligations which has not been paid;

(e) the Holder, upon such terms as it deems appropriate, without notice or demand and without affecting the validity or enforceability hereof or giving rise to any reduction, limitation, impairment, discharge or termination of any Guarantor's liability hereunder, from time to time may (i) renew, extend, accelerate, increase the rate of interest on, or otherwise change the time, place, manner or terms of payment of the Guaranteed Obligations; (ii) settle, compromise, release or discharge, or accept or refuse any offer of performance with respect to, or substitutions for, the Guaranteed Obligations or subordinate the payment of the same to the payment of any other obligations; (iii) release, surrender, exchange, substitute, compromise, settle, rescind, waive, alter, subordinate or modify, with or without consideration, any security for payment of the Guaranteed Obligations, any other guarantees of the Guaranteed Obligations, or any other obligation of any Person (including any other Guarantor) with respect to the Guaranteed Obligations; and (iv) enforce its rights and remedies even though such action may operate to impair or extinguish any right of reimbursement or subrogation or other right or remedy of any Guarantor against the Issuer or any security for the Guaranteed Obligations; and

(f) this Guarantee and the obligations of each Guarantor hereunder shall be valid and enforceable and shall not be subject to any reduction, limitation, impairment, discharge or termination for any reason (other than payment in full of the Guaranteed Obligations), including the occurrence of any of the following: (i) any failure, delay or omission to assert or enforce or agreement or election not to assert or enforce, or the stay or enjoining, by order of court, by operation of law or otherwise, of the exercise or enforcement of, any claim or demand or any right, power or remedy with respect to the Guaranteed Obligations, or with respect to any security for the payment of the Guaranteed

Annex B-1

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Obligations; (ii) any rescission, waiver, amendment or modification of, or any consent to departure from, any of the terms or provisions hereof; (iii) the Guaranteed Obligations, or any agreement relating thereto, at any time being found to be illegal, invalid or unenforceable in any respect; (iv) the Holder's consent to the change, reorganization or termination of the corporate structure or existence of the Issuer or any of its Subsidiaries and to any corresponding restructuring of the Guaranteed Obligations; (v) any defenses, set-offs or counterclaims which the Issuer or any Guarantor may allege or assert against the Holder in respect of the Guaranteed Obligations, including failure of consideration, lack of authority, validity or enforceability, breach of warranty, payment, statute of frauds, statute of limitations, accord and satisfaction and usury; and (vi) any other event or circumstance that might in any manner vary the risk of any Guarantor as an obligor in respect of the Guaranteed Obligations.

4. <u>Waivers by Guarantors</u>. Each Guarantor hereby waives, for the benefit of the Holder: (a) any right to require the Holder, as a condition of payment or performance by such Guarantor, to (i) proceed against Issuer, any Guarantor or any other Person; (ii) proceed against or exhaust any security in favor of the Holder; or (iii) pursue any other remedy in the power of the Holder whatsoever or (b) presentment to, demand for payment from and protest to the Issuer or any Guarantor or notice of acceptance; and (c) any defenses or benefits that may be derived from or afforded by law which limit the liability of or exonerate guarantors or sureties, or which may conflict with the terms hereof.

5. <u>Guarantors</u><u>'</u> <u>Rights of Subrogation, Contribution, etc</u>. Until the Guaranteed Obligations shall have been paid in full, each Guarantor hereby waives any claim, right or remedy, direct or indirect, that such Guarantor now has or may hereafter have against the Issuer or any other Guarantor or any of its assets in connection with this Guarantee or the performance by such Guarantor of its obligations hereunder, including without limitation (a) any right of subrogation, reimbursement or indemnification that such Guarantor now has or may hereafter have against the Issuer with respect to the Guaranteed Obligations, (b) any right to enforce, or to participate in, any claim, right or remedy that the Holder now has or may hereafter have against the Issuer, and (c) any benefit of, and any right to participate in, any collateral or security now or hereafter held by the Holder. In addition, until the Guaranteed Obligations shall have been paid in full, each Guarantor shall withhold exercise of any right of contribution such Guarantor may have against any other guarantor (including any other Guarantor) of the Guaranteed Obligations. If any amount shall be paid to any Guarantor on account of any such subrogation, reimbursement, indemnification or contribution rights at any time when all Guaranteed Obligations shall not have been finally and paid in full, such amount shall be held in trust for the Holder and shall forthwith be paid over to the Holder to be credited and applied against the Guaranteed Obligations, whether matured or unmatured, in accordance with the terms hereof.

6. <u>Subordination</u>. Any Indebtedness of the Issuer or any Guarantor now or hereafter held by any Guarantor (the "<u>Obligee Guarantor</u>") is hereby subordinated in right of payment to the Guaranteed Obligations, and any such indebtedness collected or received by the Obligee Guarantor after an Event of Default has occurred and is continuing shall be held in trust for the Holder and shall forthwith be paid over to the Holder to be credited and applied against the Guaranteed Obligations but without affecting, impairing or limiting in any manner the liability of the Obligee Guarantor under any other provision hereof.

7. <u>Continuing Guarantee</u>. This Guarantee is a continuing guarantee and shall remain in effect until all of the Guaranteed Obligations shall have been paid in full. Each Guarantor hereby irrevocably waives any right to revoke this Guarantee as to future transactions giving rise to any Guaranteed Obligations.

8. <u>Financial Condition of the Issuer</u>. The Note may be issued to the Issuer without notice to or authorization from any Guarantor regardless of the financial or other condition of the Issuer at the time of such grant. Each Guarantor has adequate means to obtain information from the Issuer on a continuing basis concerning the financial condition of the Issuer and its ability to perform its obligations under the Note, and each Guarantor assumes the responsibility for being and keeping informed of the financial condition of the Issuer and of all circumstances bearing upon the risk of nonpayment of the Guaranteed Obligations.

9. <u>Reinstatement</u>. In the event that all or any portion of the Guaranteed Obligations are paid by the Issuer or any Guarantor, the obligations of any other Guarantor hereunder shall continue and remain in full force and effect or be reinstated, as the case may be, in the event that all or any part of such payment(s) are rescinded or recovered directly or indirectly from the Holder as a preference, fraudulent transfer or otherwise, and any such payments which are so rescinded or recovered shall constitute Guaranteed Obligations for all purposes hereunder.

10. <u>Discharge of Guarantee Upon Sale of the Guarantor</u>. If, in compliance with the terms and provisions of the Note, all of the capital stock of any Guarantor that is a Subsidiary of the Issuer or any of its successors in interest hereunder shall be sold or otherwise disposed of (including by merger or consolidation) to any Person (other than to the Issuer or to any other Guarantor), the Guarantee of such Guarantor or such successor in interest, as the case may be, hereunder shall automatically be discharged and released without any further action by any beneficiary or any other Person effective as of the time of such asset sale.

Annex B-2

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**SCHEDULE I** 

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| | | | | |
|:---|:---|:---|:---|:---|
| Date | Current Outstanding<br> Principal Amount | Increase or Decrease in<br> Outstanding Principal<br> Amount | Resulting Outstanding<br> Principal Amount | Notation Made By |

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Annex B-3

## Exhibit 10.33

**Exhibit 10.33.1** 

**WARRANT AGREEMENT** 

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**TABLE OF CONTENTS** 

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| | | |
|:---|:---|:---|
|  |  | **Page** |
|  | Article I |  |
|  | Closing |  |
| 1.1 | Issuance | 1 |
| 1.2 | Initial Closing; Warrant Closing Date. | 1 |
| 1.3 | Interpretation | 2 |
|  | Article II |  |
|  | Representations and Warranties |  |
| 2.1 | Representations and Warranties of the Company | 3 |
|  | Article III |  |
|  | Covenants |  |
| 3.1 | Commercially Reasonable Efforts | 5 |
| 3.2 | Expenses | 6 |
| 3.3 | Sufficiency of Authorized Common Stock | 6 |
|  | Article IV |  |
|  | Additional Agreements |  |
| 4.1 | Investment | 7 |
| 4.2 | Legends | 7 |
| 4.3 | Certain Transactions | 7 |
| 4.4 | Transfer of Warrants and Warrant Shares | 7 |
| 4.5 | Registration Rights | 7 |
| 4.6 | Voting of Warrant Shares | 19 |
|  | Article V |  |
|  | Miscellaneous |  |
| 5.1 | Survival of Representations and Warranties | 19 |
| 5.2 | Amendment | 20 |
| 5.3 | Waiver of Conditions | 20 |
| 5.4 | **Governing Law: Submission to Jurisdiction, Etc.** | 20 |
| 5.5 | Notices | 20 |
| 5.6 | Definitions | 21 |
| 5.7 | Assignment | 21 |
| 5.8 | Severability | 21 |
| 5.9 | No Third Party Beneficiaries | 22 |

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LIST OF ANNEXES

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| | |
|:---|:---|
| ANNEX A: | FORM OF OPINION |
| ANNEX B: | FORM OF WARRANT |
| SCHEDULE 1: | WARRANT SHARES FORMULA |
| SCHEDULE 2: | CAPITALIZATION |
| SCHEDULE 3: | REQUIRED STOCKHOLDER APPROVALS |

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-ii-

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**INDEX OF DEFINED TERMS** 

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| | |
|:---|:---|
| Term | Location of<br> Definition |
|  Affiliate | Annex B |
|  Agreement | Recitals |
|  Appraisal Procedure | Annex B |
|  Board of Directors | 2.1(g) |
|  Business Combination | Annex B |
|  Business Day | Annex B |
|  Capitalization Date | 2.1(b) |
|  Closing | 1.2(a) |
|  Common Stock | Annex B |
|  Company | Recitals |
|  Company Reports | 2.1(h)(i) |
|  Exchange Act | Annex B |
|  Governmental Authority | 5.6(a) |
|  Holder | 4.5(l)(i) |
|  Indemnitee | 4.5(h)(i) |
|  Initial Closing | 1.2(a) |
|  IPO | 4.5(r) |
|  Lien | 5.6(c) |
|  Material Adverse Effect | 5.6(d) |
|  Organizational Documents | 5.6(e) |
|  Pending Underwritten Offering | 4.5(m) |
|  Piggyback Registration | 4.5(b)(iv) |
|  Promissory Note | Recitals |
|  register; registered; registration | 4.5(l)(ii) |
|  Registrable Securities | 4.5(l)(iii) |
|  Registration Expenses | 4.5(l)(iv) |
|  Rule 144; Rule 144A; Rule 159A; Rule 405; Rule 415 | 4.5(l)(v) |
|  SEC | 2.1(i) |
|  Securities Act | Annex B |
|  Selling Expenses | 4.5(l)(vi) |
|  Shelf Registration Statement | 4.5(b)(ii) |
|  Special Registration | 4.5(j) |
|  Stockholder Proposals | 3.1(b) |
|  Subsidiary | 5.6(f) |
|  Transfer | 4.4 |
|  Treasury | Recitals |
|  Warrant Closing Date | 1.2(a) |
|  Warrants | Recitals |
|  Warrant Shares | Annex B |

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WARRANT AGREEMENT dated as of June 10, 2021 (this "<u>Agreement</u>"), between REPUBLIC AIRWAYS HOLDINGS INC., a corporation organized under the laws of Delaware (the "<u>Company</u>") and the UNITED STATES DEPARTMENT OF THE TREASURY ("<u>Treasury</u>").

WHEREAS, the Company has requested that Treasury provide financial assistance to the Recipient (as defined in the PSP3 Agreement) that shall exclusively be used for the continuation of payment of employee wages, salaries, and benefits as is permissible under Section 7301(b)(1) of Subtitle C of Title VII of the American Rescue Plan Act of 2021 (March 11, 2021), as the same may be amended from time to time, and Treasury is willing to do so on the terms and conditions set forth in that certain Payroll Support Program 3 Agreement dated as of June 10, 2021, between REPUBLIC AIRWAYS, INC. and Treasury (the "<u>PSP3 Agreement</u>"); and

WHEREAS, as appropriate compensation to the Federal Government of the United States of America for the provision of financial assistance under the PSP3 Agreement, REPUBLIC AIRWAYS, INC. has agreed to issue a note to be repaid to Treasury on the terms and conditions set forth in the promissory note dated as of June 10, 2021, issued by REPUBLIC AIRWAYS, INC., in the name of Treasury as the holder (the "<u>Promissory Note</u>") and agreed to issue in a private placement warrants to purchase the number of shares of its Common Stock determined in accordance with Schedule 1 to this Agreement (the "<u>Warrants</u>") to Treasury;

**NOW, THEREFORE**, in consideration of the premises, and of the representations, warranties, covenants and agreements set forth herein, the parties agree as follows:

Article I

**Closing** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 <u>Issuance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On the terms and subject to the conditions set forth in this Agreement, the Company agrees to issue to Treasury, on each Warrant Closing Date, Warrants for a number of shares of Common Stock determined by the formula set forth in <u>Schedule 1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 <u>Initial Closing; Warrant Closing Date</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On the terms and subject to the conditions set forth in this Agreement, the closing of the initial issuance of the Warrants (the "<u>Initial Closing</u>") will take place on or before the 90th day after the Closing Date (as defined in the Promissory Note) or, if on the 90th day after the Closing Date the principal amount of the Promissory Note is $0, the first date on which such principal amount is increased. After the Initial Closing, the closing of any subsequent issuance will take place on the date of each increase, if any, of the principal amount of the Promissory Note (each subsequent closing, together with the Initial Closing, a "<u>Closing</u>" and each such date a "<u>Warrant Closing Date</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) On each Warrant Closing Date, the Company will issue to Treasury a duly executed Warrant or Warrants with an Exercise Price determined by the formula set forth in paragraph (a) <u>of Schedule 1</u> for a number of shares of Common Stock determined by the formula set forth in paragraph (b) of <u>Schedule 1</u>, as evidenced by one or more certificates dated the Warrant Closing Date and bearing appropriate legends as hereinafter provided for and in substantially the form attached hereto as <u>Annex B</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) On each Warrant Closing Date, the Company shall deliver to Treasury (i) a written opinion from counsel to the Company (which may be internal counsel) addressed to Treasury and dated as of such Warrant Closing Date, in substantially the form attached hereto as <u>Annex A</u> and (ii) a certificate executed by the chief executive officer, president, executive vice president, chief financial officer, principal accounting officer, treasurer or controller confirming that the representations and warranties of the Company in this Agreement are true and correct with the same force and effect as though expressly made at and as of such Warrant Closing Date and the Company has complied with all agreements on its part to be performed or satisfied hereunder at or prior to such Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) On the initial Warrant Closing Date, the Company shall deliver to Treasury (i) such customary certificates of resolutions or other action, incumbency certificates and/or other certificates of the chief executive officer, president, executive vice president, chief financial officer, principal accounting officer, treasurer or controller as Treasury may require evidencing the identity, authority and capacity of each such officer thereof authorized to act as such officer in connection with this Agreement and (ii) customary resolutions or evidence of corporate authorization, secretary's certificates and such other documents and certificates (including Organizational Documents and good standing certificates) as Treasury may reasonably request relating to the organization, existence and good standing of the Company and any other legal matters relating to the Company, this Agreement, the Warrants or the transactions contemplated hereby or thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 <u>Interpretation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) When a reference is made in this Agreement to "Recitals," "Articles," "Sections," or "Annexes" such reference shall be to a Recital, Article or Section of, or Annex to, this Warrant Agreement, unless otherwise indicated. The terms defined in the singular have a comparable meaning when used in the plural, and vice versa. References to "herein", "hereof", "hereunder" and the like refer to this Agreement as a whole and not to any particular section or provision, unless the context requires otherwise. The table of contents and headings contained in this Agreement are for reference purposes only and are not part of this Agreement. Whenever the words "include," "includes" or "including" are used in this Agreement, they shall be deemed followed by the words "without limitation." No rule of construction against the draftsperson shall be applied in connection with the interpretation or enforcement of this Agreement, as this Agreement is the product of negotiation between sophisticated parties advised by counsel. All references to "$" or "dollars" mean the lawful currency of the United States of America. Except as expressly stated in this Agreement, all references to any statute, rule or regulation are to the statute, rule or regulation as amended, modified, supplemented or replaced from time to time (and, in the case of statutes, include any rules and regulations promulgated under the statute) and to any section of any statute, rule or regulation include any successor to the section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Capitalized terms not defined herein have the meanings ascribed thereto in Annex B.

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Article II

**Representations and Warranties** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>Representations and Warranties of the Company</u>. The Company represents and warrants to Treasury that as of the date hereof and each Warrant Closing Date (or such other date specified herein):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Existence, Qualification and</u> <u>Power</u>. The Company is duly organized or formed, validly existing and, if applicable, in good standing under the Laws of the jurisdiction of its incorporation or organization, and the Company and each Subsidiary (a) has all requisite power and authority and all requisite governmental licenses, authorizations, consents and approvals to (i) own or lease its assets and carry on its business and (ii) execute, deliver and perform its obligations under the this Agreement and the Warrants, and (b) is duly qualified and is licensed and, as applicable, in good standing under the Laws of each jurisdiction where its ownership, lease or operation of properties or the conduct of its business requires such qualification or license, except, in each case referred to in clause (a)(i) or (b), to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Capitalization</u>(i) . The authorized capital stock of the Company, and the outstanding capital stock of the Company (including securities convertible into, or exercisable or exchangeable for, capital stock of the Company) as of the most recent fiscal month-end preceding the date hereof (the "<u>Capitalization Date</u>") is set forth in Schedule 2. The outstanding shares of capital stock of the Company have been duly authorized and are validly issued and outstanding, fully paid and nonassessable, and subject to no preemptive rights, other than, if applicable, those set forth on Schedule 3 (and were not issued in violation of any preemptive rights). Except as provided in the Warrants, as of the date hereof, the Company does not have outstanding any securities or other obligations providing the holder the right to acquire Common Stock that is not reserved for issuance as specified on Schedule 2, and the Company has not made any other commitment to authorize, issue or sell any Common Stock. Since the Capitalization Date, the Company has not issued any shares of Common Stock, other than (i) shares issued upon the exercise of stock options or delivered under other equity-based awards or other convertible securities or warrants which were issued and outstanding on the Capitalization Date and disclosed on Schedule 2 and (ii) shares disclosed on Schedule 2 as it may be updated by written notice from the Company to Treasury in connection with each Warrant Closing Date. Each holder of 5% or more of any class of capital stock of the Company and such holder's primary address are set forth in Schedule 2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Governmental Authorization; Other Consents</u>. No approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any Governmental Authority or any other Person is necessary or required in connection with the execution, delivery or performance by, or enforcement against, the Company of this Agreement, except for such approvals, consents, exemptions, authorizations, actions or notices that have been duly obtained, taken or made and are in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Execution and Delivery; Binding Effect</u>(e) . This Agreement has been duly authorized, executed and delivered by the Company. This Agreement constitutes a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, receivership, moratorium or other Laws affecting creditors' rights generally and by general principles of equity.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>T</u><u>he Warrants and Warrant Shares</u>. Each Warrant has been duly authorized and, when executed and delivered as contemplated hereby, will constitute a valid and legally binding obligation of the Company enforceable against the Company in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, receivership, moratorium or other Laws affecting creditors' rights generally and by general principles of equity. The Warrant Shares have been duly authorized and reserved for issuance upon exercise of the Warrants and when so issued in accordance with the terms of the Warrants will be validly issued, fully paid and non-assessable, subject, if applicable, to the approvals of its stockholders set forth on <u>Schedule 3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Authorization, Enforceability</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company has the corporate power and authority to execute and deliver this Agreement and the Warrants and, subject, if applicable, to the approvals of its stockholders set forth on <u>Schedule 3</u>, to carry out its obligations hereunder and thereunder (which includes the issuance of the Warrants and Warrant Shares). The execution, delivery and performance by the Company of this Agreement and the Warrants and the consummation of the transactions contemplated hereby and thereby have been duly authorized by all necessary corporate or other organizational action on the part of the Company and its stockholders, and no further approval or authorization is required on the part of the Company, subject, in each case, if applicable, to the approvals of its stockholders set forth on <u>Schedule 3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The execution, delivery and performance by the Company of this Agreement do not and will not (a) contravene the terms of its Organizational Documents, (b) conflict with or result in any breach or contravention of, or the creation of any Lien (as defined in the Promissory Note) under, or require any payment to be made under (i) any material Contractual Obligation to which the Company is a party or affecting the Company or the properties of the Company or any Subsidiary or (ii) any material order, injunction, writ or decree of any Governmental Authority or any arbitral award to which the Company or any Subsidiary or its property is subject or (c) violate any Law, except to the extent that such violation could not reasonably be expected to have Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Such filings and approvals as are required to be made or obtained under any state "blue sky" laws, and such filings and approvals as have been made or obtained, no notice to, filing with, exemption or review by, or authorization, consent or approval of, any Governmental Authority is required to be made or obtained by the Company in connection with the execution, delivery and performance by the Company of this Agreement and the consummation by the Company of the issuance of the Warrants except for any such notices, filings, exemptions, reviews, authorizations, consents and approvals the failure of which to make or obtain would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Anti-takeover Provisions and Rights Plan</u>. The Board of Directors of the Company (the "<u>Board of Directors</u>") has taken all necessary action, and will in the future take any necessary action, to ensure that the transactions contemplated by this Agreement and the Warrants and the consummation of the transactions contemplated hereby and thereby, including the exercise of the Warrants in accordance with their terms, will be exempt from any anti-takeover or similar provisions of the Company's Organizational Documents, and any other provisions of any applicable "moratorium", "control share", "fair price", "interested stockholder" or other anti-takeover laws and regulations of any jurisdiction, whether existing on the date hereof or implemented after the date hereof. The Company has taken all actions necessary, and will in the future take any necessary action, to render any stockholders' rights plan of the Company inapplicable to this Agreement and the Warrants and the consummation of the transactions contemplated hereby and thereby, including the exercise of the Warrants by Treasury in accordance with its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Reports</u>. Since December 31, 2017, the Company and each Subsidiary has timely filed all reports, registrations, documents, filings, statements and submissions, together with any amendments thereto, that it was required to file with any Governmental Authority (the foregoing, collectively, the "<u>Company Reports</u>") and has paid all fees and assessments due and payable in connection therewith, except, in each case, as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. As of their respective dates of filing, the Company Reports complied in all material respects with all statutes and applicable rules and regulations of the applicable Governmental Authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Offering of Securities</u>. Neither the Company nor any person acting on its behalf has taken any action (including any offering of any securities of the Company under circumstances which would require the integration of such offering with the offering of any of the Warrants under the Securities Act, and the rules and regulations of the Securities and Exchange Commission (the "<u>SEC</u>") promulgated thereunder), which might subject the offering, issuance or sale of any of the Warrants to Treasury pursuant to this Agreement to the registration requirements of the Securities Act

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Brokers and Finders</u>. No broker, finder or investment banker is entitled to any financial advisory, brokerage, finder's or other fee or commission in connection with this Agreement or the Warrants or the transactions contemplated hereby or thereby based upon arrangements made by or on behalf of the Company or any Subsidiary for which Treasury could have any liability.

Article III

**Covenants** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>Commercially Reasonable Efforts</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the terms and conditions of this Agreement, each of the parties will use its commercially reasonable efforts in good faith to take, or cause to be taken, all actions, and to do, or cause to be done, all things necessary, proper or desirable, or advisable under applicable laws, to enable consummation of the transactions contemplated hereby and shall use commercially reasonable efforts to cooperate with the other party to that end.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Company is required to obtain any stockholder approvals set forth on <u>Schedule 3</u>, then the Company shall comply with this Section 3.1(b). The Company shall call a special meeting of its stockholders, as promptly as practicable following the Initial Closing, to vote on proposals (collectively, the "<u>Stockholder Proposals</u>") to amend the Company's Organizational Documents to increase the number of authorized shares of Common Stock to at least such number as shall be sufficient to permit the full exercise of the Warrants for Common Stock and comply with the other provisions of this Section 3.1(b). The Board of Directors shall recommend to the Company's stockholders that such stockholders vote in favor of the Stockholder Proposals. In the event that the approval of any of the Stockholder Proposals is not obtained at such special stockholders meeting, the Company shall include a proposal to approve (and the Board of Directors shall recommend approval of) each such proposal at a meeting of its stockholders no less than once in each subsequent six-month period beginning on June 30, 2021 until all such approvals are obtained or made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <u>Expenses</u>. The Company shall pay (i) all reasonable out-of-pocket expenses incurred by Treasury (including the reasonable fees, charges and disbursements of any counsel for Treasury) in connection with the preparation, negotiation, execution, delivery and administration of this Agreement and the Warrants, any other agreements or documents executed in connection herewith or therewith, or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated), and (ii) all out-of-pocket expenses incurred by Treasury (including the fees, charges and disbursements of any counsel for Treasury), in connection with the enforcement or protection of its rights in connection with this Agreement and the Warrants, any other agreements or documents executed in connected herewith or therewith, or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated), including all such out-of-pocket expenses incurred during any workout, restructuring, negotiations or enforcement in respect of such Warrant Agreement, Warrant and other agreements or documents executed in connection herewith or therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 <u>Sufficiency of Authorized Common Stock</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) During the period from each Warrant Closing Date (or, if the approval of the Stockholder Proposals is required, the date of such approval) until the date on which no Warrants remain outstanding, the Company shall at all times have reserved for issuance, free of preemptive or similar rights, a sufficient number of authorized and unissued Warrant Shares to effectuate such exercise. Nothing in this Section 3.3 shall preclude the Company from satisfying its obligations in respect of the exercise of the Warrants by delivery of shares of Common Stock which are held in the treasury of the Company.

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Article IV

**Additional Agreements** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Investment</u> <u>Purposes</u>. Treasury acknowledges that the Warrants and the Warrant Shares have not been registered under the Securities Act or under any state securities laws. Treasury (a) is acquiring the Warrants pursuant to an exemption from registration under the Securities Act solely for investment without a view to sell and with no present intention to distribute them to any person in violation of the Securities Act or any applicable U.S. state securities laws; (b) will not sell or otherwise dispose of any of the Warrants or the Warrant Shares, except in compliance with the registration requirements or exemption provisions of the Securities Act and any applicable U.S. state securities laws; and (c) has such knowledge and experience in financial and business matters and in investments of this type that it is capable of evaluating the merits and risks of the Warrants and the Warrant Shares and of making an informed investment decision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <u>Legends</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Treasury agrees that all certificates or other instruments representing the Warrants and the Warrant Shares will bear a legend substantially to the following effect:

"THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION STATEMENT RELATING THERETO IS IN EFFECT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT AND SUCH LAWS."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that any Warrants or Warrant Shares (i) become registered under the Securities Act or (ii) are eligible to be transferred without restriction in accordance with Rule 144 or another exemption from registration under the Securities Act (other than Rule 144A), the Company shall issue new certificates or other instruments representing such Warrants or Warrant Shares, which shall not contain the legend in Section 4.2(a) above; *provided* that Treasury surrenders to the Company the previously issued certificates or other instruments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 <u>Certain Transactions</u>. The Company will not merge or consolidate with, or sell, transfer or lease all or substantially all of its property or assets to, any other party unless the successor, transferee or lessee party (or its ultimate parent entity), as the case may be (if not the Company), expressly assumes the due and punctual performance and observance of each and every covenant, agreement and condition of this Agreement and the Warrants to be performed and observed by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 <u>Transfer of Warrants and Warrant Shares</u>. Subject to compliance with applicable securities laws, Treasury shall be permitted to transfer, sell, assign or otherwise dispose of ("<u>Transfer</u>") all or a portion of the Warrants or Warrant Shares at any time, and the Company shall take all steps as may be reasonably requested by Treasury to facilitate the Transfer of the Warrants and the Warrant Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 <u>Registration Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Unless and until the Company becomes subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act, the Company shall have no obligation to comply with the provisions of this Section 4.5; *provided* that the Company covenants and agrees that it shall comply with this Section 4.5 as soon as practicable after the date that it becomes subject to such reporting requirements.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Registration</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Subject to the terms and conditions of this Agreement, the Company covenants and agrees that as soon as practicable after the date that the Company becomes subject to the reporting requirements of Sections 13 or 15(d) of the Exchange Act (and in any event no later than 180 days thereafter), the Company shall prepare and file with the SEC a Shelf Registration Statement covering the maximum number of Registrable Securities (or otherwise designate an existing Shelf Registration Statement filed with the SEC to cover the Registrable Securities) that may be issued pursuant to this Agreement and any Warrants outstanding at that time, and, to the extent the Shelf Registration Statement has not theretofore been declared effective or is not automatically effective upon such filing, the Company shall use reasonable best efforts to cause such Shelf Registration Statement to be declared or become effective and to keep such Shelf Registration Statement continuously effective and in compliance with the Securities Act and usable for resale of such Registrable Securities for a period from the date of its initial effectiveness until such time as there are no Registrable Securities remaining (including by refiling such Shelf Registration Statement (or a new Shelf Registration Statement) if the initial Shelf Registration Statement expires). So long as the Company is a well-known seasoned issuer (as defined in Rule 405 under the Securities Act) at the time of filing of the Shelf Registration Statement with the SEC, such Shelf Registration Statement shall be designated by the Company as an automatic Shelf Registration Statement. Notwithstanding the foregoing, if on the date hereof the Company is not eligible to file a registration statement on Form S-3, then the Company shall not be obligated to file a Shelf Registration Statement unless and until it is so eligible and is requested to do so in writing by Treasury.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Any registration pursuant to Section 4.5(b)(i) shall be effected by means of a shelf registration on an appropriate form under Rule 415 under the Securities Act (a "<u>Shelf Registration Statement</u>"). If Treasury or any other Holder intends to distribute any Registrable Securities by means of an underwritten offering it shall promptly so advise the Company and the Company shall take all reasonable steps to facilitate such distribution, including the actions required pursuant to Section 4.5(d); *provided* that the Company shall not be required to facilitate an underwritten offering of Registrable Securities unless the total number of Warrant Shares and Warrants expected to be sold in such offering exceeds, or are exercisable for, at least 20% of the total number of Warrant Shares for which Warrants issued under this Agreement could be exercised (giving effect to the anti-dilution adjustments in Warrants); and *provided*, *further* that the Company shall not be required to facilitate more than two completed underwritten offerings within any 12-month period. The lead underwriters in any such distribution shall be selected by the Holders of a majority of the Registrable Securities to be distributed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Company shall not be required to effect a registration (including a resale of Registrable Securities from an effective Shelf Registration Statement) or an underwritten offering pursuant to Section 4.5(b): (A) with respect to securities that are not Registrable Securities; or (B) if the Company has notified Treasury and all other Holders that in the good faith judgment of the Board of Directors, it would be materially detrimental to the Company or its securityholders for such registration or underwritten

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offering to be effected at such time, in which event the Company shall have the right to defer such registration or offering for a period of not more than 45 days after receipt of the request of Treasury or any other Holder; *provided* that such right to delay a registration or underwritten offering shall be exercised by the Company (1) only if the Company has generally exercised (or is concurrently exercising) similar black-out rights against holders of similar securities that have registration rights and (2) not more than three times in any 12-month period and not more than 90 days in the aggregate in any 12-month period. The Company shall notify the Holders of the date of any anticipated termination of any such deferral period prior to such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) If during any period when an effective Shelf Registration Statement is not available, the Company proposes to register any of its equity securities, other than a registration pursuant to Section 4.5(b)(i) or a Special Registration, and the registration form to be filed may be used for the registration or qualification for distribution of Registrable Securities, the Company will give prompt written notice to Treasury and all other Holders of its intention to effect such a registration (but in no event less than ten days prior to the anticipated filing date) and will include in such registration all Registrable Securities with respect to which the Company has received written requests for inclusion therein within ten Business Days after the date of the Company's notice (a "<u>Piggyback Registration</u>"). Any such person that has made such a written request may withdraw its Registrable Securities from such Piggyback Registration by giving written notice to the Company and the managing underwriter, if any, on or before the fifth Business Day prior to the planned effective date of such Piggyback Registration. The Company may terminate or withdraw any registration under this Section 4.5(b)(iv) prior to the effectiveness of such registration, whether or not Treasury or any other Holders have elected to include Registrable Securities in such registration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) If the registration referred to in Section 4.5(b)(iv) is proposed to be underwritten, the Company will so advise Treasury and all other Holders as a part of the written notice given pursuant to Section 4.5(b)(iv). In such event, the right of Treasury and all other Holders to registration pursuant to Section 4.5(b) will be conditioned upon such persons' participation in such underwriting and the inclusion of such person's Registrable Securities in the underwriting if such securities are of the same class of securities as the securities to be offered in the underwritten offering, and each such person will (together with the Company and the other persons distributing their securities through such underwriting) enter into an underwriting agreement in customary form with the underwriter or underwriters selected for such underwriting by the Company; *provided* that Treasury (as opposed to other Holders) shall not be required to indemnify any person in connection with any registration. If any participating person disapproves of the terms of the underwriting, such person may elect to withdraw therefrom by written notice to the Company, the managing underwriters and Treasury (if Treasury is participating in the underwriting).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) If either (x) the Company grants "piggyback" registration rights to one or more third parties to include their securities in an underwritten offering under the Shelf Registration Statement pursuant to Section 4.5(b)(ii) or (y) a Piggyback Registration under Section 4.5(b)(iv) relates to an underwritten offering on behalf of the Company, and in either case the managing underwriters advise the Company that in their reasonable opinion the number of securities requested to be included in such offering exceeds the number which can be sold without adversely affecting the marketability of such offering (including an adverse effect on the per share offering price), the Company will include in such offering only such number of securities that in the reasonable opinion of such managing underwriters can be sold without adversely affecting the marketability of the offering (including an adverse effect on the per share offering price), which securities will be so included in the following order of priority: (A) first, in the case of a Piggyback Registration under Section 4.5(b)(iv), the securities the Company proposes to sell, (B) then the Registrable Securities of Treasury and all other Holders who have requested inclusion of Registrable Securities pursuant to Section 4.5(b)(ii) or Section 4.5(b)(iv), as applicable, *pro rata* on the basis of the aggregate number of such securities or shares owned by each such person and (C) lastly, any other securities of the Company that have been requested to be so included, subject to the terms of this Agreement; *provided, however,* that if the Company has, prior to the date hereof, entered into an agreement with respect to its securities that is inconsistent with the order of priority contemplated hereby then it shall apply the order of priority in such conflicting agreement to the extent that this Agreement would otherwise result in a breach under such agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Expenses of Registration</u>. All Registration Expenses incurred in connection with any registration, qualification or compliance hereunder shall be borne by the Company. All Selling Expenses incurred in connection with any registrations hereunder shall be borne by the holders of the securities so registered *pro rata* on the basis of the aggregate offering or sale price of the securities so registered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Obligations of the Company</u>. The Company shall use its reasonable best efforts, for so long as there are Registrable Securities outstanding, to take such actions as are under its control to not become an ineligible issuer (as defined in Rule 405 under the Securities Act) and to remain a well-known seasoned issuer (as defined in Rule 405 under the Securities Act) if it has such status on the date hereof or becomes eligible for such status in the future. In addition, whenever required to effect the registration of any Registrable Securities or facilitate the distribution of Registrable Securities pursuant to an effective Shelf Registration Statement, the Company shall, as expeditiously as reasonably practicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Prepare and file with the SEC a prospectus supplement with respect to a proposed offering of Registrable Securities pursuant to an effective registration statement, subject to Section 4.5(e), keep such registration statement effective and keep such prospectus supplement current until the securities described therein are no longer Registrable Securities. The plan of distribution included in such registration statement, or, as applicable, prospectus supplement thereto, shall include, among other things, an underwritten offering, ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers, block trades, privately negotiated transactions, the writing or settlement of options or other derivative transactions and any other method permitted pursuant to applicable law, and any combination of any such methods of sale.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Prepare and file with the SEC such amendments and supplements to the applicable registration statement and the prospectus or prospectus supplement used in connection with such registration statement as may be necessary to comply with the provisions of the Securities Act with respect to the disposition of all securities covered by such registration statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Furnish to the Holders and any underwriters such number of copies of the applicable registration statement and each such amendment and supplement thereto (including in each case all exhibits) and of a prospectus, including a preliminary prospectus, in conformity with the requirements of the Securities Act, and such other documents as they may reasonably request in order to facilitate the disposition of Registrable Securities owned or to be distributed by them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Use its reasonable best efforts to register and qualify the securities covered by such registration statement under such other securities or Blue Sky laws of such jurisdictions as shall be reasonably requested by the Holders or any managing underwriter(s), to keep such registration or qualification in effect for so long as such registration statement remains in effect, and to take any other action which may be reasonably necessary to enable such seller to consummate the disposition in such jurisdictions of the securities owned by such Holder; *provided* that the Company shall not be required in connection therewith or as a condition thereto to qualify to do business or to file a general consent to service of process in any such states or jurisdictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Notify each Holder of Registrable Securities at any time when a prospectus relating thereto is required to be delivered under the Securities Act of the happening of any event as a result of which the applicable prospectus, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Give written notice to the Holders:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) when any registration statement filed pursuant to Section 4.5(b) or any amendment thereto has been filed with the SEC (except for any amendment effected by the filing of a document with the SEC pursuant to the Exchange Act) and when such registration statement or any post-effective amendment thereto has become effective;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) of any request by the SEC for amendments or supplements to any registration statement or the prospectus included therein or for additional information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) of the issuance by the SEC of any stop order suspending the effectiveness of any registration statement or the initiation of any proceedings for that purpose;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) of the receipt by the Company or its legal counsel of any notification with respect to the suspension of the qualification of the Common Stock for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) of the happening of any event that requires the Company to make changes in any effective registration statement or the prospectus related to the registration statement in order to make the statements therein not misleading (which notice shall be accompanied by an instruction to suspend the use of the prospectus until the requisite changes have been made); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) if at any time the representations and warranties of the Company contained in any underwriting agreement contemplated by Section 4.5(d)(x) cease to be true and correct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) Use its reasonable best efforts to prevent the issuance or obtain the withdrawal of any order suspending the effectiveness of any registration statement referred to in Section 4.5(d)(vi)(C) at the earliest practicable time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) Upon the occurrence of any event contemplated by Section 4.5(d)(v), 4.5(d)(vi)(E) or 4.5(e), promptly prepare a post-effective amendment to such registration statement or a supplement to the related prospectus or file any other required document so that, as thereafter delivered to the Holders and any underwriters, the prospectus will not contain an untrue statement of a material fact or omit to state any material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. If the Company notifies the Holders in accordance with Section 4.5(d)(vi)(E) to suspend the use of the prospectus until the requisite changes to the prospectus have been made, then the Holders and any underwriters shall suspend use of such prospectus and use their reasonable best efforts to return to the Company all copies of such prospectus (at the Company's expense) other than permanent file copies then in such Holders' or underwriters' possession. The total number of days that any such suspension may be in effect in any 12-month period shall not exceed 90 days. The Company shall notify the Holders of the date of any anticipated termination of any such suspension period prior to such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) Use reasonable best efforts to procure the cooperation of the Company's transfer agent in settling any offering or sale of Registrable Securities, including with respect to the transfer of physical stock certificates into book-entry form in accordance with any procedures reasonably requested by the Holders or any managing underwriter(s).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) If an underwritten offering is requested pursuant to Section 4.5(b)(ii), enter into an underwriting agreement in customary form, scope and substance and take all such other actions reasonably requested by the Holders of a majority of the Registrable Securities being sold in connection therewith or by the managing underwriter(s), if any, to expedite or facilitate the underwritten disposition of such Registrable Securities, and in connection therewith in any underwritten offering (including making members of management and executives of the Company available to participate in "road shows", similar sales events and other marketing activities), (A) make such representations and warranties to the Holders that are selling stockholders and the managing underwriter(s), if any, with respect to the business of the Company and its subsidiaries, and the Shelf Registration Statement, prospectus and documents, if any, incorporated or deemed to be

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incorporated by reference therein, in each case, in customary form, substance and scope, and, if true, confirm the same if and when requested, (B) use its reasonable best efforts to furnish the underwriters with opinions and "10b-5" letters of counsel to the Company, addressed to the managing underwriter(s), if any, covering the matters customarily covered in such opinions and letters requested in underwritten offerings, (C) use its reasonable best efforts to obtain "cold comfort" letters from the independent certified public accountants of the Company (and, if necessary, any other independent certified public accountants of any business acquired by the Company for which financial statements and financial data are included in the Shelf Registration Statement) who have certified the financial statements included in such Shelf Registration Statement, addressed to each of the managing underwriter(s), if any, such letters to be in customary form and covering matters of the type customarily covered in "cold comfort" letters, (D) if an underwriting agreement is entered into, the same shall contain indemnification provisions and procedures customary in underwritten offerings (provided that Treasury shall not be obligated to provide any indemnity), and (E) deliver such documents and certificates as may be reasonably requested by the Holders of a majority of the Registrable Securities being sold in connection therewith, their counsel and the managing underwriter(s), if any, to evidence the continued validity of the representations and warranties made pursuant to clause (A) above and to evidence compliance with any customary conditions contained in the underwriting agreement or other agreement entered into by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) Make available for inspection by a representative of Holders that are selling stockholders, the managing underwriter(s), if any, and any attorneys or accountants retained by such Holders or managing underwriter(s), at the offices where normally kept, during reasonable business hours, financial and other records, pertinent corporate documents and properties of the Company, and cause the officers, directors and employees of the Company to supply all information in each case reasonably requested (and of the type customarily provided in connection with due diligence conducted in connection with a registered public offering of securities) by any such representative, managing underwriter(s), attorney or accountant in connection with such Shelf Registration Statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) Use reasonable best efforts to cause all such Registrable Securities to be listed on each national securities exchange on which similar securities issued by the Company are then listed or, if no similar securities issued by the Company are then listed on any national securities exchange, use its reasonable best efforts to cause all such Registrable Securities to be listed on such securities exchange as Treasury may designate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) If requested by Holders of a majority of the Registrable Securities being registered and/or sold in connection therewith, or the managing underwriter(s), if any, promptly include in a prospectus supplement or amendment such information as the Holders of a majority of the Registrable Securities being registered and/or sold in connection therewith or managing underwriter(s), if any, may reasonably request in order to permit the intended method of distribution of such securities and make all required filings of such prospectus supplement or such amendment as soon as practicable after the Company has received such request.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) Timely provide to its security holders earning statements satisfying the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Suspension of Sales</u>. Upon receipt of written notice from the Company that a registration statement, prospectus or prospectus supplement contains or may contain an untrue statement of a material fact or omits or may omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading or that circumstances exist that make inadvisable use of such registration statement, prospectus or prospectus supplement, Treasury and each Holder of Registrable Securities shall forthwith discontinue disposition of Registrable Securities until Treasury and/or Holder has received copies of a supplemented or amended prospectus or prospectus supplement, or until Treasury and/or such Holder is advised in writing by the Company that the use of the prospectus and, if applicable, prospectus supplement may be resumed, and, if so directed by the Company, Treasury and/or such Holder shall deliver to the Company (at the Company's expense) all copies, other than permanent file copies then in Treasury and/or such Holder's possession, of the prospectus and, if applicable, prospectus supplement covering such Registrable Securities current at the time of receipt of such notice. The total number of days that any such suspension may be in effect in any 12-month period shall not exceed 90 days. The Company shall notify Treasury prior to the anticipated termination of any such suspension period of the date of such anticipated termination

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Termination of Registration Rights</u>. A Holder's registration rights as to any securities held by such Holder shall not be available unless such securities are Registrable Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Furnishing Information</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Neither Treasury nor any Holder shall use any free writing prospectus (as defined in Rule 405) in connection with the sale of Registrable Securities without the prior written consent of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) It shall be a condition precedent to the obligations of the Company to take any action pursuant to Section 4.5(d) that Treasury and/or the selling Holders and the underwriters, if any, shall furnish to the Company such information regarding themselves, the Registrable Securities held by them and the intended method of disposition of such securities as shall be required to effect the registered offering of their Registrable Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company agrees to indemnify each Holder and, if a Holder is a person other than an individual, such Holder's officers, directors, employees, agents, representatives and Affiliates, and each Person, if any, that controls a Holder within the meaning of the Securities Act (each, an "<u>Indemnitee</u>"), against any and all losses, claims, damages, actions, liabilities, costs and expenses (including reasonable fees, expenses and disbursements of attorneys and other professionals incurred in connection with investigating, defending, settling, compromising or paying any such losses, claims, damages, actions, liabilities, costs and expenses), joint or several, arising out of or based

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upon any untrue statement or alleged untrue statement of material fact contained in any registration statement, including any preliminary prospectus or final prospectus contained therein or any amendments or supplements thereto or any documents incorporated therein by reference or contained in any free writing prospectus (as such term is defined in Rule 405) prepared by the Company or authorized by it in writing for use by such Holder (or any amendment or supplement thereto); or any omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; *provided*, that the Company shall not be liable to such Indemnitee in any such case to the extent that any such loss, claim, damage, liability (or action or proceeding in respect thereof) or expense arises out of or is based upon (A) an untrue statement or omission made in such registration statement, including any such preliminary prospectus or final prospectus contained therein or any such amendments or supplements thereto or contained in any free writing prospectus (as such term is defined in Rule 405) prepared by the Company or authorized by it in writing for use by such Holder (or any amendment or supplement thereto), in reliance upon and in conformity with information regarding such Indemnitee or its plan of distribution or ownership interests which was furnished in writing to the Company by such Indemnitee for use in connection with such registration statement, including any such preliminary prospectus or final prospectus contained therein or any such amendments or supplements thereto, or (B) offers or sales effected by or on behalf of such Indemnitee "by means of" (as defined in Rule 159A) a "free writing prospectus" (as defined in Rule 405) that was not authorized in writing by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If the indemnification provided for in Section 4.5(h)(i) is unavailable to an Indemnitee with respect to any losses, claims, damages, actions, liabilities, costs or expenses referred to therein or is insufficient to hold the Indemnitee harmless as contemplated therein, then the Company, in lieu of indemnifying such Indemnitee, shall contribute to the amount paid or payable by such Indemnitee as a result of such losses, claims, damages, actions, liabilities, costs or expenses in such proportion as is appropriate to reflect the relative fault of the Indemnitee, on the one hand, and the Company, on the other hand, in connection with the statements or omissions which resulted in such losses, claims, damages, actions, liabilities, costs or expenses as well as any other relevant equitable considerations. The relative fault of the Company, on the one hand, and of the Indemnitee, on the other hand, shall be determined by reference to, among other factors, whether the untrue statement of a material fact or omission to state a material fact relates to information supplied by the Company or by the Indemnitee and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission; the Company and each Holder agree that it would not be just and equitable if contribution pursuant to this Section 4.5(h)(ii) were determined by *pro rata* allocation or by any other method of allocation that does not take account of the equitable considerations referred to in Section 4.5(h)(i). No Indemnitee guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from the Company if the Company was not guilty of such fraudulent misrepresentation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Assignment of Registration Rights</u>. The rights of Treasury to registration of Registrable Securities pursuant to Section 4.5(b) may be assigned by Treasury to a transferee or assignee of Registrable Securities in connection with a transfer of a total number of Warrant Shares and/or Warrants exercisable for at least 20% of the total number of Warrant Shares for which Warrants issued and to be issued under this Agreement could be exercised (giving effect to the anti-dilution adjustments in Warrants); *provided*, *however*, the transferor shall, within ten days after such transfer, furnish to the Company written notice of the name and address of such transferee or assignee and the number and type of Registrable Securities that are being assigned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Clear Market</u>. With respect to any underwritten offering of Registrable Securities by Treasury or other Holders pursuant to this Section 4.5, the Company agrees not to effect (other than pursuant to such registration or pursuant to a Special Registration) any public sale or distribution, or to file any Shelf Registration Statement (other than such registration or a Special Registration) covering, in the case of an underwritten offering of Common Stock or Warrants, any of its equity securities, or, in each case, any securities convertible into or exchangeable or exercisable for such securities, during the period not to exceed 30 days following the effective date of such offering. The Company also agrees to cause such of its directors and senior executive officers to execute and deliver customary lock-up agreements in such form and for such time period up to 30 days as may be requested by the managing underwriter. "<u>Special Registration</u>" means the registration of (A) equity securities and/or options or other rights in respect thereof solely registered on Form S-4 or Form S-8 (or successor form) or (B) shares of equity securities and/or options or other rights in respect thereof to be offered to directors, members of management, employees, consultants, customers, lenders or vendors of the Company or Company Subsidiaries or in connection with dividend reinvestment plans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Rule 144; Rule 144A</u>. With a view to making available to Treasury and Holders the benefits of certain rules and regulations of the SEC which may permit the sale of the Registrable Securities to the public without registration, the Company agrees to use its reasonable best efforts to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (A) file with the SEC, in a timely manner, all reports and other documents required of the Company under the Exchange Act, and (B) if at any time the Company is not required to file such reports, make available, upon the request of any Holder, such information necessary to permit sales pursuant to Rule 144A (including the information required by Rule 144A(d)(4) under the Securities Act);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) so long as Treasury or a Holder owns any Registrable Securities, furnish to Treasury or such Holder forthwith upon request: a written statement by the Company as to its compliance with the reporting requirements of Rule 144 under the Securities Act, and of the Exchange Act; a copy of the most recent annual or quarterly report of the Company; and such other reports and documents as Treasury or Holder may reasonably request in availing itself of any rule or regulation of the SEC allowing it to sell any such securities to the public without registration; *provided*, *however*, that the availability of the foregoing reports on the EDGAR filing system of the SEC will be deemed to satisfy the foregoing delivery requirements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) take such further action as any Holder may reasonably request, all to the extent required from time to time to enable such Holder to sell Registrable Securities without registration under the Securities Act.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) As used in this Section 4.5, the following terms shall have the following respective meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "<u>Holder</u>" means Treasury and any other holder of Registrable Securities to whom the registration rights conferred by this Agreement have been transferred in compliance with Section 4.5(i) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "<u>Register</u>," "<u>registered</u>," and "<u>registration</u>" shall refer to a registration effected by preparing and (A) filing a registration statement in compliance with the Securities Act and applicable rules and regulations thereunder, and the declaration or ordering of effectiveness of such registration statement or (B) filing a prospectus and/or prospectus supplement in respect of an appropriate effective registration statement on Form S-3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) "<u>Registrable Securities</u>" means (A) the Warrants (subject to Section 4.5(q)) and (B) any equity securities issued or issuable directly or indirectly with respect to the securities referred to in the foregoing clause (A) by way of conversion, exercise or exchange thereof, including the Warrant Shares, or share dividend or share split or in connection with a combination of shares, recapitalization, reclassification, merger, amalgamation, arrangement, consolidation or other reorganization, *provided* that, once issued, such securities will not be Registrable Securities when (1) they are sold pursuant to an effective registration statement under the Securities Act, (2) except as provided below in Section 4.5(q), they may be sold pursuant to Rule 144 without limitation thereunder on volume or manner of sale, (3) they shall have ceased to be outstanding or (4) they have been sold in a private transaction in which the transferor's rights under this Agreement are not assigned to the transferee of the securities. No Registrable Securities may be registered under more than one registration statement at any one time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) "<u>Registration Expenses</u>" mean all expenses incurred by the Company in effecting any registration pursuant to this Agreement (whether or not any registration or prospectus becomes effective or final) or otherwise complying with its obligations under this Section 4.5, including all registration, filing and listing fees, printing expenses, fees and disbursements of counsel for the Company, blue sky fees and expenses, expenses incurred in connection with any "road show", the reasonable fees and disbursements of Treasury's counsel (if Treasury is participating in the registered offering), and expenses of the Company's independent accountants in connection with any regular or special reviews or audits incident to or required by any such registration, but shall not include Selling Expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "<u>Rule 144</u>", "<u>Rule 144A</u>", "<u>Rule 159A</u>", "<u>Rule 405</u>" and "<u>Rule 415</u>" mean, in each case, such rule promulgated under the Securities Act (or any successor provision), as the same shall be amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) "<u>Selling Expenses</u>" mean all discounts, selling commissions and stock transfer taxes applicable to the sale of Registrable Securities and fees and disbursements of counsel for any Holder (other than the fees and disbursements of Treasury's counsel included in Registration Expenses).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) At any time, any holder of Securities (including any Holder) may elect to forfeit its rights set forth in this Section 4.5 from that date forward; *provided*, that a Holder forfeiting such rights shall nonetheless be entitled to participate under Section 4.5(b)(iv) – (vi) in any Pending Underwritten Offering to the same extent that such Holder would have been entitled to if the holder had not withdrawn; and *provided*, *further*, that no such forfeiture shall terminate a Holder's rights or obligations under Section 4.5(g) with respect to any prior registration or Pending Underwritten Offering. "*Pending Underwritten Offering"* means*,* with respect to any Holder forfeiting its rights pursuant to this Section 4.5(m), any underwritten offering of Registrable Securities in which such Holder has advised the Company of its intent to register its Registrable Securities either pursuant to Section 4.5(b)(ii) or 4.5(b)(iv) prior to the date of such Holder's forfeiture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Specific Performance</u>. The parties hereto acknowledge that there would be no adequate remedy at law if the Company fails to perform any of its obligations under this Section 4.5 and that Treasury and the Holders from time to time may be irreparably harmed by any such failure, and accordingly agree that Treasury and such Holders, in addition to any other remedy to which they may be entitled at law or in equity, to the fullest extent permitted and enforceable under applicable law shall be entitled to compel specific performance of the obligations of the Company under this Section 4.5 in accordance with the terms and conditions of this Section 4.5.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>No Inconsistent Agreements</u>. The Company shall not, on or after the date hereof, enter into any agreement with respect to its securities that may impair the rights granted to Treasury and the Holders under this Section 4.5 or that otherwise conflicts with the provisions hereof in any manner that may impair the rights granted to Treasury and the Holders under this Section 4.5. In the event the Company has, prior to the date hereof, entered into any agreement with respect to its securities that is inconsistent with the rights granted to Treasury and the Holders under this Section 4.5 (including agreements that are inconsistent with the order of priority contemplated by Section 4.5(b)(vi)) or that may otherwise conflict with the provisions hereof, the Company shall use its reasonable best efforts to amend such agreements to ensure they are consistent with the provisions of this Section 4.5. Any transaction entered into by the Company that would reasonably be expected to require the inclusion in a Shelf Registration Statement or any Company Report filed with the SEC of any separate financial statements pursuant to Rule 3-05 of Regulation S-X or pro forma financial statements pursuant to Article 11 of Regulation S-X shall include provisions requiring the Company's counterparty to provide any information necessary to allow the Company to comply with its obligation hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Certain Offerings by Treasury</u>. In the case of any securities held by Treasury that cease to be Registrable Securities solely by reason of clause (2) in the definition of "Registrable Securities," the provisions of Sections 4.5(b)(ii), clauses (iv), (ix) and (x)-(xii) of Section 4.5(d), Section 4.5(h) and Section 4.5(j) shall continue to apply until such securities otherwise cease to be Registrable Securities. In any such case, an "underwritten" offering or other disposition shall include any distribution of such securities on behalf of Treasury by one or more broker-dealers, an "underwriting agreement" shall include any purchase agreement entered into by such broker-dealers, and any "registration statement" or "prospectus" shall include any offering document approved by the Company and used in connection with such distribution.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Registered Sales of the Warrant</u><u>s</u>. The Holders agree to sell the Warrants or any portion thereof under the Shelf Registration Statement only beginning 30 days after notifying the Company of any such sale, during which 30-day period Treasury and all Holders of the Warrants shall take reasonable steps to agree to revisions to the Warrants, at the expense of the Company, to permit a public distribution of the Warrants, including entering into a revised warrant agreement, appointing a warrant agent, and making the securities eligible for book entry clearing and settlement at the Depositary Trust Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>Market Stand-Off.</u> In the event of an IPO, the Company shall not be required to effect a registration (including a resale of Registrable Securities from an effective Shelf Registration Statement) or an underwritten offering pursuant to Section 4.5(b) and Treasury agrees, if requested by the managing underwriter or underwriters in such IPO, not to (i) offer for sale, sell, pledge, or otherwise dispose of (or enter into any transaction or device that is designed to, or could be expected to, result in the disposition by any person at any time in the future of) any Registrable Securities (including Registrable Securities that may be deemed to be beneficially owned by the undersigned in accordance with the rules and regulations of the SEC); (ii) enter into any swap or other derivatives transaction that transfers to another, in whole or in part, any of the economic benefits or risks of ownership of Registrable Securities, whether any such transaction is to be settled by delivery of Registrable Securities, in cash or otherwise; (iii) make any demand for or exercise any right or cause to be filed a registration statement, including any amendments thereto, with respect to the registration of any Registrable Securities; or (iv) publicly disclose the intention to do any of the foregoing, in each case (to the extent timely notified in writing by the Company or the managing underwriter or underwriters), during the period beginning seven days before and ending 90 days after the date of the underwriting agreement entered into in connection with such IPO. If requested by the managing underwriter or underwriters of any such IPO, Treasury shall execute a separate agreement to the foregoing effect. The Company may impose stop-transfer instructions with respect to Registrable Securities subject to the foregoing restriction until the end of the period referenced above. The foregoing provisions of this Section 4.5(r) shall not apply to the sale of any shares to an underwriter pursuant to an underwriting agreement, and shall be applicable only if all officers, directors, and shareholders beneficially owning more than one percent (1%) of the Company's outstanding Common Stock are subject to the same restrictions.

"IPO" means the first underwritten public offering and sale of the Common Stock for cash pursuant to an effective registration statement (other than on Form S-4, S-8 or a comparable form) under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6 <u>Voting of Warrant Shares</u>. Notwithstanding anything in this Agreement to the contrary, Treasury shall not exercise any voting rights with respect to the Warrant Shares.

Article V

**Miscellaneous** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <u>Survival of Representations and Warranties</u>. The representations and warranties of the Company made herein or in any certificates delivered in connection with the Initial Closing or any subsequent Closing shall survive such Closing without limitation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <u>Amendment</u>. No amendment of any provision of this Agreement will be effective unless made in writing and signed by an officer or a duly authorized representative of each party; *provided* that Treasury may unilaterally amend any provision of this Agreement to the extent required to comply with any changes after the date hereof in applicable federal statutes. No failure or delay by any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative of any rights or remedies provided by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 <u>Waiver of Conditions</u>. No waiver will be effective unless it is in a writing signed by a duly authorized officer of the waiving party that makes express reference to the provision or provisions subject to such waiver.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 **<u>Governing Law: Submission to Jurisdiction, Etc.</u> This Agreement will be governed by and construed in accordance with the federal law of the United States if and to the extent such law is applicable, and otherwise in accordance with the laws of the State of New York applicable to contracts made and to be performed entirely within such State. Each of the parties hereto agrees (a) to submit to the exclusive jurisdiction and venue of the United States District Court for the District of Columbia and the United States Court of Federal Claims for any and all civil actions, suits or proceedings arising out of or relating to this Agreement or the Warrants or the transactions contemplated hereby or thereby, and (b) that notice may be served upon (i) the Company at the address and in the manner set forth for notices to the Company in Section 5.5 and (ii) Treasury in accordance with federal law. To the extent permitted by applicable law, each of the parties hereto hereby unconditionally waives trial by jury in any civil legal action or proceeding relating to this Agreement or the Warrants or the transactions contemplated hereby or thereby.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 <u>Notices</u>. Any notice, request, instruction or other document to be given hereunder by any party to the other will be in writing and will be deemed to have been duly given (a) on the date of delivery if delivered personally, or by facsimile, upon confirmation of receipt, or (b) on the second Business Day following the date of dispatch if delivered by a recognized next day courier service. All notices to the Company shall be delivered as set forth below, or pursuant to such other instruction as may be designated in writing by the Company to Treasury. All notices to Treasury shall be delivered as set forth below, or pursuant to such other instructions as may be designated in writing by Treasury to the Company.

If to the Company:

Republic Airways Holdings Inc.

8909 Purdue Road, Suite 300

Indianapolis, Indiana 46266

Attention: Chad Pulley

with a copy to:

Simpson Thacher & Bartlett LLP

900 G Street, N.W.

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Washington, DC 20001

Attention: Joshua Ford Bonnie and Jonathan R. Ozner

If to Treasury:

United States Department of the Treasury

1500 Pennsylvania Avenue, NW, Room 2312

Washington, D.C. 20220

Attention: Assistant General Counsel (Banking and Finance)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6 <u>Definitions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The term "<u>Governmental Authority</u>" means the government of the United States of America or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The term "<u>Laws</u>" has the meaning ascribed thereto in the Promissory Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The term "<u>Lien</u>" has the meaning ascribed thereto in the Promissory Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The term "<u>Material Adverse Effect</u>" means (a) a material adverse change in, or a material adverse effect on, the operations, business, properties, liabilities (actual or contingent), condition (financial or otherwise) or prospects of the Company and its Subsidiaries taken as a whole; or (b) a material adverse effect on (i) the ability of the Company to perform its obligations under this Agreement or any Warrant or (ii) the legality, validity, binding effect or enforceability against the Company of this Agreement or any Warrant to which it is a party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The term "<u>Organizational Documents</u>" has the meaning ascribed thereto in the Promissory Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The term "<u>Subsidiary</u>" has the meaning ascribed thereto in the Promissory Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7 <u>Assignment</u>. Neither this Agreement nor any right, remedy, obligation nor liability arising hereunder or by reason hereof shall be assignable by any party hereto without the prior written consent of the other party, and any attempt to assign any right, remedy, obligation or liability hereunder without such consent shall be void, except (a) an assignment, in the case of a Business Combination where such party is not the surviving entity, or a sale of substantially all of its assets, to the entity which is the survivor of such Business Combination or the purchaser in such sale and (b) as provided in Section 4.5.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.8 <u>Severability</u>. If any provision of this Agreement or the Warrants, or the application thereof to any person or circumstance, is determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions hereof, or the application of such provision to persons or circumstances other than those as to which it has been held invalid or unenforceable, will remain in full force and effect and shall in no way be affected, impaired or invalidated thereby, so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party. Upon such determination, the parties shall negotiate in good faith in an effort to agree upon a suitable and equitable substitute provision to effect the original intent of the parties.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.9 <u>No Third Party Beneficiaries</u>. Nothing contained in this Agreement, expressed or implied, is intended to confer upon any person or entity other than the Company and Treasury any benefit, right or remedies, except that the provisions of Section 4.5 shall inure to the benefit of the persons referred to in that Section.

\* \* \*

*[Signature page follows]* 

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective officers thereunto duly authorized, as of the date first above written.

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| | |
|:---|:---|
| THE UNITED STATES DEPARTMENT OF THE TREASURY | THE UNITED STATES DEPARTMENT OF THE TREASURY |
| By: | /s/ David A. Lebryk |
| Name: | David A. Lebryk |
| Title: | Fiscal Assistant Secretary |
| REPUBLIC AIRWAYS HOLDINGS INC. | REPUBLIC AIRWAYS HOLDINGS INC. |
| By: | /s/ Joseph P. Allman |
| Name: | Joseph P. Allman |
| Title: | Senior Vice President and Chief Financial Officer |

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**ANNEX A** 

**<u>FORM OF OPINION</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company has been duly incorporated and is validly existing as a corporation in good standing under the laws of the state of its incorporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each of the Warrants has been duly authorized and, when executed and delivered as contemplated by the Agreement, will constitute a valid and legally binding obligation of the Company enforceable against the Company in accordance with its terms, except as the same may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors' rights generally and general equitable principles, regardless of whether such enforceability is considered in a proceeding at law or in equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The shares of Common Stock issuable upon exercise of the Warrants have been duly authorized and reserved for issuance upon exercise of the Warrants and when so issued in accordance with the terms of the Warrants will be validly issued, fully paid and non-assessable **[*insert, if applicable:*** , subject to the approvals of the Company's stockholders set forth on <u>Schedule 3</u>**<u>]</u>**<u>.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company has the corporate power and authority to execute and deliver the Agreement and the Warrants and **[*insert, if applicable:*** , subject to the approvals of the Company's stockholders set forth on <u>Schedule 3</u>**]** to carry out its obligations thereunder (which includes the issuance of the Warrants and Warrant Shares).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The execution, delivery and performance by the Company of the Agreement and the Warrants and the consummation of the transactions contemplated thereby have been duly authorized by all necessary corporate action on the part of the Company and its stockholders, and no further approval or authorization is required on the part of the Company **[*insert, if applicable:*** , subject, in each case, to the approvals of the Company's stockholders set forth on <u>Schedule 3</u>**]**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Agreement is a valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except as the same may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors' rights generally and general equitable principles, regardless of whether such enforceability is considered in a proceeding at law or in equity; *provided*, *however*, such counsel need express no opinion with respect to Section 4.5(h) or the severability provisions of the Agreement insofar as Section 4.5(h) is concerned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) No registration of the Warrant and the Common Stock issuable upon exercise of the Warrant under the U.S. Securities Act of 1933, as amended, is required for the offer and sale of the Warrant or the Common Stock issuable upon exercise of the Warrant by the Company to the Holder pursuant to and in the manner contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The Company is not required to be registered as an investment company under the Investment Company Act of 1940, as amended.

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**ANNEX B** 

**<u>FORM OF WARRANT</u>**

[SEE ATTACHED]

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**FORM OF WARRANT TO PURCHASE COMMON STOCK** 

THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION STATEMENT RELATING THERETO IS IN EFFECT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT AND SUCH LAWS.

**WARRANT** 

**to purchase** 

**Shares of Common Stock** 

**of Republic Airways Holdings Inc.** 

Issue Date:    

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Definitions</u>. Unless the context otherwise requires, when used herein the following terms shall have the meanings indicated.

"*Affiliate*" means, with respect to any person, any person directly or indirectly controlling, controlled by or under common control with, such other person. For purposes of this definition, "<u>control</u>" (including, with correlative meanings, the terms "<u>controlled by</u>" and "<u>under common control with</u>") when used with respect to any person, means the possession, directly or indirectly, of the power to cause the direction of management and/or policies of such person, whether through the ownership of voting securities by contract or otherwise.

"*Aggregate Net Cash Settlement Amount*" has the meaning ascribed thereto in Section 2(A).

"*Aggregate Net Share Settlement Amount*" has the meaning ascribed thereto in Section 2(B).

"*Average Market Price*" means, with respect to any security, (i) the arithmetic average of the Market Price of such security for the 15 consecutive trading day period ending on and including the trading day immediately preceding the determination date or (ii) if the security has not been traded on any national or regional securities exchange for at least the 15 consecutive trading day period ending on and including the trading day immediately preceding the determination date and the Quotations are not available for the remainder of such period, the arithmetic average of the Market Price of such security for the trading days within such period during which the security was traded on such national securities exchange.

"*Board of Directors*" means the board of directors of the Company, including any duly authorized committee thereof.

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"*Business Combination*" means a merger, consolidation, statutory share exchange or similar transaction that requires the approval of the Company's stockholders.

"*Business Day*" means any day except Saturday, Sunday and any day on which banking institutions in the State of New York generally are authorized or required by law or other governmental actions to close; *provided* that banks shall be deemed to be generally open for business in the event of a "shelter in place" or similar closure of physical branch locations at the direction of any governmental entity if such banks' electronic funds transfer system (including wire transfers) are open for use by customers on such day.

"*Capital Stock*" means (A) with respect to any Person that is a corporation or company, any and all shares, interests, participations or other equivalents (however designated) of capital or capital stock of such Person and (B) with respect to any Person that is not a corporation or company, any and all partnership or other equity interests of such Person.

"*Charter*" means, with respect to any Person, its certificate or articles of incorporation, articles of association, or similar organizational document.

"*Common Stock*" means common stock of the Company, par value $0.001 subject to adjustment as provided in Section 13(C).

"*Company*" means the Person whose name, corporate or other organizational form and jurisdiction of organization is set forth in Item 1 of Schedule A hereto.

"*conversion*" has the meaning set forth in Section 13(B)(ii).

"*convertible securities*" has the meaning set forth in Section 13(B)(ii).

"*Equity Value*" means the aggregate fair market value of all outstanding equity securities of the Company determined by a nationally recognized independent appraiser using valuation techniques then prevailing in the securities industry, retained by the Company at its expense for this purpose and approved by Treasury in its sole discretion. The methodology used in determining the Equity Value shall take into account discounts for the minority interest represented by the Warrant Shares.

"*Exchange Act*" means the Securities Exchange Act of 1934, as amended, or any successor statute, and the rules and regulations promulgated thereunder.

"*Exercise Date*" means each date a Notice of Exercise substantially in the form annexed hereto is delivered to the Company in accordance with Section 2 hereof.

"*Exercise Price*" means the amount set forth in Item 2 of Schedule A hereto, subject to any adjustment as contemplated herein.

"*Expiration Time*" means the Original Expiration Time or, if the Warrantholder is subject to a Lockup Period at the Original Expiration Time, 5pm New York City time on the fifth Business Day immediately following the termination of such Lockup Period.

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"*Fully-Diluted Outstanding Common Stock*" means, with respect to a determination date, the number of shares of all issued and outstanding Common Stock of the Company and all Common Stock issuable upon the exercise or conversion of any outstanding security or obligation that is by its terms, directly or indirectly, convertible into or exchangeable or exercisable for Common Stock, and any option, warrant or other right to subscribe for, purchase or acquire Common Stock as of such date, whether or not such instrument is at the time exercisable, convertible or exchangeable.

"*Initial Number*" has the meaning set forth in Section 13(B)(ii)(1).

*"Issue Date"* means the date set forth in Item 3 of Schedule A hereto.

*"Lockup Period"* means any period during which the Warrantholder is subject to restrictions on resale pursuant to Section 4.5(r) of the Warrant Agreement.

"*Market Price*" means, with respect to a particular security, on any given day, the last reported sale price regular way or, in case no such reported sale takes place on such day, the average of the last closing bid and ask prices regular way, in either case on the principal national securities exchange on which the applicable securities are listed or admitted to trading, or if not listed or admitted to trading on any national securities exchange, the average of the closing bid and ask prices as furnished by two members of the Financial Industry Regulatory Authority, Inc. selected from time to time by the Company for that purpose (the "*Quotations*"). "Market Price" shall be determined without reference to after hours or extended hours trading.

"*Minimum Exercise Amount*" means 20% of the total number of the shares of Common Stock with respect to which Warrants issued pursuant to the Warrant Agreement could be exercised (including, for the avoidance of doubt, Warrants that were previously exercised), adjusted as described in Section 13 hereof.

"*Original Expiration Time*" means 5:00 p.m. New York City time on the fifth anniversary of the Issue Date of this Warrant.

"*Original Warrantholder*" means the United States Department of the Treasury. Any actions specified to be taken by the Original Warrantholder hereunder may only be taken by such Person and not by any other Warrantholder.

"*Permitted Transactions*" has the meaning set forth in Section 13(B)(ii).

"*Per Share Fair Market Value*" has the meaning set forth in Section 13(B)(iii).

"*Per Share Net Cash Settlement Amount*" means the Per Share Value of a share of Common Stock determined as of the relevant Exercise Date less the Exercise Price.

"*Per Share Net Share Settlement Amount*" means the quotient of (i) the Per Share Value of a share of Common Stock determined as of the relevant Exercise Date less the then applicable Exercise Price *divided by* (ii) the Per Share Value of a share of Common Stock determined as of the relevant Exercise Date.

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*"Per Share Value"* means (i) if the Common Stock is listed on a national securities exchange as of day preceding the determination date or the Quotations are available as of such date, the Average Market Price or (ii) if the Common Stock is not so listed, the quotient of the Equity Value determined as of the most recent Valuation Date divided by the Fully Diluted Outstanding Common Stock.

"*Person*" has the meaning given to it in Section 3(a)(9) of the Exchange Act and as used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act.

"*Pro Rata Repurchases*" means any purchase of shares of Common Stock by the Company or any Affiliate thereof pursuant to (A) any tender offer or exchange offer subject to Section 13(e) or 14(e) of the Exchange Act or Regulation 14E promulgated thereunder or (B) any other offer available to substantially all holders of Common Stock, in the case of both (A) or (B), whether for cash, shares of Capital Stock of the Company, other securities of the Company, evidences of indebtedness of the Company or any other Person or any other property (including, without limitation, shares of Capital Stock, other securities or evidences of indebtedness of a subsidiary), or any combination thereof, effected while this Warrant is outstanding. The "*Effective Date*" of a Pro Rata Repurchase shall mean the date of acceptance of shares for purchase or exchange by the Company under any tender or exchange offer which is a Pro Rata Repurchase or the date of purchase with respect to any Pro Rata Repurchase that is not a tender or exchange offer.

"*Regulatory Approvals*" with respect to the Warrantholder, means, to the extent applicable and required to permit the Warrantholder to exercise this Warrant for shares of Common Stock and to own such Common Stock without the Warrantholder being in violation of applicable law, rule or regulation, the receipt of any necessary approvals and authorizations of, filings and registrations with, notifications to, or expiration or termination of any applicable waiting period under, the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the rules and regulations thereunder.

"*SEC*" means the U.S. Securities and Exchange Commission.

"*Securities Act*" means the Securities Act of 1933, as amended, or any successor statute, and the rules and regulations promulgated thereunder.

*"trading day"* means (A) if the shares of Common Stock are not traded on any national or regional securities exchange or association or over-the-counter market, a Business Day or (B) if the shares of Common Stock are traded on any national or regional securities exchange or association or over-the-counter market, a Business Day on which such relevant exchange or quotation system is scheduled to be open for business and on which the shares of Common Stock (i) are not suspended from trading on any national or regional securities exchange or association or over-the-counter market for any period or periods aggregating one half hour or longer; and (ii) have traded at least once on the national or regional securities exchange or association or over-the-counter market that is the primary market for the trading of the shares of Common Stock.

"*Valuation Date*" means the date as of which the Equity Value was most recently determined.

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"*Warrant*" means this Warrant, issued pursuant to the Warrant Agreement.

"*Warrant Agreement*" means the Warrant Agreement, dated as of the date set forth in Item 4 of Schedule A hereto, as amended from time to time, between the Company and the United States Department of the Treasury.

"*Warrantholder*" has the meaning set forth in Section 2.

"*Warrant Shares*" has the meaning set forth in Section 2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Number of Warrant Shares; Net Exercise</u>. This certifies that, for value received, the United States Department of the Treasury or its permitted assigns (the "*Warrantholder*") is entitled, upon the terms and subject to the conditions hereinafter set forth, to acquire from the Company, in whole or in part, after the receipt of all applicable Regulatory Approvals, if any, up to an aggregate of the number of fully paid and nonassessable shares of Common Stock set forth in Item 5 of Schedule A hereto. The number of shares of Common Stock (the "*Warrant Shares*") issuable upon exercise of this Warrant and the Exercise Price are subject to adjustment as provided herein, and all references to "Common Stock," "Warrant Shares" and "Exercise Price" herein shall be deemed to include any such adjustment or series of adjustments.

Upon exercise of the Warrant in accordance with Section 3 hereof prior to the date that is 30 days prior to the Expiration Time, the Company shall elect to pay or deliver, as the case may be, to the exercising Warrantholder (a) cash ("*Net Cash Settlement*") or (b) Warrant Shares together with cash, if applicable, in lieu of delivering any fractional shares in accordance with Section 5 of this Warrant ("*Net Share Settlement*"). The Company will notify the exercising Warrantholder of its election of a settlement method within one Business Day after the relevant Exercise Date and if it fails to deliver a timely notice shall be deemed to have elected Net Share Settlement.

If the Common Stock is not listed on a national securities exchange on an Exercise Date, the Company shall be deemed to irrevocably elect Net Cash Settlement with respect to such exercise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. *Net Cash Settlement.* If the Company elects Net Cash Settlement, it shall pay to the Warrantholder cash equal to the Per Share Net Cash Settlement Amount multiplied by the number of Warrant Shares as to which the Warrant has been exercised as indicated in the Notice of Exercise (the "*Aggregate Net Cash Settlement Amount*").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. *Net Share Settlement*. If the Company elects Net Share Settlement, it shall deliver to the Warrantholder a number of shares of Common Stock equal to the Per Share Net Share Settlement Amount multiplied by the number of Warrant Shares as to which the Warrant has been exercised as indicated in the Notice of Exercise (the "*Aggregate Net Share Settlement Amount*").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Term; Method of Exercise; Valuation Requests</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Subject to Section 2, to the extent permitted by applicable laws and regulations, this Warrant is exercisable, in whole or in part, by the Warrantholder, at any time or from time to time after the execution and delivery of this Warrant by the Company on the date hereof, but in no event later than the Expiration Time.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. This Warrant may be exercised by the surrender of this Warrant and delivery of the Notice of Exercise annexed hereto, duly completed and executed on behalf of the Warrantholder, at the principal executive office of the Company located at the address set forth in Item 6 of Schedule A hereto (or such other office or agency of the Company in the United States as it may designate by notice in writing to the Warrantholder at the address of the Warrantholder appearing on the books of the Company).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. If the Common Stock is not listed on a national securities exchange on the applicable Exercise Date, the Warrantholder may only exercise this Warrant if the number of shares of Common Stock with respect to which the Warrantholder is exercising this Warrant, aggregated with the number of shares of Common Stock with respect to which the Warrantholder is exercising other warrants issued under the Warrant Agreement on the relevant Exercise Date, is no less than the Minimum Exercise Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. If the Warrantholder does not exercise this Warrant in its entirety, the Warrantholder will be entitled to receive from the Company within a reasonable time after the date on which this Warrant has been duly exercised in accordance with the terms of this Warrant, and in any event not exceeding three Business Days after the date thereof, a new warrant in substantially identical form for the purchase of that number of Warrant Shares equal to the difference between the number of Warrant Shares subject to this Warrant and the number of Warrant Shares as to which this Warrant is so exercised. Notwithstanding anything in this Warrant to the contrary, the Warrantholder hereby acknowledges and agrees that its exercise of this Warrant for Warrant Shares is subject to the condition that the Warrantholder will have first received any applicable Regulatory Approvals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. If the Common Stock is not listed on a national securities exchange the Company shall (i) upon request of a Warrantholder, promptly deliver to such Warrantholder the most recent Equity Value of the Company and (ii) obtain an Equity Value as of a date within 90 days subsequent to receipt of a written request from a Warrantholder for such valuation, provided that the Company shall not be required to obtain an Equity Value more than 4 times in any 12 month period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Method of Settlement.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. *Net Cash Settlement*. If the Company elects Net Cash Settlement, the Company shall, (A) if the Common Stock at the time of such election is not listed on a national securities exchange, use its best efforts to as soon as possible, and no more than sixty days after, and (B) if the Common Stock at the time of such election is listed on a national securities exchange, within a reasonable time, not to exceed five Business Days, after the date on which this Warrant has been duly exercised in accordance with the terms of this Warrant, pay to the exercising Warrantholder the Aggregate Net Cash Settlement Amount.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>No Fractional Warrant Shares or Scrip</u>. No fractional Warrant Shares or scrip representing fractional Warrant Shares shall be issued upon any exercise of this Warrant. In lieu of any fractional Share to which the Warrantholder would otherwise be entitled, the Warrantholder shall be entitled to receive a cash payment equal to the Per Share Value of the Common Stock determined as of the Exercise Date multiplied by such fraction of a share, less the pro-rated Exercise Price for such fractional share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>No Rights as Stockholders; Transfer Books</u>. This Warrant does not entitle the Warrantholder to any voting rights or other rights as a stockholder of the Company prior to the date of exercise hereof. The Company will at no time close its transfer books against transfer of this Warrant in any manner which interferes with the timely exercise of this Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Charges, Taxes and Expenses</u>. Issuance of certificates for Warrant Shares to the Warrantholder upon the exercise of this Warrant shall be made without charge to the Warrantholder for any issue or transfer tax or other incidental expense in respect of the issuance of such certificates, all of which taxes and expenses shall be paid by the Company; *provided*, *however*, that the Company shall not be required to pay any tax that may be payable in respect of any transfer involved in the issuance and delivery of any such certificate, or any certificates or other securities in a name other than that of the registered holder of the Warrant surrendered upon exercise of the Warrant.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Transfer/Assignment</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Subject to compliance with clause (B) of this Section 8, this Warrant and all rights hereunder are transferable, in whole or in part, upon the books of the Company by the registered holder hereof in person or by duly authorized attorney, and a new warrant shall be made and delivered by the Company, of the same tenor and date as this Warrant but registered in the name of one or more transferees, upon surrender of this Warrant, duly endorsed, to the office or agency of the Company described in Section 3. All expenses (other than stock transfer taxes) and other charges payable in connection with the preparation, execution and delivery of the new warrants pursuant to this Section 8 shall be paid by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. If and for so long as required by the Warrant Agreement, this Warrant shall contain the legend as set forth in Section 4.2(a) of the Warrant Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Exchange and Registry of Warrant</u>. This Warrant is exchangeable, upon the surrender hereof by the Warrantholder to the Company, for a new warrant or warrants of like tenor and representing the right to purchase the same aggregate number of Warrant Shares. The Company shall maintain a registry showing the name and address of the Warrantholder as the registered holder of this Warrant. This Warrant may be surrendered for exchange or exercise in accordance with its terms, at the office of the Company, and the Company shall be entitled to rely in all respects, prior to written notice to the contrary, upon such registry.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Loss, Theft, Destruction or Mutilation of Warrant</u>. Upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant, and in the case of any such loss, theft or destruction, upon receipt of a bond, indemnity or security reasonably satisfactory to the Company, or, in the case of any such mutilation, upon surrender and cancellation of this Warrant, the Company shall make and deliver, in lieu of such lost, stolen, destroyed or mutilated Warrant, a new Warrant of like tenor and representing the right to purchase the same aggregate number of Warrant Shares as provided for in such lost, stolen, destroyed or mutilated Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Saturdays, Sundays, Holidays, etc</u>. If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be a Business Day, then such action may be taken or such right may be exercised on the next succeeding day that is a Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Information</u>. With a view to making available to Warrantholders the benefits of certain rules and regulations of the SEC which may permit the sale of the Warrants and Warrant Shares to the public without registration, the Company agrees to use its reasonable best efforts to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. (x) if the Company is subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act, file with the SEC, in a timely manner, all reports and other documents required of the Company under the Securities Act and the Exchange Act, and (y) if at any time the Company is not required to file such reports, make available, upon the request of any Warrantholder, such information necessary to permit sales pursuant to Rule 144A (including the information required by Rule 144A(d)(4) under the Securities Act);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. if the Company is subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act, furnish to any holder of Warrants or Warrant Shares forthwith upon request: a written statement by the Company as to its compliance with the reporting requirements of the Exchange Act and Rule 144(c)(1);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. furnish to any holder of Warrants or Warrant Shares forthwith upon request a copy of the Company's most recent annual or quarterly report and such other reports and documents as the Warrantholder may reasonably request; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. take such further action as any Warrantholder may reasonably request, all to the extent required from time to time to enable such Warantholder to sell Warrants or Warrant Shares without registration under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Adjustments and Other Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. <u>Adjustments at a time when the Common Stock is not listed on a national securities exchange</u>. If, at any time at which the Common Stock is not listed on a national securities exchange, any event occurs that, in the good faith judgment of the Board of Directors of the Company, would require adjustment of the Exercise Price or number of Warrant Shares issuable upon exercise of this Warrant in order to fairly and adequately protect the purchase rights of the Warrants in accordance with the essential intent and principles of the Warrant Agreement and the Warrants, then the Board of Directors shall make such adjustments in the application of such provisions, in accordance with such essential intent and principles, as shall be reasonably necessary, in the good faith opinion of the Board of Directors, to protect such purchase rights as aforesaid. The Exercise Price or the number of Warrant Shares shall not be adjusted in the event of a change in the par value of the Common Stock or a change in the jurisdiction of incorporation of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. <u>Adjustments at a time when the Common Stock is listed on a national securities exchange</u>. At any time at which the Common Stock is listed on a national securities exchange, the Exercise Price and the number of Warrant Shares issuable upon exercise of the Warrant shall be subject to adjustment from time to time as follows; *provided*, that if more than one subsection of this Section 13(B) is applicable to a single event, the subsection shall be applied that produces the largest adjustment and no single event shall cause an adjustment under more than one subsection of this Section 13(B) so as to result in duplication:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. <u>Stock Splits, Subdivisions, Reclassifications or Combinations</u>. If the Company shall (i) declare and
pay a dividend or make a distribution on its Common Stock in shares of Common Stock, (ii) subdivide or reclassify the outstanding shares of Common Stock into a greater number of shares, or (iii) combine or reclassify the outstanding shares
of Common Stock into a smaller number of shares, the number of Warrant Shares issuable upon exercise of this Warrant at the time of the record date for such dividend or distribution or the effective date of such subdivision,

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combination or reclassification shall be proportionately adjusted so that the Warrantholder after such date shall be entitled to acquire the number of shares of Common Stock which such holder would have owned or been entitled to receive in respect of the shares of Common Stock subject to this Warrant after such date had this Warrant been exercised immediately prior to such date. In such event, the Exercise Price in effect at the time of the record date for such dividend or distribution or the effective date of such subdivision, combination or reclassification shall be adjusted to the number obtained by dividing (x) the product of (1) the number of Warrant Shares issuable upon the exercise of this Warrant before such adjustment and (2) the Exercise Price in effect immediately prior to the record or effective date, as the case may be, for the dividend, distribution, subdivision, combination or reclassification giving rise to this adjustment by (y) the new number of Warrant Shares issuable upon exercise of the Warrant determined pursuant to the immediately preceding sentence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. <u>Certain Issuances of Common Stock or Convertible Securities</u>. If the Company shall issue shares of Common
Stock (or rights or warrants or other securities exercisable or convertible into or exchangeable (collectively, a "*conversion*") for shares of Common Stock) (collectively, "*convertible securities*") (other than in
Permitted Transactions (as defined below) or a transaction to which subsection (i) of this Section 13(B) is applicable) without consideration or at a consideration per share (or having a conversion price per share) that is less than 90% of
the Average Market Price determined as of the date of the agreement on pricing such shares (or such convertible securities) then, in such event:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. the number of Warrant Shares issuable upon the exercise of this Warrant immediately prior to the date of the
agreement on pricing of such shares (or of such convertible securities) (the "*Initial Number*") shall be increased to the number obtained by multiplying the Initial Number by a fraction (A) the numerator of which shall be the
sum of (x) the number of shares of Common Stock of the Company outstanding on such date and (y) the number of additional shares of Common Stock issued (or into which convertible securities may be exercised or convert) and (B) the
denominator of which shall be the sum of (I) the number of shares of Common Stock outstanding on such date and (II) the number of shares of Common Stock which the aggregate consideration receivable by the Company for the total number of
shares of Common Stock so issued (or into which convertible securities may be exercised or convert) would purchase at the Average Market Price determined as of the date of the agreement on pricing such shares (or such convertible securities); and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. the Exercise Price payable upon exercise of the Warrant shall be adjusted by multiplying such Exercise Price in
effect immediately prior to the date of the agreement on pricing of such shares (or of such convertible securities) by a fraction, the numerator of which shall be the number of shares of Common Stock issuable upon exercise of this Warrant prior to
such date and the denominator of which shall be the number of shares of Common Stock issuable upon exercise of this Warrant immediately after the adjustment described in clause (1) above.

For purposes of the foregoing, the aggregate consideration receivable by the Company in connection with the issuance of such shares of Common Stock or convertible securities shall be deemed to be equal to the sum of the net offering price (including the Fair Market Value of any non-cash consideration and after deduction of any related expenses payable to third parties) of all such securities plus the minimum aggregate amount, if any, payable upon exercise or conversion of any such convertible securities into shares of Common Stock; and "*Permitted Transactions*" shall mean issuances (i) as consideration for or to fund the acquisition of businesses and/or related assets, (ii) in connection with employee benefit plans and compensation related arrangements in the ordinary course and consistent with the "Republic Airways Holdings Inc. 2020 Omnibus Incentive Plan" attached hereto as Exhibit A or any subsequent incentive plan that replaces the plan attached as Exhibit A and that is (x) approved by the Board of Directors, (y) consistent with industry practice and (z) substantially similar to the Republic Airways Holdings Inc. 2020 Omnibus Incentive Plan, (iii) in connection with a public or broadly marketed offering and sale of Common Stock or convertible securities for cash conducted by the Company or its affiliates pursuant to registration under the Securities Act or Rule 144A thereunder on a basis consistent with capital raising transactions by comparable institutions and (iv) in connection with the exercise of preemptive rights on terms existing as of the Issue Date. Any adjustment made pursuant to this Section 13(B)(ii) shall become effective immediately upon the date of such issuance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. <u>Other Distributions</u>. In case the Company shall fix a record date for the making of a distribution to all
holders of shares of its Common Stock of securities, evidences of indebtedness, assets, cash, rights or warrants (excluding dividends of its Common Stock and other dividends or distributions referred to in Section 13(B)(i)), in each such case,
the Exercise Price in effect prior to such record date shall be reduced immediately thereafter to the price determined by multiplying the Exercise Price in effect immediately prior to the reduction by the quotient of (x) the Average Market
Price of the Common Stock determined as of the first date on which the Common Stock trades regular way on the principal national securities exchange on which the Common Stock is listed or admitted to trading without the right to receive such
distribution, minus the amount of cash and/or the Fair Market Value of the securities, evidences of indebtedness, assets, rights or warrants to be so distributed in respect of one share of Common Stock (such amount and/or Fair Market Value, the
" *Per Share Fair Market Value*") divided by (y) the Average Market Price specified in clause (x); such adjustment shall be made successively whenever such a record date is fixed. In such event, the number of Warrant Shares
issuable upon the exercise of this Warrant shall be increased to the number obtained by dividing (x) the product of (1) the number of

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Warrant Shares issuable upon the exercise of this Warrant before such adjustment, and (2) the Exercise Price in effect immediately prior to the distribution giving rise to this adjustment by (y) the new Exercise Price determined in accordance with the immediately preceding sentence. In the event that such distribution is not so made, the Exercise Price and the number of Warrant Shares issuable upon exercise of this Warrant then in effect shall be readjusted, effective as of the date when the Board of Directors determines not to distribute such shares, evidences of indebtedness, assets, rights, cash or warrants, as the case may be, to the Exercise Price that would then be in effect and the number of Warrant Shares that would then be issuable upon exercise of this Warrant if such record date had not been fixed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. <u>Certain Repurchases of Common Stock</u>. In case the Company effects a Pro Rata Repurchase of Common Stock,
then the Exercise Price shall be reduced to the price determined by multiplying the Exercise Price in effect immediately prior to the Effective Date of such Pro Rata Repurchase by a fraction of which the numerator shall be (i) the product of
(x) the number of shares of Common Stock outstanding immediately before such Pro Rata Repurchase and (y) the Average Market Price of a share of Common Stock determined as of the date of the first public announcement by the Company or any
of its Affiliates of the intent to effect such Pro Rata Repurchase, minus (ii) the aggregate purchase price of the Pro Rata Repurchase, and of which the denominator shall be the product of (i) the number of shares of Common Stock
outstanding immediately prior to such Pro Rata Repurchase minus the number of shares of Common Stock so repurchased and (ii) the Average Market Price per share of Common Stock determined as of the date of the first public announcement by the
Company or any of its Affiliates of the intent to effect such Pro Rata Repurchase. In such event, the number of shares of Common Stock issuable upon the exercise of this Warrant shall be increased to the number obtained by dividing (x) the
product of (1) the number of Warrant Shares issuable upon the exercise of this Warrant before such adjustment, and (2) the Exercise Price in effect immediately prior to the Pro Rata Repurchase giving rise to this adjustment by (y) the
new Exercise Price determined in accordance with the immediately preceding sentence. For the avoidance of doubt, no increase to the Exercise Price or decrease in the number of Warrant Shares issuable upon exercise of this Warrant shall be made
pursuant to this Section 13(B)(v).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. <u>Other Events</u>. For so long as the Original Warrantholder holds this Warrant or any portion thereof, if
any event occurs as to which the provisions of this Section 13 are not strictly applicable or, if strictly applicable, would not, in the good faith judgment of the Board of Directors of the Company, fairly and adequately protect the purchase
rights of the Warrants in accordance with the essential intent and principles of such provisions, then the Board of Directors shall make such adjustments in the application of such provisions, in accordance with such essential intent and principles,
as shall be reasonably necessary, in the good faith opinion of the Board of Directors, to protect such purchase rights as aforesaid. The Exercise Price or the number of Warrant Shares shall not be adjusted in the event of a change in the par value
of the Common Stock or a change in the jurisdiction of incorporation of the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. <u>Business Combinations</u>. In case of any Business Combination or reclassification of Common Stock (other than a reclassification of Common Stock referred to in Section 13(B)(i)), the Warrantholder's right to receive Warrant Shares upon exercise of this Warrant shall be converted into the right to exercise this Warrant to acquire the number of shares of stock or other securities or property (including cash) which the Common Stock issuable (at the time of such Business Combination or reclassification) upon exercise of this Warrant immediately prior to such Business Combination or reclassification would have been entitled to receive upon consummation of such Business Combination or reclassification; and in any such case, if necessary, the provisions set forth herein with respect to the rights and interests thereafter of the Warrantholder shall be appropriately adjusted so as to be applicable, as nearly as may reasonably be, to the Warrantholder's right to exercise this Warrant in exchange for any shares of stock or other securities or property pursuant to this paragraph. In determining the kind and amount of stock, securities or the property receivable upon exercise of this Warrant following the consummation of such Business Combination, if the holders of Common Stock have the right to elect the kind or amount of consideration receivable upon consummation of such Business Combination, then the consideration that the Warrantholder shall be entitled to receive upon exercise shall be deemed to be the types and amounts of consideration received by the majority of all holders of the shares of common stock that affirmatively make an election (or of all such holders if none make an election).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. <u>Rounding of Calculations; Minimum Adjustments</u>. All calculations under this Section 13 shall be made to the nearest one-tenth (1/10th) of a cent or to the nearest one- hundredth (1/100th) of a share, as the case may be. Any provision of this Section 13 to the contrary notwithstanding, no adjustment in the Exercise Price or the number of Warrant Shares shall be made if the amount of such adjustment would be less than $0.01 or one-tenth (1/10th) of a share of Common Stock, but any such amount shall be carried forward and an adjustment with respect thereto shall be made at the time of and together with any subsequent adjustment which, together with such amount and any other amount or amounts so carried forward, shall aggregate $0.01 or 1/10th of a share of Common Stock, or more.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. <u>Timing of Issuance of Additional Common Stock Upon Certain Adjustments</u>. In any case in which the provisions of this Section 13 shall require that an adjustment shall become effective immediately after a record date for an event, the Company may defer until the occurrence of such event (i) issuing to the Warrantholder of this Warrant exercised after such record date and before the occurrence of such event the additional shares of Common Stock issuable upon such exercise by reason of the adjustment required by such event over and above the shares of Common Stock issuable upon such exercise before giving effect to such adjustment and (ii) paying to such Warrantholder any amount of cash in lieu of a fractional share of Common Stock; *provided*, *however*, that the Company upon request shall deliver to such Warrantholder a due bill or other appropriate instrument evidencing such Warrantholder's right to receive such additional shares, and such cash, upon the occurrence of the event requiring such adjustment.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. <u>Statement Regarding Adjustments</u>. Whenever the Exercise Price or the number of Warrant Shares shall be adjusted as provided in this Section 13, the Company shall forthwith file at the principal office of the Company a statement showing in reasonable detail the facts requiring such adjustment and the Exercise Price that shall be in effect and the number of Warrant Shares after such adjustment, and the Company shall also cause a copy of such statement to be sent by mail, first class postage prepaid, to each Warrantholder at the address appearing in the Company's records.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. <u>Notice of Adjustment Event</u>. In the event that the Company shall propose to take any action of the type described in this Section 13 (but only if the action of the type described in this Section 13 would result in an adjustment in the Exercise Price or the number of Warrant Shares or a change in the type of securities or property to be delivered upon exercise of this Warrant), the Company shall give notice to the Warrantholder, in the manner set forth in this Section 13(G), which notice shall specify the record date, if any, with respect to any such action and the approximate date on which such action is to take place. Such notice shall also set forth the facts with respect thereto as shall be reasonably necessary to indicate the effect on the Exercise Price and the number, kind or class of shares or other securities or property which shall be deliverable upon exercise of this Warrant. In the case of any action which would require the fixing of a record date, such notice shall be given at least 10 days prior to the date so fixed, and in case of all other action, such notice shall be given at least 15 days prior to the taking of such proposed action. Failure to give such notice, or any defect therein, shall not affect the legality or validity of any such action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H. <u>Proceedings Prior to Any Action Requiring Adjustment</u>. As a condition precedent to the taking of any action which would require an adjustment pursuant to this Section 13, the Company shall take any action which may be necessary, including obtaining regulatory, New York Stock Exchange, NASDAQ Stock Market or other applicable national securities exchange or stockholder approvals or exemptions, as applicable, in order that the Company may thereafter validly and legally issue as fully paid and nonassessable all shares of Common Stock that the Warrantholder is entitled to receive upon exercise of this Warrant pursuant to this Section 13.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. <u>Adjustment Rules</u>. Any adjustments pursuant to this Section 13 shall be made successively whenever an event referred to herein shall occur. If an adjustment in Exercise Price made hereunder would reduce the Exercise Price to an amount below par value of the Common Stock, then such adjustment in Exercise Price made hereunder shall reduce the Exercise Price to the par value of the Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>No Impairment</u>. The Company will not, by amendment of its Charter or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed hereunder by the Company, but will at all times in good faith assist in the carrying out of all the provisions of this Warrant and in taking of all such action as may be necessary or appropriate in order to protect the rights of the Warrantholder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Governing Law</u>. **This Warrant will be governed by and construed in accordance with the federal law of the United States if and to the extent such law is applicable, and otherwise in accordance with the laws of the State of New York applicable to contracts made and to be performed entirely within such State. Each of the Company and the Warrantholder agrees (a) to submit to the exclusive jurisdiction and venue of the United States District Court for the District of Columbia for any civil action, suit or proceeding arising out of or relating to this Warrant or the transactions contemplated hereby, and (b) that notice may be served upon the Company at the address in Section 19 below and upon the Warrantholder at the address for the Warrantholder set forth in the registry maintained by the Company pursuant to Section 9 hereof. To the extent permitted by applicable law, each of the Company and the Warrantholder hereby unconditionally waives trial by jury in any civil legal action or proceeding relating to the Warrant or the transactions contemplated hereby or thereby.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Binding Effect</u>. This Warrant shall be binding upon any successors or assigns of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Amendments</u>. This Warrant may be amended and the observance of any term of this Warrant may be waived only with the written consent of the Company and the Warrantholder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Prohibited Actions</u>. The Company agrees that it will not take any action which would entitle the Warrantholder to an adjustment of the Exercise Price if the total number of shares of Common Stock issuable after such action upon exercise of this Warrant, together with all shares of Common Stock then outstanding and all shares of Common Stock then issuable upon the exercise of all outstanding options, warrants, conversion and other rights, would exceed the total number of shares of Common Stock then authorized by its Charter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Notices</u>. Any notice, request, instruction or other document to be given hereunder by any party to the other will be in writing and will be deemed to have been duly given (a) on the date of delivery if delivered personally, or by facsimile, upon confirmation of receipt, or (b) on the second Business Day following the date of dispatch if delivered by a recognized next day courier service. All notices hereunder shall be delivered as set forth in Item 7 of Schedule A hereto, or pursuant to such other instructions as may be designated in writing by the party to receive such notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. <u>Entire Agreement</u>. This Warrant, the forms attached hereto and Schedule A hereto (the terms of which are incorporated by reference herein), and the Warrant Agreement (including all documents incorporated therein), contain the entire agreement between the parties with respect to the subject matter hereof and supersede all prior and contemporaneous arrangements or undertakings with respect thereto.

*[Remainder of page intentionally left blank]* 

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**[Form of Notice of Exercise]** 

Date:

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| | |
|:---|:---|
| TO: | **[Company]**  |

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RE: Exercise of Warrant

The undersigned, pursuant to the provisions set forth in the attached Warrant, hereby notifies the Company of its intention to exercise its option with respect to the number of shares of the Common Stock set forth below covered by such Warrant. Pursuant to Section 4 of the Warrant, the undersigned acknowledges that the Company may settle this exercise in net cash or shares. Cash to be paid pursuant to a Net Cash Settlement or payment of fractional shares in connection with a Net Share Settlement should be deposited to the account of the Warrantholder set forth below. Common Stock to be delivered pursuant to a Net Share Settlement shall be delivered to the Warrantholder as indicated below. A new warrant evidencing the remaining shares of Common Stock covered by such Warrant, but not yet subscribed for and purchased, if any, should be issued in the name set forth below.

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| |
|:---|
| Number of Warrant Shares: |
| Aggregate Exercise Price: |
| Address for Delivery of Warrant Shares: |
| Wire Instructions: |

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| | |
|:---|:---|
|  Proceeds to be delivered: | $|
|  Name of Bank: |  |
|  City/ State of Bank: |  |
|  ABA Number of Bank |  |
|  SWIFT# |  |
|  Name of Account: |  |
|  Account Number at Bank: |  |

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Securities to be issued to:

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| |
|:---|
|  If in book-entry form through the Depositary: |
|  Depositary Account Number: |
|  Name of Agent Member: |
|  If in certificated form: |
|  Social Security Number or Other Identifying Number: |

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| |
|:---|
|  Name: |
|  Street Address: |
|  City, State and Zip Code: |
|  Any unexercised Warrants evidenced by the exercising Warrantholder's interest in the Warrant: |
|  Social Security Number or Other Identifying Number: |
|  Name: |
|  Street Address: |
|  City, State and Zip Code: |

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| |
|:---|
|  Holder: |
|  By: |
|  Name: |
|  Title: |

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IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by a duly authorized officer.

 Dated:<br>

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| | |
|:---|:---|
| **COMPANY:** REPUBLIC AIRWAYS HOLDINGS INC. | **COMPANY:** REPUBLIC AIRWAYS HOLDINGS INC. |
| By: |  |
|  | Name: |
|  | Title: |
| **Attest:** | **Attest:** |
| By: |  |
|  | Name: |
|  | Title: |

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**[Signature Page to Warrant]** 

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**SCHEDULE A** 

<u>Item 1</u>

Name: Republic Airways Holdings Inc.

Corporate or other organizational form: Corporation

Jurisdiction of organization: Delaware

<u>Item 2</u> 

Exercise Price: $415.00

<u>Item 3</u> 

Issue Date:

<u>Item 4</u> 

Date of Warrant Agreement between the Company and the United States Department of the

Treasury: June 10 2021

<u>Item 5</u> 

Number of shares of Common Stock:

<u>Item 6</u> 

Company's address:

Republic Airways Holdings Inc.

[Address]

<u>Item 7</u> Notice information:

Republic Airways Holdings Inc.

[Address]

Attention: Chad Pulley

with a copy to

Simpson Thacher & Bartlett LLP

[Address]

Attention: Joshua Ford Bonnie and Jonathan R. Ozner

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**SCHEDULE 1** 

**<u>WARRANT SHARES FORMULA</u>**

(a) The Exercise Price shall equal the Equity Value (as defined in Annex B), subject to approval of such Equity Value by Treasury (such approval not to be unreasonably delayed or withheld), determined as of (i) either April 9, 2020 or (ii) if the Company has determined the Equity Value as of the last day of the Company's first fiscal quarter in 2020, as of the last day of the Company's first fiscal quarter in 2020 *divided by* the Fully Diluted Outstanding Common Stock (as defined in Annex B).

(b) The number of Warrant Shares for which Warrants issued on each Warrant Closing Date shall be exercisable shall equal:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) On the date of the Initial Closing, the quotient of (x) the product of the full outstanding principal
amount of the Promissory Note on the date of the Initial Closing multiplied *by* 0.1 *divided by* (y) the Exercise Price; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) On each Warrant Closing Date subsequent to the date of the Initial Closing, the quotient of (x) the
product of the amount by which the principal amount of the Promissory Note is increased on such Warrant Closing Date multiplied *by* 0.1 *divided by* (y) the Exercise Price.

## Exhibit 10.34

**Exhibit 10.34** 

**PAYROLL SUPPORT PROGRAM 3 AGREEMENT** 

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| | |
|:---|:---|
| **Recipient:** Republic Airways Inc.<br> 8909 Purdue Road, Suite 300<br> Indianapolis, IN 46268 | **PSP Participant Number:** PSA-2004031596<br> **Employer Identification Number:** 06-1562737<br> **DUNS Number:** 832661263 |

---

**Additional Recipients:** 

**Amount of Initial Payroll Support Payment**: $60,819,850.52

The Department of the Treasury (Treasury) hereby provides Payroll Support (as defined herein) under section 7301 of the American Rescue Plan Act of 2021. The Signatory Entity named above, on behalf of itself and its Affiliates (as defined herein), agrees to comply with this Agreement and applicable Federal law as a condition of receiving Payroll Support. The Signatory Entity and its undersigned authorized representatives acknowledge that a materially false, fictitious, or fraudulent statement (or concealment or omission of a material fact) in connection with this Agreement may result in administrative remedies as well as civil and/or criminal penalties.

**The undersigned hereby agree to the attached Payroll Support Program 3 Agreement.** 

---

| | |
|:---|:---|
| <u>/s/ David A. Lebryk</u> | <u>/s/ Bryan K. Bedford</u> |
| Department of the Treasury | Republic Airways Inc. |
| Name: David A. Lebryk | First Authorized Representative: Bryan K. Bedford |
| Title: Fiscal Assistant Secretary | Title: President, Chief Executive Officer |
| Date: 06/10/2021 | Date: June 10, 2021 |
|  | <u>/s/ Joseph P. Allman</u> |
|  | Republic Airways Inc. |
|  | Second Authorized Representative: Joseph P. Allman |
|  | Title: Sr. Vice President, Chief Financial Officer |
|  | Date: June 10, 2021 |

---

OMB Approval No. 1505-0263

PAPERWORK REDUCTION ACT NOTICE

The information collected will be used for the U.S. Government to process requests for support. The estimated burden associated with this collection of information is 2 hours per response. Comments concerning the accuracy of this burden estimate and suggestions for reducing this burden should be directed to the Office of Privacy, Transparency and Records, Department of the Treasury, 1500 Pennsylvania Ave., N.W., Washington, D.C. 20220. DO NOT send the form to this address. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a valid control number assigned by OMB.

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**<u>PAYROLL SUPPORT PROGRAM 3 AGREEMENT</u>**

**INTRODUCTION** 

Section 7301 of the American Rescue Plan Act of 2021 (ARP) directs the Department of the Treasury (Treasury) to provide Payroll Support (as defined herein) to passenger air carriers and certain contractors that must be exclusively used for the continuation of payment of Employee Salaries, Wages, and Benefits (as defined herein). The ARP requires certain assurances from the Recipient (as defined herein).

This Payroll Support Program 3 Agreement, including all supporting documents submitted by the Recipient and the Payroll Support Program 3 Certification attached hereto (collectively, Agreement), memorializes the binding terms and conditions applicable to the Recipient.

**DEFINITIONS** 

As used in this Agreement, the following terms shall have the following respective meanings, unless the context clearly requires otherwise. In addition, this Agreement shall be construed in a manner consistent with any public guidance Treasury may from time to time issue regarding the implementation of section 7301 of the ARP.

*Additional Payroll Support Payment* means any disbursement of Payroll Support occurring after the first disbursement of Payroll Support under this Agreement.

*Affiliate* means any Person that directly or indirectly controls, is controlled by, or is under common control with, the Recipient. For purposes of this definition, "control" of a Person shall mean having the power, directly or indirectly, to direct or cause the direction of the management and policies of such Person, whether by ownership of voting equity, by contract, or otherwise.

*ARP* means the American Rescue Plan Act of 2021.

*Benefits* means, without duplication of any amounts counted as Salary or Wages, pension expenses in respect of Employees, all expenses for accident, sickness, hospital, and death benefits to Employees, and the cost of insurance to provide such benefits; any Severance Pay or Other Benefits payable to Employees pursuant to a bona fide voluntary early retirement program or voluntary furlough; and any other similar expenses paid by the Recipient for the benefit of Employees, including any other fringe benefit expense described in lines 10 and 11 of Financial Reporting Schedule P-6, Form 41, as published by the Department of Transportation, but excluding any Federal, state, or local payroll taxes paid by the Recipient.

*Corporate Officer* means, with respect to the Recipient, its president; any vice president in charge of a principal business unit, division, or function (such as sales, administration or finance); any other officer who performs a policy-making function; or any other person who performs similar policy making functions for the Recipient. Executive officers of subsidiaries or parents of the Recipient may be deemed Corporate Officers of the Recipient if they perform such policy-making functions for the Recipient.

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*Employee* means an individual who is employed by the Recipient and whose principal place of employment is in the United States (including its territories and possessions), including salaried, hourly, full-time, part-time, temporary, and leased employees, but excluding any individual who is a Corporate Officer or independent contractor.

*Involuntary Termination or Furlough* means the Recipient terminating the employment of one or more Employees or requiring one or more Employees to take a temporary suspension or unpaid leave for any reason, including a shut-down or slow-down of business; provided, however, that an Involuntary Termination or Furlough does not include a Permitted Termination or Furlough.

*Maximum Awardable Amount* means the amount determined by the Secretary with respect to the Recipient pursuant to section 7301(b)(2) of the ARP.

*Payroll Support* means funds disbursed by the Secretary to the Recipient under this Agreement, including the first disbursement of Payroll Support and any Additional Payroll Support Payment.

*Permitted Termination or Furlough* means, with respect to an Employee, (1) a voluntary furlough, voluntary leave of absence, voluntary resignation, or voluntary retirement, (2) termination of employment resulting from such Employee's death or disability, or (3) the Recipient terminating the employment of such Employee for cause or placing such Employee on a temporary suspension or unpaid leave of absence for disciplinary reasons, in either case, as reasonably determined by the Recipient acting in good faith.

*Person* means any natural person, corporation, limited liability company, partnership, joint venture, trust, business association, governmental entity, or other entity.

*PSP1* means the Payroll Support Program established under Division A, Title IV, Subtitle B of the Coronavirus Aid, Relief, and Economic Security Act (Pub. L. No. 116-136).

*PSP2* means the Payroll Support Program Extension established under Subtitle A of Title IV of Division N of the Consolidated Appropriations Act, 2021.

*Recipient* means, collectively, the Signatory Entity; its Affiliates that are listed on the signature page hereto as Additional Recipients; and their respective heirs, executors, administrators, successors, and assigns.

*Salary* means, without duplication of any amounts counted as Benefits, a predetermined regular payment, typically paid on a weekly or less frequent basis but which may be expressed as an hourly, weekly, annual or other rate, as well as cost-of-living differentials, vacation time, paid time off, sick leave, and overtime pay, paid by the Recipient to its Employees, but excluding any Federal, state, or local payroll taxes paid by the Recipient.

*Secretary* means the Secretary of the Treasury.

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*Severance Pay or Other Benefits* means any severance payment or other similar benefits, including cash payments, health care benefits, perquisites, the enhancement or acceleration of the payment or vesting of any payment or benefit or any other in-kind benefit payable (whether in lump sum or over time, including after October 1, 2022) by the Recipient to a Corporate Officer or Employee in connection with any termination of such Corporate Officer's or Employee's employment (including, without limitation, resignation, severance, retirement, or constructive termination), which shall be determined and calculated in respect of any Employee or Corporate Officer of the Recipient in the manner prescribed in 17 CFR 229.402(j) (without regard to its limitation to the five most highly compensated executives and using the actual date of termination of employment rather than the last business day of the Recipient's last completed fiscal year as the trigger event).

*Signatory Entity* means the passenger air carrier or contractor that has entered into this Agreement.

*Taxpayer Protection Instruments* means warrants, options, preferred stock, debt securities, notes, or other financial instruments issued by the Recipient or an Affiliate to Treasury as compensation for the Payroll Support under this Agreement, if applicable.

*Total Compensation* means compensation including salary, wages, bonuses, awards of stock, and any other financial benefits provided by the Recipient or an Affiliate, as applicable, which shall be determined and calculated for the 2019 calendar year or any applicable 12-month period in respect of any Employee or Corporate Officer of the Recipient in the manner prescribed under paragraph e.6 of the award term in 2 CFR part 170, App. A, but excluding any Severance Pay or Other Benefits in connection with a termination of employment.

*Wage* means, without duplication of any amounts counted as Benefits, a payment, typically paid on an hourly, daily, or piecework basis, including cost-of-living differentials, vacation, paid time off, sick leave, and overtime pay, paid by the Recipient to its Employees, but excluding any Federal, state, or local payroll taxes paid by the Recipient.

**PAYROLL SUPPORT PAYMENTS** 

1. Upon the execution of this Agreement by Treasury and the Recipient, the Secretary shall approve the Recipient
to receive Payroll Support.

2. The Recipient may receive Payroll Support in multiple payments up to the Maximum Awardable Amount, and the
amounts (individually and in the aggregate) and timing of such payments will be determined by the Secretary in her sole discretion. The Secretary may, in her sole discretion, increase or reduce the Maximum Awardable Amount consistent with section
7301 of the ARP.

3. The Secretary may determine in her sole discretion that any Payroll Support shall be conditioned on, and
subject to, compliance by the Recipient with all applicable requirements under (a) PSP2 and (b) PSP1 if the Recipient received financial assistance in PSP1, and such additional terms and conditions (including the receipt of, and any terms
regarding, Taxpayer Protection Instruments) to which the parties may agree in writing.

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**TERMS AND CONDITIONS** 

<u>Retaining and Paying Employees</u> 

4. The Recipient shall use the Payroll Support exclusively for the continuation of payment of Wages, Salaries, and
Benefits to the Employees of the Recipient.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. *Furloughs and Layoffs*. The Recipient shall not conduct an Involuntary Termination or Furlough of any
Employee between the date of this Agreement and September 30, 2021 or the date on which the Recipient has expended all of the Payroll Support, whichever is later.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. *Employee Salary, Wages, and Benefits* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. *Salary and Wages*. Except in the case of a Permitted Termination or Furlough, the Recipient shall not,
between the date of this Agreement and September 30, 2021 or the date on which the Recipient has expended all of the Payroll Support, whichever is later, reduce, without the Employee's consent, (A) the pay rate of any Employee earning
a Salary, or (B) the pay rate of any Employee earning Wages.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. *Benefits*. Except in the case of a Permitted Termination or Furlough, the Recipient shall not, between
the date of this Agreement and September 30, 2021 or the date on which the Recipient has expended all of the Payroll Support, whichever is later, reduce, without the Employee's consent, the Benefits of any Employee; provided, however, that
for purposes of this paragraph, personnel expenses associated with the performance of work duties, including those described in line 10 of Financial Reporting Schedule P-6, Form 41, as published by the
Department of Transportation, may be reduced to the extent the associated work duties are not performed.

<u>Dividends and Buybacks</u> 

5. Through September 30, 2022, neither the Recipient nor any Affiliate shall, in any transaction, purchase an
equity security of the Recipient or of any direct or indirect parent company of the Recipient that, in either case, is listed on a national securities exchange.

6. Through September 30, 2022, the Recipient shall not pay dividends, or make any other capital
distributions, with respect to the common stock (or equivalent equity interest) of the Recipient.

<u>Limitations on Certain Compensation</u> 

7. Beginning April 1, 2021, and ending April 1, 2023, the Recipient and its Affiliates shall not pay any
of the Recipient's Corporate Officers or Employees whose Total Compensation exceeded $425,000 in calendar year 2019 (other than an Employee whose compensation is determined through an existing collective bargaining agreement entered into before
March 11, 2021):

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Total Compensation which exceeds, during any 12 consecutive months of such two-year period, the Total Compensation the Corporate Officer or Employee received in calendar year 2019; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Severance Pay or Other Benefits in connection with a termination of employment with the Recipient which exceed
twice the maximum Total Compensation received by such Corporate Officer or Employee in calendar year 2019.

8. Beginning April 1, 2021, and ending April 1, 2023, the Recipient and its Affiliates shall not pay,
during any 12 consecutive months of such two-year period, any of the Recipient's Corporate Officers or Employees whose Total Compensation exceeded $3,000,000 in calendar year 2019 Total Compensation in
excess of the sum of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. $3,000,000; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. 50 percent of the excess over $3,000,000 of the Total Compensation received by such Corporate Officer or
Employee in calendar year 2019.

9. For purposes of determining applicable amounts under paragraphs 7 and 8 with respect to any Corporate Officer
or Employee who was employed by the Recipient or an Affiliate for less than all of calendar year 2019, the amount of Total Compensation in calendar year 2019 shall mean such Corporate Officer's or Employee's Total Compensation on an
annualized basis.

<u>Service and Eligibility</u> 

10.1. If the Recipient is an air carrier, until March 1, 2022, the Recipient shall comply with any applicable
requirement issued by the Secretary of Transportation under section 407 of the PSP Extension Law to maintain scheduled air transportation service to any point served by the Recipient before March 1, 2020.

10.2. The Recipient represents, warrants, and certifies that as of March 31, 2021, the Recipient:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. provided air transportation as an air carrier, as defined under 49 U.S.C. § 40102; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. (i) performed, under contract with a passenger air carrier conducting operations under 14 CFR part 121,
(A) catering functions; or (B) functions on the property of an airport that were directly related to the air transportation of persons, property, or mail, including the loading and unloading of property on aircraft, assistance to passengers
under 14 CFR part 382, security, airport ticketing and check-in functions, groundhandling of aircraft, or aircraft cleaning and sanitization functions and waste removal; or (ii) was a subcontractor that
performed such functions.

10.3. The Recipient represents, warrants, and certifies that between March 31, 2021, and the effective date of
this Agreement, it has not:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. conducted an Involuntary Termination or Furlough;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. reduced, without the Employee's consent, (i) the pay rate of any Employee earning a Salary, or
(ii) the pay rate of any Employee earning Wages; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. except in the case of a Permitted Termination or Furlough, reduced, without the Employee's consent, the
Benefits of any Employee (provided, however, that for purposes of this subparagraph, personnel expenses associated with the performance of work duties, including those described in line 10 of Financial Reporting Schedule P-6, Form 41, as published by the Department of Transportation, may be reduced to the extent the associated work duties are not performed).

<u>Effective Date</u> 

11. This Agreement shall be effective as of the date of its execution by both parties.

<u>Reporting and Auditing</u> 

12. Until the calendar quarter that begins after the later of January 1, 2023, and the date on which no
Taxpayer Protection Instrument is outstanding, not later than 45 days after the end of each of the first three calendar quarters of each calendar year and 90 days after the end of each calendar year, the Signatory Entity, on behalf of itself and
each other Recipient, shall certify to Treasury that it is in compliance with the terms and conditions of this Agreement and provide a report containing the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. the amount of Payroll Support funds expended during such quarter;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. the Recipient's financial statements (audited by an independent certified public accountant, in the case
of annual financial statements);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. a copy of the Recipient's IRS Form 941 filed with respect to such quarter; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. a detailed summary describing, with respect to the Recipient, (a) any changes in Employee headcount during
such quarter and the reasons therefor, including any Involuntary Termination or Furlough, (b) any changes in the amounts spent by the Recipient on Employee Wages, Salary, and Benefits during such quarter, and (c) any changes in Total
Compensation for, and any Severance Pay or Other Benefits in connection with the termination of, Corporate Officers and Employees subject to limitation under this Agreement during such quarter; and the reasons for any such changes.

13. If the Recipient or any Affiliate, or any Corporate Officer of the Recipient or any Affiliate, becomes aware of
facts, events, or circumstances that may materially affect the Recipient's compliance with the terms and conditions of this Agreement, the Recipient or Affiliate shall promptly provide Treasury with a written description of the events or
circumstances and any action taken, or contemplated, to address the issue.

14. In the event the Recipient contemplates any action to commence a bankruptcy or insolvency proceeding in any
jurisdiction, the Recipient shall promptly notify Treasury.

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15. The Recipient shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Promptly provide to Treasury and the Treasury Inspector General a copy of any Department of Transportation
Inspector General report, audit report, or report of any other oversight body, that is received by the Recipient relating to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Immediately notify Treasury and the Treasury Inspector General of any indication of fraud, waste, abuse, or
potentially criminal activity pertaining to the Payroll Support.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Promptly provide Treasury with any information Treasury may request relating to compliance by the Recipient and
its Affiliates with this Agreement.

16. The Recipient and Affiliates will provide Treasury, the Treasury Inspector General, and such other entities as
authorized by Treasury timely and unrestricted access to all documents, papers, or other records, including electronic records, of the Recipient related to the Payroll Support, to enable Treasury and the Treasury Inspector General to make audits,
examinations, and otherwise evaluate the Recipient's compliance with the terms of this Agreement. This right also includes timely and reasonable access to the Recipient's and its Affiliates' personnel for the purpose of interview and
discussion related to such documents. This right of access shall continue as long as records are required to be retained. In addition, the Recipient will provide timely reports as reasonably required by Treasury, the Treasury Inspector General, and
such other entities as authorized by Treasury to comply with applicable law and to assess program effectiveness.

<u>Recordkeeping and Internal Controls</u> 

17. If the Recipient is a debtor as defined under 11 U.S.C. § 101(13), the Payroll Support funds, any claim or
account receivable arising under this Agreement, and any segregated account holding funds received under this Agreement shall not constitute or become property of the estate under 11 U.S.C. § 541.

18. The Recipient shall expend and account for Payroll Support funds in a manner sufficient to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Permit the preparation of accurate, current, and complete quarterly reports as required under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Permit the tracing of funds to a level of expenditures adequate to establish that such funds have been used as
required under this Agreement.

19. The Recipient shall establish and maintain effective internal controls over the Payroll Support; comply with
all requirements related to the Payroll Support established under applicable Federal statutes and regulations; monitor compliance with Federal statutes, regulations, and the terms and conditions of this Agreement; and take prompt corrective actions
in accordance with audit recommendations. The Recipient shall promptly remedy any identified instances of noncompliance with this Agreement.

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20. The Recipient and Affiliates shall retain all records pertinent to the receipt of Payroll Support and
compliance with the terms and conditions of this Agreement (including by suspending any automatic deletion functions for electronic records, including e-mails) for a period of three years following the period
of performance. Such records shall include all information necessary to substantiate factual representations made in the supporting documents submitted by the Recipient related to the Payroll Support, including ledgers and sub-ledgers, and the Recipient's and Affiliates' compliance with this Agreement. While electronic storage of records (backed up as appropriate) is preferable, the Recipient and Affiliates may store records
in hardcopy (paper) format. The term "records" includes all relevant financial and accounting records and all supporting documentation for the information reported on the Recipient's quarterly reports.

21. If any litigation, claim, investigation, or audit relating to the Payroll Support is started before the
expiration of the three-year period, the Recipient and Affiliates shall retain all records described in paragraph 20 until all such litigation, claims, investigations, or audit findings have been completely resolved and final judgment entered or
final action taken.

<u>Remedies</u> 

22. If Treasury believes that an instance of noncompliance by the Recipient or an Affiliate with (a) this
Agreement, (b) section 7301 of the ARP, or (c) the Internal Revenue Code of 1986 as it applies to the receipt of Payroll Support has occurred, Treasury may notify the Recipient in writing of its proposed determination of noncompliance,
provide an explanation of the nature of the noncompliance, and specify a proposed remedy. Upon receipt of such notice, the Recipient shall, within seven days, accept Treasury's proposed remedy, propose an alternative remedy, or provide
information and documentation contesting Treasury's proposed determination. Treasury shall consider any such submission by the Recipient and make a final written determination, which will state Treasury's findings regarding noncompliance
and the remedy to be imposed.

23. If Treasury makes a final determination under paragraph 22 that an instance of noncompliance has occurred,
Treasury may, in its sole discretion, withhold any Additional Payroll Support Payments; require the repayment of the amount of any previously disbursed Payroll Support, with appropriate interest; require additional reporting or monitoring; initiate
suspension or debarment proceedings as authorized under 2 CFR Part 180; terminate this Agreement; or take any such other action as Treasury, in its sole discretion, deems appropriate.

24. Treasury may make a final determination regarding noncompliance without regard to paragraph 22 if Treasury
determines, in its sole discretion, that such determination is necessary to protect a material interest of the Federal Government. In such event, Treasury shall notify the Recipient of the remedy that Treasury, in its sole discretion, shall impose,
after which the Recipient may contest Treasury's final determination or propose an alternative remedy in writing to Treasury. Following the receipt of such a submission by the Recipient, Treasury may, in its sole discretion, maintain or alter
its final determination.

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25. Any final determination of noncompliance and any final determination to take any remedial action described
herein shall not be subject to further review. To the extent permitted by law, the Recipient waives any right to judicial review of any such determinations and further agrees not to assert in any court any claim arising from or relating to any such
determination or remedial action.

26. Instead of, or in addition to, the remedies listed above, Treasury may refer any noncompliance or any
allegations of fraud, waste, or abuse to the Treasury Inspector General.

27. Treasury, in its sole discretion, may grant any request by the Recipient for termination of this Agreement,
which such request shall be in writing and shall include the reasons for such termination, the proposed effective date of the termination, and the amount of any unused Payroll Support funds the Recipient requests to return to Treasury. Treasury may,
in its sole discretion, determine the extent to which the requirements under this Agreement may cease to apply following any such termination.

28. If Treasury determines that any remaining portion of the Payroll Support will not accomplish the purpose of
this Agreement, Treasury may terminate this Agreement in its entirety to the extent permitted by law.

<u>Debts</u> 

29. Any Payroll Support in excess of the amount which Treasury determines, at any time, the Recipient is authorized
to receive or retain under the terms of this Agreement constitutes a debt to the Federal Government.

30. Any debts determined to be owed by the Recipient to the Federal Government shall be paid promptly by the
Recipient. A debt is delinquent if it has not been paid by the date specified in Treasury's initial written demand for payment, unless other satisfactory arrangements have been made. Interest, penalties, and administrative charges shall be
charged on delinquent debts in accordance with 31 U.S.C. § 3717, 31 CFR 901.9, and paragraphs 31 and 32. Treasury will refer any debt that is more than 180 days delinquent to Treasury's Bureau of the Fiscal Service for debt collection
services.

31. Penalties on any debts shall accrue at a rate of not more than 6 percent per year or such other higher
rate as authorized by law.

32. Administrative charges relating to the costs of processing and handling a delinquent debt shall be determined
by Treasury.

33. The Recipient shall not use funds from other federally sponsored programs to pay a debt to the government
arising under this Agreement.

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<u>Protections for Whistleblowers</u> 

34. In addition to other applicable whistleblower protections, in accordance with 41 U.S.C. § 4712, the
Recipient shall not discharge, demote, or otherwise discriminate against an Employee as a reprisal for disclosing information to a Person listed below that the Employee reasonably believes is evidence of gross mismanagement of a Federal contract or
grant, a gross waste of Federal funds, an abuse of authority relating to a Federal contract or grant, a substantial and specific danger to public health or safety, or a violation of law, rule, or regulation related to a Federal contract (including
the competition for or negotiation of a contract) or grant:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. A Member of Congress or a representative of a committee of Congress;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. An Inspector General;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. The Government Accountability Office;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. A Treasury employee responsible for contract or grant oversight or management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. An authorized official of the Department of Justice or other law enforcement agency;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. A court or grand jury; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. A management official or other Employee of the Recipient who has the responsibility to investigate, discover,
or address misconduct.

<u>Lobbying</u> 

35. The Recipient shall comply with the provisions of 31 U.S.C. § 1352, as amended, and with the regulations
at 31 CFR Part 21.

<u>Non-Discrimination</u> 

36. The Recipient shall comply with, and hereby assures that it will comply with, all applicable Federal statutes
and regulations relating to nondiscrimination including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Title VI of the Civil Rights Act of 1964 (42 U.S.C. § 2000d *et seq.*), including Treasury's
implementing regulations at 31 CFR Part 22;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.C. § 794);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. The Age Discrimination Act of 1975, as amended (42 U.S.C. §§ 6101–6107), including
Treasury's implementing regulations at 31 CFR Part 23 and the general age discrimination regulations at 45 CFR Part 90; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. The Air Carrier Access Act of 1986 (49 U.S.C. § 41705).

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<u>Additional Reporting</u> 

37. Within seven days after the date of this Agreement, the Recipient shall register in SAM.gov, and thereafter
maintain the currency of the information in SAM.gov until at least January 1, 2023. The Recipient shall review and update such information at least annually after the initial registration, and more frequently if required by changes in the
Recipient's information. The Recipient agrees that this Agreement and information related thereto, including the Maximum Awardable Amount and any executive total compensation reported pursuant to paragraph 38, may be made available to the
public through a U.S. Government website, including SAM.gov.

38. For purposes of paragraph 37, the Recipient shall report total compensation as defined in paragraph e.6 of the
award term in 2 CFR part 170, App. A for each of the Recipient's five most highly compensated executives for the preceding completed fiscal year, if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. the total Payroll Support is $25,000 or more;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. in the preceding fiscal year, the Recipient received:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. 80 percent or more of its annual gross revenues from Federal procurement contracts (and subcontracts) and
Federal financial assistance, as defined at 2 CFR 170.320 (and subawards); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. $25,000,000 or more in annual gross revenues from Federal procurement contracts (and subcontracts) and Federal
financial assistance, as defined at 2 CFR 170.320 (and subawards); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. the public does not have access to information about the compensation of the executives through periodic
reports filed under section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986. To determine if the public has access to the compensation information, the Recipient
shall refer to U.S. Securities and Exchange Commission total compensation filings at http://www.sec.gov/answers/execomp.htm.

39. The Recipient shall report executive total compensation described in paragraph 38:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. as part of its registration profile at https://www.sam.gov; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. within five business days after the end of each month following the month in which this Agreement becomes
effective, and annually thereafter.

40. The Recipient agrees that, from time to time, it will, at its own expense, promptly upon reasonable request by
Treasury, execute and deliver, or cause to be executed and delivered, or use its commercially reasonable efforts to procure, all instruments, documents and information, all in form and substance reasonably satisfactory to Treasury, to enable
Treasury to ensure compliance with, or effect the purposes of, this Agreement, which may include,

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among other documents or information, (a) certain audited financial statements of the Recipient, (b) documentation regarding the Recipient's revenues derived from its business as a passenger air carrier or regarding the passenger air carriers for which the Recipient provides services as a contractor (as the case may be), and (c) the Recipient's most recent quarterly Federal tax returns. The Recipient agrees to provide Treasury with such documents or information promptly.

41. If the total value of the Recipient's currently active grants, cooperative agreements, and procurement
contracts from all Federal awarding agencies exceeds $10,000,000 for any period before termination of this Agreement, then the Recipient shall make such reports as required by 2 CFR part 200, Appendix XII.

<u>Other</u> 

42. [Reserved]

43. Notwithstanding any other provision of this Agreement, the Recipient has no right to, and shall not, transfer,
pledge, mortgage, encumber, or otherwise assign this Agreement or any Payroll Support provided under this Agreement, or any interest therein, or any claim, account receivable, or funds arising thereunder or accounts holding Payroll Support, to any
party, bank, trust company, or other Person without the express written approval of Treasury.

44. The Signatory Entity will cause its Affiliates to comply with all of their obligations under or relating to
this Agreement.

45. Unless otherwise provided in guidance issued by Treasury or the Internal Revenue Service, the form of any
Taxpayer Protection Instrument held by Treasury and any subsequent holder will be treated as such form for purposes of the Internal Revenue Code of 1986 (for example, a Taxpayer Protection Instrument in the form of a note will be treated as
indebtedness for purposes of the Internal Revenue Code of 1986).

46. This Agreement may not be amended or modified except pursuant to an agreement in writing entered into by the
Recipient and Treasury, except that Treasury may unilaterally amend this Agreement if required in order to comply with applicable Federal law or regulation.

47. Subject to applicable law, Treasury may, in its sole discretion, waive any term or condition under this
Agreement imposing a requirement on the Recipient or any Affiliate.

48. This Agreement shall bind and inure to the benefit of the parties and their respective heirs, executors,
administrators, successors, and assigns.

49. The Recipient represents and warrants to Treasury that this Agreement, and the issuance and delivery to
Treasury of the Taxpayer Protection Instruments, if applicable, have been duly authorized by all requisite corporate and, if required, stockholder action, and will not result in the violation by the Recipient of any provision of law, statute, or
regulation, or of the articles of incorporation or other constitutive documents or bylaws of the Recipient, or breach or constitute an event of default under any material contract to which the Recipient is a party.

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50. The Recipient represents and warrants to Treasury that this Agreement has been duly executed and delivered by
the Recipient and constitutes a legal, valid, and binding obligation of the Recipient enforceable against the Recipient in accordance with its terms.

51. This Agreement may be executed in counterparts, each of which shall constitute an original, but all of which
together shall constitute a single contract.

52. The words "execution," "signed," "signature," and words of like import in any
assignment shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based
recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any
other similar state laws based on the Uniform Electronic Transactions Act. Notwithstanding anything herein to the contrary, delivery of an executed counterpart of a signature page of this Agreement by electronic means, or confirmation of the
execution of this Agreement on behalf of a party by an email from an authorized signatory of such party, shall be effective as delivery of a manually executed counterpart of this Agreement.

53. The captions and paragraph headings appearing herein are included solely for convenience of reference and are
not intended to affect the interpretation of any provision of this Agreement.

54. This Agreement is governed by and shall be construed in accordance with Federal law. Insofar as there may be no
applicable Federal law, this Agreement shall be construed in accordance with the laws of the State of New York, without regard to any rule of conflicts of law (other than section 5-1401 of the New York General
Obligations Law) that would result in the application of the substantive law of any jurisdiction other than the State of New York.

55. Nothing in this Agreement shall require any unlawful action or inaction by either party.

56. The requirement pertaining to trafficking in persons at 2 CFR 175.15(b) is incorporated herein and made
applicable to the Recipient.

57. This Agreement, together with the attachments hereto, including the Payroll Support Program 3 Certification and
any attached terms regarding Taxpayer Protection Instruments, constitute the entire agreement of the parties relating to the subject matter hereof and supersede any previous agreements and understandings, oral or written, relating to the subject
matter hereof. There may exist other agreements between the parties as to other matters, which are not affected by this Agreement and are not included within this integration clause.

58. No failure by either party to insist upon the strict performance of any provision of this Agreement or to
exercise any right or remedy hereunder, and no acceptance of full or partial Payroll Support (if applicable) or other performance by either party during the continuance of any such breach, shall constitute a waiver of any such breach of such
provision.

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**ATTACHMENT** 

Payroll Support Program 3 Certification of Corporate Officer of Recipient

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**PAYROLL SUPPORT PROGRAM 3** 

**CERTIFICATION OF CORPORATE OFFICER OF RECIPIENT** 

In connection with the Payroll Support Program 3 Agreement (Agreement) between Republic Airlines Inc. and the Department of the Treasury (Treasury) relating to Payroll Support being provided by Treasury to the Recipient under section 7301 of the American Rescue Plan Act of 2021, I hereby certify under penalty of perjury to the Treasury that all of the following are true and correct. Capitalized terms used but not defined herein have the meanings set forth in the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) I have the authority to make the following representations on behalf of myself and the Recipient. I understand that these representations will be relied upon as material in the decision by Treasury to provide Payroll Support to the Recipient.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The information, certifications, attachments, and other information provided by the Recipient to Treasury related to the Payroll Support are true and correct and do not contain any materially false, fictitious, or fraudulent statement, nor any concealment or omission of any material fact.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The Recipient has the legal authority to apply for the Payroll Support, and it has the institutional, managerial, and financial capability to comply with all obligations, terms, and conditions set forth in the Agreement and any attachment thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) The Recipient and any Affiliate will give Treasury, Treasury's designee or the Treasury Office of Inspector General (as applicable) access to, and opportunity to examine, all documents, papers, or other records of the Recipient or Affiliate pertinent to the provision of Payroll Support made by Treasury to the Recipient, in order to make audits, examinations, excerpts, and transcripts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) No Federal appropriated funds, including Payroll Support, have been paid or will be paid, by or on behalf of the Recipient, to any person for influencing or attempting to influence an officer or employee of an agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) If the Payroll Support exceeds $100,000, the Recipient shall comply with the disclosure requirements in 31 CFR Part 21 regarding any amounts paid for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the Payroll Support.

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**I acknowledge that a materially false, fictitious, or fraudulent statement (or concealment or omission of a material fact) in this certification may be the subject of criminal prosecution and also may subject me and the Recipient to civil penalties and/or administrative remedies for false claims or otherwise.** 

---

| | |
|:---|:---|
| <u>/s</u>/ Bryan K. Bedford | <u>/s/</u> Joseph P. Allman |
| Corporate Officer of Signatory Entity | Second Authorized Representative |
| Name: Bryan K. Bedford | Name: Joseph P. Allman |
| Title: President, Chief Executive Officer | Title: Senior Vice President, Chief Financial |
|  | Officer |
| Date: June 10, 2021 | Date: June 10, 2021 |

---

## Exhibit 10.35

**Exhibit 10.35** 

**PROMISSORY NOTE** 

THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION STATEMENT RELATING THERETO IS IN EFFECT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT OR SUCH LAWS.

Reference is made to that certain Payroll Support Program 3 Agreement ("<u>PSP3 Agreement</u>") dated as of the date hereof by and among Republic Airways Inc., an Indiana Corporation ("<u>Issuer</u>"), having an office at 8909 Purdue Road, Suite 300, Indianapolis, IN 46266 and the United States Department of the Treasury ("<u>Treasury</u>"), having an office at 1500 Pennsylvania Avenue, NW, Washington, D.C. 20220, entered into by Issuer and Treasury pursuant to the American Rescue Plan Act of 2021 (March 11, 2021) ("<u>PSP3 Extension Law</u>").

WHEREAS, Issuer has requested that Treasury provide financial assistance to the Issuer and certain of its Affiliates (as defined below) that are Recipients (as defined in the PSP3 Agreement) that shall be used for the continuation of payment of employee wages, salaries, and benefits as is permissible under Section 7301(b)(1) of the PSP3 Extension Law.

WHEREAS, as appropriate compensation to the Federal Government of the United States of America for the provision of financial assistance under the PSP3 Agreement, Issuer has agreed to issue this Promissory Note ("<u>Note</u>") to Treasury on the terms and conditions set forth herein.

FOR VALUE RECEIVED, Issuer unconditionally promises to pay to the Holder (as defined below) the principal sum of ZERO DOLLARS ($0), subject to increases and/or decreases made pursuant to Section 2.1, as permissible under the PSP3 Agreement, or Section 2.3, in each case as noted by the Holder in Schedule I (the "<u>Principal Amount</u>"), outstanding hereunder, together with all accrued interest thereon on the Maturity Date (as defined below) as provided in this Note. Notations made by the Holder in Schedule I shall be final and conclusive absent manifest error; <u>provided</u>, <u>however</u>, that any failure by the Holder to make such notations or any error by omission by the Holder in this regard shall not affect the obligation of the Issuer to pay the full amount of the principal of and interest on the Note or any other amount owing hereunder.

1 **<u>DEFINITIONS</u>**

1.1 <u>Defined Terms</u>. As used in this Note, capitalized terms have the meanings specified in Annex A.

1.2 <u>Terms Generally</u>. The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words "include," "includes" and "including" shall be deemed to be followed by the phrase "without limitation." The word "will" shall be construed to have the same meaning and effect as the word "shall." The word "or" is not exclusive. The word "year" shall refer (i) in the case of a leap year, to a year of three hundred sixty-six (366) days, and (ii) otherwise, to a year of three hundred sixty-five (365) days. Unless the context requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein), (b) any reference herein to any Person shall be construed to include such Person's successors and assigns, (c) the words "herein," "hereof" and "hereunder," and words of similar import, shall be construed to refer to this Note in its entirety and not to any particular provision hereof, (d) all references herein to Sections, Annexes and Schedules shall be construed to refer to Sections of, and Annexes and Schedules to, this Note, (e) any reference to any law or regulation herein shall, unless otherwise specified, refer to such law or regulation as amended, modified or supplemented from time to time, and (f) the words "asset" and "property" shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights.

1.3 <u>Accounting Terms</u>. All accounting terms not otherwise defined herein shall be construed in conformity with GAAP, as in effect from time to time.

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2 **<u>NOTE</u>**

2.1 <u>Principal Amount</u>. Upon any disbursement to the Issuer under the PSP3 Agreement after the Closing Date, the Principal Amount of this Note shall be increased in an amount equal to 30 % of any such disbursement; <u>provided</u>, <u>however</u>, that no increases in the Principal Amount of this Note shall occur pursuant to this Section until the aggregate principal amount of any disbursements to the Issuer under the PSP3 Agreement is greater than $100,000,000.

2.2 <u>Maturity Date</u>. The aggregate unpaid principal amount of the Note, all accrued and unpaid interest, and all other amounts payable under this Note shall be due and payable on the Maturity Date, unless otherwise provided in Section 5.1.

2.3 <u>Prepayments</u>.

(a) <u>Optional Prepayments</u>. The Issuer may, upon written notice to the Holder, at any time and from time to time prepay the Note in whole or in part without premium or penalty in a minimum aggregate principal amount equal to the lesser of $5,000,000 and the Principal Amount outstanding.

(b) <u>Mandatory Prepayments</u>. If a Change of Control occurs, within thirty (30) days following the occurrence of such Change of Control, the Issuer shall prepay the aggregate principal amount outstanding under the Note and any accrued interest or other amounts owing under the Note. The Issuer will not, and will not permit any Subsidiary to, enter into any Contractual Obligation (other than this Note) that, directly or indirectly, restricts the ability of the Issuer or any Subsidiary to make such prepayment hereunder.

2.4 <u>Interest</u>.

(a) <u>Interest Rate</u>. Subject to paragraph (b) of this Section, the Note shall bear interest on the Principal Amount outstanding from time to time at a rate per annum equal to 1.00% until the fifth anniversary of the Closing Date, and the Applicable SOFR Rate plus 2.00% thereafter until the Maturity Date. All interest hereunder shall be computed on the basis of the actual number of days in each interest period and a year of 365 or 366 days, as applicable, until the fifth anniversary of the Closing Date and computed in a manner determined by the Holder thereafter, based on prevailing customary market conventions for the use of the Applicable SOFR Rate in floating-rate debt instruments at the time of the announcement of the Applicable SOFR Rate. Each interest period will be from, and including, the Closing Date, or from and including the most recent interest payment date to which interest has been paid or provided for, to, but excluding the next interest payment date.

(b) <u>Default Interest</u>. If any amount payable by the Issuer or any Guarantor under this Note (including principal of the Note, interest, fees or other amount) is not paid when due, whether at stated maturity, upon acceleration or otherwise, such amount shall thereafter bear interest at a rate per annum equal to the applicable Default Rate. While any Event of Default exists, the Issuer or any Guarantor shall pay interest on the principal amount of the Note outstanding hereunder at a rate per annum equal to the applicable Default Rate.

(c) <u>Payment Dates</u>. Accrued interest on the Note shall be payable in arrears on the last Business Day of March and September of each year, beginning with September 30, 2021 , and on the Maturity Date and at such other times as may be specified herein; <u>provided</u> that (i) interest accrued pursuant to paragraph (b) of this Section shall be payable on demand and (ii) in the event of any repayment or prepayment of the Note, accrued interest on the principal amount repaid or prepaid shall be payable on the date of such repayment or prepayment.

(d) <u>SOFR Fallback</u>. If, at any time, the Holder or its designee determines that a Benchmark Transition Event has occurred with respect to the Applicable SOFR Rate or SOFR, or any successor rate, the Holder or its designee will designate a Benchmark Replacement and, as applicable, make Benchmark Conforming Changes in a manner consistent with the methodology set forth in the ARRC Fallback Provisions. Any determination, decision or election that may be made by the Holder or its designee pursuant to this Section 2.4(d), and any decision to take or refrain from taking any action or making any determination, decision or election arising out of or relating to this Section 2.4(d), shall be conclusive and binding absent manifest error, may be made by the Holder or its designee in its sole discretion, and, notwithstanding anything to the contrary in this Note, shall become effective without the consent of the Issuer, any Guarantor or any other party. Any terms used in this Section 2.4(d) but not defined in this Note shall be construed in a manner consistent with the ARRC Fallback Provisions.

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2.5 <u>Payments Generally</u>.

(a) <u>Payments by Issuer</u>. All payments to be made by the Issuer hereunder shall be made without condition or deduction for any counterclaim, defense, recoupment or setoff. Except as otherwise expressly provided herein, (i) for so long as Treasury is the Holder of this Note, each payment under this Note shall be paid in immediately available funds by electronic funds transfer to the account of the United States Treasury maintained at the Federal Reserve Bank of New York specified by Treasury in a written notice to the Issuer, or to such other account as may be specified from time to time by Treasury in a written notice to the Issuer, or (ii) in the event that Treasury is not the Holder of this Note, then each payment under this Note shall be made in immediately available funds by electronic funds transfer to such account as shall be specified by the Holder in a written notice to the Issuer, in each case not later than 12:00 noon (Washington, D.C. time) on the date specified herein. All amounts received by the Holder after such time on any date shall be deemed to have been received on the next succeeding Business Day and any applicable interest or fees shall continue to accrue. If any payment to be made by the Issuer shall fall due on a day that is not a Business Day, payment shall be made on the next succeeding Business Day and such extension of time shall be reflected in computing interest or fees, as the case may be; <u>provided</u> that, if such next succeeding Business Day would fall after the Maturity Date, payment shall be made on the immediately preceding Business Day. Except as otherwise expressly provided herein, all payments hereunder shall be made in Dollars.

(b) <u>Application of Insufficient Payments</u>. If at any time insufficient funds are received by and available to the Holder to pay fully all amounts of principal, interest, fees and other amounts then due hereunder, such funds shall be applied (i) <u>first</u>, to pay interest, fees and other amounts then due hereunder, and (ii) <u>second</u>, to pay principal then due hereunder.

3 **<u>REPRESENTATIONS AND WARRANTIES</u>**

The Issuer and each Guarantor represents and warrants to the Holder on the Closing Date and is deemed to represent and warrant to the Holder on any date on which the amount of the Note is increased pursuant to the terms hereof and in accordance with the PSP3 Agreement that:

3.1 <u>Existence, Qualification and Power</u>. The Issuer, each Guarantor and each Subsidiary (a) is duly organized or formed, validly existing and, as applicable, in good standing under the Laws of the jurisdiction of its incorporation or organization, (b) has all requisite power and authority and all requisite governmental licenses, authorizations, consents and approvals to (i) own or lease its assets and carry on its business and (ii) execute, deliver and perform its obligations under the Note, and (c) is duly qualified and is licensed and, as applicable, in good standing under the Laws of each jurisdiction where its ownership, lease or operation of properties or the conduct of its business requires such qualification or license, except, in each case referred to in clause (a) (other than with respect to the Issuer and each Guarantor), (b)(i) or (c), to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect.

3.2 <u>Authorization; No Contravention</u>. The execution, delivery and performance by the Issuer and each Guarantor of the Note have been duly authorized by all necessary corporate or other organizational action, and do not and will not (a) contravene the terms of its Organizational Documents, (b) conflict with or result in any breach or contravention of, or the creation of any Lien under, or require any payment to be made under (i) any material Contractual Obligation to which the Issuer or any Guarantor is a party or affecting the Issuer or any Guarantor or the material properties of the Issuer, any Guarantor or any Subsidiary or (ii) any material order, injunction, writ or decree of any Governmental Authority or any arbitral award to which the Issuer, the Guarantor or any Subsidiary or its property is subject or (c) violate any Law, except to the extent that such violation could not reasonably be expected to have a Material Adverse Effect.

3.3 <u>Governmental Authorization; Other Consents</u>. No approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any Governmental Authority or any other Person is necessary or required in connection with the execution, delivery or performance by, or enforcement against, the Issuer or any Guarantor of this Note, except for such approvals, consents, exemptions, authorizations, actions or notices that have been duly obtained, taken or made and in full force and effect.

3.4 <u>Execution and Delivery; Binding Effect</u>. This Note has been duly executed and delivered by the Issuer and each Guarantor. This Note constitutes a legal, valid and binding obligation of the Issuer and each Guarantor, enforceable against the Issuer and each Guarantor in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, receivership, moratorium or other Laws affecting creditors' rights generally and by general principles of equity.

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4 **<u>COVENANTS</u>**

Until all Obligations shall have been paid in full or until any later date as provided for in this Note, the Issuer covenants and agrees with the Holder that:

4.1 <u>Notices</u>. The Issuer will promptly notify the Holder of the occurrence of any Default.

4.2 <u>Guarantors</u>. The Guarantors listed on the signature page to this Note hereby Guarantee the Guaranteed Obligations as set forth in Annex B. If any Subsidiary (other than an Excluded Subsidiary) is formed or acquired after the Closing Date or if any Subsidiary ceases to be an Excluded Subsidiary, then the Issuer will cause such Subsidiary to become a Guarantor of this Note within 30 days of such Subsidiary being formed or acquired or of such Subsidiary ceasing to be an Excluded Subsidiary pursuant to customary documentation reasonably acceptable to the Holder and on the terms and conditions set forth in Annex B.

4.3 <u>Pari Passu Ranking</u>. The Obligations of the Issuer and any Guaranteed Obligations of any Guarantor under this Note shall be unsecured obligations of the Issuer and any Guarantor ranking *pari passu* with all existing and future senior unsecured Indebtedness of the Issuer or any Guarantor that is not subordinated in right of payment to the holder or lender of such Indebtedness.

5 **<u>EVENTS OF DEFAULT</u>**

5.1 <u>Events of Default</u>. If any of the following events (each, an "<u>Event of Default</u>") shall occur:

(a) the Issuer shall fail to pay any principal of the Note when and as the same shall become due and payable, whether at the due date thereof or at a date fixed for prepayment thereof or otherwise;

(b) the Issuer shall fail to pay any interest on the Note, or any fee or any other amount (other than an amount referred to in clause (a) of this Section) payable under this Note, when and as the same shall become due and payable, and such failure shall continue unremedied for a period of two (2) or more Business Days;

(c) any representation or warranty made or deemed made by or on behalf of the Issuer or any Guarantor, including those made prior to the Closing Date, in or in connection with this Note or any amendment or modification hereof, or any waiver hereunder, or in the PSP3 Agreement, or in any report, certificate, financial statement or other document furnished pursuant to or in connection with this Note, the PSP3 Agreement or the PSP3 Application or any amendment or modification hereof or thereof, or any waiver hereunder or thereunder, shall prove to have been incorrect in any material respect (or, in the case of any such representation or warranty under this Note already qualified by materiality, such representation or warranty shall prove to have been incorrect) when made or deemed made;

(d) the Issuer shall fail to observe or perform any covenant, condition or agreement contained in Section 4.1;

(e) the Issuer or any Guarantor shall fail to observe or perform any covenant, condition or agreement contained in this Note (other than those specified in clause (a), (b) or (d) of this Section) and such failure shall continue unremedied for a period of 30 or more days after notice thereof by the Holder to the Issuer;

(f) (i) the Issuer or any Guarantor shall default in the performance of any obligation relating to any Indebtedness (other than Indebtedness under the Note) having an aggregate principal amount equal to or greater than $5,000,000 ("<u>Material Indebtedness</u>") and any applicable grace periods shall have expired and any applicable notice requirements shall have been complied with, and as a result of such default the holder or holders of such Material Indebtedness or any trustee or agent on behalf of such holder or holders shall have caused such Material Indebtedness to become due prior to its scheduled final maturity date or (ii) the Issuer or any Guarantor shall default in the payment of the outstanding principal amount due on the scheduled final maturity date of any Indebtedness outstanding under one or more agreements of the Issuer or any Guarantor, any applicable grace periods shall have expired and any applicable notice requirements shall have been complied with and such failure to make payment when due shall be continuing for a period of more than five (5) consecutive Business Days following the applicable scheduled final maturity date or the applicable grace period thereunder, in an aggregate principal amount at any single time unpaid exceeding $5,000,000;

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(g) an involuntary proceeding shall be commenced or an involuntary petition shall be filed seeking (i) liquidation, reorganization or other relief in respect of the Issuer, any Guarantor or any Subsidiary or its debts, or of a substantial part of its assets, under any Debtor Relief Law now or hereafter in effect or (ii) the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for the Issuer or any of its Subsidiaries or for a substantial part of its assets, and, in any such case, such proceeding or petition shall continue undismissed for a period of 60 or more days or an order or decree approving or ordering any of the foregoing shall be entered;

(h) the Issuer, any Guarantor or any Subsidiary shall (i) voluntarily commence any proceeding or file any petition seeking liquidation, reorganization or other relief under any Debtor Relief Law now or hereafter in effect, (ii) consent to the institution of, or fail to contest in a timely and appropriate manner, any proceeding or petition described in clause (g) of this Section, (iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for the Issuer, any Guarantor or any Subsidiary or for a substantial part of its assets, (iv) file an answer admitting the material allegations of a petition filed against it in any such proceeding or (v) make a general assignment for the benefit of creditors;

(i) the Issuer, any Guarantor or any Subsidiary shall become unable, admit in writing its inability or fail generally to pay its debts as they become due;

(j) there is entered against the Issuer, any Guarantor or any Subsidiary (i) a final judgment or order for the payment of money in an aggregate amount (as to all such judgments and orders) exceeding an amount equal to or greater than $5,000,000 (to the extent not covered by independent third-party insurance as to which the insurer has been notified of such judgment or order and has not denied or failed to acknowledge coverage), or (ii) a non-monetary final judgment or order that, either individually or in the aggregate, has or could reasonably be expected to have a Material Adverse Effect and, in either case, (A) enforcement proceedings are commenced by any creditor upon such judgment or order, or (B) there is a period of 30 consecutive days during which a stay of enforcement of such judgment, by reason of a pending appeal or otherwise, is not in effect; or

(k) any material provision of the Note, at any time after its execution and delivery and for any reason other than as expressly permitted hereunder or satisfaction in full of all Obligations, ceases to be in full force and effect; or the Issuer, any Guarantor or any other Person contests in writing the validity or enforceability of any provision of the Note; or the Issuer or any Guarantor denies in writing that it has any or further liability or obligation under the Note, or purports in writing to revoke, terminate or rescind the Note;

then, and in every such event (other than an event with respect to the Issuer or any Guarantor described in clause (g) or (h) of this Section), and at any time thereafter during the continuance of such event, the Holder may, by notice to the Issuer, take any or all of the following actions, at the same or different times:

(i) declare any amounts then outstanding under the Note to be due and payable in whole (or in part, in which case any principal not so declared to be due and payable may thereafter be declared to be due and payable), and thereupon the principal of the Note so declared to be due and payable, together with accrued interest thereon and all fees and other Obligations of the Issuer accrued hereunder, shall become due and payable immediately, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Issuer and any Guarantor; and

(ii) exercise on all rights and remedies available to it under the Note and Applicable Law;

<u>provided</u> that, in case of any event with respect to the Issuer or any Guarantor described in clause (g) or (h) of this Section, the principal of the Note then outstanding, together with accrued interest thereon and all fees and other Obligations accrued hereunder, shall automatically become due and payable, in each case without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Issuer and any Guarantor.

6 **<u>MISCELLANEOUS</u>**

6.1 <u>Notices</u>.

(a) <u>Notices Generally</u>. Except in the case of notices and other communications expressly permitted to be given by telephone (and except as provided in paragraph (b) below), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by email as follows:

(i) if to the Issuer or any Guarantor, to 8909 Purdue Road, Suite 300, Indianapolis, IN 46266, Attention of Chad Pulley (Telephone No. 317-471-2335; Email: chad.pulley@rjet.com);

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(ii) if to the Holder, to the Department of the Treasury at 1500 Pennsylvania Avenue, NW, Washington, D.C. 20220, Attention of Assistant General Counsel (Banking and Finance) (Telephone No. 202-622-0283; Email: eric.froman@treasury.gov); and

Notices sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received. Notices delivered through electronic communications, to the extent provided in paragraph (b) below, shall be effective as provided in said paragraph (b).

(b) <u>Electronic Communications</u>. Notices and other communications to the Holder hereunder may be delivered or furnished by electronic communication (including e-mail, FpML, and Internet or intranet websites) pursuant to procedures approved by the Holder. The Holder, the Issuer or any Guarantor may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it; <u>provided</u> that approval of such procedures may be limited to particular notices or communications.

Unless the Holder otherwise prescribes, (i) notices and other communications sent to an e-mail address shall be deemed received upon the sender's receipt of an acknowledgement from the intended recipient (such as by return e-mail or other written acknowledgement), and (ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient, at its e-mail address as described in the foregoing clause (i), of notification that such notice or communication is available and identifying the website address therefor; <u>provided</u> that, for both clauses (i) and (ii) above, if such notice, email or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next Business Day.

6.2 <u>Waivers; Amendments</u>.

(a) <u>No Waiver; Remedies Cumulative; Enforcement</u>. No failure or delay by the Holder in exercising any right, remedy, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, remedy, power or privilege, or any abandonment or discontinuance of steps to enforce such a right remedy, power or privilege, preclude any other or further exercise thereof or the exercise of any other right remedy, power or privilege. The rights, remedies, powers and privileges of the Holder hereunder and under the Note are cumulative and are not exclusive of any rights, remedies, powers or privileges that any such Person would otherwise have.

(b) <u>Amendments, Etc</u>. Except as otherwise expressly set forth in this Note, no amendment or waiver of any provision of this Note, and no consent to any departure by the Issuer therefrom, shall be effective unless in writing executed by the Issuer and the Holder, and each such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.

6.3 <u>Expenses; Indemnity; Damage Waiver</u>.

(a) <u>Costs and Expenses</u>. The Issuer shall pay (i) all reasonable out-of-pocket expenses incurred by the Holder (including the reasonable fees, charges and disbursements of any counsel for the Holder) in connection with the preparation, negotiation, execution, delivery and administration of this Note and the PSP3 Agreement, any other agreements or documents executed in connection herewith or therewith, or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated), and (ii) all out-of-pocket expenses incurred by the Holder (including the fees, charges and disbursements of any counsel for the Holder), in connection with the enforcement or protection of its rights in connection with this Note and the PSP3 Agreement, any other agreements or documents executed in connection herewith or therewith, or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated), including all such out-of-pocket expenses incurred during any workout, restructuring, negotiations or enforcement in respect of such Note, PSP3 Agreement and other agreements or documents executed in connection herewith or therewith.

(b) <u>Indemnification by the Issuer</u>. The Issuer shall indemnify the Holder and each of its Related Parties (each such Person being called an "<u>Indemnitee</u>") against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities, obligations, penalties, fines, settlements, judgments, disbursements and related costs and expenses (including the fees, charges and disbursements of any counsel for any Indemnitee), and shall indemnify and hold harmless each Indemnitee from all fees and time charges and disbursements for attorneys who may be employees of any Indemnitee, incurred by any Indemnitee or asserted against any Indemnitee by any Person (including the Issuer) arising out of, in connection with, or as a result of (i) the execution or delivery of this Note or any agreement or instrument contemplated hereby, the performance by the Issuer or any Guarantor of its obligations hereunder or the consummation of the transactions contemplated hereby, (ii) the Note or the use or proposed use of the proceeds therefrom, or (iii) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory, whether brought by a third party or by the Issuer or any Guarantor, and regardless of whether any Indemnitee is a party thereto.

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(c) <u>Waiver of Consequential Damages, Etc.</u> To the fullest extent permitted by Applicable Law, the Issuer and any Guarantor shall not assert, and hereby waives, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Note or any agreement or instrument contemplated hereby, the transactions contemplated hereby, or the use of the proceeds thereof. No Indemnitee referred to in paragraph (b) above shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed by it through telecommunications, electronic or other information transmission systems in connection with this Note or the transactions contemplated hereby.

(d) <u>Payments</u>. All amounts due under this Section shall be payable not later than five (5) days after demand therefor.

(e) <u>Survival</u>. Each party's obligations under this Section shall survive the termination of the Note and payment of the obligations hereunder.

6.4 <u>Successors and Assigns</u>. Neither the Issuer nor any Guarantor may assign or transfer this Note or any of its rights or obligations hereunder and any purported assignment or transfer in violation of this Note shall be void. Holder may assign or participate a portion or all of its rights under this Note at any time in compliance with all Applicable Laws. This Note shall inure to the benefit of and be binding upon Issuer, any Guarantor and Holder and their permitted successors and assigns. Any Holder that assigns, or sells participations in, any portion of the Note will take such actions as are necessary for the Note and such portion to be in "registered form" (within the meaning of Treasury Regulations Section 5f.103-1).

6.5 <u>Counterparts; Integration; Effectiveness</u>

. This Note and any amendments, waivers, consents or supplements hereto may be executed in counterparts, each of which shall constitute an original, but all taken together shall constitute a single contract. This Note constitutes the entire contract between Issuer, any Guarantor and the Holder with respect to the subject matter hereof and supersede all previous agreements and understandings, oral or written, with respect thereto. Notwithstanding anything herein to the contrary, delivery of an executed counterpart of a signature page of this Note by electronic means shall be effective as delivery of a manually executed counterpart of this Note.

6.6 <u>Severability</u>. If any term or provision of this Note is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term or provision of this Note or invalidate or render unenforceable such term or provision in any other jurisdiction.

6.7 <u>Right of Setoff</u>. If an Event of Default shall have occurred and be continuing, the Holder is hereby authorized at any time and from time to time, to the fullest extent permitted by Applicable Law, to set off and apply any and all deposits (general or special, time or demand, provisional or final, in whatever currency) at any time held, and other obligations (in whatever currency) at any time owing, by the Holder, to or for the credit or the account of the Issuer against any and all of the due and unpaid Obligations of the Issuer now or hereafter existing under this Note to the Holder, irrespective of whether or not the Holder shall have made any demand under this Note. The rights of the Holder under this Section are in addition to other rights and remedies (including other rights of setoff) that the Holder may have. The Holder agrees to notify the Issuer promptly after any such setoff and application; <u>provided</u> that the failure to give such notice shall not affect the validity of such setoff and application.

6.8 <u>Governing Law; Jurisdiction; Etc</u>. This Note will be governed by and construed in accordance with the federal law of the United States if and to the extent such law is applicable, and otherwise in accordance with the laws of the State of New York applicable to contracts made and to be performed entirely within such State. Each of the Issuer, any Guarantor and the Holder agrees (a) to submit to the exclusive jurisdiction and venue of the United States District Court for the District of Columbia for any civil action, suit or proceeding arising out of or relating to this Note or the transactions contemplated hereby, and (b) that notice may be served upon the Issuer, any Guarantor or the Holder at the applicable address in Section 6.1 hereof (or upon any Holder that is not Treasury at an address provided by such Holder to Issuer in writing). To the extent permitted by Applicable Law, each of the Issuer, any Guarantor and the Holder hereby unconditionally waives trial by jury in any civil legal action or proceeding relating to the Note or the transactions contemplated hereby.

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6.9<u> </u><u>Headings</u>. Section headings used herein are for convenience of reference only, are not part of this Note and shall not affect the construction of, or be taken into consideration in interpreting, this Note.

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IN WITNESS WHEREOF, the Issuer and each Guarantor have executed this Note as of the day and year written below.

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| | |
|:---|:---|
| REPUBLIC AIRWAYS INC.,<br> as Issuer | REPUBLIC AIRWAYS INC.,<br> as Issuer |
| By | /s/ Bryan Bedford |
| Name: | Bryan Bedford |
| Title: | President and Chief Executive Officer |
| Date: | June 10, 2021 |
| REPUBLIC AIRWAYS HOLDINGS INC.,<br> as Guarantor | REPUBLIC AIRWAYS HOLDINGS INC.,<br> as Guarantor |
| By | /s/ Bryan Bedford |
| Name: | Bryan Bedford |
| Title: | President and Chief Executive Officer |
| Date: | June 10, 2021 |

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**ANNEX A** 

<u>DEFINITIONS</u> 

"<u>Affiliate</u>" means any Person that directly or indirectly Controls, is Controlled by, or is under common Control with, the Issuer.

"<u>Applicable Law</u>" means, as to any Person, all applicable Laws binding upon such Person or to which such a Person is subject.

"<u>Applicable SOFR Rate</u>" means a rate of interest based on SOFR that shall be determined by the Holder and publicly announced by the Holder on or prior to the fifth anniversary of the Closing Date and shall, to the extent reasonably practicable, be based on customary market conventions as in effect at the time of such announcement. In no event will the Applicable SOFR Rate be less than 0.00% per annum.

"<u>ARRC Fallback Provisions</u>" means the Fallback Language for New Issuances of LIBOR Floating Rate Notes set forth in the ARRC Recommendations Regarding More Robust Fallback Language for New Issuances of LIBOR Floating Rate Notes, dated April 25, 2019.

"<u>ASU</u>" means the Accounting Standards Update 2016-02, Leases (Topic 842) by the Financial Accounting Standards Board issued on February 25, 2016.

"<u>Beneficial Owner</u>" has the meaning assigned to such term in Rule 13d-3 and Rule 13d-5 under the Exchange Act, except that in calculating the beneficial ownership of any particular "person" (as that term is used in Section 13(d)(3) of the Exchange Act), such "person" will be deemed to have beneficial ownership of all securities that such "person" has the right to acquire by conversion or exercise of other securities, whether such right is currently exercisable or is exercisable only after the passage of time. The terms "Beneficially Owns" and "Beneficially Owned" have a corresponding meaning.

"<u>Business Day</u>" means any on which Treasury and the Federal Reserve Bank of New York are both open for business.

"<u>Capitalized Lease Obligations</u>" means, at the time any determination thereof is to be made, the amount of the liability in respect of a Capitalized Lease that would at such time be required to be capitalized and reflected as a liability on a balance sheet (excluding the footnotes thereto) prepared in accordance with GAAP; <u>provided</u> that all leases of such Person that are or would have been treated as operating leases for purposes of GAAP prior to the issuance of the ASU shall continue to be accounted for as operating leases for purposes of all financial definitions and calculations for purposes of this Note (whether or not such operating lease obligations were in effect on such date) notwithstanding the fact that such obligations are required in accordance with the ASU (on a prospective or retroactive basis or otherwise) to be treated as capitalized lease obligations for other purposes.

"<u>Capitalized Leases</u>" means all leases that have been or should be, in accordance with GAAP as in effect on the Closing Date, recorded as capitalized leases; <u>provided</u> that for all purposes hereunder the amount of obligations under any Capitalized Lease shall be the amount thereof accounted for as a liability in accordance with GAAP; <u>provided</u>, <u>further</u>, that all leases of such Person that are or would have been treated as operating leases for purposes of GAAP prior to the issuance of the ASU shall continue to be accounted for as operating leases for purposes of all financial definitions and calculations for purposes of this Note (whether or not such operating lease obligations were in effect on such date) notwithstanding the fact that such obligations are required in accordance with the ASU (on a prospective or retroactive basis or otherwise) to be treated as capitalized lease obligations for other purposes.

"<u>Change of Control</u>" means the occurrence of any of the following: (a) the sale, lease, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the properties or assets of the Issuer and its Subsidiaries, or if the Issuer is a Subsidiary of any Guarantor, such Guarantor (the "<u>Parent Guarantor</u>") and its Subsidiaries, taken as a whole to any Person (including any "person" (as that term is used in Section 13(d)(3) of the Exchange Act)); or (b) the consummation of any transaction (including, without limitation, any merger or consolidation), the result of which is that any Person (including any "person" (as defined above)) becomes the Beneficial Owner, directly or indirectly, of more than 50% of the Voting Stock of the Issuer or Parent Guarantor, as applicable, (measured by voting power rather than number of shares), other than (i) any such transaction where the Voting Stock of the Issuer or Parent Guarantor, as applicable,

Annex A-1

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(measured by voting power rather than number of shares) outstanding immediately prior to such transaction constitutes or is converted into or exchanged for at least a majority of the outstanding shares of the Voting Stock of such Beneficial Owner (measured by voting power rather than number of shares), or (ii) any merger or consolidation of the Issuer or Parent Guarantor, as applicable, with or into any Person (including any "person" (as defined above)) which owns or operates (directly or indirectly through a contractual arrangement) a Permitted Business (a "<u>Permitted Person</u>") or a Subsidiary of a Permitted Person, in each case, if immediately after such transaction no Person (including any "person" (as defined above)) is the Beneficial Owner, directly or indirectly, of more than 50% of the total Voting Stock of such Permitted Person (measured by voting power rather than number of shares).

"<u>Closing Date</u>" means the date set forth on the Issuer's and each Guarantor's signature page to this Note.

"<u>Contractual Obligation</u>" means, as to any Person, any provision of any security issued by such Person or of any agreement, instrument or other undertaking to which such Person is a party or by which it or any of its property is bound.

"<u>Control</u>" means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise. "<u>Controlling</u>" and "<u>Controlled</u>" have meanings analogous thereto.

"<u>Debtor Relief Laws</u>" means the Bankruptcy Code of the United States of America, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the United States or other applicable jurisdictions from time to time in effect.

"<u>Default</u>" means any event or condition that constitutes an Event of Default or that, with the giving of any notice, the passage of time, or both, would be an Event of Default.

"<u>Default Rate</u>" means an interest rate (before as well as after judgment) equal to the interest rate on the Note <u>plus</u> 2.00% per annum.

"<u>Disqualified Equity Interest</u>" means any equity interest that, by its terms (or the terms of any security or other equity interests into which it is convertible or for which it is exchangeable), or upon the happening of any event or condition (a) matures or is mandatorily redeemable (other than solely for equity interests that are not Disqualified Equity Interests), pursuant to a sinking fund obligation or otherwise (except as a result of a change of Control or asset sale so long as any rights of the holders thereof upon the occurrence of a change of Control or asset sale event shall be subject to the prior repayment in full of the Note and all other Obligations that are accrued and payable), (b) is redeemable at the option of the holder thereof, in whole or in part, (c) provides for scheduled payments of dividends in cash, or (d) is or becomes convertible into or exchangeable for Indebtedness or any other equity interests that would constitute Disqualified Equity Interests, in each case, prior to the date that is ninety-one days after the Maturity Date; <u>provided</u> that if such equity interests are issued pursuant to a plan for the benefit of employees of the Issuer or any Subsidiary or by any such plan to such employees, such equity interests shall not constitute Disqualified Equity Interests solely because they may be required to be repurchased by the Issuer or its Subsidiaries in order to satisfy applicable statutory or regulatory obligations or as a result of such employee's termination, death or disability.

"<u>Dollar</u>" and "<u>$</u>" mean lawful money of the United States.

"<u>Event of Default</u>" has the meaning specified in Section 5.

"<u>Exchange Act</u>" shall mean the Securities Exchange Act of 1934, as amended.

"<u>Excluded Subsidiary</u>" means any Subsidiary of the Issuer that is not an obligor in respect of any Material Indebtedness that is unsecured of the Issuer or any of its Subsidiaries, unless such Subsidiary is required to be an obligor under any agreement, instrument or other document relating to any Material Indebtedness that is unsecured of the Issuer or any of its Subsidiaries.

"<u>GAAP</u>" means United States generally accepted accounting principles as in effect as of the date of determination thereof. Notwithstanding any other provision contained herein, (a) all terms of an accounting or financial nature used herein shall be construed, and all computations of amounts and ratios referred to herein shall be made, without giving effect to any election under FASB Accounting Standards Codification 825-Financial Instruments, or any successor thereto (including pursuant to the FASB Accounting Standards Codification), to value any Indebtedness of any subsidiary at "fair value," as defined therein and (b) the amount of any Indebtedness under GAAP with respect to Capitalized Lease Obligations shall be determined in accordance with the definition of Capitalized Lease Obligations.

Annex A-2

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"<u>Governmental Authority</u>" means the government of the United States of America or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank).

"<u>Guarantee</u>" means, as to any Person, (a) any obligation, contingent or otherwise, of such Person guaranteeing or having the economic effect of guaranteeing any Indebtedness or other obligation payable or performable by another Person (the "primary obligor") in any manner, whether directly or indirectly, and including any obligation of such Person, direct or indirect, (i) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation, (ii) to purchase or lease property, securities or services for the purpose of assuring the obligee in respect of such Indebtedness or other obligation of the payment or performance of such Indebtedness or other obligation, (iii) to maintain working capital, equity capital or any other financial statement condition or liquidity or level of income or cash flow of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other obligation or (iv) entered into for the purpose of assuring in any other manner the obligee in respect of such Indebtedness or other obligation of the payment or performance thereof or to protect such obligee against loss in respect thereof (in whole or in part) or (b) any Lien on any assets of such Person securing any Indebtedness or other obligation of any other Person, whether or not such Indebtedness or other obligation is assumed by such Person (or any right, contingent or otherwise, of any holder of such Indebtedness to obtain any such Lien); provided that the term "Guarantee" shall not include endorsements for collection or deposit in the ordinary course of business. The amount of any Guarantee shall be deemed to be an amount equal to the stated or determinable amount of the related primary obligation, or portion thereof, in respect of which such Guarantee is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof as determined by the guaranteeing Person in good faith. The term "Guarantee" as a verb has a corresponding meaning.

"<u>Guaranteed Obligations</u>" has the meaning specified in Annex B.

"<u>Guarantor</u>" means each Guarantor listed on the signature page to this Note and any other Person that Guarantees this Note.

"<u>Holder</u>" means the United States Department of the Treasury or its designees or any other Person that shall have rights pursuant to an assignment hereunder.

Annex A-3

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"<u>Indemnitee</u>" has the meaning specified in Section 6.3(b).

"<u>Issuer</u>" has the meaning specified in the preamble to this Note.

"<u>Laws</u>" means, collectively, all international, foreign, federal, state and local statutes, treaties, rules, guidelines, regulations, ordinances, codes and administrative or judicial precedents or authorities, including the interpretation or administration thereof by any Governmental Authority charged with the enforcement, interpretation or administration thereof, and all applicable administrative orders, directed duties, requests, licenses, authorizations and permits of, and agreements with, any Governmental Authority, in each case whether or not having the force of law.

"<u>Lien</u>" means any mortgage, pledge, hypothecation, collateral assignment, deposit arrangement, encumbrance, lien (statutory or other), charge, or preference, priority or other security interest or preferential arrangement of any kind or nature whatsoever (including any conditional sale or other title retention agreement, any easement, right of way or other encumbrance on title to real property, and any financing lease having substantially the same economic effect as any of the foregoing).

"<u>Material Adverse Effect</u>" means (a) a material adverse change in, or a material adverse effect on, the operations, business, properties, liabilities (actual or contingent), condition (financial or otherwise) or prospects of the Issuer and its Subsidiaries taken as a whole; or (b) a material adverse effect on (i) the ability of the Issuer or any Guarantor to perform its Obligations, (ii) the legality, validity, binding effect or enforceability against the Issuer or any Guarantors of the Note or (iii) the rights, remedies and benefits available to, or conferred upon, the Holder under the Note.

"<u>Material Indebtedness</u>" has the meaning specified in Section 5.1(f).

"<u>Maturity Date</u>" means the date that is ten years after the Closing Date (except that, if such date is not a Business Day, the Maturity Date shall be the next preceding Business Day).

"<u>Note</u>" has the meaning specified in the preamble to this Note.

"<u>Obligations</u>" means all advances to, and debts, liabilities, obligations, covenants and duties of, the Issuer arising under or otherwise with respect to the Note, whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter arising and including interest and fees that accrue after the commencement by or against the Issuer or any Affiliate thereof of any proceeding under any Debtor Relief Laws naming such Person as the debtor in such proceeding, regardless of whether such interest and fees are allowed claims in such proceeding. Without limiting the foregoing, the Obligations include (a) the obligation to pay principal, interest, charges, expenses, fees, indemnities and other amounts payable by the Issuer under the Note and (b) the obligation of the Issuer to reimburse any amount in respect of any of the foregoing that the Holder, in each case in its sole discretion, may elect to pay or advance on behalf of the Issuer.

"<u>Obligee Guarantor</u>" has the meaning specified in Annex B.

"<u>Organizational Documents</u>" means (a) as to any corporation, the charter or certificate or articles of incorporation and the bylaws (or equivalent or comparable constitutive documents with respect to any non-U.S. jurisdiction), (b) as to any limited liability company, the certificate or articles of formation or organization and operating or limited liability agreement and (c) as to any partnership, joint venture, trust or other form of business entity, the partnership, joint venture or other applicable agreement of formation or organization and any agreement, instrument, filing or notice with respect thereto filed in connection with its formation or organization with the applicable Governmental Authority in the jurisdiction of its formation or organization and, if applicable, any certificate or articles of formation or organization of such entity.

"<u>Permitted Business</u>" means any business that is the same as, or reasonably related, ancillary, supportive or complementary to, the business in which the Issuer and its Subsidiaries are engaged on the date of this Note.

"<u>Person</u>" means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity.

"<u>Principal Amount</u>" has the meaning specified in the preamble to this Note.

"<u>PSP3 Extension Law</u>" has the meaning specified in the preamble to this Note.

"<u>PSP3 Agreement</u>" has the meaning specified in the preamble to this Note.

Annex A-4

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"<u>PSP3 Application</u>" means the application form and any related materials submitted by the Issuer to Treasury in connection with an application for financial assistance under Section 7301 of the PSP3 Extension Law.

"<u>Related Parties</u>" means, with respect to any Person, such Person's Affiliates and the agents, advisors and representatives of such Person and of such Person's Affiliates.

"<u>SOFR</u>" means the secured overnight financing rate published by the Federal Reserve Bank of New York, as administrator of the benchmark (or a successor administrator) on the Federal Reserve Bank of New York's (or such successor's) website.

"<u>Subsidiary</u>" of a Person means a corporation, partnership, limited liability company, association or joint venture or other business entity of which a majority of the equity interests having ordinary voting power for the election of directors or other governing body (other than securities or interests having such power only by reason of the happening of a contingency) are at the time owned or the management of which is Controlled, directly, or indirectly through one or more intermediaries, by such Person. Unless otherwise specified, all references herein to a "Subsidiary" or to "Subsidiaries" shall refer to a Subsidiary or Subsidiaries of the Issuer.

"<u>Treasury</u>" has the meaning specified in the preamble to this Note.

"<u>United States</u>" and "<u>U.S.</u>" mean the United States of America.

"<u>Voting Stock</u>" of any specified Person as of any date means the equity interests of such Person that is at the time entitled to vote in the election of the board of directors of such Person.

Annex A-5

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**ANNEX B** 

<u>GUARANTEE</u> 

1. <u>Guarantee of the Obligations</u>. Each Guarantor jointly and severally hereby irrevocably and unconditionally guarantees to the Holder, the due and punctual payment in full of all Obligations (or such lesser amount as agreed by the Holder in its sole discretion) when the same shall become due, whether at stated maturity, by required prepayment, declaration, acceleration, demand or otherwise (including amounts that would become due but for the operation of the automatic stay under Section 362(a) of the Bankruptcy Code, 11 U.S.C. § 362(a)) (collectively, the "<u>Guaranteed Obligations</u>").

2. <u>Payment by a Guarantor</u>. Each Guarantor hereby jointly and severally agrees, in furtherance of the foregoing and not in limitation of any other right which the Holder may have at law or in equity against any Guarantor by virtue hereof, that upon the failure of the Issuer to pay any of the Guaranteed Obligations when and as the same shall become due, whether at stated maturity, by required prepayment, declaration, acceleration, demand or otherwise (including amounts that would become due but for the operation of the automatic stay under Section 362(a) of the Bankruptcy Code, 11 U.S.C. § 362(a)), such Guarantor will upon demand pay, or cause to be paid, in cash, to the Holder an amount equal to the sum of the unpaid principal amount of all Guaranteed Obligations then due as aforesaid, accrued and unpaid interest on such Guaranteed Obligations (including interest which, but for the Issuer's becoming the subject of a case under the Bankruptcy Code, would have accrued on such Guaranteed Obligations, whether or not a claim is allowed against the Issuer for such interest in the related bankruptcy case) and all other Guaranteed Obligations then owed to the Holder as aforesaid.

3. <u>Liability of Guarantors Absolute</u>. Each Guarantor agrees that its obligations hereunder are irrevocable, absolute, independent and unconditional and shall not be affected by any circumstance which constitutes a legal or equitable discharge of a guarantor or surety other than payment in full of the Guaranteed Obligations. In furtherance of the foregoing and without limiting the generality thereof, each Guarantor agrees as follows:

(a) this Guarantee is a guarantee of payment when due and not of collectability;

(b) the Holder may enforce this Guarantee upon the occurrence of an Event of Default notwithstanding the existence of any dispute between the Issuer and the Holder with respect to the existence of such Event of Default;

(c) a separate action or actions may be brought and prosecuted against such Guarantor whether or not any action is brought against the Issuer or any other Guarantors and whether or not Issuer or such Guarantors are joined in any such action or actions;

(d) payment by any Guarantor of a portion, but not all, of the Guaranteed Obligations shall in no way limit, affect, modify or abridge any other Guarantor's liability for any portion of the Guaranteed Obligations which has not been paid;

(e) the Holder, upon such terms as it deems appropriate, without notice or demand and without affecting the validity or enforceability hereof or giving rise to any reduction, limitation, impairment, discharge or termination of any Guarantor's liability hereunder, from time to time may (i) renew, extend, accelerate, increase the rate of interest on, or otherwise change the time, place, manner or terms of payment of the Guaranteed Obligations; (ii) settle, compromise, release or discharge, or accept or refuse any offer of performance with respect to, or substitutions for, the Guaranteed Obligations or subordinate the payment of the same to the payment of any other obligations; (iii) release, surrender, exchange, substitute, compromise, settle, rescind, waive, alter, subordinate or modify, with or without consideration, any security for payment of the Guaranteed Obligations, any other guarantees of the Guaranteed Obligations, or any other obligation of any Person (including any other Guarantor) with respect to the Guaranteed Obligations; and (iv) enforce its rights and remedies even though such action may operate to impair or extinguish any right of reimbursement or subrogation or other right or remedy of any Guarantor against the Issuer or any security for the Guaranteed Obligations; and

(f) this Guarantee and the obligations of each Guarantor hereunder shall be valid and enforceable and shall not be subject to any reduction, limitation, impairment, discharge or termination for any reason (other than payment in full of the Guaranteed Obligations), including the occurrence of any of the following: (i) any failure, delay or omission to assert or enforce or agreement or election not to assert or enforce, or the stay or enjoining, by order of court, by

Annex B-1

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operation of law or otherwise, of the exercise or enforcement of, any claim or demand or any right, power or remedy with respect to the Guaranteed Obligations, or with respect to any security for the payment of the Guaranteed Obligations; (ii) any rescission, waiver, amendment or modification of, or any consent to departure from, any of the terms or provisions hereof; (iii) the Guaranteed Obligations, or any agreement relating thereto, at any time being found to be illegal, invalid or unenforceable in any respect; (iv) the Holder's consent to the change, reorganization or termination of the corporate structure or existence of the Issuer or any of its Subsidiaries and to any corresponding restructuring of the Guaranteed Obligations; (v) any defenses, set-offs or counterclaims which the Issuer or any Guarantor may allege or assert against the Holder in respect of the Guaranteed Obligations, including failure of consideration, lack of authority, validity or enforceability, breach of warranty, payment, statute of frauds, statute of limitations, accord and satisfaction and usury; and (vi) any other event or circumstance that might in any manner vary the risk of any Guarantor as an obligor in respect of the Guaranteed Obligations.

4. <u>Waivers by Guarantors</u>. Each Guarantor hereby waives, for the benefit of the Holder: (a) any right to require the Holder, as a condition of payment or performance by such Guarantor, to (i) proceed against Issuer, any Guarantor or any other Person; (ii) proceed against or exhaust any security in favor of the Holder; or (iii) pursue any other remedy in the power of the Holder whatsoever or (b) presentment to, demand for payment from and protest to the Issuer or any Guarantor or notice of acceptance; and (c) any defenses or benefits that may be derived from or afforded by law which limit the liability of or exonerate guarantors or sureties, or which may conflict with the terms hereof.

5. <u>Guarantors</u><u>'</u> <u>Rights of Subrogation, Contribution, etc</u>. Until the Guaranteed Obligations shall have been paid in full, each Guarantor hereby waives any claim, right or remedy, direct or indirect, that such Guarantor now has or may hereafter have against the Issuer or any other Guarantor or any of its assets in connection with this Guarantee or the performance by such Guarantor of its obligations hereunder, including without limitation (a) any right of subrogation, reimbursement or indemnification that such Guarantor now has or may hereafter have against the Issuer with respect to the Guaranteed Obligations, (b) any right to enforce, or to participate in, any claim, right or remedy that the Holder now has or may hereafter have against the Issuer, and (c) any benefit of, and any right to participate in, any collateral or security now or hereafter held by the Holder. In addition, until the Guaranteed Obligations shall have been paid in full, each Guarantor shall withhold exercise of any right of contribution such Guarantor may have against any other guarantor (including any other Guarantor) of the Guaranteed Obligations. If any amount shall be paid to any Guarantor on account of any such subrogation, reimbursement, indemnification or contribution rights at any time when all Guaranteed Obligations shall not have been finally and paid in full, such amount shall be held in trust for the Holder and shall forthwith be paid over to the Holder to be credited and applied against the Guaranteed Obligations, whether matured or unmatured, in accordance with the terms hereof.

6. <u>Subordination</u>. Any Indebtedness of the Issuer or any Guarantor now or hereafter held by any Guarantor (the "<u>Obligee Guarantor</u>") is hereby subordinated in right of payment to the Guaranteed Obligations, and any such indebtedness collected or received by the Obligee Guarantor after an Event of Default has occurred and is continuing shall be held in trust for the Holder and shall forthwith be paid over to the Holder to be credited and applied against the Guaranteed Obligations but without affecting, impairing or limiting in any manner the liability of the Obligee Guarantor under any other provision hereof.

7. <u>Continuing Guarantee</u>. This Guarantee is a continuing guarantee and shall remain in effect until all of the Guaranteed Obligations shall have been paid in full. Each Guarantor hereby irrevocably waives any right to revoke this Guarantee as to future transactions giving rise to any Guaranteed Obligations.

8. <u>Financial Condition of the Issuer</u>. The Note may be issued to the Issuer without notice to or authorization from any Guarantor regardless of the financial or other condition of the Issuer at the time of such grant. Each Guarantor has adequate means to obtain information from the Issuer on a continuing basis concerning the financial condition of the Issuer and its ability to perform its obligations under the Note, and each Guarantor assumes the responsibility for being and keeping informed of the financial condition of the Issuer and of all circumstances bearing upon the risk of nonpayment of the Guaranteed Obligations.

9. <u>Reinstatement</u>. In the event that all or any portion of the Guaranteed Obligations are paid by the Issuer or any Guarantor, the obligations of any other Guarantor hereunder shall continue and remain in full force and effect or be reinstated, as the case may be, in the event that all or any part of such payment(s) are rescinded or recovered directly or indirectly from the Holder as a preference, fraudulent transfer or otherwise, and any such payments which are so rescinded or recovered shall constitute Guaranteed Obligations for all purposes hereunder.

Annex B-2

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10. <u>Discharge of Guarantee Upon Sale of the Guarantor</u>. If, in compliance with the terms and provisions of the Note, all of the capital stock of any Guarantor that is a Subsidiary of the Issuer or any of its successors in interest hereunder shall be sold or otherwise disposed of (including by merger or consolidation) to any Person (other than to the Issuer or to any other Guarantor), the Guarantee of such Guarantor or such successor in interest, as the case may be, hereunder shall automatically be discharged and released without any further action by any beneficiary or any other Person effective as of the time of such asset sale.

Annex B-3

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**SCHEDULE I** 

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|:---|:---|:---|:---|:---|
| Date | Current Outstanding<br>Principal Amount | Increase or Decrease<br>in Outstanding<br>Principal Amount | Resulting<br>Outstanding<br>Principal Amount | Notation Made By |

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Schedule I

## Exhibit 10.37

**Exhibit 10.37** 

**REPUBLIC AIRWAYS HOLDINGS INC.** 

**2025 EQUITY INCENTIVE PLAN** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. Purpose**. The purpose of the Republic Airways Holdings Inc. 2025 Equity Incentive Plan is to provide a means through which the Company and the other members of the Company Group may attract and retain key personnel and to provide a means whereby directors, officers, employees, consultants, and advisors of the Company and the other members of the Company Group can acquire and maintain an equity interest in the Company, or be paid incentive compensation measured by reference to the value of Common Stock, thereby strengthening their commitment to the welfare of the Company Group and aligning their interests with those of the Company's stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. Definitions**. The following definitions shall be applicable throughout the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "<u>Adjustment Event</u>" has the meaning given to such term in Section 10(a) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "<u>Affiliate</u>" means any Person that directly or indirectly controls, is controlled by, or is under common control with the Company. The term "control" (including, with correlative meaning, the terms "controlled by" and "under common control with"), as applied to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting or other securities, by contract, or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "<u>Applicable Law</u>" means each applicable law, rule, regulation, and requirement, including, but not limited to, each applicable U.S. federal, state, or local law, any rule or regulation of the applicable securities exchange or inter-dealer quotation system on which the securities of the Company may be listed or quoted and each applicable law, rule, or regulation of any other country or jurisdiction where Awards are granted under the Plan or Participants reside or provide services, as each such law, rule, and regulation shall be in effect from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "<u>Award</u>" means, individually or collectively, any Incentive Stock Option, Nonqualified Stock Option, Stock Appreciation Right, Restricted Stock, Restricted Stock Unit, and Other Equity-Based Award granted under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "<u>Award Agreement</u>" means the document or documents by which each Award is evidenced, which may be in written or electronic form.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "<u>Board</u>" means the Board of Directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "<u>Cause</u>" means, as to any Participant, unless the applicable Award Agreement states otherwise, (i) "Cause," as defined in any employment, severance, consulting, or other similar agreement between the Participant and the Service Recipient in effect at the time of such Termination or (ii) in the absence of any such employment, severance, consulting, or other similar agreement (or the absence of any definition of "Cause" contained therein), the Participant's (A) willful neglect in the performance of the Participant's duties for the Service Recipient or willful or repeated failure or refusal to perform such duties; (B) engagement in conduct in connection with the Participant's employment or service with the Service Recipient, which results in, or could

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reasonably be expected to result in, material harm to the business or reputation of the Service Recipient or any other member of the Company Group; (C) conviction of, or plea of guilty or no contest to, (I) any felony (or similar crime in any non-U.S. jurisdiction for Participant's outside the U.S.) or (II) any other crime that results in, or could reasonably be expected to result in, material harm to the business or reputation of the Service Recipient or any other member of the Company Group; (D) material violation of the written policies of the Service Recipient, including, but not limited to, those relating to sexual harassment, or those set forth in the manuals or statements of policy of the Service Recipient; (E) fraud, misappropriation, or embezzlement related to the Service Recipient or any other member of the Company Group; (F) act of personal dishonesty that involves personal profit in connection with the Participant's employment or service to the Service Recipient; or (G) engagement in any Detrimental Activity; *provided*, in any case, that a Participant's resignation after an event that would be grounds for a Termination for Cause will be treated as a Termination for Cause hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "<u>Change in Control</u>" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the acquisition (whether by purchase, merger, consolidation, combination or other similar transaction) by any Person of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of more than thirty percent (30%) (on a fully diluted basis) of either (A) the Outstanding Common Stock or (B) the Outstanding Company Voting Securities; *provided, however*, that for purposes of the Plan, the following acquisitions shall not constitute a Change in Control: (I) any acquisition by the Company or any Affiliate; (II) any acquisition by any employee benefit plan sponsored or maintained by the Company or any Affiliate; or (III) in respect of an Award held by a particular Participant, any acquisition by the Participant or any group of Persons including the Participant (or any entity controlled by the Participant or any group of Persons including the Participant);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) during any period of twelve (12) months, individuals who, at the beginning of such period, constitute the Board (the "<u>Incumbent Directors</u>") cease for any reason to constitute at least a majority of the members of the Board, provided that any person becoming a director subsequent to the Effective Date, whose election or nomination for election was approved by a vote of at least two-thirds (2/3) of the Incumbent Directors then on the Board (either by a specific vote or by approval of the proxy statement of the Company in which such person is named as a nominee for director, without written objection to such nomination) shall be an Incumbent Director; *provided, however*, that no individual initially elected or nominated as a director of the Company as a result of an actual or threatened election contest, as such terms are used in Rule 14a-12 of Regulation 14A promulgated under the Exchange Act, with respect to directors or as a result of any other actual or threatened solicitation of proxies or consents by or on behalf of any person other than the Board shall be deemed to be an Incumbent Director;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the consummation of a reorganization, recapitalization, merger, consolidation, or similar corporate transaction involving the Company that requires the approval of the Company's stockholders (a "<u>Business Combination</u>"), unless immediately following such Business Combination: more than seventy percent (70%) of the total voting power of (A) the entity resulting from such Business Combination (the "<u>Surviving</u> 

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 <u>Company</u>") or (B) if applicable, the ultimate parent entity that directly or indirectly has beneficial ownership of sufficient voting securities eligible to elect a majority of the board of directors (or the analogous governing body) of the Surviving Company, is represented by the Outstanding Company Voting Securities that were outstanding immediately prior to such Business Combination (or, if applicable, is represented by shares into which the Outstanding Company Voting Securities were converted pursuant to such Business Combination); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the sale, transfer, or other disposition of all or substantially all of the assets of the Company Group (taken as a whole) to any Person that is not an Affiliate of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "<u>Code</u>" means the Internal Revenue Code of 1986, as amended, and any successor thereto. Reference in the Plan to any section of the Code shall be deemed to include any regulations or other interpretative guidance under such section, and any amendments or successor provisions to such section, regulations or guidance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "<u>Committee</u>" means the Compensation Committee of the Board or any properly delegated subcommittee thereof or, if no such Compensation Committee or subcommittee thereof exists, the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "<u>Common Stock</u>" means the common stock of the Company, no par value per share (and any stock or other securities into which such Common Stock may be converted or into which it may be exchanged).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "<u>Company</u>" means Republic Airways Holdings Inc., a Delaware corporation, and any successor thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "<u>Company Group</u>" means, collectively, the Company and its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "<u>Date of Grant</u>" means the date on which the granting of an Award is authorized, or such other date as may be specified in such authorization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "<u>Designated Foreign Subsidiaries</u>" means all members of the Company Group that are organized under the laws of any jurisdiction other than the United States of America.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "<u>Detrimental Activity</u>" means any of the following: (i) unauthorized disclosure or use of any confidential or proprietary information of any member of the Company Group; (ii) any activity that would be grounds to terminate the Participant's employment or service with the Service Recipient for Cause; (iii) a breach by the Participant of any restrictive covenant by which such Participant is bound, including, without limitation, any covenant not to compete or not to solicit, in any agreement with any member of the Company Group; or (iv) the Participant's fraud or conduct contributing to any financial restatements or irregularities, in each case, as determined by the Committee in its sole discretion.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "<u>Disability</u>" means, as to any Participant, unless the applicable Award Agreement states otherwise, (i) "Disability," as defined in any employment, severance, consulting or other similar agreement between the Participant and the Service Recipient in effect at the time of Termination or (ii) in the absence of any such employment, severance, consulting or other similar agreement (or the absence of any definition of "Disability" contained therein), a condition entitling the Participant to receive benefits under a long-term disability plan of the Service Recipient or other member of the Company Group in which such Participant is eligible to participate, or, in the absence of such a plan, the complete and permanent inability of the Participant by reason of illness or accident to perform the duties of the position at which the Participant was employed or served when such disability commenced. Any determination of whether Disability exists in the absence of a long-term disability plan shall be made by the Company (or its designee) in its sole and absolute discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) "<u>Effective Date</u>" means [_], 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) "<u>Eligible Person</u>" means: any (i) individual employed by any member of the Company Group; *provided, however*, that no such U.S. employee covered by a collective bargaining agreement shall be an Eligible Person unless and to the extent that such eligibility is set forth in such collective bargaining agreement or in an agreement or instrument relating thereto; (ii) director of any member of the Company Group; or (iii) consultant or advisor to any member of the Company Group, or any other Person, in each case, who may be offered securities registrable pursuant to a registration statement on Form S-8 under the Securities Act (or, for consultants or advisors outside of the U.S. can be offered securities consistent with Applicable Law).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) "<u>Exchange Act</u>" means the Securities Exchange Act of 1934, as amended, and any successor thereto. Reference in the Plan to any section of (or rule promulgated under) the Exchange Act shall be deemed to include any rules, regulations or other interpretative guidance under such section or rule, and any amendments or successor provisions to such section, rules, regulations or guidance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) "<u>Exercise Price</u>" has the meaning given to such term in Section 7(b) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "<u>Fair Market Value</u>" means, as of any date, the fair market value of a share of Common Stock, as reasonably determined by the Company and consistently applied for purposes of the Plan, which may include, without limitation, the closing sales price on the trading day immediately prior to or on such date, or a trailing average of previous closing prices prior to such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) "<u>GAAP</u>" has the meaning given to such term in Section 7(d) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) "<u>Grant Date Fair Market Value</u>" means, as of a Date of Grant, (i) if the Common Stock is listed on a national securities exchange, the closing sales price of the Common Stock reported on the primary exchange on which the Common Stock is listed and traded on such date, or, if there are no such sales on that date, then on the last preceding date on which such sales were reported; (ii) if the Common Stock is not listed on any national securities exchange but is quoted in an inter-dealer quotation system on a last-sale basis, the average between the closing bid price and ask price reported on such date, or, if there is no such sale on that date, then on the last preceding date on which a sale was reported; or (iii) if the Common Stock is not listed on a national securities exchange or quoted in an inter-dealer quotation system on a last-sale basis, the amount determined by the Committee in good faith to be the fair market value of the Common Stock; *provided, however*, as to any Awards granted on or with a Date of Grant of the date of the pricing of the Company's initial public offering, "Grant Date Fair Market Value" shall be equal to the per share price at which the Common Stock is offered to the public in connection with such initial public offering.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) "<u>Incentive Stock Option</u>" means an Option which is designated by the Committee as an incentive stock option as described in Section 422 of the Code and otherwise meets the requirements set forth in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) "<u>Indemnifiable Person</u>" has the meaning given to such term in Section 4(e) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) "<u>Non-Employee Director</u>" means a member of the Board who is not an employee of any member of the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) "<u>Nonqualified Stock Option</u>" means an Option which is not designated by the Committee as an Incentive Stock Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) "<u>Option</u>" means an Award granted under Section 7 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) "<u>Option Period</u>" has the meaning given to such term in Section 7(c)(ii) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) "<u>Other Equity-Based Award</u>" means an Award that is not an Option, Restricted Stock, or Restricted Stock Unit, that is granted under Section 9 of the Plan and is (i) payable by delivery of Common Stock and/or (ii) measured by reference to the value of Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) "<u>Outstanding Common Stock</u>" means the then-outstanding shares of Common Stock, taking into account as outstanding for this purpose such Common Stock issuable upon the exercise of options or warrants, the conversion of convertible stock or debt, the exercise of any similar right to acquire such Common Stock, and the exercise or settlement of then-outstanding Awards (or similar awards under any prior stock or equity incentive plans maintained by the Company).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) "<u>Outstanding Company Voting Securities</u>" means the combined voting power of the then-outstanding voting securities of the Company entitled to vote generally in the election of directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) "<u>Participant</u>" means an Eligible Person who has been selected by the Committee to participate in the Plan and granted an Award pursuant to the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "<u>Performance Conditions</u>" means specific levels of performance of the Company (and/or one or more members of the Company Group, divisions or operational and/or business units, product lines, brands, business segments, administrative departments, or any combination of the foregoing) or the Participant, which may be determined in accordance with GAAP or on a non-GAAP basis, including, without limitation, the following measures: (i) net earnings, net income (before or after taxes), or consolidated net income; (ii) basic or diluted earnings per share (before or after taxes); (iii) net revenue or net revenue growth; (iv) gross revenue or gross revenue growth, gross profit or gross profit growth; (v) net operating profit (before or after taxes); (vi) return

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measures (including, but not limited to, return on investment, assets, capital, employed capital, invested capital, equity, or sales); (vii) cash flow measures (including, but not limited to, operating cash flow, free cash flow, or cash flow return on capital), which may be but are not required to be measured on a per share basis; (viii) actual or adjusted earnings before or after interest, taxes, depreciation, and/or amortization (including EBIT and EBITDA); (ix) gross or net operating margins; (x) productivity ratios; (xi) share price (including, but not limited to, growth measures and total stockholder return); (xii) expense targets or cost reduction goals, general and administrative expense savings; (xiii) operating effectiveness, including controllable completion factor, block hour utilization, and related metrics; (xiv) working capital targets; (xv) measures of economic value added or other 'value creation' metrics; (xvi) enterprise value; (xii) stockholder return; (xix) competitive market metrics; (xx) employee retention; (xxi) objective measures of personal targets, goals, or completion of projects (including, but not limited to, succession and hiring projects, completion of specific acquisitions, dispositions, reorganizations, or other corporate transactions or capital-raising transactions, expansions of specific business operations, and meeting divisional or project budgets); (xxii) comparisons of continuing operations to other operations; (xxiii) market share; (xxiv) cost of capital, debt leverage, year-end cash position, or book value; (xxv) strategic objectives; (xxvi) gross or net authorizations; (xxvii) backlog; or (xxviii) any combination of the foregoing. Any one or more of the aforementioned performance criteria may be stated as a percentage of another performance criteria, or used on an absolute or relative basis to measure the performance of one or more members of the Company Group as a whole or any divisions or operational and/or business units, product lines, brands, business segments, or administrative departments of the Company and/or one or more members of the Company Group or any combination thereof, as the Committee may deem appropriate, or any of the above performance criteria may be compared to the performance of a selected group of comparison companies, or a published or special index that the Committee, in its sole discretion, deems appropriate, or as compared to various stock market indices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) "<u>Permitted Transferee</u>" has the meaning given to such term in Section 12(b)(ii) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk) "<u>Person</u>" means any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act as in effect on the Effective Date).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll) "<u>Plan</u>" means this Republic Airways Holdings Inc. 2025 Equity Incentive Plan, as it may be amended and/or restated from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm) "<u>Plan Share Reserve</u>" has the meaning given to such term in Section 6(a) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn) "<u>Qualifying Director</u>" means a Person who is, with respect to actions intended to obtain an exemption from Section 16(b) of the Exchange Act pursuant to Rule 16b-3 under the Exchange Act, a "non-employee director" within the meaning of Rule 16b-3 under the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(oo) "<u>Restricted Period</u>" means the period of time determined by the Committee during which an Award is subject to restrictions, including vesting conditions.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(pp) "<u>Restricted Stock</u>" means Common Stock, subject to certain specified restrictions (which may include, without limitation, a requirement that the Participant remain continuously employed or provide continuous services for a specified period of time), granted under Section 8 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(qq) "<u>Restricted Stock Unit</u>" means an unfunded and unsecured promise to deliver shares of Common Stock, cash, other securities or other property, subject to certain restrictions (which may include, without limitation, a requirement that the Participant remain continuously employed or provide continuous services for a specified period of time), granted under Section 8 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(rr) "<u>SAR Base Price</u>" means, as to any Stock Appreciation Right, the price per share of Common Stock designated as the base value above which appreciation in value is measured.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ss) "<u>Securities Act</u>" means the Securities Act of 1933, as amended, and any successor thereto. Reference in the Plan to any section of (or rule promulgated under) the Securities Act shall be deemed to include any rules, regulations, or other interpretative guidance under such section or rule, and any amendments or successor provisions to such section, rules, regulations, or guidance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(tt) "<u>Service Recipient</u>" means, with respect to a Participant holding a given Award, the member of the Company Group by which the original recipient of such Award is, or following a Termination was most recently, principally employed or to which such original recipient provides, or following a Termination was most recently providing, services, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(uu) "<u>Stock Appreciation Right</u>" or "<u>SAR</u>" means an Other-Equity Based Award designated in an applicable Award Agreement as a stock appreciation right.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vv) "<u>Sub-Plans</u>" means any sub-plan to the Plan that has been adopted by the Board or the Committee for the purpose of permitting or facilitating the offering of Awards to employees of certain Designated Foreign Subsidiaries or otherwise outside the jurisdiction of the United States of America, with each such Sub-Plan designed to comply with Applicable Law in such foreign jurisdictions. Although any Sub-Plan may be designated a separate and independent plan from the Plan in order to comply with Applicable Law, the Plan Share Reserve and the other limits specified in Section 6(a) of the Plan shall apply in the aggregate to the Plan and any Sub-Plan adopted hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ww) "<u>Subsidiary</u>" means, with respect to any specified Person:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any corporation, association, or other business entity of which more than 50% of the total voting power of shares of such entity's voting securities (without regard to the occurrence of any contingency and after giving effect to any voting agreement or stockholders' agreement that effectively transfers voting power) is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person (or a combination thereof) and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any partnership (or any comparable foreign entity) (A) the sole general partner (or functional equivalent thereof) or the managing general partner of which is such Person or Subsidiary of such Person or (B) the only general partners (or functional equivalents thereof) of which are that Person or one or more Subsidiaries of that Person (or any combination thereof).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xx) "<u>Substitute Awards</u>" has the meaning given to such term in Section 6(e) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(yy) "<u>Termination</u>" means the termination of a Participant's employment or service, as applicable, with the Service Recipient for any reason (including death or Disability).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. Effective Date; Duration**. The Plan shall be effective as of the Effective Date. The Plan will continue in effect until terminated under Section 11; *provided, however*, that such termination shall not affect Awards then outstanding, and the terms and conditions of the Plan shall continue to apply to such Awards. Notwithstanding the foregoing (a) no Incentive Stock Options may be granted after tenth (10<sup>th</sup>) anniversary of the Effective Date (or the date of stockholder approval of the Plan, if earlier) and (ii) Section 6(a) relating to automatic increase in the Plan Share Reserve will no longer apply following the tenth (10<sup>th</sup>) anniversary of the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. Administration**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>General</u>. The Committee shall administer the Plan. To the extent required to comply with the provisions of Rule 16b-3 promulgated under the Exchange Act (if the Board is not acting as the Committee under the Plan) it is intended that each member of the Committee shall, at the time such member takes any action with respect to an Award under the Plan that is intended to qualify for the exemptions provided by Rule 16b-3 promulgated under the Exchange Act be a Qualifying Director. However, the fact that a Committee member shall fail to qualify as a Qualifying Director shall not invalidate any Award granted by the Committee that is otherwise validly granted under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Committee Authority</u>. Subject to the provisions of the Plan and Applicable Law, the Committee shall have the sole and plenary authority, in addition to other express powers and authorizations conferred on the Committee by the Plan, to (i) designate Participants; (ii) determine the type or types of Awards to be granted to a Participant; (iii) determine the number of shares of Common Stock to be covered by, or with respect to which payments, rights, or other matters are to be calculated in connection with, Awards; (iv) determine the terms and conditions of any Award; (v) determine whether, to what extent, and under what circumstances Awards may be settled in, or exercised for, cash, shares of Common Stock, other securities, other Awards, or other property, or canceled, forfeited, or suspended and the method or methods by which Awards may be settled, exercised, canceled, forfeited, or suspended; (vi) determine whether, to what extent, and under what circumstances the delivery of cash, shares of Common Stock, other securities, other Awards, or other property and other amounts payable with respect to an Award shall be deferred either automatically or at the election of the Participant or of the Committee; (vii) interpret, administer, reconcile any inconsistency in, correct any defect in, and/or supply any omission in the Plan and any instrument or agreement relating to, or Award granted under, the Plan; (viii) establish, amend, suspend, or waive any rules and regulations and appoint such agents as the Committee shall deem appropriate for the proper administration of the Plan; (ix) adopt Sub-Plans; and (x) make any other determination and take any other action that the Committee deems necessary or desirable for the administration of the Plan.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Delegation</u>. Except to the extent prohibited by Applicable Law, the Committee may allocate all or any portion of its responsibilities and powers to any one or more of its members and may delegate all or any part of its responsibilities and powers to any Person or Persons selected by it. Any such allocation or delegation may be revoked by the Committee at any time. Without limiting the generality of the foregoing, the Committee may delegate to one or more officers of any member of the Company Group, the authority to act on behalf of the Committee with respect to any matter, right, obligation, or election which is the responsibility of, or which is allocated to, the Committee herein, and which may be so delegated in accordance with Applicable Law, except with respect to grants of Awards to Persons (i) who are Non-Employee Directors or (ii) who are subject to Section 16 of the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Finality of Decisions</u>. Unless otherwise expressly provided in the Plan, all designations, determinations, interpretations, and other decisions under or with respect to the Plan, any Award, or any Award Agreement shall be within the sole discretion of the Committee, may be made at any time and shall be final, conclusive and binding upon all Persons, including, without limitation, any member of the Company Group, any Participant, any holder or beneficiary of any Award, and any stockholder of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Indemnification</u>. No member of the Board or the Committee or any employee or agent of any member of the Company Group (each such Person, an "<u>Indemnifiable Person</u>") shall be liable for any action taken or omitted to be taken or any determination made with respect to the Plan or any Award hereunder (unless constituting fraud or a willful criminal act or omission). Each Indemnifiable Person shall be indemnified and held harmless by the Company against and from any loss, cost, liability, or expense (including attorneys' fees) that may be imposed upon or incurred by such Indemnifiable Person in connection with or resulting from any action, suit, or proceeding to which such Indemnifiable Person may be a party or in which such Indemnifiable Person may be involved by reason of any action taken or omitted to be taken or determination made with respect to the Plan or any Award hereunder and against and from any and all amounts paid by such Indemnifiable Person with the Company's approval, in settlement thereof, or paid by such Indemnifiable Person in satisfaction of any judgment in any such action, suit, or proceeding against such Indemnifiable Person, and the Company shall advance to such Indemnifiable Person any such expenses promptly upon written request (which request shall include an undertaking by the Indemnifiable Person to repay the amount of such advance if it shall ultimately be determined, as provided below, that the Indemnifiable Person is not entitled to be indemnified); *provided*, that the Company shall have the right, at its own expense, to assume and defend any such action, suit, or proceeding and once the Company gives notice of its intent to assume the defense, the Company shall have sole control over such defense with counsel of the Company's choice. The foregoing right of indemnification shall not be available to an Indemnifiable Person to the extent that a final judgment or other final adjudication (in either case not subject to further appeal) binding upon such Indemnifiable Person determines that the acts, omissions, or determinations of such Indemnifiable Person giving rise to the indemnification claim resulted from such Indemnifiable Person's fraud or willful criminal act or omission or that such right of indemnification is otherwise prohibited by Applicable Law or by the organizational documents of any member of the Company Group. The foregoing right of indemnification shall not be exclusive of or otherwise supersede

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any other rights of indemnification to which such Indemnifiable Persons may be entitled under (i) the organizational documents of any member of the Company Group, (ii) pursuant to Applicable Law, (iii) an individual indemnification agreement or contract or otherwise, or (iv) any other power that the Company may have to indemnify such Indemnifiable Persons or hold such Indemnifiable Persons harmless.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Board Authority</u>. Notwithstanding anything to the contrary contained in the Plan, the Board may, in its sole discretion, at any time and from time to time, grant Awards and administer the Plan with respect to such Awards. Any such actions by the Board shall be subject to the applicable rules of the securities exchange or inter-dealer quotation system on which the Common Stock is listed or quoted. In any such case, the Board shall have all the authority granted to the Committee under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5. Grants of Awards; Eligibility**. The Committee may, from time to time, grant Awards to one or more Eligible Persons. Participation in the Plan shall be limited to Eligible Persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6. Shares Subject to the Plan; Limitations**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Share Reserve</u>. Subject to Section 10 of the Plan, [_] shares of Common Stock (the "<u>Plan Share Reserve</u>") shall be available for Awards under the Plan. Each Award granted under the Plan will reduce the Plan Share Reserve by the number of shares of Common Stock underlying the Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Additional Limits</u>. Subject to Section 10 of the Plan, (i) no more than [_] shares of Common Stock may be issued in the aggregate pursuant to the exercise of Incentive Stock Options granted under the Plan; and (ii) during a single fiscal year, the number of Awards eligible to be made to any Non-Employee Director, taken together with any cash fees paid to such Non-Employee Director during such fiscal year, shall not exceed a total value of $1,000,000 (calculating the value of any such Awards based on the grant date fair value of such Awards for financial reporting purposes).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Share Counting</u>. Other than with respect to Substitute Awards, to the extent that an Award expires or is canceled, forfeited, or terminated without issuance to the Participant of the full number of shares of Common Stock to which the Award related, the unissued shares underlying such Award will be returned to the Plan Share Reserve and again be available for grant under the Plan. Shares of Common Stock shall be deemed to have been issued in settlement of Awards if the Fair Market Value equivalent of such shares is paid in cash; *provided, however*, that no shares shall be deemed to have been issued in settlement of a SAR, Other Equity-Based Award, or Restricted Stock Unit that only provides for settlement in, and settles only in, cash. Shares of Common Stock withheld in payment of the Exercise Price, SAR Base Price, or taxes relating to an Award shall constitute shares of Common Stock issued to the Participant and shall reduce the Plan Share Reserve.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Source of Shares</u>. Shares of Common Stock issued by the Company in settlement of Awards may be authorized and unissued shares, shares of Common Stock held in the treasury of the Company, shares of Common Stock purchased on the open market or by private purchase or a combination of the foregoing.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Substitute Awards</u>. Awards may, in the sole discretion of the Committee, be granted under the Plan in assumption of, or in substitution for, outstanding awards previously granted by an entity directly or indirectly acquired by the Company or with which the Company combines ("<u>Substitute Awards</u>"). Substitute Awards shall not be counted against the Plan Share Reserve; *provided*, that Substitute Awards issued in connection with the assumption of, or in substitution for, outstanding options intended to qualify as "incentive stock options" within the meaning of Section 422 of the Code shall be counted against the aggregate number of shares of Common Stock available for Awards of Incentive Stock Options under the Plan. Subject to applicable stock exchange requirements, available shares under a stockholder-approved plan of an entity directly or indirectly acquired by the Company or with which the Company combines (as appropriately adjusted to reflect the acquisition or combination transaction) may be used for Awards under the Plan and shall not reduce the number of shares of Common Stock available for issuance under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7. Options**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>General</u>. Each Option granted under the Plan shall be evidenced by an Award Agreement, which agreement need not be the same for each Participant. Each Option so granted shall be subject to the conditions set forth in this Section 7, and to such other conditions not inconsistent with the Plan as may be reflected in the applicable Award Agreement. All Options granted under the Plan shall be Nonqualified Stock Options unless the applicable Award Agreement expressly states that the Option is intended to be an Incentive Stock Option. Incentive Stock Options may be granted only to Eligible Persons who are employees of a member of the Company Group. No Option may be treated as an Incentive Stock Option unless the Plan has been approved by the stockholders of the Company in a manner intended to comply with the stockholder approval requirements of Section 422(b)(1) of the Code. Any Option intended to be an Incentive Stock Option which does not qualify as an Incentive Stock Option for any reason, including by reason of grant to an Eligible Person who is not an employee or the Plan not being properly approved by the stockholders of the Company under Section 422(b)(1) of the Code, then, to the extent of such non-qualification, such Option or portion thereof shall be regarded as a Nonqualified Stock Option appropriately granted under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Exercise Price</u>. Except as otherwise provided by the Committee in the case of Substitute Awards, the exercise price ("<u>Exercise Price</u>") per share of Common Stock for each Option shall not be less than one hundred percent (100%) of the Grant Date Fair Market Value of such share; *provided, however*, that in the case of an Incentive Stock Option granted to an employee who, at the time of the grant of such Option, owns stock representing more than ten percent (10%) of the voting power of all classes of stock of any member of the Company Group, the Exercise Price per share shall be no less than one hundred ten percent (110%) of the Grant Date Fair Market Value per share.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Vesting and Expiration; Termination</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Options shall vest and become exercisable in such manner and on such date or dates or upon such event or events as determined by the Committee, including, without limitation, satisfaction of Performance Conditions; *provided, however*, that notwithstanding any such vesting dates or events, the Committee may in its sole discretion accelerate the vesting of any Options at any time and for any reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Options shall expire upon a date determined by the Committee, not to exceed ten (10) years from the Date of Grant (the "<u>Option Period</u>"); *provided*, that if the Option Period (other than in the case of an Incentive Stock Option) would expire on a date when (A) trading in the shares of Common Stock is prohibited by the Company's insider trading policy (or Company-imposed "blackout period"), and (B) the Fair Market Value exceeds the Exercise Price per share on such expiration date, then the Option Period shall be automatically extended until the thirtieth (30<sup>th</sup>) day following the expiration of such prohibition. Notwithstanding the foregoing, in no event shall the Option Period exceed five (5) years from the Date of Grant in the case of an Incentive Stock Option granted to a Participant who on the Date of Grant owns stock representing more than ten percent (10%) of the voting power of all classes of stock of any member of the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Unless otherwise provided by the Committee, whether in an Award Agreement or otherwise, in the event of: (A) a Participant's Termination by the Service Recipient for Cause, all outstanding Options granted to such Participant shall immediately terminate and expire; (B) a Participant's Termination due to death or Disability, each outstanding unvested Option granted to such Participant shall immediately terminate and expire, and each outstanding vested Option shall remain exercisable for one (1) year thereafter (but in no event beyond the expiration of the Option Period); and (C) a Participant's Termination for any other reason, each outstanding unvested Option granted to such Participant shall immediately terminate and expire, and each outstanding vested Option shall remain exercisable for ninety (90) days thereafter (but in no event beyond the expiration of the Option Period).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Method of Exercise and Form of Payment</u>. No shares of Common Stock shall be issued pursuant to any exercise of an Option until payment in full of the Exercise Price therefor is received by the Company and the Participant has paid to the Company an amount equal to any Federal, state, local and non-U.S. income, employment, and any other applicable taxes that are required to be withheld under Applicable Law, as determined in accordance with Section 12(d) hereof. Options which have become exercisable may be exercised by delivery of written or electronic notice (or telephonic instructions to the extent provided by the Committee) of exercise to the Company (or any third-party administrator, as applicable) in accordance with the terms of the Option and any other exercise procedure established by the Committee, accompanied by payment of the Exercise Price. Unless otherwise provided by the Committee, whether in an Award Agreement or otherwise, the Exercise Price shall be payable: (i) in cash, check, cash equivalent, and/or shares of Common Stock valued at the Fair Market Value at the time the Option is exercised (including, pursuant to procedures approved by the Committee, by means of attestation of ownership of a sufficient number of shares of Common Stock in lieu of actual issuance of such shares to the Company); *provided*, that such shares of Common Stock are not subject to any pledge

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or other security interest and have been held by the Participant for at least six (6) months (or such other period as established from time to time by the Committee in order to avoid adverse accounting treatment applying generally accepted accounting principles ("<u>GAAP</u>")) or (ii) by such other method as the Committee may permit, in its sole discretion, including, without limitation (A) in other property having a fair market value on the date of exercise equal to the Exercise Price; (B) if there is a public market for the shares of Common Stock at such time, by means of a broker-assisted "cashless exercise" pursuant to which the Company is delivered (including telephonically to the extent permitted by the Committee) a copy of irrevocable instructions to a stockbroker to sell the shares of Common Stock otherwise issuable upon the exercise of the Option and to deliver promptly to the Company an amount equal to the Exercise Price; or (C) a "net exercise" procedure effected by withholding the minimum number of shares of Common Stock otherwise issuable in respect of an Option that are needed to pay the Exercise Price and any Federal, state, local and non-U.S. income, employment, and any other applicable taxes that are required to be withheld under Applicable Law, as determined in accordance with Section 12(d) hereof. Unless otherwise determined by the Committee, any fractional shares of Common Stock shall be settled in cash.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Notification upon Disqualifying Disposition of an Incentive Stock Option</u>. Each Participant awarded an Incentive Stock Option under the Plan shall notify the Company in writing immediately after the date the Participant makes a disqualifying disposition of any shares of Common Stock acquired pursuant to the exercise of such Incentive Stock Option. A disqualifying disposition is any disposition (including, without limitation, any sale) of such shares of Common Stock before the later of (i) the date that is two (2) years after the Date of Grant of the Incentive Stock Option or (ii) the date that is one (1) year after the date of exercise of the Incentive Stock Option. The Company may, if determined by the Committee and in accordance with procedures established by the Committee, retain possession, as agent for the applicable Participant, of any shares of Common Stock acquired pursuant to the exercise of an Incentive Stock Option until the end of the period described in the preceding sentence, subject to complying with any instructions from such Participant as to the sale of such shares of Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Compliance With</u> <u>Laws</u><u>, etc</u>. Notwithstanding the foregoing, in no event shall a Participant be permitted to exercise an Option in a manner which the Committee determines would violate the Sarbanes-Oxley Act of 2002, as it may be amended from time to time, or any other Applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8. Restricted Stock and Restricted Stock Units**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>General</u>. Each grant of Restricted Stock and Restricted Stock Units shall be evidenced by an Award Agreement. Each award of Restricted Stock and each Restricted Stock Unit so granted shall be subject to the conditions set forth in this Section 8, and to such other conditions not inconsistent with the Plan as may be reflected in the applicable Award Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Stock Certificates and Book-Entry; Escrow or Similar Arrangement</u>. Upon the grant of Restricted Stock, the Committee shall cause a stock certificate registered in the name of the Participant to be issued or shall cause share(s) of Common Stock to be registered in the name of the Participant and held in book-entry form subject to the Company's directions and, if the Committee determines that the Restricted Stock shall be held by the Company or in escrow rather than issued to the Participant pending the release of the applicable restrictions, the Committee may

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require the Participant to additionally execute and deliver to the Company (i) an escrow agreement satisfactory to the Committee, if applicable and (ii) the appropriate stock power (endorsed in blank) with respect to the Restricted Stock covered by such agreement. Subject to the restrictions set forth in this Section 8, Section 12(b) of the Plan and the applicable Award Agreement, a Participant generally shall have the rights and privileges of a stockholder as to shares of Restricted Stock, including, without limitation, the right to vote such Restricted Stock. To the extent shares of Restricted Stock are forfeited, any stock certificates issued to the Participant evidencing such shares shall be returned to the Company, and all rights of the Participant to such shares and as a stockholder with respect thereto shall terminate without further obligation on the part of the Company. A Participant shall have no rights or privileges as a stockholder as to Restricted Stock Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Vesting; Termination</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Restricted Stock and Restricted Stock Units shall vest, and any applicable Restricted Period shall lapse, in such manner and on such date or dates or upon such event or events as determined by the Committee, including, without limitation, satisfaction of Performance Conditions; *provided, however*, that, notwithstanding any such dates or events, the Committee may, in its sole discretion, accelerate the vesting of any Restricted Stock or Restricted Stock Unit or the lapsing of any applicable Restricted Period at any time and for any reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Unless otherwise provided by the Committee, whether in an Award Agreement or otherwise, in the event of a Participant's Termination for any reason prior to the time that such Participant's Restricted Stock or Restricted Stock Units, as applicable, have vested, (A) all vesting with respect to such Participant's Restricted Stock or Restricted Stock Units, as applicable, shall cease and (B) unvested shares of Restricted Stock and unvested Restricted Stock Units, as applicable, shall be forfeited to the Company by the Participant for no consideration as of the date of such Termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Issuance of Restricted Stock and Settlement of Restricted Stock Units</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Upon the expiration of the Restricted Period with respect to any shares of Restricted Stock, the restrictions set forth in the applicable Award Agreement shall be of no further force or effect with respect to such shares, except as set forth in the applicable Award Agreement. If an escrow arrangement is used, upon such expiration, the Company shall issue to the Participant, or the Participant's beneficiary, without charge, the stock certificate (or, if applicable, a notice evidencing a book-entry notation) evidencing the shares of Restricted Stock which have not then been forfeited and with respect to which the Restricted Period has expired (rounded down to the nearest full share).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Unless otherwise provided by the Committee in an Award Agreement or otherwise, upon the expiration of the Restricted Period with respect to any outstanding Restricted Stock Units, the Company shall issue to the Participant or the Participant's beneficiary, without charge, one (1) share of Common Stock (or other securities or other property, as applicable) for each such outstanding Restricted Stock Unit; *provided, however*, that the Committee may, in its sole discretion, elect to (A) pay cash or part cash

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and part shares of Common Stock in lieu of issuing only shares of Common Stock in respect of such Restricted Stock Units or (B) defer the issuance of shares of Common Stock (or cash or part cash and part shares of Common Stock, as the case may be) beyond the expiration of the Restricted Period if such extension would not cause adverse tax consequences under Section 409A of the Code. If a cash payment is made in lieu of issuing shares of Common Stock in respect of such Restricted Stock Units, the amount of such payment shall be equal to the Fair Market Value per share of the Common Stock as of the date on which the Restricted Period lapsed with respect to such Restricted Stock Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Legends on Restricted Stock</u>. Each certificate, if any, or book entry representing Restricted Stock awarded under the Plan, if any, shall bear a legend or book entry notation substantially in the form of the following, in addition to any other information the Company deems appropriate, until the lapse of all restrictions with respect to such shares of Common Stock:

TRANSFER OF THIS CERTIFICATE AND THE SHARES REPRESENTED HEREBY IS RESTRICTED PURSUANT TO THE TERMS OF THE REPUBLIC AIRWAYS HOLDINGS INC. 2025 STOCK PLAN AND A RESTRICTED STOCK AWARD AGREEMENT BETWEEN REPUBLIC AIRWAYS HOLDINGS INC. AND THE PARTICIPANT. A COPY OF SUCH PLAN AND AWARD AGREEMENT IS ON FILE AT THE PRINCIPAL EXECUTIVE OFFICES OF REPUBLIC AIRWAYS HOLDINGS INC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9. Other Equity-Based Awards**. The Committee may grant Other Equity-Based Awards under the Plan to Eligible Persons, alone or in tandem with other Awards, in such amounts and dependent on such conditions as the Committee shall from time to time in its sole discretion determine, including, without limitation, satisfaction of Performance Conditions. Each Other Equity-Based Award granted under the Plan shall be evidenced by an Award Agreement and shall be subject to such conditions not inconsistent with the Plan as may be reflected in the applicable Award Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10. Changes in Capital Structure and Similar Events**. Notwithstanding any other provision in the Plan to the contrary, the following provisions shall apply to all Awards granted hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>General</u>. In the event of (i) any dividend (other than regular cash dividends) or other distribution (whether in the form of cash, shares of Common Stock, other securities, or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, split-off, spin-off, combination, repurchase, or exchange of shares of Common Stock or other securities of the Company, issuance of warrants or other rights to acquire shares of Common Stock or other securities of the Company, or other similar corporate transaction or event that affects the shares of Common Stock (including a Change in Control) or (ii) unusual or nonrecurring events affecting the Company, including changes in applicable rules, rulings, regulations or other requirements, that the Committee determines, in its sole discretion, could result in substantial dilution or enlargement of the rights intended to be granted to, or available for, Participants (any event in clause (i) or (ii), an "<u>Adjustment Event</u>"), the Committee shall, in respect of any such Adjustment Event, make such proportionate substitution or adjustment, if any, as it deems equitable, to any or all of (A) the Plan Share Reserve, or any other limit applicable under the Plan

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with respect to the number of Awards which may be granted hereunder; (B) the number of shares of Common Stock or other securities of the Company (or number and kind of other securities or other property) which may be issued in respect of Awards or with respect to which Awards may be granted under the Plan or any Sub-Plan; and (C) the terms of any outstanding Award, including, without limitation, (I) the number of shares of Common Stock or other securities of the Company (or number and kind of other securities or other property) subject to outstanding Awards or to which outstanding Awards relate; (II) the Exercise Price or SAR Base Price with respect to any Option or SAR, as applicable, or any amount payable as a condition of issuance of shares of Common Stock (in the case of any other Award); or (III) any applicable performance measures; *provided*, that in the case of any "equity restructuring" (within the meaning of the Financial Accounting Standards Board Accounting Standards Codification Topic 718 (or any successor pronouncement thereto)), the Committee shall make an equitable or proportionate adjustment to outstanding Awards to reflect such equity restructuring.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Change in Control</u>. Without limiting the foregoing, in connection with any Adjustment Event that is a Change in Control, the Committee may, in its sole discretion, provide for any one or more of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) substitution or assumption of, acceleration of the vesting of, exercisability of, or lapse of restrictions on, any one or more outstanding Awards and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) cancellation of any one or more outstanding Awards and payment to the holders of such Awards that are vested as of such cancellation (including, without limitation, any Awards that would vest as a result of the occurrence of such event but for such cancellation or for which vesting is accelerated by the Committee in connection with such event pursuant to clause (i) above), the value of such Awards, if any, as determined by the Committee (which value, if applicable, may be based upon the price per share of Common Stock received or to be received by other stockholders of the Company in such event), including, without limitation, in the case of an outstanding Option or SAR, a cash payment in an amount equal to the excess, if any, of the Fair Market Value (as of a date specified by the Committee) of the shares of Common Stock subject to such Option or SAR over the aggregate Exercise Price or SAR Base Price of such Option or SAR (it being understood that, in such event, any Option or SAR having a per share Exercise Price or SAR Base Price equal to, or in excess of, the Fair Market Value of a share of Common Stock subject thereto may be canceled and terminated without any payment or consideration therefor).

For purposes of clause (i) above, an award will be considered granted in substitution of an Award if it has an equivalent value (as determined consistent with clause (ii) above) with the original Award, whether designated in securities of the acquiror in such Change in Control transaction (or an Affiliate thereof), or in cash or other property (including in the same consideration that other stockholders of the Company receive in connection with such Change in Control transaction), and retains the vesting schedule applicable to the original Award.

Payments to holders pursuant to clause (ii) above shall be made in cash or, in the sole discretion of the Committee, in the form of such other consideration necessary for a Participant to receive property, cash, or securities (or combination thereof) as such Participant would have been entitled to receive upon the occurrence of the transaction if the Participant had been, immediately prior to such transaction, the holder of the number of shares of Common Stock covered by the Award at such time (less any applicable Exercise Price or SAR Base Price).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Other Requirements</u>. Prior to any payment or adjustment contemplated under this Section 10, the Committee may require a Participant to (i) represent and warrant as to the unencumbered title to the Participant's Awards; (ii) bear such Participant's pro rata share of any post-closing indemnity obligations, and be subject to the same post-closing purchase price adjustments, escrow terms, offset rights, holdback terms, and similar conditions as the other holders of Common Stock, subject to any limitations or reductions as may be necessary to comply with Section 409A of the Code; and (iii) deliver customary transfer documentation as reasonably determined by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Fractional Shares</u>. Unless otherwise determined by the Committee, any adjustment provided under this Section 10 may provide for the elimination of any fractional share that might otherwise become subject to an Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Binding Effect</u>. Any adjustment, substitution, determination of value or other action taken by the Committee under this Section 10 shall be conclusive and binding for all purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11. Amendments and Termination**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Amendment and Termination of the Plan</u>. The Board may amend, alter, suspend, discontinue, or terminate the Plan or any portion thereof at any time; *provided*, that no such amendment, alteration, suspension, discontinuance, or termination shall be made without stockholder approval if (i) such approval is required under Applicable Law; (ii) it would materially increase the number of securities which may be issued under the Plan (except for increases pursuant to Section 6 or 10 of the Plan); or (iii) it would materially modify the requirements for participation in the Plan; *provided, further*, that any such amendment, alteration, suspension, discontinuance, or termination that would materially and adversely affect the rights of any Participant or any holder or beneficiary of any Award theretofore granted shall not to that extent be effective without the consent of the affected Participant, holder or beneficiary. Notwithstanding the foregoing, no amendment shall be made to Section 11(c) of the Plan without stockholder approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Amendment of Award Agreements</u>. The Committee may, to the extent consistent with the terms of the Plan and any applicable Award Agreement, waive any conditions or rights under, amend any terms of, or alter, suspend, discontinue, cancel, or terminate, any Award theretofore granted or the associated Award Agreement, prospectively or retroactively (including after a Participant's Termination); *provided*, that, other than pursuant to Section 10, any such waiver, amendment, alteration, suspension, discontinuance, cancellation, or termination that would materially and adversely affect the rights of any Participant with respect to any Award theretofore granted shall not to that extent be effective without the consent of the affected Participant.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>No Repricing</u>. Notwithstanding anything in the Plan to the contrary, without stockholder approval, except as otherwise permitted under Section 10 of the Plan, (i) no amendment or modification may reduce the Exercise Price of any Option or the SAR Base Price of any SAR; (ii) the Committee may not cancel any outstanding Option or SAR and replace it with a new Option or SAR (with a lower Exercise Price or SAR Base Price, as the case may be) or other Award or cash payment that is greater than the intrinsic value (if any) of the cancelled Option or SAR; and (iii) the Committee may not take any other action which is considered a "repricing" for purposes of the stockholder approval rules of any securities exchange or inter-dealer quotation system on which the securities of the Company are listed or quoted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12. General**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Award Agreements</u>. Each Award under the Plan shall be evidenced by an Award Agreement, which shall be delivered to the Participant to whom such Award was granted and shall specify the terms and conditions of the Award and any rules applicable thereto, including, without limitation, the effect on such Award of the death, Disability, or Termination of a Participant, or of such other events as may be determined by the Committee. For purposes of the Plan, an Award Agreement may be in any such form (written or electronic) as determined by the Committee (including, without limitation, a Board or Committee resolution, an employment agreement, a notice, a certificate or a letter) evidencing the Award. The Committee need not require an Award Agreement to be signed by the Participant or a duly authorized representative of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Nontransferability</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Each Award shall be exercisable only by such Participant to whom such Award was granted during the Participant's lifetime, or, if permissible under Applicable Law, by the Participant's legal guardian or representative. No Award may be assigned, alienated, pledged, attached, sold, or otherwise transferred or encumbered by a Participant (unless such transfer is specifically required pursuant to a domestic relations order or by Applicable Law) other than by will or by the laws of descent and distribution and any such purported assignment, alienation, pledge, attachment, sale, transfer, or encumbrance shall be void and unenforceable against any member of the Company Group; *provided*, that the designation of a beneficiary shall not constitute an assignment, alienation, pledge, attachment, sale, transfer, or encumbrance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Notwithstanding the foregoing, the Committee may, in its sole discretion, permit Awards (other than Incentive Stock Options) to be transferred by a Participant, without consideration, subject to such rules as the Committee may adopt consistent with any applicable Award Agreement to preserve the purposes of the Plan, to any person who is a "family member" of the Participant, as such term is used in the instructions to Form S-8 under the Securities Act or any successor form of registration statement promulgated by the Securities and Exchange Commission (a "<u>Permitted Transferee</u>"); *provided*, that the Participant gives the Committee advance written notice describing the terms and conditions of the proposed transfer and the Committee notifies the Participant in writing that such a transfer would comply with the requirements of the Plan.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The terms of any Award transferred in accordance with clause (ii) above shall apply to the Permitted Transferee and any reference in the Plan, or in any applicable Award Agreement, to a Participant shall be deemed to refer to the Permitted Transferee, except that (A) Permitted Transferees shall not be entitled to transfer any Award, other than by will or the laws of descent and distribution; (B) Permitted Transferees shall not be entitled to exercise any transferred Option unless there shall be in effect a registration statement on an appropriate form covering the shares of Common Stock to be acquired pursuant to the exercise of such Option if the Committee determines, consistent with any applicable Award Agreement, that such a registration statement is necessary or appropriate; (C) neither the Committee nor the Company shall be required to provide any notice to a Permitted Transferee, whether or not such notice is or would otherwise have been required to be given to the Participant under the Plan or otherwise; and (D) the consequences of a Participant's Termination under the terms of the Plan and the applicable Award Agreement shall continue to be applied with respect to the Participant, including, without limitation, that an Option shall be exercisable by the Permitted Transferee only to the extent, and for the periods, specified in the Plan and the applicable Award Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Dividends and Dividend Equivalents</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Committee may, in its sole discretion, provide a Participant as part of an Award with dividends, dividend equivalents, or similar payments in respect of Awards, payable in cash, shares of Common Stock, other securities, other Awards, or other property, on a current or deferred basis, on such terms and conditions as may be determined by the Committee in its sole discretion, including, without limitation, payment directly to the Participant, withholding of such amounts by the Company subject to vesting of the Award, or reinvestment in additional shares of Common Stock, Restricted Stock or other Awards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Without limiting the foregoing, unless otherwise provided in the Award Agreement, any dividend otherwise payable in respect of any share of Restricted Stock that remains subject to vesting conditions at the time of payment of such dividend shall be retained by the Company and remain subject to the same vesting conditions as the share of Restricted Stock to which the dividend relates and shall be delivered (without interest) to the Participant within fifteen (15) days following the date on which such restrictions on such Restricted Stock lapse (and the right to any such accumulated dividends shall be forfeited upon the forfeiture of the Restricted Stock to which such dividends relate).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) To the extent provided in an Award Agreement, the holder of outstanding Restricted Stock Units shall be entitled to be credited with dividend equivalent payments (upon the payment by the Company of dividends on shares of Common Stock) either in cash or, in the sole discretion of the Committee, in additional Restricted Stock Units, with the underlying shares of Common Stock having a Fair Market Value equal to the amount of such dividends (and interest may, in the sole discretion of the Committee, be credited on the amount of cash dividend equivalents at a rate and subject to such terms as determined by the Committee), which accumulated dividend equivalents (and interest thereon, if applicable) shall be payable at the same time as the underlying Restricted Stock Units are settled following the date on which the Restricted Period lapses with respect to such Restricted Stock Units, and if such Restricted Stock Units are forfeited, the Participant shall have no right to such dividend equivalent payments (or interest thereon, if applicable).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Tax Withholding</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) A Participant shall be required to pay to the Company or one or more of its Subsidiaries, as applicable, an amount in cash (by check or wire transfer) equal to the aggregate amount of any income, employment, and/or other applicable taxes that are required to be withheld under Applicable Law in respect of an Award. Alternatively, the Company or any of its Subsidiaries may elect, in its sole discretion, to satisfy this requirement by withholding such amount from any cash compensation or other cash amounts owing to a Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Without limiting the foregoing, the Committee may (but is not obligated to), in its sole discretion, permit or require a Participant to satisfy, all or any portion of the minimum income, employment and/or other applicable taxes that are required to be withheld under Applicable Law with respect to an Award by (A) the delivery of shares of Common Stock (which are not subject to any pledge or other security interest) that have been both held by the Participant and vested for at least six (6) months (or such other period as established from time to time by the Committee in order to avoid adverse accounting treatment under applicable accounting standards) having an aggregate Fair Market Value equal to such minimum statutorily required withholding liability (or portion thereof) or (B) having the Company withhold from the shares of Common Stock otherwise issuable or deliverable to, or that would otherwise be retained by, the Participant upon the grant, exercise, vesting, or settlement of the Award, as applicable, a number of shares of Common Stock with an aggregate Fair Market Value equal to an amount, subject to clause (iii) below, not in excess of such minimum statutorily required withholding liability (or portion thereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Committee, subject to its having considered the applicable accounting impact of any such determination, has full discretion to allow Participants to satisfy, in whole or in part, any additional income, employment, and/or other applicable taxes payable by them with respect to an Award by electing to have the Company withhold from the shares of Common Stock otherwise issuable or deliverable to, or that would otherwise be retained by, a Participant upon the grant, exercise, vesting, or settlement of the Award, as applicable, shares of Common Stock having an aggregate Fair Market Value that is greater than the applicable minimum required statutory withholding liability (but such withholding may in no event be in excess of the maximum statutory withholding amount(s) in a Participant's relevant tax jurisdictions).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>No Claim to Awards; No Rights to Continued Employment; Waiver</u>. No employee of any member of the Company Group, or other Person, shall have any claim or right to be granted an Award under the Plan or, having been selected for the grant of an Award, to be selected for a grant of any other Award. There is no obligation for uniformity of treatment of Participants or holders or beneficiaries of Awards. The terms and conditions of Awards and the Committee's determinations and interpretations with respect thereto need not be the same with respect to each Participant and may be made selectively among Participants, whether or not such Participants are

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similarly situated. Neither the Plan nor any action taken hereunder shall be construed as giving any Participant any right to be retained in the employ or service of the Service Recipient or any other member of the Company Group, nor shall it be construed as giving any Participant any rights to continued service on the Board. The Service Recipient or any other member of the Company Group may at any time dismiss a Participant from employment or discontinue any consulting relationship, free from any liability or any claim under the Plan, unless otherwise expressly provided in the Plan or any Award Agreement. By accepting an Award under the Plan, a Participant shall thereby be deemed to have waived any claim to continued exercise or vesting of an Award or to damages or severance entitlement related to non-continuation of the Award beyond the period provided under the Plan or any Award Agreement, except to the extent of any provision to the contrary in any written employment contract or other agreement between the Service Recipient and/or any member of the Company Group and the Participant, whether any such agreement is executed before, on or after the Date of Grant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>International Participants</u>. With respect to Participants who reside or work outside of the United States of America, the Committee may, in its sole discretion, amend the terms of the Plan and create or amend Sub-Plans or amend outstanding Awards with respect to such Participants in order to permit or facilitate participation in the Plan by such Participants, conform such terms with the requirements of Applicable Law, or to obtain more favorable tax or other treatment for a Participant or any member of the Company Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Designation and Change of Beneficiary</u>. To the extent permitted under Applicable Law and by the Company, each Participant may file with the Committee a written designation of one or more Persons as the beneficiary(ies) who shall be entitled to receive the amounts payable with respect to an Award, if any, due under the Plan upon the Participant's death. A Participant may, from time to time, revoke or change the Participant's beneficiary designation without the consent of any prior beneficiary by filing a new designation with the Committee. The last such designation received by the Committee shall be controlling; *provided, however*, that no designation, or change, or revocation thereof, shall be effective unless received by the Committee prior to the Participant's death, and in no event shall it be effective as of a date prior to such receipt. If no beneficiary designation is filed by a Participant, or in the event the Company determines that any such designation does not comply with Applicable Law, the beneficiary shall be deemed to be the Participant's estate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Termination</u>. Except as otherwise provided in an Award Agreement, unless determined otherwise by the Committee at any point following such event: (i) neither a temporary absence from employment or service due to illness, vacation, or leave of absence (including, without limitation, a call to active duty for military service through a Reserve or National Guard unit) nor a transfer from employment or service with one Service Recipient to employment or service with another Service Recipient (or vice-versa) shall be considered a Termination; and (ii) if a Participant undergoes a Termination, but such Participant continues to provide services to the Company Group in a non-employee capacity, such change in status shall not be considered a Termination for purposes of the Plan. Further, unless otherwise determined by the Committee, in the event that any Service Recipient ceases to be a member of the Company Group (by reason of sale, divestiture, spin-off, or other similar transaction), unless a Participant's employment or service is transferred to another entity that would constitute a Service Recipient immediately following such transaction, such Participant shall be deemed to have suffered a Termination hereunder as of the date of the consummation of such transaction.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>No Rights as a Stockholder</u>. Except as otherwise specifically provided in the Plan or any Award Agreement, no Person shall be entitled to the privileges of ownership in respect of shares of Common Stock which are subject to Awards hereunder until such shares have been issued or delivered to such Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Government and Other Regulations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The obligation of the Company to settle Awards in shares of Common Stock or other consideration shall be subject to all Applicable Law. Notwithstanding any terms or conditions of any Award to the contrary, the Company shall be under no obligation to offer to sell or to sell, and shall be prohibited from offering to sell or selling, any shares of Common Stock pursuant to an Award unless such shares have been properly registered for sale pursuant to the Securities Act with the Securities and Exchange Commission (or as otherwise permitted under Applicable Law) or unless the Company has received an opinion of counsel (if the Company has requested such an opinion), satisfactory to the Company, that such shares may be offered or sold without such registration pursuant to an available exemption therefrom and the terms and conditions of such exemption have been fully complied with. The Company shall be under no obligation to register for sale under the Securities Act any of the shares of Common Stock to be offered or sold under the Plan. The Committee shall have the authority to provide that all shares of Common Stock or other securities of any member of the Company Group issued under the Plan shall be subject to such stop-transfer orders and other restrictions as the Committee may deem advisable under the Plan, the applicable Award Agreement and Applicable Law, and, without limiting the generality of Section 8 of the Plan, the Committee may cause a legend or legends to be put on certificates representing shares of Common Stock or other securities of any member of the Company Group issued under the Plan to make appropriate reference to such restrictions or may cause such Common Stock or other securities of any member of the Company Group issued under the Plan in book-entry form to be held subject to the Company's instructions or subject to appropriate stop-transfer orders. Notwithstanding any provision in the Plan to the contrary, the Committee reserves the right to add, at any time, any additional terms or provisions to any Award granted under the Plan that the Committee, in its sole discretion, deems necessary or advisable in order that such Award complies with the legal requirements of any governmental entity to whose jurisdiction the Award is subject.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Committee may cancel an Award or any portion thereof if it determines, in its sole discretion, that legal or contractual restrictions and/or blockage and/or other market considerations would make the Company's acquisition of shares of Common Stock from the public markets, the Company's issuance of Common Stock to the Participant, the Participant's acquisition of Common Stock from the Company and/or the Participant's sale of Common Stock to the public markets, illegal, impracticable, or inadvisable. If the Committee determines to cancel all or any portion of an Award in accordance with the foregoing, the Company shall, subject to any limitations or reductions as may be necessary to comply with Section 409A of the Code, (A) in the case of Options, SARs, or other

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Awards subject to exercise, pay to the Participant an amount equal to the excess of (I) the aggregate Fair Market Value of the shares of Common Stock subject to such Award or portion thereof canceled (determined as of the applicable exercise date, or the date that the shares would have been vested or issued, as applicable); over (II) the aggregate Exercise Price or SAR Base Price (in the case of an Option or SAR, respectively) or any amount payable as a condition of issuance of shares of Common Stock (in the case of any other Award subject to exercise) or (B) in the case of Restricted Stock, Restricted Stock Units, or Other Equity-Based Awards, provide the Participant with a cash payment or equity subject to deferred vesting and delivery consistent with the vesting restrictions applicable to such Restricted Stock, Restricted Stock Units or Other Equity-Based Awards, or the underlying shares in respect thereof. Any applicable amounts shall be delivered to the Participant as soon as practicable following the cancellation of such Award or portion thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>No</u> <u>Section</u> <u>83(b)</u> <u>Elections Without Consent of Company</u>. No election under Section 83(b) of the Code or under a similar provision of law may be made unless expressly permitted by the terms of the applicable Award Agreement or by action of the Committee in writing prior to the making of such election. If a Participant, in connection with the acquisition of shares of Common Stock under the Plan or otherwise, is expressly permitted to make such election and the Participant makes the election, the Participant shall notify the Company of such election within ten (10) days after filing notice of the election with the Internal Revenue Service or other governmental authority, in addition to any filing and notification required pursuant to Section 83(b) of the Code or other applicable provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Payments to Persons Other Than Participants</u>. If the Committee shall find that any Person to whom any amount is payable under the Plan is unable to care for the Participant's affairs because of illness or accident, or is a minor, or has died, then any payment due to such Person or the Participant's estate (unless a prior claim therefor has been made by a duly appointed legal representative) may, if the Committee so directs the Company, be paid to the Participant's spouse, child, relative, an institution maintaining or having custody of such Person, or any other Person deemed by the Committee to be a proper recipient on behalf of such Person otherwise entitled to payment. Any such payment shall be a complete discharge of the liability of the Committee and the Company therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Nonexclusivity of the Plan</u>. Neither the adoption of the Plan by the Board nor the submission of the Plan to the stockholders of the Company for approval shall be construed as creating any limitations on the power of the Board to adopt such other incentive arrangements as it may deem desirable, including, without limitation, the granting of equity-based awards otherwise than under the Plan, and such arrangements may be either applicable generally or only in specific cases.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>No Trust or Fund Created</u>. Neither the Plan nor any Award shall create or be construed to create a trust or separate fund of any kind or a fiduciary relationship between any member of the Company Group, on the one hand, and a Participant or other Person, on the other hand. No provision of the Plan or any Award shall require the Company, for the purpose of satisfying any obligations under the Plan, to purchase assets or place any assets in a trust or other entity to which contributions are made or otherwise to segregate any assets, nor shall the Company

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be obligated to maintain separate bank accounts, books, records, or other evidence of the existence of a segregated or separately maintained or administered fund for such purposes. Participants shall have no rights under the Plan other than as unsecured general creditors of the Company, except that insofar as they may have become entitled to payment of additional compensation by performance of services, they shall have the same rights as other service providers under general law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Reliance on Reports</u>. Each member of the Committee and each member of the Board shall be fully justified in acting or failing to act, as the case may be, and shall not be liable for having so acted or failed to act in good faith, in reliance upon any report made by the independent public accountant of any member of the Company Group and/or any other information furnished in connection with the Plan by any agent of the Company or the Committee or the Board, other than himself or herself.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Relationship to Other Benefits</u>. No payment under the Plan shall be taken into account in determining any benefits under any pension, retirement, profit sharing, group insurance, or other benefit plan of the Company except as otherwise specifically provided in such other plan or as required by Applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Governing Law</u>. The Plan shall be governed by and construed in accordance with the internal laws of the State of Delaware applicable to contracts made and performed wholly within the State of Delaware, without giving effect to the conflict of laws provisions thereof. EACH PARTICIPANT WHO ACCEPTS AN AWARD IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY SUIT, ACTION, OR OTHER PROCEEDING INSTITUTED BY OR AGAINST SUCH PARTICIPANT IN RESPECT OF THE PARTICIPANT'S RIGHTS OR OBLIGATIONS UNDER THE PLAN OR ANY APPLICABLE AWARD AGREEMENT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>Severability</u>. If any provision of the Plan or any Award or Award Agreement is or becomes or is deemed to be invalid, illegal, or unenforceable in any jurisdiction or as to any Person or Award, or would disqualify the Plan or any Award under any law deemed applicable by the Committee, such provision shall be construed or deemed amended to conform to the Applicable Laws, or if it cannot be construed or deemed amended without, in the determination of the Committee, materially altering the intent of the Plan or the Award, such provision shall be construed or deemed stricken as to such jurisdiction, Person, or Award and the remainder of the Plan and any such Award shall remain in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) <u>Obligations Binding on Successors</u>. The obligations of the Company under the Plan shall be binding upon any successor corporation or organization resulting from the merger, consolidation, or other reorganization of the Company, or upon any successor corporation or organization succeeding to substantially all of the assets and business of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) <u>Section</u> <u>409A of the Code</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Notwithstanding any provision of the Plan to the contrary, it is intended that the provisions of the Plan comply with Section 409A of the Code, and all provisions of the Plan shall be construed and interpreted in a manner consistent with the requirements for avoiding taxes or penalties under Section 409A of the Code. Each Participant is solely

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responsible and liable for the satisfaction of all taxes and penalties that may be imposed on or in respect of such Participant in connection with the Plan (including any taxes and penalties under Section 409A of the Code), and neither the Service Recipient nor any other member of the Company Group shall have any obligation to indemnify or otherwise hold such Participant (or any beneficiary) harmless from any or all of such taxes or penalties. With respect to any Award that is considered "deferred compensation" subject to Section 409A of the Code, references in the Plan to "termination of employment" (and substantially similar phrases) shall mean "separation from service" within the meaning of Section 409A of the Code. For purposes of Section 409A of the Code, each of the payments that may be made in respect of any Award granted under the Plan is designated as separate payments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Notwithstanding anything in the Plan to the contrary, if a Participant is a "specified employee" within the meaning of Section 409A(a)(2)(B)(i) of the Code, no payments in respect of any Awards that are "deferred compensation" subject to Section 409A of the Code and which would otherwise be payable upon the Participant's "separation from service" (as defined in Section 409A of the Code) shall be made to such Participant prior to the date that is six (6) months after the date of such Participant's "separation from service" or, if earlier, the date of the Participant's death. Following any applicable six (6) month delay, all such delayed payments will be paid in a single lump sum on the earliest date permitted under Section 409A of the Code that is also a business day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Unless otherwise provided by the Committee in an Award Agreement or otherwise, in the event that the timing of payments in respect of any Award (that would otherwise be considered "deferred compensation" subject to Section 409A of the Code) would be accelerated upon the occurrence of (A) a Change in Control, no such acceleration shall be permitted unless the event giving rise to the Change in Control satisfies the definition of a change in the ownership or effective control of a corporation, or a change in the ownership of a substantial portion of the assets of a corporation pursuant to Section 409A of the Code or (B) a Disability, no such acceleration shall be permitted unless the Disability also satisfies the definition of "Disability" pursuant to Section 409A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) This Section 12(t) shall only apply with respect to Participants to whom Section 409A of the Code is applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) <u>Clawback/Repayment</u>. All Awards shall be subject to reduction, cancellation, forfeiture, or recoupment to the extent necessary to comply with (i) any clawback, forfeiture, or other similar policy adopted by the Board or the Committee and as in effect from time to time and (ii) Applicable Law. Further, unless otherwise determined by the Committee, to the extent that the Participant receives any amount in excess of the amount that the Participant should otherwise have received under the terms of the Award for any reason (including, without limitation, by reason of a financial restatement, mistake in calculations, or other administrative error), the Participant shall be required to repay any such excess amount to the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>Detrimental Activity</u>. Notwithstanding anything to the contrary contained herein, if a Participant has engaged in any Detrimental Activity, as determined by the Committee, the Committee may, in its sole discretion, provide for one or more of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) cancellation of any or all of such Participant's outstanding Awards or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) forfeiture by the Participant of any gain realized in respect of Awards, and repayment of any such gain promptly to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) <u>Right of Offset</u>. The Company will have the right to offset against its obligation to deliver shares of Common Stock (or other property or cash) under the Plan or any Award Agreement any outstanding amounts (including, without limitation, travel and entertainment or advance account balances, loans, repayment obligations under any Awards, or amounts repayable to the Company pursuant to tax equalization, housing, automobile, or other employee programs) that the Participant then owes to any member of the Company Group and any amounts the Committee otherwise deems appropriate pursuant to any tax equalization policy or agreement. Notwithstanding the foregoing, if an Award is "deferred compensation" subject to Section 409A of the Code, the Committee will have no right to offset against its obligation to deliver shares of Common Stock (or other property or cash) under the Plan or any Award Agreement if such offset could subject the Participant to the additional tax imposed under Section 409A of the Code in respect of an outstanding Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) <u>Expenses; Titles and Headings</u>. The expenses of administering the Plan shall be borne by the Company Group. The titles and headings of the sections in the Plan are for convenience of reference only, and in the event of any conflict, the text of the Plan, rather than such titles or headings, shall control.

\* \* \*

## Exhibit 10.38

**Exhibit 10.38** 

**SEPARATION AND CONSULTING AGREEMENT,** 

**GENERAL RELEASE OF CLAIMS** 

**AND COVENANT NOT TO SUE** 

This Separation and Consulting Agreement, General Release of Claims and Covenant Not to Sue (this "<u>Agreement</u>"), dated as of April 4, 2025, is made by and between Mesa Air Group, Inc., a Delaware corporation (the "<u>Company</u>") and Jonathan G. Ornstein ("<u>Executive</u>").

WHEREAS, Executive is currently employed with the Company pursuant to the terms of an employment agreement between Executive and the Company, dated as of July 26, 2018 (the "<u>Employment Agreement</u>");

WHEREAS, pursuant to that certain Agreement, Plan of Conversion and Plan of Merger, dated as of the date hereof (the "<u>Merger Agreement</u>"), by and between the Company and Republic Airways Holdings Inc., a Delaware corporation ("<u>Republic Airways</u>"), Republic Airways will be merged with and into the Company, with the Company continuing as the Surviving Corporation (as defined in the Merger Agreement);

WHEREAS, Executive and the Company have mutually agreed that Executive's employment with the Company will terminate effective as of the Termination Date (as defined below) and that, following the Termination Date, Executive shall perform the Consulting Services during the Consulting Period (as each such term is defined herein);

WHEREAS, Executive and the Company have agreed to resolve and settle any and all of their disputed claims and all differences between them, including, but in no way limited to, any differences that might arise in connection with Executive's employment with the Company and the termination of Executive's employment; and

WHEREAS, Capitalized terms but not defined in this Agreement will have the meaning set forth in the Employment Agreement.

NOW, THEREFORE, in consideration of the recitals, promises, and other good and valuable consideration specified herein, the receipt and sufficiency of which is hereby acknowledged, Executive and the Company hereby agree as follows:

1.  **<u>Termination of Employment; Transitional Employment Period</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Executive's employment with the Company will terminate effective as of the later of (x) the Closing
Date (as defined in the Merger Agreement) and (y) October 1, 2025; <u>provided</u>, that, if determined by Republic Airways upon 30 days' written notice to the Company and Executive prior to the Closing Date, Executive's
employment with the Company will continue until such later date determined by Republic Airways in its sole discretion (not to exceed 180 days following the Closing Date) and Executive's employment with the Company will terminate effective as of
such later date (the latest of (x) the Closing Date, (y) October 1, 2025 and (z) such later date determined by Republic Airways above, the " <u>Termination Date</u> "). Notwithstanding the foregoing, in the event
Republic Airways determines that Executive's employment with the Company should continue following the Closing Date pursuant to the proviso in the

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immediately preceding sentence, the Company and Republic Airways shall have the right to elect, upon 30 days' written notice to Executive, an earlier date on which Executive's employment with the Company will terminate and such earlier date shall be the "Termination Date" for purposes of this Agreement. Effective as of the Closing Date, the Employment Agreement shall be terminated and be of no further force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. To the extent that the Termination Date is later than the Closing Date, during the period commencing on the
Closing Date and ending on the Termination Date (the " <u>Transitional Employment Period</u> "), Executive shall serve in a full-time employee capacity as an advisor to the Company's President (and shall hold no other titles or
positions with the Company or any of its affiliates) and shall provide such transitional services as may be requested from time to time by the Company's President. During the Transitional Employment Period, Executive shall continue to be paid a
base salary at the same rate as in effect as of immediately prior to the Closing Date, remain eligible to participate in all employee benefit plans of the Company on the same basis as such plans were made available to Executive immediately prior to
the Closing Date, and shall remain eligible to earn an annual bonus in respect of the Company's fiscal year ending September 30, 2025 (which annual bonus, to the extent earned, shall be paid on or about the one-year anniversary of the incentive bonus paid to Executive for fiscal year 2024), but will not be eligible to receive any other incentive or other compensation or benefits during the Transitional Employment
Period.

2.  **<u>Consulting Arrangement</u>** .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. <u>Consulting Period</u>. During the period of time commencing on the Termination Date and ending on the second
anniversary of the Termination Date (the " <u>Consulting Period</u> "), Executive shall spend no more than 20% of his time advising and/or leading special projects as assigned by the Company's President. Consulting work is not required
to be done in Phoenix or Indianapolis and can be done remotely or in the Company offices as mutually agreed. Executive acknowledges and agrees that, during the Transitional Employment Period and the Consulting Period, Executive will not, directly or
indirectly own an interest in, manage, operate, join, control, lend money or render financial assistance to or participate in or serve as an officer, employee, partner, shareholder or consultant, any person that is engaged in the primary business of
providing regional air carrier passenger service provided by the Company as of the Closing Date (a " <u>Restricted Business</u> ") and, if Executive ends up, directly or indirectly, owning an interest in, managing, operating, joining,
controlling, lending money or rendering financial assistance to or participating in or serving as an officer, employee, partner, shareholder or consultant of a Restricted Business, the Consulting Period will automatically terminate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. <u>Consulting Fees</u>. In exchange for the performance of the Consulting Services, during the Consulting
Period, the Company shall pay to Executive monthly consulting fees as an independent contractor (the " <u>Consulting Fees</u> ") in an amount equal to $90,000 per month of the Consulting Period and, subject to Executive's continued
compliance with the restrictive covenants set forth herein for the duration of the Consulting Period, a lump sum of $1,560,000, payable within 10 days following the end of the Consulting Period. The Consulting Fees will be paid to Executive in
accordance with the Company's standard payment procedures for consultants and independent contractors.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. <u>Benefits</u>. Except as otherwise provided in <u>Section</u> <u>3(A)</u>, as an independent
contractor, Executive understands and agrees that, while performing any services for the Company after the Termination Date, Executive shall not be eligible to participate in or accrue benefits under any Company benefit plan for which status as an
employee of the Company is a condition of such participation or accrual.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. <u>Independent Contractor Status</u>. Executive and the Company acknowledge and agree that, during the
Consulting Period, Executive shall be an independent contractor. During the Consulting Period and thereafter, Executive shall not be an agent or employee of the Company and shall not be authorized to act on behalf of the Company, unless otherwise
authorized to do so by the Company's President. Unless otherwise required by law, the Company will not make deductions for taxes from any Consulting Fees paid hereunder. Personal income and self-employment taxes for Consulting Fees paid to
Executive hereunder shall be the sole responsibility of Executive. Executive agrees to indemnify and hold the Company and the other entities released herein harmless for any tax claims or penalties resulting from any failure by Executive to make
required personal income and self-employment tax payments with respect to the Consulting Fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. <u>Protection of Information</u>. Executive agrees that, during the Consulting Period and for a period of one
year thereafter, Executive will not, except for the purposes of performing the Consulting Services, seek to obtain any confidential or proprietary information or materials of the Company.

3.  **<u>Post-Termination Payments and Benefits to Executive</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. <u>Payments and Benefits</u>. In addition to any unpaid Accrued Base Salary, Accrued Reimbursable Expenses,
Accrued Benefits and any incentive bonus or other bonus earned but not paid as of the Termination Date with respect to a prior fiscal quarter or fiscal year (including, without limitation, any incentive bonus earned by Executive for fiscal year
2025, the amount of any such incentive bonus Executive acknowledges and agrees shall be no greater than that amount which would cause the Executive's total compensation for fiscal year 2025 to be equal to Executive's total compensation for
calendar year 2019 in compliance with the CARES Act restrictions set forth in Company's Loan and Guarantee Agreement, dated as of October 30, 2020, with the United States Department of the Treasury among other parties, as amended (the
" <u>UST Loan Agreement</u> ")) due and payable to Executive on the Termination Date and in lieu and full satisfaction of any payments or benefits to which Executive may otherwise have been entitled pursuant to the Employment Agreement and
provided that Executive executes, delivers and does not revoke the release agreement attached as <u>Exhibit A</u> hereto (the " <u>Release Agreement</u> ") within 10 days following the Termination Date, but in no event prior to the
Termination Date, Executive shall be entitled to the following payments and benefits, in each case, subject to Executive's continued compliance with the terms of this Agreement as set forth in <u>Section</u> <u>10</u>:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. a severance payment equal to $3,700,000 (the " <u>Severance Payment</u> "), which Severance Payment
shall be payable, within 10 days after the date the Release Agreement becomes effective by its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. <u>Taxes</u>. Executive shall be responsible for the payment of any and all required federal, state, local and
foreign taxes incurred, or to be incurred, in connection with any amounts payable, or benefits provided, to Executive under this Agreement. Notwithstanding any other provision of this Agreement, to the extent required by law the Company will
withhold from amounts payable under this Section 3 all federal, state, local and foreign taxes that are required to be withheld by applicable laws and regulations with respect to any amounts payable, or benefits provided, to Executive under this
Agreement and report on any applicable federal, state or local tax reporting form any income to Executive determined by the Company as resulting from such amounts payable or benefits provided hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. <u>Satisfaction of Claims</u>. The receipt and satisfaction of the payment obligations described in this <u>Section</u> <u>3</u> is acknowledged as full and final payment, accord and satisfaction of any and all potential claims described in the Release Agreement against the Company Releasees (as defined below), except for those claims not
being released by Executive under the Release Agreement.

4.  **<u>Sole Right to Claims; No Other Claims</u>.** Executive represents and warrants that no other
person or entity had or has any interest in the claims referred to in this Agreement; that Executive has the sole right and exclusive authority to execute this Agreement; that Executive has not sold, assigned, transferred, conveyed or otherwise
disposed of any claim or demand relating to any matter covered by this Agreement; that Executive has not filed any claims, complaints, or actions of any kind against the Company with any court of law, or local, state, or federal government or
agency; that Executive has been properly paid for all hours worked for the Company with the exception of the final payroll for the period through and including the Termination Date; that, other than the payments referred to herein, Executive has
received all commissions, bonuses and other compensation due to Executive and Executive has not engaged in any unlawful conduct relating to the Company's business.

5.  **<u>No Admission of Liability</u>.** Executive acknowledges and understands that the consideration
referred to herein is provided without admission or concession by the Company of any violation of any law or liability to Executive; and that said consideration provides Executive with valuable benefits in addition to any to which Executive already
is entitled under the Company's employee benefit plans or otherwise. The Company acknowledges that Executive is entering into this Agreement without admission or concession by Executive of any violation of any law or liability to the Company.

6.  **<u>No Other Consideration</u>.** Executive acknowledges and agrees that no consideration other than
as provided for in this Agreement has been or will be paid or furnished by the Company (other than any payments or benefits not released by Executive in the Release Agreement); Executive will make no claim and hereby waives any right Executive may
now have or may hereafter have, based upon any alleged oral alteration, amendment, modification or any other alleged change in this Agreement; and that Executive understands and has freely and voluntarily entered into and executed this Agreement.

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7.  **<u>Restrictive Covenants</u>.** To the full extent enforceable by law, Executive covenants and
agrees that, without the express written consent of an executive officer of the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>Confidential Information</u>. During the Executive's employment with the Company and during the
Consulting Period, Executive has had, and shall have, access to the Confidential Information and shall occupy a position of trust and confidence with respect to the Confidential Information and the Company's affairs and business. Executive
agrees to take the following steps to preserve the confidential and proprietary nature of the Confidential Information:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. <u>Non-Disclosure</u>. During the Transitional Employment Period, the
Consulting Period and thereafter, Executive shall not use, disclose or otherwise permit any person or entity access to any of the Confidential Information in Executive's possession or control other than as required in the performance of
Executive's duties with the Company and other than is required to be disclosed by law or by any court, administrative agency, or arbitration panel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. <u>Prevent Disclosure</u>. During the Transitional Employment Period, the Consulting Period and thereafter,
other than as required in the performance of Executive's duties with the Company and other than is required to be disclosed by law or by any court, administrative agency, or arbitration panel, Executive shall take all reasonable precautions to
prevent disclosure of the Confidential Information to unauthorized persons or entities, other than is required to be disclosed by law or by any court, administrative agency, or arbitration panel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. <u>Return All Materials</u>. Upon the expiration of the Consulting Period, Executive shall deliver to the
Company all tangible materials in Executive's possession or control relating to, but not limited to, the Confidential Information and any other information regarding the Company, including any documentation, records, listings, notes, data,
sketches, drawings, memoranda, models, accounts, reference materials, samples, machine-readable media and equipment which in any way relate to the Confidential Information and shall not retain any copies of any of the above materials.

For purposes of this <u>Section</u> <u>7(a)</u>, "<u>Confidential Information</u>" shall mean information concerning the Company which the Company attempts to keep confidential, has not been publicly disclosed by the Company, is not a matter of common knowledge in the airline industry, and was not known by Executive prior to Executive's employment by the Company, including, but not limited to, certain information relating to the business plans, trade practices, finances, accounting methods, methods of operations, trade secrets, marketing plans or programs, forecasts, statistics relating to routes and markets, contracts, customers, compensation arrangements, and business opportunities. The

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term "Confidential Information" does not include information that (A) is or becomes generally available to the public other than as a result of a disclosure by Executive, or (B) is or becomes available to Executive on a non-confidential basis from a source other than Executive, in each case, so long as the source of such information is not known by Executive to be bound by a confidentiality agreement or other contractual, legal or fiduciary obligation of confidentiality with respect to such information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. <u>Non-Solicitation of Employees/Contractors</u>. During the
Transitional Employment Period and the Consulting Period, Executive will not, without the prior written consent of the Company, whether on Executive's own behalf or on behalf of or in conjunction with any Person:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. directly or indirectly solicit, induce or encourage any employee of the Company to leave the employment of the
Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. directly or indirectly solicit, induce or encourage to cease to work with the Company any independent
contractor, consultant or partner then under exclusive contract with the Company; <u>provided</u>, that clauses (i) and (ii) above shall not be violated by general solicitation not targeted at the prohibited group or by Executive serving as a
reference upon request.

8.  **<u>Continuing Cooperation</u>.** Following the Termination Date, Executive covenants and agrees
that Executive will reasonably cooperate when and as reasonably required by the Company in the defense or prosecution of any claims, charges, complaints or lawsuits that have been or may hereafter be filed by or against the Company (but in all
events taking into consideration Executive's other business and personal activities and commitments), in which event the Company will indemnify Executive in the same manner and to the same extent as if Executive were still employed by the
Company. Such cooperation will include, but is not limited to, meeting with the Company's counsel and being available for deposition and/or trial testimony upon reasonable notice. The Company agrees that indemnification shall include the prompt
reimbursement of Executive for reasonable expenses incurred by Executive in furnishing such cooperation. If such cooperation extends beyond the Consulting Period, then Executive will be compensated at a rate of $750.00 per hour plus, to the extent
approved by the Company in advance, documented out-of-pocket expenses for services performed by Executive in connection with any such cooperation.

9.  **<u>Non-Disparagement; Administrative Charges; Protected Activity</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Executive covenants and agrees that following the Termination Date, Executive shall not, whether acting for
Executive or for any third party, defame or disparage the image or reputation of the Company or any of its subsidiaries or affiliates and their directors, officers, senior management employees and professional employees. Nothing in any provision of
this Agreement shall affect Executive's right to file a charge or complaint or communicate with the Equal Employment Opportunity Commission (" <u>EEOC</u> "), the National Labor Relations Board (" <u>NLRB</u> "), the Securities
and Exchange Commission (" <u>SEC</u> ") or any other federal, state or local administrative agency or limit Executive's lawful opportunity to cooperate with or participate in any administrative proceeding or

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investigation, or from making other disclosures that are protected under the whistleblower provisions of any law or regulation, provided that, in each case, such communications and disclosures are consistent with applicable law. Executive does not need the consent of, or to give notice to, the Company prior to making any such communication or disclosure. However, where this is not prohibited by applicable law, rule, or regulation, the severance payments paid to Executive by this Agreement shall be the sole monetary relief available to Executive from any Company Releasee for the claims being released in this Agreement, and Executive will not be entitled to recover, and agrees to waive, any additional personal monetary relief that may be sought from or awarded from any Company Releasee in the future without regard to who filed or brought such claim. In addition, nothing in this Agreement shall restrict any legal rights to engage in protected activities regarding the terms and conditions of employment. Notwithstanding this release of liability, nothing in this Agreement prevents Executive from filing any non-legally waivable claim (including a challenge to the validity of this Agreement) with the EEOC, the NLRB, the SEC or comparable federal, state or local agency or participating in any investigation or proceeding conducted by the EEOC, NLRB, SEC or comparable federal, state or local agency; however, Executive hereby understands and agrees that, where this is not prohibited by applicable law, rule, or regulation, Executive is waiving any and all rights to recover any monetary or personal relief or recovery from any Company Releasee as a result of such EEOC, NLRB, SEC or comparable federal, state or local agency proceeding or subsequent legal actions. In addition, Executive shall be permitted to disclose Confidential Information (and make truthful statements) to the extent necessary in connection with any lawsuit between the parties to enforce or defend this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Company covenants and agrees that following the Termination Date, the Company shall instruct the
then-current executive officers of the Company and members of the Board of Directors of the Company, in each case, as of the Termination Date, not to defame or disparage the image or reputation of Executive; provided, that, nothing herein shall
preclude the Company, or its executive officers and members of the Board of Directors of the Company from responding truthfully to a lawful subpoena or other compulsory legal process or providing truthful information otherwise required by law.

10.  **<u>Injunctive Relief</u>.** Executive understands and agrees that a breach of any of the
agreements, covenants, representations or warranties set forth in <u>Section</u> <u>7</u> or <u>Section</u> <u>2(A)</u> shall be a material breach of this Agreement, for which the Company may, at its sole option:
(a) immediately cease providing to Executive any of the benefits provided for in <u>Section</u> <u>2</u> or <u>Section</u> <u>3</u> (other than the Severance Payment); and/or (b) seek injunctive relief or actual
damages (excluding attorneys' fees and costs). The Company shall not be permitted to seek or utilize the remedies in clauses (a) and/or (b) of the preceding sentence unless the Company has provided Executive with written notice of the
event(s) or omission(s) giving rise to such remedies and, if curable, Executive has failed to cure such event or omission within a reasonable period of time after receipt of such notice. Except as otherwise expressly set forth in this <u>Section</u> <u>10</u>, the payments and benefits provided to Executive under this Agreement are not subject to forfeiture or repayment for any reason.

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11.  **<u>Governing Law</u>.** This Agreement shall be construed in accordance with and governed for all
purposes by the laws of the State of Indiana applicable to contracts executed and wholly performed within such state.

12.  **<u>Severability</u>.** The covenants and agreements contained in this Agreement are separate and
severable and the invalidity or unenforceability of any one or more of such covenants or agreements, if not material to the employment arrangement that is the basis for this Agreement, shall not affect the validity or enforceability of any other
covenant or agreement contained in this Agreement. If, in any judicial proceeding, a court shall refuse to enforce one or more of the covenants or agreements contained in this Agreement because the duration thereof is too long, or the scope thereof
is too broad, it is expressly agreed between the parties to this Agreement that such duration or scope shall be deemed reduced to the extent necessary to permit the enforcement of such covenants or agreements.

13.  **<u>Voluntary Execution of Agreement</u>.** This Agreement is executed voluntarily and without any
duress or undue influence on the part or behalf of the parties hereto, with the full intent of releasing all claims. Executive hereby acknowledges that (a) Executive has read this Agreement, (b) Executive has been represented in the
preparation, negotiation, and execution of this Agreement by legal counsel of Executive's own choice or that Executive has voluntarily declined to seek such counsel, (c) Executive understands the terms and consequences of this Agreement
and of the releases it contains, and (d) Executive is fully aware of the legal and binding effect of this Agreement.

14.  **<u>Counterparts</u>.** This Agreement may be signed in counterpart originals with the same force
and effect as though a single original were executed.

15.  **<u>Entire Agreement</u>.** This Agreement constitutes the entire agreement of the parties hereto
with respect to the subject matter of this Agreement, and this Agreement supersedes all prior agreements between the parties with respect to the subject matter covered herein, whether written or oral. Notwithstanding the foregoing, nothing herein is
intended to supersede, limit or replace any prior non-disclosure covenants in any other written agreement, which shall continue and remain in full force and effect per the terms of those agreements (provided
that any non-compete and/or non-solicitation covenants in such agreements shall be superseded by this Agreement). In the event of a conflict between any provision of
this Agreement and any provision of any other written agreement, the provisions of this Agreement shall control.

16.  **<u>Section</u> <u>409A</u>.** This Agreement is intended to comply with,
or otherwise be exempt from, Section 409A of the Code and any regulations and Treasury guidance promulgated thereunder (" <u>Section</u> <u>409A</u> "). If the Company determines in good faith that any provision of this
Agreement would cause Executive to incur an additional tax, penalty, or interest under Section 409A, the Company and Executive shall use reasonable efforts to reform such provision, if possible, in a mutually agreeable fashion to maintain to
the maximum extent practicable the original intent of the applicable provision without violating the provisions of Section 409A or causing the imposition of such additional tax, penalty, or interest under Section 409A. The preceding
provisions, however, shall not be construed as a guarantee by the Company of any particular tax effect to Executive under this Agreement. For purposes of Section 409A, the right to a series of installment payments under this Agreement shall be
treated as a right to a

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series of separate payments. With respect to any reimbursement of expenses of, or any provision of in-kind benefits to, Executive, as specified under this Agreement, such reimbursement of expenses or provision of in-kind benefits shall be subject to the following conditions: (1) the expenses eligible for reimbursement or the amount of in-kind benefits provided in one taxable year shall not affect the expenses eligible for reimbursement or the amount of in-kind benefits provided in any other taxable year, except for any medical reimbursement arrangement providing for the reimbursement of expenses referred to in Section 105(b) of the Code; (2) the reimbursement of an eligible expense shall be made no later than the end of the year after the year in which such expense was incurred; and (3) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit. "Termination of employment," or words of similar import, as used in this Agreement means, for purposes of any payments under this Agreement that are payments of deferred compensation subject to Section 409A, Executive's "separation from service" as defined in Section 409A. If a payment obligation under this Agreement arises on account of Executive's separation from service while Executive is a "specified employee" (as defined under Section 409A and determined in good faith by the Company), any payment of "deferred compensation" (as defined under Treasury Regulation Section 1.409A-1(b)(1), after giving effect to the exemptions in Treasury Regulation Sections 1.409A-1(b)(3) through (b)(12)) that is scheduled to be paid within six (6) months after such separation from service shall be paid within fifteen (15) days after the end of the six (6)-month period beginning on the date of such separation from service, or, if earlier, within fifteen (15) days after the appointment of the personal representative or executor of Executive's estate following Executive's death.

17.  **<u>Effectiveness</u>.** In the event the Closing (as defined in the Merger Agreement) does not
occur or the Merger Agreement is terminated in accordance with its terms prior to the Closing, this Agreement shall be null and void and of no further force or effect.

\* \* \* \*

[*Signatures on next page]*

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

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| | |
|:---|:---|
| **MESA AIR GROUP, INC.** | **MESA AIR GROUP, INC.** |
| By: | /s/Michael Lotz |
|  | Name: Michael Lotz |
|  | Title: President |
| **EXECUTIVE** | **EXECUTIVE** |
| /s/ Jonathan G. Ornstein | /s/ Jonathan G. Ornstein |
| Jonathan G. Ornstein | Jonathan G. Ornstein |
| Date: 4/4/2025 | Date: 4/4/2025 |

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*[Signature Page to Separation and Consulting Agreement,* 

*General Release of Claims and Covenant Not to Sue]* 

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**<u>Exhibit A</u>**

**Release Agreement** 

(*See Attached*)

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**<u>Release of Claims</u>**

This Release of Claims (this "<u>Release</u>") is entered into and delivered to Mesa Air Group, Inc., a Delaware corporation (the "<u>Company</u>"), as of [•], 2025, by Jonathan G. Ornstein ("<u>Executive</u>"). Capitalized terms used but not defined in this Release will have the meaning set forth in the Separation and Consulting Agreement, General Release of Claims and Covenant Not to Sue, dated as of April 4, 2025, by and between the Company and Executive (the "<u>Agreement</u>"). Executive agrees as follows:

1. For and in consideration of the payments and benefits described in Section 3 of the Agreement, Executive
hereby agrees on behalf of Executive's self, Executive's agents, assignees, attorneys, successors, assigns, heirs and executors, to, and Executive does hereby, fully and completely forever release the Company and its past, current and
future affiliates, predecessors and successors and all of their respective past and/or present officers, directors, partners, members, managing members, managers, employees, agents, representatives, administrators, attorneys, insurers and
fiduciaries, in their individual and/or representative capacities (hereinafter collectively referred to as the " <u>Company Releasees</u> "), from any and all causes of action, suits, agreements, promises, damages, disputes, controversies,
contentions, differences, judgments, claims, debts, dues, sums of money, accounts, reckonings, bonds, bills, specialties, covenants, contracts, variances, trespasses, extents, executions and demands of any kind whatsoever, which Executive or
Executive's agents, assignees, attorneys, successors, assigns, heirs and executors ever had, now have or may have against the Company Releasees or any of them, in law, admiralty or equity, whether known or unknown to Executive, for, upon, or by
reason of, any matter, action, omission, course or thing whatsoever occurring up to the date this Release is signed by Executive, including, without limitation, in connection with or in relationship to Executive's employment or other service
relationship with the Company, and any applicable employment, compensatory or equity arrangement with the Company (including, without limitation, the Employment Agreement), any claims of breach of contract, wrongful termination, retaliation, fraud,
defamation, infliction of emotional distress or national origin, race, age, sex, sexual orientation, disability, medical condition or other discrimination or harassment, (such released claims are collectively referred to herein as the
" <u>Released Claims</u> "); <u>provided</u>, that, Executive does not waive or release (a) any claims with respect to the right to enforce the Agreement, (b) claims with respect to any vested right Executive may have under any
employee pension or welfare benefit plan of the Company, (c) any rights Executive may have for indemnification (including advancement of expenses) from the Company or any of its affiliates and coverage under any applicable directors' and
officers' liability insurance policies, and (d) any claims that may not be waived by law.

2. Notwithstanding the generality of Section 1 above, the Released Claims include, without limitation,
(a) any and all claims under Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act of 1967 (the " <u>ADEA,</u> " a law which prohibits discrimination on the basis of age), the Civil Rights Act of 1971, the
Civil Rights Act of 1991, the Fair Labor Standards Act, Employee Retirement Income Security Act of 1974, the Americans with Disabilities Act, the Family and Medical Leave Act of 1993, the National Labor Relations Act, the Older Workers Benefit
Protection Act of 1990 (the " <u>OWBPA</u> "), the Equal Pay Act, the Securities Act of 1933, the Securities Exchange Act of 1934, the Rehabilitation Act of 1973, the Worker Adjustment and Retraining Notification Act, and any

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and all other federal, state or local laws, statutes, rules and regulations pertaining to employment or otherwise, and (b) any claims for wrongful discharge, breach of contract, fraud, misrepresentation or any compensation claims, or any other claims under any statute, rule or regulation or under the common law, including compensatory damages, punitive damages, attorney's fees, costs, expenses and all claims for any other type of damage or relief.

3. Nothing in any provision of this Release shall affect Executive's right to file a charge or complaint or
communicate with the Equal Employment Opportunity Commission (" <u>EEOC</u> "), the National Labor Relations Board (" <u>NLRB</u> "), the Securities and Exchange Commission (" <u>SEC</u> ") or any other federal, state or
local administrative agency or limit Executive's lawful opportunity to cooperate with or participate in any administrative proceeding or investigation, or from making other disclosures that are protected under the whistleblower provisions of
any law or regulation, provided that, in each case, such communications and disclosures are consistent with applicable law. Executive does not need the consent of, or to give notice to, the Company prior to making any such communication or
disclosure. However, where this is not prohibited by applicable law, rule, or regulation, the severance payments paid to Executive by the Agreement shall be the sole monetary relief available to Executive from any Company Releasee for the claims
being released in this Release, and Executive will not be entitled to recover, and agrees to waive, any additional personal monetary relief that may be sought from or awarded from any Company Releasee in the future without regard to who filed or
brought such claim. In addition, nothing in this Release shall restrict any legal rights to engage in protected activities regarding the terms and conditions of employment. Notwithstanding this release of liability, nothing in this Release prevents
Executive from filing any non-legally waivable claim (including a challenge to the validity of this Release) with the EEOC, the NLRB, the SEC or comparable federal, state or local agency or participating in
any investigation or proceeding conducted by the EEOC, NLRB, SEC or comparable federal, state or local agency; however, Executive hereby understands and agrees that, where this is not prohibited by applicable law, rule, or regulation, Executive is
waiving any and all rights to recover any monetary or personal relief or recovery from any Company Releasee as a result of such EEOC, NLRB, SEC or comparable federal, state or local agency proceeding or subsequent legal actions.

4. Executive represents that Executive has read carefully and fully understands the terms of this Release, and
that Executive has been advised to consult with an attorney and has availed Executive's self of the opportunity to consult with an attorney prior to signing this Release. Executive acknowledges and agrees that Executive is executing this
Release willingly, voluntarily and knowingly, of Executive's own free will, in exchange for the payments and benefits described in Section 3 of the Agreement, and that Executive has not relied on any representations, promises or agreements
of any kind made to Executive in connection with Executive's decision to accept the terms of the Agreement and this Release, other than those set forth in the Agreement and this Release. **Executive acknowledges that the Company is providing Executive with forty-five (45) days to consider whether Executive wants to sign this Release, that the ADEA gives Executive the right to revoke this Release within seven (7) days after it is signed and that because this Release includes a release of claims under the ADEA, Executive is being provided with the information attached as <u>Annex A</u> hereto in accordance with OWBPA, and Executive understands that Executive will not receive any payments or benefits under the Agreement until such seven (7) day revocation period has passed and then, only if Executive has not revoked this Release. To the extent Executive has executed this Release within less than forty-five (45) days after its delivery to Executive, Executive hereby waives the forty-five (45)-day period and acknowledges that Executive's decision to execute this Release prior to the expiration of such forty-five (45)-day period was entirely voluntary.** 

\* \* \* \*

[*Signatures on next page*]

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IN WITNESS WHEREOF, Executive has executed this Release as of the date first above written.

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| |
|:---|
| **EXECUTIVE** |
| Jonathan G. Ornstein |
| Date: |

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**<u>Annex A</u>**

(*See Attached*)

## Exhibit 10.39

**Exhibit 10.39** 

**SEPARATION AND CONSULTING AGREEMENT,** 

**GENERAL RELEASE OF CLAIMS** 

**AND COVENANT NOT TO SUE** 

This Separation and Consulting Agreement, General Release of Claims and Covenant Not to Sue (this "<u>Agreement</u>"), dated as of April 4, 2025, is made by and between Mesa Air Group, Inc., a Delaware corporation (the "<u>Company</u>") and Michael J. Lotz ("<u>Executive</u>").

WHEREAS, Executive is currently employed with the Company pursuant to the terms of an employment agreement between Executive and the Company, dated as of July 26, 2018 (the "<u>Employment Agreement</u>");

WHEREAS, pursuant to that certain Agreement, Plan of Conversion and Plan of Merger, dated as of the date hereof (the "<u>Merger Agreement</u>"), by and between the Company and Republic Airways Holdings Inc., a Delaware corporation ("<u>Republic Airways</u>"), Republic Airways will be merged with and into the Company, with the Company continuing as the Surviving Corporation (as defined in the Merger Agreement);

WHEREAS, Executive and the Company have mutually agreed that Executive's employment with the Company will terminate effective as of the Termination Date (as defined below) and that, following the Termination Date, Executive shall perform the Consulting Services during the Consulting Period (as each such term is defined herein);

WHEREAS, Executive and the Company have agreed to resolve and settle any and all of their disputed claims and all differences between them, including, but in no way limited to, any differences that might arise in connection with Executive's employment with the Company and the termination of Executive's employment; and

WHEREAS, Capitalized terms but not defined in this Agreement will have the meaning set forth in the Employment Agreement.

NOW, THEREFORE, in consideration of the recitals, promises, and other good and valuable consideration specified herein, the receipt and sufficiency of which is hereby acknowledged, Executive and the Company hereby agree as follows:

1.  **<u>Termination of Employment; Transitional Employment Period</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Executive's employment with the Company will terminate effective as of the later of (x) the Closing
Date (as defined in the Merger Agreement) and (y) October 1, 2025; <u>provided</u>, that, if determined by Republic Airways upon 30 days' written notice to the Company and Executive prior to the Closing Date, Executive's
employment with the Company will continue until such later date determined by Republic Airways in its sole discretion (not to exceed 180 days following the Closing Date) and Executive's employment with the Company will terminate effective as of
such later date (the latest of (x) the Closing Date, (y) October 1, 2025 and (z) such later date determined by Republic Airways above, the " <u>Termination Date</u> "). Notwithstanding the foregoing, in the event
Republic Airways determines that Executive's employment with the Company should continue following the Closing Date pursuant to the proviso in the

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immediately preceding sentence, the Company and Republic Airways shall have the right to elect, upon 30 days' written notice to Executive, an earlier date on which Executive's employment with the Company will terminate and such earlier date shall be the "Termination Date" for purposes of this Agreement. Effective as of the Closing Date, the Employment Agreement shall be terminated and be of no further force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. To the extent that the Termination Date is later than the Closing Date, during the period commencing on the
Closing Date and ending on the Termination Date (the " <u>Transitional Employment Period</u> "), Executive shall serve in a full-time employee capacity as an advisor to the Company's President (and shall hold no other titles or
positions with the Company or any of its affiliates) and shall provide such transitional services as may be requested from time to time by the Company's President. During the Transitional Employment Period, Executive shall continue to be paid a
base salary at the same rate as in effect as of immediately prior to the Closing Date, remain eligible to participate in all employee benefit plans of the Company on the same basis as such plans were made available to Executive immediately prior to
the Closing Date, and shall remain eligible to earn an annual bonus in respect of the Company's fiscal year ending September 30, 2025 (which annual bonus, to the extent earned, shall be paid on or about the one-year anniversary of the incentive bonus paid to Executive for fiscal year 2024), but will not be eligible to receive any other incentive or other compensation or benefits during the Transitional Employment
Period.

2.  **<u>Consulting Arrangement</u>** .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. <u>Consulting Period</u>. During the period of time commencing on the Termination Date and ending on the second
anniversary of the Termination Date (the " <u>Consulting Period</u> "), Executive shall spend no more than 20% of his time advising and/or leading special projects as assigned by the Company's President. Consulting work is not required
to be done in Phoenix or Indianapolis and can be done remotely or in the Company offices as mutually agreed. Executive acknowledges and agrees that, during the Transitional Employment Period and the Consulting Period, Executive will not, directly or
indirectly own an interest in, manage, operate, join, control, lend money or render financial assistance to or participate in or serve as an officer, employee, partner, shareholder or consultant, any person that is engaged in the primary business of
providing regional air carrier passenger service provided by the Company as of the Closing Date (a " <u>Restricted Business</u> ") and, if Executive ends up, directly or indirectly, owning an interest in, managing, operating, joining,
controlling, lending money or rendering financial assistance to or participating in or serving as an officer, employee, partner, shareholder or consultant of a Restricted Business, the Consulting Period will automatically terminate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. <u>Consulting Fees</u>. In exchange for the performance of the Consulting Services, during the Consulting
Period, the Company shall pay to Executive monthly consulting fees as an independent contractor (the " <u>Consulting Fees</u> ") in an amount equal to $85,000 per month of the Consulting Period and, subject to Executive's continued
compliance with the restrictive covenants set forth herein for the duration of the Consulting Period, a lump sum of $1,060,000, payable within 10 days following the end of the Consulting Period. The Consulting Fees will be paid to Executive in
accordance with the Company's standard payment procedures for consultants and independent contractors.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. <u>Benefits</u>. Except as otherwise provided in <u>Section</u> <u>3(A)</u>, as an independent
contractor, Executive understands and agrees that, while performing any services for the Company after the Termination Date, Executive shall not be eligible to participate in or accrue benefits under any Company benefit plan for which status as an
employee of the Company is a condition of such participation or accrual.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. <u>Independent Contractor Status</u>. Executive and the Company acknowledge and agree that, during the
Consulting Period, Executive shall be an independent contractor. During the Consulting Period and thereafter, Executive shall not be an agent or employee of the Company and shall not be authorized to act on behalf of the Company, unless otherwise
authorized to do so by the Company's President. Unless otherwise required by law, the Company will not make deductions for taxes from any Consulting Fees paid hereunder. Personal income and self-employment taxes for Consulting Fees paid to
Executive hereunder shall be the sole responsibility of Executive. Executive agrees to indemnify and hold the Company and the other entities released herein harmless for any tax claims or penalties resulting from any failure by Executive to make
required personal income and self-employment tax payments with respect to the Consulting Fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. <u>Protection of Information</u>. Executive agrees that, during the Consulting Period and for a period of one
year thereafter, Executive will not, except for the purposes of performing the Consulting Services, seek to obtain any confidential or proprietary information or materials of the Company.

3.  **<u>Post-Termination Payments and Benefits to Executive</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. <u>Payments and Benefits</u>. In addition to any unpaid Accrued Base Salary, Accrued Reimbursable Expenses,
Accrued Benefits and any incentive bonus or other bonus earned but not paid as of the Termination Date with respect to a prior fiscal quarter or fiscal year (including, without limitation, any incentive bonus earned by Executive for fiscal year
2025, the amount of any such incentive bonus Executive acknowledges and agrees shall be no greater than that amount which would cause the Executive's total compensation for fiscal year 2025 to be equal to Executive's total compensation for
calendar year 2019 in compliance with the CARES Act restrictions set forth in Company's Loan and Guarantee Agreement, dated as of October 30, 2020, with the United States Department of the Treasury among other parties, as amended (the
" <u>UST Loan Agreement</u> ")) due and payable to Executive on the Termination Date and in lieu and full satisfaction of any payments or benefits to which Executive may otherwise have been entitled pursuant to the Employment Agreement and
provided that Executive executes, delivers and does not revoke the release agreement attached as <u>Exhibit A</u> hereto (the " <u>Release Agreement</u> ") within 10 days following the Termination Date, but in no event prior to the
Termination Date, Executive shall be entitled to the following payments and benefits, in each case, subject to Executive's continued compliance with the terms of this Agreement as set forth in <u>Section</u> <u>10</u>:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. a severance payment equal to $3,038,000 (the " <u>Severance Payment</u> "), which Severance Payment
shall be payable, within 10 days after the date the Release Agreement becomes effective by its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. <u>Taxes</u>. Executive shall be responsible for the payment of any and all required federal, state, local and
foreign taxes incurred, or to be incurred, in connection with any amounts payable, or benefits provided, to Executive under this Agreement. Notwithstanding any other provision of this Agreement, to the extent required by law the Company will
withhold from amounts payable under this <u>Section</u> <u>3</u> all federal, state, local and foreign taxes that are required to be withheld by applicable laws and regulations with respect to any amounts payable, or benefits provided,
to Executive under this Agreement and report on any applicable federal, state or local tax reporting form any income to Executive determined by the Company as resulting from such amounts payable or benefits provided hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. <u>Satisfaction of Claims</u>. The receipt and satisfaction of the payment obligations described in this <u>Section</u> <u>3</u> is acknowledged as full and final payment, accord and satisfaction of any and all potential claims described in the Release Agreement against the Company Releasees (as defined below), except for those claims not
being released by Executive under the Release Agreement.

4.  **<u>Sole Right to Claims; No Other Claims</u>.** Executive represents and warrants that no other
person or entity had or has any interest in the claims referred to in this Agreement; that Executive has the sole right and exclusive authority to execute this Agreement; that Executive has not sold, assigned, transferred, conveyed or otherwise
disposed of any claim or demand relating to any matter covered by this Agreement; that Executive has not filed any claims, complaints, or actions of any kind against the Company with any court of law, or local, state, or federal government or
agency; that Executive has been properly paid for all hours worked for the Company with the exception of the final payroll for the period through and including the Termination Date; that, other than the payments referred to herein, Executive has
received all commissions, bonuses and other compensation due to Executive and Executive has not engaged in any unlawful conduct relating to the Company's business.

5.  **<u>No Admission of Liability</u>.** Executive acknowledges and understands that the consideration
referred to herein is provided without admission or concession by the Company of any violation of any law or liability to Executive; and that said consideration provides Executive with valuable benefits in addition to any to which Executive already
is entitled under the Company's employee benefit plans or otherwise. The Company acknowledges that Executive is entering into this Agreement without admission or concession by Executive of any violation of any law or liability to the Company.

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6.  **<u>No Other Consideration</u>.** Executive acknowledges and agrees that no consideration other than
as provided for in this Agreement has been or will be paid or furnished by the Company (other than any payments or benefits not released by Executive in the Release Agreement); Executive will make no claim and hereby waives any right Executive may
now have or may hereafter have, based upon any alleged oral alteration, amendment, modification or any other alleged change in this Agreement; and that Executive understands and has freely and voluntarily entered into and executed this Agreement.

7.  **<u>Restrictive Covenants</u>.** To the full extent enforceable by law, Executive covenants and
agrees that, without the express written consent of an executive officer of the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>Confidential Information</u>. During the Executive's employment with the Company and during the
Consulting Period, Executive has had, and shall have, access to the Confidential Information and shall occupy a position of trust and confidence with respect to the Confidential Information and the Company's affairs and business. Executive
agrees to take the following steps to preserve the confidential and proprietary nature of the Confidential Information:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. <u>Non-Disclosure</u>. During the Transitional Employment Period, the
Consulting Period and thereafter, Executive shall not use, disclose or otherwise permit any person or entity access to any of the Confidential Information in Executive's possession or control other than as required in the performance of
Executive's duties with the Company and other than is required to be disclosed by law or by any court, administrative agency, or arbitration panel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. <u>Prevent Disclosure</u>. During the Transitional Employment Period, the Consulting Period and thereafter,
other than as required in the performance of Executive's duties with the Company and other than is required to be disclosed by law or by any court, administrative agency, or arbitration panel, Executive shall take all reasonable precautions to
prevent disclosure of the Confidential Information to unauthorized persons or entities, other than is required to be disclosed by law or by any court, administrative agency, or arbitration panel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. <u>Return All Materials</u>. Upon the expiration of the Consulting Period, Executive shall deliver to the
Company all tangible materials in Executive's possession or control relating to, but not limited to, the Confidential Information and any other information regarding the Company, including any documentation, records, listings, notes, data,
sketches, drawings, memoranda, models, accounts, reference materials, samples, machine-readable media and equipment which in any way relate to the Confidential Information and shall not retain any copies of any of the above materials.

For purposes of this <u>Section</u> <u>7(a)</u>, "<u>Confidential Information</u>" shall mean information concerning the Company which the Company attempts to keep confidential, has not been publicly disclosed by the Company, is not a matter of common knowledge in the airline industry, and was not known by Executive prior to Executive's employment by the Company, including, but not limited to, certain information relating to the business plans, trade practices, finances, accounting methods, methods of operations, trade secrets, marketing plans or programs, forecasts, statistics relating to routes and markets, contracts, customers, compensation arrangements, and business opportunities. The

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term "Confidential Information" does not include information that (A) is or becomes generally available to the public other than as a result of a disclosure by Executive, or (B) is or becomes available to Executive on a non-confidential basis from a source other than Executive, in each case, so long as the source of such information is not known by Executive to be bound by a confidentiality agreement or other contractual, legal or fiduciary obligation of confidentiality with respect to such information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. <u>Non-Solicitation of Employees/Contractors</u>. During the
Transitional Employment Period and the Consulting Period, Executive will not, without the prior written consent of the Company, whether on Executive's own behalf or on behalf of or in conjunction with any Person:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. directly or indirectly solicit, induce or encourage any employee of the Company to leave the employment of the
Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. directly or indirectly solicit, induce or encourage to cease to work with the Company any independent
contractor, consultant or partner then under exclusive contract with the Company; <u>provided</u>, that clauses (i) and (ii) above shall not be violated by general solicitation not targeted at the prohibited group or by Executive serving as a
reference upon request.

8.  **<u>Continuing Cooperation</u>.** Following the Termination Date, Executive covenants and agrees
that Executive will reasonably cooperate when and as reasonably required by the Company in the defense or prosecution of any claims, charges, complaints or lawsuits that have been or may hereafter be filed by or against the Company (but in all
events taking into consideration Executive's other business and personal activities and commitments), in which event the Company will indemnify Executive in the same manner and to the same extent as if Executive were still employed by the
Company. Such cooperation will include, but is not limited to, meeting with the Company's counsel and being available for deposition and/or trial testimony upon reasonable notice. The Company agrees that indemnification shall include the prompt
reimbursement of Executive for reasonable expenses incurred by Executive in furnishing such cooperation. If such cooperation extends beyond the Consulting Period, then Executive will be compensated at a rate of $500.00 per hour plus, to the extent
approved by the Company in advance, documented out-of-pocket expenses for services performed by Executive in connection with any such cooperation.

9.  **<u>Non-Disparagement; Administrative Charges; Protected Activity</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Executive covenants and agrees that following the Termination Date, Executive shall not, whether acting for
Executive or for any third party, defame or disparage the image or reputation of the Company or any of its subsidiaries or affiliates and their directors, officers, senior management employees and professional employees. Nothing in any provision of
this Agreement shall affect Executive's right to file a charge or complaint or communicate with the Equal Employment Opportunity Commission (" <u>EEOC</u> "), the National Labor Relations Board (" <u>NLRB</u> "), the Securities
and Exchange Commission (" <u>SEC</u> ") or any other federal, state or local administrative agency or limit Executive's lawful opportunity to cooperate with or participate in any administrative proceeding or

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investigation, or from making other disclosures that are protected under the whistleblower provisions of any law or regulation, provided that, in each case, such communications and disclosures are consistent with applicable law. Executive does not need the consent of, or to give notice to, the Company prior to making any such communication or disclosure. However, where this is not prohibited by applicable law, rule, or regulation, the severance payments paid to Executive by this Agreement shall be the sole monetary relief available to Executive from any Company Releasee for the claims being released in this Agreement, and Executive will not be entitled to recover, and agrees to waive, any additional personal monetary relief that may be sought from or awarded from any Company Releasee in the future without regard to who filed or brought such claim. In addition, nothing in this Agreement shall restrict any legal rights to engage in protected activities regarding the terms and conditions of employment. Notwithstanding this release of liability, nothing in this Agreement prevents Executive from filing any non-legally waivable claim (including a challenge to the validity of this Agreement) with the EEOC, the NLRB, the SEC or comparable federal, state or local agency or participating in any investigation or proceeding conducted by the EEOC, NLRB, SEC or comparable federal, state or local agency; however, Executive hereby understands and agrees that, where this is not prohibited by applicable law, rule, or regulation, Executive is waiving any and all rights to recover any monetary or personal relief or recovery from any Company Releasee as a result of such EEOC, NLRB, SEC or comparable federal, state or local agency proceeding or subsequent legal actions. In addition, Executive shall be permitted to disclose Confidential Information (and make truthful statements) to the extent necessary in connection with any lawsuit between the parties to enforce or defend this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Company covenants and agrees that following the Termination Date, the Company shall instruct the
then-current executive officers of the Company and members of the Board of Directors of the Company, in each case, as of the Termination Date, not to defame or disparage the image or reputation of Executive; provided, that, nothing herein shall
preclude the Company, or its executive officers and members of the Board of Directors of the Company from responding truthfully to a lawful subpoena or other compulsory legal process or providing truthful information otherwise required by law.

10.  **<u>Injunctive Relief</u>.** Executive understands and agrees that a breach of any of the
agreements, covenants, representations or warranties set forth in <u>Section</u> <u>7</u> or <u>Section</u> <u>2(A)</u> shall be a material breach of this Agreement, for which the Company may, at its sole option:
(a) immediately cease providing to Executive any of the benefits provided for in <u>Section</u> <u>2</u> or <u>Section</u> <u>3</u> (other than the Severance Payment); and/or (b) seek injunctive relief or actual
damages (excluding attorneys' fees and costs). The Company shall not be permitted to seek or utilize the remedies in clauses (a) and/or (b) of the preceding sentence unless the Company has provided Executive with written notice of the
event(s) or omission(s) giving rise to such remedies and, if curable, Executive has failed to cure such event or omission within a reasonable period of time after receipt of such notice. Except as otherwise expressly set forth in this <u>Section</u> <u>10</u>, the payments and benefits provided to Executive under this Agreement are not subject to forfeiture or repayment for any reason.

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11.  **<u>Governing Law</u>.** This Agreement shall be construed in accordance with and governed for all
purposes by the laws of the State of Indiana applicable to contracts executed and wholly performed within such state.

12.  **<u>Severability</u>.** The covenants and agreements contained in this Agreement are separate and
severable and the invalidity or unenforceability of any one or more of such covenants or agreements, if not material to the employment arrangement that is the basis for this Agreement, shall not affect the validity or enforceability of any other
covenant or agreement contained in this Agreement. If, in any judicial proceeding, a court shall refuse to enforce one or more of the covenants or agreements contained in this Agreement because the duration thereof is too long, or the scope thereof
is too broad, it is expressly agreed between the parties to this Agreement that such duration or scope shall be deemed reduced to the extent necessary to permit the enforcement of such covenants or agreements.

13.  **<u>Voluntary Execution of Agreement</u>.** This Agreement is executed voluntarily and without any
duress or undue influence on the part or behalf of the parties hereto, with the full intent of releasing all claims. Executive hereby acknowledges that (a) Executive has read this Agreement, (b) Executive has been represented in the
preparation, negotiation, and execution of this Agreement by legal counsel of Executive's own choice or that Executive has voluntarily declined to seek such counsel, (c) Executive understands the terms and consequences of this Agreement
and of the releases it contains, and (d) Executive is fully aware of the legal and binding effect of this Agreement.

14.  **<u>Counterparts</u>.** This Agreement may be signed in counterpart originals with the same force
and effect as though a single original were executed.

15.  **<u>Entire Agreement</u>.** This Agreement constitutes the entire agreement of the parties hereto
with respect to the subject matter of this Agreement, and this Agreement supersedes all prior agreements between the parties with respect to the subject matter covered herein, whether written or oral. Notwithstanding the foregoing, nothing herein is
intended to supersede, limit or replace any prior non-disclosure covenants in any other written agreement, which shall continue and remain in full force and effect per the terms of those agreements (provided
that any non-compete and/or non-solicitation covenants in such agreements shall be superseded by this Agreement). In the event of a conflict between any provision of
this Agreement and any provision of any other written agreement, the provisions of this Agreement shall control.

16.  **<u>Section</u> <u>409A</u>.** This Agreement is intended to comply with,
or otherwise be exempt from, Section 409A of the Code and any regulations and Treasury guidance promulgated thereunder (" <u>Section</u> <u>409A</u> "). If the Company determines in good faith that any provision of this
Agreement would cause Executive to incur an additional tax, penalty, or interest under Section 409A, the Company and Executive shall use reasonable efforts to reform such provision, if possible, in a mutually agreeable fashion to maintain to
the maximum extent practicable the original intent of the applicable provision without violating the provisions of Section 409A or causing the imposition of such additional tax, penalty, or interest under Section 409A. The preceding
provisions, however, shall not be construed as a guarantee by the Company of any particular tax effect to Executive under this Agreement. For purposes of Section 409A, the right to a series of installment payments under this Agreement shall be
treated as a right to a

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series of separate payments. With respect to any reimbursement of expenses of, or any provision of in-kind benefits to, Executive, as specified under this Agreement, such reimbursement of expenses or provision of in-kind benefits shall be subject to the following conditions: (1) the expenses eligible for reimbursement or the amount of in-kind benefits provided in one taxable year shall not affect the expenses eligible for reimbursement or the amount of in-kind benefits provided in any other taxable year, except for any medical reimbursement arrangement providing for the reimbursement of expenses referred to in Section 105(b) of the Code; (2) the reimbursement of an eligible expense shall be made no later than the end of the year after the year in which such expense was incurred; and (3) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit. "Termination of employment," or words of similar import, as used in this Agreement means, for purposes of any payments under this Agreement that are payments of deferred compensation subject to Section 409A, Executive's "separation from service" as defined in Section 409A. If a payment obligation under this Agreement arises on account of Executive's separation from service while Executive is a "specified employee" (as defined under Section 409A and determined in good faith by the Company), any payment of "deferred compensation" (as defined under Treasury Regulation Section 1.409A-1(b)(1), after giving effect to the exemptions in Treasury Regulation Sections 1.409A-1(b)(3) through (b)(12)) that is scheduled to be paid within six (6) months after such separation from service shall be paid within fifteen (15) days after the end of the six (6)-month period beginning on the date of such separation from service, or, if earlier, within fifteen (15) days after the appointment of the personal representative or executor of Executive's estate following Executive's death.

17.  **<u>Effectiveness</u>.** In the event the Closing (as defined in the Merger Agreement) does not
occur or the Merger Agreement is terminated in accordance with its terms prior to the Closing, this Agreement shall be null and void and of no further force or effect.

\* \* \* \*

[*Signatures on next page]*

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

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| | |
|:---|:---|
| **MESA AIR GROUP, INC.** | **MESA AIR GROUP, INC.** |
| By: | /s/ Jonathan G. Ornstein |
|  | Name: Jonathan G. Ornstein |
|  | Title: CEO |
| **EXECUTIVE** | **EXECUTIVE** |
| /s/ Michael J. Lotz | /s/ Michael J. Lotz |
| Michael J. Lotz | Michael J. Lotz |
| Date: 4/4/2025 | Date: 4/4/2025 |

---

*[Signature Page to Separation and Consulting Agreement,* 

*General Release of Claims and Covenant Not to Sue]* 

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**<u>Exhibit A</u>**

**Release Agreement** 

(*See Attached*)

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**<u>Release of Claims</u>**

This Release of Claims (this "<u>Release</u>") is entered into and delivered to Mesa Air Group, Inc., a Delaware corporation (the "<u>Company</u>"), as of [•], 2025, by Michael J. Lotz ("<u>Executive</u>"). Capitalized terms used but not defined in this Release will have the meaning set forth in the Separation and Consulting Agreement, General Release of Claims and Covenant Not to Sue, dated as of April 4, 2025, by and between the Company and Executive (the "<u>Agreement</u>"). Executive agrees as follows:

1. For and in consideration of the payments and benefits described in Section 3 of the Agreement, Executive
hereby agrees on behalf of Executive's self, Executive's agents, assignees, attorneys, successors, assigns, heirs and executors, to, and Executive does hereby, fully and completely forever release the Company and its past, current and
future affiliates, predecessors and successors and all of their respective past and/or present officers, directors, partners, members, managing members, managers, employees, agents, representatives, administrators, attorneys, insurers and
fiduciaries, in their individual and/or representative capacities (hereinafter collectively referred to as the " <u>Company Releasees</u> "), from any and all causes of action, suits, agreements, promises, damages, disputes, controversies,
contentions, differences, judgments, claims, debts, dues, sums of money, accounts, reckonings, bonds, bills, specialties, covenants, contracts, variances, trespasses, extents, executions and demands of any kind whatsoever, which Executive or
Executive's agents, assignees, attorneys, successors, assigns, heirs and executors ever had, now have or may have against the Company Releasees or any of them, in law, admiralty or equity, whether known or unknown to Executive, for, upon, or by
reason of, any matter, action, omission, course or thing whatsoever occurring up to the date this Release is signed by Executive, including, without limitation, in connection with or in relationship to Executive's employment or other service
relationship with the Company, and any applicable employment, compensatory or equity arrangement with the Company (including, without limitation, the Employment Agreement), any claims of breach of contract, wrongful termination, retaliation, fraud,
defamation, infliction of emotional distress or national origin, race, age, sex, sexual orientation, disability, medical condition or other discrimination or harassment, (such released claims are collectively referred to herein as the
" <u>Released Claims</u> "); <u>provided</u>, that, Executive does not waive or release (a) any claims with respect to the right to enforce the Agreement, (b) claims with respect to any vested right Executive may have under any
employee pension or welfare benefit plan of the Company, (c) any rights Executive may have for indemnification (including advancement of expenses) from the Company or any of its affiliates and coverage under any applicable directors' and
officers' liability insurance policies, and (d) any claims that may not be waived by law.

2. Notwithstanding the generality of Section 1 above, the Released Claims include, without limitation,
(a) any and all claims under Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act of 1967 (the " <u>ADEA,</u> " a law which prohibits discrimination on the basis of age), the Civil Rights Act of 1971, the
Civil Rights Act of 1991, the Fair Labor Standards Act, Employee Retirement Income Security Act of 1974, the Americans with Disabilities Act, the Family and Medical Leave Act of 1993, the National Labor Relations Act, the Older Workers Benefit
Protection Act of 1990 (the " <u>OWBPA</u> "), the Equal Pay Act, the Securities Act of 1933, the Securities Exchange Act of 1934, the Rehabilitation Act of 1973, the Worker Adjustment and Retraining Notification Act, and any

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and all other federal, state or local laws, statutes, rules and regulations pertaining to employment or otherwise, and (b) any claims for wrongful discharge, breach of contract, fraud, misrepresentation or any compensation claims, or any other claims under any statute, rule or regulation or under the common law, including compensatory damages, punitive damages, attorney's fees, costs, expenses and all claims for any other type of damage or relief.

3. Nothing in any provision of this Release shall affect Executive's right to file a charge or complaint or
communicate with the Equal Employment Opportunity Commission (" <u>EEOC</u> "), the National Labor Relations Board (" <u>NLRB</u> "), the Securities and Exchange Commission (" <u>SEC</u> ") or any other federal, state or
local administrative agency or limit Executive's lawful opportunity to cooperate with or participate in any administrative proceeding or investigation, or from making other disclosures that are protected under the whistleblower provisions of
any law or regulation, provided that, in each case, such communications and disclosures are consistent with applicable law. Executive does not need the consent of, or to give notice to, the Company prior to making any such communication or
disclosure. However, where this is not prohibited by applicable law, rule, or regulation, the severance payments paid to Executive by the Agreement shall be the sole monetary relief available to Executive from any Company Releasee for the claims
being released in this Release, and Executive will not be entitled to recover, and agrees to waive, any additional personal monetary relief that may be sought from or awarded from any Company Releasee in the future without regard to who filed or
brought such claim. In addition, nothing in this Release shall restrict any legal rights to engage in protected activities regarding the terms and conditions of employment. Notwithstanding this release of liability, nothing in this Release prevents
Executive from filing any non-legally waivable claim (including a challenge to the validity of this Release) with the EEOC, the NLRB, the SEC or comparable federal, state or local agency or participating in
any investigation or proceeding conducted by the EEOC, NLRB, SEC or comparable federal, state or local agency; however, Executive hereby understands and agrees that, where this is not prohibited by applicable law, rule, or regulation, Executive is
waiving any and all rights to recover any monetary or personal relief or recovery from any Company Releasee as a result of such EEOC, NLRB, SEC or comparable federal, state or local agency proceeding or subsequent legal actions.

4. Executive represents that Executive has read carefully and fully understands the terms of this Release, and
that Executive has been advised to consult with an attorney and has availed Executive's self of the opportunity to consult with an attorney prior to signing this Release. Executive acknowledges and agrees that Executive is executing this
Release willingly, voluntarily and knowingly, of Executive's own free will, in exchange for the payments and benefits described in Section 3 of the Agreement, and that Executive has not relied on any representations, promises or agreements
of any kind made to Executive in connection with Executive's decision to accept the terms of the Agreement and this Release, other than those set forth in the Agreement and this Release. **Executive acknowledges that the Company is providing Executive with forty-five (45) days to consider whether Executive wants to sign this Release, that the ADEA gives Executive the right to revoke this Release within seven (7) days after it is signed and that because this Release includes a release of claims under the ADEA, Executive is being provided with the information attached as <u>Annex A</u> hereto in accordance with OWBPA, and Executive understands that Executive will not receive any payments or benefits under the Agreement until such seven (7) day revocation period** 

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**has passed and then, only if Executive has not revoked this Release. To the extent Executive has executed this Release within less than forty-five (45) days after its delivery to Executive, Executive hereby waives the forty-five (45)-day period and acknowledges that Executive's decision to execute this Release prior to the expiration of such forty-five (45)-day period was entirely voluntary.**

\* \* \* \*

[*Signatures on next page*]

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IN WITNESS WHEREOF, Executive has executed this Release as of the date first above written.

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| |
|:---|
| **EXECUTIVE** |
| <br> Michael J. Lotz |
| <br> Date: |

---

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**<u>Annex A</u>**

(*See Attached*)

## Exhibit 10.40

**Exhibit 10.40** 

**SEPARATION AND CONSULTING AGREEMENT,** 

**GENERAL RELEASE OF CLAIMS** 

**AND COVENANT NOT TO SUE** 

This Separation and Consulting Agreement, General Release of Claims and Covenant Not to Sue (this "<u>Agreement</u>"), dated as of April 4, 2025, is made by and between Mesa Air Group, Inc., a Delaware corporation (the "<u>Company</u>") and Brian S. Gillman ("<u>Executive</u>").

WHEREAS, Executive is currently employed with the Company pursuant to the terms of an employment agreement between Executive and the Company, dated as of December 2, 2024 (the "<u>Employment Agreement</u>");

WHEREAS, pursuant to that certain Agreement, Plan of Conversion and Plan of Merger, dated as of the date hereof (the "<u>Merger Agreement</u>"), by and between the Company and Republic Airways Holdings Inc., a Delaware corporation ("<u>Republic Airways</u>"), Republic Airways will be merged with and into the Company, with the Company continuing as the Surviving Corporation (as defined in the Merger Agreement);

WHEREAS, Executive and the Company have mutually agreed that Executive's employment with the Company will terminate effective as of the Termination Date (as defined below) and that, following the Termination Date, Executive shall perform the Consulting Services during the Consulting Period (as each such term is defined herein);

WHEREAS, Executive and the Company have agreed to resolve and settle any and all of their disputed claims and all differences between them, including, but in no way limited to, any differences that might arise in connection with Executive's employment with the Company and the termination of Executive's employment; and

WHEREAS, Capitalized terms but not defined in this Agreement will have the meaning set forth in the Employment Agreement.

NOW, THEREFORE, in consideration of the recitals, promises, and other good and valuable consideration specified herein, the receipt and sufficiency of which is hereby acknowledged, Executive and the Company hereby agree as follows:

1.  **<u>Termination of Employment; Transitional Employment Period</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Executive's employment with the Company will terminate effective as of the later of (x) the Closing
Date (as defined in the Merger Agreement) and (y) October 1, 2025; <u>provided</u>, that, if determined by Republic Airways upon 30 days' written notice to the Company and Executive prior to the Closing Date, Executive's
employment with the Company will continue until such later date determined by Republic Airways in its sole discretion (not to exceed 180 days following the Closing Date) and Executive's employment with the Company will terminate effective as of
such later date (the latest of (x) the Closing Date, (y) October 1, 2025 and (z) such later date determined by Republic Airways above, the " <u>Termination Date</u> "). Notwithstanding the foregoing, in the event
Republic Airways determines that Executive's employment with the Company should continue following the Closing Date pursuant to the proviso in the

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immediately preceding sentence, either of Executive, on the one hand, or the Company and Republic Airways, on the other hand, shall have the right to elect, upon 30 days' written notice to the other party(ies), an earlier date on which Executive's employment with the Company will terminate and such earlier date shall be the "Termination Date" for purposes of this Agreement. Effective as of the Closing Date, the Employment Agreement shall be terminated and be of no further force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. To the extent that the Termination Date is later than the Closing Date, during the period commencing on the
Closing Date and ending on the Termination Date (the " <u>Transitional Employment Period</u> "), Executive shall serve in a full-time employee capacity as an advisor to the Company's President (and shall hold no other titles or
positions with the Company or any of its affiliates) and shall provide such transitional services as may be requested from time to time by the Company's President. During the Transitional Employment Period, Executive shall continue to be paid a
base salary at the same rate as in effect as of immediately prior to the Closing Date, remain eligible to participate in all employee benefit plans of the Company on the same basis as such plans were made available to Executive immediately prior to
the Closing Date, and shall remain eligible to earn an annual bonus in respect of the Company's fiscal year ending September 30, 2025 (which annual bonus, to the extent earned, shall be paid on or about the one-year anniversary of the incentive bonus paid to Executive for fiscal year 2024), but will not be eligible to receive any other incentive or other compensation or benefits during the Transitional Employment
Period.

2.  **<u>Consulting Arrangement</u>** .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. <u>Consulting Period</u>. During the period of time commencing on the Termination Date and ending on the second
anniversary of the Termination Date (the " <u>Consulting Period</u> "), Executive shall spend no more than 20% of his time advising and/or leading special projects as assigned by the Company's President. Consulting work is not required
to be done in Phoenix or Indianapolis and can be done remotely or in the Company offices as mutually agreed. Executive acknowledges and agrees that, during the Transitional Employment Period and the Consulting Period, Executive will not, directly or
indirectly own an interest in, manage, operate, join, control, lend money or render financial assistance to or participate in or serve as an officer, employee, partner, shareholder or consultant, any person that is engaged in the primary business of
providing regional air carrier passenger service provided by the Company as of the Closing Date (a " <u>Restricted Business</u> ") and, if Executive ends up, directly or indirectly, owning an interest in, managing, operating, joining,
controlling, lending money or rendering financial assistance to or participating in or serving as an officer, employee, partner, shareholder or consultant of a Restricted Business, the Consulting Period will automatically terminate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. <u>Consulting Fees</u>. In exchange for the performance of the Consulting Services, during the Consulting
Period, the Company shall pay to Executive monthly consulting fees as an independent contractor (the " <u>Consulting Fees</u> ") in an amount equal to $35,000 per month of the Consulting Period and, subject to Executive's continued
compliance with the restrictive covenants set forth herein for the duration of the Consulting Period, a lump sum of $518,000, payable within 10 days following the end of the Consulting Period. The Consulting Fees will be paid to Executive in
accordance with the Company's standard payment procedures for consultants and independent contractors.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. <u>Benefits</u>. Except as otherwise provided in <u>Section</u> <u>3(A)</u>, as an independent
contractor, Executive understands and agrees that, while performing any services for the Company after the Termination Date, Executive shall not be eligible to participate in or accrue benefits under any Company benefit plan for which status as an
employee of the Company is a condition of such participation or accrual.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. <u>Independent Contractor Status</u>. Executive and the Company acknowledge and agree that, during the
Consulting Period, Executive shall be an independent contractor. During the Consulting Period and thereafter, Executive shall not be an agent or employee of the Company and shall not be authorized to act on behalf of the Company, unless otherwise
authorized to do so by the Company's President. Unless otherwise required by law, the Company will not make deductions for taxes from any Consulting Fees paid hereunder. Personal income and self-employment taxes for Consulting Fees paid to
Executive hereunder shall be the sole responsibility of Executive. Executive agrees to indemnify and hold the Company and the other entities released herein harmless for any tax claims or penalties resulting from any failure by Executive to make
required personal income and self-employment tax payments with respect to the Consulting Fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. <u>Protection of Information</u>. Executive agrees that, during the Consulting Period and for a period of one
year thereafter, Executive will not, except for the purposes of performing the Consulting Services, seek to obtain any confidential or proprietary information or materials of the Company.

3.  **<u>Post-Termination Payments and Benefits to Executive</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. <u>Payments and Benefits</u>. In addition to any unpaid Accrued Base Salary, Accrued Reimbursable Expenses,
Accrued Benefits and any incentive bonus or other bonus earned but not paid as of the Termination Date with respect to a prior fiscal quarter or fiscal year (including, without limitation, any incentive bonus earned by Executive for fiscal year
2025, the amount of any such incentive bonus Executive acknowledges and agrees shall be no greater than that amount which would cause the Executive's total compensation for fiscal year 2025 to be equal to Executive's total compensation for
calendar year 2019 in compliance with the CARES Act restrictions set forth in Company's Loan and Guarantee Agreement, dated as of October 30, 2020, with the United States Department of the Treasury among other parties, as amended (the
" <u>UST Loan Agreement</u> ")) due and payable to Executive on the Termination Date and in lieu and full satisfaction of any payments or benefits to which Executive may otherwise have been entitled pursuant to the Employment Agreement and
provided that Executive executes, delivers and does not revoke the release agreement attached as <u>Exhibit A</u> hereto (the " <u>Release Agreement</u> ") within 10 days following the Termination Date, but in no event prior to the
Termination Date, Executive shall be entitled to the following payments and benefits, in each case, subject to Executive's continued compliance with the terms of this Agreement as set forth in <u>Section</u> <u>10</u>:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. a severance payment equal to $1,240,000 (the " <u>Severance Payment</u> "), which Severance Payment
shall be payable, within 10 days after the date the Release Agreement becomes effective by its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. <u>Taxes</u>. Executive shall be responsible for the payment of any and all required federal, state, local and
foreign taxes incurred, or to be incurred, in connection with any amounts payable, or benefits provided, to Executive under this Agreement. Notwithstanding any other provision of this Agreement, to the extent required by law the Company will
withhold from amounts payable under this <u>Section</u> <u>3</u> all federal, state, local and foreign taxes that are required to be withheld by applicable laws and regulations with respect to any amounts payable, or benefits provided,
to Executive under this Agreement and report on any applicable federal, state or local tax reporting form any income to Executive determined by the Company as resulting from such amounts payable or benefits provided hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. <u>Satisfaction of Claims</u>. The receipt and satisfaction of the payment obligations described in this <u>Section</u> <u>3</u> is acknowledged as full and final payment, accord and satisfaction of any and all potential claims described in the Release Agreement against the Company Releasees (as defined below), except for those claims not
being released by Executive under the Release Agreement.

4.  **<u>Sole Right to Claims; No Other Claims</u>.** Executive represents and warrants that no other
person or entity had or has any interest in the claims referred to in this Agreement; that Executive has the sole right and exclusive authority to execute this Agreement; that Executive has not sold, assigned, transferred, conveyed or otherwise
disposed of any claim or demand relating to any matter covered by this Agreement; that Executive has not filed any claims, complaints, or actions of any kind against the Company with any court of law, or local, state, or federal government or
agency; that Executive has been properly paid for all hours worked for the Company with the exception of the final payroll for the period through and including the Termination Date; that, other than the payments referred to herein, Executive has
received all commissions, bonuses and other compensation due to Executive and Executive has not engaged in any unlawful conduct relating to the Company's business.

5.  **<u>No Admission of Liability</u>.** Executive acknowledges and understands that the consideration
referred to herein is provided without admission or concession by the Company of any violation of any law or liability to Executive; and that said consideration provides Executive with valuable benefits in addition to any to which Executive already
is entitled under the Company's employee benefit plans or otherwise. The Company acknowledges that Executive is entering into this Agreement without admission or concession by Executive of any violation of any law or liability to the Company.

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6.  **<u>No Other Consideration</u>.** Executive acknowledges and agrees that no consideration other than
as provided for in this Agreement has been or will be paid or furnished by the Company (other than any payments or benefits not released by Executive in the Release Agreement); Executive will make no claim and hereby waives any right Executive may
now have or may hereafter have, based upon any alleged oral alteration, amendment, modification or any other alleged change in this Agreement; and that Executive understands and has freely and voluntarily entered into and executed this Agreement.

7.  **<u>Restrictive Covenants</u>.** To the full extent enforceable by law, Executive covenants and
agrees that, without the express written consent of an executive officer of the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>Confidential Information</u>. During the Executive's employment with the Company and during the
Consulting Period, Executive has had, and shall have, access to the Confidential Information and shall occupy a position of trust and confidence with respect to the Confidential Information and the Company's affairs and business. Executive
agrees to take the following steps to preserve the confidential and proprietary nature of the Confidential Information:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. <u>Non-Disclosure</u>. During the Transitional Employment Period, the
Consulting Period and thereafter, Executive shall not use, disclose or otherwise permit any person or entity access to any of the Confidential Information in Executive's possession or control other than as required in the performance of
Executive's duties with the Company and other than is required to be disclosed by law or by any court, administrative agency, or arbitration panel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. <u>Prevent Disclosure</u>. During the Transitional Employment Period, the Consulting Period and thereafter,
other than as required in the performance of Executive's duties with the Company and other than is required to be disclosed by law or by any court, administrative agency, or arbitration panel, Executive shall take all reasonable precautions to
prevent disclosure of the Confidential Information to unauthorized persons or entities, other than is required to be disclosed by law or by any court, administrative agency, or arbitration panel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. <u>Return All Materials</u>. Upon the expiration of the Consulting Period, Executive shall deliver to the
Company all tangible materials in Executive's possession or control relating to, but not limited to, the Confidential Information and any other information regarding the Company, including any documentation, records, listings, notes, data,
sketches, drawings, memoranda, models, accounts, reference materials, samples, machine-readable media and equipment which in any way relate to the Confidential Information and shall not retain any copies of any of the above materials.

For purposes of this <u>Section</u> <u>7(a)</u>, "<u>Confidential Information</u>" shall mean information concerning the Company which the Company attempts to keep confidential, has not been publicly disclosed by the Company, is not a matter of common knowledge in the airline industry, and was not known by Executive prior to Executive's employment by the Company, including, but not limited to, certain information relating to the business plans, trade practices, finances, accounting methods, methods of operations, trade secrets, marketing plans or programs, forecasts, statistics relating to routes and markets, contracts, customers, compensation arrangements, and business opportunities. The

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term "Confidential Information" does not include information that (A) is or becomes generally available to the public other than as a result of a disclosure by Executive, or (B) is or becomes available to Executive on a non-confidential basis from a source other than Executive, in each case, so long as the source of such information is not known by Executive to be bound by a confidentiality agreement or other contractual, legal or fiduciary obligation of confidentiality with respect to such information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. <u>Non-Solicitation of Employees/Contractors</u>. During the
Transitional Employment Period and the Consulting Period, Executive will not, without the prior written consent of the Company, whether on Executive's own behalf or on behalf of or in conjunction with any Person:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. directly or indirectly solicit, induce or encourage any employee of the Company to leave the employment of the
Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. directly or indirectly solicit, induce or encourage to cease to work with the Company any independent
contractor, consultant or partner then under exclusive contract with the Company; <u>provided</u>, that clauses (i) and (ii) above shall not be violated by general solicitation not targeted at the prohibited group or by Executive serving as a
reference upon request.

8.  **<u>Continuing Cooperation</u>.** Following the Termination Date, Executive covenants and agrees
that Executive will reasonably cooperate when and as reasonably required by the Company in the defense or prosecution of any claims, charges, complaints or lawsuits that have been or may hereafter be filed by or against the Company (but in all
events taking into consideration Executive's other business and personal activities and commitments), in which event the Company will indemnify Executive in the same manner and to the same extent as if Executive were still employed by the
Company. Such cooperation will include, but is not limited to, meeting with the Company's counsel and being available for deposition and/or trial testimony upon reasonable notice. The Company agrees that indemnification shall include the prompt
reimbursement of Executive for reasonable expenses incurred by Executive in furnishing such cooperation. If such cooperation extends beyond the Consulting Period, then Executive will be compensated at a rate of $300.00 per hour plus, to the extent
approved by the Company in advance, documented out-of-pocket expenses for services performed by Executive in connection with any such cooperation.

9.  **<u>Non-Disparagement; Administrative Charges; Protected Activity</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Executive covenants and agrees that following the Termination Date, Executive shall not, whether acting for
Executive or for any third party, defame or disparage the image or reputation of the Company or any of its subsidiaries or affiliates and their directors, officers, senior management employees and professional employees. Nothing in any provision of
this Agreement shall affect Executive's right to file a charge or complaint or communicate with the Equal Employment Opportunity Commission (" <u>EEOC</u> "), the National Labor Relations Board (" <u>NLRB</u> "), the Securities
and Exchange Commission (" <u>SEC</u> ") or any other federal, state or local administrative agency or limit Executive's lawful opportunity to cooperate with or participate in any administrative proceeding or

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investigation, or from making other disclosures that are protected under the whistleblower provisions of any law or regulation, provided that, in each case, such communications and disclosures are consistent with applicable law. Executive does not need the consent of, or to give notice to, the Company prior to making any such communication or disclosure. However, where this is not prohibited by applicable law, rule, or regulation, the severance payments paid to Executive by this Agreement shall be the sole monetary relief available to Executive from any Company Releasee for the claims being released in this Agreement, and Executive will not be entitled to recover, and agrees to waive, any additional personal monetary relief that may be sought from or awarded from any Company Releasee in the future without regard to who filed or brought such claim. In addition, nothing in this Agreement shall restrict any legal rights to engage in protected activities regarding the terms and conditions of employment. Notwithstanding this release of liability, nothing in this Agreement prevents Executive from filing any non-legally waivable claim (including a challenge to the validity of this Agreement) with the EEOC, the NLRB, the SEC or comparable federal, state or local agency or participating in any investigation or proceeding conducted by the EEOC, NLRB, SEC or comparable federal, state or local agency; however, Executive hereby understands and agrees that, where this is not prohibited by applicable law, rule, or regulation, Executive is waiving any and all rights to recover any monetary or personal relief or recovery from any Company Releasee as a result of such EEOC, NLRB, SEC or comparable federal, state or local agency proceeding or subsequent legal actions. In addition, Executive shall be permitted to disclose Confidential Information (and make truthful statements) to the extent necessary in connection with any lawsuit between the parties to enforce or defend this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Company covenants and agrees that following the Termination Date, the Company shall instruct the
then-current executive officers of the Company and members of the Board of Directors of the Company, in each case, as of the Termination Date, not to defame or disparage the image or reputation of Executive; provided, that, nothing herein shall
preclude the Company, or its executive officers and members of the Board of Directors of the Company from responding truthfully to a lawful subpoena or other compulsory legal process or providing truthful information otherwise required by law.

10.  **<u>Injunctive Relief</u>.** Executive understands and agrees that a breach of any of the
agreements, covenants, representations or warranties set forth in <u>Section</u> <u>7</u> or <u>Section</u> <u>2(A)</u> shall be a material breach of this Agreement, for which the Company may, at its sole option:
(a) immediately cease providing to Executive any of the benefits provided for in <u>Section</u> <u>2</u> or <u>Section</u> <u>3</u> (other than the Severance Payment); and/or (b) seek injunctive relief or actual
damages (excluding attorneys' fees and costs). The Company shall not be permitted to seek or utilize the remedies in clauses (a) and/or (b) of the preceding sentence unless the Company has provided Executive with written notice of the
event(s) or omission(s) giving rise to such remedies and, if curable, Executive has failed to cure such event or omission within a reasonable period of time after receipt of such notice. Except as otherwise expressly set forth in this <u>Section</u> <u>10</u>, the payments and benefits provided to Executive under this Agreement are not subject to forfeiture or repayment for any reason.

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11.  **<u>Governing Law</u>.** This Agreement shall be construed in accordance with and governed for all
purposes by the laws of the State of Indiana applicable to contracts executed and wholly performed within such state.

12.  **<u>Severability</u>.** The covenants and agreements contained in this Agreement are separate and
severable and the invalidity or unenforceability of any one or more of such covenants or agreements, if not material to the employment arrangement that is the basis for this Agreement, shall not affect the validity or enforceability of any other
covenant or agreement contained in this Agreement. If, in any judicial proceeding, a court shall refuse to enforce one or more of the covenants or agreements contained in this Agreement because the duration thereof is too long, or the scope thereof
is too broad, it is expressly agreed between the parties to this Agreement that such duration or scope shall be deemed reduced to the extent necessary to permit the enforcement of such covenants or agreements.

13.  **<u>Voluntary Execution of Agreement</u>.** This Agreement is executed voluntarily and without any
duress or undue influence on the part or behalf of the parties hereto, with the full intent of releasing all claims. Executive hereby acknowledges that (a) Executive has read this Agreement, (b) Executive has been represented in the
preparation, negotiation, and execution of this Agreement by legal counsel of Executive's own choice or that Executive has voluntarily declined to seek such counsel, (c) Executive understands the terms and consequences of this Agreement
and of the releases it contains, and (d) Executive is fully aware of the legal and binding effect of this Agreement.

14.  **<u>Counterparts</u>.** This Agreement may be signed in counterpart originals with the same force
and effect as though a single original were executed.

15.  **<u>Entire Agreement</u>.** This Agreement constitutes the entire agreement of the parties hereto
with respect to the subject matter of this Agreement, and this Agreement supersedes all prior agreements between the parties with respect to the subject matter covered herein, whether written or oral. Notwithstanding the foregoing, nothing herein is
intended to supersede, limit or replace any prior non-disclosure covenants in any other written agreement, which shall continue and remain in full force and effect per the terms of those agreements (provided
that any non-compete and/or non-solicitation covenants in such agreements shall be superseded by this Agreement). In the event of a conflict between any provision of
this Agreement and any provision of any other written agreement, the provisions of this Agreement shall control.

16.  **<u>Section</u> <u>409A</u>.** This Agreement is intended to comply with,
or otherwise be exempt from, Section 409A of the Code and any regulations and Treasury guidance promulgated thereunder (" <u>Section</u> <u>409A</u> "). If the Company determines in good faith that any provision of this
Agreement would cause Executive to incur an additional tax, penalty, or interest under Section 409A, the Company and Executive shall use reasonable efforts to reform such provision, if possible, in a mutually agreeable fashion to maintain to
the maximum extent practicable the original intent of the applicable provision without violating the provisions of Section 409A or causing the imposition of such additional tax, penalty, or interest under Section 409A. The preceding
provisions, however, shall not be construed as a guarantee by the Company of any particular tax effect to Executive under this Agreement. For purposes of Section 409A, the right to a series of installment payments under this Agreement shall be
treated as a right to a

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series of separate payments. With respect to any reimbursement of expenses of, or any provision of in-kind benefits to, Executive, as specified under this Agreement, such reimbursement of expenses or provision of in-kind benefits shall be subject to the following conditions: (1) the expenses eligible for reimbursement or the amount of in-kind benefits provided in one taxable year shall not affect the expenses eligible for reimbursement or the amount of in-kind benefits provided in any other taxable year, except for any medical reimbursement arrangement providing for the reimbursement of expenses referred to in Section 105(b) of the Code; (2) the reimbursement of an eligible expense shall be made no later than the end of the year after the year in which such expense was incurred; and (3) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit. "Termination of employment," or words of similar import, as used in this Agreement means, for purposes of any payments under this Agreement that are payments of deferred compensation subject to Section 409A, Executive's "separation from service" as defined in Section 409A. If a payment obligation under this Agreement arises on account of Executive's separation from service while Executive is a "specified employee" (as defined under Section 409A and determined in good faith by the Company), any payment of "deferred compensation" (as defined under Treasury Regulation Section 1.409A-1(b)(1), after giving effect to the exemptions in Treasury Regulation Sections 1.409A-1(b)(3) through (b)(12)) that is scheduled to be paid within six (6) months after such separation from service shall be paid within fifteen (15) days after the end of the six (6)-month period beginning on the date of such separation from service, or, if earlier, within fifteen (15) days after the appointment of the personal representative or executor of Executive's estate following Executive's death.

17.  **<u>Effectiveness</u>.** In the event the Closing (as defined in the Merger Agreement) does not
occur or the Merger Agreement is terminated in accordance with its terms prior to the Closing, this Agreement shall be null and void and of no further force or effect.

\* \* \* \*

[*Signatures on next page]*

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

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| | |
|:---|:---|
| **MESA AIR GROUP, INC.** | **MESA AIR GROUP, INC.** |
| By: | /s/ Michael Lotz |
|  | Name: Michael Lotz |
|  | Title: President |
| **EXECUTIVE** | **EXECUTIVE** |
| /s/ Brian S. Gillman | /s/ Brian S. Gillman |
| Brian S. Gillman | Brian S. Gillman |
| Date: <u>4/4/2025</u> | Date: <u>4/4/2025</u> |

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*[Signature Page to Separation and Consulting Agreement,* 

*General Release of Claims and Covenant Not to Sue]* 

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**<u>Exhibit A</u>**

**Release Agreement** 

(*See Attached*)

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**<u>Release of Claims</u>**

This Release of Claims (this "<u>Release</u>") is entered into and delivered to Mesa Air Group, Inc., a Delaware corporation (the "<u>Company</u>"), as of [•], 2025, by Brian S. Gillman ("<u>Executive</u>"). Capitalized terms used but not defined in this Release will have the meaning set forth in the Separation and Consulting Agreement, General Release of Claims and Covenant Not to Sue, dated as of April 4, 2025, by and between the Company and Executive (the "<u>Agreement</u>"). Executive agrees as follows:

1. For and in consideration of the payments and benefits described in Section 3 of the Agreement, Executive
hereby agrees on behalf of Executive's self, Executive's agents, assignees, attorneys, successors, assigns, heirs and executors, to, and Executive does hereby, fully and completely forever release the Company and its past, current and
future affiliates, predecessors and successors and all of their respective past and/or present officers, directors, partners, members, managing members, managers, employees, agents, representatives, administrators, attorneys, insurers and
fiduciaries, in their individual and/or representative capacities (hereinafter collectively referred to as the " <u>Company Releasees</u> "), from any and all causes of action, suits, agreements, promises, damages, disputes, controversies,
contentions, differences, judgments, claims, debts, dues, sums of money, accounts, reckonings, bonds, bills, specialties, covenants, contracts, variances, trespasses, extents, executions and demands of any kind whatsoever, which Executive or
Executive's agents, assignees, attorneys, successors, assigns, heirs and executors ever had, now have or may have against the Company Releasees or any of them, in law, admiralty or equity, whether known or unknown to Executive, for, upon, or by
reason of, any matter, action, omission, course or thing whatsoever occurring up to the date this Release is signed by Executive, including, without limitation, in connection with or in relationship to Executive's employment or other service
relationship with the Company, and any applicable employment, compensatory or equity arrangement with the Company (including, without limitation, the Employment Agreement), any claims of breach of contract, wrongful termination, retaliation, fraud,
defamation, infliction of emotional distress or national origin, race, age, sex, sexual orientation, disability, medical condition or other discrimination or harassment, (such released claims are collectively referred to herein as the
" <u>Released Claims</u> "); <u>provided</u>, that, Executive does not waive or release (a) any claims with respect to the right to enforce the Agreement, (b) claims with respect to any vested right Executive may have under any
employee pension or welfare benefit plan of the Company, (c) any rights Executive may have for indemnification (including advancement of expenses) from the Company or any of its affiliates and coverage under any applicable directors' and
officers' liability insurance policies, and (d) any claims that may not be waived by law.

2. Notwithstanding the generality of Section 1 above, the Released Claims include, without limitation,
(a) any and all claims under Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act of 1967 (the " <u>ADEA,</u> " a law which prohibits discrimination on the basis of age), the Civil Rights Act of 1971, the
Civil Rights Act of 1991, the Fair Labor Standards Act, Employee Retirement Income Security Act of 1974, the Americans with Disabilities Act, the Family and Medical Leave Act of 1993, the National Labor Relations Act, the Older Workers Benefit
Protection Act of 1990 (the " <u>OWBPA</u> "), the Equal Pay Act, the Securities Act of 1933, the Securities Exchange Act of 1934, the Rehabilitation Act of 1973, the Worker Adjustment and Retraining Notification Act, and any

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and all other federal, state or local laws, statutes, rules and regulations pertaining to employment or otherwise, and (b) any claims for wrongful discharge, breach of contract, fraud, misrepresentation or any compensation claims, or any other claims under any statute, rule or regulation or under the common law, including compensatory damages, punitive damages, attorney's fees, costs, expenses and all claims for any other type of damage or relief.

3. Nothing in any provision of this Release shall affect Executive's right to file a charge or complaint or
communicate with the Equal Employment Opportunity Commission (" <u>EEOC</u> "), the National Labor Relations Board (" <u>NLRB</u> "), the Securities and Exchange Commission (" <u>SEC</u> ") or any other federal, state or
local administrative agency or limit Executive's lawful opportunity to cooperate with or participate in any administrative proceeding or investigation, or from making other disclosures that are protected under the whistleblower provisions of
any law or regulation, provided that, in each case, such communications and disclosures are consistent with applicable law. Executive does not need the consent of, or to give notice to, the Company prior to making any such communication or
disclosure. However, where this is not prohibited by applicable law, rule, or regulation, the severance payments paid to Executive by the Agreement shall be the sole monetary relief available to Executive from any Company Releasee for the claims
being released in this Release, and Executive will not be entitled to recover, and agrees to waive, any additional personal monetary relief that may be sought from or awarded from any Company Releasee in the future without regard to who filed or
brought such claim. In addition, nothing in this Release shall restrict any legal rights to engage in protected activities regarding the terms and conditions of employment. Notwithstanding this release of liability, nothing in this Release prevents
Executive from filing any non-legally waivable claim (including a challenge to the validity of this Release) with the EEOC, the NLRB, the SEC or comparable federal, state or local agency or participating in
any investigation or proceeding conducted by the EEOC, NLRB, SEC or comparable federal, state or local agency; however, Executive hereby understands and agrees that, where this is not prohibited by applicable law, rule, or regulation, Executive is
waiving any and all rights to recover any monetary or personal relief or recovery from any Company Releasee as a result of such EEOC, NLRB, SEC or comparable federal, state or local agency proceeding or subsequent legal actions.

4. Executive represents that Executive has read carefully and fully understands the terms of this Release, and
that Executive has been advised to consult with an attorney and has availed Executive's self of the opportunity to consult with an attorney prior to signing this Release. Executive acknowledges and agrees that Executive is executing this
Release willingly, voluntarily and knowingly, of Executive's own free will, in exchange for the payments and benefits described in Section 3 of the Agreement, and that Executive has not relied on any representations, promises or agreements
of any kind made to Executive in connection with Executive's decision to accept the terms of the Agreement and this Release, other than those set forth in the Agreement and this Release. **Executive acknowledges that the Company is providing Executive with forty-five (45) days to consider whether Executive wants to sign this Release, that the ADEA gives Executive the right to revoke this Release within seven (7) days after it is signed and that because this Release includes a release of claims under the ADEA, Executive is being provided with the information attached as <u>Annex A</u> hereto in accordance with OWBPA, and Executive understands that Executive will not receive any payments or benefits under the Agreement until such seven (7) day revocation period** 

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 **has passed and then, only if Executive has not revoked this Release. To the extent Executive has executed this Release within less than forty-five (45) days after its delivery to Executive, Executive hereby waives the forty-five (45)-day period and acknowledges that Executive's decision to execute this Release prior to the expiration of such forty-five (45)-day period was entirely voluntary.** 

\* \* \* \*

[*Signatures on next page*]

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IN WITNESS WHEREOF, Executive has executed this Release as of the date first above written.

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| |
|:---|
|  **EXECUTIVE**<br>|
| <br> Brian S. Gillman<br>|
| <br> Date: |

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**<u>Annex A</u>**

(*See Attached*)

## Exhibit 23.1

**Exhibit 23.1** 

**<u>Independent Registered Public Accounting Firm's Consent</u>**

We consent to the use in this Amendment No. 1 to the Registration Statement on Form S-4 and S-1 (File No. 333-288622) of our report dated May 13, 2025 relating to the financial statements of Mesa Air Group Inc. appearing in this Registration Statement. We also consent to the reference to us under the heading "Experts" in such Registration Statement.

/s/ Marcum LLP

Melville, NY

August 14, 2025

## Exhibit 23.2

**Exhibit 23.2** 

**Consent of Independent Registered Public Accounting Firm** 

We consent to the use in this Amendment No. 1 to the Registration Statement on Form S-4 and S-1 (File No. 333-288622) of Mesa Air Group, Inc. of our report dated January 26, 2024, relating to the consolidated financial statements of Mesa Air Group, Inc., appearing in the Preliminary Prospectus, which is part of this Registration Statement.

We also consent to the reference to our firm under the heading "Experts" in such Preliminary Prospectus.

/s/ RSM US LLP

Phoenix, AZ

August 14, 2025

## Exhibit 23.3

**Exhibit 23.3** 

**Consent of Independent Registered Public Accounting Firm** 

We consent to the reference to our firm under the caption "Experts" and to the use of our report dated December 29, 2022, in this Amendment No. 1 to the Registration Statement on Form S-4 and Form S-1 (File No. 333-288622) and related Prospectus of Mesa Air Group, Inc. for the registration of shares of its common stock.

/s/ Ernst & Young LLP

Phoenix, Arizona

August 14, 2025

## Exhibit 23.4

**Exhibit 23.4** 

**CONSENT OF INDEPENDENT AUDITORS** 

We consent to the use in this Amendment No. 1 to the Registration Statement on Form S-4 and Form S-1 (File No. 333-288622) of our report dated July 10, 2025, relating to the financial statements of Republic Airways Holdings Inc. We also consent to the reference to us under the heading "Experts" in such Registration Statement.

/s/ Deloitte & Touche LLP

Indianapolis, IN

August 14, 2025

## Exhibit 23.5

**Exhibit 23.5** 

**Consent of FTI Capital Advisors, LLC** 

August 14, 2025

Board of Directors

Mesa Air Group, Inc.

410 North 44th Street, Suite 700

Phoenix, AZ 85008

Re: Amendment No. 1 to the Registration Statement on Form S-4/S-1 of Mesa Air Group, Inc. (File No. 333-288622)

Members of the Board:

The inclusion, in its entirety, of our fairness opinion letter to the Board of Directors of Mesa Air Group, Inc., dated March 17, 2025, as updated July 9, 2025, the proxy statement/prospectus related to the proposed merger of Mesa Air Group, Inc. and Republic Airways Holdings Inc., to be filed with the Securities and Exchange Commission, and any amendments or supplements to the proxy statement/prospectus, is hereby consented to. It is understood and agreed that the opinion is solely for the benefit of the Board of Directors and does not constitute a recommendation to any shareholder on how to vote or take any other action in connection with the proposed transaction. Furthermore, there is no obligation to update the opinion for events occurring after the date of the opinion letter.

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| |
|:---|
| Very truly yours, |
| /s/ FTI Capital Advisors |
| FTI CAPITAL ADVISORS, LLC |

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**FTI CAPITAL ADVISORS, LLC** 

555 12th Street NW

Suite 700

Washington DC 20004